Capstone Reports 8th High Grade Copper-Gold Discovery & Major Step Out at Minto Mine

Hole 10SWC750 Intercepts 15.3% Cu & 4.4g/t Au Over 2.6m at Inferno Discovery

VANCOUVER, December 9, 2010 - Capstone Mining Corp. (CS: TSX) today announced two separate exploration
developments at its Minto Mine in the Yukon Territory: the discovery of a new
high grade copper-gold zone, designated "Inferno", northeast of the Minto
Main deposit, and a 250m extension to the northeast of the Wildfire/Copper
Keel mineralization discovered and drill defined in 2010. The mineralization
in both areas was detected by a deep penetrating IP survey conducted earlier
this year. Drilling highlights are summarized in the table below while the
full results for nine new holes released today are in the table attached.

Drilling Highlights for the Inferno Discovery and Step-out Drilling at
Copper Keel

    Hole ID   Target Area    From   To  Interval Interval Copper Gold  Silver
                              (m)   (m)   (m)      (ft)    (%)   (g/t) (g/t)
    10SWC-739 Copper Keel NE 259.0 277.6  18.6     61.0    1.95  0.52   4.8
    including                259.0 269.5  10.5     34.4    2.60  0.65   6.5
    10SWC-746 Inferno         31.6  61.4  29.8     97.8    0.82  0.57   6.1
    and                      278.3 282.3   4.0     13.1    3.19  1.83  11.3
    10SWC-750 Inferno        273.6 276.2   2.6      8.5   15.26  4.39  67.7
    10SWC-757 Copper Keel NE 264.7 279.8  15.1     49.5    1.71  0.50   4.2
    including                265.8 271.2   5.4     17.7    2.48  0.86   6.2
    10SWC-758 Copper Keel NE 242.6 261.7  19.1     62.7    1.88  0.46   3.6
    including                242.6 249.7   7.1     23.3    3.28  0.71   4.7

"The continued exploration success at Minto validates the new approaches
and techniques utilized in 2010 and bodes well for future exploration," said
Stephen Quin, President of Capstone. "Particularly encouraging is the
identification of a potential parallel trend of mineralization to the one we
have been focused on for the past four years," he said. "While less well
explored, this second axis of mineralization already hosts four discoveries
made in the past 12 months."

Inferno Discovery and Copper Keel Step-out

Earlier this year Capstone completed a property-wide Titan-24 deep
penetrating Induced Potential ("IP") survey and identified a number of
chargeability anomalies in areas untested by previous drilling; the high
grade mineralization at Inferno and Copper Keel Northeast were both
discovered by drill testing two of these targets.

The Inferno anomaly was selected for drill testing because of its
position relative to the Minto Main deposit (currently being mined by open
pit methods), located immediately on the north side of the DEF fault, a deep
regional structure that terminates the Minto Main deposit at its north end.
Drilling to date has intersected a shallower, moderate grade zone underlain
by a narrower, high grade zone. Inferno may represent the off-faulted
extension of the Minto Main deposit. The Titan-24 survey suggests that the
four holes completed to date at Inferno have tested the northern end of a
chargeability anomaly that extends more than 300 metres south of this
drilling. This additional potential will be evaluated when drilling resumes
in early 2011.

The 3D inversion model of the Titan-24 data also identified a distinct
bulls-eye chargeability anomaly centered about 250m north of the nearest
Wildfire/Copper Keel drilling and 250 metres east of any pre-2010 Copper Keel
drill holes. Drilling, and a recent new geology interpretation, suggests this
area of thick, high grade mineralization is the continuation of the Copper
Keel horizon, the most laterally continuous mineralized horizon discovered to
date at Minto. Capstone's most recent 3D geology model supports continuity
between Area 2, Copper Keel and Copper Keel Northeast, and now geophysics
(corroborated by drilling) suggests continuity all the way to Copper Keel
South, a distance of over 1,000m. Infill drilling between Copper Keel
Northeast and the main Copper Keel zone will occur in 2011.

It is also worth noting the alignment of the Inferno, Minto East, Copper
Keel North, Wildfire and Copper Keel South mineralization along an axis
approximately parallel to the Minto North, Minto Main, Area 2 and Ridgetop
axis that had been the priority exploration focus prior to 2010. Given the
productivity of the latter trend, the recognition of a second mineralized
axis could provide a new focus for exploration.

