Capitan Silver Corp. (CAPTF)

[Dougster]

Hole 21-JMRC03 returned 435.02 g/t AgEq over 10.7m from the Jesus Maria Silver Zone, including three higher-grade intervals of:
798.29 g/t AgEq over 1.5m
860.19 g/t AgEq over 1.5m
641.0 g/t AgEq over 1.5m
New gold-silver zone discovered to the north of the Jesus Maria Silver Zone, with 13.7m of 63.3 g/t AgEq
Additional mineralized structures intersected in the hanging wall to the Jesus Maria Silver Zone
Drilling is ongoing; a total of 15 RC Drill holes have been completed at the Jesus Maria Silver Zone- Assays for 11 drill holes are pending
Capitan is re-branding its "Peñoles Project" to "Cruz de Plata Project" which is closely aligned to its silver focus and exploration potential
Discussion

Confirms Continuity High Grade Silver Mineralization at Depth

Hole 21-JMRC-03 was designed to target one of two high-grade ore shoots nested in the Jesus Maria Silver Zone, that outcrop at surface, and have been delineated by both surface trenching and drilling. The first ore shoot was intersected by hole 21-JMRC-01 (previously released), located 100m to the west of 21-JMRC-03, which returned 1.5m of 1,352 g/t AgEq and 1.5m of 1,177 AgEq within a wider interval of 42.7m of 224.3 g/t AgEq. Hole 21-JMRC-03 intersected the second high-grade shoot at 79.2m downhole, returning 435.02 g/t AgEq over 10.7m, including three high-grade intervals of 798.29 g/t AgEq over 1.5m, 860.19 g/t AgEq over 1.5m, and 641 g/t AgEq over 1.5m. The hole successfully extended high-grade mineralization 40m down plunge from drillhole JM_DDH_12_06 located to the east. This high-grade zone remains open down plunge to the southwest. Cross section 600 (Fig. 2) where hole 21-JMRC-03 is located, had no previous drilling. Figure 1 shows the drill map of the project and location for hole 21-JMRC-03 and cross section 600.

New Gold-Silver Zone Discovered

Additionally, a new zone of gold-silver mineralization was discovered to the north of the Jesus Maria Silver Zone, with Au-Ag (Capitan Style) mineralization intersected at 164.6m downhole, approximately 50m to the north of the Jesus-Maria Vein. This new zone returned 13.7m of 63.28 g/t AgEq, and has been interpreted to be the northeastern extension of the Gully Fault structure, which appears to continue the north of the Jesus Maria Silver Zone. This new zone remains open along strike to the northeast.

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