Capstone Reports Board Change

VANCOUVER, May 14, 2012 /PRNewswire/ – Capstone Mining Corp. (“Capstone”) (TSX:
CS) today announced that Korea Resources Corporation’s (“KORES”)
representative on Capstone’s board of directors has changed. Pursuant
to formation of the strategic partnership for the development of the
Santo Domingo project and Shareholders Agreement for the project
between Capstone and KORES dated June 17, 2011, KORES is entitled to
appoint one representative to Capstone’s board.

KORES has nominated for appointment Dr. Wook Jin Choi, P. Geol., P.
Eng., as its new representative.  Dr. Choi joins Capstone’s board
effective May 9, 2012.  He is KORES’ Director, Americas Business and
has been with KORES since 1991, starting in exploration before moving
to the Overseas Mineral Resources team in 1997 where he provided
technical reviews, project evaluation and project financing
management.  From 2009 to 2011, Dr. Choi led KORES’ Jakarta office
before moving into the lead role in the Americas Business Department,
responsible for project management.  He is a Professional Geologist,
with a PhD. in Applied Geology from Kyungpook National University in
South Korea, and a Professional Engineer, holding a Master’s Degree in
Mining Engineering from the University of British Columbia, Canada.

Mr. Hak-Kyun Shin, P. Eng., who has resigned from Capstone’s board
effective May 9, 2012, was KORES’ Director General for Business
Development/Foreign Investment. Mr. Shin has left KORES to join POSCO,
one of the world’s largest steelmakers, as Senior Vice President for
the Raw Materials Development Department.

“I would like to take this opportunity to thank Mr. Shin for his support
in the acquisition of Santo Domingo, and on behalf of Capstone’s board
and management, wish him much success at POSCO,” said Darren Pylot,
President and CEO of Capstone. “We warmly welcome Dr. Choi to our board
and are looking forward to working with him as we jointly develop the
Santo Domingo project.”

KORES has 30% ownership of the Santo Domingo project and owns
approximately 10.6% of Capstone’s outstanding shares.

About Capstone Mining Corp.

Capstone Mining Corp. is a Canadian base metals mining company 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 at properties in Australia, Canada,
Chile and Mexico. Using its cash flow and strong balance sheet as a
springboard, Capstone aims to grow organically through continued
mineral resource and reserve expansions and through acquisitions in
politically stable, mining-friendly regions. Additional information is
available at www.capstonemining.com.

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 does not intend, and does not assume any
obligation, to update these forward-looking statements, except as
required under applicable securities legislation. 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 Capstone to be materially different from
any future results, performance or achievements expressed or implied by
the forward-looking statements.

SOURCE Capstone Mining Corp.