Capstone Reports Significant Increase in Copper-Gold Mineral Resources at Minto Mine, Yukon

<< 32% Increase in Contained Copper in the M&I Classes Provides Basis for Phase IV Expansion >>

Capstone Mining Corporation (CS: TSX) today announced the results of National Instrument 43-101 compliant mineral resource estimates for its high grade Minto copper-gold mine in Yukon, Canada. New mineral resource estimates were completed for the combined Area 2/Area 118 deposit, the Ridgetop deposit and the Minto North deposit and are current to today's date, while mineral resources and mineral reserves for the Minto Main deposit (current open pit) were adjusted to reflect mining activity up to December 31, 2008. These updated mineral resource estimates include results from almost all of the drilling conducted up to the end of April 2009, and will form the basis of Capstone's Phase IV expansion study for the Minto Mine.

The net result of successful 2008-09 exploration programs, including reductions due to two years of mining, and using a copper cut-off grade of 0.5% copper, is that the estimated measured and indicated mineral resource saw an increase of 32.4% in contained copper, 38.3% in contained gold and 28.1% in contained silver over the last consolidated mineral resource estimate, reported in early 2007. Since Capstone's acquisition of the Minto Project in 2005, total copper contained in all classes of mineral resource have increased a net 163%, gold 223% and silver 118%, even after mineral resource depletions from two years of mining. The updated mineral resource estimate for all deposits at the Minto Mine are tabulated below, are discussed by deposit in the sections following and are tabulated in detail at the end of this release.

    <<
           Minto Mine - Mineral Resources by Class for All Deposits
           --------------------------------------------------------
                         (at a 0.5% copper cut-off)
                         --------------------------

    -------------------------------------------------------------------------
                                                Contained Contained Contained
    Classification   Tonnes Copper Gold Silver     Cu        Gold     Silver
                    (000's)   (%) (g/t) (g/t)  (000s lbs) (000s oz) (000s oz)
                      *                          *        *       *
    -------------------------------------------------------------------------
    Measured (M)     14,062  1.39  0.51   5.1    432,049       230     2,289
    -------------------------------------------------------------------------
    Indicated (I)    15,808  1.06  0.42   3.9    368,444       212     1,984
    -------------------------------------------------------------------------
    Sub-total
     (M+I)(xx)       29,870  1.22  0.46   4.4    800,492       443     4,273
    -------------------------------------------------------------------------
    Additional
     Inferred         6,465  1.00  0.32   3.3    142,774        67       677
    -------------------------------------------------------------------------
    *  Rounded to nearest thousand
    (xx) Totals may not add exactly due to rounding
    >>

These mineral resources are reported inclusive of mineral reserves; mineral reserves are discussed below in the section "Minto Mine Mineral Reserve". Further changes in mineral reserves will be addressed in a Phase IV expansion study currently underway with SRK Consulting (Canada) Inc. ("SRK"), incorporating the expanded Area 2/Area 118, Ridgetop and Minto North deposits, which study is expected to be completed in Q4/09.

"The continued rapid growth in mineral resources at the Minto Mine, resulting from five new discoveries over the past three years, is a credit to Capstone's exploration team," said Stephen Quin, Capstone's President & COO. "Contained copper, gold and silver in the measured and indicated categories have increased by approximately one third since 2007 as a result of the rapid sequence of discovery, mineral resource delineation and definition at deposits such as Minto North, which went from discovery to a mostly indicated mineral resource in less than five months. The significantly increased measured and indicated mineral resource provides the basis for the Phase IV expansion study currently in process, which aims to maximize resource to reserve conversion and optimize the project economics, including consideration of increasing the mill throughput from the current 3,200tpd to somewhere in the range of 4,000-5,000 tpd," he said. "In parallel, the much larger mineral resource at lower cut-offs, albeit with an overall lower grade but also likely to have a lower strip ratio, will be considered at a scoping study level to determine the potential for a substantially larger operation than that being considered in the Phase IV study." The potential for a much larger operation is discussed in the section of this release entitled "Bulk Tonnage Scenario" below. "Exploration drilling is set to resume in late June 2009, initially focused on converting the current inferred resource at Minto North to measured and indicated resources, but then moving on to begin exploration drilling on several new targets in the area," said Mr. Quin. "The discovery of Minto North opened up a whole new area within our claims that is prospective for the discovery of further high grade copper gold deposits and we aim to continue our aggressive exploration in order to sustain the tremendous rate of discovery of new deposits at Minto."

