News releases

VANCOUVER, British Columbia –
Capstone Mining Corp. (“Capstone” or the “Company”) (TSX:CS) announces additional high grade copper and silver results from five infill and 22 stepout drill holes at its Cozamin Mine, further to the update of January 16, 2020. The drilling program, aiming to double the current reserve base, is three months ahead of schedule with 177 holes of the 200 hole program completed. The results continue to demonstrate greater widths and higher grades than current Mineral Reserves, as well as the potential for an expanded high grade resource. An updated Mineral Resource and Mineral Reserve estimates will be completed in late 2020. Cozamin is expected to achieve a 50% increase to annual copper and silver production of 50 to 55 million pounds and 1.5 million ounces, respectively, by 2021.

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“These drill results, as well as the set released in January, are amongst the best ever drilled at Cozamin. Despite the temporary ramp down of operations at Cozamin, due to COVID-19 restrictions in Mexico, we are well ahead of schedule and still expect to deliver an updated Mineral Resource and Mineral Reserve estimate and Technical Report by the end of this year,” said Brad Mercer, SVP Exploration and Operations.

Darren Pylot, Capstone’s President and CEO said, “Challenging times highlight the importance of having a safe, high grade, low cost and efficiently managed mining operation within your portfolio. These results support our belief that Cozamin will remain a crown jewel asset for this decade and longer.”

Highlighted drill results are summarized in Table 1 and full results for all previously unreleased holes since the January 16, 2020 news release are in Table 2.

Table 1 – Selected MNFWZ Drilling Completed Since the January 16, 2020 News Release

Section ID #	Drill hole ID	Type	In Resource	From (m)	To (m)	Width (m)	True Width* (m)	Cu (%)	Zn (%)	Pb (%)	Ag (g/t)
25	CG-20-S471	step-out	no	567.5	574.1	6.6	5.1	7.58	0.26	0.01	113.1
	including			567.5	572.3	4.8	3.7	9.61	0.32	0.01	140.8
16	CG-20-S473	step-out	no	629.9	635.8	5.9	5.2	5.16	0.15	0.00	92.2
	including			629.9	633.8	3.9	3.4	7.38	0.21	0.01	130.8
21	CG-20-S466	step-out	no	614.7	625.1	10.4	7.3	3.70	0.12	0.01	64.1
	including			620.9	625.1	4.2	2.9	6.16	0.19	0.01	105.3
23	CG-20-S476	step-out	no	603.2	607.4	4.2	3.2	5.94	0.18	0.01	100.7
3	CG-20-S470	infill	no	552.5	572.5	20.0	16.7	4.87	0.23	0.02	131.0
	including			563.8	572.5	8.7	7.2	6.95	0.40	0.04	213.3
*estimated true width of vein intercept for inclined drill holes

Figure 1 – Select High Grade Step-out and Infill Holes at Cozamin Mine: April 2020 Drill Results

The best grade*thickness intercepts lie outside of the current Mineral Reserve. There is a strong correlation between copper and silver grades.

Figure 2 – Long-section of the Mala Noche Footwall Zone Showing Copper % * Estimated True Width (m)

Figure 3 – Image of Drill Core from Hole CG-20-S471 (7.58% Cu; 113.1 g/t Ag, TW 5.1m)

For drill hole location and context please view the long-section of the MNFWZ at https://capstonemining.com/files/images/maps/April-23-PR-Long-Section-Full.pdf.

