Capstone Intersects 20.1 Meters Grading 5.53% Copper, Including 6.4 Meters of 11.32% Copper at Cozamin Mine

VANCOUVER, Nov. 5, 2019 /CNW/ - Capstone Mining Corp. ("Capstone" or the "Company") (TSX:CS) announces high grade copper and silver results from 103 infill and step-out drill holes at its Cozamin Mine, as well as an expansion to the exploration program into 2020. The results represent half of the 200 hole program, which aims to more than double the current reserve base. Results to date support the Company's recently disclosed increase to Cozamin's annual production guidance to 50 to 55 million pounds of copper and 1.4 to 1.5 million ounces of silver starting in early 2021. Mineral Resources and Mineral Reserves estimates will be updated in late 2020.

"Highlight holes in Figure 1 and Table 1, are comprised of both infill and step-outs. They have shown excellent grade and thickness, including a test into the middle of the recently acquired Portree claimblock (U499)," said Brad Mercer, Capstone's Senior Vice President of Operations and Exploration. "We now see a much larger target and we intend to infill drill the expanded area before re-estimating mineral reserves. On average, the vein is approximately 60% wider up dip from the current reserve, while the copper and silver grades are higher as well. Additionally, having access to the Portree claimblock will give us a platform to extend mineralization to the west."

Figure 1 – High grade infill and step-out holes on the periphery of the recently acquired Portree claimblock

"Capstone has owned and operated Cozamin for 15 years and never have I been this excited about its future," said Darren Pylot, Capstone's President and CEO. "The continued exploration success achieved by our team is a paradigm shift for an already low cost and highly profitable tier one mine. I don't know of another project that can leverage 50% organic production growth with expansionary capital of less than $5 million dollars. Cozamin has delivered cumulative free cash flow of over $400 million for Capstone and with our plan to more than double the current mine life, it is incredible to think that over the next decade the best is yet to come."

Tables and Figures:

• Figure 1 shows the location of select intervals.
• Select intervals are summarized in Table 1 and full results for all previously unreleased holes since the October 24, 2018 Mineral Resource estimate are in Table 2.
• For the long-section of the MNFWZ showing copper % * estimated true width and silver g/t * estimated true width, see Figures 2 and 3.
• Figure 4 shows a sample of the chalcopyrite mineralization in drill core from hole CG-18-S372.

Figure 2 – Long-section of the Mala Noche Footwall Zone Showing Copper % * Estimated True Width (m)

The best grade*thickness intercepts at Cozamin lie outside of the current Mineral Reserve, some of which are step-out holes beyond the previous Mineral Resource estimate.

Figure 3 – Long-section of the Mala Noche Footwall Zone Showing Silver g/t * Estimated True Width (m)

The strong positive correlation between copper and silver grades is clear when comparing Figure 2 to Figure 1.

Figure 4 – Image of Drill Core from Hole CG-18-S372

Coarse grained, high grade chalcopyrite mineralization along with a positive copper-silver correlation underpins high copper and silver recoveries.

Table 1 – Selected MNFWZ Drilling Completed Since September 17, 2018 News Release

*estimated true width of vein intercept for inclined drill holes

For drill hole location and context please view the long-section of the MNFWZ at https://capstonemining.com/files/images/maps/MNFWZ_20_T1-Model.pdf.

Table 2 – All MNFWZ Drilling Completed Since September 17, 2018 News Release

*estimated true width of vein intercept for inclined drill holes

Methodology

All samples were submitted for preparation by ALS at its facilities in Zacatecas, Mexico, followed by analysis at the ALS Laboratory in North Vancouver, Canada. The entire sample is crushed to a minimum of 70% passing 2 millimetres. A 250g subsample of the crushed material is then pulverized to 85% passing 75 microns. Copper, zinc, lead and silver are determined by ICP analysis after 4 acid digestion of a 0.4g subsample of pulverized material. QAQC samples in each batch of 20 samples include a blank, a certified reference material and a duplicate (one of a field, coarse reject or pulp reject).

About Capstone Mining Corp.

Capstone Mining Corp. is a Canadian base metals mining company, focused on copper. Our two producing mines are the Pinto Valley copper mine located in Arizona, US and the Cozamin copper-silver mine in Zacatecas State, Mexico. In addition, Capstone has the large scale 70% owned copper-iron Santo Domingo development project in Region III, Chile, in partnership with Korea Resources Corporation, as well as a portfolio of exploration properties. Capstone's strategy is to focus on the optimization of operations and assets in politically stable, mining-friendly regions, centred in the Americas. We are committed to the responsible development of our assets and the environments in which we operate. Our headquarters are in Vancouver, Canada and we are listed on the Toronto Stock Exchange (TSX). Further information is available at www.capstonemining.com.

Cautionary Note Regarding Forward-Looking Information

This news release, and the documents incorporated by reference herein, 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. ("Capstone" or 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 our expectations or beliefs regarding future events. Forward-looking statements include, but are not limited to, statements with respect to the continuing success of mineral exploration, Capstone's ability to fund future exploration activities, the estimation of mineral resources and mineral reserves, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production and capital expenditures, the success of our mining operations, the estimations for potential quantities and grade of inferred resources and exploration targets, environmental risks, unanticipated reclamation expenses and title disputes. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects", "aiming", "approximately", "guidance", "scheduled", "target", "estimates", "forecasts", "extends", "convert", "potential", "intends", "anticipates", "believes" or variations of such words and phrases, or statements that certain actions, events or results "may", "could", "should", "would", "will", "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 that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, amongst others, risks related to inherent hazards associated with mining operations and closure of mining projects, the inherent uncertainty of mineral exploration and estimations of exploration targets, future prices of copper and other metals, compliance with financial covenants, surety bonding, our ability to raise capital, Capstone's ability to acquire properties for growth, counterparty risks associated with sales of our metals, foreign currency exchange rate fluctuations, changes in general economic conditions, accuracy of mineral resource and mineral reserve estimates, operating in foreign jurisdictions with risk of changes to governmental regulation, compliance with governmental regulations, compliance with environmental laws and regulations, reliance on approvals, licences and permits from governmental authorities, impact of climatic conditions on our operations, aboriginal title claims and rights to consultation and accommodation, land reclamation and mine closure obligations, uncertainties and risks related to the potential development of the Cozamin project, increased operating and capital costs, challenges to title to our mineral properties, maintaining ongoing social license to operate, dependence on key management personnel, potential conflicts of interest involving our directors and officers, corruption and bribery, limitations inherent in our insurance coverage, labour relations, increasing energy prices, competition in the mining industry, risks associated with joint venture partners, our ability to integrate new acquisitions into our operations, cybersecurity threats, legal proceedings, 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 MD&A of those statements, all of which are filed and available for review under the Company's profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause our actual results, performance or achievements to differ materially from those described in our forward-looking statements, there may be other factors that cause our results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that our forward-looking statements will prove to be accurate, as our actual results, performance or achievements could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on our forward-looking statements.

National Instrument 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, news releases and MD&A's (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 Technical Information in this news release has been prepared in accordance with NI 43-101 and reviewed and approved by Brad Mercer, P. Geol., Capstone's Senior Vice President, Operations and Exploration, a Qualified Person and the person who oversees exploration activities on the Cozamin Mine property.

Jerrold Annett, VP, Strategy and Capital Markets, 416-572-2272, jannett@capstonemining.com; Virginia Morgan, Manager, IR and Communications, 604-674-2268, vmorgan@capstonemining.com

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SOURCE Capstone Mining Corp.

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