Bulk Tonnage Scenario

All mineral resource estimates, except Minto Main, detailed herein were constrained by Whittle Shell pits using parameters derived from larger scale (15,000 to 20,000 tpd) open pit mining and milling operations in British Columbia. All mineralization outside of the pits defined by these parameters were excluded from mineral resources and are not reported in this release. On review of the substantially larger mineral resources within these larger pits at lower cut-offs, it was apparent that the mineral resources at a 0.2% copper cut-off were significantly higher grade than those at the operating mines used for comparison. Mineral resources at a 0.2% copper cut-off are tabulated below, and detailed at various cut-offs by deposit in the tables at the end of this release.

    <<
           Minto Mine - Mineral Resources by Class for All Deposits
           --------------------------------------------------------
                         (at a 0.2% copper cut-off)
                         --------------------------

    -------------------------------------------------------------------------
                                                Contained Contained Contained
    Classification   Tonnes Copper Gold Silver     Cu        Gold     Silver
                    (000's)   (%) (g/t) (g/t)  (000s lbs) (000s oz) (000s oz)
                      *                          *        *       *
    -------------------------------------------------------------------------
    Measured (M)     21,350  1.03  0.36   3.7    485,496       248     2,535
    -------------------------------------------------------------------------
    Indicated (I)    39,384  0.62  0.21   2.2    538,357       265     2,823
    -------------------------------------------------------------------------
    Sub-total
     (M+I)(xx)       60,734  0.76  0.26   2.7  1,023,853       513     5,358
    -------------------------------------------------------------------------
    Additional
     Inferred        17,389  0.58  0.16   1.9    223,899        91     1,090
    -------------------------------------------------------------------------
    *  Rounded to nearest thousand
    (xx) Totals may not add exactly due to rounding
    >>

As a result of the significant tonnages at metal grades higher than those at larger scale (15,000 to 20,000 tpd) operations in British Columbia, there may be merit in considering a much larger processing rate than that being considered in the Phase IV study. Further, much of the mineralization that results in the increased tonnages lies within the likely open pit limits required to access the higher grade mineralization, suggesting strip ratios could be reduced in such a development scenario. This bulk tonnage scenario will be more fully evaluated in parallel with the Phase IV study currently in process. Such a study would evaluate the merits of incurring the additional capital cost for a greatly expanded operation versus the benefits of higher production, significantly reduced unit operating costs, lower strip ratios and increased mineral resources resulting from the lower cut-off grades likely applicable in such an operation.

Change in Mineral Resource Estimates 2007-2009

The 2009 updated mineral resource estimates result in both an overall gain in tonnage and contained metal, as well as a substantial positive upgrade in classification in mineral resources. The third line in the following table shows the net gains in tonnes and contained metal, while the last line expresses these changes as a percentage of the total gains. The increase in tonnes, modest reduction in grade and significant net increase in contained metal is a result of a combination of two years of mining high grade ores from the Minto Main deposit, the addition of significant tonnages of new, lower grade resources in Area 2/Area 118 and Ridgetop and the delineation of the modest tonnage but high grade Minto North deposit.

