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GORDON CAPITAL PTY LTD � Ph: +61 3 9607 1371 � www.gordoncapital.com.au

Gordon Capital Pty Ltd, is a Corporate Authorised Representative No. 338899 of InterPrac Financial Planning Pty Ltd (AFSL 246638)

Gordon Capital Pty Ltd of 20

CAPRICORN METALS LIMITED (CMM)

KARLAWINDA GOING FOR GOLD GCR Valuation: $103 million/$0.26

DIRECTORS & MANAGEMENT

Guy LeClezio – Chairman, Non-Executive Director

Peter Thompson - Managing Director

Peter Langworthy - Technical Director

Heath Hellewell - Non-Executive Director

Neville Bergin – Project Study Manager

MARKET DATA (as at 11/04/16)

ASX Code: CMM

Current Price $0.14

Market Capitalisation: ~$54.5 million

Gordon Capital valuation $103 million/$0.26

CAPITAL STRUCTURE (as at 23/03/16)

Current Shares on Issue: 217.1 million

Escrowed Shares*: 171.6 million

Listed/Unlisted options 7.5 million *held in escrow until 03/02/17

MAJOR SHAREHOLDERS (as at 29/02/16)

Centrepeak Resources Group 19.09%

Regis Resources Ltd 9.90%

SENIOR ANALYST

Stuart Glazebrook

+61 402 216 835

April 2016

Capricorn Metals Ltd (ASX: CMM) is an ASX-listed

company focused on the exploration, development and

production of gold its assets in Western Australia.

Formerly Malagasy Minerals Ltd, CMM is developing the

Karlawinda Gold Project in Western Australia, having

secured a 100% interest in the project in February 2016.

IGO completed a detailed Scoping Study on Bibra, before

deciding its modelled output did not meet their corporate

development objectives. The ~400km2 tenement package

also contains the advanced Francopan Gold Prospect, and

a number of other prospective exploration targets.

Since re-badging from Malagasy in February 2016,

Capricorn has commenced a 48 hole, 8,000 metre RC

drilling program to extend the known resource at Bibra

with first results confirming higher grade mineralisation at

depth which will underpin a new Scoping Study expected

to be completed by July 2016.


+650,000oz of inferred

gold resources already

identified

High grade intersections

outside of current

resource envelope and

suggest possible higher

grade mineralised core

Leadership team have

strong track record of

discovery & development

EXECUTIVE SUMMARY

Located deep within West Australian iron-ore country, the Karlawinda Project was first

pegged by Western Mining Corporation in 2005.

Despite its thesis as a likely new gold province, WMC - who were looking for new nickel-

cobalt resources and in the throes of a BHP-Billiton takeover - passed it along to

Independence Group in 2008 who subsequently discovered the Bibra Gold Deposit in

2009 before going on to define more than 650,000oz of inferred gold resources (JORC

2012 compliant); spending a total of A$12M, including completion of a Scoping Study.

In 2016 Capricorn Metals Ltd (ASX: CMM) purchased the Karlawinda Gold project from

IGO with a final A$1.5m payment outstanding.

Building on the established Inferred resource

at Bibra there is potential to quickly uplift the

existing resource endowment to Measured and

Indicated status through the current and

further drilling programs. Recent drilling

results suggest the presence of a high grade

core to the mineralised system and included

9m @ 5.10 g/t Au from 169m in hole KBRC285

and 9m @ 3.32 g/t Au from 126m in hole

KBRC290 in a hanging wall lode which could

become very significant in additional resource

ounces and reduced stripping ratio (Figure 8).

Sustained positive assay results (anticipated by

the end of April) and a confirmed resource

growth pathway should prompt a re-rating of

the Company as it de-risks Bibra and moves

towards profitable production.

Within the Karlawinda tenements the nearby prospects

at Francopan and K3 have significant potential to add further ounces with previous

exploration work identifying the possibility of a larger, higher-grade mineralised core at

depth that have been interpreted as potentially hosting a +1Moz orebody.

Scoping study work by previous owner IGO modelled the potential for a simple 3-stage

open pit mining operation with a straightforward CIP flowsheet and onsite treatment

plant. Proximity to existing infrastructure ensures modest capital costs while

optimising cash flow for a high tonnage-low grade deposit. Capricorn is likely to follow

the operational blueprint of major shareholder Regis Resources (ASX: RRL) who have

demonstrated success with comparable grade and strip ratios at their Duketon gold

operations near Laverton in Western Australia.

The Board and Management team of Capricorn have a well credentialed track record of

project discovery and development success.

