El Capitan Precious Metals, Inc. Reports Encouraging Metallurgical Results

El Capitan Precious Metals, Inc. (OTCBB:ECPN) has received encouraging reports from one of the Company’s ongoing metallurgical initiatives; tin fusion followed by electrolytic parting. Preliminary results indicate that the composite samples tested contain gold, silver and platinum group metal (PGM) grades comparable to the caustic fusion values used to prepare the Company’s El Capitan deposit resource evaluation. The results were significant enough to justify the continuation of two larger tin fusion tests that were initiated in late June, and are expected to provide preliminary results in three to six weeks.

Kenneth P. Pavlich, President & C.E.O., noted, “As reported in February, standard fire assay techniques typically used for gold & silver deposits similar to those found in northern Nevada have not provided the appropriate consistency and reliability necessary for demonstrating the commercial in-ground and extractable value of the El Capitan material. We have observed that the unique poly-metallic nature of the El Capitan deposit results in significant slag and/or cupellation losses when using lead collection fire assay, and the oxide nature of the deposit does not lend itself well to the application of nickel sulfide fire assays techniques typically used in sulfide PGM deposits.”

“Several years ago, ECPN investigated fusion / electrolytic parting techniques with interesting, although inconsistent, results. Since then, one of our R&D partners, Wendell & Company, who at the time had been commissioned to replicate those results, continued investigations into other fusion / electrolytic parting techniques that have been reported upon in technical publications. Armed with their knowledge of techniques that have shown success with oxide, poly-metallic, precious metals deposits, they tested several metal collection fusions, followed by electrolytic parting. Their work has shown success with another client, and they have continued to optimize these techniques.”

“In May, while performing other work for ECPN, they described their findings and encouraged the Company to consider testing the process. Preliminary fusion tests were performed on several composite samples using lead and tin as a precious metals collector, followed by electrolytic parting of the collector metal from the precious metals. In this process, the precious metals become concentrated in the resultant ‘anode mud’. This anode mud has been subsequently examined using both atomic absorption (AA) and Scanning Electron Microscope (SEM) techniques. We are encouraged with the results from the initial tests, and are anxiously awaiting the preliminary results from the larger sample later this summer. While other metallurgical initiatives remain ongoing, this technique currently appears to hold the most promise for establishing the commercial value of the El Capitan deposit in a timely manner.”

Mr. Pavlich concluded, “While we recognize that this approach represents a cumbersome assay procedure, we are pleased that the anode mud is, essentially, a saleable product. Importantly, we believe that the process could be scaled-up using existing equipment and technology common in the base metal minerals industry. While there is clearly much optimization work ahead, the knowledge that we are working with a technologically viable extraction procedure is quite exciting.”

About El Capitan Precious Metals, Inc.

El Capitan Precious Metals, Inc. is a U.S.-based mineral exploration company whose primary asset is a 40% interest in the El Capitan precious metals project, located in Lincoln County, New Mexico. The Company’s stock trades on the Over-the-Counter Bulletin Board under the symbol ECPN.

Forward-Looking Statements

Statements herein which are not historical facts, such as estimates of the volume and grade of mineral deposits, future production levels, exploration results and plans, costs, and prices are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to, metals price and production volatility, exploration risks and results, discrepancies between different types of testing methods, some or all of which may not be industry standard, political risks, permitting risks, project development risks and ability to raise financing. For a more detailed discussion of risks and other factors that may impact these forward looking statements, please refer to the Risk Factors and other discussion contained in the Company’s quarterly and annual periodic reports on Forms 10-QSB and 10-KSB on file with the SEC. The Company undertakes no obligation and has no intention of updating forward-looking statements.

For further information, please visit the company’s website at www.ElCapitanPMi.com.