Mr. Eric Roth reports

CAPELLA RECEIVES DRILL PERMITS FOR HESSJOGRUVA COPPER PROJECT, CENTRAL NORWAY, AND PROVIDES UPDATE ON TUMAD JOINT VENTURE

Capella Minerals Ltd. has received approval of diamond drill permits for the company's high-grade Hessjogruva copper-cobalt-zinc (Cu-Co-Zn) massive sulphide (VMS (volcanogenic massive sulphide)) project in Trondelag, central Norway. The Hessjogruva project forms part of the Tumad Madencilik Sanayi Ve Ticaret A.S. earn-in joint venture (JV) agreement on the company's portfolio of copper and gold projects in Norway and northern Finland (see the company's news release dated Sept. 2, 2025).

Hessjogruva (Norway) project highlights:

• Hessjogruva is an advanced-exploration-stage Cu-Co-Zn VMS project on which 12,035 metres (m) of historical diamond drilling was completed during the 1970s. The current program contemplates an initial 4,400 m of drilling from approximately 10 platforms within the lens A Cu-Co-Zn deposit, with follow-up drilling expected at lens A (further infill and potential extensions) and potentially one or more of the satellite lenses B to F.
• The primary aim of this current drill program is to deliver a maiden National Instrument 43-101-compliant mineral resource estimate at Hessjogruva. The granted permits allow for diamond drilling to be undertaken at Hessjogruva between July 15 and Nov. 1 in both 2027 and 2028.
• Additional drilling may also be undertaken on select targets in the adjacent Kongensgruve project, including the Storhovsbekken VMS target (a combined geophysical/electromagnetic and soil/ionic leach copper anomaly).
• The Tumad JV agreement requires that up to 8,000 m of diamond drilling be financed at Hessjogruva as part of the minimum year 1 investment commitment. In recognition of the delays incurred with obtaining the current drill permits, Capella has agreed to extend this year 1 minimum investment milestone at Hessjogruva to Dec. 31, 2027.

Eric Roth, Capella's president and chief executive officer, commented: "I am very pleased to be reporting today that we have received approval for our diamond drill program at the Hessjogruva project. The Hessjogruva project hosts multiple lenses of VMS-style mineralization, with historical work having been focused almost exclusively on the well-defined lens A deposit. The main aim of this drill program is to advance the Hessjogruva project towards a maiden NI 43-101-compliant mineral resource estimate and subsequent development studies. Given the superb working relationship that we have built up with Tumad over this past year in Finland, I am looking forward to the initiation of drilling at Hessjogruva and to advancing the project to the next level.

"It is also noteworthy that the Hessjogruva project has the potential to play an important role in the critical raw minerals strategies that have been adopted by both the Norwegian government and broader European Union. Both copper and cobalt have been declared strategic materials and special emphasis has been placed on sourcing these metals locally and reducing European dependency on foreign suppliers. Hence, I firmly believe that Hessjogruva has the potential to be a future part of the European critical metals supply chain."

Northern Finland project update

Capella also provides an update on the reconnaissance diamond drill program that was recently completed at the Killero W project, northern Finland, and which also forms part of the Tumad JV agreement for the company's portfolio of gold and copper projects in Norway and Finland. A total of 669.2 m of diamond drilling was completed on two initial gold-copper base of till (BoT) geochemical anomalies located along prospective northeast-trending structural corridors and in favourable host rocks (metabasalts and gabbro) (table 1).

Killero W highlights:

• A total of 669.2 m of diamond drilling was completed on two initial BoT gold-copper targets associated with favourable geology (see also the company's news release dated July 3, 2026).
• Mineralization intersected in drilling was predominantly chalcopyrite-pyrrhotite-bearing quartz-carbonate veining in both KW-001 and KW-002, in addition to foliation parallel sulphides at depth in KW-002. Maximum copper grades returned were 0.98 per cent Cu over 1.0 m (211.4 to 212.4 m in KW-002); no significant values were returned for gold.
• Copper optionality: As with Killero E, the company believes that the potential source of the Killero W BoT gold anomalies has not been intersected in drilling completed to date. In addition, the possibility of defining vectors to a proximal copper deposit is also being evaluated through detailed follow-up data reviews.