FIGURE 1. PROJECT LOCATION

Source: Capricorn Metals


All-in-Sustaining Cost of

A$858/oz

Bibra valuation =

A$103M (NPV20)

FIGURE 2. KARLAWINDA GOLD PROJECT - Location Plan


Valuation

At Bibra Gold Project, Capricorn is looking to process 2.5Mtpa to produce 80-100koz/yr

at an All-in-Sustaining-Cost of A$858/oz for at least 7 years. Our modelling assumes

funding of Bibra with conventional debt and equity and we have budgeted capex of

A$100M (inclusive of feasibility costs and contingencies). We expect the company to

mitigate its funding mix to minimize dilution risk. Additional discoveries and increases

in average resource grade would positively impact project economics.

At its current resources status Gordon Capital has determined a valuation for Capricorn

Metals’ Bibra Gold Project using a 20% discount rate (NPV20) of A$103M.


Resource expansion

potential is significant

Strong shareholder

support

BUSINESS OVERVIEW - KEY POINTS

• Capricorn Metals Ltd has purchased the Karlawinda Gold Project in WA Pilbara

region from Independence Group.

• Karlawinda contains the Bibra Gold Deposit which has a previously defined

Inferred JORC Resource of ~650,000oz. Regionally there is considerable resource

expansion potential within the Company’s adjacent tenement areas.

• The Company is currently completing a drilling program to test the open extent of

mineralisation at Bibra toward completion of a Feasibility Study by June-July 2016.

• The Company is confident further resource delineation work will uplift the existing

resource endowment within an accelerated timeframe toward a decision to mine.

• High free-dig/free-mill component to the orebody, proximity to local

infrastructure and likely pit and plant design support a low cost mining operation

with significant cash flow potential at current gold prices.

• The Company has support of two significant shareholders: Centrepeak Resources

Group (19.1%) and Regis Resources (9.9%).

• Capricorn has an experienced Board and management team with extensive

experience in metals and mining. Managing Director Peter Thompson has more

than 25 years experience in exploration, development and management of gold

and base metal mines, including 7 years with WMC and senior roles in ANL, JBM

and SBM.

• Former Doray co-founder Heath Hellewell is on the Board representing major

shareholder Centrepeak Resource Group along with Malagasy Minerals founding

Director, Chairman Guy LeClezio and Technical Director Peter Langworthy.

FIGURE 3. SHARE PRICE CHART

Source: ASX, Company Announcements

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

Apr-15 Jul-15 Oct-15 Jan-16 Apr-16

Shareholders approve name change to Capricorn Metals

Karlawinda acquisition announced


Native title still needs

ratification

BHP-Billiton have a

clawback provision

INVESTMENT THESIS & VALUE PROPOSITION

While many resource companies spend years and considerable shareholder funds

running endless drilling campaigns and desktop studies, it is encouraging to see those

with the right skills and experience still willing to take the risk and grow their

Company’s value through building a mine. Karlawinda’s potential to host million ounce

orebodies remains untested, but at least with Capricorn Metals we will find out.

RISKS

FUNDING

The final instalment (A$1.5M) for the purchase of the Karlawinda Project is due in mid-

August 2016. The Company expects it will be able to meet that payment obligation

before the deadline. Going forward, the Company has a number of short and long-

term, dilutive and non-dilutive funding options for consideration as it progresses

through feasibility study toward a decision to mine.

1. Internal Capacity – The Company recently reset its equity issuance capacity with

25% still available. Under current SOI (389M) the Company could place ~97M

shares, which at current prices would raise ~A$10M in additional working capital

2. Equity Issue (Placement/Note) – further placements could be made to new &

existing shareholders, in particular major holders: Regis, CRG and/or Greenmount

3. Debt-funding – with a more holistic approach this option may prove attractive for

the completion of resource development drilling and feasibility study, and the

financing of mining and mill construction

4. Madagascar Asset Sale - the Company has announced that these assets are to be

monetised, including a key piece of real estate in the centre of the capital,

Antananarivo. The Company has valued these assets at around A$4.9M

At December 31 2015, Capricorn Metals had a cash balance of A$650,552 with a further

A$1.5M banked following a placement in February 2016.

Native Title

There is no outstanding heritage or environmental issues over Karlawinda with

Capricorn having already commenced the Mining Lease application process with just

one Native Title claimant.

Clawback

Under the terms of the original sale agreement between WMC (BHP-Billiton) and IGO,

BHP-Billiton retain a 2% Net Smelter Return with a claw-back provision whereby BHPB

can elect to acquire a 70% equity in the project only if JORC compliant resources of

5,000,000 ounces of gold and/or 120,000 tonnes of contained nickel have been

delineated. Any likely acquisition would be priced at 3x cost.


