Capstone Extends Pinto Valley Mine Life to 2039

VANCOUVER, BC - Capstone Mining Corp. reported results of the Pre-Feasibility Study Mine Life Extension ("PV3 PFS") for its wholly owned Pinto Valley Mine in Arizona.

Proven and Probable Mineral Reserves increased to 473.8 million tonnes grading 0.31% copper, resulting in mine life to 2039, a 13 year increase over the previously published PV2 PFS (2014). Life of Mine (LOM) average annual production of copper in concentrate is estimated at 122.8 million pounds of copper and 1.9 million pounds of molybdenum. Mill production increases to 20.4 million tonnes per year (56,000 tonnes per day (tpd)) in 2017 from 19.8 million tonnes (54,000 tpd) in 2016 through improvements in maintenance and operational practices.

Expected LOM C1 cash costs are estimated to be $2.05 per pound of payable copper (net of by-product credits and including capitalized stripping as an operating cost).

No significant capital is required for PV3 until stripping commences in 2020.

"The PV3 PFS adds significant value to the Pinto Valley Mine by more than doubling the remaining mine life to 23 years and increasing throughput by 8% without any major capital investment," said Darren Pylot, President and CEO of Capstone.

"The PV3 mine plan and capital schedule closely mirrors the PV2 mine plan for the next two years, but with increased throughput rates. The mine plan calls for relatively higher grade in 2016 and 2017 with low sustaining capital requirements, resulting in a C1 cost, including capitalized stripping, ranging from $1.90 to $2.00 per pound of copper and an all-in cost ranging from $2.10 to $2.20 per pound of copper in those years," continued Pylot. "The grade profile allows us to weather the current copper price environment and the mine plan gives us significant flexibility, with the next major decision point being to advance the first PV3 pushback in 2020. Our focus will continue to be on process improvements, with significant leverage to the upside when copper prices improve."

The Pinto Valley Mine is a conventional open pit operation, with drilling, blasting, loading and hauling. The mill operation consists of a primary, secondary, tertiary crushing system, six ball mills, and flotation concentration.

The mill produces copper and molybdenum concentrates. The PV3 PFS contemplates that mill production increases will be achieved through improved maintenance and operating practices, resulting in increased operating hours and increased hourly throughput.