Northern Finland JV status

With the completion of the Killero W drilling, Tumad has met its year 1 minimum investment commitment for the Northern Finland projects. However, in view of the low gold values returned from both the Killero E and Killero W drilling, Tumad has elected not to continue on to phase 2 of the earn-in agreement. As a result, the northern Finland projects will remain in their current ownership of 80 per cent Capella and 20 per cent Cullen Resources Ltd. (see also the company's news releases dated Aug. 24, 2021, and July 3, 2026), with Tumad retaining a 1-per-cent net smelter return (NSR) royalty on any potential future production from the projects.

Quality assurance/quality control (QA/QC)

Capella/Tumad implemented a QA/QC program to ensure that logging and processing of the Killero W drill core was conducted in accordance with NI 43-101 standards and industry best practice. Drilling was undertaken by Comdev, core was NQ sized, and was logged, photographed and marked up for sampling by geologists at GeoPool's dedicated logging facility in Sodankyla. Core sampling was undertaken at the same facility utilizing a diamond saw, with one-half being dispatched to the analytical laboratory and the other half remaining in storage. Sample lengths were determined according to geology and range from less than one m in mineralized intervals to two m in unmineralized intervals.

Samples for analysis were then sealed in plastic bags and delivered to ALS Laboratories in Sodankyla for sample preparation and subsequent analysis. All samples were dried and crushed to 70 per cent passing two millimetres (mm), with a 250-gram representative split then being taken and further pulverized to a pulp with 85 per cent passing 75 microns (code PREP-31Y). All pulps were subsequently analyzed for Au (30-gram fire assay with AA (atomic absorption) finish; code Au-AA23) plus a 34-element package (four-acid digestion with ICP-AES/MS (inductively coupled plasma atomic emission spectroscopy/mass spectrometry) finish; code ME-ICP61). Overlimit analyses of Cu were automatically undertaken using the (plus) minus OG62 analytical technique. Internal controls of analytical results were provided through a mix of certified reference materials (standards), duplicates and blanks inserted by both Capella/Tumad and ALS into the analytical sequence.

Qualified person and disclosure statement

The technical information presented in this news release has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101 and approved by Mr. Roth, the company's president and chief executive officer, a director, and a qualified person under NI 43-101. Mr. Roth holds a PhD in economic geology from the University of Western Australia, is a fellow of the Australian Institute of Mining and Metallurgy (AusIMM), and is a fellow of the Society of Economic Geologists (SEG). Mr. Roth has over 35 years of experience in international minerals exploration and mining project evaluation.

About Capella Minerals Ltd.

Capella is a Canadian exploration and development company with a focus on generating gold-copper projects globally.

On Jan. 15, 2026, Capella announced the signing of a binding letter of intent with Verde Metals with respect to an earn-in agreement on the Solana iron-oxide copper-gold (IOCG) project in southern Spain. Work plans for the Solana project are currently in the process of being approved by the Andalucian Mining Authority, with field activities expected to begin in Q4 (fourth quarter) 2026 and first drilling in H1 (first half) 2027.

Capella announced on Sept. 2, 2025, the signing of a definitive agreement with Turkish mining company Tumad for a staged earn-in on the company's portfolio of precious and base metal projects in Scandinavia. Tumad's minimum year 1 investment commitment includes up to 12,000 m of diamond drilling on the company's gold-copper projects in the central Lapland greenstone belt of northern Finland and the Hessjogruva copper-cobalt-zinc VMS project in central Norway.

Capella also retains a carried 10-per-cent interest through to production on the Lokken copper-cobalt-zinc VMS project of central Norway through a partnership with Teako Minerals Corp. In addition, Capella holds net smelter return royalties on the Savant gold project in Ontario, Canada (BeMetals Corp.), and the central Finland lithium projects (Grit Metals Corp.), as a result of the divestiture of non-core assets.

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