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Capstone Mining 2017 Third Quarter Production Results

VANCOUVER, Oct. 11, 2017 (Canada NewsWire via COMTEX) --

Capstone Mining Corp. ("Capstone") (TSX: CS) today announced production results for the three and nine months ended September 30, 2017. Combined production totalled 22,000 and 67,000 tonnes of copper in the third quarter and year-to-date periods, respectively, with additional by-products of zinc, molybdenum, lead, silver and gold.

                                     Q3 and YTD 2017 Copper
                                        Production (tonnes)
                                     ----------------------

                                                         Q1                     Q2     Q3   YTD 2017
                                                        ---                    ---    ---   --------

     Pinto
     Valley                                          11,300                  15,500  14,400      41,200
     ------                                          ------                  ------  ------      ------

    Cozamin                                           4,100                   4,100   4,200      12,500
    -------                                           -----                   -----   -----      ------

    Minto                                             5,500                   4,400   3,400      13,300
    -----                                             -----                   -----   -----      ------

     Total
     copper
     production
     (1)                                            20,900                  24,000  22,000      67,000
     ----------                                      ------                  ------  ------      ------

    (1) Total production includes copper in concentrate and cathode production.

"Cozamin once again outperformed in the third quarter, partially offsetting lower production at Pinto Valley and Minto," said Darren Pylot, President and CEO of Capstone. "As we enter the fourth quarter, all operations are on track and we expect to achieve the low end of our guided production range for the year."

Operational Highlights

    --  At Pinto Valley, production was below expectations due to
        throughput disruptions caused by electrical outages in August
        and a second one in September. Remediation work on the affected
        circuit will be completed in October, however the plant is
        operating normally on a temporary repair. Additionally, focus
        in the quarter shifted from throughput maximization to overall
        mill optimization.
    --  Copper production at Cozamin exceeded expectations, driven by
        higher throughput. Mine development continues to advance ahead
        of schedule, increasing production flexibility at the
        operation.
    --  At Minto, production for the quarter continued to be impacted
        by mine sequencing changes to support the previously announced
        mine life extension. Underground mining was halted for six
        weeks in order to upgrade the emergency response capacity in
        the current stoping areas while development to the Minto East
        deposit continued. Partially oxidized ore from the Area 2,
        Stage 3 open pit and low grade stockpiles supplemented the mill
        feed during the quarter to offset the resulting underground ore
        shortfall, causing lower head grade and recoveries than
        originally planned.


    Q3 and YTD 2017 Operating Details
    --------------------------------

                                                       Pinto Valley                 Cozamin                    Minto
                                                       ------------                 -------                    -----

                                   Q3              YTD 2017         Q3       YTD 2017        Q3       YTD 2017
                                   ---             --------        ---       --------       ---       --------

    Contained Production (1)
    -----------------------

    - Copper (tonnes)                               14,381         41,171        4,242       12,478         3,403       13,328
    ----------------                                ------         ------        -----       ------         -----       ------

    - Zinc (tonnes)                            -           -         1,173        3,217            -            -
    --------------                           ---         ---         -----        -----          ---          ---

    -Molybdenum (Mo
     tonnes)                                   -           7              -           -           -            -
    ---------------                          ---         ---            ---         ---         ---          ---

    - Lead (tonnes)                            -           -            12           49            -            -
    --------------                           ---         ---           ---          ---          ---          ---

    - Silver (ounces)                               79,371        227,119      241,555      737,029        42,641      140,814
    ----------------                                ------        -------      -------      -------        ------      -------

    -Gold (ounces)
     (2)                                     79        3,499              -           -       8,484        22,093
    --------------                           ---        -----            ---         ---       -----        ------

    Payable Copper
     Production (1)
     (tonnes)                                       13,894         39,781        4,075       11,992         3,292       12,895

      (in concentrate and
       cathode)
      -------------------                                                                                             ---

    Mine
    ----

    -Ore (tonnes) -
     open pit                          5,210,618   15,258,387              -           -     224,174       800,346
    ---------------                    ---------   ----------            ---         ---     -------       -------

    - Waste (tonnes)                   6,465,014   19,608,566              -           -   1,187,504     5,507,271
    ---------------                    ---------   ----------            ---         ---   ---------     ---------

    -Ore (tonnes) -
     underground                               -           -       223,846      692,070       61,422       221,347
    ---------------                          ---         ---       -------      -------       ------       -------

    Mill
    ----

    -Tonnes
     processed                                   4,974,294     14,490,039      223,446      688,468       342,282    1,089,477
    ----------                                   ---------     ----------      -------      -------       -------    ---------

    -Tonnes
     processed per
     day                                            54,068         53,077        2,429        2,522         3,720        3,991
    --------------                                  ------         ------        -----        -----         -----        -----

    -Copper grade
     (%)                               0.31 (3)    0.31 (3)          1.98         1.89         1.31          1.47
    -------------                        -------     -------          ----         ----         ----          ----

    - Zinc grade (%)                          -           -          0.80         0.71            -            -
    ---------------                          ---         ---          ----         ----          ---          ---

    -Molybdenum
     grade (%)                                -       0.005              -           -           -            -
    -----------                              ---       -----            ---         ---         ---          ---

    - Lead grade (%)                          -           -          0.08         0.07            -            -
    ---------------                          ---         ---          ----         ----          ---          ---

    -Silver grade
     (g/t)                                     *           *          42.2         42.5          5.0           5.1
    -------------                            ---         ---          ----         ----          ---           ---

    -Gold grade (g/
     t)                                        *           *             -           -        0.62          0.91
    ---------------                          ---         ---           ---         ---        ----          ----

