Mr. Darren Pylot reports

CAPSTONE MINING REPORTS 2018 FINANCIAL RESULTS

Capstone Mining Corp. has released its financial results for the three months and year ended Dec. 31, 2018. Cash flow from operating activities for the quarter was $54.2 million or $0.14 per share and $131.1 million or $0.34 per share for the full year. (All amounts in US$ unless otherwise specified)

"Operational performance at our mines steadily improved as the year progressed, with increased production as well as reduced costs quarter-over-quarter," said Darren Pylot, President and CEO of Capstone. "We ended 2018 strong and are well positioned for a solid 2019."

Q4 2018 HIGHLIGHTS

• Capstone achieved 2018 guidance from continuing operations with consolidated production of 155.2 million pounds of copper and C1 cash cost1 of $1.83 per pound payable produced.
• Q4 2018 copper production from continuing operations of 42.3 million pounds and C1 cash cost1 of $1.70 per payable pound produced. Q4 was the third consecutive quarterly performance improvement in 2018.
• Operating cash flow before changes in working capital 1 of $19.1 million. A reduction in net debt during Q4 2018 of $20.2 million and a $15.0 million repayment on the Revolving Credit Facility ("RCF") for a total of $55.0 million in RCF repayments during 2018. Q4 2018 operating cash flow before changes in working capital1 was impacted by lower sales volumes in Q4 2018 than Q3 2018.
• Adjusted net income from continuing operations 1 of $7.9 million ($0.02 per share) and net loss from continuing operations of $15.2 million (($0.04) per share). Net loss included non-recurring restructuring charges and non-cash deferred tax asset write-downs. Refer to the Alternative Performance Measures section in the Management's Discussion & Analysis for the year ended December 31, 2018 for details.
• Cozamin reserves increased by ~90% and targeting 30% increase in production by end of 2020.
• Positive technical report with strong economics released for Santo Domingo and strategic process launched:
• NPV (after-tax) of $1.0 billion and IRR of 22%.
• Robust, permitted copper-iron oxide-gold project; shovel-ready by early-2020.
• Strategic process launched to optimize the ownership structure to align with Capstone's financing capabilities and maximize the value of the project for Capstone's shareholders.
• Minto mine placed on temporary care and maintenance to preserve value while the Company continues to run a strategic sale process.
• Consolidated copper production from continuing operations of 155.2 million pounds and C1 cash cost1 of $1.83 per pound produced for 2018 was in line with guidance.

                OPERATIONAL OVERVIEW 
  
  
                                       Q4 2018Q4 2017 2018 2017
Copper Production (million pounds)                             
Pinto Valley                              33.0   35.6119.0126.4
Cozamin                                    9.3    9.4 36.2 36.9
   Total from continuing operations       42.3   45.0155.2163.3
C1 Cash Cost 1  ($/lb) Produced                                
Pinto Valley                              1.97   1.79 2.16 1.95
Cozamin                                   0.75   1.04 0.75 1.16
Consolidated from continuing operations   1.70   1.63 1.83 1.77

Pinto Valley Mine

Pinto Valley's Q4 2018 production increased from the third quarter on planned higher throughput. Throughput improved due to increased stabilization of operations and reliability improvements in the crushing and milling circuits. Average grade of 0.34% during the quarter was in accordance with the mine plan.

Cozamin Mine

Cozamin's Q4 2018 copper production increased from the third quarter on higher throughput of 3,030 tonnes per day. Production from the San Rafael zinc zone ramped up to planned levels during Q3 2018, resulting in the highest quarterly zinc production in Q4 2018. Zinc production in 2018 totaled 15 million pounds.

FINANCIAL OVERVIEW

Please refer to the Company's financial statements, related notes and accompanying Management's Discussion and Analysis for a full review of its forth quarter and full year 2018 financial and operational results. This can be accessed by clicking on this link: Q4-2018 MD&A and Financial Statements.

                                                                        Q4 2018Q4 2017   2018   2017   2016

Revenue from continuing operations 2 ($ millions)                          98.0  126.5  415.9  430.4  374.6
Net (loss) income from continuing operations   ($ millions)              (15.2)   37.4    7.4   44.6(223.9)
Adjusted net income (loss) from continuing operations 1 ($ millions)        7.9   11.2   31.5  (3.3)  (0.5)
Net income (loss) ($ millions)                                           (39.0)   29.5 (23.6)   55.1(197.4)
Adjusted EBITDA 1 from continuing operations  ($ millions)                 31.2   38.7  126.5   94.9   89.4
Cash flow from operating activities 2  ($ millions)                        54.2   44.8  131.1  112.5  125.3
Operating cash flow before changes in working capital 1, 2  ($ millions)   19.1   38.2  100.4  129.7  156.9
Total assets ($ millions)                                               1,336.11,400.51,336.11,400.51,395.0
Net debt 1 ($ millions)                                                   150.1  158.7  150.1  158.7  198.6

2 In accordance with IFRS 5, Minto's results are excluded from revenue but included within cash flow amounts
  in both the current and comparative period. 

