Capitan Mining Drills 1.5m of 307.53 g/t Ageq & 1.5m of 344.77 g/t Ageq Within a Wider Interval of 21.3m of 132.86 g/t Ageq at the Jesus Maria Vein

Vancouver, August 30, 2022 - Capitan Mining Inc. (TSXV: CAPT) ("Capitan" or the "Company") is pleased to report continued exploration results from five reverse circulation (RC) drillholes from the Jesus Maria silver zone at its 100%-owned Cruz de Plata Project (Formerly referred to as Peñoles), in Durango, Mexico.

Highlights:

• Drill results extend high grade silver mineralization at Jesus Maria to depth; identifying a new higher grade silver zone, which remains open (See Figure 1: Updated long section)
• Hole 22-JMRC-19 returned 21.3m of 132.9 g/t Ageq, including 1.5m of 307.5 g/t Ageq and 1.5m of 344.8 g/t Ageq
• Hole 22-JMRC-13 returned 3.0m of 225.8 g/t Ageq
• All drill holes successfully intersected the Jesus María vein and extended the zone down-dip
• Programs of soil sampling and surface trenching and prospecting continue at the Capitan, Jesus Maria, and San Rafael targets
• Six drillholes are pending from the spring 2022 RC program testing the Jesus Maria vein, Gully Fault and San Rafael north zones

Figure 1. Comparison of updated long section (right) demonstrates continued growth of higher-grade silver zones to depth at Jesus Maria vs previously released long section (left: released June 29, 2022)

To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/7373/135335_capitanfigure1.jpg

Discussion

Capitan Mining continues to focus exploration activities on the expansion and delineation of the Jesus Maria, high-grade, Ag-vein zone. Drillholes were designed as either step-outs along section or as strategic infills, to further delineate areas of high-grade Ag-mineralization. All drillholes reported herein, except for 22-JMRC-17 were step-out holes focused on expanding mineralization down-dip to the east of the Gully Fault (See Figure 2). All drillholes were successful in intersecting Jesus Maria style mineralization, expanding the zone between 43m and 114m down-dip along section.

Holes 22-JMRC-16, 18 and 19 were targeting the expansion of Jesus Maria Style mineralization to the southeast of the current drill defined boundary (See Figure 2: Long Section). All three holes returned multiple intervals of Jesus Maria style mineralization along their profiles ranging in width from 1.5m to 21.5m in length. All three holes were successful in extending the main body of Jesus Maria style mineralization down dip between 66m and 114m in their respective sections over a strike length of approximately 100m. The best results include 21.3m of 132.9 g/t Ageq, including 1.5m of 307.5 g/t Ageq and 1.5m of 344.8 g/t Ageq in hole 22-JMRC-19 and 19.8m of 68.4 g/t Ageq in hole 22-JMRC-16.

Figure 2. Long section along Main Jesus María Vein: The plane containing the long section has an azimuth of 090 and dip of -45 to the south. Silver equivalent calculated using the following equation AgEq = Ag g/t + (80 x Au g/t) + (0.003 x Pb g/t) + (0.0037 x Zn g/t).

To view an enhanced version of Figure 2, please visit:
https://images.newsfilecorp.com/files/7373/135335_414bc18a6439a8c4_004full.jpg

Jesus Maria Zone Continues To Expand

Looking at Figure 2 (Long section), the significance of the current batch of holes can be seen, with the expansion of the higher-grade zones (Reds and Purples) within main Jesus Maria body of mineralization, compared to the last update. Holes 22-JMRC-17, 18, and 19 have expanded and identified additional areas of high-grade mineralization at depth, with the main Jesus Maria zone continuing to grow significantly at depth since the drill program started.

In addition, four drillholes are still pending (See Figure 2), from drillholes that were targeting high-grade mineralization in the vicinity of the Gully Fault.

Surface Work Continues at Cruz De Plata

In addition to the RC drill program at Jesus Maria, surface work at the Cruz De Plata project continues to identify new targets. Ongoing programs include:

• Property wide soil sampling over the Capitan, Jesus Maria, San Rafael and El Tubo vein systems
• Surface pitting and trenching at the Capitan target
• Property wide surface mapping to delineate additional areas of mineralization and skarn style alteration to the north of Jesus Maria

Additionally, the Company has been in talks with various geophysical groups with respect to conducting a property wide airborne magnetic/magnetotelluric survey across the property package this fall. In conjunction with this, a more focused program of deep penetrating, ground IP/resistivity is also being discussed, to be conducted over the Jesus Maria, and Capitan targets.

Capitan's CEO, Alberto Orozco, states: "We are very pleased to show the continuity at depth of both grade and thickness of the Jesus Maria silver vein. We look forward to upcoming holes which will not only continue to test the extension of Jesus María, but of the Gully Fault Ag-Au zone as well. These two higher-grade silver zones in conjunction with the JM North, JM South and San Rafael targets, highlight the potential for significant scale at the Cruz de Plata Silver Project."