    <<
      Consolidated Measured and Indicated Mineral Resources - Comparison of
      ---------------------------------------------------------------------
                           2007 and 2009 Estimates
                           -----------------------

    -------------------------------------------------------------------------
                                                Contained Contained Contained
    Classification   Tonnes Copper Gold Silver     Cu        Gold       Ag
                    (000's)   (%) (g/t) (g/t)  (000s lbs) (000s oz) (000s oz)
                      *                          *        *       *
    -------------------------------------------------------------------------
    Measured +
     Indicated
     in 2007         19,280  1.42  0.51    5.4   604,700       320     3,340
    -------------------------------------------------------------------------
    Measured +
     Indicated
     in 2009         29,870  1.22  0.46    4.4   800,492       443     4,273
    -------------------------------------------------------------------------
    Change (2009 -
     2007)           10,590                      195,792       123       933
    -------------------------------------------------------------------------
    % Change          54.9% -14.4% -9.6% -17.3%    32.4%     38.3%     27.9%
    -------------------------------------------------------------------------
    >>

Minto Main Deposit

The updated mineral resource estimate remaining in the Minto Main deposit, after adjustments for mining to December 31, 2008 and using a 0.5% copper cut-off, is tabulated below. Mineral resources are not mineral reserves and not all of the mined resource was processed through the Minto mill; some material was placed in stockpiles for later processing. Mineral reserve reconciliation for the Minto Mine is discussed in the section below entitled "Minto Mine Reserve Reconciliation".

    <<
               Minto Main Deposit - Mineral Resources by Class
               -----------------------------------------------
               (at a 0.5% copper cut-off) Excluding Stockpiles
               -----------------------------------------------

    -------------------------------------------------------------------------
                                                Contained Contained Contained
    Classification   Tonnes Copper Gold Silver     Cu        Gold     Silver
                    (000's)   (%) (g/t) (g/t)  (000s lbs) (000s oz) (000s oz)
                      *                          *        *       *
    -------------------------------------------------------------------------
    Measured (M)      5,558  1.69  0.63   6.9    207,692       112     1,226
    -------------------------------------------------------------------------
    Indicated (I)       915  0.96  0.25   4.4     19,466         7       129
    -------------------------------------------------------------------------
    Sub-total
     (M + I)(xx)      6,473  1.59  0.58   6.5    227,158       120     1,355
    -------------------------------------------------------------------------
    Additional
     Inferred            29  0.62  0.13   2.8        393         -         3
    -------------------------------------------------------------------------
    *  Rounded to nearest thousand
    (xx) Totals may not add exactly due to rounding
    >>

The mineral resource estimate for the Minto Mine was completed by Ali Shahkar (P.Eng.) of Lions Gate Geological Consulting Inc. ("LGGC") in 2006 and updated by Mr. Shahkar and Susan Lomas (P.Geo.) of LGGC in 2007. The estimates were completed in Gemcom Software GEMS(C) using a three dimensional block model (5m by 5m by 3m (vertical) block size) and ordinary kriging method. Ali Shahkar, P.Eng., and Susan Lomas, P.Geo., (both of LGGC) are responsible for the mineral resource estimation for the Minto Main deposit as at December 2007. The mineral resource reconciliation above is reported at a 0.5% copper cut-off. LGGC used the 2007 block model and tabulated the remaining mineral resources exclusive of material mined up to the 29th of December, 2008 (a pit shell was provided by Minto Exploration). Additional cut-off grades are provided for comparative purposes in the tables at the end of this release.

Area 2/Area 118 Deposit

Previously, Area 2 and Area 118 were treated as separate deposits but, based upon drilling in 2008 and 2009, they are now considered one deposit with the east half (Area 2) interpreted as being thrust over the west half (Area 118). For the purposes of mineral resource estimation and any subsequent economic evaluation and, due to their juxtaposition, they are considered one larger, dismembered deposit. The updated mineral resource for the combined Area 2/Area 118 deposit is tabulated below and is detailed at different cut-offs at the end of this release.

