VANCOUVER, Nov. 3 /CNW/ -- Capstone Mining Corp. (CS: TSX) announces that it has acquired 4,500,000 units ("Units") of Nevada Copper Corp. ("Nevada Copper") pursuant to a private placement (the "Private Placement"). Each Unit consists of one common share and one half of one common share purchase warrant (each whole warrant, a "Warrant"). Each whole Warrant is exercisable into one common share for a period of two years from the closing date at an exercise price of $3.00 per common share. If at any time prior to the second anniversary of the closing date, the closing price of Nevada Copper's common shares is greater than $3.50 for at least 20 consecutive trading days, Nevada Copper can send a notice to Capstone stating that the Warrants will expire if not exercised within 30 days. The Units were acquired at a purchase price of CDN$2.50 per Unit representing an aggregate purchase price of CDN$11,250,000.

Prior to the Private Placement Capstone held 534,500 or 1.3% of the issued and outstanding common shares of Nevada Copper. Following the Private Placement, the common shares owned by Capstone represent 11.1% of the issued and outstanding common shares of Nevada Copper. Assuming the exercise of the Warrants, Capstone would own 7,284,500 common shares, or 15.4% of the issued and outstanding common shares of Nevada Copper.

Mr. Darren Pylot, Vice Chairman and CEO of Capstone commented, "This investment in Nevada Copper provides Capstone with exposure to a large, high grade copper project in Nevada, one of the more mining friendly jurisdictions in the US. We are happy to be a part of this project as it progresses towards its next stage of development."

The Units of Nevada Copper were acquired by Capstone for investment purposes. Depending upon market conditions and other factors that Capstone may deem material to its investment decisions, additional shares may be purchased in the open market or in private transactions. Depending on these same factors, the shares currently owned (or hereafter acquired) by Capstone may be sold in the open market or in private transactions.

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

Forward-Looking Statements

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