Figure 3. Plan map of Jesus Maria Silver Zone showing drillhole locations and location of long section over Jesus Maria vein

To view an enhanced version of Figure 3, please visit:
https://images.newsfilecorp.com/files/7373/135335_414bc18a6439a8c4_005full.jpg

Figure 4. Cross section of hole 22-JMRC-19

To view an enhanced version of Figure 4, please visit:
https://images.newsfilecorp.com/files/7373/135335_414bc18a6439a8c4_006full.jpg

Table 1. Table of drill results for hole 22-JMRC-13, 16, 17, 18, 19

Note: Only drill intercept lengths are reported in the table. Drill holes are designed to cut the mineralized zones as close to true width as possible, with true widths ranging from 70-95% of the reported drilled length.

* Silver equivalent calculated using the following equation AgEq = Ag g/t + (80 x Au g/t) + (0.003 x Pb g/t) + (0.0037 x Zn g/t).

About the Jesus María Silver Project

The Jesus Maria (JM) Silver Project is located approximately 280m to the northeast of the Capitan's Oxide Gold deposit on its 100% owned Cruz de Plata property. It has been traced by surface trenching and diamond drilling over a strike length of 750m and to a depth of 150m, with the majority of drilling focused over 250m strike length and less than 100m below surface.

The Jesus Maria Silver Project has a long mining history going back to the late 1800's, when the Penoles Mining company constructed several shafts and drifts to exploit the high-grade silver veins in the area. In recent years, work programs conducted by previous operators has demonstrated significant potential at the Jesus Maria silver deposit. The work to date has identified Two (2) distinct styles of silver mineralization:

1. High-grade silver polymetallic veins (Silver gold lead-Zinc)
2. High-grade silver with gold veins

Highlights of trenching and diamond drilling by previous operators are presented below:

Prior Trenching Highlights - Jesus Maria (2011-2013)

• 22m of 224g/t Ag, 1.08 g/t Au, 2.5% Pb and 1.7% Zn (2011)
• 8.3m of 144 g/t Ag, 1.68 g/t Au, 2.4% Pb and 2.2% Zn (2011)
• 13.4m of 309 g/t Ag, 1.7 g/t Au. 2.4% Pb and 0.6% Zn (2011)
• 2m of 2,152.2 g/t Ag and 0.48 g/t Au, within a wider interval of 15.4m of 420.8 g/t Ag, 0.15 Au (2013)
• 2m of 378.9 g/t Ag and 0.97 g/t Au, within a wider interval of 15.8m of 129.8 g/t Ag and 0.16 g/t Au (2013)

Prior Diamond Drill Highlights - Jesus Maria (2013-2014)

High-grade Silver Polymetallic veins

• JM-DDH-13-06: 0.9m of 3,409.1 g/t Ag, 0.9 Au, 3.4% Pb and 7.1% Zn within a wider interval of 11.85m of 320.3 g/t Ag and 0.17 Au
• JM-DDH-13-07: 2.1m of 279.5 g/t Ag, 0.21 g/t Au, 4.09% Pb and 7.57% Zn
• JM-DDH-14-10: 2.3m of 113.8 g/t Ag, 0.82 g/t Au, 4.3% Pb and 1.8% Zn

High Grade Silver & Gold Veins

• JM-DDH-14-24: 7.15m of 988 g/t Ag and 1.24 g/t Au within a wider interval of 70.8m of 147.8 g/t Ag, 0.37 g/t Au
• JM-DDH-14-10: 4.25m of 732.2 g/t Ag, 1.2 g/t Au, within a wider interval of 40.6m of 123.9g/t Ag and 0.54 g/t Au
• JM-DDH-13-07: 2m of 988.5 g/t Ag, 0.23 g/t Au within an interval of 4m of 533 g/t Ag and 0.16 g/t Au
• JM-DDH-14-27: 4.7m of 398 g/t Ag and 1.33 g/t Au within a wider interval of 47m of 125 g/t Ag and 0.4 g/t Au

Approximately 3,100m of diamond drilling were completed by previous operators at the Jesus Maria silver deposit (2011-2014), which were used to complete an initial 43-101 compliant, Inferred resource in 2015 consisting of 7.5 million tonnes at an average grade of 62 g/t Ag (15 million contained ounces) and 0.1 g/t Au (26,000 contained ounces). Capitan has submitted an updated 43-101 report on the Cruz de Plata project inferred resource (formerly called Peñoles project), with an effective date of January 12, 2020. The report was authored by Derrick Strickland, P. Geo. And Robert Sim, P. Geo. The report can be found in SEDAR.

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 and over 100 ppm Ag are assayed with gravimetric finish (Assay code FA530). All samples are also assayed by ICP-ES (code AQ300) for a suite of 33 elements. Samples over 1% Pb and Zn are assayed by Aqua regia Ore Grade ICP-ES (AQ 370).

All summarized intervals reported in this press release were calculated using a 25 ppm Ag equivalent (AgEq) cut-off grade with AgEq considering Ag, Au, Pb and Zn and calculated as follows: AgEq = Ag g/t + (80x Au g/t) + (0.003 x Pb g/t) + (0.0037 x Zn g/t). 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: (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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