Capstone Mining Corp. is a TSX listed company focused on growing production from its two high-grade, low-cost mines located in mining friendly jurisdictions. Sustained resource growth at its mines has justified staged production expansions at both operations, which generate robust cash flow supported by a valuable hedge book and strong balance sheet, allowing for continued growth through M&A.

The Minto Mine is a high-grade, open pit copper-gold mine located in Yukon, Canada, forecast to produce approximately 50-55 million pounds of in 2010.

The Cozamin Mine is a high-grade, shallow underground copper-silver-zinc-lead mine located in Zacatecas, Mexico, forecast to produce approximately 40-45 million pounds of copper in 2010.

The Kutcho project is a high-grade, near surface copper-zinc-silver deposit in British Columbia, Canada, being advanced towards a production decision.

As of March 31, 2010, the company had 59 million pounds of copper forward sold at an average price of US$2.55/lb.

Highlights

• High-grade, low-cost copper production
• Significant by-products of gold, silver, zinc and lead
• North American operations in mining friendly jurisdictions
• Strong cashflow from production supported by robust hedge book
• Track record of growing resources and production
• Proven ability to discover, acquire, develop and operate
• Strong management team with proven ability to deliver

The Minto Mine — Producing Copper and Gold in Canada

The high grade Minto copper-gold mine in Yukon, Canada, was built on budget and ahead of schedule. Commercial production commenced on October 1, 2007. The mill was expanded by 50% in late 2007 and by a further 33% in late 2008. The Minto Mine is one of the highest grade open pit copper-gold mines in the world, and is forecast to continue to be a low cost producer. Annual production is forecast to average 50-60 million pounds of copper, 20-25,000 ounces of gold and 250-300,000 ounces of silver during its first several years of operation. Forward sales of copper have been completed for approximately 50% of the next three years production, securing substantial revenues. Based on 2006 drilling, reserves were increased 40%. In 2007/08, three new deposits were discovered and defined, which could result in substantially increased resources, reserves and production, once fully assessed. Yet another discovery was made in early 2009 — Minto North — delivering the best ever gold intercepts at the Minto property to date.

The Cozamin Mine — Producing Copper, Zinc, Lead and Silver in Mexico

The Cozamin mine was developed and put into production at 1,000 tpd on time and under budget in 2006 at a cost of US$30 million. This expense was 100% repaid in less than 12 months. Production was expanded by 120% to 2,200 tpd at a cost of US $13 million in 2007, funded from cash flow, and was paid back in less than 6 months. The latest 35% expansion to 3,000 tpd was completed in 2008. The current resources are contained within a 1.5 km strike length of the 5.5 km long Mala Noche vein which the company controls, with the high grade copper resource centred around the San Roberto shaft, and a second, zinc-rich area discovered and defined in 2008 in the San Rafael area. The 2009 production forecast, at the full expanded capacity, is approximately 40 million pounds of copper.

The Kutcho Project

In line with its objective of accelerating its production growth, in May 2008 Capstone acquired 100% ownership in Western Keltic Mines Ltd., owner of the high grade Kutcho copper-zinc-gold-silver deposit in northwestern British Columbia. Western Keltic and a wholly-owned subsidiary of Capstone were amalgamated under the name "Kutcho Copper Corp." and the amalgamated company is now a wholly-owned subsidiary of Capstone.

The Kutcho project is a high grade copper-zinc-gold-silver deposit in the advanced development stage. The deposit is located approximately 120 km east of the community of Dease Lake and 330 km north of Smithers in northern British Columbia. The Kutcho deposit significantly increases Capstone’s mineral resource base and the project is currently being advanced towards a production decision.

Prior operators completed a pre-feasibility study evaluating the potential development of the Kutcho Creek deposit, the results of which were announced on September 5, 2007. Subsequent to acquiring the Kutcho project, Capstone began reassessing the development plans by focusing on the development of a smaller scale, lower capital cost operation that is focused on high grade production up front. In June of 2008, Capstone completed a preliminary economic assessment which demonstrated positive base case economics and outlined several opportunities for significant future enhancements. The most significant upside opportunities, which are currently being evaluated, include increasing the tonnes of high grade material to be processed, improving metallurgical recoveries beyond those assumed in the study and potential for development as an underground as opposed to open pit operation. Capstone began a drill program in May of 2008 to provide information necessary to support its objectives and intends to issue an updated preliminary economic assessment in the fall of 2009. The updated assessment for a revamp would incorporate several optimization opportunities including the results of the 2008 infill drilling, results from initial metallurgical testing and incorporating some of the more than 50% of the project mineral resources not considered in this current study.