SWOT ANALYSIS

STRENGTHS

• Dig-ready project with

defined resources

Previous IGO Scoping Study confirmed gold resource

potential with substantial upside

• Straightforward mining

operation

Geological setting means simple open pit mining with low

strip ratio and simple processing flowsheet

• Location Proximity to infrastructure and skilled workforce

enhance cost efficiencies & cash flow potential

WEAKNESSES

• Current resource Present resource is 100% Inferred only. Timely resource

upgrade in quality & extent is critical. Lower grade –

higher tonnage operation could impact margins at lower

A$ gold prices. More ounces, preferably at higher grade,

will improve economics

• Native Title Native Tile agreement covering the Karlawinda Project is

yet to be signed off

• Process plant Currently no on-site treatment facilities with a suitable

plant required to be sourced or built and financed

OPPORTUNITIES

• Regional exploration Exploration work has identified a number of untested

anomalies beyond Bibra with 1Moz+ potential which

could lead to a new previously unrecognised gold camp

• Madagascan land sale Any sale at current estimated value (A$4.9M) would

alleviate need to source funding externally to complete

Karlawinda acquisition and fund drilling program

• M&A/Corporate activity Gold and gold producers are currently very much the

focus for resource investors

THREATS

• Madagascan land sale Protracted sale process could deny significant source of

future resource development funds and the need to go

back to the market or existing shareholders

• A$ gold price collapse Low grade-high tonnage operation increases

vulnerability to fluctuations in A$ gold price

• Ongoing funding risk As with most in the resources sector access to ongoing

funding is challenging. CMM has to strike right balance for

shareholders between dilution and project realisation


New gold province in WA

“Iron Ore Country”

No material work has

been undertaken from

2013 to now

PROJECTS - GOLD

KARLAWINDA GOLD PROJECT (Western Australia; CMM: 100%)

The Karlawinda Gold Project is located in the Pilbara Region of Western Australia,

approximately 65km from the township of Newman, and is surrounded by some of the

world’s largest iron ore mines. The Project area comprises 6 tenements (covering an

area of ~400km².and contains the highly prospective Bibra Gold Deposit and the highly

endowed Francopan Gold Prospect, along with a number of high quality target areas

and excellent regional gold potential.

FIGURE 4. KARLAWINDA PROJECT

Source: Independence Group

Background

Originally discovered by WMC (later acquired by BHP-Billiton in the takeover of WMC)

in 2005, the Project was acquired by Independence Group in 2008 who then embarked

on a comprehensive drilling and exploration program resulting in the discovery of the

Bibra Gold Deposit in 2009.

IGO completed a Feasibility Study in 2012 after delineating Inferred Resources of more

than 650,000oz of gold at Bibra. In 2013, IGO chose to sell its interest in Karlawinda

writing down almost A$17M in acquisition, exploration and study costs after

consideration in the prevailing gold price environment that the project’s then defined

resource “no longer meets internal metrics for development”. No material work has

been undertaken on the project from 2013 to date.

On 26th October 2015, Capricorn Metals (previously as Malagasy Minerals) announced

it had executed a Heads of Agreement (HOA) with Greenmount Resources Pty Ltd, an

entity company specifically established by private resources investment company,

Centrepeak Resources Group (CRG) to acquire the Karlawinda Gold Project from IGO

encompassing the Bibra Gold Deposit and Francopan Gold Prospect.


CRG holds 19.1% interest

in CMM

Regis hold 9.9% interest

in CMM

Inferred resource of

~650koz of gold

Current drilling program

has identified strong

continuity of

mineralisation outside

the current known

resource

Updated resource

statement is expected in

June 2016

CRG is managed by a highly experienced team of geoscientists and holds a 19.1% direct

interest in Capricorn Metals Ltd. The deal to acquire 100% of Karlawinda was finalised

in February 2016 with Greenmount paying the first instalment (undisclosed

amount)with a further instalment of A$1.5M due by mid-August 2016.

ASX-listed Australian gold mining company Regis Resources Limited (ASX: RRL) has

subsequently acquired a 9.9% interest in Capricorn Metals as part of a A$1.5M capital

raising to fund further evaluation of the Bibra deposit.

