Capella Announces Filing of Technical Report for the Løkken Copper Project and Issuance of Shares to EMX Royalty Corp

VANCOUVER, April 7, 2021 - Capella Minerals Ltd. (TSXV: CMIL) (FRA: N7D2) (the "Company" or "Capella") is pleased to advise that it has filed an independent National Instrument 43-101 ("NI 43-101") technical report on the Company's Løkken copper-rich massive sulfide ("VMS") project, central Norway. This technical report provides a detailed review of the known high-grade copper targets that surround the former Løkken copper mining operations, and which will form the focus of the Company's 2021 exploration activities (Figure 1). A copy of the technical report is available under Capella's profile on SEDAR (www.sedar.com) and on the Løkken project page of the Company's website (www.capellaminerals.com).

Planning is well-advanced for the re-initiation of early-Spring field and drill target generation activities on the 210 square kilometre property at Løkken. This work will initially focus on the reinterpretation of existing geophysical data for Løkken (especially electromagnetic data, a favoured exploration tool for massive sulfide deposits) together with the acquisition of high-resolution magnetic and geochemical (ionic leach) data over key target areas. To date, the Company has identified six priority regional targets at Løkken - Dragset, Western Area, Hoydal, Eastern Area/Amot, and the Northern and Southern Target areas. However, an additional 12 areas with surface copper mineralization have also been identified from Norwegian Geological Survey mapping programs and these will also be evaluated during the 2021 field campaign.

Issuance of Shares to EMX Royalty Corp.

The Company is also pleased to advise that it has received final TSXV Exchange approval for the issuance of 13,614,785 shares to EMX Royalty Corp. (TSXV: EMX; NYSE American:EMX)("EMX"), which represents 9.9% of the Company´s current Issued and Outstanding shares and is the primary consideration for the acquisition of Capella's 100% interests in the Løkken and Kjøli high-grade copper projects in Norway, and the Southern Gold Line Project in Sweden (see Company Press Release dated August 11, 2020, and Management Discussion and Analysis dated November 30, 2020). A future share issuance of up to a maximum of 2,079,000 Capella shares remains to be made to EMX in accordance with the anti-dilution clause as stipulated in the original purchase agreement.

Eric Roth, Capella's President and CEO, commented today: "We formally welcome EMX Royalty Corporation today to Capella's share register, and we look forward to an ongoing, mutually beneficial relationship as we continue to advance our highly-prospective Norwegian copper projects and Swedish gold project towards drilling. Whilst all three projects represent exceptional opportunities for the Company, we are particularly excited about the potential of our Løkken and Kjøli copper projects, where both brownfields and greenfields exploration activities are underway in the immediate vicinity of former mining operations.

In the specific case of Løkken, which forms the basis of the current 43-101 technical report, the potential for adding near-surface copper resources along strike from the previous mining operations - and indeed elsewhere within the property - remains high. Massive sulfide deposits commonly occur in clusters and we have already identified 6 priority regional targets - plus a dozen or so additional target areas - that we plan to advance to drill testing during 2021. In the case of Kjøli, I am looking forward to shortly reporting the results of the CARDS AI analysis (see Company News Release dated January 14, 2021) as well as the initiation of our Springtime field activities over the 15km-long "prospective horizon". I look forward to keeping the market updated as we advance all of our projects in Scandinavia and Canada towards drilling and discovery."

About the Løkken Copper Project

The Company's Løkken copper-rich VMS project is located some 50km SW of the regional centre of Trondheim in central Norway. The Løkken claim block covers an area of 210 square kilometres (21,000 Ha) and surrounds the former Løkken underground copper mine, which closed in 1987 in response to low metals prices. Capella's claim block covers a significant portion of the old Løkken mine infrastructure (shafts, historical mineral processing facilities, railway loading area for concentrate, etc), in addition to multiple satellite bodies of VMS mineralization with varying degrees of development.

Løkken is considered to be one of the largest ophiolite-hosted Cypress-type VMS deposits (by tonnage) to have been developed anywhere in the world, having produced an estimated 24Mt @ 2.3% Cu and 1.8% Zn (plus silver and gold credits)¹. The old Løkken underground mine extended over approximately 4km in length, outcropping at its eastern margin and attaining a maximum depth of 1km near its current western limit. Capella's 2021 exploration program at Løkken will be focused on the 6 priority, near-surface occurrences of VMS mineralization that lie predominantly along strike from the former mining operations.

General infrastructure in the Løkken area is first-class and includes an electrified and operational narrow-gauge railway (which joined the old mine to the deep-water port at Orkanger, located 25km away), low-cost hydroelectric power, and excellent road and telecommunications networks.

Qualified Persons and Disclosure Statement

The technical information in this news release relating to the Løkken and Kjøli projects has been prepared in accordance with Canadian regulatory requirements set out in NI 43-101, and approved by Eric Roth, the Company's President & CEO, a Director, and a Qualified Person under NI 43-101. Mr. Roth holds a Ph.D. 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 30 years of experience in international minerals exploration and mining project evaluation.

On Behalf of the Board of Capella Minerals Ltd.

"Eric Roth"

___________________________

Eric Roth, Ph.D., FAusIMM
President & CEO

About Capella Minerals Ltd

Capella is engaged in the acquisition, exploration, and development of quality mineral resource properties in favourable jurisdictions with a focus on high-grade gold and copper deposits. The Company's precious metals focus is on the discovery of high-grade gold deposits on its recently acquired Southern Gold Line Project in Sweden, in addition to its active Canadian Joint Ventures with Ethos Gold Corp. at Savant Lake (Ontario) and Yamana Gold Inc. at Domain (Manitoba). The Company also retains a residual interest (subject to an option to purchase agreement with Austral Gold Ltd) in the Sierra Blanca gold-silver epithermal project in Santa Cruz, Argentina.

The Company's copper focus is on the discovery of high-grade massive sulfide (VMS-type) deposits within district-scale land positions around the past-producing Løkken and Kjøli copper mines in central Norway. Field activities are ongoing on all projects, with the primary focus being to advance priority targets through the permitting process and onwards to drilling and discovery.

The Company also holds marketable securities in Cerrado Gold Inc. (TSXV: CERT; 833,334 shares) and Ethos Gold Corp. (TSXV: ECC; 2,000,000 shares), providing Capella shareholders with indirect exposure to both exploration and operational success by these Companies.

Cautionary Notes and Forward-looking Statements
This news release contains forward-looking information within the meaning of applicable securities legislation. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of Capella, including the timing, completion of and results from the exploration and drill programs described in this release. Although the Company believes that such statements are reasonable, it can give no assurances that such expectations will prove to be correct. All such forward-looking information is based on certain assumptions and analyses made by Capella in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. This information, however, is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Important factors that could cause actual results to differ from this forward-looking information include those described under the heading "Risks and Uncertainties" in Capella's most recently filed MD&A. Capella does not intend, and expressly disclaims any obligation to, update or revise the forward-looking information contained in this news release, except as required by law. Readers are cautioned not to place undue reliance on forward-looking information.

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

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SOURCE Capella Minerals Ltd.