Vancouver, British Columbia--(Newsfile Corp. - March 3, 2025) - Capitan Silver Corp. (TSXV: CAPT) ("Capitan" or "the Company") is pleased to provide guidance on its exploration strategy at its high-grade silver Cruz de Plata Project located in Durango, Mexico. A Phase 1 drill program, expected to commence in early March, will test several high-priority silver targets.

Key Highlights:

• With the recent closing of Capitan's C$5.3M equity financing led by a strategic investment from the Jupiter Silver & Gold Fund, together with continued support from Capitan's largest shareholders Michael Gentile and Construplan, the Company is pleased to announce its plans to recommence drilling activities at its flagship Cruz de Plata high-grade silver project.

• A Phase 1 exploration program will target an initial 10,000 metres of reverse circulation (RC) drilling and will be focused on high-priority silver targets that have been identified to date from prior work programs. The following priorities will be included in the Phase 1 exploration program:

Phase 1 Exploration Program

1. Definition and step out drilling of high-grade silver mineralization at Jesus Maria: Since the conclusion of drilling in 2022, surface sampling in 2023 and 2024 has continued to outline and confirm the continuity of high-grade silver veins and structures on surface, with grab samples returning values between 200 and 913 g/t silver on the recently acquired Fresnillo claims. New interpretations have linked this new zone of mineralization with the Jesus María vein, expanding the surface footprint of high-grade silver mineralization to 2.6km in strike, with 1.3km already confirmed to date in shallow drilling.

Previously announced drill highlights include:

• JM_DDH_13_06: 0.9m of 3,567 g/t AgEq within a wider interval of 13.7m of 381.06 g/t AgEq

• 22-JMRC-22: 1.5m of 1,431.68 g/t AgEq within a wider interval of 10.7m of 314.54 g/t AgEq

• 21-JMRC-03: 1.5m of 739.6 g/t AgEq, and 1.5m of 800.0 g/t AgEq and 1.5m @ 595.5 g/t AgEq within a wider interval of 10.7m @ 403.43 g/t AgEq

The 2025 Phase 1 drilling program will focus on delineating high-grade Silver mineralization on the recently acquired Fresnillo claim, which has seen very little historic drilling. Mineralization along this zone remains open along strike, down-dip and towards surface (See Zone A in Figures 1 & 2 below).

2. Step out drilling along the Gully Fault zone to the northeast (NE): The Gully Fault zone is of particular interest as it is a younger style of mineralization that overprints the high-grade, silver-polymetallic (Ag-Au-Pb-Zn) veins at Jesus Maria. The Gully Fault has a different style of mineralization which is characterized by high grade silver with gold. Previous drilling has intersected impressive silver grades with previously announced drill highlights including:

• JM_DDH_14_24: 7.15m of 1,024.4 g/t AgEq within a wider interval of 42.0m of 244.72 g/t AgEq

• 21-JMRC-01: 1.5m @ 1,099.3 g/t AgEq and 1.5m @ 1,267.2 g/t AgEq within a wider interval of 42.7m @ 207.82 g/t AgEq

• 21-JMRC-10: 1.5m @ 2,250.1 g/t AgEq within a wider interval of 16.8m @ 309.82 g/t AgEq

For the 2025 phase 1 drill program, the Company intends to continue tracing Gully Fault style, high-grade silver-gold mineralization down-plunge to the southwest, as well as evaluate its potential to the northeast, especially where it is interpreted to intersect the east-west trending Santa Theresa Fault. Grab samples in this area of limited outcrop exposure have returned values ranging from 150 to 460 g/t Ag. Numerous, historic pits and mine workings have also been located along this trend (See Zone B in Figures 1 & 2 below).

3. Develop new high-grade silver drill targets on parallel, mineralized structures to the north of Jesus Maria: Additional work programs consisting of prospecting, geochemistry and geophysics will be focused on advancing drill targets on secondary, parallel, mineralized structures located to the north and northeast of the main Jesus Maria silver trend. In total, there are 8 silver mineralized structures that have been identified at Cruz de Plata, for a cumulative strike length of 7km (See Zone C in Figure 2 below).

4. Updated Mineral Resource Estimate (MRE) for the Capitan Hill Oxide Gold Deposit: An updated Mineral Resource Estimate for the Capitan Hill Oxide Gold Deposit is expected to be completed in Q2 2025. Capitan Hill currently has an inferred, NI-43-101 compliant resource of 305,000 oz at 0.46 g/t gold, based on 6,717m of historic drilling (See the Technical Report: Strickland and Sim (2020), Penoles Gold-Silver Project, Durango Mexico).

The updated resource estimate will incorporate an additional, 12,209m of drilling, that was completed by Capitan in 2021 and 2022, which has doubled the footprint of the deposit along strike and at depth (See Zone D in Figured 2 & 3 below).

Alberto Orozco, Capitan's CEO stated:

"I am very excited about the upcoming restart of drilling at the Cruz de Plata project. Over the past several months, our technical team has been diligently refining and enhancing our understanding of key drill targets. With the successful closing of our recent financing, we are now positioned to begin testing these targets as we continue to evaluate the project and generate new opportunities. I have great confidence in the geology and strong potential of Cruz de Plata, and I believe this next phase of work will be instrumental in unlocking its value."

