Capstone Reports Production Guidance for 2010

Forecast Production of 90-100 million Pounds of Copper in Concentrates

VANCOUVER, December 17 - Capstone Mining Corp. (CS-TSX) today reported production guidance for
2010 for its Cozamin and Minto mines. Capstone expects to produce
90 million to 100 million pounds of copper in concentrates in 2010 at a
total cash cost(x) of approximately US$1.10 to US$1.20 per pound of payable
copper, net of by-product credits and selling costs, based on an exchange
rate of C$1.09/US$1.00 and MXP$13.00/US$1.00. Of this production,
approximately 55% is projected to come from the Minto Mine and 45% from the
Cozamin Mine. This compares to approximately 95 million pounds of copper in
concentrates forecast for 2009 at a total cash cost(x) of approximately
US$1.00 per pound of payable copper.

"With both of our mines, Cozamin and Minto, having been through a series
of expansions over the past two to three years and now performing at or above
design, we are looking forward to another good year in 2010," said Darren
Pylot, Vice Chairman & CEO of Capstone. "We are focused on fully optimizing
efficiencies and production costs, with the objective of maximizing the
profitability of the pounds we produce."

Outlook for 2010

Forecast production for the Cozamin and Minto mines in 2010 is as
follows:

                           2010 Production Forecast
                            ------------------------
                           (All numbers approximate) 

    ------------------------------------------------------------------------
                                    Cozamin           Minto            Total
    ------------------------------------------------------------------------
    Tonnes milled (millions)           1.1             1.2              2.3
    ------------------------------------------------------------------------ 

    ------------------------------------------------------------------------
    Copper grade (%)                   2.0%            2.2%             2.1%
    ------------------------------------------------------------------------
    Copper recovery (%)                 92%             92%              92%
    ------------------------------------------------------------------------ 

    ------------------------------------------------------------------------
    Production
    (contained in concentrates)
    ------------------------------------------------------------------------
    Copper (millions lbs)          40 to 45       50 to 55        90 to 100
    ------------------------------------------------------------------------
    Zinc (million lbs)             15 to 20              -         15 to 20
    ------------------------------------------------------------------------
    Lead (million lbs)               4 to 5              -           4 to 5
    ------------------------------------------------------------------------
    Gold (oz's)                           -        ~20,000          ~20,000
    ------------------------------------------------------------------------
    Silver (million oz's)        1.5 to 1.8           ~0.3       1.8 to 2.1
    ------------------------------------------------------------------------ 

    ------------------------------------------------------------------------
    Total cash costs per
    payable  pound of            US$0.80 to     US$1.30 to       US$1.10 to
    copper(x)                       US$0.90        US$1.40          US$1.20
    ------------------------------------------------------------------------
    (x) These are non-GAAP performance measures and readers should refer to
        notes on non-GAAP performance measures in the Company's management
        discussion and analysis for the three and nine month periods ended
        September 30, 2009 as filed on Sedar for further details.

Cozamin: Copper production in 2010 is expected to be higher than 2009
now that sustained production is underway from the wider, higher grade
portions of the Cozamin deposit. Higher throughput, grades and recoveries are
forecast for 2010 as compared to 2009 as a result of continued mill
outperformance and sustained access to these wider, higher grade stopes.

Minto: Copper production is expected to be similar to 2009, with
increased throughput and a somewhat lower grade forecast for 2010. The
increased cash costs reflect lower overall grades.

Production Optimization

With both the Minto and Cozamin mines having experienced some production
delays in the third quarter of 2009, 2010 will be a year of optimizing the
current operations by stressing efficiencies in operations and costs.
Capstone will continue its relentless pursuit of value from its current
operations by ensuring production is achieved in a safe and cost efficient
manner.

2010 Capital Expenditure Guidance (US$)

Cozamin and Minto capital expenditures for the year are estimated at
$12.6 million which includes $3.9 million at Cozamin and $8.7 million at
Minto. Included in these amounts are sustaining capital of $3.1 million, mine
and mill equipment of $3.8 million, water management and treatment of $2.1
million, community infrastructure development of $2.6 million and $1.0
million in permitting and regulatory costs related to the Phase IV and
possible Phase V expansion of the Minto Mine.

Exploration Activities

The principal exploration focus in 2010 is continued exploration
drilling at the Minto Mine, where four years of excellent results and
significant resource increases show no sign of slowing. Exploration at
Cozamin will consist of geophysics, mapping and sampling, as well as
evaluating the three newly acquired mineral claims that are within the
immediate area of the Cozamin mine resources and reserves. The acquisition of
these claims has, opened up potential for the discovery and definition of
additional mineral resources in close proximity to the existing mine
workings. Estimated exploration expenditures at Minto are C$2.6 million and
Cozamin are US$1.0 million, however, such amounts could be increased based on
success.

The TSX does not accept any responsibility for the adequacy or accuracy
of this press release.

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 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 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", "outlook", "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 under the
Company's profile 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. The Company provides
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.

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 & COO
for Capstone Mining Corporation.

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

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