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 100% owned Cozamin copper-silver-zinc-lead mine located in Zacatecas State, Mexico. Our objective is to become an intermediate player in the base metals sector in the Americas.

The Cozamin mine has started an expansion to 3,000 tpd or approximately 1 million tpy, a 36% increase in production. This expansion is expected to be completed by Q4/2008.

HIGHLIGHTS

• Capable of generating +$60 million in free cash flow in 2008 (at current metal prices).
• Silver exposure through the ownership of 26.7 million shares (22%) of Silverstone Resources Corp.
• No debt.

Current Operations

COZAMIN MINE
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. 

2008 Cozamin Mine Expansion Capstone has started the expansion of the Cozamin mine from the current rate of 2,200 tonnes per day (“tpd”) or 750,000 tonnes per year (“tpy”) to 3,000 tpd or approximately 1 million tpy, a 36% increase in production. This expansion is expected to be completed by September 2008.

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

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

Geographical Spread

Mexico

Board of Directors and Key Management

Darren Pylot	President & CEO, Director
Hugh Willson	VP of Exploration
Robert Barnes	VP of Operations, Director
Jason Howe	CFO
John Wright	Business Development
Jack Marr	Independent Director
Tony Chan	Independent Director
Ken R. Thorsen	Independent Director
Sarah Kennedy	Secretary

Company Address Suite 1980-1055 West Hastings St. Vancouver, British Columbia, Canada V6E 2E9 Telephone: +1 (604) 684-8894 Facsimile: +1 (604) 688-2180 Email: info[at]capstonemining.com Website: http://www.capstonemining.com

Additional Address/Key Contact Mexican Office: Capstone Mining S.A. de C.V. Privada Loma Baja No. 101 Fracc. Loma C.P. 98068 Zacatecas, ZAC México

Capital As of August 1st 2008 Shares Outstanding: 82.4 million Fully Diluted Share Capital: 89.1 million

Annual General Meeting Canada

Year End 31 December

Nominated Brokers John Kiernan at PI Financial Corp. 604.664.3682

Related News

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
10/07/07 - Capstone Mining Builds Solid Production Base Before Launching Into Acquisitions

Most Recent Statement

26/11/08 - Capstone Reports Minto Mine Connected to Yukon Electrical Grid
07/11/08 - Capstone Reports Financial Results for the Third Quarter
29/10/08 - Capstone Announces Production and Sales for the Third Quarter of 2008
28/10/08 - Capstone Announces Production and Sales for the Third Quarter of 2008
10/10/08 - Sherwood and Capstone Sign Combination Agreement
09/09/08 - Capstone & Sherwood Announce Combination to Create Intermediate Copper Producer