Capstone Reports First Quarter Production Results

First Quarter Production of 16.7 Million Pounds of Copper in Concentrates

VANCOUVER, April 26, 2011 - Capstone Mining Corp. (TSX: CS) today announced its operating results for
the three months ended March 31, 2011 from its two operating mines, Cozamin
and Minto. Combined production totalled 16.7 million pounds of copper in
concentrates, with additional by-products of lead, zinc, silver and gold.

Q1 2011 Production

                           Q1 2011
    Copper in concentrates
    (millions of pounds)
    - Cozamin                8.6
    - Minto                  8.1
    Total                   16.7

Operational Highlights for the three months ended March 31, 2011

The following is a summary of operational highlights for Capstone during
the first three months of 2011:

- Production of 16.7 million pounds of copper contained in concentrates.

- By-product production of 4.2 million pounds of zinc, 0.8 million pounds
of lead and 367,704 ounces of silver in concentrates. Final gold production
is not available since assaying is done off site, but is estimated at 2,925
ounces for the quarter.

- At Cozamin, remediation activities in the mine curtailed mining rates
throughout the first quarter. By mid-March most of these activities were
completed and mining commenced in the Avoca area at the end of March, which
is expected to contribute to higher productivity and grades throughout the
remainder of the year.

- At Minto, production was at low levels in the first quarter due to a
combination of lower mill throughput and lower grades.

- The lower grades at Minto were due to a high grade ore shortfall in
Stage 4 of the Main Pit, resulting in processing less high grade material
than planned. While insignificant in overall volume of ore in the Main Pit,
the decrease in grade negatively impacted metal production for the quarter.
Mining during the first quarter was focused on mining the final stage of the
Minto Main Pit (Stage 5) before freshet where ore grades have been consistent
with plan. Mining of the Main Pit is now substantially completed.

- Steady improvements to SAG mill throughput were made through the first
quarter. To assist with increasing throughput, additional crushing capacity
has been implemented through contract crushing, which began in mid-April to
remedy the throughput shortfall until design crushing changes are
implemented, expected late in the third quarter of 2011.

- Minto received the amended water use license in late March. Once
implemented, the revised license is expected to facilitate improved water
management at Minto during freshet. Application for the subsequent water use
license amendment, which will permit tailing discharge into the mined out
Main Pit, will be submitted by mid-May.

- The environmental and socio-economic evaluation for the Phase IV
expansion was completed and a decision document was issued recommending that
the project proceed. A temporary amendment to the current Quartz Mining
License was issued in March which allows stripping to begin for Area 2 mining
and development of the underground portal.

- Pre-stripping has commenced in Area 2 at Minto following completion of
mining the remaining ore in the Main Pit. A new Quartz Mining License at
Minto is anticipated in the second quarter that will permit the long-term
development of Area 2.

Q1 Operating Details

                                Cozamin   Minto  Q1 Total
    Production (1)
    (contained in concentrates)
    - Copper (000s pounds)       8,609    8,064    16,673
    - Lead (000s pounds)           757        -       757
    - Zinc (000s pounds)         4,174        -     4,174
    - Silver (ounces)          325,480   42,224   367,704
    - Gold (ounces)                  -    2,925     2,925
    Mine
    - Tonnes of ore mined      226,131  293,459   519,590
    Mill
    - Tonnes processed         226,055  258,157   484,212
    - Tonnes processed per day   2,512    2,868     5,380
    - Copper grade (%)            1.87     1.56
    - Lead grade (%)              0.23        -
    - Zinc grade (%)              1.20        -
    - Silver grade (g/t)          62.4      6.3
    - Gold grade (g/t)               -     0.52
    Recoveries
    - Copper (%)                  92.4     92.3
    - Lead (%)                    65.9        -
    - Zinc (%)                    69.8        -
    - Silver (%)                  71.6     81.0
    - Gold grade (%)                 -     67.4
    Concentrates (1)
    Copper concentrates (dmt)   14,670    9,762    24,432
    - Copper (%)                  26.6     37.5
    - Silver (g/t)                 600      135
    - Gold (g/t)                     -      9.3
    Lead concentrates(dmt)         533        -       533
    - Lead (%)                    64.4        -
    - Silver (g/t)               2,454        -
    - Zinc concentrates (dmt)    3,944        -     3,944
    - Zinc (%)                    48.0        -

    (1) Adjustments based on final settlements will be made in future
    periods.

Outlook

Despite low production for the first quarter, Capstone is maintaining
full year 2011 guidance of 80-85 million pounds of copper in concentrates. At
Cozamin, production is expected to ramp up quickly from first quarter levels
now that mining has recommenced in the Avoca area. At Minto, contract
crushing commenced on April 15, increasing throughput rates to a level that
is expected to allow production to proceed as planned for the remainder of
the year.

Q1 Financial Results Timing

Q1 financial results are expected to be reported in late May or early
June 2011 and will be announced with conference call details once scheduled.

Cautionary Note Regarding 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 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.

43-101 Compliance

Unless otherwise indicated, Capstone has prepared the technical
information in this news release ("Technical Information") based on
information contained in the technical reports and news releases
(collectively the "Disclosure Documents") available under Capstone Mining
Corp.'s company profile on SEDAR at www.sedar.com. Each Disclosure
Document was prepared by or under the supervision of a qualified person (a
"Qualified Person") as defined in National Instrument 43-101 Standards of
Disclosure for Mineral Projects of the Canadian Securities Administrators
("NI 43-101"). Readers are encouraged to review the full text of the
Disclosure Documents which qualifies the Technical Information. Readers are
advised that mineral resources that are not mineral reserves do not have
demonstrated economic viability. The Disclosure Documents are each intended
to be read as a whole, and sections should not be read or relied upon out of
context. The Technical Information is subject to the assumptions and
qualifications contained in the Disclosure Documents.

John Sagman, P. Eng., Capstone's Vice President, Technical Services, a
Qualified Person, reviewed all Technical Information contained in this news
release. In addition, Gregg Bush, Senior Vice President and Chief Operating
Officer for Capstone, reviewed all Technical Information in this news
release.

    For further information:

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

Website: www.capstonemining.com

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