Capstone Mining Board of Director Changes

VANCOUVER, June 20, 2011 -

Capstone Mining Corp. (”Capstone” or the “Company”) (TSX: CS)
today announced the following changes to its board of directors
upon completion of the arrangement (the “Arrangement”) with Far
West Mining Ltd. and long-term strategic partnership with Korea
Resources Corporation (”KORES”) for the development of the Santo
Domingo project in Chile.

Additions to the
Board

Rick Zimmer, P.Eng., M.B.A, was President and CEO of Far
West Mining Ltd.  He has over 30 years of Canadian and
international mining experience, including leadership of operating,
development and construction projects in the mining and natural
resource sectors.

Hak-Kyun Shin, P. Eng., is the Director General
for Business Development/Foreign Investment for KORES and
previously was Director for the Coal Business Development/Foreign
Investment before becoming the COO at the Toronto Office and a
Director for KORES Canada Corp.

Jan Castro is the Chief Executive Officer of Pala
Investments AG, the exclusive advisor to Pala Investments Holdings
Ltd., a multi-strategy investment company dedicated to investing
in, and creating value across, the mining sector in both developed
and emerging markets.

Colin Benner and Stephen Quin have tendered their resignations
to the board following the completion of the Arrangement.

“We would like to welcome Messrs. Zimmer, Shin and Castro to
Capstone’s board at this transformational time for the Company,”
said Darren Pylot, President and CEO of Capstone.  “We are
looking forward to having their counsel as we advance the company,
and particularly the development of the Santo Domingo project.”

“I would also like to take this opportunity to thank Colin and
Stephen for their substantial contributions to the development of
Capstone,” continued Mr. Pylot.  “Colin was Chairman of the
board of both Capstone and its predecessor, Sherwood Copper. 
Stephen co-founded Sherwood Cooper, which under his leadership put
the Minto mine into production and acquired the Kutcho
project.  Both Colin and Stephen were instrumental in leading
the Sherwood team through the merger with Capstone and have
continued to provide invaluable direction as we have grown
Capstone.”

About Capstone
Mining Corp.

Capstone Mining Corp. is a TSX listed Canadian mining company
with two producing copper mines in the Americas: the
Cozamin copper-silver-zinc-lead mine located in Zacatecas
State, Mexico and the Minto copper-gold-silver
mine in Yukon, Canada.

Using its operations as a springboard, Capstone aims to grow
organically and through acquisitions in politically stable,
mining-friendly jurisdictions, with a focus in the Americas:
organic growth through continued mineral resource and reserve
expansions as well as expanding operations at its operating mines,
development of its large 70% owned Santo Domingo copper-iron-gold
project in Chile in partnership with Korea Resources Corporation,
development of its Kutcho copper-zinc-gold-silver project in
British Columbia and exploration at properties in Chile, British
Columbia and Australia.  Capstone’s cash flow and strong
balance sheet provide the platform to enhance that growth
profile.  Capstone is included in the S&P/TSX Composite
Index and S&P/TSX Global Mining Index.  Additional
information is available at href="www.capstonemining.com">www.capstonemining.com
.

Forward-Looking
Statements

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. 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
Capstone to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements.

For further information:

Capstone Mining Corp.
Cindy Burnett, VP Investor Relations
Telephone: +1-604-637-8157
Email:  href="mailto:cburnett@capstonemining.com">cburnett@capstonemining.com

Website: www.capstonemining.com

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