Figure 1. Vertical long section of Cruz de Plata high-grade silver trend. A) On-strike extension to the East of Jesus María vein; B) NE on-strike extension of Gully Fault zone;

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7373/243046_738a8b2fd402aacd_002full.jpg

Figure 2. Target map of Cruz de Plata project showing exploration priorities for the Phase I exploration program in this release.A) On-strike extension to the East of Jesus María vein; B) NE on-strike extension of Gully Fault zone; C) Additional surface work to refine new drill targets north of Jesús María vein; D) Resource update of Capitan hill disseminated oxide gold deposit.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7373/243046_738a8b2fd402aacd_003full.jpg

Figure 3. 3D view of the Capitan Hill disseminated oxide gold deposit looking N-NW. Top: Gold deposit with drilling up to 2014. Bottom: Expanded footprint of gold deposit after Capitan Silver's additional 12,209m of drilling.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7373/243046_738a8b2fd402aacd_004full.jpg

Qualified Person & QA/QC

The scientific and technical data contained in this news release pertaining to the Cruz De Plata 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.

About Capitan Silver Corp.

Capitan Silver (TSXV: CAPT) is a Canadian exploration company focused on advancing its Cruz de Plata silver gold project located in Durango, Mexico. The Company is led by a management team that has successfully advanced and developed several precious-metal operations in Mexico over the past 16 years.

Overview: Cruz de Plata Silver Project

The 2,551-hectare Cruz de Plata Silver-Gold project is located within the Altiplano region of the State of Durango, one of the safest States in Mexico in recent years. Access to the project site is excellent from either Durango or Torreon, with exploration permitted year round.

The project area is the birthplace of the Peñoles Mining Company with historic mining dating back to 1887. These historical mines are contained within a well-defined, outcropping, high-grade silver trend and include the Jesús María (2.5Km strike length), Santa Teresa (1.8Km length), San Rafael North (1.3Km) vein trend. These veins are believed to be part of a much larger Intermediate sulfidation system that stretches across the Cruz de Plata property. Grades from historic mining along with these veins ranged from 300 to 2,000 g/t Ag, 3-12% Pb, and 4-10% Zn. The style of mineralization at the Cruz de Plata Silver belt is mostly Intermediate sulfidation.

Drilling by the Company and previous operators has focused mostly on the Jesús María vein system as well as along cross-cutting Gully Fault Ag-Au zone.

Drill highlights include:

• JM_DDH_13_06: 0.9m of 3,567 g/t AgEq within a wider interval of 13.7m of 381.06 g/t AgEq

• 21-JMRC-10: 1.5m @ 2,250.1 g/t AgEq within a wider interval of 16.8m @ 309.82 g/t AgEq

• 21-JMRC-01: 1.5m @ 1,099.3 g/t AgEq and 1.5m @ 1,267.2 g/t AgEq within a wider interval of 42.7m @ 207.82 g/t AgEq

• 22-JMRC-22: 1.5m of 1,431.68 g/t AgEq within a wider interval of 10.7m of 314.54 g/t AgEq

• JM_DDH_14_24: 7.15m of 1,024.4 g/t AgEq within a wider interval of 42.0m of 244.72 g/t AgEq

• JM_DDH_13_07: 2.0m of 970.77 g/t AgEq within a wider interval of 6.0m of 368.3 g/t AgEq including

• 21-JMRC-03: 1.5m of 739.6 g/t AgEq, and 1.5m of 800.0 g/t AgEq and 1.5m @ 595.5 g/t AgEq within a wider interval of 10.7m @ 403.43 g/t AgEq

• JM_DDH_14_10: 4.3m of 786.5 g/t AgEq within a wider interval of 40.6m of 160.05 g/t AgEq
  (1) Silver equivalent calculated using the following equation: Ageq = (Ag x 0.94) + (Au x 0.86 x 80) + (Zn x 0.037 x 0.935) + (Pb x 0.03 x 0.92)
  (2) For further detail see appendix 1 and 2 and press releases dated February 16 2022, 08 March 2022, May 02 2022, June 29, 2022, January17, 2023.
  (3) AgEq grades are now calculated using metal recoveries. Intervals from historic press releases may not match current release

The Jesús María vein has been drill tested over a strike length of approximately 1.3km and remains open on its eastern side as well down-dip to the south. All historic drilling by the company and previous operators have returned Jesus Maria style mineralization, with no holes missing their intended target. Other targets outside of the Jesus Maria area have seen limited to no drill testing. To date several multi-kilometer silver trends have been identified at Cruz de Plata with a cumulative strike length of +7km.

In addition, the project contains the Capitan disseminated oxide gold deposit which is located in the hanging wall to the Jesús María Vein, approximately 150-300m to its south. This zone represents the top of the mineralized system and has similarities to the nearby El Castillo and San Agustin oxide gold mines that were advanced, built and operated by members of Capitan's management team.

More information for the Company can be found at www.capitansilver.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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