    <<
      Minto - Mineral Resources by Class for the Area 2/Area 118 Deposit
      ------------------------------------------------------------------
                         (at a 0.5% Copper cut-off)
                         --------------------------

    -------------------------------------------------------------------------
                                                Contained Contained Contained
    Classification   Tonnes Copper Gold Silver     Cu        Gold     Silver
                    (000's)   (%) (g/t) (g/t)  (000s lbs) (000s oz) (000s oz)
                      *                          *        *       *
    -------------------------------------------------------------------------
    Measured (M)      6,936  1.25  0.47   4.3    190,638       104       956
    -------------------------------------------------------------------------
    Indicated (I)    11,301  0.92  0.29   3.4    230,198       106     1,220
    -------------------------------------------------------------------------
    Sub-total
     (M+I)(xx)       18,237  1.05  0.36   3.7    420,836       210     2,176
    -------------------------------------------------------------------------
    Additional
     Inferred         5,116  0.91  0.24   3.0    102,420        40       492
    -------------------------------------------------------------------------
    *  Rounded to nearest thousand
    (xx) Totals may not add exactly due to rounding
    >>

The increases in mineral resources at Area 2/Area 118 versus those reported in 2008 are the result of the infill drill programs in 2008 and 2009, which add 60 new drill holes to the resource models over the last estimate conducted in 2007. This drilling has not only increased the total size of the resource but has also increased the confidence in those resources, resulting in significant amounts of mineral resources previously classified in the inferred category now moving into the measured and indicated categories.

Dr. Wayne Barnett, Ph.D, Pr.Sci.Nat of SRK estimated the mineral resources for the combined Area 2/Area 118 deposit in April, 2009 and the results are effective as of June 1, 2009. The estimate was completed in Gemcom Software GEMS(C) using a three dimensional block model (10m by 10m by 3m (vertical) block size). The mineralization was interpreted into 11 different domains and wireframes were created and geostatistical analysis was completed on the assay and 1.5m composite data for each of the metals. The grades for copper and gold were interpolated into the block model using ordinary kriging method while the inverse distance squared method was used for comparative purposes. Whereas the silver grades were interpolated using the inverse distance squared method only. Interpolated results are reported in measured, indicated and inferred categories and were based on continuity of the mineralization and sample density.

Ridgetop

Ridgetop is a near surface, more moderate grade deposit that is expected to have lower strip ratios than the other deposits identified to date at the Minto Mine. The updated mineral resource estimate for the Ridgetop deposit is tabulated below using a 0.5% copper cut-off and is further presented at different cut-offs at the end of this release.

    <<
         Minto - Mineral Resources by Class for the Ridgetop Deposit
         -----------------------------------------------------------
                         (at a 0.5% copper cut-off)
                         --------------------------

    -------------------------------------------------------------------------
                                                Contained Contained Contained
    Classification   Tonnes Copper Gold Silver     Cu        Gold     Silver
                    (000's)   (%) (g/t) (g/t)  (000s lbs) (000s oz) (000s oz)
                      *                          *        *       *
    -------------------------------------------------------------------------
    Measured (M)      1,568  0.98  0.26    2.1    33,719        13       107
    -------------------------------------------------------------------------
    Indicated (I)     2,355  0.98  0.33    3.3    50,926        25       250
    -------------------------------------------------------------------------
    Sub-total
     (M+I)(xx)        3,923  0.98  0.30    2.8    84,645        38       357
    -------------------------------------------------------------------------
    Additional
     Inferred           686  0.90  0.26    2.4    13,644         6        53
    -------------------------------------------------------------------------
    *  Rounded to nearest thousand
    (xx) Totals may not add exactly due to rounding
    >>

As for Area 2/Area 118, the Ridgetop infill drill programs in 2008 and 2009 resulted in a significant percentage of the Ridgetop mineral resource being upgraded from the inferred to measured and indicated categories. After including results for 78 new holes there was a 6% drop in tonnage but a 15% increase in copper grade. The overall result is a much more robust mineral resource estimate with a much higher degree of confidence.

