Mr. Darren Pylot reports

CAPSTONE MINING 2017 THIRD QUARTER PRODUCTION RESULTS

Capstone Mining Corp. has released production results for the three and nine months ended Sept. 30, 2017. Combined production totalled 22,000 and 67,000 tonnes of copper in the third quarter and year-to-date periods, respectively, with additional byproducts of zinc, molybdenum, lead, silver and gold.

              THIRD QUARTER AND YEAR-TO-DATE 2017 COPPER PRODUCTION (TONNES)     
                            
                                                   Q1           Q2           Q3     YTD 2017

Pinto Valley                                   11,300       15,500       14,400       41,200
Cozamin                                         4,100        4,100        4,200       12,500
Minto                                           5,500        4,400        3,400       13,300
Total copper production (1)                    20,900       24,000       22,000       67,000

(1) Total production includes copper in concentrate and cathode production.

"Cozamin once again outperformed in the third quarter, partially offsetting lower production at Pinto Valley and Minto," said Darren Pylot, president and chief executive officer of Capstone. "As we enter the fourth quarter, all operations are on track and we expect to achieve the low end of our guided production range for the year."

Operational highlights:

• At Pinto Valley, production was below expectations due to throughput disruptions caused by electrical outages in August and a second one in September. Remediation work on the affected circuit will be completed in October; however, the plant is operating normally on a temporary repair. Additionally, focus in the quarter shifted from throughput maximization to overall mill optimization.
• Copper production at Cozamin exceeded expectations, driven by higher throughput. Mine development continues to advance ahead of schedule, increasing production flexibility at the operation.
• At Minto, production for the quarter continued to be impacted by mine sequencing changes to support the previously announced mine life extension. Underground mining was halted for six weeks in order to upgrade the emergency response capacity in the current stoping areas while development to the Minto East deposit continued. Partially oxidized ore from the Area 2, Stage 3 open-pit and low-grade stockpiles supplemented the mill feed during the quarter to offset the resulting underground ore shortfall, causing lower head grade and recoveries than originally planned.

                            THIRD QUARTER AND YEAR-TO-DATE 2017 OPERATING DETAILS  

                                              Pinto Valley              Cozamin              Minto  
                                               Q3   YTD 2017         Q3   YTD 2017         Q3   YTD 2017
Contained production  (1)
Copper (tonnes)                            14,381     41,171      4,242     12,478      3,403     13,328
Zinc (tonnes)                                   -          -      1,173      3,217          -          -
Molybdenum (Mo tonnes)                          -          7          -          -          -          -
Lead (tonnes)                                   -          -         12         49          -          -
Silver (ounces)                            79,371    227,119    241,555    737,029     42,641    140,814
Gold (ounces) (2)                              79      3,499          -          -      8,484     22,093
Payable copper production  
(1) (tonnes)
(in concentrate and cathode)               13,894     39,781      4,075     11,992      3,292     12,895
Mine
Ore (tonnes) -- open pit                5,210,618 15,258,387          -          -    224,174    800,346
Waste (tonnes)                          6,465,014 19,608,566          -          -  1,187,504  5,507,271
Ore (tonnes) -- underground                     -          -    223,846    692,070     61,422    221,347
Mill
Tonnes processed                        4,974,294 14,490,039    223,446    688,468    342,282  1,089,477
Tonnes processed per day                   54,068     53,077      2,429      2,522      3,720      3,991
Copper grade (%)                          0.31 (3)   0.31 (3)      1.98       1.89       1.31       1.47
Zinc grade (%)                                  -          -       0.80       0.71          -          -
Molybdenum grade (%)                            -      0.005          -          -          -          -
Lead grade (%)                                  -          -       0.08       0.07          -          -
Silver grade (g/t)                              *          *       42.2       42.5        5.0        5.1
Gold grade (g/t)                                *          *          -          -       0.62       0.91
Recoveries
Copper (%)                                91.0 (3)   87.1 (3)      96.1       96.0       76.0       83.0
Zinc (%)                                        -          -       65.7       65.9          -          -
Lead (%)                                        -          -        7.0       10.1          -          -
Silver (%)                                      *          *       79.7       78.3       77.2       78.9
Gold (%)                                        *          *          -          -       73.8       58.6
Concentrates
Copper concentrate (dmt)                   49,406    141,379     15,688     45,592      8,090     29,729
Copper (%)                                   28.1       28.1       27.0       27.4       42.1       44.8
Silver (g/t)                                    *          *      476.0      497.6      163.9      147.3
Gold (g/t)                                      *          *          -          -       19.5       19.5
Zinc concentrate (dmt)                          -          -      2,463      6,719          -          -
Zinc (%)                                        -          -       47.6       47.9          -          -
Molybdenum concentrate (dmt)                    -          -          -          -          -          -
Lead concentrate (dmt)                          -          -         20         79          -          -
Lead (%)                                        -          -       62.1       61.8          -          -
Silver (g/t)                                    -          -      2,392      3,009          -          -
Payable copper shipped (tonnes)            14,591     39,534      4,185     12,022      4,212     13,785

(1) Adjustments based on final settlements will be made in future periods. 
(2) Pinto Valley gold production reaches payable levels from time to time. 
Any payable gold production will be reported in the period revenue is received. 
At Minto, final gold production is not available since assaying is conducted
off-site, but is estimated. 
(3) Grade and recoveries were estimated based on concentrate production.  
* Silver and gold have not been estimated in the Pinto Valley resource model. 
Only recovered silver and payable gold are reported for this mine.

Operating outlook

Capstone expects to reach the low end of the range of 2017 consolidated production guidance of 94,000 tonnes (plus or minus 5 per cent) of copper.

Financial results timing

Capstone will report third quarter 2017 financial results on Thursday, Oct. 26, 2017, after market close, followed by a conference call and webcast for investors and analysts on Friday, Oct. 27, 2017, at 10 a.m. Eastern Time (7 a.m. Pacific Time).

Conference call and webcast details:

Date:  Friday, Oct. 27, 2017

Time:  10 a.m. Eastern Time (7 a.m. Pacific Time)

Dial in numbers:

North America:  1-888-390-0546

International:  416-764-8688

Replay:

North America:  1-888-390-0541,

International:  416-764-8677

Replay pass code:  218958 followed by the number sign

The conference call replay will be available until Friday, Nov. 3, 2017. The conference call audio and transcript will be available on Capstone's website within 48 hours of the call.

About Capstone Mining Corp.

Capstone Mining is a Canadian base metals mining company, focused on copper. The company's three producing mines are the Pinto Valley copper mine located in Arizona, the Cozamin polymetallic mine in Zacatecas state, Mexico, and the Minto copper mine in Yukon, Canada. In addition, Capstone has two development projects, the large-scale 70-per-cent-owned copper-iron Santo Domingo project in Region III, Chile, in partnership with Korea Resources Corp., and the 100-per-cent-owned Kutcho copper-zinc project in British Columbia, Canada, as well as exploration properties in Chile and United States.

National Instrument 43-101 compliance

The technical information in this news release was prepared by, or under the supervision of, a qualified person as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators. The disclosure of the technical information contained in this news release has been reviewed and approved by Gregg Bush, PEng, Capstone senior vice-president and chief operating officer, a qualified person under NI 43-101.

We seek Safe Harbor.