Capstone Commences Exploration Drilling at its Cozamin Mine, Mexico

Testing Targets Along High Grade Mala Noche Vein, in Parallel Structures & Satellite Targets

VANCOUVER, April 21, 2010 - Capstone Mining Corp. (CS: TSX) today announced that it has commenced
exploration diamond drilling at its Cozamin Mine in Zacatecas State, Mexico
. The immediate focus for this drilling is to explore areas along the Mala
Noche vein system (which hosts all of the current mineral resources and
mineral reserves at the Cozamin mine) that are in close proximity to the
current workings and existing mine infrastructure. A second phase of
drilling is planned for later in the year to test targets that lie off the
Mala Noche vein structure, and away from the mine workings. As reported on
March 22, 2010, exploration expenditures at Cozamin are forecast to total
US$3 million in 2010.

Limited drilling has already been conducted on one target located in
the footwall of the Mala Noche vein, adjacent to the current production
areas, called the "Mala Noche Footwall Zone". Using a small diamond drill
owned by the mine, several significant intercepts of copper mineralization
have already been located. A second high priority target lies immediately
east of the Avoca stopes currently being mined, where mineral reserve
grades and thicknesses are greatest. This target lies beyond the limits of
the current mineral resources and mineral reserves, which have an
artificial boundary at a historic claim boundary, on claims that were
purchased.

"Four priority targets in close proximity to our Cozamin Mine will be
drill tested in the coming months," said Stephen P. Quin, President & COO
of Capstone Mining. "These targets represent the first of a number of
targets generated from a sustained 12-month property-wide assessment of the
exploration potential of the Cozamin Mine property and suggest significant
potential for the discovery of new mineral resources within the principal
known vein system that hosts all the currently known mineral resources and
mineral reserves, as well as in parallel hydrothermal systems."

2010 Exploration Plan

The 2010 exploration plan is proceeding along two parallel tracks. The
immediate focus is on targets within the Mala Noche vein system that are
within close proximity to the current mine workings of haulages, ramps and
drifts. Any mineral resources discovered in these areas could easily be
drill defined and accessed via extensions from existing workings. The
second exploration priority in 2010 will be to start testing standalone
targets that lay within Capstone's current claims, near to the Cozamin mill
, but which cannot be accessed through the current system of mine workings.

Phase 1 Priority Targets

————————

Four targets have been identified for immediate testing; three lie on
strike within the Mala Noche vein structure and a fourth is in a sub-
parallel structure hosting a vein and breccias complex. From west to east
the four targets are identified as the Mala Noche West, Mala Noche Footwall
, Avoca Extension and San Rafael Deep. The Mala Noche Footwall target is
located in the footwall rocks of the Mala Noche Vein, within tens of metres
to a few hundred metres of the current mine workings. Due to the proximity
of and access to existing mine workings, this target will be drill tested
first, over a 200m by 600m area. Drilling of the highest priority target,
the Avoca Extension target, will start once a new underground cross-cut and
drill stations are completed. Surface drilling will examine the San Rafael
Deep target, below the mineral resources defined in the San Rafael area in
2008, and then the Mala Noche West target, a new area identified through
exploration conducted by Capstone in 2009-10 that may represent the western
extension of the Mala Noche vein system. Surface drilling is expected to
commence in June 2010.

Capstone is currently focused on exploration of the most obvious
targets reaching close proximity to the current underground infrastructure.
However, in addition to the four targets mentioned above and described
below, Capstone is also advancing multiple additional stand-alone
exploration targets on its Cozamin claims based upon geophysics,
geochemistry (rock and soil) and geological mapping. Some of these other
targets may be drill tested from surface later in the year, after the near
mine drilling is completed, and/or in future years.

For target locations relative to the current mine workings please view
the accompanying long-section view:

www.capstonemining.com/i/photos/cozamin/2010-13Cozamin01.pdf

Avoca Extension

The Avoca Extension target is located immediately adjacent to active
mining areas of the Cozamin Mine, where Avoca-style bulk mining is being
utilized to extract ore from the widest and highest grade sections of the
Mala Noche vein. The current mineral resource model suggests that the
mineralization is open toward the east, but was not drilled in the past
because Capstone did not own the claims over the target area. Capstone has
since acquired these claims, as announced on September 8th, 2009. Due to
the obvious potential and proximity to an important and active part of the
mine, Capstone considers the Avoca Extension a priority target and drifting
will commence shortly to provide an approximately 300m cross-cut into the
Mala Noche hanging wall to facilitate access for underground drill testing.

For target location relative to the current mine workings please view
the accompanying long-section view:

www.capstonemining.com/i/photos/cozamin/2010-13Cozamin02.pdf

Mala Noche Footwall

The Mala Noche Footwall target is a composite vein and breccia body
hosted in a parallel to sub-parallel structure adjacent to the main
production horizon at Cozamin, the Mala Noche vein. The Mala Noche Footwall
structure follows a rhyolite dyke that lies in the footwall strata of the
Mala Noche vein at a variable distance from the main mine workings. Insofar
as is currently known, the Mala Noche Footwall zone appears to have a
similar, moderately north inclination as the Mala Noche vein.
Mineralization in the Mala Noche Footwall zone is strongly chalcopyrite
dominated, as compared to the Mala Noche vein proper, which is
predominantly zoned polymetallic mineralization. The Mala Noche Footwall
mineralization intercepts to date are comprised of massive to semi-massive
stringers within quartz veins or as coarse grained disseminations within
associated hydrothermal breccias.