Dr. Barnett of SRK estimated the mineral resources at Ridgetop in May, 2009, and the results are effective as of the June 1, 2009. It was completed in Gemcom Software GEMS(C) using a 3 dimensional block model (10m by 10m by 3m (vertical) block size). The mineralization was interpreted into seven different domains and wireframes were created and geostatistical analysis was completed on the assay and 1.5m composite data for each of the metals.

The grades for copper and gold were interpolated into the block model using ordinary kriging method (and inverse distance squared method for comparative purposes), whereas the silver grades were interpolated using the inverse distance squared method. Interpolated results are reported in measured, indicated and inferred categories and were based continuity of the mineralization and sample density.

Minto North Deposit

The Minto North deposit is a new discovery made in early 2009 and comprises relatively near surface, higher grade copper-gold mineralization. The first mineral resource estimate for the Minto North deposit, using a 0.5% copper cut-off, is tabulated below and detailed at different cut-offs in the tables at the end of this release.

    <<
       Minto - Mineral Resources by Class for the Minto North Deposit
       --------------------------------------------------------------
                         (at a 0.5% copper cut-off)
                         --------------------------

    -------------------------------------------------------------------------
                                                Contained Contained Contained
    Classification   Tonnes Copper Gold Silver     Cu        Gold     Silver
                    (000's)   (%) (g/t) (g/t)  (000s lbs) (000s oz) (000s oz)
                      *                          *        *       *
    -------------------------------------------------------------------------
    Measured (M)          -     -     -     -          -         -         -
    -------------------------------------------------------------------------
    Indicated (I)     1,237  2.49  1.86   9.7     67,853        74       385
    -------------------------------------------------------------------------
    Sub-total
     (M+I)(xx)        1,237  2.49  1.86   9.7     67,853        74       385
    -------------------------------------------------------------------------
    Additional
     Inferred           634  1.88  1.03   6.4     26,318        21       130
    -------------------------------------------------------------------------
    *  Rounded to nearest thousand
    (xx) Totals may not add exactly due to rounding
    >>

A significant percentage of the Minto North mineral resource is already in the indicated category but Capstone will be embarking on a new drill program in late June to infill and upgrade the confidence in the remaining inferred mineral resource to the measured and indicated category, as well as detailing the very high grade core to Minto North. After this work is complete, Capstone intends to continue drilling to explore new targets on the Minto Mine Property. As noted in the table "Minto Mine - Minto North Deposit - Mineral Resources by Class at Select Copper Cut-offs", attached to the end of this release, the amounts of contained metals at successively lower cut-off grades below 0.5% copper do not change appreciably, suggesting this high grade deposit is already well constrained by drilling and has minimal internal fluctuation of grades.

Mr. Garth Kirkham of Kirkham Geoystems Ltd. ("KGL") estimated the mineral resources at Minto North in April, 2009. It was completed in MineSight(R) using a 3 dimensional block model (10m by 10m by 3m (vertical) block size). The mineralization was interpreted into 6 different domains, wireframes were created and geostatistical analysis was completed on the assay and 1.5m composite data for each of the metals.

Maps

The attached location map (http://capstonemining.com/_resources/2009-06-08-fig-1.jpg) and cross section (http://capstonemining.com/_resources/2009-06-08-fig-2.jpg) that illustrate the locations of these high grade copper-gold deposits, adjacent significant prospects and their relative position to the mill infrastructure at the Minto Mine.

Minto Mine Mineral Reserves

Mineral reserves at the Minto Mine are summarized below, representing the previously announced (June 2007) reserve for the Minto Main deposit and the Area 2 deposit based on drilling to the end of 2006, less mining that has taken place in 2007 and 2008 at the Minto main deposit; no mining was undertaken at Area 2 so that mineral reserve estimate is unchanged from 2007. The potential for expanded mineral reserves at Area 2/Area 118, as well as first time consideration of the Minto North and Ridgetop deposit, will be evaluated in the Phase IV expansion study currently underway with SRK.