FIGURE 5. KARLAWINDA TIMELINE

2008

IGO purchase

Karlawinda

project from

BHPB

(following

their takeover

of WMC) for

$4M

2009

Bibra

Prospect

discovered by

IGO following

regional

surface

geochemical

program

2009-2012

$12M

invested in

drilling &

mining

studies at

Bibra by IGO,

outlining an

Inferred

Resource of

650,800oz at

Bibra

2015

Greenmount

(with CRG as

major

shareholder)

acquire the

project for

further

exploration &

development

2016

CMM acquires

Greenmount,

completes

$1.5M capital

raising and

commences

Scoping Study

Source: Centrepeak Resources

Resources

The Karlawinda Project currently contains a JORC 2012 compliant Inferred resource of

650,800 ounces of gold (18Mt @ 1.1g/t Au) within the Bibra deposit that was drilled by

IGO from 2009-2012. The known resource sits entirely within a (3-stage) open pit shell

(see Figure 7) designed by Cube Consulting using a gold price of A$1600/oz.

FIGURE 6. BIBRA GOLD DEPOSIT – 2014 MINERAL RESOURCE ESTIMATES

Tonnes (M) g/t Au Oz

Laterite 2.1 1.2 82,900

Upper Saprolite 0.8 0.9 21,700

Lower Saprolite 2.3 1.2 88,900

Transitional 1.3 1.1 46,800

Sub-Total 6.5 1.1 240,300

Fresh 11.5 1.1 410,500

TOTAL INFERRED 18.0 1.1 650,800

Mineral Resource estimate by Independence Gold (IGO) used A$1600/oz gold price & 0.5g/t Au cut-off grade



Experienced Project

Manager appointed to

oversee drilling &

Feasibility Study program

New drilling results from

shallow hanging-wall

mineralisation have the

potential to significantly

improve project

economics

Close to significant

infrastructure

CIP/CIL/Heap leach

treatment capability

The 240,000 ounces contained in oxide and transitional material should assist with

initial production ramp-up and with capex payback requirements. The thickness and

continuity of the main mineralised lode at Bibra, and its shallow 30o dip, make Bibra an

attractive mining proposition.

In 2013, IGO stated “Reverse Circulation (RC) and diamond drilling during the year

focused on infill and extensional drilling at the Bibra deposit. Diamond drill holes (tails)

were also used to provide geotechnical information and samples for metallurgical test

work as part of the Scoping Study”. IGO found results from infill drilling were in line

with previous results.

Capricorn Metals is currently drilling toward an upgrade to the gold resource and

completion of a Scoping Study on the commercial development potential of the project

by June-July 2016. It has appointed an experienced Project Manager, Neville Bergin, to

oversee the scoping and feasibility study program.

FIGURE 7. BIBRA GOLD DEPOSIT – SCHEMATIC CROSS SECTION (199950N)


Approximately A$12M has previously been spent on the project with good quality initial

technical studies conducted on the mineral resource (Optiro); mining concepts (Cube

Consulting); and metallurgy and process plant design (GR Engineering & Lakefield

Oretest): as well as geotechnical, hydrology, environmental and ethnography.

Logistics

Karlawinda is favourably positioned close to significant infrastructure: Major town,

airport, sealed roads, major highway, and fresh water. The Pilbara-Goldfields Gas

Pipeline is located 50km to the west of the main project area.

Mining studies highlight a large 3-stage open pit with maximum depth of 230m and a

life-of-mine strip ratio (waste-to-ore) of 4:1.


On-site processing with

2-2.5Mtpa capacity

DIDO workforce cost

savings

New drilling has

identified high grade

intersections outside of

current resource

envelope and suggest

possible higher grade

mineralised core

Archean-age orogenic-

style gold deposits

Mineralisation is open in

all directions

Previous work by IGO found the metallurgy of Bibra was amenable to CIP/CIL and Heap

Leach treatment with the intention to build a processing plant on site with an annual

capacity of 2 to 2.5 Million tonnes a year for at least seven years, suggesting annual

production of around 80-100,000 ounces.

While there is currently no shortage of suitable secondhand process plants available in

Australia, Capricorn is likely to seek guidance and input from major shareholder Regis

Resources, who have successfully built and commissioned a number of high tonnage-

low grade processing plants as part of their Duketon Gold Project near Laverton.

Workforce Drive-In-Drive-Out of nearby Newman township may be the preferable

option over the expense of establishing a camp and support facilities on-site.

FIGURE 8. BIBRA GOLD DEPOSIT - SCHEMATIC CROSS SECTION (200000N)


Geology

Bibra and the associated deposit Francopan (which was the initial interest of IGO) are

Archaean-aged orogenic-style gold deposits. Both are hosted within a thick, flat-lying

gold mineralised greenstone belt which is amenable to low-cost open pit mining with

free-dig capability down to around 55m (37% of total known resource to date).

