Capitan Mining Inc. Announces the Successful Closing of a $3.2 Million Non-Brokered Private Placement; Michael Gentile, CFA Increases His Strategic Investment in Capitan Mining with Market Purchases

Vancouver, British Columbia--(Newsfile Corp. - May 7, 2021) - Capitan Mining Inc. (TSXV: CAPT) ("Capitan" or the "Company"), is pleased to announce that it has closed its non-brokered equity financing previously announced on April 6, 2021 (the "Private Placement"). Pursuant to the Private Placement, Capitan issued 16,000,000 common shares at a price of C$0.20 per Common Share (the "Issue Price") for gross proceeds of C$3,200,000. There were no finders' fees paid on the Private Placement.

The proceeds received by the Company will be primarily used to advance exploration and corporate development activities at Capitan's 100%-owned Peñoles Project located in Durango, Mexico, as well as for working capital and general corporate purposes.

All securities issued will be subject to a four-month hold period expiring on September 8, 2021. The Offering remains subject to final acceptance of the TSX Venture Exchange.

Capitan's CEO, Alberto Orozco, stated: "We are pleased to welcome the strategic investment from Mr. Gentile along with the continued strong support of our existing shareholders. Results to date from the El Capitan gold oxide zone are very encouraging as we continue to identify opportunities to grow the mineralized envelope along strike and at depth. This financing will allow us to continue advancing the Capitan gold, oxide zone as well as other key gold and silver targets within our 100%-owned Peñoles Project."

Michael Gentile, CFA Adds to his C$1.6M Strategic Investment with Additional Market Purchases

Prior to the announcement of the private placement, Mr. Michael Gentile beneficially owned and controlled 258,500 common shares of CAPT. During the time between the announcement of the private placement and immediately prior to the closing the private placement, Mr. Gentile acquired additional common shares through the facilities of the TSX Venture Exchange. Immediately prior to the completion of the private placement, Mr. Gentile beneficially owned and controlled 1,158,500 common shares representing 3% of Capitan's issued and outstanding common shares on a non-diluted basis.

On closing of the transaction Mr. Michael Gentile will beneficially own and control a total of 9,158,500 common shares of the Company, representing 17.03% of Capitan's issued and outstanding common shares on a non-diluted basis.

The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933 (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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
Phone: (778) 327-6671
Fax: (778) 327-6675
Web: www.capitanmining.com

Raffi Elmajian
Corporate Communications
Capitan Mining Inc.
info@capitanmining.com
Phone: (778) 327-6671
Web: www.capitanmining.com

Certain statements in this press release may be considered forward-looking information. These statements can be identified by the use of forward-looking terminology (e.g., "expect"," estimates", "intends", "anticipates", "believes", "plans"). Such information involves known and unknown risks -- including the availability of funds, the results of financing and exploration activities, the interpretation of exploration results and other geological data, or unanticipated costs and expenses and other risks identified by Capitan in its public securities filings that may cause actual events to differ materially from current expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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