- 47.3 million Pounds of Payable Copper Produced at an Estimated Total Cash Cost (1) of $0.93 per payable pound

- All Amounts in US$ Unless Otherwise Specified

Capstone Mining Corp. (CS: TSX) today announced its financial results for the three and six months ended June 30, 2009. For the three months ended June 30, 2009, Capstone reported cash flow from mining operations(1) of $22.6 million ($0.12/share) on sales of 17.8 million pounds of copper. This compares to cash flow from operations(1) of $26.3 million ($0.16/share) on sales of 28.3 million pounds of copper in the first three months of 2009. The lower sales of copper metal are primarily a result of the timing of concentrate shipments with only one shipload of Minto concentrates sold in the second quarter versus two in the first. Cash flows were similar in the two periods as a result of significantly higher copper prices in the second quarter. During the first six months of 2009, Capstone reported cash flow from operations(1) of $48.9 million ($0.28/share) on sales of 45.1 million pounds of payable copper sold. Copper produced, as opposed to sold, in the first six months at Capstone's two mines, Cozamin and Minto, totals 47.3 million pounds of payable copper at an estimated total cash cost(1) of $0.93 per payable pound.

Copies of Capstone's financial statements and management's discussion and analysis ("MD&A") are available on Capstone's website at http://www.capstonemining.com/investors/financials/. This release should be read in conjunction with the second quarter 2009 financial statements and MD&A. Capstone will hold a conference call Friday August 14, 2009 at 8:00 AM Pacific time (11:00 AM Eastern time) to discuss these results; call-in details are at the end of this release.

"Capstone's second quarter 2009 financial results continued to be strong as a result of our low cost production from both our mines," said Darren Pylot, Vice Chairman & CEO of Capstone Mining Corp. "Cash flow from mining operations(1) of $22.6 million, despite lower sales, reflects the higher copper price, quarter over quarter, the strong operational performance of our mines and low operating costs," he said. "During this quarter, we also took the opportunity to restructure our balance sheet and, as of June 30, 2009, Capstone had approximately $111.6 million in working capital, including $70.4 million in unrestricted cash, total debt was reduced to $29.3 million, we have a $40.0 million undrawn bank facility and investments with a market value of $21.6 million on June 30, 2009."

"Capstone's two operations, the Cozamin and Minto mines, continued to deliver strong copper production during the second quarter of 2009 following commissioning of their most recent expansions in the prior quarter," said Stephen Quin, President & COO of Capstone Mining Corp. "While production was somewhat lower compared to the first quarter, our operations are well positioned to deliver favourable production and costs for the balance of 2009 while continuing our organic growth through exploration and production expansions," he said. "Capstone's modest hedge position has served us well in the first half of the year, generating approximately $23.8 million in cash over the past six months, but we are well exposed to upward copper price movements going forward having less than one third of the rest of this year's forecast production hedged at $2.56 per pound."

   Highlights   -------------------------------------------------------------------------                                            Three Months Ended    Six Months                                                                     Ended   -------------------------------------------------------------------------                                           March 31,    June 30,    June 30,                                               2009        2009        2009   -------------------------------------------------------------------------   -------------------------------------------------------------------------   Earnings (loss) for the period    ($ millions)                              (16.2)       25.8         9.6   -------------------------------------------------------------------------   Earnings (loss) per share                  (0.10)       0.14        0.05   -------------------------------------------------------------------------   Including:   - Earnings from mining operations    ($ millions)                               19.7        18.6        38.3   -------------------------------------------------------------------------   - Loss on derivative instruments    ($ millions)                              (35.4)      (31.3)      (66.7)   -------------------------------------------------------------------------   - Gain on disposal of investments    ($ millions)                                  -        40.7        40.7   -------------------------------------------------------------------------   -------------------------------------------------------------------------   Adjusted Earnings (1) ($ millions)          30.5        16.8        47.3   -------------------------------------------------------------------------   Adjusted Earnings (1) per share             0.19        0.09        0.27   -------------------------------------------------------------------------   -------------------------------------------------------------------------  Cash flow from mining operations(1)    ($ millions)                               26.3        22.6        48.9   -------------------------------------------------------------------------   Cash flow from mining operations(1)    per share                                  0.16        0.12        0.28   -------------------------------------------------------------------------    -------------------------------------------------------------------------   Working capital at end of period    ($ millions)                               77.0       111.6       111.6   -------------------------------------------------------------------------   -------------------------------------------------------------------------   Copper sold (millions lbs)                  27.3        17.8        45.1   -------------------------------------------------------------------------   -------------------------------------------------------------------------   Payable copper produced (millions lbs)      25.1        22.2        47.3   -------------------------------------------------------------------------   Total cash cost(1) per payable pound    of copper produced                         0.91        0.97        0.93   -------------------------------------------------------------------------    Overview    Financial and Production and Highlights for the Three Months Ended June   30, 2009        -  Recorded net earnings of $25.8 million or $0.14 per common share          which mainly included:          -  Earnings from mining operations of $18.6 million,          -  Gain on disposal of investments of $40.7 million, and          -  Net loss of $31.3 million on derivative instruments which is             comprised of:             -  A realized gain of $5.7 million on positions settled during                the period, and             -  An unrealized non-cash loss of $37.0 million on the                reduction of the derivative instrument asset mark-to-market                value over the period due to the increase in the copper                price.         -  Adjusted net earnings(1) were $16.8 million or $0.09 per common          share after making adjustments for certain non-cash and onetime          items, including exclusion of non-cash loss on the reduction of          derivative instrument asset and the gain on the disposal of          investments.       -  Generated cash flow from mining operations(1) of $22.6 million or          $0.12 per common share.       -  Working capital, which includes $70.4 million in unrestricted          cash, increased to $111.6 million at June 30, 2009 from $77.0          million at March 31, 2009.       -  Sold 17.8 million pounds of copper, 6.6 million pounds of zinc,          2.1 million pounds of lead, 6,054 ounces of gold and 380,948          ounces of silver.       -  Produced a total of 22.2 million pounds of payable copper at an          estimated total cash cost(1) of $0.97 per pound of payable copper.