Gold mineralisation at Bibra has been identified near surface, in the weathered laterites

and oxide zones and at depth within the fresh sandstone. The deposit remains open in

easterly down-plunge positions and potential exists for strike extensions and as yet

unidentified stacked mineralised lodes at depth.

Gold is present in metamorphosed sandstones and is primarily associated with a

biotite-albite-pyrite-K+spar-calcite alteration assemblage known as the Biotite Zone.

Marginal to the Biotite Zone, chlorite-calcite-biotite assemblages with trace pyrite

grade into chlorite-biotite-garnet. The Biotite Zone is over 70m wide and is pervasive.


Drilling at depth has

revealed potential for

high-grade core

mineralisation

Primary gold mineralisation in fresh rock is marked by 3-10% sulphides, magnetite

grains, quartz vein/veinlets and fine grained gold. Mineralisation in fresh rock

continues to near surface in the oxide zone and includes a laterally extensive supergene

horizon that is hosted within a laterite.

There are no historical gold workings in the area and this was considered a significant

greenfields discovery in a “new gold province” by IGO in 2009, who further described

Bibra as having a similar geological setting to its jointly-owned Tropicana Gold Project

north-east of Kalgoorlie.

Francopan

Francopan Gold Prospect is located approximately 5km south east of the Bibra Gold

Deposit. Mineralisation is covered by the younger, Proterozoic-aged sedimentary rocks

along the northern margin of the Bangemall Basin.

FIGURE 9. FRANCOPAN GOLD PROSPECT

Source: Capricorn Metals/ Independence Group

Limited drilling undertaken on the prospect by IGO showed beneath the cover

sequence there were broad zones of mineralisation containing narrower higher-grade

intervals. Some holes have intersected a second, deeper mineralised sequence,

including zones of 81m @ 1.2g/t Au (includes 15m @ 3g/t Au) and 37m @ 1.9g/t Au.

Further Investigative drilling at Francopan will be targeted to define the size and

possible connectivity with the mineralised system at Bibra and to identify high-grade

areas that can be assessed for underground mining opportunities.


Number of untested

regional anomalies with

potential for hosting

+1Moz

Company seeking

expressions of interest to

sell Madagascar

commercial property

Regional Exploration

The Karlawinda Project remains largely unexplored with only limited reconnaissance

work (aircore drilling, surface geochemistry, some minor geophysics) having been

completed.

The Company has identified a number of untested anomalies, including K3, for follow-

up regional exploration drilling with the potential for a hosting more large-scale

(+1Moz) mineralised system within the project area.

FIGURE 10. REGIONAL EXPLORATION


GRAPHITE ASSETS & COMMERCIAL REAL ESTATE, MADAGASCAR

As Malagasy Minerals, the Company held interests in a number of low grade flake

graphite projects in Madagascar.

Through a subsidiary company, St Denis Holdings SARL, Capricorn Metals also owns a

block of real estate in the centre of Antananarivo, the capital of Madagascar covering

19,000m2 (5 acres) and previously occupied by BRGM, the French Geological Bureau.

The property has commercial zoning and includes the Company’s Madagascar offices,

as well as other offices and houses which currently provide nominal rental income. The

potential of the land lies in development for a range of residential, commercial or

industrial possibilities. The Company is seeking expressions of interest for the sale of

the land which has an estimated present value of around A$4.9M.

The Company’s Madagascan interests are to be divested with proceeds from the sale

likely to be directed toward further exploration, resource development and feasibility

study work at Karlawinda.

Bibra Deposit

K3 Prospect

Francopan


On a 100% Inferred JORC

resource EV/Resource Oz

= $80

Project capex forecast =

A$100M

Each additional year of

production at Bibra adds

~A$20M to our valuation

Bibra valuation =

A$103M (NPV20)

VALUATION

CMM FPO + escrow

Price (11/04/16) A$ 0.14

171.6M shares held by

Greenmount & escrowed

until February 3 2017

SOI M 388.7

Market Cap A$M 54.4

Cash A$M 2.15

Enterprise Value A$M 52.25

EV/Resource Ounce A$/oz Au 80

FIGURE 11. PROJECT ASSUMPTIONS

AUDUSD (x) 0.7250

Current gold spot prices are

trading above 12-month

average

BHP has 2% net smelter

royalty

US$ Gold ($/oz) 1,200

A$ Gold ($/oz) 1,655

WA Royalty 2.5%

Third Party Royalty 2.0%

Initial WACC (Discount Rate) 20.0%

Source: Gordon Capital estimates

FIGURE 12. PROJECT SNAPSHOT

Karlawinda - Bibra

Location Pilbara, WA With a likely project capex

requirement - inclusive of

working capital, BFS &

contingencies - of around

A$100M we have assumed

a 65:35 (debt-to-equity)

funding model to develop

the Bibra Project.

