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CMIL.V ·

OR Dissemination IN the United States /

Corporate Updates

Capella Minerals - Shares for Debt, Note and

Annual Meeting

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN

THE

UNITED STATES

/

VANCOUVER, BC

,

Dec. 31, 2025

/CNW/ -

Capella Minerals Ltd

(TSXV: CMIL) (FRA: N7D2) (the

"Company") wishes to announce and to clarify further its

October 8, 2025

release, wherein in an

effort to conserve capital the Company has settled an aggregate of

$262,607

in debt with the

issuance of 4,376,784 shares (the "Shares").

The Shares have been issued to insiders of the Company for outstanding management and non-

executive director fees (an aggregate 3,381,484 shares, covering periods from

November 30, 2022

to

August 31, 2025

) and in partial payment of promissory note (995,300 shares). In accordance

with regulatory and securities law the shares are being issued with a four month plus 1 day hold

period trading restriction expiring on

April 30

, 2026.

The share issuance to insiders and the entry into a Promissory Note (as detailed below) is

considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 –

Protection of Minority Security Holders in Special Transactions

("MI 61- 101"). The transaction is

exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as

neither the fair market value of the securities being issued nor the consideration being paid exceeds

25% of the Company's market capitalization.

Promissory Note

- The Company wishes to announce that it had previously entered into a

convertible promissory note with a non-executive director of the Company on

October 13, 2023

for

USD

$150,000

bearing interest at 8% per annum (the "Previous Note"). The Company has paid an

aggregate USD

$42,400

in interest and principal. The Company did not receive Exchange approval

to the Previous Note but no securities were issued in relation to the convertibility of the Previous

Note. The loan proceeds were used for general administrative purposes.

The Company has replaced the Previous Note in its entirety with a new Promissory Note for USD

$133,177

(inclusive of principal and interest) bearing interest at 8% per annum (the "Note"). The

Note, held by a director of the Company, is unsecured, is not convertible into securities of the

Company without Exchange approval and matures on

August 31, 2026

. The Company intends on

retiring the Note after securing new projects and/or securing additional funding. There are no bonus

securities or other compensation payable in relation to the Note.

Annual Meeting

– The Company has rescheduled its annual general and special meeting of

shareholders to

January 30, 2026

; due to the holiday season, registered shareholders not receiving

the management prepared meeting materials in a timely manner are invited to view meeting

materials on the Company's website

www.capellaminerals.com

when published; and contact the

Company directly at

[email protected]

to receive individual information to access online

voting.

On Behalf of the Board of Capella Minerals Ltd.

"Eric Roth"

___________________________

Eric Roth

, Ph.D., FAusIMM

President & CEO

About Capella Minerals Ltd

Capella is a Canadian exploration and development company with a focus on generating gold-copper

projects globally.

For additional information you are cordially invited to visit the Capella Minerals Ltd website at

www.capellaminerals.com

, or to contact

Karen Davies

, VP Communication and Corporate

Development, at Tel: +1.604.314.2662

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.

SOURCE

Capella Minerals Limited

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/December2025/31/c3041.html

%SEDAR: 00023195E

For further information:

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

Davies, +1.604.314.2662

CO: Capella Minerals Limited

CNW 16:00e 31-DEC-25