Capstone Reports Production Results for Q4 and Full Year 2010

2010 Production of 76.0 Million Pounds of Copper in Concentrates

VANCOUVER, January 26, 2011 - Capstone Mining Corp. (CS: TSX) today announced its operating results for
the three and twelve months ended December 31, 2010 from its two operations,
the Cozamin and Minto mines. Combined production totalled 18.9 million and
76.0 million pounds of copper in concentrates in the three and twelve months,
respectively, with additional significant by-products of lead, zinc, silver
and gold. At December 31, 2010 Capstone had a cash balance of US$192.4
million (including restricted cash of US$6.4 million and a short-term deposit
balance of US$20 million), a significant increase primarily attributable to
the cash generated from sales at higher metal prices as well as the sale of
some investments. As press released on December 17, 2010 Capstone reiterates
its 2011 guidance of 80-85 million pounds of copper in concentrates.

Q4 and 2010 Annual Production

                           Q4 2010   Total 2010
    Copper in concentrates

    (millions of pounds)
    - Cozamin                8.2        35.5
    - Minto                 10.7        40.5(*)
    Total                   18.9        76.0

    (*) Minto realized negative adjustments to previously reported copper
    production based on the final settlement of copper sales from previous
    quarters in the amount of one million pounds. The adjustments are only
    reflected in the year to date column.

Operational Highlights for the three and twelve months ended December 31,
2010

The following is a summary of operational highlights for Capstone during
the three and twelve months, respectively, ended December 31, 2010:

    - Production of 18.9 million and 76.0 million pounds of copper contained
      in concentrates, respectively.

    - By-product production of 3.7 million and 17.3 million pounds of zinc,
      1.5 million and 9.1 million pounds of lead and 371,177 and 1,610,008
      ounces of silver in concentrates, for the three and twelve months,
      respectively. Final gold production is not available since assaying is
      done off site, but is estimated at 2,234 and 22,284 ounces for the
      respective periods.

    - Detailed operating statistics for both operating mines are provided in
      the tables below.

Cozamin Highlights and Outlook

Cozamin Mine results for the three and twelve months ended December 31,
2010, respectively, were:

                                Q4 2010   Total 2010
    Production (2)
    (contained in concentrates)

    - Copper (000s pounds)        8,209       35,552
    - Lead (000s pounds)          1,496        9,142
    - Zinc (000s pounds)          3,694       17,348
    - Silver (ounces)           334,751    1,403,170
      Mine
    - Tonnes of ore mined       214,689      978,954
      Mill
    - Tonnes processed          215,503      981,682
    - Tonnes processed per day    2,342        2,690
    - Copper grade (%)             1.88         1.80
    - Lead grade (%)               0.42         0.63
    - Zinc grade (%)               1.15         1.27
    - Silver grade (g/t)           67.1           62
      Recoveries
    - Copper (%)                   92.0         91.2
    - Lead (%)                     74.1         67.6
    - Zinc (%)                     67.8         63.0
    - Silver (%)                   72.0         71.7
       =Concentrate (2)
    - Copper (dmt)               14,187       64,356
    - Copper (%)                   26.2         25.1
    - Silver (g/t)                  582          536
    - Lead (dmt)                  1,015        6,282
    - Lead (%)                     66.9         66.0
    - Silver (g/t)                2,119        1,391
    - Zinc (dmt)                  3,534       16,448
    - Zinc (%)                     47.4         47.8

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

    - Mine and mill production for Cozamin for the last 5 weeks of the year
      came in at less than 50% of plan as a consequence of the stability
      assessments being carried out in the high grade Avoca area. Production
      was further hampered by a shutdown in the main ore haulage ramp while
      repairs were made in a cross faulting zone.

    - As a result of the geomechanical evaluation of the Avoca Zone,
      remediation and additional development activities are required,
      though production levels continue to increase as new support
      standards are implemented, they will not return to plan levels
      until late-February.

Minto Highlights and Outlook

Minto Mine results for three and twelve months ended December 31, 2010,
respectively, were:

                                      Q4 2010   Total 2010(4)
    Production (3)
    (contained in concentrates)

    - Copper (000s lbs)                10,672          40,454
    - Gold (oz) (2)                     2,234          22,284
    - Silver (oz)                      36,426         206,838
      Mining
    - Waste (tonnes)                1,764,509       7,873,049
    - Ore (tonnes)                    484,907       1,494,752
    - Total material mined (tonnes) 2,249,416       9,367,801
      Milling
    - Tonnes processed                258,121         915,051
    - Tonnes processed per day          2,806           2,507
    - Copper grade (%)                   2.03            2.22
    - Gold grade (g/t) (2), (3)          0.46            0.93
    - Silver grade (g/t)                  6.6             8.7
      Recoveries
    - Copper (%)                         92.5            90.3
    - Gold (%) (2), (3),                 58.1            81.1
    - Silver (%)                         66.1            80.6
      Concentrate
    - Dry tonnes produced              12,082          47,065
    - Copper grade (%)                   40.1            39.0
    - Gold grade (g/t) (2), (3)           5.8            14.7
    - Silver grade (g/t)                   94             137

    (2) Gold is not assayed on site, resulting in a significant lag in
    receiving this data. Data for Q4 is an estimate based on prior production
    experience.

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

    (4) Adjustments are only reflected in year to date column relating to
    negative adjustments of previously reported copper production.

    - Mill throughput increased during November and December with
      installation of higher performance tailings filter cloths.

    - With the completion of the dewatering of the Minto Main pit in October
      higher grade ore was mined from the Stage 4 push-back resulting in
      higher grades being processed.

    - Mining in Stage 4 of the Minto Main pit was essentially complete at
      year-end. Mining of the final stage of the Minto Main pit is on
      schedule to complete in early Q2 of 2011.

    - All critical permitting activities for initiation of mining in Area 2
      and initial development of the Area 2 underground resources is on
      track for completion in Q1 of 2011

2010 Financial Results Timing

Capstone will report its 2010 financial results on Monday, March 14, 2011
after market close and will host a conference call and webcast to discuss
these results as noted below.

Conference call and webcast details are as follows:

         Date:       Tuesday March 15, 2011
         Time:       8:30 AM PST (11:30 AM EST)
         Dial in:    North America - +41-888-231-8191, International -
         Webcast:    +1-647-427-7450
         Replay:
         www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3384920
                     North America - +1-800-642-1687, International -
                     +1-416-849-0833
                     Replay Pass code: 14853632

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.

The following employees of Capstone, each a Qualified Person, reviewed
Technical Information contained in this news release: Robert Barnes,
Professional Engineer, reviewed all Technical Information in this news
release. In addition, Gregg Bush, Chief Operating Officer for Capstone,
reviewed Technical Information related to the Minto Mine and the Cozamin
Mine.

For further information:

about Capstone, please contact:
Darren Pylot, President & CEO or Gregg Bush, COO
Or Jason Howe, Investor Relations, at +1(604)684-8894 or toll free at
+1(866)684-8894 info@capstonemining.com

For further information: about Capstone, please contact: Darren Pylot, President & CEO or Gregg Bush, COO Or Jason Howe, Investor Relations, at +1(604)684-8894 or toll free at +1(866)684-8894 info at capstonemining.com