CAPITAN SILVER CORP. (TSXV: CAPT) ("Capitan" or the "Company") is pleased to announce it has closed its private placement (the "Private Placement") of common shares (each a "Share"). The Private Placement was over-subscribed with the Company issuing 13,466,667 Shares at a price of C$0.15 per Share for gross proceeds of C$2,020,000.00.

The financing was led by a strategic investment from Construplan (Construcciones Planificadas, S.A.), who upon closing of the transaction will own 9.92% of the Company. In addition to the investment from Construplan, Capitan received strong support from its largest shareholders including Michael Gentile, CFA, who upon closing will own 16.66% of the company. In total, management and insiders accounted for approximately 13.4% of the financing.

Capitan intends to use the net proceeds from the Private Placement to continue to advance the Cruz de Plata gold-silver project, evaluate potential acquisitions as well as to fund working capital and general corporate expenses.

Certain insiders of the Company acquired an aggregate of 1,800,000 Common Shares in the Private Placement. Any participation by insiders in the Offering constitutes a "related party transaction" as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). However, the Company expects such insider participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the fair market value of the Common Shares subscribed for by the insiders, nor the consideration for the Common Shares paid by such insiders, would not exceed 25% of the Company's market capitalization. There are no material facts or material changes regarding the Company that have not been generally disclosed.

Closing of the Private Placement is subject to certain customary conditions, including, but not limited to, the receipt of all necessary regulatory approvals and acceptance of the TSX Venture Exchange. All securities issued under the Private Placement will be subject to a statutory hold period expiring August 20, 2024. The Company did not pay any finders fees with respect to this Private Placement.

This press release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the 1933 Act and applicable state securities laws or an exemption from such registration is available.

About Construplan (Construcciones Planificadas, S.A.)

Construplan is one of Mexico's largest privately held construction and project management firms, established in Hermosillo, Sonora in 1980. The firm initially focused on urban infrastructure projects and later expanded into other major industrial construction opportunities in the mining, energy, automotive and beverage sectors. Today, Construplan is well positioned as a leading contract mining service and construction supplier to the mining sector in Mexico, working with some of the largest miners and highest profile mining projects in the country. The company is distinguished by the quality of their people and the services they provide.

About Michael Gentile, CFA

From 2003 to 2018 he worked as a professional money manager at Formula Growth Ltd., an independent investment management firm established in Montreal in 1960 with a long-term track record of creating investor wealth. While at Formula Growth, Mr. Gentile's main sector focuses were in mining and natural resources. In 2012, he became the co-manager of the Formula Growth Alpha Fund, a market neutral hedge fund focused on small to mid-cap equities. Throughout his career at Formula Growth, Michael was an early-stage investor in very successful mining and natural resource investments returning multiples of their original investments for their investors. In October 2018, Mr. Gentile retired from full time money management in order to be able to spend more time with his family.

About Capitan Silver Corp.

Capitan Silver is a well-funded junior exploration company focused on its 100% owned gold and silver Cruz de Plata Project in Durango, Mexico. The Company is led by a management team that has successfully advanced and developed several gold and silver operations in Mexico over the past 16 years.

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

ON BEHALF OF CAPITAN SILVER CORP.

"Alberto Orozco"

Alberto Orozco, CEO

For additional information contact:

Alberto Orozco
CEO
Capitan Silver Corp.
info@capitansilver.com
Phone: (78) 327-6671
Fax: (778) 327-6675
Web: www.capitansilver.com

Raffi Elmajian
Corporate Communications
Capitan Silver Corp.
info@capitansilver.com
Phone: (778) 327-6671
Web: 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.

Not for distribution to United States newswire services or for dissemination in the United States.

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