Capstone Reports Significantly Improved Performance at its Mining Operations

By Capstone Mining Corp., PRNE
Sunday, September 12, 2010

Cozamin and Minto Mines' Performance Returning to Design Levels

VANCOUVER, September 13, 2010 - Capstone Mining Corp. (CS: TSX) today reported that significant progress
has been made towards returning its two mining operations, the Cozamin and
Minto mines, to normal operational levels. With additional stopes brought on
line and a resumption of mining in the wide Avoca stopes at Cozamin, the
underground mine has been able to provide significantly more ore for
processing, while at the Minto mine, a number of operational changes and
maintenance upgrades have resulted in significantly improved throughput in
the tailings plant to allow higher throughput in the mill.

"A sustained effort over the past few months has resulted in a
considerable improvement in the tonnes processed at both of our mining
operations," said Darren Pylot, Chief Executive Officer of Capstone. "Access
to more and higher copper grade stopes at the Cozamin Mine and improved
performance in the tailings filtration plant at the Minto Mine is yielding
benefits. While we are encouraged by the throughput levels returning to
design, we will continue to make improvements to further increase production
at both operations."

Cozamin Mine

As reported on July 19 and August 10, 2010, mill throughput at the
Cozamin Mine in Zacatecas, Mexico, has been constrained by lack of ore from
underground, requiring the mill to operate at less than its potential
capacity. The lower underground ore production was related to implementation
of an enhanced geotechnical stability program in the large scale, high copper
grade Avoca stoping area which prevented access to this important area for
ore production. During the more extensive cable bolting process, ore was
primarily derived from higher areas in the mine, which have lower copper and
higher lead grades than average for the mineral reserve. However, in July,
two new, higher copper grade stopes on the 12 level were brought on line,
increasing ore production and copper grade, and in the first week of
September, mining recommenced in the high grade, large scale Avoca stoping
area. The net results has been daily throughput has increased from an average
of 2,559 tonnes per day ("tpd") in Q2/10 to 3,420tpd over the past 30 days up
to and including September 8, 2010.

Minto Mine

As noted in the same news releases referenced above, mill throughput at
the Minto Mine was constrained by the performance of the filter presses in
the tailings plant. Through a comprehensive operations and maintenance
improvement process that has included: (a) a rebuild of one filter press, (b)
changes to the filter cloth types on the same press and, (c) improved
grinding control to reduce fines generation as well as other improvements and
operational changes, performance of the filter presses has improved
considerably, with the rebuilt press throughput markedly higher. These
changes resulted in significant throughput improvements commencing in
mid-August and, over the past 30 days (up to and including September 8,
2010
), plant throughput has increased to 2,871tpd as compared to an average
of 2,036tpd in Q2/10, and over the past 15 days the average plant throughput
has averaged 3,096tpd. Four filters remain to be rebuilt and cloths replaced,
two of which rebuilds will be completed in September and the remaining two in
early October, which should result in further increases in throughput.

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 of
Capstone Mining Corp. and Bob Barnes, P. Eng., Vice President Operations for
Capstone.

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
Capstone Mining Corp. (the "Company") does not intend, and does not assume
any obligation, to update these forward-looking statements.

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", "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: Darren Pylot, Vice Chairman & CEO, Stephen
Quin
, President; Or Investor Relations', Zobeida Slogan at +1-604-684-8894
or +1-866-684-8894; Or e-mail Capstone at info@capstonemining.com

For further information: Darren Pylot, Vice Chairman & CEO, Stephen Quin, President; Or Investor Relations', Zobeida Slogan at +1-604-684-8894 or +1-866-684-8894; Or e-mail Capstone at info at capstonemining.com

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