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Capella Provides Update on Sierra Blanca Divestiture

Mergers & Acquisitions

Capella Provides Update on Sierra Blanca

Divestiture

VANCOUVER, BC

,

Dec. 10, 2021

/CNW/ - Capella Minerals Ltd. (TSXV: CMIL) (FRA: N7D2) (the "Company" or

"Capella") is pleased to report that Austral Gold Limited (ASX: AGD) (TSXV: AGLD) ("Austral") has successfully

completed the "Tranche 1" exploration investment required to earn-in to an initial 51% interest in the Company's

former Argentine subsidiary, Sierra Blanca SA ("SBSA"). SBSA's sole asset is the Sierra Blanca gold-silver

project in

Santa Cruz Province

.

Austral may now invest a further

USD 600,000

in exploration at the Sierra Blanca project over the next two years

in order to earn-in to a further 29% interest (80% total) in SBSA (the "Tranche 2" investment). Afterwards,

Austral retains the option to acquire the remaining 20% interest in SBSA in return for cash payments and further

work commitments over an additional two-year period (see Company News Release dated

April 1, 2020

, and

MD&A dated

August 31, 2021

).

Austral's work program as part of the "Tranche 1" investment included detailed geological mapping and ASTER

interpretation (specifically calibrating alteration anomalies at Sierra Blanca with those known from the nearby

Cerro Vanguardia

gold-silver deposit), which resulted in the definition of a potential new Dome-Diatreme complex

hosted in favourable Chon Aike Formation in the Vetarron sector. Work currently being undertaken includes

further core re-logging (Vetarron, Lucia, and Chala sectors) and reinterpretation of historical data.

Qualified Persons and Disclosure Statement

The technical information in this news release relating to the Sierra Blanca project 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 copper focus is

currently on the discovery of high-grade VMS-type deposits within 100%-owned, district-scale land positions

around the past-producing Løkken and Kjøli copper mines in central

Norway

. The Company's precious metals

focus is on the discovery of high-grade gold deposits on its newly-acquired Finnish properties (Katajavaara,

Aakenus), the 100%-owned Southern Gold Line Project in

Sweden

, and its active Canadian Joint Ventures with

Ethos Gold Corp. (TSXV-ECC) 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 divestiture in

Santa Cruz

,

Argentina

.

The Company also holds 3,000,000 common shares in Ethos Gold Corp. providing Capella shareholders with

indirect exposure to exploration success at both the Savant Lake Project and elsewhere within Ethos' extensive

Canadian project portfolio.

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.

View original content to download multimedia:

https://www.prnewswire.com/news-releases/capella-provides-update-on-sierra-blanca-divestiture-301441094.html

SOURCE

Capella Minerals Limited

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/December2021/10/c4346.html

%SEDAR: 00023195E

For further information:

Capella Contacts: Eric Roth, Email: [email protected], Karen Davies,

+1.604.314.2662

CO: Capella Minerals Limited

CNW 09:00e 10-DEC-21