Production To Increase At Cozamin and Minto

VANCOUVER, BC - Capstone Mining Corp. provided its production and capital expenditure guidance for 2014 for its operating mines, Cozamin and Minto. Capstone expects to produce 38,500 tones (5%) of copper in concentrates from Cozamin and Minto, slightly higher than 2013 production of 37,500 tones.

"The mine plans at Cozamin and Minto in 2014 call for a similar production level to last year," said Darren Pylot, President and CEO of Capstone. "Our focus for 2014 will be on cost efficiencies at all of our operations.

At Cozamin the majority of the ore will continue to come from the San Roberto blocks in 2014; however, mining is transitioning to lower grade blocks within the zone. New development for 2014 will be required for stops in the Mala Noche Footwall Zone, which is expected to contribute approximately 23% of ore production in 2014 at an average grade of 1.77%. Cash costs at Cozamin in 2014 are expected to increase over 2013, as savings in site operating costs are offset by higher treatment and selling costs.

At Minto the 2014 mine plan at Minto optimizes mill throughput, grade and production, while minimizing operating costs and development capital, and reflects the following: Surface Mining - The Area 2 Stage 2 pit will be completed in January 2014, following which surface mining will move to the Area 118 pit which will finish in mid-August. The mine plan calls for a reduced surface mining rate during the first half of the year to balance mining and milling activities. Underground Mining - Capstone is able to defer the development and production from the Area 118 underground for one year without a negative impact on 2014 production. The underground plan in 2014 calls for high grade ore just below the bottom of the mined out Area 2 pit to be recovered prior to that pit being utilized for water storage. Mill Operations - The mill will process ore from the Area 2 and Area 118 pits, supplemented with ore from underground and stockpile for the first half of the year, with primarily stockpiled ore processed in the second half of the year until the next pit (Minto North) begins to feed the mill in mid-2015. Mill throughput in 2014 will remain relatively constant throughout the year, however grade will decline starting in August when lower grade material from stockpile is scheduled to be milled.

Pre-stripping of Minto North is set to begin on August 15, 2014, contingent upon receipt of the necessary permits and licenses. A delay in the Phase V/VI permit application has resulted in the shift of the most significant production from Minto North by one year from 2015 to 2016, but brings high grade open pit ore from Minto North in ahead of ongoing underground development of Minto South underground, which is expected to resume in 2015. Cash costs for 2014 are budgeted to be higher than 2013, primarily due to higher underground mining costs and treatment and selling costs.

Major capital expenditures at Cozamin include $10.8 million for underground development, infrastructure and communications and $6.4 million in underground and surface equipment.

Major capital expenditures at Minto include $5.2 million in underground development of the underground zone that is scheduled for 2014, $4.3 million for renovations to the camp and other site upgrades (partially carried from 2013), $5.3 for various improvement projects and $2.0 million in permitting and environmental activities related primarily to the joint Phase V/VI Yukon Environmental and Socio-economic Assessment Board (YESAB) review that is currently underway, and subsequent water licensing, to bring all remaining known reserves at Minto into the mine plan. In addition, Minto expects to capitalize pre-stripping costs of $16.1 million in the second half of 2014, related solely to the initial development of the Minto North pit, with no corresponding

At Santo Domingo, Chile the Definitive Feasibility Study (DFS) for Santo Domingo is expected to be completed at the end of the first quarter of 2014. Capstone elected to take a more conservative approach to the metallurgical work and lengthened the timeline for completion of the DFS. Capstone formally submitted the Environmental Impact Assessment (EIA) for the Santo Domingo project in October 2013, which initiated the formal environmental assessment process, and expects to have the port concession finalized before the change in government. In 2014, the company intends to continue to de-risk the project and will maintain the owner's team, advance the EIA process and community relations, pursue power and third party port opportunities and continue to advance engineering. The total Santo Domingo budget for 2014 is $29.8 million of which Capstone's 70% share is $20.9 million.

At Cozamin, the multi-year underground infill drilling program in the Mala Noche Footwall Zone that focused on adding mine life was completed in 2013. A mineral reserve update including resources resulting from the 2012 drilling will be released during the first quarter. A mineral resource update is planned in the first half of 2014 that will incorporate all drilling up to the end of 2013. The 2014 exploration drill program at Cozamin will consist of up to 10,000 meters of surface drilling, targeting Mala Noche splays that have not previously been tested.

Brownfield exploration at Minto remains paused for the second consecutive year, as the mine life currently runs to 2022 and the most compelling targets can be accessed from underground once the ramp reaches an optimum point to resume drilling.