Capstone Reports Additional High Grade Intercepts at Cozamin Mine

VANCOUVER, March 7, 2011 -

    - Step-out Drilling on the Mala Noche Footwall Zone Continues to
      Encounter High Grades 



    - Hole U254 Intercepts 5.2% Cu & 180g/t Ag over 8.2m (including 6.0% Cu
      & 210g/t Ag over 6.9m) 

    - Hole U251 Intercepts 1.6% Cu & 19g/t Ag over 22.6m (including 5.1% Cu
      & 58g/t Ag over 5.4m)

Capstone Mining Corp. (CS: TSX) today announced drill results for four
exploration drill holes on the Mala Noche Footwall Zone ("MNFWZ") at the
Cozamin Mine, Zacatecas, Mexico. New drill access and platforms have been
added and Capstone intends to ratchet up the underground exploration program.
Highlights are presented in the table below and the full results for all four
new holes for which assay data has been received are in the table attached.

"We are pleased to report additional results from the Mala Noche Footwall
Zone drilling at the Cozamin Mine. These most recent results extend the zone
eastward by approximately 100 metres," said Brad Mercer, VP Exploration for
Capstone. "We believe the MNFWZ, a splay off the main Mala Noche Vein,
provides a near term opportunity to add high grade resources and potential
high grade mill feed for the Cozamin operation. We intend to continue our
drill program and produce a mineral resource estimate before the end of 2011
to provide a basis to evaluate development options for the MNFWZ," Mr. Mercer
added.

Drill Intercept Highlights for Mala Noche Footwall Zone Holes U251 and
U254

     Hole ID  Target             To   Interval True  Copper Silver Lead Zinc
                Area     From    (m)     (m)   Width  (%)   (g/t)  (%)  (%)
                         (m)                    (m)
      U251     MNFWZ    326.10 348.65  22.55   21.20  1.56    18.9 0.00 0.05
    including           342.25 347.65   5.40   5.08   5.14    58.4 0.01 0.14
      U254     MNFWZ    419.85 428.00   8.15   6.67   5.16  180.53 0.09 0.33
    including           421.10 428.00   6.90   5.65   6.01  209.80 0.11 0.38

Capstone's current plan is to drill 40-50 drill holes on approximately 50
metre centres and underground access has been recently completed to execute
this program. The logistics of establishing additional drill access from one
of the main haulage ways is being evaluated to see if even larger step-outs
can be taken toward the east and down dip, a direction where the highest
grade copper-silver mineralization is still clearly open. The intent is to
have two drills executing the current 50 metre centre pattern while a third
drill probes ahead on a much wider pattern. Capstone will gauge the potential
size of this high grade area to determine if additional drills with greater
capacity are needed.

Please view the accompanying long-sections to put the latest drill
intercepts into context:

capstonemining.com/i/maps/2011-02Cozamin_Cu_Grade_X_Thickness.jpg

capstonemining.com/i/maps/2011-02Cozamin_Cu_Grade_Trend.jpg

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 Brad Mercer, P. Geol., VP, Exploration of
Capstone, Qualified Person as defined by NI 43-101. Exploration activities at
the Cozamin Mine are carried out under Mr. Mercer's supervision.

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.

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.

Detailed Assay Intervals for MNFWZ Drill Holes Released March 7, 2011

    Hole ID  Target Area  From    To   Interval True  Copper Silver Lead Zinc
                          (m)    (m)     (m)*   Width  (%)   (g/t)  (%)  (%)
                                                 (m)*
     U248       MNFWZ    403.70 404.65   0.95   0.51   2.16   35.0  0.01 0.07
      And       MNFWZ    418.80 424.25   5.45   2.90   0.38   6.3   0.00 0.01
     U250       MNFWZ    223.30 226.10   2.80   2.38   3.63   49.3  0.02 0.18
      And       MNFWZ    265.35 266.40   1.05   0.89   0.92   20.7  0.01 0.07
     U251       MNFWZ    296.65 303.95   7.30   6.85   1.12   57.7  0.09 2.36
      And       MNFWZ    326.10 348.65  22.55   21.20  1.56   18.9  0.00 0.05
    including            342.25 347.65   5.40   5.08   5.14   58.4  0.01 0.14
     U254       MNFWZ    371.25 372.25   1.00   0.81   1.45  23.00  0.02 0.44
      And       MNFWZ    412.50 413.50   1.00   0.82   0.96  14.00  0.02 2.27
      And       MNFWZ    419.85 428.00   8.15   6.67   5.16  180.53 0.09 0.33
    including            421.10 428.00   6.90   5.65   6.01  209.80 0.11 0.38

    For further information:

    Capstone Mining Corp.
    Cindy Burnett, Investor Relations
    Telephone: +1-604-637-8157
    Email: cburnett@capstonemining.com
    Website: www.capstonemining.com

For further information: Capstone Mining Corp., Cindy Burnett, Investor Relations, Telephone: +1-604-637-8157, Email: cburnett at capstonemining.com