Table 2 – All MNFWZ Drilling Completed Since the January 16, 2020 News Release

Section ID #	Drill hole ID	Type	In Resource	From (m)	To (m)	Width (m)	True Width* (m)	Cu (%)	Zn (%)	Pb (%)	Ag (g/t)
1	CG-20-S475	step-out	no	431.0	441.7	10.7	8.6	1.55	0.16	0.05	65.7
	including			432.3	438.5	6.2	5.0	2.30	0.25	0.08	95.4
2	CG-20-S479	step-out	no	534.4	535.1	0.7	0.7	3.94	0.29	0.02	102.0
3	CG-20-S470	infill	no	552.5	572.5	20.0	16.7	4.87	0.23	0.02	131.0
	including			563.8	572.5	8.7	7.2	6.95	0.40	0.04	213.3
4	CG-20-S458	infill	no	548.1	578.0	29.9	21.3	2.06	0.20	0.01	52.7
	including			562.5	567.1	4.6	3.3	7.11	0.43	0.02	217.2
5	CG-20-S465	infill	no	551.8	569.8	18.0	15.5	1.34	0.05	0.01	24.3
	including			552.3	566.7	14.4	12.4	1.59	0.05	0.01	28.5
6	CG-20-S461	step-out	no	480.9	484.8	3.9	3.7	3.45	0.16	0.02	67.6
	including			481.8	484.3	2.5	2.3	5.06	0.23	0.02	92.0
7	CG-20-S472	step-out	no	402.5	403.3	0.8	0.7	1.09	0.03	0.01	27.2
8	CG-20-S468	step-out	no	378.9	384.5	5.6	4.9	0.88	0.11	0.01	40.6
	including			378.9	380.8	1.9	1.6	1.92	0.26	0.02	97.6
9	CG-20-S464	step-out	no	468.8	473.1	4.3	4.1	2.80	0.39	0.02	58.1
	including			469.9	471.5	1.6	1.5	6.86	0.68	0.02	122.4
10	CG-20-S469	step-out	no	457.8	466.8	9.0	8.3	1.78	0.06	0.01	38.4
	including			458.4	460.4	2.0	1.8	6.29	0.16	0.01	123.7
11	CG-20-S480	step-out	no	399.0	403.0	4.0	3.6	2.76	0.10	0.01	58.4
	including			399.0	401.2	2.2	2.0	4.17	0.15	0.01	78.4
12	CG-20-S463	step-out	no	381.5	384.0	2.5	2.3	0.67	0.07	0.01	22.0
	including			381.5	383.2	1.7	1.6	0.89	0.08	0.01	28.7
13	CG-20-S459	step-out	no	393.7	394.4	0.7	0.6	0.88	0.06	0.07	44.5
14	CG-20-S474	step-out	no	459.2	461.9	2.7	2.5	8.28	0.22	0.02	157.0
15	CG-20-S478	step-out	no	439.5	452.5	13.0	12.3	2.33	0.08	0.01	51.6
16	CG-20-S473	step-out	no	629.9	635.8	5.9	5.2	5.16	0.15	0.00	92.2
	including			629.9	633.8	3.9	3.4	7.38	0.21	0.01	130.8
17	CG-20-U507	infill	no	522.1	522.8	0.7	0.6	2.36	0.11	0.01	40.0
18	CG-20-U508	infill	no	496.5	501.9	5.4	5.1	0.94	0.04	0.01	16.6
	including			500.8	501.9	1.1	1.0	2.93	0.09	0.01	53.0
19	CG-20-U509	step-out	no	no significant intercepts
20	CG-20-U510	step-out	no	no significant intercepts
21	CG-20-S466	step-out	no	614.7	625.1	10.4	7.3	3.70	0.12	0.01	64.1
	including			620.9	625.1	4.2	2.9	6.16	0.19	0.01	105.3
22	CG-20-S460	step-out	no	552.2	552.8	0.6	0.5	0.53	0.47	0.04	18.7
23	CG-20-S476	step-out	no	603.2	607.4	4.2	3.2	5.94	0.18	0.01	100.7
24	CG-20-S462	step-out	no	549.4	552.4	3.0	2.9	0.36	0.01	0.00	10.4
25	CG-20-S471	step-out	no	567.5	574.1	6.6	5.1	7.58	0.26	0.01	113.1
	including			567.5	572.3	4.8	3.7	9.61	0.32	0.01	140.8
26	CG-20-S467	step-out	no	521.8	522.8	1.0	0.9	2.24	0.66	0.01	41.2
27	CG-20-S477	step-out	no	528.5	531.8	3.3	2.7	2.58	0.17	0.01	43.7
	including			530.9	531.8	0.9	0.7	7.39	0.27	0.01	125.0
*estimated true width of vein intercept for inclined drill holes

Following are the select high grade step-out and infill holes from the January 2020 drill results, shown in the same format as April’s results for reference. For full details, refer to the Company’s news release of January 16, 2020.

Figure 4 – Select High Grade Step-out and Infill holes at Cozamin: January 2020 Drill Results

METHODOLOGY

All samples were submitted for preparation by ALS at its facilities in Zacatecas, Mexico, followed by analysis at the ALS Laboratory in North Vancouver, Canada. The entire sample is crushed to a minimum of 70% passing 2 millimetres. A 250g subsample of the crushed material is then pulverized to 85% passing 75 microns. Copper, zinc, lead and silver are determined by ICP analysis after 4 acid digestion of a 0.25 to 0.4g subsample of pulverized material. QAQC samples in each batch of 20 samples include a blank, a certified reference material and a duplicate (one of a field, coarse reject or pulp reject).

