PALA INVESTS IN CAPSTONE MINING CORP.

TORONTO, Sept. 14 /CNW/ - Pala Investments Holdings Limited ("PIHL") announced today that it has acquired ownership of a total of 5,311,100 common shares of Capstone Mining Corp. ("Capstone") representing approximately 2.67% of the 199,258,238 issued and outstanding common shares of Capstone, as known by PIHL.  The common shares were acquired through the facilities of the Toronto Stock Exchange over the period from August 13, 2010 to September 14, 2010. 

After giving effect to the acquisitions referred to in item 2 above, PIHL and its principals own and control, directly and indirectly, a total of 35,262,200 common shares representing approximately 17.70% of the issued and outstanding shares of Capstone, as known by PIHL. 

The average consideration for each common share of Capstone referred to above was approximately CDN$2.64 per common share.  PIHL has acquired the common shares for investment purposes and may increase or decrease the investment in these securities depending upon future market conditions.

PIHL's address is 12 Castle Street, St. Helier, Jersey JE2 3RT. For further information please refer to the Early Warning Report posted on SEDAR or contact Colin Murray at 011 41 41 560 9070.

About Pala

Pala Investments Holdings Limited is a US$1.0 billion multi-strategy investment company focused on mining and natural resource companies in both developed and emerging markets. Pala Investments' exclusive investment advisor, Pala Investments AG, has extensive experience within the mining and natural resource sectors. Pala Investments seeks to assist companies in which it has long-term shareholdings by providing strategic advice and innovative financing solutions. For more information, visit www.pala.com.

Certain statements in the press release are forward-looking statements and are prospective in nature, including statements with respect to Pala's future intentions regarding the securities of Capstone that it owns. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Such forward-looking statements should therefore be construed in light of such factors, and Pala is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For further information:

Colin Murray at 011 41 41 560 9070