VANCOUVER, June 11, 2013 /PRNewswire/ – On April 28, 2013, Capstone Mining
Corp. (“Capstone”) (TSX: CS) announced it entered into an agreement
with BHP Copper Inc., a subsidiary of BHP Billiton Ltd. (“BHP
Billiton”), to purchase the Pinto Valley copper mining operation and
the associated San Manuel Arizona Railroad Company in Arizona, USA for
US$650 million (the “Transaction”).

The Transaction has been granted approval to proceed by the U.S. Federal
Trade Commission (“FTC”) under the Hart-Scott Rodino Antitrust
Improvements Act.

In addition, the restart of the Pinto Valley Mine is progressing
according to plan. As of May 27, 2013, throughput over a 20 day period
during the month of May averaged approximately 49,100 tonnes per day at
an average grade of 0.33% copper, producing approximately 6.5 million
pounds of copper. Copper recovery averaged 84.2%, producing a copper
concentrate with an average grade of 29.0%.

“We are very pleased that the restart of the Pinto Valley operation is
proceeding well and according to plan,” said Darren Pylot, President
and CEO of Capstone. “The successful restart and FTC approval are two
important steps towards closing of the Transaction.”

“The most significant remaining condition is the transfer of the
operating permits, which is in progress,” continued Mr. Pylot. “Once
those transfers are completed we would anticipate proceeding quickly to
close the Transaction, which we expect will take place in the third
quarter of 2013.”

Also, in connection with the Transaction, Capstone expects to file its
National Instrument 43-101 compliant technical report by June 13, 2013,
related to the 968 million tonne Measured and Indicated Mineral
Resource, announced on April 28, 2013. The Transaction remains subject
to customary closing conditions and there can be no assurance such
conditions will be met or that the Transaction will close.

About Capstone Mining Corp.

Capstone Mining Corp. is a Canadian base metals mining company,
committed to the responsible development of our assets and the
environments in which we operate. We are preferentially focused on
copper, with two producing copper mines, the Cozamin
copper-silver-zinc-lead mine located in Zacatecas State, Mexico and the
Minto copper-gold-silver mine in Yukon, Canada. In addition, Capstone
has two development projects, the large scale 70% owned Santo Domingo
copper-iron-gold project in Chile in partnership with Korea Resources
Corporation and the 100% owned Kutcho copper-zinc-gold-silver project
in British Columbia, as well as exploration properties in Canada,
Chile, Mexico and Australia. Using our cash flow and strong balance
sheet as a springboard, Capstone aims to grow with continued mineral
resource and reserve expansions, exploration, and through acquisitions
in politically stable, mining-friendly regions. Our headquarters are in
Vancouver, Canada and we are listed on the TSX. Further information is
available at www.capstonemining.com.

Cautionary Note Regarding 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 mineral resources,
the conversion of mineral resources to mineral reserves, the
anticipated date of closing of the acquisition of Pinto Valley and the
associated financing, 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. In this
document certain forward-looking statements are identified by words
including “scheduled”, “guidance”, “plan”, “planned”, “estimated”,
“projections”, “projected” and “expected”. 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; dependence on key
personnel; labour pool constraints; labour disputes; availability of
infrastructure required for the development of mining projects; delays
in obtaining governmental approvals or financing or in the completion
of development or construction activities; and other risks of the
mining industry 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.

Cautionary Note to United States Investors

This news release contains disclosure that has been prepared in
accordance with the requirements of Canadian securities laws, which
differ from the requirements of U.S. securities laws. Without limiting
the foregoing, this news release uses the terms “indicated” and
“inferred” resources. U.S. investors are cautioned that, while such
terms are recognized and required by Canadian securities laws, the SEC
does not recognize them. Under U.S. standards, mineralization may not
be classified as a “reserve” unless the determination has been made
that the mineralization could be economically and legally produced or
extracted at the time the reserve determination is made. U.S. investors
are cautioned not to assume that all or any part of indicated resources
will ever be converted into reserves. U.S. investors should also
understand that “inferred resources” have a great amount of uncertainty
as to their existence and as to whether they can be mined legally or
economically. It cannot be assumed that all or any part of “inferred
resources” will ever be upgraded to a higher category. Therefore, U.S.
investors are also cautioned not to assume that all or any part of
inferred resources exist, or that they can be mined legally or
economically. Accordingly, information concerning descriptions of
mineralization and resources contained in this news release may not be
comparable to information made public by U.S. companies subject to the
reporting and disclosure requirements of the SEC.

SOURCE Capstone Mining Corp.