Capitan Mining Inc. (TSX-V: CAPT) is pleased to report results for five drill holes.

Release Highlights:

• 20-CARC-11 intersected 57.9 m of 0.94 g/t AuEq including 18.3 m of 2.04 g/t AuEq.
• 20-CARC-13 intersected 100.6 m of 0.42 g/t AuEq including 21.3 m of 0.67 AuEq.
• New drilling has confirmed that Capitan Hill gold mineralization continues along strike to the east, over 250 m beyond the 2015 43-101 resource and remains open to expansion to the east, west and down-dip.
• Drill Holes Pending: 20-CARC-16 and 20-CARC-17.
• Drilling to recommence on January 11^th, 2021.

Program Description

The five drill holes reported herein targeted the western and eastern limits of the Capitan Main zone, where there was limited knowledge of continuity and grade as historic drilling was sparse in these areas. The purpose of these holes was to confirm the potential to expand Capitan Hill mineralization within these areas, as well as investigate the undrilled potential along strike.

Capitan’s CEO, Alberto Orozco, stated: “The current drill program has continued to confirm our thesis that there is excellent potential to expand the size of the known resource at Capitan Hill. Results from the ongoing program continue to show wide intercepts of mineralization coincident with deep zones of oxidation, both down-dip of known gold zones, and also within areas of sparse, historic drilling along strike. We are excited to see that gold and silver mineralization continues to expand and remains open in all directions. This is indicative of how premature the maiden resource was for this project.”

Western Extension

Hole 20-CARC-13 was drilled on section -500, 70 m from of the western limits of the Capitan main zone. Historic drilling located up-dip (CDDH-12-21) intersected typical Capitan Hill style mineralization, but to the west, historic drilling indicated the zone was somewhat narrower and weaker. Hole 20-CARC-13, which returned 100.6 m of 0.42 g/t AuEq, illustrates that this may be a local, weak area in the Capitan main zone, and that drilling on the section to the west was located just above of the main plunge of Capitan Hill zone. Further drilling will be planned to investigate the western extension of the Capitan main zone and to further investigate the undrilled potential beyond the current drilling limits.

Eastern Extension

Hole 20-CARC-11 was designed to test the down-dip/down plunge extension of the Capitan main zone from holes 20-CARC-01 and 12, both of which returned strong drill results including 51.8 m of 0.46 g/t AuEq and 73.15 m of 0.63 g/t AuEq respectively. The hole cut the main Capitan zone starting from 53 m and was present in 6 distinct gold zones ranging in width from 9.1 to 57.9 m, with the best intersection returning 57.9 m of 0.94 g/t AuEq (including 18.3 m of 2.04 g/t AuEq) and successfully extending the main Capitan zone between 85 to 105 m downdip from hole 20-CARC-01. Hole 20-CARC-11 ended prematurely in mineralization due to technical challenges.

Holes 20-CARC-10, 14 and 15 were drilled within the eastern most portion of the Capitan main zone, where historical drilling was generally widely spaced, targeting the zone close to surface.

Hole 20-CARC-10 on section 000 was a step-out hole that successfully extended the Capitan Hill zone between 45-65 m down-dip, intersecting 3 distinct zones, the most significant being 64 m of 0.27 g/t AuEq and 45.7 m of 0.31 g/t AuEq (including 4.6 m of 1.41 g/t AuEq).

Hole 20-CARC 14 drilled on section 100 was an infill hole that was designed to test a 100 m gap between historic core holes CDDH-11-12 and CDDH-11-08. The hole successfully intersected the Capitan Hill zone in two intervals, with the most significant returning 25.9 m of 0.36 g/t AuEq (including 12.2 m of 0.48 g/t AuEq).

Hole 20-CARC-15 drilled on section 300 was a step-out hole to designed to test the down-dip extension below historic core hole CDDH-11-03. The hole intersected 5 separate zones of Capitan hill style mineralization, ranging in width from 7.6 to 38.1 m, and returned generally low grades, the most significant being 16.8 m of 0.24 g/t AuEq. This hole successfully extended the main Capitan Hill zone between 50 and 85 m down-dip.

Figure 1: Map of Capitan Mining Fall/Winter 2020 Drill Program

00 Cross Section

100 Cross Section

Table 1. Table of Drill Results

Note: True widths range between 70-95% of the reported drill intersections.
* Gold equivalent calculated at 80:1 ratio
** No significant values

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.