ABOUT CAPSTONE MINING CORP.

Capstone Mining Corp. is a Canadian base metals mining company, focused on copper. Our two producing mines are the Pinto Valley copper mine located in Arizona, US and the Cozamin copper-silver mine in Zacatecas State, Mexico. In addition, Capstone has the large scale 70% owned copper-iron Santo Domingo development project in Region III, Chile, in partnership with Korea Resources Corporation, as well as a portfolio of exploration properties. Capstone’s strategy is to focus on the optimization of operations and assets in politically stable, mining-friendly regions, centred in the Americas. We are committed to the responsible development of our assets and the environments in which we operate. Our headquarters are in Vancouver, Canada and we are listed on the Toronto Stock Exchange (TSX). Further information is available at www.capstonemining.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

This news release, and the documents incorporated by reference herein, 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. (“Capstone” or the “Company”) does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation. Forward-looking statements relate to future events or future performance and reflect our expectations or beliefs regarding future events. Forward-looking statements include, but are not limited to, statements with respect to the continuing success of mineral exploration, Capstone’s ability to fund future exploration activities, the estimation of mineral resources and mineral reserves, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production and capital expenditures, the success of our mining operations, the estimations for potential quantities and grade of inferred resources and exploration targets, environmental risks, unanticipated reclamation expenses and title disputes. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “aiming”, “approximately”, “guidance”, “scheduled”, “target”, “estimates”, “forecasts”, “extends”, “convert”, “potential”, “intends”, “anticipates”, “believes” or variations of such words and phrases, or statements that certain actions, events or results “may”, “could”, “should”, “would”, “will”, “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 that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, amongst others, risks related to inherent hazards associated with mining operations and closure of mining projects, the inherent uncertainty of mineral exploration and estimations of exploration targets, potential delays in exploration due to COVID-19 or governmental action, future prices of copper and other metals, compliance with financial covenants, surety bonding, our ability to raise capital or fund explorations, Capstone’s ability to acquire properties for growth, counterparty risks associated with sales of our metals, foreign currency exchange rate fluctuations, changes in general economic conditions, accuracy of mineral resource and mineral reserve estimates, operating in foreign jurisdictions with risk of changes to governmental regulation, compliance with governmental regulations, compliance with environmental laws and regulations, reliance on approvals, licences and permits from governmental authorities, impact of climatic conditions on our operations, aboriginal title claims and rights to consultation and accommodation, land reclamation and mine closure obligations, uncertainties and risks related to the potential development of the Cozamin project, increased operating and capital costs, challenges to title to our mineral properties, maintaining ongoing social license to operate, dependence on key management personnel, potential conflicts of interest involving our directors and officers, corruption and bribery, limitations inherent in our insurance coverage, labour relations, increasing energy prices, competition in the mining industry, risks associated with joint venture partners, our ability to integrate new acquisitions into our operations, cybersecurity threats, legal proceedings, and other risks of the mining industry as well as those factors detailed from time to time in the Company’s interim and annual financial statements and MD&A of those statements, all of which are filed and available for review under the Company’s profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause our actual results, performance or achievements to differ materially from those described in our forward-looking statements, there may be other factors that cause our results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that our forward-looking statements will prove to be accurate, as our actual results, performance or achievements could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on our forward-looking statements.

NATIONAL INSTRUMENT 43-101 COMPLIANCE

Unless otherwise indicated, Capstone has prepared the technical information in this news release (“Technical Information”) based on information contained in the technical reports, news releases and MD&A’s (collectively the “Disclosure Documents”) available under Capstone Mining Corp.’s company profile on SEDAR at www.sedar.com. Each Disclosure Document was prepared by, or under the supervision of, a qualified person (a “Qualified Person”) as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators (“NI 43-101”). Readers are encouraged to review the full text of the Disclosure Documents which qualifies the Technical Information. Readers are advised that mineral resources that are not mineral reserves do not have demonstrated economic viability. The Disclosure Documents are each intended to be read as a whole, and sections should not be read or relied upon out of context. The Technical Information is subject to the assumptions and qualifications contained in the Disclosure Documents.

The Technical Information in this news release has been prepared in accordance with NI 43-101 and reviewed and approved by Brad Mercer, P. Geol., Capstone’s Senior Vice President, Operations and Exploration, a Qualified Person and the person who oversees exploration activities on the Cozamin Mine property.

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Jerrold Annett, VP, Strategy and Capital Markets

416-572-2272

[email protected]

Virginia Morgan, Manager, IR and Communications

604-674-2268

[email protected]