Capitan Mining Announces Non-Brokered C$3,200,000 Private Placement and Welcomes Strategic Investment by Michael Gentile, CFA

Vancouver, British Columbia--(Newsfile Corp. - April 6, 2021) - Capitan Mining Inc. (TSXV: CAPT) ("Capitan") is pleased to announce its intention to raise C$3,200,000, by way of a non-brokered private placement of 16,000,000 common shares (the "Shares") at a price of C$0.20 per Share (the "Private Placement"). The financing is led by a strategic investment of C$1,600,000 by Mr. Michael Gentile, CFA which will increase his position in Capitan Mining to 15.3%.

"I'm very pleased to make this strategic investment in Capitan Mining. From my perspective Capitan with its current market cap of C$8.5 million is a deeply undervalued story. With a strong in-country Mexican focused management team that has significant experience in the discovery, expansion and building of heap leach oxide assets in Mexico, Capitan is well positioned to advance the Peñoles Gold & Silver Project in Durango, Mexico. Management has the potential to create significant value for its shareholders going forward." - Michael Gentile, CFA

"We are excited to welcome Mr. Gentile, as a strategic investor, to our company. Mr. Gentile has a tremendous track record for identifying high quality investment opportunities in the mining sector and we are pleased to have him as a partner. We believe this financing will be an inflection point for our company as it allows us the opportunity to continue to expand the mineralized envelope at the Capitan gold oxide zone, which remains open in multiple directions and at depth. In addition, we plan to advance and drill test other gold-silver targets at the Peñoles Project, highlighting the scale and prospectivity of this great opportunity." - Alberto Orozco CEO, Capitan Mining

Capitan intends to use the net proceeds from the Private Placement to advance drilling and work programs at the Peñoles Gold & Silver Project in addition to funding working capital and general corporate expenses.

No commissions are payable in connection with the Private Placement.

The closing of the Private Placement is expected to occur on or about April 29th, 2021, and is subject to the receipt of all necessary regulatory approvals, including the approval of the TSX-V. All securities issued pursuant to the Private Placement will be subject to a four month hold period in accordance with applicable Canadian securities laws. There is no material fact or material change regarding Capitan that has not been generally disclosed.

This press release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the 1933 Act and applicable state securities laws or an exemption from such registration is available.

About Michael Gentile, CFA

From 2003 to 2018 he worked as a professional money manager at Formula Growth Ltd., an independent investment management firm established in Montreal in 1960 with a long-term track record of creating investor wealth. While at Formula Growth, Mr. Gentile's main sector focuses were in mining and natural resources. In 2012, he became the co-manager of the Formula Growth Alpha Fund, a market neutral hedge fund focused on small to mid-cap equities. Throughout his career at Formula Growth, Michael was an early-stage investor in very successful mining and natural resource investments returning multiples of their original investments for their investors. In October 2018, Mr. Gentile retired from full time money management in order to be able to spend more time with his family.

Subsequently, he has remained a very active investor in the mining space owning significant top 5 stakes in over 10 small cap-mining companies. Michael is currently one of the largest shareholders and a strategic advisor of Arizona Metals. In addition, Michael is the largest shareholder and has been a board member of Northern Superior Resources since December 2019. He has been a director and major shareholder of Roscan Gold since January 2020, Solstice Gold since June 2020 and Radisson Mining Resources since February 2021.

About Capitan Mining Inc.:

Capitan Mining is a well-funded junior exploration company focused on its 100% owned gold and silver Peñoles Project in Durango, Mexico. The company is led by a management team that has successfully advanced and developed several heap leach operations in Mexico over the past 16 years. More information for the Company can be found at www.capitanmining.com.

ON BEHALF OF CAPITAN MINING INC.

"Alberto Orozco"

Alberto Orozco, CEO

For additional information contact:

Alberto Orozco
CEO
Capitan Mining Inc.
info@capitanmining.com
Web: www.capitanmining.com

Raffi Elmajian
Corporate Communications
Capitan Mining Inc.
info@capitanmining.com
Web: www.capitanmining.com

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking information based on current expectations. Statements about, among other things, the closing of the Private Placement, expected terms and conditions of the Private Placement, the completion, terms and size of the Private Placement and the use of proceeds of the Private Placement are all forward-looking information. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Such factors include, but are not limited to: the ability to find suitable subscribers for the Private Placement. Although such statements are based on management's reasonable assumptions at the date such statements are made, there can be no assurance that the Private Placement will occur or that, if the Private Placement does occur, it will be completed on the terms described above and that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on the forward-looking information. Capitan assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by applicable law.

Not for distribution to United States newswire services or for dissemination in the United States.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/79510

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