OUTLOOK - 2019 PRODUCTION, COST AND CAPITAL GUIDANCE

In 2019, Capstone expects to produce between 145 million and 160 million pounds of copper at a C1 cash cost1 of between $1.80 and $2.00 per pound payable copper produced.

  
   2019 Guidance                     Pinto Valley    Cozamin   Santo  Domingo    Total    
Production and Cost                                                                    
Copper production (million pounds)  115 - 125     30 - 35         -         145 - 160  
C1 Cash Cost1,2                   $2.10 - $2.25$0.90 - $1.05      -       $1.80 - $2.00
Capital Expenditure ($ millions, rounded)                                              
Sustaining                            26.5         29.0           -           55.5     
Capitalized Stripping 3               13.5           -            -           13.5     
Expansionary                           6.0          4.0         10.54         20.5     
Total Capital Expenditure             46.0         33.0          10.5         89.5     
Exploration ($ millions, rounded)                                                      
Brownfield 5                            -           6.0           -            6.0     
Greenfield 6                            -            -            -            6.0     
Total Exploration                       -           6.0           -           12.0     

2 Per pound of payable copper produced, net of by-product credits and treatment and selling costs.
3 Capitalized stripping is included as an operating cost in the PV3 PFS; however, under IFRS
  accounting guidelines, stripping costs are capitalized when certain criteria are met.
4 On a 100% basis, the total is approximately $15 million; ownership is 70% Capstone and 30% KORES.
5 Brownfield exploration is capitalized.
6 Greenfield exploration is expensed.

CONFERENCE CALL AND WEBCAST DETAILS

Capstone will hold a conference call and webcast on Wednesday, February 13, 2019 at 11:30 a.m. Eastern time (8:30 a.m. Pacific time) to discuss these results; call-in details and information on associated slides are provided below. This release is not suitable on a standalone basis for readers unfamiliar with Capstone and should be read in conjunction with Capstone's consolidated financial statements and management's discussion and analysis ("MD&A") for the quarter ended December 31, 2018, which are available on Capstone's website and on SEDAR, all of which have been reviewed and approved by Capstone's Board of Directors. An updated corporate presentation will also be available on the company's website.

• Date: Wednesday, February 13, 2019
• Time: 11:30 am Eastern Time (8:30 am Pacific Time)
• Dial in: North America: 1-888-390-0546, International: +416-764-8688
• Replay: North America: 1-888-390-0541, International: +416-764-8677
• Replay Passcode:521712#

The conference call replay will be available until Wednesday, February 20, 2019. The conference call audio file will be available on Capstone's website within 48 hours of the call at https://capstonemining.com/investors/events-and-presentations/default.aspx.

ABOUT CAPSTONE MINING CORP.

Capstone Mining Corp. is a Canadian base metals mining company, focused on copper. We are committed to the responsible development of our assets and the environments in which we operate. Our two producing mines are the Pinto Valley copper mine located in Arizona, US and the Cozamin polymetallic mine in Zacatecas State, Mexico. In addition, Capstone has the large scale 70% owned copper-iron Santo Domingo development project in Region III, Chile in partnership with Korea Resources Corporation, the Minto copper mine in Yukon, Canada currently on care and maintenance, as well as a portfolio of exploration properties.

NATIONAL INSTRUMENT 43-101 COMPLIANCE

Unless otherwise indicated, Capstone has prepared the technical information in this news release ("Technical Information") based on information contained in the technical reports, news releases and MD&A's (collectively the "Disclosure Documents") available under Capstone Mining Corp.'s company profile on SEDAR at www.sedar.com. 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.

The technical information in this news release ("Technical Information") 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"). The disclosure of Technical Information and information related to mineral exploration activities contained in this news release have been reviewed and approved by Brad Mercer, P. Geol., Senior Vice President, Operation and Exploration.

ALTERNATIVE PERFORMANCE MEASURES

The items marked with a "1" are alternative performance measures and readers should refer to Alternative Performance Measures in the Company's Management's Discussion and Analysis for the quarter ended December 31, 2018 as filed on SEDAR and as available on the Company's website.

1 This is an alternative performance measure; please see "Alternative Performance Measures" at the end of this release.

We seek Safe Harbor.