Capitan Mining Expands Known Gold Mineralization at the Penoles Gold Project in Durango, Mexico; Drills 45.7 Metres of 0.63 g/t Gold Within Larger Interval of 111.3 Metres of 0.34 g/t Gold

Vancouver, British Columbia--(Newsfile Corp. - November 30, 2020) - Capitan Mining Inc. (TSXV: CAPT) ("Capitan" or the "Company") is pleased to report results for the first seven drill holes from the current and on-going 6,000 metre reverse circulation (RC) drill program at the Peñoles Project (the "Project") in Durango, Mexico. This initial drill campaign is focused on testing the continuity of known gold-silver zones at the Capitan Hill Deposit, both along strike and down-dip of the March 2015, 43-101 compliant, inferred resource outline, as well as infill significant gaps within the resource model. The first seven drill holes of the program are presented herein, all of which intersected Capitan Hill style mineralization that is consistent in grade and width with previous drilling.

Drill Highlights:

• RC Hole (20-CARC-06): intersected 45.7 m of 0.63 g/t gold within a larger interval of 111.3 m of 0.34 g/t gold;
• RC Hole (20-CARC-05): intersected 76.2 m of 0.41 g/t gold and 21 g/t silver including 16.8 m of 0.68 g/t gold and 28.5 g/t silver;
• RC Hole (20-CARC-03): intersected 68.6 m of 0.4 g/t gold and 11 g/t silver including 16.8 m of 0.74 g/t gold and 15.9 g/t silver;
• RC Hole (20-CARC-02): intersected 56 m of 0.4 g/t gold including 25.9 m of 0.53 g/t gold;
• New gold zones discovered in the hanging wall of Capitan Main zone, that provide an additional, near surface opportunity to expand the March 2015 resource within the conceptual, open-pit shell;
• Drill results support management's view that there is significant room to expand the existing oxide resource;
• Drilling is ongoing and the company anticipates completion of the 6,000 meter RC drill program in March/April 2021.

Capitan's CEO, Alberto Orozco, stated: "We are very excited to receive the first batch of drill hole assays from our program on Capitan Hill at the Peñoles Project. This first batch of drill holes demonstrates strong continuity of gold-silver mineralization, particularly down- and up-dip; and they are also showing silver mineralization at depth to be more significant than previously thought. Drill hole 20-CARC-05 had a wider and richer intercept of silver mineralization than we had anticipated, demonstrating there is still much more to understand about the potential of the mineralization at Capitan Hill. It is important for Capitan Mining to be delivering on its program as scheduled; from the permitting stage to the commencement of our drill program, and to provide steady news flow as promised. We will continue working through the end of the year to complete the remaining of our planned 3,000 metres of drilling, which will be followed by an additional 3,000 metres of drilling in early 2021."

Figure 1: Fall/Winter 2020 Drill Program Map at the Capitan Hill Target

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Expansion Drilling, Capitan Main Zone

RC holes 20-CARC-01, 03, and 05 located on sections 100, 400, and 250 respectively, tested the continuity of the gold-silver mineralization down dip of the 2015 Inferred Resource (See drill results in Table 1 and Figure 1 for plan map).

All of the RC drill holes above successfully intersected the Capitan Hill Main Zone, with results being consistent with the grade and width of the previous drilling. These new holes extended the Capitan Hill Main gold-silver mineralization down-dip between 50 to 120 m. Drill results include 76.2 m of 0.41 g/t gold in hole 20-CARC-05, 68.58 m of 0.4 g/t gold in hole 20-CARC-03 and 51 m of 0.439 g/t gold in hole 20-CARC-01. Click here for link to cross-sections.

RC Hole 20-CARC-01, located on section 100, collared near the eastern edge of the Capitan Hill Main Zone (see Figure 1). The hole was mineralized through its entire length starting from surface and was ended in mineralization. This hole extended the Capitan Hill Main Zone by 120 m down dip from previous drilling.

In addition to intersecting the Capitan Hill Main Zone, RC holes 20-CARC-05 and 20-CARC-03, also cut significant values of silver mineralization, expanding the continuity of silver mineralization at depth. Silver values in RC hole 20-CARC-05 include 60.96 m of 25.15 g/t silver that includes a higher-grade zone of 33.5 m of 33.67 g/t silver.

