Capstone Gold Corp.
TSX : CSG

Capstone Gold Corp.

October 20, 2005 15:50 ET

Capstone Gold Clarifies a Disclosure

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 20, 2005) - Capstone Gold Corp. (TSX:CSG) announces:

As a result of a review by the British Columbia Securities Commission, the Company advises as follows to clarify its disclosure: Investors are cautioned not to rely on historical resource estimates which should not be used for an economic analysis of the Cozamin project. Further references to "resources" or "reserves" contained in any third party reports are not current resources or reserves as defined under National Instrument 43-101 and should also not be relied upon. The Company has not yet completed a preliminary feasibility study demonstrating the economic viability of the Cozamin project.

The Company will not be making any production decision with respect to its Cozamin project before establishing current mineral resources and completing such other studies by qualified engineering personnel that the Company deems to be appropriate and prudent. Prior to the completion of that work it would be speculative to contemplate any specific production scenario or operating plan. Once completed, the resource studies and analysis may not support a production decision.

The Company further advises that it has filed a 43-101F1 technical report dated December 14, 2004 and amended October 19, 2005 in regard of the Cozamin project which has been amended to include the historical inferred resource estimates previously reported in the Company' technical report on the Cozamin project dated November 25, 2003.

ON BEHALF OF THE BOARD

Darren M. Pylot, President & CEO


Contact Information