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 September 2008.

HIGHLIGHTS

• Capable of generating +$60 million in free cash flow in 2008.
• 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.
2008-2009 Production Forecast

                                         2008F          2009F
Tonnes milled                    850,000      1,000,000
Copper (payable lbs)    30,000,000    40,000,000
Silver (payable ozs)        1,300,000      1,500,000
Zinc (payable lbs)           9,000,000    10,000,000
Lead (payable lbs)         5,100,000      5,000,000

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	Director
Tony Chan	Director
Ken R. Thorsen	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

Annual General Meeting Canada

Year End 31 December

Related News

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

29/04/08 - Capstone Reports Record Operating Profit Of $15.9 Million For The First Quarter
22/04/08 - Capstone To Release First Quarter Results On Tuesday April 29, 2008
28/02/08 - Four Month Stub Period Results
17/01/08 - Capstone Provides 2008 Expansion And Exploration Plans And Increases Production Forecasts For 2008 And 2009
10/01/08 - Capstone Highlights Production and Sales for the Four Months Ended
15/11/07 - Capstone Mining Year-End and Fourth Quarter Results