All of the expansion holes were oxidized through their entire length, with RC holes 20-CARC-01 and 03 getting into sulphide mineralization at drill hole depths of 173.7 m and 184.4 m respectively.

Infill Drilling, Capitan Main Zone

Infill drilling in the current program was designed to confirm the presence of the Capitan Hill Main zone in areas where significant gaps (75-100 m ) existed in the 2015 Inferred Resource model. All holes presented below successfully confirmed the presence of the Capitan Hill Main Zone.

RC hole 20-CARC-06 was drilled on section 250 and was designed to test a roughly 100-metre wide gap between previously drilled diamond drill holes CDDH-12-10 and CDDH-08-02 (See Figure 1). Hole 20-CARC-06 intersected the main Capitan Hill Zone from 35.1 m to 146 m, with a total drilled width of 111.25 m grading 0.342 g/t gold, including 45.7 m of 0.626 g/t gold. (See Table 1)

RC Hole 20-CARC-07 was drilled on section 300, between previously drilled diamond drill holes CDDH-08-05 and CDDH-12-12 to infill a large >100 m wide gap. The hole cut the main mineralized zone in three, narrowly separated, intercepts that are bound by anomalous gold mineralization. These include 22.9 m of 0.2 g/t gold, 35.1 m of 0.27 g/t gold and 50.3 m of 0.22 g/t gold. The hole bottomed in anomalous mineralization and could not be drilled to its completed depth due to technical issues.

RC Hole 20-CARC-02 was drilled on section 000 and designed to test a >100 m wide gap between CDDH-12-17 and surface. The hole successfully intersected the Capitan Hill Main Zone and confirmed its presence up-dip, to surface, and was mineralized almost over its entire length. Significant values include 0.284 g/t gold over 29 m and 56.4 m of 0.398 g/t gold.

New, Near Surface Hanging Wall Gold Zones

Drilling prior to the March 2015 resource statement at Capitan Hill indicated the possibility of additional zones of oxidized, gold-silver mineralization located in the hanging wall to the Capitan Hill Main Zone. However, due to a lack of drilling, the significance of these zones was poorly understood and precluded from being captured in the March 2015 resource estimate.

In the current program, RC holes 20-CARC-03, 05 and 07 confirmed the presence and continuity of these "Hanging Wall Zones", highlighting the potential to enhance the existing resource. The most significant results include 30.5 m of 0.22 g/t gold starting from surface in RC hole 20-CARC-03; 22.9 m of 0.199 g/t gold in RC hole 20-CARC-07, and 35.05 m of 0.15 g/t gold in RC hole 20-CARC-05.

Figure 2: Cross Section Diagram of Drill Holes 20-CARC-05 & 20-CARC-06

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Table 1. Table of drill results

Qualified Person & QA/QC:

The scientific and technical data contained in this news release pertaining to the Peñoles Project was reviewed and approved by Marc Idziszek, P.Geo, a non-independent qualified person to Capitan Mining, who is responsible for ensuring that the technical information provided in this news release is accurate and who acts as a "qualified person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Capitan Mining Inc. has a Quality Assurance/Quality Control program that includes insertion and verification of control samples including standard reference material, blanks and duplicates consistent with industry standards.

RC drill samples from the Peñoles Project are collected and split at the drill site using a Gilson Universal Splitter. The samples are stored in either plastic bags (dry) or micropore bags (wet) and secured with plastic zip-ties and then transported to the preparation laboratory of Bureau Veritas in Hermosillo, Sonora. The sample pulps are then transported to the Bureau Veritas' laboratory in Vancouver, where they are assayed for gold by fire assay with atomic absorption finish (FA430 assay method code; 0.005 to 10 ppm detection limit). Samples over 10 ppm Au are assayed with gravimetric finish (Assay code FA530). All samples are also assayed by ICP-ES (code AQ300) for a suite of 33 elements.

All summarized intervals reported in this press release were calculated using a 0.10 ppm Au cut-off grade. Intervals contain no more than 3 metres of internal dilution. High grades have not been capped.

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: (604) 358-2601
Web: www.capitanmining.com

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