With the release of the nine drillholes contained herein, results for an
additional 45 holes remain to be received and should be all released between
now and mid-January 2011. Once all of the assays from 2010 drilling are
received Capstone will proceed with a maiden resource estimate for Wildfire
(2 horizons) and Copper Keel (1 horizon). Mineralized trends in this stacked
sub-horizontal system partially overlap and are clearly open in several
directions. The new resource model is expected be a catalyst for further
exploration drilling in 2011.

For current drillhole locations please view the accompanying map:
www.capstonemining.com/i/photos/minto/2010-56MintoProperty.jpg

For a current view of drill results in priority areas across the property
please view the accompanying map:
www.capstonemining.com/i/photos/minto/2010-56MintoDrillResults
Update.jpg

(Due to the length of this URL, it may be necessary to copy and paste
this hyperlink into your Internet browser's URL address field. Remove the
space if one exists.)

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 and reviewed by Stephen P. Quin, P. Geo.,
President of Capstone Mining Corp. The exploration activities at the Minto
Mine are carried out under the supervision of Brad Mercer, P. Geol., VP,
Exploration of Capstone. 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 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 Mining Corp. (the "Company") does not intend, and does not assume
any obligation, to update these forward-looking statements.

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 mineral 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.

             Details of Recent Inferno and Copper Keel Drill Results
      To accompany Capstone Mining News Release Dated December 9, 2010

     Hole ID    Target   From(m)  To(m) Interval Interval Copper Gold  Silver
    & Interval                             (m)     (feet)   (%)   (g/t) (g/t)
    10SWC-700  Wildfire/
               Ridgetop    76.2    88.2    12.0    39.4    0.28  0.06    0.5

    10SWC-703  Wildfire    87.8   100.2   12.4     40.7    1.29  0.51    4.8
    including              87.8    93.6    5.8     19.0    2.27  0.96    8.7
       And     Wildfire   144.5   153.7    9.2     30.2    0.85  0.26    2.0
    including             149.5   153.7    4.2     13.8    1.28  0.37    3.0
       And      Copper
                 Keel     169.4   175.9    6.5     21.3    1.01  0.26    2.7

    10SWC-723   Inferno    61.9    75.9   14.0     45.9    1.14  0.59    5.5
    including              67.8    74.7    6.9     22.6    1.82  0.94    9.0

    10SWC-739   Copper
                Keel NE   259.0   277.6   18.6     61.0    1.95  0.52    4.8
    including             259.0   269.5   10.5     34.4    2.60  0.65    6.5
    including             262.9   266.6    3.7     12.1    3.31  0.86   10.1

    10SWC-746   Inferno    31.6    61.4   29.8     97.8    0.82  0.57    6.1
       And                278.3   282.3    4.0     13.1    3.19  1.83   11.3

    10SWC-750   Inferno   273.6   276.2    2.6      8.5   15.26  4.39   67.7
    including             274.2   276.3    2.1      6.9   19.39  5.49   85.5
       And                330.6   345.0   14.4     47.2    1.07  0.57    5.3
    including             339.6   345.0    5.4     17.7    2.03  1.14    9.7

    10SWC-754   Copper
                Keel NE   262.8   282.4   19.6     64.3    2.23  0.60    8.5
    including             268.6   273.3    4.7     15.4    4.60  1.21   21.7

    10SWC-757   Copper
                Keel NE   264.7   279.8   15.1     49.5    1.71  0.50    4.2
    including             265.8   271.2    5.4     17.7    2.48  0.86    6.2

    10SWC-758   Copper
                Keel NE   242.6   261.7   19.1     62.7    1.88  0.46    3.6
    including             242.6   249.7    7.1     23.3    3.28  0.71    4.7
       And                285.2   290.0    4.8     15.7    1.18  0.39    3.1

For further information: Darren Pylot, Vice Chairman & CEO or Stephen
Quin, President Or Investor Relations' Jason Howe at +1-604-684-8894 or
+1-866-684-8894 or e-mail Capstone at info@capstonemining.com

For further information: Darren Pylot, Vice Chairman & CEO or Stephen Quin, President
Or Investor Relations' Jason Howe at +1-604-684-8894 or +1-866-684-8894 or
e-mail Capstone at info at capstonemining.com