The zone was discovered in drill hole CG-04-27 drilled in 2004 when a
significant interval of quartz stockworking with chalcopyrite
mineralization hosted in rhyolite dike was cut 30m below the Mala Noche
vein. This intercept was not followed up at the time since exploration work
was concentrated on developing a mineral resource within the Mala Noche
vein prior to constructing the present mining operation. Subsequent
deepening of the central internal ramp, below Level 10 in the mine, cut
significant chlorite-epidote alteration in the footwall to the Mala Noche
vein. Subsequently, further development in the footwall on Level 12 exposed
strong chlorite-epidote alteration and local chalcopyrite mineralization
over a distance of 200m. These results rekindled interest in the footwall
target and drilling in 2010 (using the Company's small underground rig from
drill stations in the ramp) cut mineralization in four holes. Assays have
been received from two of these holes and are presented below.

                      2010 Mala Noche Footwall Drilling
    -------------------------------------------------------------------------
    Hole ID       Target   From    To  Interval Silver Copper   Lead   Zinc
                   Area     (m)    (m)  (m)(x)   (g/t)   (%)     (%)    (%)
    -------------------------------------------------------------------------
                    MN
    UG-ING-14    Footwall  57.00  59.00   2.00   11.0    0.67    0.01   0.19
    -------------------------------------------------------------------------
    including              58.25  59.00   0.75   21.0    1.21    0.01   0.49
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                    MN
    UG-ING-15    Footwall  35.25  37.75   2.50   30.6    2.09    0.01   0.06
    -------------------------------------------------------------------------
    including              36.00  36.50   0.50   97.5    6.71    0.01   0.21
    -------------------------------------------------------------------------
                    MN
    And          Footwall  63.00  65.00   2.00   52.1    2.63    0.07   0.17
    -------------------------------------------------------------------------
    including              63.25  63.75   0.50  179.5    9.36    0.22   0.33
    -------------------------------------------------------------------------
     (x)There is currently insufficient drill data to determine the geometry
     of this zone and estimate true thicknesses of these mineralized
     intercepts.

Capstone used its small production oriented underground core drill,
which has limited capacity, to obtain the drill intercepts listed above in
an initial "proof of concept" drill program. Given the encouraging results,
noted in the above table, Capstone is bringing in a drill contractor with a
rig of sufficient capacity to test this zone along a strike length of 600
metres and a dip extent of 200 metres using the existing mine workings for
drill platforms.

For proposed drillhole plan including completed holes please view the
accompanying long-section:

www.capstonemining.com/i/photos/cozamin/2010-13Cozamin03.pdf

Mala Noche West

The Mala Noche West target is an area located to the west of the
current mine workings. On surface, the area is a recessive weathering
valley, with no bedrock exposure, and little is known about the prospective
geology. Capstone intends to drill this area from surface, targeting the
projected location of the Mala Noche vein, and stepping out incrementally
from the last know location in the mineral resource model. Capstone
considers this a particularly interesting area since several other vein
systems (located to the south of the Mala Noche Vein) that have seen past
production project into this area. The intersection point of these various
systems lies in the vicinity of the recessive feature mentioned above,
which has coincident soil geochemical and geophysical anomalies.

San Rafael Deep

The San Rafael Deep program is a continuation of the successful
drilling conducted in 2008 that led to a new mineral resource estimate for
San Rafael, as initially announced by the Company on February 18, 2009. In
2010, two holes are planned from surface to drill down dip from the
previously announced mineral resource in order to probe the Mala Noche
system and gain knowledge about the potential for mineralization in an area
not previously tested.

For target location relative to the current mine workings and current
mineral resources please view the accompanying long-section view:

www.capstonemining.com/i/photos/cozamin/2010-13Cozamin04.pdf

Quality Assurance/Quality Control

The technical information in this news release has been prepared in
accordance with Canadian regulatory requirements set out in National
Instrument 43-101 and reviewed by Stephen P. Quin, P. Geo., President & COO
for Capstone Mining Corporation. The exploration activities at the Cozamin
Mine are carried out under the supervision of Brad Mercer, P. Geol., V.P.
Exploration for Capstone. The following employees of Capstone, each a
Qualified Person, reviewed Technical Information contained in this news
release: Brad Mercer, P. Geol., V.P. Exploration for Capstone and
consulting geologist Hugh Willson, Professional Geologist, respectively
reviewed the technical content of this news release. Analyses for copper,
zinc, lead, silver and gold were completed by ALS Chemex using the
following method. The entire sample is crushed to a minimum of 70% minus 10
mesh. A 250g subsample of the crushed material is then pulverized to 85%
minus 200 mesh. Gold and silver grades are determined by gravimetric fire
assay using a 50g charge taken from the pulverized material. Copper, zinc
and lead are determined by ICP analysis after 4 acid digestion of a 0.4g
subsample of the pulverized material.

The TSX does not accept any responsibility for the adequacy or
accuracy of this press release.

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
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.

For further information: about Capstone, please contact: Darren Pylot,
Vice Chairman & CEO, Stephen Quin, President & COO; Or Investor Relations'
Zobeida Slogan at +1-(604)-684-8894 or +1-(866)-684-8894,
zslogan@capstonemining.com/

For further information: about Capstone, please contact: Darren Pylot, Vice Chairman & CEO, Stephen Quin, President & COO; Or Investor Relations' Zobeida Slogan at +1-(604)-684-8894 or +1-(866)-684-8894, zslogan at capstonemining.com/