Record Production For Capstone

Capstone Mining Corp. today reported that its Minto and Cozamin mines produced 74.1 million pounds of copper in concentrates in 2008. Capstone also reported achieving commercial production, effective January 1, 2009, of the most recent expansions at its Cozamin mine in Mexico and Minto Mine in Canada. With commissioning essentially complete at year-end for both mines, Capstone is now focused on fully realizing the benefits of expanded production levels at its mines for the full year, and is forecasting production of 95 million to 105 million pounds of copper contained in concentrates in 2009 at a total cash cost of approximately US$1.00 per pound.

"Capstone's two high grade copper mines both successfully completed their expansions by the end of 2008, increasing combined throughput by 140% since the Cozamin and Minto mines were originally commissioned in mid-2006 and mid-2007, respectively," said Darren Pylot, Vice Chairman & CEO of Capstone. "With the expansions complete, we are now focused on fully optimizing the output and production costs of both operations, with the objective of maximizing profitability. Cash flow from our operations is further enhanced by a robust forward sales program, where we have 104 million pounds of copper forward sold at an average price of US$2.52 per pound."

"In addition to its production activities, Capstone is completing major resource updates for both of its mines and its high grade Kutcho copper project; conducting the required work to support its Phase IV expansion at the Minto Mine based on increased resources and throughput; evaluating opportunities to redesign the Kutcho copper project as a robust, low cost operation; and continuing its highly successful exploration emphasis," said Stephen Quin, President & COO. "We aim to continue our organic growth, which has already seen two successful expansions at each of our mines in a short period of time, supported by strong resource increases, as well as look at external growth opportunities, backed by low cost production and a robust hedge book."