Capstone Reports Additional High Grade Copper-Gold Intercepts from the Copper Keel Deposit at the Minto Mine

VANCOUVER, May 2, 2011 /PRNewswire-FirstCall/ --

- Hole 10SWC770 Intercepts 4.6% Cu & 3.6g/t Au Over 6.1m Including 5.4% Cu & 3.4g/t Au Over 3.7m

- Hole 10SWC777 Intercepts 3.2% Cu & 1.8g/t Au Over 8.2m Including 4.5% Cu & 2.0g/t Au Over 4.0m

Capstone Mining Corp. (TSX: CS) announced assay results today for the first nineteen drill holes from the Copper Keel deposit completed this winter at the Minto Mine in the Yukon. Highlights from the first phase of the 2011 exploration holes are summarized in the table below, with complete results attached.

"The first phase of the 2011 program expanded the extents of the Copper Keel deposit and demonstrate that it is continuous to contiguous with the deeper levels of the Area 2/118 deposit, located to the northwest of Copper Keel and south of the Minto Main Pit," said Brad Mercer, Vice-President of Exploration for Capstone. "A new resource model, which is nearing completion, is expected to integrate the Wildfire/Copper Keel deposit into a larger framework that will combine the Area 2/118 and the Wildfire/Copper Keel deposits into one resource model. This will facilitate a more seamless approach for optimizing the development of a group of spatially and genetically related deposits in a tandem approach of open pit and underground mining where open pit pre-stripping of waste has already begun.

    Highlights of Recent Drilling at Copper Keel

    Hole ID   Target Area   From     To Interval Interval Copper  Gold Silver
                             (m)    (m)      (m)     (ft)    (%) (g/t)  (g/t)
    11SWC-762 Copper Keel  265.3  279.6     14.3     46.9   2.10  0.58    7.0
    including              269.3  274.0      4.7     15.4   4.74  1.16   15.4
    11SWC-765 Copper Keel  268.1  289.0     20.9     68.6   2.00  0.66    6.1
    including              271.8  276.8      5.0     16.4   3.12  0.90    9.1
    11SWC-770 Copper Keel  327.5  333.6      6.1     20.0   4.57  3.60   27.8
    including              327.5  331.2      3.7     12.1   5.41  3.43   29.8
    11SWC-777 Copper Keel  350.0  358.2      8.2     26.9   3.20  1.75   14.5
    including              350.0  354.0      4.0     13.1   4.49  2.01   20.6

Work on an initial resource estimate for the combined Wildfire/Copper Keel copper-gold deposit is nearing completion and is expected to be ready before the end of the second quarter of 2011. An updated resource estimate will also be prepared once the second phase of the 2011 drill campaign is completed, sometime in late summer.

2011 Exploration Plans at Minto

Drilling operations that are now paused for spring freshet are anticipated to resume in mid to late May once ground conditions have dried out at Copper Keel (which is still open to the east, northeast and northwest) and at Inferno, a new prospect discovered late last year. There are 15,960 metres of drilling remaining in the 2011 program out of a total program of 33,750 metres, which is expected to take seven to nine weeks to complete once drilling resumes. Construction of drill pads at Inferno, located a few hundred metres northeast of the Main Pit and mill, has begun.

Further drill results will be released over the coming months once they have been received and checked. Assay data for 25 holes drilled in the Copper Keel region are still outstanding.

Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. There is also no certainty that mineral resources will be converted to mineral reserves through further drilling and once economic considerations are applied.

Drill Hole Location Maps

For current drillhole locations please view the accompanying map: http://capstonemining.com/i/maps/2011-13CSCurrentDrillHoleLocations.jpg

For a current view of drill results in the Wildfire/Copper Keel area please view the accompanying map: http://capstonemining.com/i/maps/2011-13MintoDrillResultsUpdate.jpg

To see a recent panoramic view of the Area 2 open pit please view the accompanying photo: http://capstonemining.com/i/maps/2011-13Area2PrestripPanoramicView.jpg

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 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101") and reviewed by Brad Mercer, P. Geol., VP, Exploration of Capstone, a ("Qualified Person") as defined in National Instrument 43-101.

The analytical method for the copper and silver analyses is aqua regia digestion of the samples followed by atomic absorption spectroscopy. Gold is analysed by fire assay fusion with atomic absorption spectroscopy finish for gold. Analyses are carried out by ALS CHEMEX in North Vancouver. When visible gold is noted in drill core samples or regular fire assay values appear abnormally high, the pulp and screen metallic assay method is used to determine the total gold content and gold contents of different size fractions. This is considered industry best practice when dealing with coarse gold mineralization where a nugget effect is suspected. This determination is accepted as the most representative value and is used in the assay database for mineral resource calculations. Blank and standard samples are used for quality assurance and quality control. Where more than two check samples assay outside expected ranges, the entire batch is re-assayed. After the completion of planned drill programs at Minto, random check assays will be carried out by Inspectorate-IPL of Vancouver.