In conjunction with these activities, Capstone has re-commenced the lead up to the project permitting process and has engaged local First Nations and their stakeholders in preliminary discussions regarding the scope of the revamped project.

Darren Pylot, Vice-Chairman, CEO & Director

Mr. Pylot is the founder of Capstone Mining Corp. and in 2006 created Silverstone Resources Corp. He serves as President and Chief Executive Officer for Silverstone, and has been responsible for bringing Capstone’s Cozamin base metal mine into production as well as negotiating and securing Silverstone’s silver by-product streams agreements. Silverstone’s business model of pursuing silver by-product streams and exploration projects is unique in the industry; and in less than 2 years Capstone has increased production at the Cozamin mine by 200%. Mr. Pylot has over 17 years' experience in the management, administration and financing of public companies focusing on the junior resource sector. He has raised over C$200 million in equity financings in the past three years.

Mr. Pylot also serves as Chairman of the Board of Zena Capital Corp., and he is also a director of East Asia Minerals Corp. a well-financed, Asian-based Canadian mineral exploration company with uranium properties and advanced gold and gold-copper properties.

Stephen Quin, P.Geo., President & Director

Stephen Quin became President & CEO of Sherwood Copper in September 2005 after five years as an independent director. On the amalgamation of Sherwood and Capstone, Mr. Quin became President and COO of Capstone. During 2005, he co-lead the due diligence, and acquisition of the Minto Project for Sherwood Copper, and the financing thereof.  Since becoming President of Sherwood, Mr. Quin led the company through the exploration, feasibility, permitting, mine financing and construction of the Minto Mine, ahead of schedule and on budget, and Minto's subsequent operations, resource increases and production expansions. During this period, Mr. Quin also successfully led the company through the acquisition of Western Keltic Mines and its high-grade Kutcho copper project in BC, and through its successful combination with Capstone. Mr. Quin is a graduate of the Royal School of Mines, London, with a B.Sc. (Honours) in Mining Geology and has 30 years experience in exploration, feasibility, mine development and operations, as well as corporate development and general corporate affairs.

Prior to becoming of Sherwood, Mr. Quin was Executive Vice President of Miramar Mining Corporation, a TSX listed gold producer and explorer focused on gold in the Canadian North. While at Miramar, he was the executive responsible for the acquisition and subsequent exploration of the world class Hope Bay Gold Project in Nunavut, Canada. In addition, Mr. Quin was Executive Vice President of Northern Orion Exploration, then an affiliate of Miramar, where he was the executive responsible for the acquisition and exploration of the giant Agua Rica copper-gold-molybdenum project in Argentina. Mr. Quin is a Professional Geoscientist registered with the Association of Professional Engineers and Geoscientists of BC, a Fellow of the Geologic Association of Canada and the Society of Economic Geologists, and a member of the Canadian Institute of Mining & Metallurgy and the Society of the Institution of Materials, Minerals & Mining (UK). Mr. Quin is a member of the board of directors of Mercator Minerals Ltd., Troon Ventures, Rare Element Resources Ltd., Maximus Ventures and Kimber Resources.

Gregg Bush, COO

Richard Godfrey, Chief Financial Officer

Richard Godfrey brings a wealth of experience to Capstone Mining. Starting in 1988 as mine site controller at the Faro and Sa Dena Hes zinc mines in the Yukon and then moving to corporate controller with Royal Oak Mines in 1993. This was followed to VP Finance & CFO of Triton Mining and then as financial advisor to Ma'aden, the Saudi Arabian State Mining Company. In 2003, he became VP Finance & CFO of Breakwater Resources, a multi-mine base metal producer and, subsequent to this, was appointed VP Finance for EuroZinc Mining prior to the merger with Lundin Mining.

Brad Mercer, P.Geo., Vice President Exploration

Brad Mercer currently leads the Canadian exploration team for Capstone Mining Corp. credited with discovering the Area 2; Area 118 and Copper Keel high grade, copper-gold deposits at the Minto mine in the Yukon.  For the past 24 years, Mr. Mercer has managed mineral exploration programs, conducted project evaluations and participated in feasibility work for both large and small mineral exploration companies, including U.S. Borax and Chemical Corp., A.C.A. Howe Inc., Royal Oak Mines Ltd. and Miramar Mining Corporation.  His work is focused in the Americas taking him from Greenland to Patagonia where he has enjoyed the success leading teams that have opened up new exploration potential and made new discoveries on properties that were previously considered well explored.  In addition to successes at the Minto Project in the Yukon, Mr. Mercer is credited with the discovery of the Moly Brook molybdenum deposit and the Unknown Brook gold deposit, both located in Newfoundland.  Brad graduated from Memorial University of Newfoundland in 1984 with a Bachelor of Earth Science and he is a Professional Geoscientist currently registered with the Association of Professional Engineers, Geologists and Geophysicists of the Northwest Territories.  Brad is also a member of the board of directors of Northern Tiger Resources.