    <<
      Minto - Mineral Reserves by Class for Minto Main and Area 2 Deposits
      --------------------------------------------------------------------
                         (at a 0.62% copper cut-off)
                         ---------------------------

    -------------------------------------------------------------------------
                                                Contained Contained Contained
    Classification   Tonnes Copper Gold Silver     Cu        Gold     Silver
                    (000's)   (%) (g/t) (g/t)  (000s lbs) (000s oz) (000s oz)
                      *                          *        *       *
    -------------------------------------------------------------------------
    Proven            7,129  1.77  0.69   6.9    278,172       159     1,574
    -------------------------------------------------------------------------
    Probable            801  1.21  0.47   5.6     21,324        12       145
    -------------------------------------------------------------------------
    Total (P&P)(xx)   7,930  1.71  0.67   6.7    299,491       171     1,720
    -------------------------------------------------------------------------
    Stockpiles          252  2.25         8.8     12,500                71.3
    -------------------------------------------------------------------------
    *  Rounded to nearest thousand
    (xx) Totals may not add exactly due to rounding
    >>

Stockpiles are materials mined but not yet processed, and are not included in mineral resources reported above or in the mineral resource tables attached hereto. Gold grades for the stockpiles are not available due to gold assaying being conducted off site. Also see below for a discussion on reserve reconciliation.

Mineral reserves for the Minto Main deposit (only) are summarized as follows;

    <<
             Minto Main Deposit - Mineral Reserve(1) by Category
             ---------------------------------------------------
                         (at a 0.62% copper cut-off)
                         ---------------------------

    -------------------------------------------------------------------------
                                                Contained Contained Contained
    Classification   Tonnes Copper Gold Silver     Cu        Gold     Silver
                    (000's)   (%) (g/t) (g/t)  (000s lbs) (000s oz) (000s oz)
                      *                          *        *       *
    -------------------------------------------------------------------------
    Proven            4,326  1.88  0.72   7.6    179,299       100     1,060
    -------------------------------------------------------------------------
    Probable            249  1.18  0.55   8.1      6,478         4        65
    -------------------------------------------------------------------------
    Total (P&P)(xx)   4,575  1.84  0.71   7.7    185,585       104     1,125
    -------------------------------------------------------------------------
    Stockpiles          252  2.25         8.8     12,500                71.3
    -------------------------------------------------------------------------
    *  Rounded to nearest thousand
    (xx) Totals may not add exactly due to rounding

    Note 1: Main Deposit Mineral Reserves are current to December 31, 2008,
            the date of the last reserve reconciliation.


    Mineral reserves for the Area 2 deposit (only) are summarized as follows;

    Area 2 Deposit - Mineral Reserves(2) by Class (at a 0.62% copper cut-off)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                                                Contained Contained Contained
    Classification   Tonnes Copper Gold Silver    Copper     Gold     Silver
                    (000's)   (%) (g/t) (g/t)  (000s lbs) (000s oz) (000s oz)
                      *                          *        *       *
    -------------------------------------------------------------------------
    Proven            2,803   1.6  0.65   5.7     98,873        59       515
    -------------------------------------------------------------------------
    Probable            552  1.22  0.44   4.5     14,847         8        80
    -------------------------------------------------------------------------
    Total (P&P)(xx)   3,355  1.54  0.62   5.5    113,906        67       594
    -------------------------------------------------------------------------
    *  Rounded to nearest thousand
    (xx) Totals may not add exactly due to rounding

    Note 2: Area 2 Deposit Mineral Reserves are current to December 12, 2007
            but no mining has occurred in this area. Also see discussion
            below.
    >>

There has been no adjustment to the Area 2 reserve from that announced on December 12, 2007, which was based on drilling to the end of 2006 and were included in the Phase II expansion study conducted by SRK. See the news release dated June 17, 2008 for additional details on the basis for the reserve estimates and disclosure in respect of the Qualified Persons responsible for those estimates. Area 2 mineral reserves will be readdressed in the Phase IV expansion study currently being conducted by SRK.

