Far West Mining Ltd.

Far West Mining Ltd.

May 20, 2011 17:44 ET

Far West Mining Advises Shareholders Regarding Information Circular and Notice of Special Meeting

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 20, 2011) -Far West Mining Ltd. (TSX:FWM) advises its shareholders of the mailing of the Information Circular and Notice of Special Meeting concerning the offer by way of plan of arrangement made by Capstone Mining Corp. to acquire all the issued and outstanding shares of Far West.

Shareholders are advised that the Special Meeting to approve the proposed transaction will be held in Calgary at the Petroleum Club at 3:00 pm on June 13, 2011. Shareholders may elect to vote by proxy. Proxies must be submitted by 3:00pm MDT June 9, 2011. Shareholders may vote by mail, telephone or using the internet.

Full details of the proposed transaction are provided in the Information Circular and in particular, an election may be made. Shareholders are advised to contact their investment and tax advisors prior to making an election.

The directors, senior officers, Quadra FNX and certain other shareholders of Far West, representing 38% of the filly-diluted Far West shares outstanding as at May 11, 2011, have entered into voting support agreements with Capstone, whereby they have agreed to vote their Far West shares in favour of the arrangement agreement. Capstone's directors and senior management have entered into voting support agreements to vote their Capstone shares in favour of the arrangement agreement. Further, Capstone has advised that its largest shareholder, Pala Investments Holding Limited, holding 19.6% of Capstone's issued and outstanding shares as at May 13, 2011, has advised Capstone management that it intends to vote its Capstone shares in favor of the arrangement agreement.

Under the proposed transaction, Capstone has agreed to form a long-term strategic partnership and joint venture with Korea Resources Corporation ("KORES") for the development of Far West's Santo Domingo Project. Concurrent with the completion of the arrangement agreement, KORES (through a newly-owned subsidiary of Capstone) will (i) acquire a 30% interest in the entity that will own the Santo Domingo project for cash consideration of up to approximately Cdn$210 million to Capstone, and (ii) subscribe for an approximate 11% interest in Capstone, at a price of Cdn$4.35 per share, for aggregate cash consideration of approximately Cdn$170-183 million subject to completion of the Far West transaction.

Full details of the proposed transaction are contained in the respective Information Circulars that have been mailed to Far West shareholders and Capstone shareholders. Copies of the Information Circulars and related documentation have been filed with Canadian securities regulators and is available at the SEDAR website at www.sedar.com and under Far West's website.

Far West Mining Ltd.

Far West Mining Ltd. is an international mineral exploration company headquartered in Vancouver, Canada. Far West is primarily engaged in the evaluation, acquisition, and exploration of mineral properties in Chile and Australia. Far West's main project is the wholly owned Santo Domingo copper-iron-gold deposit in Chile.

Capstone Mining Corp.

Capstone Mining Corp. is a TSX-listed Canadian mining company whose principal business activity is the production of copper from the Company's two producing copper mines: the 100% owned Cozamin copper-silver-zinc-lead mine located in Zacatecas State, Mexico and the 100% owned Minto copper-gold-silver mine in the Yukon, Canada.


"Richard N. Zimmer"

Richard N. Zimmer, P.Eng. President and C.E.O.

For further information investors should review the Company's filings that are available at www.sedar.com.

Forward-Looking Statements

This document may contain "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). These forward-looking statements are made as of the date of this document.

Forward-looking statements relate to future events or future performance and reflect Capstone and Far West management's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the timing and implementation of the proposed transaction, the integration of Capstone and Far West following the transaction, estimation of mineral reserves and mineral resources, availability of cash flow to fund capital requirements, the timing and amount of estimated future production, availability of project financing, and success of mining and development operations. Assumptions upon which such forward-looking statements are based include that Capstone and Far West will be able to satisfy the conditions in the Agreement, that the required approvals will be obtained from the shareholders of each of Capstone and Far West, that all third party, court, regulatory and governmental approvals to the transaction will be obtained, tax treatment of the transaction and that all other conditions to completion of the transaction will be satisfied or waived. Many of these assumptions are based on factors and events that are not within the control of Capstone or Far West and there is no assurance they will prove to be correct.

Accordingly, readers should not place undue reliance on forward-looking statements.

The TSX does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information