Company Information for Capstone Mining Corp

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Company Statement

Capstone Mining Corp. is a publicly traded Canadian mining company with a primary focus to operate, expand and explore the company's two producing Copper mines; the 100% owned Cozamin copper-silver-zinc-lead mine located in Zacatecas State, Mexico and the 100% owned Minto copper-gold mine in the Yukon, Canada.

Capstone is included in the S&P/TSX Global Mining Index.

Highlights

• Building a mid-tier copper producer focused in the Americas
• Two operating copper mines - forecast to produce up to 105M lbs of copper in 2009
• High grade & low cost - forecast total cash costs of ~ US $1.00/lb this year
• Significant by-products of gold, silver, lead & zinc
• Track record of expanding resources and production
• Strong organic growth potential - Significant resource growth supporting staged mill expansions at the Cozamin mine (Mexico) & the Minto mine (Yukon)
• Additional high grade copper development project - Kutcho (British Columbia)
• Financial strength to support M&A transactions, and ability to generate profits throughout commodity price cycle
• Strong management team with a proven ability to deliver

Current Operations

The Minto Mine – Producing Copper & Gold in Yukon, Canada
The high grade Minto copper-gold mine in Yukon, Canada, was built on budget and ahead of schedule. Commercial production commenced on October 1, 2007. The mill was expanded by 50% in late 2007 and by a further 33% in late 2008. The Minto Mine is one of the highest grade open pit copper-gold mines in the world, and is forecast to continue to be a low cost producer. Annual production is forecast to average 50-60 million pounds of copper, 20-25,000 ounces of gold and 250-300,000 ounces of silver during its first several years of operation. Forward sales of copper have been completed for approximately 50% of the next three years production, securing substantial revenues. Based on 2006 drilling, reserves were increased 40%. In 2007/08, three new deposits were discovered and defined, which could result in substantially increased resources, reserves and production, once fully assessed. Yet another discovery was made in early 2009.

The Cozamin Mine – Producing Copper, Zinc, Lead and Silver in Zacatecas, Mexico
The Cozamin project is a polymetallic (copper, silver, lead, zinc) mine located 3.8 km north-northwest of Zacatecas City in the mineral-rich state of Zacatecas, Mexico.  The property covers approximately 2,020 hectares in the Zacatecas Mining District and lies at 2,450m above sea level. 

Capstone's completed exploration, development and initial production of 350,000 tpy on time and under budget. Within 12 months of initial production, Capstone expanded production by 120% (750,000 tpy) at a cost of US$13 million - capex funded from cash flow.

Capstone has started the expansion of the Cozamin mine from the current rate of 2,200 tpd or 750,000 tpy to 3,000 tpd or approximately 1 million tpy – 36% increase in production. With the latest expansion we are on track to produce in excess of 30 million pounds of copper, 9 million pounds of zinc, and 5.1 million pounds of lead and 1.3 million ounces of silver in 2008.

The 2009 forecast at full capacity is in excess of 40 million pounds of copper.

Mexico's geopolitically stable environment and membership in NAFTA provide a secure operating environment for the project.  The location of the Cozamin mine is also ideal because of its proximity to Zacatecas City, excellent logistics, roads, power, and water access available at the mine site.  In addition, the local residents of Zacatecas have a strong mining tradition, providing the project with a knowledgeable and skilled source of labour.

Ownership
Capstone has a 100% interest in the Cozamin mine.  A 3% Net Smelter Royalty is paid to Grupo Bacis on all metals produced.

Financial
Capstone has no project finance debt or long-term debt, and has a strong cash position.  Capstone owns 22% of Silverstone Resources Corp.

Exploration
Excellent possibilities exist for finding additional mineralization at Cozamin because the Mala Noche vein has only been partially exploited and not systematically explored to depth.  Capstone's deepest holes in the Mala Noche vein indicated that the copper-silver phase of mineralization extends to greater depths.

The current resources are contained within a 1.5 km strike length of the 5 km long Mala Noche vein that the company controls.
Objectives

• Optimize throughput and recovery.
• Explore along strike and down dip of the reserve/resource base.
  Infill drill to upgrade inferred resources.
• Aggressively looking for potential acquisitions.

Geographical Spread

Mexico & Canada

Board of Directors and Key Management

Colin K. Benner	Chairman
Darren Pylot, Vice-Chairman	CEO & Director
Stephen Quin, P.Geo, President	COO & Director
Richard Godfrey	Chief Financial Officer
Hugh Willson, M.Sc, P.Geo	Vice President Exploration - Mexico
Brad Mercer, P.Geo	Vice President Exploration - Canada
Robert Barnes, B.Sc, MBA, P.Eng	Vice President Operations - Mexico
Kevin Weston	VP Operations - Canada
Jason Howe	CA, VP Finance
Peter T. Hemstead, CMA	Treasurer
John Wright, B.Sc, P.Eng	Director
Bruce McLeod, P.Eng	Director
Larry Bell	Director
George Brack	Director
Dale Peniuk	Director

Company Address Suite 900 - 999 West Hastings St. Vancouver, British Columbia, Canada V6C 2W2 Telephone: +1 (604) 684-8894 Facsimile: +1 (604) 688-2180 Email: info[at]capstonemining.com Website: http://www.capstonemining.com

Additional Address/Key Contact México Office (mailing address) Capstone Mining S.A. de C.V. Privada Loma Baja No. 101 Fracc. Loma C.P. 98068 Zacatecas, ZAC México Cozamin Mine Site Cerro de San Roberto Ejido Hacienda Nueva  Morelos, Zacatecas C.P. 98100 México Tel: 011.52.492.92.539.30 Email: info@capstonemining.com Minto Mine P.O. Box 33174 Whitehorse, Yukon Y1A 6S1 Canada Tel: 604.759.0860 Email: info@capstonemining.com

Capital Shares Outstanding; 196.1 million Warrants; 2.4 million Options; 12.9 million Fully Diluted; 243.9 million

Annual General Meeting Vancouver, Canada

Year End 31 December

Broker/Analyst Reports

18/02/09 - Haywood February 18th 2009
18/02/09 - Genuity February 18th 2009
16/02/09 - Genuity February 16th 2009
06/02/09 - National Bank February 6th 2009
05/02/09 - Haywood February 5th, 2009
05/02/09 - Blackmont February 5th 2009

Related News

30/03/09 - Capstone Mining Is In Growth Mode, And Has A Potential New Relationship With Silver Wheaton
08/01/09 - Capstone Mining Motors On In The Copper Space, With A Strong Hedge Book Driving The Engine
02/10/08 - Capstone Mining And Sherwood Copper Merge To Fill The Mid-Tier Producer Void
24/04/08 - Capstone Is Already Pumping Out Cash, But Just Wait Until 2010

Most Recent Statement

11/06/09 - Capstone Reports Changes in Operations Management Structure
09/06/09 - Capstone Reports Significant Increase in Copper-Gold Mineral Resources at Minto Mine, Yukon
01/06/09 - Capstone Announces New Life-of-Mine Plan & Mineral Reserve for the Cozamin Copper Mine, Mexico
26/05/09 - Capstone Reports Final Phase 1, Drill Results - More High Gold Grades at Minto North
15/05/09 - Capstone Reports Strong First Quarter Results as Mining Operations Deliver Record Production
12/05/09 - Capstone Reports Exceptional Copper-Gold Grades at Minto North - Best Ever Drill Intercepts