Robert Barnes, B.Sc, MBA, P.Eng, Vice President Operations

Mr. Barnes has over 30 years in the mining industry, including 20 years in mine management and project development. From 2001 to 2004, Mr. Barnes worked at Pan American Silver’s La Colorada underground silver mine in various capacities including: mine manager, construction manager for tailings expansion, plant and infrastructure construction supervisor, and underground development coordinator. Mr. Barnes has joined Capstone as Vice President of Operations and is responsible for all underground development and operations at Cozamin and operations at the open-pit Minto mine.

Jason Howe, CA, VP Business Development

Mr. Howe, a Chartered Accountant since 1999, has worked the last five years in the mining industry, previously as Chief Financial Officer of Capstone Mining. Mr. Howe has spent the last 13 years in accounting and finance and before Capstone spent 8 years in public practice including 4 years at PricewaterhouseCoopers. He was a co-founder of Silverstone Resources Corp. in 2006 and served as Chief Financial Officer for 3 years up until Silver Wheaton acquired Silverstone in May of 2009.  With both Silverstone and Capstone, Mr. Howe was responsible for structuring acquisitions, securing credit facilities and was instrumental in tax planning. Currently, in his role of VP Business Development for Capstone, Mr. Howe oversees M&A activities and opportunities. He also currently serves as President, CEO and CFO of Zena Capital Corp. and as Corporate Secretary for East Asia Minerals Corporation.

Peter T. Hemstead, CMA, Treasurer, VP Marketing

Mr. Hemstead received an Honors Bachelor of Arts degree in Economics from the University of Western Ontario, London, Canada in 1996 and his Certified Management Accountant designation from the CMA Society of British Columbia and Yukon in 2004. Mr. Hemstead joined the management of Sherwood Copper in November 2006 after 10 years of employment with PricewaterhouseCoopers LLP, in Toronto and Vancouver. Since joining Sherwood, he has been responsible for the company's treasury activities, specifically, ensuring that Sherwood is in compliance with the terms and conditions of its project loan facility agreements and all other banking and credit matters, coordination of all funding and cash flow requirements for Sherwood and Minto, management of the sales process as it relates to the MRI concentrate off-take agreement and inventory financing facility, tax compliance and planning, financial modeling, implementation and maintenance of Sherwood's insurance program, coordination of the hedging program, and management of the YEC power purchase agreement.

Colin K. Benner, Chairman

Mr. Benner is an experienced mining executive with more than 40 years in the mining industry with senior management and executive roles in Canada and Internationally.  He was most recently Vice Chairman and CEO of Skye Resources and previously Vice Chairman and CEO of Lundin Mining Corporation and EuroZinc Mining Corporation. He has also served on a number of public company boards in the mining industry in Canada and he currently sits on the boards of Lundin Mining Corporation, HudBay Minerals Inc., Polaris Minerals Corp., Troon Ventures Ltd. and was Chairman of PBS Coals Ltd. He is a member of the Association of Professional Engineers of Ontario, the Canadian Society of Professional Engineers as well as a member of the Association of of Professional Engineers and Geoscientists of British Columbia, the Association of Professional Engineers and Geoscientists of Nunavut, the Society of Mining Engineers of the AIME and the Canadian Institute of Mining. Mr. Benner is also a member of the ICD-DP.

John Wright, B.Sc., P.Eng., Director

Mr. Wright joined Capstone’s Advisory Board as a consultant assisting in all aspects of the development, pre-production and mining operations of the San Roberto Mine in the Cozamin project. Mr. Wright is a co-founder, and former Director, President and Chief Operating Officer of Pan American Silver Corp. Mr. Wright was also the co-founder of Equinox Resources. Previously, he spent 10 years with Teck Cominco where he worked at the Trail Smelter operations and later participated in the management of the feasibility studies, marketing and mine construction at the Afton, Highmont, Bull Moose and David Bell Mines. He is now in Business Development working full time for Capstone.

