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Vancouver, British Columbia--(Newsfile Corp. - December 16, 2020) - Capitan Mining Inc. (TSXV: CAPT) ("Capitan" or the "Company") is pleased to report results for three drill holes from its on-going 6,000 metre reverse circulation (RC) drill program at the Peñoles Project (the "Project") in Durango, Mexico, drill holes 20-CARC-08, 20-CARC09 and 20-CARC-12.

Drill Highlights:

• RC Hole 20-CARC-12: intersected 36.5 m of 0.91 g/t Au equivalent* within a larger interval of 73.15 m of 0.63 g/t gold equivalent; This hole also intersected significant widths of the Hanging Wall Zone mineralization and extended Capitan Hill Zone 65 m down-dip;
• RC Hole 20-CARC-09: intersected 64.01 m of 0.69 g/t gold equivalent including 13.72 m of 1.26 g/t gold equivalent;
• RC Hole 20-CARC-08: intersected 48.77 m of 0.58 g/t gold equivalent including 28.96 m of 0.82 g/t gold equivalent;

Capitan's CEO, Alberto Orozco, stated: "We are excited with the drill results to date, as they demonstrate the growth potential for the Capitan gold zone at the Peñoles Project. Our initial holes reported focused more on the better-drilled, western portion of the resource, but as we are stepping out towards the southeast, where previous drill holes were limited, we are now seeing higher potential to increase the size of the gold-mineralized body."

Figure 1: Fall/Winter 2020 Drill Program Map at the Capitan Hill Target

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Drill Results Discussion

Drill hole 20-CARC-12 was a step-out hole designed to test the down-dip extension of the main Capitan Hill Zone, as well as test for Hanging Wall mineralization, which was absent in hole CDDH-11-06 located immediately up-dip. The hole was successful in confirming the presence of up to five, > 10 m wide, mineralized zones in the Hanging Wall, starting from surface, with the best interval returning 22.9 m of 0.20 g/t gold, which has extended the zone down-plunge 100 m to the south-east from section 200 (see Figure 2).

Additionally, hole 20-CARC-12 successfully intersected the main Capitan Hill zone as expected, reporting an interval of 73.2 m grading 0.63g/t Aueq including a higher grade interval of 36.6 m of 0.91 g/t Aueq in oxides, which indicates a new higher grade block which may be developing in this area. This new interval extended the main Capitan Hill Zone down-dip approximately 65 m from hole CDDH-11-06.

Hole 20-CARC-09 was an infill hole that was designed to test a gap between two historic drillholes, both of which were terminated in the Capitan Main zone. The hole successfully confirmed the presence of the Capitan Hill Zone, as well as extending the zone approximately 12.5 m to depth, compared to where the historic holes had ended, reporting an interval of 64 m grading 0.69 g/t Aueq, with a higher grade interval of 13.5 m grading 1.26 g/t Aueq. The hole also intersected the Hanging Wall zone between 25 to 65 m, but only sporadic, low grade values were returned.

Hole 20-CARC-08 was designed to test an approximate 100 m wide gap in the Capitan Main zone between surface and historic hole CDDH-12-15. The hole was successful in intersecting the up-dip projection of the Capitan main zone, returning an interval of 48.8 m grading 0.58 g/t Aueq.

Note: All intervals reported above are oxidized with the exception of a 12.2 m wide sulfide intercept in the Capitan Hill zone starting from 179.8 m depth.

Figure 2: Cross Section Diagram of Drill Hole 20-CARC-12

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Table 1. Table of Drill Results

Note: Drillholes are designed to cut known zones as close to true width as possible unless otherwise stated. Only drilled widths are reported herein, with true widths generally between 85-95% of the reported interval.

* Gold equivalent values are calculated using an 80:1, silver to gold ratio.
** Denotes 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. 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. 
This email address is being protected from spambots. You need JavaScript enabled to view it.
Phone: (778) 327-6671
Fax: (778) 327-6675
Web: www.capitanmining.com

Raffi Elmajian
Corporate Communications
Capitan Mining Inc.
This email address is being protected from spambots. You need JavaScript enabled to view it.
Phone: (604) 358-2601
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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