Mr. John MacKenzie reports

CAPSTONE COPPER PROVIDES 2024 GUIDANCE AND ANNOUNCES 2023 PRODUCTION RESULTS

Capstone Copper Corp. has released results of consolidated copper production for 2023 and provided operations and capital expenditure guidance for 2024.

2023 Consolidated Copper Production and Costs Highlights

Capstone achieved its production guidance1 for the year ended December 31, 2023. Consolidated copper production was 164,353 tonnes at C1 cash costs2,3 of approximately $2.85 to $2.90 per payable pound of copper. For Q4 2023, consolidated copper production was 44,103 tonnes at C1 cash costs2,3 of approximately $2.65 to $2.70 per payable pound of copper.

John MacKenzie, CEO of Capstone, commented, "The fourth quarter was our best of the year, with consolidated production up 10% and cash costs down approximately 7% quarter-over-quarter, setting us up well for a strong 2024. We expect this year to be a tale of two halves, with H2 providing a glimpse of our new run-rate production and cost performance following the ramp-up of the Mantoverde Development Project ("MVDP"). In the first half of 2024, in addition to the ramp-up at MVDP, we will also be focused on maintaining consistently strong production at Pinto Valley and achieving the installed throughput capacity at Mantos Blancos."

Pinto Valley: An increase in copper production compared to 2023 is forecasted based on higher mill availability. Copper grades and recoveries are expected to be relatively consistent year-over-year. Production is weighted towards the second half of the year driven by higher copper grades.

Cozamin: Production is expected to be similar compared to 2023. Costs in 2024 are forecasted to be higher than those in 2023 driven by a higher proportion of cut-and-fill mining methods compared to longhole stoping, along with a stronger Mexican peso.

Mantoverde: Production volumes at Mantoverde are forecasted to significantly increase in 2024 driven by the ramp-up of MVDP. The Company has not provided sulphide production or C1 cash cost2 guidance for the first half of the year during the commissioning and ramp-up period. MVDP is based on a conventional flowsheet and the Company expects a typical project ramp-up led by Ausenco and Capstone's operating team. First ore was fed through the primary crushing circuit during Q4 2023. First ore to the grinding circuit is expected during Q1 2024. First saleable concentrate is expected during Q2 2024.

For the second half of the year, Capstone has provided Mantoverde sulphides copper production guidance of 25 to 35 thousand tonnes of copper. Capstone expects the sulphide concentrator to achieve its nameplate operating throughput rates during Q3 2024.

Cathode production is expected to be consistent year-over-year, with a decline in costs driven by lower sulphuric acid prices and an allocation of certain overhead costs to the sulphide business.

Mantos Blancos: Production volumes at Mantos Blancos are forecasted to increase in 2024 due to higher mill throughput. During the first half of 2024, the focus will be on receiving and installing the engineering and infrastructure upgrades in the tailings dewatering area of the plant. The Company expects Mantos Blancos to achieve its nameplate operating throughput rates late in the second quarter. Sulphide costs are expected to decrease in the second half of the year driven by higher production volumes.

2024 Capital and Exploration Guidance

In 2024, the Company plans to spend a total of $275 million in sustaining and expansionary capital expenditures at its operating mines and the Santo Domingo Project. This is broken down into $195 million on sustaining capital and $80 million on expansionary capital, of which $65 million relates to MVDP. The MVDP total capital cost estimate of $870 million is unchanged. The sustaining and expansionary capital expenditures guidance includes $60 million of spending related to ESG initiatives, largely related to strengthening tailings storage facilities at Pinto Valley, Mantoverde, and Mantos Blancos, as well as improving tailings stewardship as the Company works towards implementing the Global Industry Standard for Tailings Management by year end 2028. Mantos Blancos sustaining capital spend includes approximately $35 million to achieve sustainable nameplate operating rates, including $15 million identified above related to tailings.

At Santo Domingo, we plan to spend $15 million in 2024 to complete the Feasibility Study, which will be released by mid-2024. During 2024, the Company plans to progress project partnership discussions and its financing strategy. A potential project sanctioning decision is not anticipated prior to mid-2025.

In addition, the Company plans to spend a total of $180 million in capitalized stripping at its three open pit mines.

A portion of waste material mined at the Mantos Blancos and Mantoverde mines in 2024 is considered eligible for capitalization as a stripping asset under Capstone's accounting policies. In the Mantoverde and Mantos Blancos technical reports dated November 29, 2021, the costs associated with mining this waste material were considered to be operating costs. Total tonnes mined and rehandled have not changed significantly compared to the technical reports, only the classification between operating costs and capitalized stripping.

