Capstone Reports Board Change

VANCOUVER, Oct. 23, 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 GookHo (G.H.) Lee, MBA, as its new representative.
Mr. Lee joined the Capstone board effective October 23, 2012. He has
been with KORES since 2011, and is based in the Toronto office where he
holds the position of KORES’ Executive Advisor. Prior to joining KORES
he spent over 30 years at LS-Nikko Copper Inc., LG-Nikko Copper Inc.
and LG Metal Co, Ltd., in Marketing and Raw Materials Procurement. His
experience in senior level positions includes Senior Executive Vice
President, Overseas Business Development Division, Raw Materials
Procurement Division at LS-Nikko Copper Inc. Mr. Lee has a B.A. in
Economics from Daegu University and a MBA from Yonsei University, both
in South Korea, and has completed an advanced management program at
Wharton Business School in Pennsylvania.

Mr. Lee replaces Dr. Wook Jin Choi as KORES’ board representative, who
has resigned from Capstone’s board effective October 23, 2012.  KORES
has 30% ownership of the Santo Domingo project and owns approximately
10.5% 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.