Sensitivity

Every year of open pit mine

life beyond current

resource at comparable

head grade adds ~A$20M

to our valuation.

AISC

= C1 cash costs

+ Corporate

+ Sustaining capex

+ D&A

+ Royalties

Interest 100%

Mineral Resources (Inferred) 650koz

Strip ratio 4:1

Mine Type Open Pit

Plant Configuration Gravity/CIL

Capex (including BFS & contingencies) A$100M

Mill Throughput 2.0-2.5 Mtpa

Average Head Grade 1.1 g/t Au

Recovery 91-93%

Production 80-100koz/yr

Mine life (Minimum) 7 years

C1 Cash Costs (LOM) A$773/oz

All-In-Sustaining-Cost (LOM) A$858/oz

NPV20 (Net Present Value) A$103M

Source: Capricorn Metals, Gordon Capital Estimates


As expected grade has

the most +ve impact on

valuation metrics with a

65% uplift in annual cash

flow at 1.5g/t average

head grade

FIGURE 13. PROJECT SENSITIVITIES (Single variable scenario)

Karlawinda - Bibra

BASE CASE

VARIABLE

Cash flow

impact

AUDUSD x 0.7250 Scenario 1 lower AUDUSD 0.6000 +38%

Gold Price US$ /oz 1,200 Scenario 2 higher US$ gold price 1,500 +45%

Throughput tonnes 2,500,000 Scenario 3 bigger throughput 3,000,000 +21%

Grade g/t Au 1.10 Scenario 4 higher average grade 1.50 +66%

Recovery % 93.0 Scenario 5 higher recovery 95.0 +4%

Production oz 82,225 NOTES

Base Case = Annual Basis at Nameplate Capacity

All non-variable inputs fixed to Base Case AISC A$/oz 854

Revenue A$M 136.1

Cashflow A$M 52.7

Source: Capricorn Metals, Gordon Capital Estimates

FIGURE 14. AUDUSD + A$ GOLD PRICE (Jan 2014 – Apr 2016)

Source: investing.com

Movements: Jan 2014 – Apr 2016 Averages: Apr 2015 – Apr 2016

AUDUSD US$/oz A$/oz AUDUSD US$/oz A$/oz

High 0.9504 1391.40 1755.38 1M 0.748 1244.62 1664.53

Low 0.6824 1046.20 1329.17 3M 0.722 1180.76 1635.59

Avg 0.8159 1209.53 1490.38 6M 0.721 1142.46 1585.13

12M 0.737 1150.96 1563.13

Source: investing.com

0.600

0.650

0.700

0.750

0.800

0.850

0.900

0.950

1.000

1000

1100

1200

1300

1400

1500

1600

1700

1800

AUDUSDA$/oz A$ Gold Price + AUDUSD

A$/oz

AUDUSD


Near-term production

capability

Right location, resource,

team

OUTLOOK

Amid the currently bleak landscape for Australian resource companies, it is encouraging

that some greenshoots are finally emerging. Interest in the Australian gold sector is

also increasing despite price concerns in other commodities.

Investors seeking near-term production opportunities with plenty of resource

expansion potential and exploration upside should consider Capricorn Metals.

Since emerging out of the largely overlooked and ignored Malagasy Minerals in late

2015, Capricorn has set about finishing the job of developing a profitable mine at Bibra

that started with its discovery back in 2009. With the right location, right resource and

right team in place Karlawinda is going for gold.



DIRECTORS & MANAGEMENT

Guy LeClezio BA

CHAIRMAN & NON-EXECUTIVE DIRECTOR

Mr LeClezio holds a Bachelor of Arts from the University of Western Australia. He has

20 years experience in the mining and exploration industry and was an Executive

Director of Eyres Reed Ltd and Canadian Imperial Bank of Commerce who were leading

Western Australian stockbrokers specialising in the mining industry.

Peter Thompson B.Sc, M.Sc, MAusIMM

MANAGING DIRECTOR

Mr Thompson trained as a geologist in Trinity College Dublin and Leicester University,

he came to Australia in 1988 and has had a continuous career in exploration and mining

for gold, nickel and copper.

