Capstone Reports Additional High Grade Intercepts & Cross-cut into Footwall Zone at Cozamin Mine

Hole U240 Intercepts 6.5% Cu & 118g/t Ag over 7.3m (including 11.0% Cu & 202g/t Ag over 4.1m) plus a second zone of 3.0% Cu, 4.1g/t Au & 355g/t Ag over 11.2m

VANCOUVER, Canada, December 1, 2010 - Capstone Mining Corp. (CS: TSX) today announced that it had successfully
confirmed continuity between the two prior high grade intercepts announced on
October 20, 2010 in the Mala Noche Footwall Zone ("MNFWZ") at its Cozamin
Mine, and had encountered the MNFWZ in a cross-cut driven to evaluate the
potential of this new discovery for mining.

On October 20, 2010, Capstone announced the discovery of a zone of high
grade copper-silver mineralization in the MNFWZ in holes located 200m east of
prior drilling. This discovery was made in a splay off the main Mala Noche
vein and is in close proximity to the current mineral reserves and active
mine workings. Hole U240, drilled between the two prior intercepts,
intersected two intervals with high copper-gold-silver values over
significant widths, confirming continuity of the high grade mineralization
over approximately 150m of dip extent. The high gold values in hole U240 are
particularly encouraging, as they are much higher than is typical for the
Cozamin Mine. Hole U241, drilled on an adjacent section also intersected high
grade copper silver mineralization. Three additional holes have been
completed, for which assays are pending, two additional holes are in progress
and more holes are planned. Capstone has added a second underground drill to
expedite the evaluation of this high grade zone in the MNFWZ, which will
continue into 2011. Assay results from hole U240 and U241 are summarized in
the table below.

Drill Intercept Highlights for Mala Noche Footwall Zone Hole U240

    Hole ID   Target Area From   To   Interval  Copper Gold  Silver Lead Zinc
                           (m)   (m)    (m)*     (%)   (g/t) (g/t)  (%)  (%)

    CG-10-U240   MNFWZ    314.9 326.1   11.2     3.03  4.11   355   0.04 1.90
       And       MNFWZ    357.6 364.9    7.3     6.47  0.07   118   0.04 0.44
    including             357.6 361.7    4.1    11.01  0.08   202   0.06 0.67
    CG-10-U241   MNFWZ    278.3 279.6    1.3     1.25  0.05    27   0.01 0.09
       And       MNFWZ    281.5 288.6    7.1     2.53  0.06    41   0.02 0.37
    including             281.8 286.0    4.2     3.63  0.05    56   0.03 0.32

    * Intervals reported are drill hole intercept lengths, true widths are
      believed to be within 85%-90% to those reported.

In addition to underground drilling, Capstone has commenced driving a
cross-cut into the MNFWZ mineralization and has exposed the first of several
anticipated mineralized zones. Once completely through the MNFWZ, lateral
drifts will be completed along the mineralization to provide a thorough
evaluation of the continuity of the mineralization and to generate
metallurgical samples for testing. Given the close proximity of the MNFWZ to
active mine haulage ways, the evaluation of this discovery is a priority for
the remainder of 2010 and into 2011, with the objective of defining mineral
resources and mineral reserves in order to provide a potential source of high
grade mill feed.

"The discovery of the Mala Noche Footwall zone provides a near term
opportunity to add high grade production at Cozamin," said Stephen Quin,
President of Capstone. "Given the very encouraging results from holes
completed to date, we continue to ramp up our evaluation, with drilling,
drifting and metallurgical testing to continue through the end of the year
and into 2011."

Please view the accompanying long-sections:

capstonemining.com/i/maps/2010-51Cozamin_Cu_Grade_X_Thickness.jpg

capstonemining.com/i/maps/2010-51Cozamin_Cu_Grade_Trend.jpg

And the following link to see a cross-section showing CS-10-U235 and U240

capstonemining.com/i/maps/2010-51CozaminCrossSection_F-F.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 Stephen P. Quin, P. Geo., President of
Capstone Mining Corp. The exploration activities at the Cozamin Mine are
carried out under the supervision of Brad Mercer, P. Geol., VP Exploration
for Capstone. 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.

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 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