Capital Metals : Presentation - May 2022

C A P I T A L ME T A L S

Entering Development Phase on

The Eastern Minerals Project, Sri Lanka

High Grade Mineral Sands Project with Exceptional Economics

MAY 2022

Disclaimer and Forward-Looking Statements

This presentation (the "Presentation") has been prepared by Capital Metals Plc ("CMET" or "The Company")

This presentation contains general and background information about CMET's activities current as at the date of the presentation, and (i) does not purport to be completed; and (ii) should not be considered to be comprehensive or to comprise all the information that an investor should consider when making an investment decision. The information is provided in summary form, has not been independently verified, and should not be considered to be comprehensive or complete. The Company is not responsible for providing updated information and assumes no responsibility to do so.

The contents of this Presentation have not been reviewed, authorised or otherwise approved by the UK Financial Conduct Authority (FCA) or any other regulatory body.

Reliance on this Presentation for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. If you are in doubt about the content of this Presentation and/or any action you should take, you are strongly recommended to seek your own independent financial advice immediately from your stockbroker, lawyer, accountant or other independent financial adviser authorised by the FCA. This Presentation contains both historical facts and statements relating to the Company's current plans,, estimates, objectives and strategies which are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Accordingly, any reliance you place on such forward-looking statements will be at your sole risk.

The information contained in this Presentation is subject to change without notice. No representation or warranty, express or implied, is given as to the accuracy, completeness or fairness of the information or opinions contained in this Presentation and no liability is accepted by the Company or any of its directors, members, officers, employees, agents or advisers for any such information or opinions.

No undertaking, representation, warranty or other assurance, express or implied, is made or given by or on behalf of the Company, or Brandon Hill Capital Limited or WH Ireland (the "Joint Brokers") or any of their respective directors, officers, partners, employees, agents or advisers, or any other person, as to the accuracy or completeness of the information or opinions contained in these slides or the Presentation. Accordingly, no responsibility or liability is accepted by any of them for any such information or opinions or for any errors, omissions, misstatements, negligence or otherwise for any other communication, written or otherwise, but except that nothing in this paragraph will exclude liability for any undertaking, representation, warranty or other assurance made fraudulently.

The Joint Brokers, who are regulated by the Financial Conduct Authority, are advising the Company and no one else (whether or not a recipient of these slides and will not be responsible to anyone, other than the Company, for providing the protections afforded to customers of the Joint Brokers respectively nor for providing advice in relation to the Company.

The Joint Brokers have not authorised the contents of these slides or any of them. These slides are for distribution in or from the UK only to persons authorised or exempted within the meaning of those expressions under FSMA 2000 or any order made under it or to those persons to whom these slides may be lawfully distributed pursuant to the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 ("Financial Promotion Order") as amended, including Investment Professionals as defined in article 19(5) and high net worth entities as defined in article 49(2) of the Financial Promotion Order. Persons who do not fall within any of these definitions should not rely on these slides nor take any action upon them.

This Presentation and the information contained in it do not constitute a prospectus and do not form any part of an offer of, or invitation to apply for, securities. Neither this Presentation, nor any part of it, nor the fact of its use, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision. Some or all of the information contained in these slides and the Presentation (and any other information which may be provided) may be inside information relating to

the securities of the Company within the meaning of the Criminal Justice Act 1993 and the Market Abuse Regulation (EU/596/2014) (MAR). Recipients of this information shall not disclose any of this information to another person or use this information or any other information to deal, or to recommend or induce another person to deal in the securities of CMET (or attempt to do so). Recipients of this information shall ensure that they comply or any person to whom they disclose any of this information complies with this paragraph and also with MAR. The term "deal" is to be construed in accordance with the Criminal Justice Act 1993 and with MAR.

This Presentation does not constitute an offer to sell, or a solicitation to buy securities in any jurisdiction in which such offer or solicitation is unlawful. In particular, this Presentation is not, subject to certain exceptions, for distribution in or into the United States, Canada, Australia, the Republic of South Africa, the Republic of Ireland or Japan. The Company's shares have not been and will not be registered under the United States Securities Act of 1933, as amended, nor under the securities legislation of any state of the United States or any province or territory of Canada, Australia, the Republic of South Africa, the Republic of Ireland or Japan or in any country, territory or possession where to do so may contravene local securities laws or regulations. Accordingly, CMET's shares are not, subject to certain exceptions, to be offered or sold directly or indirectly in or into the United States, Canada, Australia, the Republic of South Africa, the Republic of Ireland or Japan or to any national, citizen or resident of the United States, Canada, Australia, the Republic of South Africa or Japan.

C A P I T A L M E T A L S

01

Overview - Eastern Minerals Project

High grade mineral sands in Sri Lanka

NEAR TERM PRODUCTION AND PATHWAY TO EARLY CASHFLOW
Over 4 years of development and studies to
date with four stage construction strategy		Jaffna
AMONG HIGHEST GRADE IN GLOBAL PEER GROUP
17.6% Total Heavy Minerals (THM) incl ilmenite, zircon, rutile and			THE PORT OF
garnet
			TRINCOMALEE
SHALLOW RESOURCE FROM SURFACE
17.2Mt JORC resource 17.6% THM from first 3m from surface		Wilpattu
PRELIMINARY ECONOMIC ASSESSMENT	Kalpitiya	Sigiriya
Exceptional economics: IRR of 56% and NPV of US$155m				Pasikuda
Initial capex of just $37.3m until project is self-funding
compared to the total development capex of $81m		Kandy
PROVEN LEADERSHIP TEAM
Substantial listed company, finance, mineral sands and
Sri Lankan operational experience		Pinnawala
KEY MILESTONES	Colombo
					THE PORT OF OLUVIL
EIA process complete, focus on issue of Mining Licence,		Kitulgala
				Eastern Minerals Project
development milestones and expedited discussions with

offtakers/debt providers/other strategic funders	Ella
SRI LANKA	Hikkaduwa
		THE PORT OF HAMBANTHOTA
Supportive government as evidenced by EIA
Galle fort
approval

C A P I T A L M	02
E T A L S

Exceptional Economics

Base case economics using long term price assumptions well below current prices and without taking into account potential resource extensions.

NPV8

(post tax)

US$155m

CAPEX

(to positive cash flow)

US$37.3m

MINE LIFE

10 years

IRR

(post tax)

56%

AVERAGE PRODUCTION

(Valuable Heavy Minerals)

163ktpa

NPV8/CAPEX*

(*to positive cash flow)

4.2

NET PROFIT

(over 10 years)

US$262m

OPERATING COST

(per tonne mined)

US$6.90

OPERATING COST

(per tonne product)

US$60.40

Study undertaken by IHC Mining, a leading independent global mining services group with specialist expertise in developing mineral sands projects

03

Corporate

AT A GLANCE

Market Cap GBP £13m*

Share Price 7 p*

Shares on Issue 189,103,432

12 Month Range 6.5p - 15.96p

Nomad- Spark

Joint Broker-WH Ireland/Tavira Securities

• As at 18 May 2022
  SHARE PRICE - CMET : AIM

SIGNIFICANT SHAREHOLDERS

Brent Holdings Limited (Family office)	13.11%
Roman Resources Management Pty Ltd	7.63%
Stanton Investments Ltd	6.70%
KL Kepong International Limited	5.92%
Chulu Holdings Pty Ltd	4.68%

25

20

15

10

5

0

S/P TRADING AT JUST ~10% OF BASE CASE NPV8

(18 May 2022)

C A P I T A L M	04
E T A L S