Last updated on April 24, 2014 at 14:09 EDT

Capstone Mining Announces TSX Acceptance of Normal Course Issuer Bid

December 27, 2012

VANCOUVER, Dec. 27, 2012 /PRNewswire/ – Capstone Mining Corp. (“Capstone” or
the “Company”) (TSX: CS) announced today acceptance by the Toronto
Stock Exchange (the “TSX”) of the Company’s Notice of Intention to make
a Normal Course Issuer Bid (“NCIB”). Pursuant to the NCIB, Capstone
proposes to purchase through the facilities of the TSX and other
Canadian marketplaces, from time to time over the next 12 months, if
considered advisable, up to an aggregate of 34,014,871, being
approximately 10% of the public float of its common shares, as of
December 21, 2012. Purchases may commence through the TSX on December
31, 2012 and will conclude on the earlier of the date on which
purchases under the bid have been completed and December 30, 2013. As
of December 21, 2012, Capstone had 381,507,382 issued and outstanding
common shares.

BMO Nesbitt Burns will be appointed as the brokerage firm responsible
for making purchases of common shares under the NCIB on behalf of
Capstone. All purchases made pursuant to the NCIB will be made through
the open market through the facilities of the TSX and other Canadian
marketplaces and in accordance with the rules and policies thereof. The
purchase price paid for all common shares will be the prevailing market
price at the time of purchase. The Company will purchase a daily
maximum of 271,787 common shares, representing 25% of the average daily
trading volume of 1,087,151 common shares subject to certain prescribed

The Board of Directors of Capstone believes that, depending on the
trading price of its common shares and other relevant factors, the
proposed purchases represent an attractive investment opportunity, are
in the best interests of the Company and are a desirable use of
corporate funds. All common shares purchased by the Company pursuant to
the notice will be cancelled.

About Capstone Mining Corp.

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

SOURCE Capstone Mining Corp.

Source: PR Newswire