Capstone Reports Significant Results in 200m Step-out Drilling on Mala Noche Footwall Zone, Cozamin Mine

Hole CG-10-U235 Intercepts 5.0% Cu & 133g /t Ag over 12.8m, including 7.6% Cu & 201g/t Ag over 8.1m

VANCOUVER, October 20, 2010 - Capstone Mining Corp. (CS: TSX) today announced assay results from
three new drill holes representing a major step-out on the newly discovered
high grade copper-silver Mala Noche Footwall Zone ("MNFWZ") at its Cozamin
Mine in Zacatecas State, Mexico. Exploration drilling along the Mala Noche
system is outlining a significant new mineralized system on a structure
that is adjacent to the one that hosts the current mineral reserves at
Cozamin. As stated in a news release dated September 20, 2010, this new
mineralized system has been extensively drilled along a panel measuring
approximately 700m (strike) by 200m (dip), with numerous copper-silver rich
intercepts. Two of the three holes reported today represent a major step-
out to the east and down dip from the previous drilling. Hole CG-10-U235
intercepted the highest grade copper-silver mineralization to date in the
MNFWZ and represents a 200m east and 200m vertical step out from earlier
drilling on this new zone.

Highlights of assays from the new holes on the MNFWZ are summarized in
the table immediately below and the full results for all three holes are
provided in the attached table.

      Drill Intercept Highlights for Mala Noche Footwall Zone (MNFWZ)
      ---------------------------------------------------------------

    -------------------------------------------------------------------------
                  Target    From     To  Interval  Copper  Silver  Lead  Zinc
      Hole ID      Area      (m)     (m)   (m)(x)     (%)   (g/t)   (%)   (%)
    -------------------------------------------------------------------------
                    MN
    CG-10-U233  Footwall  304.50  308.90     4.40    2.65    42.6  0.02  0.09
    -------------------------------------------------------------------------
     including            305.45  308.90     3.45    3.29    52.6  0.02  0.11
    -------------------------------------------------------------------------
                  MN
    CG-10-U235  Footwall  326.65  332.05     5.40    2.42    32.2  0.01  0.20
    -------------------------------------------------------------------------
                  MN
      And       Footwall  363.45  376.25    12.80    4.97   133.2  0.04  0.38
    -------------------------------------------------------------------------
     including            364.48  372.54     8.06    7.56   201.1  0.06  0.55
    -------------------------------------------------------------------------
    (x) Intervals reported are intercept lengths, true widths are not
        currently known but are believed to be close to those reported.

"The latest intercepts from the recently discovered MNFWZ are very
encouraging, with copper-silver grades increasing with depth and the zone
open in most directions," said Stephen Quin. "Drilling is continuing with
the objective of defining a National Instrument 43-101 compliant mineral
resource estimate which, given proximity to the existing mine workings,
could be brought to production quickly, should economics warrant."

Mala Noche Footwall Zone

The MNFWZ is associated with the margins of a rhyolitic dyke intruding
into the footwall rocks of the Mala Noche system and has been traced in
drill holes over 700 metres along strike and now, with these latest
intercepts, more than 350 metres in the dip direction. This subsidiary
structure intersects the main Mala Noche vein system west of the San
Roberto shaft, at about a 30 degree angle, and is still open to the east,
up-dip and down-dip. The current mineral resources and mineral reserves at
the Cozamin Mine are entirely hosted in the main Mala Noche vein and this
discovery of the MNFWZ represents a new style of mineralization not
previously identified at Cozamin. The discovery of this new style of
mineralization presents an opportunity for the identification and discovery
of new, similar, mineralization in other areas where similar intersecting
structures are known. The mineralization in this new zone is coarse grained
chalcopyrite, which should have good metallurgical characteristics and
yield a clean concentrate.

Please view the accompanying long-sections:

capstonemining.com/i/photos/Cozamin/2010-45CozaminCuGradeTrend.jpg

www.capstonemining.com/i/photos/cozamin/2010-45CozaminCuGradeXThic
kness.jpg

capstonemining.com/s/Cozamin.asp?ReportID=353257

(Due to the length of these URLs, it may be necessary to copy and paste
this hyperlink into your Internet browser's URL address field. Remove
the space if one exists.)

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. Geo., V.P. Exploration
of Capstone. The following employees of Capstone, each a Qualified Person,
reviewed Technical Information contained in this news release: Robert
Barnes, Professional Engineer and consulting geologist Hugh Willson,
Professional Geologist, respectively reviewed the technical content of this
news release. 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.

           2010 Drill Results for Mala Noche Footwall Zone (MNFWZ)
           -------------------------------------------------------

    -------------------------------------------------------------------------
                  Target    From     To  Interval  Copper  Silver  Lead  Zinc
      Hole ID      Area      (m)     (m)   (m)(x)     (%)   (g/t)   (%)   (%)
    -------------------------------------------------------------------------
                   MN
    CG-10-U232  Footwall    3.00    9.05     6.05    0.57    16.7  0.10  0.19
    -------------------------------------------------------------------------
     including              7.35    7.95     0.60    1.50    30.0  0.01  0.08
    -------------------------------------------------------------------------
      And                  18.25   20.50     2.25    0.01     5.0  0.01  2.55
    -------------------------------------------------------------------------
                   MN
    CG-10-U233  Footwall    7.45    9.55     2.10    0.76   18.38  0.00  0.05
    -------------------------------------------------------------------------
                   MN
      And       Footwall   26.95   27.95     1.00    0.05    7.25  0.57  3.08
    -------------------------------------------------------------------------
                   MN
      And       Footwall  301.10  303.25     2.15    0.94   18.07  0.01  0.20
    -------------------------------------------------------------------------
                   MN
      And       Footwall  304.50  308.90     4.40    2.65   42.60  0.02  0.09
    -------------------------------------------------------------------------
     including            305.45  308.90     3.45    3.29   52.57  0.02  0.11
    -------------------------------------------------------------------------
                   MN
      And       Footwall  336.10  337.30     1.20    0.87   17.04  0.02  0.04
    -------------------------------------------------------------------------
                   MN
    CG-10-U235  Footwall    0.00    4.00     4.00    1.24   44.25  1.82  0.77
    -------------------------------------------------------------------------
                   MN
      And       Footwall    7.15    9.40     2.25    0.30   11.76  0.19  1.11
    -------------------------------------------------------------------------
                   MN
      And       Footwall  323.55  324.11     0.56    0.09   60.36  0.22  2.61
    -------------------------------------------------------------------------
                   MN
      And       Footwall  326.65  332.05     5.40    2.42   32.15  0.01  0.20
    -------------------------------------------------------------------------
     including            326.65  331.18     4.53    2.82   37.25  0.00  0.13
    -------------------------------------------------------------------------
                   MN
      And       Footwall  338.26  338.80     0.54    1.41   17.52  0.01  0.05
    -------------------------------------------------------------------------
                   MN
      And       Footwall  363.45  376.25    12.80    4.97  133.19  0.04  0.38
    -------------------------------------------------------------------------
     including            364.48  372.54     8.06    7.56  201.09  0.06  0.55
    -------------------------------------------------------------------------

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, jhowe@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, jhowe at capstonemining.com