Minto Mine Reserve Reconciliation

Mineral reserves were calculated by Minto Explorations' geology and engineering staff under the supervision of Guy Lauzier, P. Eng., Manager of Mining at the Minto Mine, who is the Qualified Person under NI 43-101 responsible for the mineral reserve estimate.

Minto Main deposit reserve estimate was compiled using a mineral resource model (the "Model") provided by LGGC. The Model was imported into Vulcan software for the reserve calculation. The mineral resource estimate was verified using MineSight(R) to ensure the import was successful. The mineral reserve calculation was bounded by the 2007 year-end survey surface and the 2008 year-end survey surface. A 0.62% copper equivalent cut-off grade was used. The mineral reserve summary is based on measured and indicated mineral resource classifications in the model only, totalled within ore zones 2, 4, 5, and 8 in the Minto Main deposit (as established in the Area 2 Technical Report), and bounded by the aforementioned surfaces and assumptions. Mineral resource categories and definition of ore zones in the Model were established by the relevant QPs for each resource model, as defined herein.

The start and end of year pit shells were used to estimate the mined tonnages and grades from the block model. The reconciled mined tonnes were 1.2% more than calculated using the block model. A 5.58% loss in copper metal, 5.00% Ag and 4.76% Au occurred during 2008. The loss of metal occurred primarily on the 730 and 724 benches, which are the lower contact of the deposit.

Resource and Reserve Estimation Methodology

SRK Consulting (Canada) Inc.: All mineral resources reported herein for Area 2, Area 118 and Ridgetop were estimated by SRK. Marek Nowak (P. Eng.), and Wayne Barnett (Pr.Sci.Nat.) of SRK are the Independent Qualified Persons under National Instrument 43-101 responsible for the mineral resource estimates.

The resource estimates for Area 2, Area 118 and Ridgetop were based on revised geological models. The revision of the models was undertaken by SRK using historical and newly completed geological drilling logs and assay sample results for each of the deposits. All geological models and estimations were undertaken using the Gemcom Software GEMS(C). A total of 192 drill holes were used to construct the geology and estimate the resource for the combined volume of Area 2 and Area 118. The Ridgetop model was constructed from 119 drill holes. The geology is similar for all deposits, with mineralization concentrated in shallow dipping zones of foliated granodiorite along which grade continuity can be demonstrated. Each deposit has between seven and nine such ore zones. The grades were estimated for each ore zone separately, with independently derived kriging parameters. The estimated block model for each deposit consists of 10m by 10m by 3m block sizes. Resource classification categories were designed from continuity of the mineralization and sample density. All resource models were validated and independently verified by Kirkham Geosystems. The open pit mineral resources are reported within a Whittle shell designed from an NSR model and based on optimistic parameters.

Kirkham Geoystems Ltd: All mineral resources reported herein for Minto North were estimated by Kirkham Geosystems. Garth Kirkham (P. Geo.) is the Independent Qualified Person under National Instrument 43-101 responsible for the Minto North mineral resource estimate. The Minto North Deposit was constructed using 30 drillholes resulting in 3 relatively flat lying mineralized zones (i.e. 115, 120 and 130 zones) and 3 small splayed zones. The grades were estimated for each zone separately with independently derived kriging parameters. The estimated block model consisted of 10 x 10 x 3 m block sizes using 1.5m composites. Resource classification categories were designed from continuity of the mineralization and sample density.

Lions Gate Geological Consulting Inc.: All mineral resources reported herein for Minto Main were estimated by LGGC. Ali Shahkar (P. Eng.) and Susan Lomas (P.Geo.) who are the Independent Qualified Persons under National Instrument 43-101 responsible for the Minto Main mineral resource estimate.

