Capstone Reports Significantly Improved Performance at its Mining Operations

Cozamin and Minto Mines' Performance Returning to Design Levels

VANCOUVER, Sept. 13 /CNW/ - Capstone Mining Corp. (CS: TSX) today reported that significant progress has been made towards returning its two mining operations, the Cozamin and Minto mines, to normal operational levels. With additional stopes brought on line and a resumption of mining in the wide Avoca stopes at Cozamin, the underground mine has been able to provide significantly more ore for processing, while at the Minto mine, a number of operational changes and maintenance upgrades have resulted in significantly improved throughput in the tailings plant to allow higher throughput in the mill.

"A sustained effort over the past few months has resulted in a considerable improvement in the tonnes processed at both of our mining operations," said Darren Pylot, Chief Executive Officer of Capstone. "Access to more and higher copper grade stopes at the Cozamin Mine and improved performance in the tailings filtration plant at the Minto Mine is yielding benefits. While we are encouraged by the throughput levels returning to design, we will continue to make improvements to further increase production at both operations."

Cozamin Mine

As reported on July 19 and August 10, 2010, mill throughput at the Cozamin Mine in Zacatecas, Mexico, has been constrained by lack of ore from underground, requiring the mill to operate at less than its potential capacity. The lower underground ore production was related to implementation of an enhanced geotechnical stability program in the large scale, high copper grade Avoca stoping area which prevented access to this important area for ore production. During the more extensive cable bolting process, ore was primarily derived from higher areas in the mine, which have lower copper and higher lead grades than average for the mineral reserve. However, in July, two new, higher copper grade stopes on the 12 level were brought on line, increasing ore production and copper grade, and in the first week of September, mining recommenced in the high grade, large scale Avoca stoping area. The net results has been daily throughput has increased from an average of 2,559 tonnes per day ("tpd") in Q2/10 to 3,420tpd over the past 30 days up to and including September 8, 2010.

Minto Mine

As noted in the same news releases referenced above, mill throughput at the Minto Mine was constrained by the performance of the filter presses in the tailings plant. Through a comprehensive operations and maintenance improvement process that has included: (a) a rebuild of one filter press, (b) changes to the filter cloth types on the same press and, (c) improved grinding control to reduce fines generation as well as other improvements and operational changes, performance of the filter presses has improved considerably, with the rebuilt press throughput markedly higher. These changes resulted in significant throughput improvements commencing in mid-August and, over the past 30 days (up to and including September 8, 2010), plant throughput has increased to 2,871tpd as compared to an average of 2,036tpd in Q2/10, and over the past 15 days the average plant throughput has averaged 3,096tpd. Four filters remain to be rebuilt and cloths replaced, two of which rebuilds will be completed in September and the remaining two in early October, which should result in further increases in throughput.

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 of Capstone Mining Corp. and Bob Barnes, P. Eng., Vice President Operations for Capstone.

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: Darren Pylot, Vice Chairman & CEO, Stephen Quin, President; Or Investor Relations', Zobeida Slogan at [phone] or [phone]; Or e-mail Capstone at [email protected]