Employed by WMC, Anaconda Nickel, Jubilee Mines, St Barbara Ltd, Beaconsfield Gold

and Central Asia Resources in a range of roles, and overseen several discoveries, project

developments, feasibility studies, acquisitions, divestments and company start-ups.

Recent responsibilities as CEO of Beaconsfield Resources and Central Asia Resources

have been for operating deep underground gold and heap leach start-up operations.

Currently a non-executive director of Central Asia Resources Ltd & Marmota Energy Ltd.

Peter Langworthy B.Sc Hons, MAusIMM

TECHNICAL DIRECTOR

Mr Langworthy is a geologist with a career spanning 26 years in mineral exploration and

project development in Australia and Indonesia. He has specific expertise in building

successful teams that have been responsible for significant mineral discoveries and in

integrating technically sound exploration and resource development strategies into

corporate planning.

His industry experience includes 12 years in senior management roles with WMC

Resources, four years with PacMIn Mining as Exploration Manager, five years with

Jubilee Mines where he built the team responsible for numerous discoveries at the

Cosmos Nickel Mine and the Sinclair nickel project, and three years with Talisman

Mining as Technical Director. At Jubilee he was part of the corporate team responsible

for the growth of the company until it was taken over by Xstrata for $23/share.

Mr Langworthy is a non-executive chairman of Syndicated Metals Limited (March 2012

to present).


Heath Hellewell B.Sc Hons, MAIG

NON-EXECUTIVE DIRECTOR

Mr Hellewell is an exploration geologist with over 22 years of experience in gold, base

metals and diamond exploration predominantly in Australia and West Africa. Mr

Hellewell has previously held senior exploration positions with a number of successful

mining and exploration groups including DeBeers Australia Pty Ltd, Resolute Mining

Limited and Independence Group NL. Mr Hellewell ultimately rose to the position of

Exploration Manager at Independence Group.

Most recently he was the co-founding Executive Director of Doray Minerals Limited.

Following the discovery of the Andy Well gold deposits in 2010, Doray Minerals was

named “Gold Explorer of the Year” in 2011 by The Gold Mining Journal and in 2014

Heath was the co-winner of the prestigious AMEC “Prospector of the Year” award.

Mr Hellewell is currently an independent Non-Executive Director of Core Exploration

Ltd (ASX: CXO) and Duketon Mining Limited (ASX: DKM).

Neville Bergin

PROJECT STUDY MANAGER

Mr Bergin, runs his own mining consultancy, Neville Bergin & Associates, is a mining

engineer with extensive experience in feasibility studies, risk analysis, project approvals

and the operation of open pit and underground mines throughout Australia.

His experience and achievements include: Responsibility for the establishment and

construction of the Waihi Gold open pit, New Zealand; Rosebery Deeps Feasibility Study

and implementation; Resident Manager at the Fosterville Gold Mine, Victoria; Resident

manager then GM Operations at Jubilee Mines NL; Head of Operations, Australia for

Gold Fields (St Ives and Agnew Gold operations) and Feasibility Study Manager for

Minemakers Ltd’s Wonarah Phosphate Project, NT. Neville was previously non-

executive director of Northern Star Resources Ltd and BCD Resources Ltd.

FINANCIALS

NOTE: With Capricorn Metals recently acquiring the Karlawinda Gold Project and

transitioning its business towards gold, previous Company historical financial

information is not reflective of its current corporate position or future strategic plans.

This section will be updated as a more relevant account of the Company’s financials

becomes available.


~56% free float

Greenmount shares held

in escrow to Feb 2017

CAPITAL STRUCTURE

As of 29 February 2016, Capricorn Metals Ltd

(ASX: CMM) had 388,727,498 fully paid shares

listed on the Australian Stock Exchange

including 171,636,476 escrowed shares (44.2%

interest) held by Greenmount Resources Pty

Ltd. Directors & Management control 13.7%

with existing Malagasy Minerals shareholders

controlling 44% of issued capital. Free float is 56%.