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 Mining Corp. (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 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 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 http://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.

Details of 2011 Wildfire/Copper Keel First Phase Drill Results To accompany Capstone Mining News Release Dated May 2, 2011

    Hole ID       Target     From    To Interval Interval Copper  Gold Silver
    & Interval                (m)   (m)      (m)   (feet)    (%) (g/t)  (g/t)
    11SWC-759     Copper    255.0 277.9     22.9     75.1   0.88  0.22    1.9
                    Keel
    including               256.0 264.4      8.4     27.6   1.72  0.39    2.8
    including               256.0 261.7      5.7     18.7   1.99  0.41    3.3

    11SWC-760     Copper    121.7 124.6      2.9      9.5   1.62  0.21    0.6
                    Keel
    and                     258.9 272.2     13.3     43.6   1.81  0.43    4.4
    including               262.6 267.3      4.7     15.4   2.85  0.49    5.1
    including               262.6 264.6      2.0      6.6   3.76  0.60    6.4

    11SWC-761     Copper    254.6 274.6     20.0     65.6   1.20  0.46    5.3
                    Keel
    including               259.8 264.6      4.8     15.7   2.30  0.67    7.7
    including               259.8 262.2      2.4      7.9   3.45  0.84    8.9

    11SWC-762     Copper    265.3 279.6     14.3     46.9   2.10  0.58    7.0
                    Keel
    including               269.3 274.0      4.7     15.4   4.74  1.16   15.4
    including               269.3 272.1      2.8      9.2   6.50  1.51   21.3
    11SWC-763     Copper    267.1 282.4     14.3     46.9   1.31  0.36    2.9
                    Keel
    including               268.1 273.3      5.2     17.1   1.88  0.50    3.8
    11SWC-764     Copper    231.4 242.4     11.0     36.1   1.13  0.27    3.1
                    Keel
    11SWC-765     Copper    268.1 289.0     20.9     68.6   2.00  0.66    6.1
                    Keel
    including               271.8 276.8      5.0     16.4   3.12  0.90    9.1
    11SWC-766     Copper    266.1 275.0      8.9     29.2   1.62  0.48    5.5
                    Keel

    11SWC-767     Copper    285.5 287.7      2.2      7.2   0.53  0.09    3.0
                    Keel
    and                     305.7 312.0      6.3     20.7   0.43  0.10    1.4

    11SWC-768     Copper    252.4 263.4     11.0     36.1   0.66  0.16    1.2
                    Keel
    and                     285.0 286.5      1.5      4.9   0.99  0.47    3.6
    and                     295.9 302.0      6.1     20.0   1.16  0.65    8.5
    including               297.3 302.0      4.7     15.4   1.33  0.79   10.7

    11SWC-769     Copper    277.0 289.9     12.9     42.3   1.23  0.37    3.6
                    Keel
    including               279.0 287.0      8.0     26.2   1.75  0.50    4.7
    11SWC-770     Copper    275.8 280.6      4.8     15.7   1.29  0.31    2.3
                    Keel
    and                     327.5 333.6      6.1     20.0   4.57  3.60   27.8
    including               327.5 331.2      3.7     12.1   5.41  3.43   29.8
    11SWC-771     Copper    252.8 265.2     12.4     40.7   1.45  0.34    2.4
                    Keel
    11SWC-772     Copper    302.7 313.6     10.9     35.8   1.24  0.83    7.5
                    Keel
    including               310.9 313.6      2.7      8.9   1.90  1.85   16.4
    11SWC-773     Copper    255.4 265.8     10.4     34.1   1.04  0.26    1.7
                    Keel
    including               255.4 260.0      4.6     15.1   1.43  0.34    1.8
    11SWC-774     Copper    298.4 301.3      2.9      9.5   0.62  0.25    2.0
                    Keel
    and                     345.7 349.3      3.6     11.8   1.23  0.70    7.0
    11SWC-776     Copper    343.0 349.0      6.0     19.7   1.12  0.44   11.9
                    Keel
    11SWC-777     Copper    309.9 314.2      4.3     14.1   0.84  0.37    1.9
                    Keel
    and                     350.0 358.2      8.2     26.9   3.20  1.75   14.5
    including               350.0 354.0      4.0     13.1   4.49  2.01   20.6
    11SWC-778     Copper    Geochemically Anomalous - No Significant
                    Keel    Intersections

    For further information:

    Capstone Mining Corp.
    Cindy Burnett, VP, Investor Relations
    Telephone: +1-604-637-8157
    Email: [email protected]
    Website: http://www.capstonemining.com

SOURCE Capstone Mining Corp.