Capstone Reports Additional High Grade Copper-Zinc Intercepts From Kutcho Project

Hole KC10-202 Intercepts 6.2% Cu, 11.7% Zn, 1.1g/t Au & 68.5g/t Ag over 10.2m

VANCOUVER, November 17, 2010 - Capstone Mining Corp. (CS: TSX) today announced additional high grade
intercepts from the last batch of drill holes from 2010 on its high grade
Kutcho Copper-Zinc Project. As previously reported, the drill program
followed up on a recommendation in the Preliminary Economic Assessment
("PEA") announced on July 13, 2010 to increase the confidence in
approximately 1.1 million tonnes of high grade but inferred class mineral
resources in the Esso deposit. A new NI43-101 Mineral Resource estimate is
nearing completion and will be announced before the end of 2010. This
drilling is one of several initiatives being pursued in order to advance the
project to completion of a pre-feasibility study. Highlights for the final
batch of drill holes from 2010 are summarized below, while full results are
attached. In situ copper equivalent grades are provided for illustrative
purposes, based on the metal prices assumed in the PEA. Results for previous
holes were announced in August and September.

                 Highlights of Esso Drilling - Kutcho Project
    -------------------------------------------------------------------------
                                                                        CuEq
    Hole Target From  To   Interval    Interval Copper Zinc Gold Silver  (%)
    ID   Area   (m)   (m)   (m)(x)      (ft)(x)   (%)   (%) (g/t) (g/t) (xx)
    -------------------------------------------------------------------------
    KC10-
    185  Esso 459.4 480.2 20.8 (18.5) 68.2 (60.7) 3.63  3.36 1.02 139.4  6.6%
    -------------------------------------------------------------------------
    Incl-
    uding     472.1 476.0   3.9 (3.5) 12.8 (11.5) 8.14  1.40 1.00 339.3 12.2%
    -------------------------------------------------------------------------
    KC10-
    188  Esso 477.3 488.5 11.2 (10.9) 36.7 (35.8) 3.58  9.29 0.46  37.1  7.5%
    -------------------------------------------------------------------------
    KC10-
    197  Esso 419.4 428.6   9.2 (8.2) 30.2 (26.9) 2.38  9.90 0.32  13.5  6.2%
    -------------------------------------------------------------------------
    Incl-
    uding     420.2 423.2   3.0 (2.7)   9.8 (8.9) 4.00 30.88 0.37  20.5 15.4%
    -------------------------------------------------------------------------
    KC10-
    198  Esso 520.3 545.3 25.0 (19.2) 82.0 (63.0) 3.61  3.07 1.29 124.8  6.5%
    -------------------------------------------------------------------------
    KC10-
    202  Esso 485.8 496.0  10.2 (8.9) 33.5 (29.2) 6.20 11.66 1.10  68.5 11.6%
    -------------------------------------------------------------------------

    (x)    The values in parenthesises are estimated true thicknesses based
           upon the current 3D interpretation of the Esso horizon.
    (xx)   In situ Copper Equivalent Grades (CuEq) are calculated using the
           same US$ metal price assumptions used in the July 6, 2010
           Preliminary Economic Assessment (Copper (equal sign) $2.25/lb;
           Zinc (equal sign) $0.80/lb; Gold (equal sign) $850.00/oz;
           Silver (equal sign) $13.50/oz), are for illustrative purposes and
           do not take into account metal recoveries.

"The results of the infill drill program completed in the Esso deposit
exceeded expectations," said President, Stephen Quin. "Not only have we
confirmed the continuity of the Esso mineralization, but have intercepted the
highest grades ever encountered on the Kutcho property and over significant
intervals. Further, this drilling demonstrated continuity of the high grade
mineralization over significant distances," he said. "It is now clear that
the Esso deposit will be an important contributor to the economics of the
Kutcho Project, and extracting these very high grades early in the mine life
should enhance the project return."

Kutcho Work Program

As reported in the August 5, 2010 news release, Capstone is undertaking a
work program based on the recommendations of the recently completed PEA on
the Kutcho Project. The PEA demonstrated potential for robust economics
through the underground extraction of high grade copper-zinc-gold-silver
mineralization from the Main and Esso deposits, followed by conventional
flotation and production of copper and zinc concentrates. The PEA recommended
advancing the project through completion of a Pre-feasibility Study (PFS) and
contained a number of recommendations in order to achieve that objective,
including infill drilling the Esso deposit to support mineral reserve
estimation (done), optimization of metallurgical parameters (underway) and
reviewing opportunities to reduce capital and operating costs (underway).