Bruce McLeod, P.Eng, Director

Bruce McLeod is a Mining Engineer with over 25 years experience in all areas of the exploration and mining industry. Mr. McLeod was a founder and Executive Chairman of Sherwood Copper Corp. which recently completed a business combination with Capstone Mining Corp. He is presently the President & CEO of Troon Ventures Ltd. and Tenajon Resources Corp.  Mr. McLeod primarily focuses on project development, strategic planning and financing activities. Mr. McLeod is the Chair of the TSX Venture Exchange's Local Advisory Committee, and sits on the board of several publicly traded companies along with being a member of the TSXV National Advisory Committee, the Canadian Institute of Mining & Metallurgy, the Association for Mineral Exploration British Columbia, and the Association of Professional Engineers of B.C. and the Yukon. Mr. McLeod is also involved with several non profit groups including being a director of Science World.

Larry Bell, Director

Mr. Lawrence Bell has had an extensive career in public and private positions. From 1987 to 1991, and from August 2001 to November 2003, Mr. Bell was Chairman and Chief Executive Officer of BC Hydro, one of the largest electric utilities in Canada. Subsequent to this, he held the position of non-executive Chairman of BC Hydro until 2007. Mr. Bell is a director of GrowthWorks Capital, International Forest Products, Goldcorp, Shato Holdings and Silver Wheaton. Prior to these positions, Mr. Bell was Chairman and President of the Westar Group and Chief Executive Officer of Vancouver City Savings Credit Union. In British Columbia's public sector, Mr. Bell serves as Chair of the Canada Line Rapid Transit Project and has served as Deputy Minister of Finance and Secretary to the Treasury Board, as well a Chair of the University of British Columbia's Board of Governors. Mr. Bell is the recipient of numerous honours and awards.

George Brack, Director

Mr. Brack's 24-year career in the mining industry working in investment banking and corporate development has focused on the identification, evaluation and execution of strategic mergers and acquisitions and the provision of equity financing. Mr. Brack was most recently Managing Director and Industry Head, Mining Group of Scotia Capital. Prior to joining Scotia Capital in 2006, he served seven years as President of Macquarie North America Ltd., an investment banking firm specializing in mergers and acquisitions advice to the global mining industry. Previously, Mr. Brack held the position of Vice President, Corporate Development at Placer Dome Inc., worked for CIBC Wood Gundy, where he was a Vice President of the Investment Banking Group and worked in Rio Algom's corporate development department. Mr. Brack started his career as an exploration geologist with Sherritt-Gordon Mines. He holds an MBA from York University, a BA Sc. In Geological Engineering from the University of Toronto and the CFA designation. He serves as a Director of Alexco Resource Corp. (and is a member of the audit committee and the compensation committee). Mr. Brack's extensive experience in both completing and advising on merger and acquisition opportunities will be of considerable value to Capstone as it continues on with its accretive growth strategy.

Dale Peniuk, Director

Mr. Peniuk is a chartered accountant that provides financial consulting services to a number of mining companies and currently serves on the Board and as Audit Committee Chair of Lundin Mining Corporation, Corriente Resources Inc., Quest Capital Corp., Rainy River Resources Ltd. and Reservoir Capital Corp. Mr. Peniuk also served on the Board and as Audit Committee Chair of EuroZinc Mining Corporation, until completion of its merger with Lundin Mining, and Rio Narcea Gold Mines, Ltd., following the acquisition of a controlling interest in the company by Lundin Mining until the takeover of Rio Narcea was completed. Mr. Peniuk obtained a B.Comm from the University of British Columbia in 1982 and spent more than 20 years with KPMG LLP, Chartered Accountants and predecessor firms, the last 10 of which was as an assurance partner. Mr. Peniuk's financial experience and expertise will benefit Capstone as it continues to grow.

Darren M. Pylot President & CEO

Mr. Pylot is the founder of Capstone Mining Corp. and in 2006 created Silverstone Resources Corp. He serves as President and Chief Executive Officer of Silverstone, and has been responsible for bringing Capstone’s Cozamin base metal mine into production as well as negotiating and securing Silverstone’s silver by-product streams agreements. Silverstone’s business model of pursuing silver by-product streams and exploration projects is unique in the industry; and in less than 2 years Capstone has increased production at the Cozamin mine by 200%. Mr. Pylot has over 17 years' experience in the management, administration and financing of public companies focusing on the junior resource sector. He has raised over C$200 million in equity financings in the past three years. Mr. Pylot also serves as Chairman of the Board of Zena Capital Corp., and is also a director of East Asia Minerals Corp., a well-financed, Asian-based Canadian mineral exploration company with uranium properties and advanced gold and gold-copper properties.

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