    Recoveries
    ----------

    - Copper (%)                       91.0 (3)    87.1 (3)          96.1         96.0         76.0          83.0
    -----------                          -------     -------          ----         ----         ----          ----

    - Zinc (%)                                -           -          65.7         65.9            -            -
    ---------                                ---         ---          ----         ----          ---          ---

    - Lead (%)                                -           -           7.0         10.1            -            -
    ---------                                ---         ---           ---         ----          ---          ---

    - Silver (%)                              *           *          79.7         78.3         77.2          78.9
    -----------                              ---         ---          ----         ----         ----          ----

    - Gold (%)                                *           *             -           -        73.8          58.6
    ---------                                ---         ---           ---         ---        ----          ----

    Concentrates
    ------------

    -Copper
     concentrate
     (dmt)                                          49,406        141,379       15,688       45,592         8,090       29,729
    ------------                                    ------        -------       ------       ------         -----       ------

                        Copper (%)                     28.1           28.1         27.0         27.4          42.1         44.8
                        ---------                       ----           ----         ----         ----          ----         ----

                        Silver (g/t)                       *             *       476.0        497.6         163.9        147.3
                        ------------                     ---           ---       -----        -----         -----        -----

                        Gold (g/t)                         *             *           -           -         19.5         19.5
                        ----------                       ---           ---         ---         ---         ----         ----

    -Zinc
     concentrate
     (dmt)                                     -           -         2,463        6,719            -            -
    ------------                             ---         ---         -----        -----          ---          ---

                        Zinc (%)                          -             -        47.6         47.9             -           -
                        -------                          ---           ---        ----         ----           ---         ---

    -Molybdenum
     concentrate
     (dmt)                                     -           -             -           -           -            -
    ------------                             ---         ---           ---         ---         ---          ---

    -Lead
     concentrate
     (dmt)                                     -           -            20           79            -            -
    ------------                             ---         ---           ---          ---          ---          ---

                        Lead (%)                          -             -        62.1         61.8             -           -
                        -------                          ---           ---        ----         ----           ---         ---

                        Silver (g/t)                       -             -       2,392        3,009             -           -
                        ------------                     ---           ---       -----        -----           ---         ---

    Payable Copper
     Shipped (tonnes)                               14,591         39,534        4,185       12,022         4,212       13,785
    -----------------                               ------         ------        -----       ------         -----       ------

    (1) Adjustments based on final
     settlements will be made in
     future periods. (2) Pinto Valley
     gold production reaches payable
     levels from time to time. Any
     payable gold production will be
     reported in the period revenue is
     received. At Minto, final gold
     production is not available since
     assaying is conducted off-site,
     but is estimated above. (3) Grade
     and recoveries were estimated
     based on concentrate production.
     *Silver and gold have not been
     estimated in the Pinto Valley
     resource model. Only recovered
     silver and payable gold is
     reported for this mine.

Operating Outlook

Capstone expects to reach the low end of the range of 2017 consolidated production guidance of 94,000 tonnes (±5%) of copper.

Financial Results Timing

Capstone will report Q3 2017 financial results on Thursday, October 26, 2017 after market close, followed by a conference call and webcast for investors and analysts on Friday, October 27, 2017 at 10:00 am Eastern Time (7:00 am Pacific Time).

Conference Call and Webcast Details

    Date:            Friday, October 27, 2017

    Time:            10:00 am Eastern Time (7:00 am Pacific Time)

    Dial in:         North America: 1-888-390-0546, International: +416-764-8688

    Webcast:         http://event.on24.com/r.htm?e=1521082&s=1&k=489A38C7B3561FDCCA3C27399CAE40D9

    Replay:          North America: 1-888-390-0541, International: +416-764-8677

    Replay Passcode: 218958#

The conference call replay will be available until Friday, November 3, 2017. The conference call audio and transcript will be available on Capstone's website within 48 hours of the call at http://capstonemining.com/investors/events-and-presentations/default.aspx.

About Capstone Mining Corp.

Capstone Mining Corp. is a Canadian base metals mining company, focused on copper. We are committed to the responsible development of our assets and the environments in which we operate. Our three producing mines are the Pinto Valley copper mine located in Arizona, US, the Cozamin polymetallic mine in Zacatecas State, Mexico and the Minto copper mine in Yukon, Canada. In addition, Capstone has two development projects; the large scale 70% owned copper-iron Santo Domingo project in Region III, Chile, in partnership with Korea Resources Corporation, and the 100% owned Kutcho copper-zinc project in British Columbia, Canada, as well as exploration properties in Chile and US. Capstone's strategy is to focus on the optimization of operations and assets in politically stable, mining-friendly regions, centred in the Americas. 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 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 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 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, 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", "expected", "potentially", "guidance" 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. In this document certain forward-looking statements are identified by words including "guidance", "planned" and "expects". 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, assumptions related to geotechnical condition of tailings facilities, future prices of copper and other metals, compliance with financial covenants, surety bonding, our ability to raise capital, counterparty risks associated with sales of our metals, use of financial derivative instruments and associated counterparty risks, 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 Pinto Valley, Cozamin and Minto 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 Santo Domingo Project, increased operating and capital costs, challenges to title to our mineral properties, 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 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 management's discussion and analysis 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

The technical information in this news release ("Technical Information") 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"). The disclosure of the Technical Information contained in this news release has been reviewed and approved by Gregg Bush, P. Eng., Capstone Senior Vice President and Chief Operating Officer, a Qualified Person under NI 43-101.

SOURCE Capstone Mining Corp.

View original content: http://www.newswire.ca/en/releases/archive/October2017/11/c8640.html

SOURCE: Capstone Mining Corp.

Cindy Burnett, VP, Investor Relations and Communications, 604-637-8157,
cburnett@capstonemining.com

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