For current drillhole locations please view the accompanying map:

www.capstonemining.com/i/photos/kutcho/2010-48CS_DrillholeLocation
sWithCuXmetres.jpg

For a current view of drill results in priority areas across the property
please view the accompanying map:

www.capstonemining.com/i/photos/kutcho/2010-48CS_DrillholeLocation
sWithZnXmetres.jpg

(Due to the length of these URLs, it may be necessary to copy and paste
the hyperlinks 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. and Brad Mercer, P. Geo., VP, Exploration of Capstone.
The exploration activities at the Minto project site are carried out under
the supervision of Brad Mercer, P. Geo., 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 Latest ESSO Deposit Drill Results - Kutcho Project
        -------------------------------------------------------------
      To Accompany Capstone Mining News Release Dated November 17, 2010
    -------------------------------------------------------------------------
                                                                         CuEq
    Hole Target From To    Interval    Interval  Copper Zinc Gold Silver  (%)
    ID    Area  (m)  (m)    (m)(x)     (ft)(x)     (%)   (%) (g/t) (g/t) (xx)
    -------------------------------------------------------------------------
    KC10-
    185  Esso 459.4 480.2 20.8 (18.5) 68.2 (60.7) 3.63  3.36 1.02 139.4  6.6%
    -------------------------------------------------------------------------
    Incl-
    uding     472.1 476.0   3.9 (3.5) 12.8 (11.5) 8.14  1.40 1.00 339.3 12.2%
    -------------------------------------------------------------------------
    KC10-
    186  Esso 480.5 500.2 19.7 (18.5) 64.6 (60.7) 1.75  7.62 0.52  46.2  5.2%
    -------------------------------------------------------------------------
    Incl-
    uding     493.4 494.8   1.4 (1.3)   4.6 (4.3) 5.38 25.24 0.25  22.4 14.7%
    -------------------------------------------------------------------------
    KC10-
    187  Esso      Geochemically Anomalous - No Significant Intersections
    -------------------------------------------------------------------------
    KC10-
    188  Esso 477.3 488.5 11.2 (10.9) 36.7 (35.8) 3.58  9.29 0.46  37.1  7.5%
    -------------------------------------------------------------------------
    KC10-
    189  Esso                Hole Abandoned Short of Target
    -------------------------------------------------------------------------
    KC10-
    190  Esso 541.5 544.1   2.6 (2.4)   8.5 (7.9) 0.94  0.07 0.17  9.18  1.1%
    -------------------------------------------------------------------------
    KC10-
    191  Esso 530.4 531.7   1.3 (1.0)   4.3 (3.3) 2.69  3.92 0.33  83.5  5.0%
    -------------------------------------------------------------------------
    KC10-
    192  Esso                Hole Abandoned Short of Target
    -------------------------------------------------------------------------
    KC10-
    193  Esso 453.7 458.9   5.2 (4.8) 17.1 (15.7) 1.49  2.71 0.22  18.6  2.7%
    -------------------------------------------------------------------------
    KC10-
    194  Esso                Hole Abandoned Short of Target
    -------------------------------------------------------------------------
    KC10-
    195  Esso      Geochemically Anomalous - No Significant Intersections
    -------------------------------------------------------------------------
    KC10-
    196  Esso 544.4 549.2   4.8 (4.0) 15.7 (13.1) 1.58  0.23 0.22  27.1  2.0%
    -------------------------------------------------------------------------
    KC10-
    197  Esso 419.4 428.6   9.2 (8.2) 30.2 (26.9) 2.38  9.90 0.32  13.5  6.2%
    -------------------------------------------------------------------------
    Incl-
    uding     420.2 423.2   3.0 (2.7)   9.8 (8.9) 4.00 30.88 0.37  20.5 15.4%
    -------------------------------------------------------------------------
    KC10-
    198  Esso 520.3 545.3 25.0 (19.2) 82.0 (63.0) 3.61  3.07 1.29 124.8  6.5%
    -------------------------------------------------------------------------
    KC10-
    199  Esso 521.7 533.1 11.4 (10.3) 37.4 (33.8) 2.06 15.21 1.05  61.0  8.6%
    -------------------------------------------------------------------------
    Incl-
    uding     524.8 529.1   4.3 (3.9) 14.1 (12.8) 1.90 36.19 1.50  76.9 16.3%
    -------------------------------------------------------------------------
    KC10-
    200  Esso 484.1 487.8   3.7 (3.2) 12.1 (10.5) 2.40  9.07 0.85  55.9  6.6%
    -------------------------------------------------------------------------
    KC10-
    201  Esso 493.5 495.0   1.5 (1.4)   4.9 (4.6) 0.77 15.73 0.21  11.4  6.6%
    -------------------------------------------------------------------------

    KC10-
    202  Esso 485.8 496.0  10.2 (8.9) 33.5 (29.2) 6.20 11.66 1.10  68.5 11.6%
    -------------------------------------------------------------------------

    (x)    The values in parenthesises are estimated true thicknesses based
           upon the current 3D interpretation of the Esso horizon.
    (xx)   In situ Copper Equivalent Grades (CuEq) are calculated using the
           same US$ metal price assumptions used in the July 6, 2010
           Preliminary Economic Assessment (Copper (equal sign) $2.25/lb;
           Zinc (equal sign) $0.80/lb; Gold (equal sign) $850.00/oz;
           Silver (equal sign) $13.50/oz), are for illustrative purposes and
           does not take into account metal recoveries.

For further information: For further information: about Capstone, please
contact: Darren Pylot, Vice Chairman & CEO, 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: For further information: about Capstone, please contact: Darren Pylot, Vice Chairman & CEO, 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