Finally, the Company plans to spend $15 million in brownfield and greenfield exploration activities in 2024. The brownfields exploration is focused on resource conversion at Pinto Valley, Mantoverde, and Mantos Blancos. The greenfield exploration relates to expansionary work at Mantoverde.

2024 Key Catalysts

2024 will be a catalyst-rich year with the following milestones and studies expected to be delivered.

H1 2024:

Mantoverde Development Project Ramp-up

Santo Domingo Feasibility Study

MVDP Optimized Feasibility Study

H2 2024:

Mantoverde Cobalt Study

2023 Year-end Results Announcement and Conference Call

Capstone will release its 2023 Full-year results on Thursday, February 22, 2024 prior to market open. Management will host an investor conference call on Thursday, February 22, 2024 at 11:00 am ET/8:00 am PT. Details to join the call are as follows:

2023 Year-end Webcast and Conference Call Details

Conference call webcast link: https://app.webinar.net/GjLvY9eYlKp

To connect by phone: To instantly join the conference call by phone, please use the following URL https://emportal.ink/488sxdC to easily register yourself and be connected into the conference call automatically. You can also dial direct to be entered to the call by the operator: Toronto: (+1) 416-764-8650 Vancouver: (+1) 778-383-7413 North America toll free: 888-664-6383

An audio replay of the conference call will be available until February 29, 2024.

Replay Dial-in Numbers

Toronto: (+1) 416-764-8677

North America toll free: 888-390-0541

Code: 862300#

After the replay expiration, an audio file will be available on Capstone's website at Capstone Copper - Events and Presentations. Further information is available at www.capstonecopper.com

ABOUT CAPSTONE COPPER CORP.

Capstone Copper Corp. is an Americas-focused copper mining company headquartered in Vancouver, Canada. We own and operate the Pinto Valley copper mine located in Arizona, USA, the Cozamin copper-silver mine located in Zacatecas, Mexico, the Mantos Blancos copper-silver mine located in the Antofagasta region, Chile, and 70% of the Mantoverde copper-gold mine, located in the Atacama region, Chile. In addition, we own the fully permitted Santo Domingo copper-iron-gold project, located approximately 30 kilometres northeast of Mantoverde in the Atacama region, Chile, as well as a portfolio of exploration properties in the Americas.

Capstone Copper's strategy is to unlock transformational copper production growth while executing on cost and operational improvements through innovation, optimization and safe and responsible production throughout our portfolio of assets. We focus on profitability and disciplined capital allocation to surface stakeholder value. We are committed to creating a positive impact in the lives of our people and local communities, while delivering compelling returns to investors by sustainably producing copper to meet the world's growing needs.

COMPLIANCE WITH NI 43-101

Unless otherwise indicated, Capstone Copper has prepared the technical information in this document ("Technical Information") based on information contained in the technical reports, Annual Information Form and news releases (collectively the "Disclosure Documents") available under Capstone Copper's company profile on SEDAR+ at www.sedarplus.ca. Each Disclosure Document was prepared by or under the supervision of a qualified person (a "Qualified Person") as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101"). Readers are encouraged to review the full text of the Disclosure Documents which qualifies the Technical Information. Readers are advised that Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The Disclosure Documents are each intended to be read as a whole, and sections should not be read or relied upon out of context. The Technical Information is subject to the assumptions and qualifications contained in the Disclosure Documents.

Disclosure Documents include the National Instrument 43-101 compliant technical reports titled "NI 43-101 Technical Report on the Cozamin Mine, Zacatecas, Mexico" effective January 1, 2023, "NI 43-101 Technical Report on the Pinto Valley Mine, Arizona, USA" effective March 31, 2021, "Santo Domingo Project, Region III, Chile, NI 43-101 Technical Report" effective February 19, 2020, and "Mantos Blancos Mine NI 43-101 Technical Report Antofagasta / Region de Antofagasta, Chile" and "Mantoverde Mine and Mantoverde Development Project NI 43-101 Technical Report Chanaral / Region de Atacama, Chile", both effective November 29, 2021.

The disclosure of Scientific and Technical Information in this document was reviewed and approved by Clay Craig, P.Eng., Director, Mining & Strategic Planning (technical information related to Mineral Reserves at Pinto Valley and Cozamin), and Cashel Meagher, P.Geo., President and Chief Operating Officer (technical information related to project updates at Santo Domingo and Mineral Reserves and Resources at Mantos Blancos and Mantoverde) all Qualified Persons under NI 43-101.

We seek Safe Harbor.