Minto Main deposit reserve estimate was compiled using the updated mineral resource model provided by LGGC, hereby referred to as the "Model". The Model was imported into Mintec's MineSight(R) software for the reserve calculation. The mineral resource estimate was verified using MineSight(R) to ensure the import was successful. The mineral reserve calculation was bounded by the 2007 year-end survey surface (122007 YE Pit Surface) and the most current ultimate pit design surface (ph5 nov1). Furthermore, a cut-off grade of 0.62% copper was used and no dilution or recovery factors were employed. The absence of these factors is justified on account of historical performance showing good mining reconciliation against the past model. The mineral reserve summary is based on measured and indicated mineral resource classifications in the model only, totalled within ore zones 2, 4, 5, and 8 in the Minto Main deposit (as established by in the December 2007 Pre-feasibility Study), and bounded by the aforementioned surfaces and assumptions. Mineral resource categories and definition of ore zones in the Model were established by the relevant QP's for each resource model, as defined herein.

Mineral Resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.

<< The TSX does not accept any responsibility for the adequacy or accuracy of this press release. >>

Quality Assurance

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Stephen P. Quin, P. Geo., President & COO for Capstone Mining Corp., who has reviewed the content of this press release. The exploration activities at the Minto project site are carried out under the supervision of Brad Mercer, P. Geo., V.P. Exploration (Canada) with Capstone. The mineral resources discussed in this new release were estimated by the following:

Marek Nowak (P. Eng.), and Wayne Barnett (Pr.Sci.Nat.) of SRK Consulting (Canada) Inc. are the Independent Qualified Persons under National Instrument 43-101 responsible for the Area 2/Area 118 and Ridgetop mineral resource estimates and have reviewed the information in this release in respect of the Area 2, Area 118 and Ridgetop mineral resource estimates.

Ali Shahkar (P. Eng.) and Susan Lomas (P.Geo.) of Lions Gate Geological Consulting Inc. are the Independent Qualified Persons under National Instrument 43-101 responsible for the Minto Main mineral resource reconciliation and have reviewed the information in this release in respect of the Minto Main mineral resource estimates.

Garth Kirkham (P. Geo.) of Kirkham Geosystems Ltd. is the Independent Qualified Persons under National Instrument 43-101 responsible for the Minto North mineral resource estimate and have reviewed the information in this release in respect of the Minto North mineral resource estimates.

The analytical method for the copper and silver analyses is aqua regia digestion of the samples followed by atomic absorption spectroscopy. Gold is analysed by fire assay fusion with atomic absorption spectroscopy finish for gold. Analyses are carried out by ALS Chemex in North Vancouver. When visible gold is noted in drill core samples or regular fire assay values appear abnormally high, the pulp and screen metallic assay method is used to determine the total gold content and gold contents of different size fractions. This is considered industry best practice when dealing with coarse gold mineralization where a nugget effect is suspected. This determination is accepted as the most representative value and is used in the assay database for resource calculations. Blank and standard samples are used for quality assurance and quality control. Where more than two check samples assay outside expected ranges, the entire batch is re-assayed. After the completion of planned drill programs at Minto, random check assays will be carried out by Acme Analytical of Vancouver.

Forward-Looking Statements

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and Capstone Mining Corp. (hereinafter referred to as the "Company") do not intend, and do not assume any obligation, to update these forward-looking statements.

Forward-looking statements relate to future events or future performance and reflect management of the Company's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward looking statements.

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         Minto - Area 2/Area 118 Deposit - Mineral Resources by Class
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                          at Select Copper Cut-offs
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SOURCE: Capstone Mining Corp.

about Capstone, please contact: Darren Pylot, Vice Chairman & CEO, Stephen Quin, President & COO Or Investor Relations' Mark Patchett at (604) 684-8894 or (866) 684-8894, This email address is being protected from spambots. You need JavaScript enabled to view it.