Capstone Mining Corp.
TSX : CS

Capstone Mining Corp.

July 19, 2007 07:00 ET

Capstone Provides Cozamin Mine Expansion Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 19, 2007) - Capstone Mining Corp. ("Capstone") (TSX:CS) is pleased to report the current expansion progress at its Cozamin mine located in Zacatecas State, Mexico.

The mine expansion from 1,000 to 2,200 tonnes per day, (a 120% increase) commenced construction in January 2007. The initial cost estimate was US$15 million. Commissioning of the expansion began in late May, with start up commencing in mid-June. Production in June averaged 1,500 tonnes per day, and production in July has averaged 2,000 tonnes per day from month to date (or 91% of planned throughput) and has achieved over 2,200 tonnes on successive days. Final capital costs are US$14.4 million (including US$1.4 million of refundable sales taxes) with US$10 million having been paid by June 30th. It is anticipated that US$1.5 million will be paid in July, with the remaining expenditures, which include land purchase payments and ongoing underground development being spent throughout the remainder of 2007.

The company is very pleased with the expansion project being completed ahead of schedule and under budget, and now has the capacity to produce in excess of 26 million pounds of copper, 11 million pounds of zinc, 4 million pounds of lead and 1.2 million ounces of silver in 2008.

ABOUT CAPSTONE

Capstone is a Canadian based mining company currently operating the 100% owned Cozamin copper-silver-lead-zinc mine located in Zacatecas State, Mexico. Capstone has approximately 82 million shares outstanding and is well financed with no bank debt. More information is available online at: www.capstonemining.com.

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