Twenty Largest Shareholders Number of

Ordinary Shares

Issued

Shares %

Centrepeak Resources Group Pty Ltd 74,221,378 19.09

Regis Resources Ltd 38,484,022 9.90

Nedlands Nominees Pty Ltd 28,536,277 7.34

Ellenbrook Investments Pty Ltd 17,671,673 4.55

Running Water Ltd & Associates 16,444,276 4.23

Resources Discovery Pty Ltd 16,135,322 4.15

Harmanis Holdings Pty Ltd 13,605,462 3.50

Bradley James Drabsch 12,684,910 3.26

Nefco Nominees Pty Ltd 8,578,435 2.21

Jules Leclezio 7,999,001 2.06

Peter Thompson 6,279,974 1.62

Quantum Holdings Pty Ltd 6,120,339 1.57

Magaurite Pty Ltd 5,570,000 1.43

Omni Geox Pty Ltd 5,104,903 1.31

HSBC Custody Nominees Aust Ltd 3,875,100 1.00

Richard M & K R Bennett 3,815,010 0.98

Rene Legoll 3,750,000 0.96

Z Wang Harvey & L Q Chen 3,149,622 0.81

JP Morgan Aust Ltd 3,032,124 0.78

Robert Hastings Smythe 2,900,000 0.75

TOTAL 277,957,828 71.50


SHARES

CMM ORDINARY SHARES 217,091,022

CMM ORDINARY SHARES (ESCROW TO 03/02/2017) – held by Greenmount 171,636,476

388,727,498

UNLISTED OPTIONS

CMMAK $0.15 OPTIONS (EXPIRY 30/11/2016) 7,500,000

7,500,000



RECENT EVENTS

13 Apr 16 Karlawinda Drill Results

17 Mar 16 Notice of General Meeting/Proxy Form

14 Mar 16 Half Year Accounts

03 Mar 16 Capricorn Website Launch

01 Mar 16 Drilling commences at Karlawinda Gold Project

18 Feb 16 Appointment of Project Manager

12 Feb 16 Investor Presentation

10 Feb 16 Change of ASX Code to CMM

04 Feb 16 Karlawinda Fast Track Program

03 Feb 16 Director appointment and resignation

03 Feb 16 Graphite Trenching Results

29 Jan 16 Quarterly Activities and Cash flow Report

29 Jan 16 Transaction Update

08 Dec 15 Share Placement to Raise $1.5m

04 Dec 15 Acquisition Update

26 Nov 15 Presentation to Shareholders

06 Nov 15 Acquisition Update and Clarification

30 Oct 15 Quarterly Activities and Cash flow Report

26 Oct 15 Malagasy acquires Karlawinda Gold Project

30 Sep 15 Annual Report to shareholders


GENERAL ADVICE WARNING: The information contained in this Report is only of a general nature and does not

constitute personal financial product advice. In preparing the advice no account was taken of the objectives,

financial situation or needs of any particular person. Therefore, before acting on the advice readers should

consider the appropriateness of the advice with regard to their particular objectives, financial situation and

needs. Readers should obtain and consider any relevant Product Disclosure Statements before making any

decisions about the subject matter of this Report and should seek independent professional advice.

DISCLAIMER: Although every attempt has been made to verify the accuracy of information contained in this

Report, Gordon Capital Pty Ltd (Gordon Capital) and InterPrac Financial Planning Pty Ltd (InterPrac) make no

warranties about the accuracy or completeness of any advice or information. The officers, agents, related

affiliates, related body corporate and employees of Gordon Capital and InterPrac accept no liability for any loss or

damage whatsoever arising from any investment decisions or use of the information or advice in this Report. All

information and advice contained in the Report are subject to change without notice.

All investment decisions are subject to risks. Past performance should not be taken as an indication of future

performance. Any ‘forward looking statements’ contained in this Report are based on current expectations about

future events. Words such as “anticipate”, “believe”, “expect”, “project”, “forecast”, “estimate”, “likely”,

“intend”, “should”, “could”, “may”, “target”, “plan” may identify forward looking statements. Such forward

looking statements are based on views held at the date of publication of this Report and are not guarantees as to

future events. Forward looking statements are subject to risks, uncertainties and other factors beyond the

control of Gordon or InterPrac. Therefore, actual results may differ from those referred to in such statements.

DISCLOSURE: This publication has been prepared by Gordon Capital Pty Ltd, as Authorised Representative of

InterPrac Financial Planning Pty Ltd, Australian Financial Services Licence No. 246638. The registered office of

InterPrac Financial Planning Pty Ltd is Level 3, 29-33 Palmerston Crs, South Melbourne, VIC 3205.

Please note that Gordon Capital has been retained by CAPRICORN METALS LTD to provide this report for a fixed

fee. Gordon Capital does not provide specific investment recommendations and does not receive any additional

benefit for the provision of this report. Gordon Capital aims to provide a balanced and objective analysis in this

report.

Stuart Glazebrook, the analyst responsible for this report, does not receive any indirect benefits or assistance

from Capricorn Metals Ltd. Our remuneration is not linked to the views expressed in this report.

Please see our Analyst Qualifications and Financial Services Guide, available at www.gordoncapital.com.au or by

calling +613 9607 1371 for further information.

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