Capstone Commences 2010 Exploration Program at Minto Copper-Gold Mine

US$2.6m Program Targets High Grade Copper Resources at Area 2 & Minto East

VANCOUVER , Feb. 3 /CNW/ - Capstone Mining Corp. (CS: TSX) today announced that exploration drilling at the high grade Minto copper-gold mine located in the Yukon has commenced. Capstone has approved a budget of approximately US$2.6 million to conduct a 9,000m drill program during the winter/spring season of 2010, as well as expanding the successful deep penetrating geophysical surveys carried out in 2009.

The principal exploration objectives for 2010 include drill testing in two areas for expansions to the deeper, higher grade mineral resources, Area 2/118 and the recently discovered Minto East mineralization. This work will support the evaluation of a proposed underground mining option, targeting high grade mineral resources that are adjacent to or below the open pits outlined in the Phase IV Preliminary Feasibility Study ("Phase IV PFS"), the results of which were announced on December 15, 2009 . In addition to evaluating these two priority targets for resource definition, Capstone also plans an expansion to the 2009 Titan-24 deep imaging IP (Induced Polarization) program, tripling last year's coverage. Based on success, the scale of the 2010 exploration program could be expanded.

"Four years of continued strong exploration results justifies a sustained commitment to exploration at Minto," said Stephen Quin , President & COO of Capstone Mining Corp. "Drilling from 2005 to 2009 was focused mostly on targets with potential to add mineral resources in the immediate vicinity of the current open pit operations that could be extracted by open pit mining methods, while deeper exploration targets with high grade drill intercepts were often not followed up," he said. "However, successes such as the recent discovery at Minto East and the previous results from deeper areas of Area 2/118 and Copper Keel, coupled with chargeability anomalies in the recent Titan-24 deep imaging IP survey, have opened up a whole new realm of opportunity for high grade mineralization at moderate depths in the immediate vicinity of the mill with all target areas in close proximity to each other. This could potentially add a high grade sweetener to the proposed open pits outlined in the Phase IV PFS. These opportunities clearly warrant follow-up, as does the continued evaluation of the broader potential of Capstone's extensive holdings surrounding the Minto Mine."

Additional details on the underground potential already defined in current mineral resources are contained in the Phase IV PFS. The 2010 exploration program is aimed at further enhancing that opportunity before completing a technical study that incorporates a combined open pit and underground mining operation at the earliest possible date, assuming a positive technical report and required regulatory approvals.

    
    2010 Exploration Priorities

    The principal priorities for the 2010 exploration program will be to:

    1.  Step out drilling on the deeper mineralized horizons at Area 2/118
        that were incompletely explored in previous programs due to a focus
        on shallower, potentially open pittable mineralization. The objective
        of this winter's program is to seek extensions to higher grade
        intervals laying beneath or adjacent to the proposed Area 2/118 open
        pits outlined in the 2009 Phase IV PFS;

    2.  Step out drilling to expand upon the Minto East discovery located
        beneath the east flank of the current Main deposit open pit;

    3.  Conduct an additional 24km of Titan24 surveying, to be distributed
        equally on the east and west flanks of the "proof of concept" survey
        conducted in 2009 that successfully defined the Minto Main, Area 2,
        Ridgetop and Minto North deposit, as well as identifying the Minto
        East target.
    

Please follow the link below to a map identifying the priority exploration areas for 2010:

http://www.capstonemining.com/i/photos/minto/2010-04ProposedMintoDrillProgram.jpg

Please follow the link below to a map identifying the priority exploration areas for 2010 showing Titan 24 IP chargeability at 700m elevation:

http://www.capstonemining.com/i/photos/minto/2010-04ProposedMintoDrillProgram700elTitanIP.jpg

Please follow the link below to a map identifying the priority exploration areas for 2010 showing airborne magnetics:

http://www.capstonemining.com/i/photos/minto/2010-04ProposedMintoDrillProgramMag.jpg

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 Corporation. The exploration activities at the Minto project site are carried out under the supervision of Brad Mercer , P. Geol., V.P. Exploration for Capstone.

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

Forward-looking statements relate to future events or future performance and reflect Company management's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral 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 mineral 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.

For further information: about Capstone, please contact: Darren Pylot, Vice Chairman & CEO, Stephen Quin, President & COO; Or Investor Relations, Zobeida Slogan at [phone] or [phone], [email protected]