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Capstone Mining Delivers Consistent 2013 Second Quarter Financial Results

VANCOUVER, British Columbia, July 31, 2013 /PRNewswire/ --

Operating Cash Flow of $28.6 million, Net Earnings of $9.2 million or $0.02 per share

(All amounts in US$ unless otherwise specified)

Capstone Mining Corp. ("Capstone") (TSX: CS) today announced its financial results for the three and six months ended June 30, 2013. Net earnings for the quarter were $9.2 million and operating cash flow before changes in working capital [ 1 ] was $28.6 million. Capstone ended the quarter with cash on hand of $459.7 million. Copper production for the quarter at Capstone's two operating mines, Cozamin and Minto, totalled 19.3 million pounds in concentrates (18.6 million pounds of payable copper) at a C1 cash cost [ 1 ] of $1.70 per payable pound of copper produced.

Capstone will hold a conference call and webcast on Wednesday, July 31, 2013 at 11:30 am Eastern time ( 8:30 am Pacific time) to discuss these results; call-in details are provided at the end of this release. This release should be read in conjunction with Capstone's unaudited condensed interim consolidated financial statements and management's discussion and analysis ("MD&A") for the three and six months ended June 30, 2013, which are available on Capstone's website at: http://capstonemining.com/s/Financial_Statements.asp and on SEDAR. An updated corporate presentation, including results to June 30, 2013, will also be available at http://capstonemining.com/s/Presentation.asp.

Overview

                                                                          Q2
                                                                 Q2 2013 2012
                                                 Q2 2013 Q2 2012   YTD    YTD
    Revenue ($ millions)                          58.3    69.6    115.9  140.0

    Copper in concentrates produced (million
    lbs)                                          19.3    21.9    37.9   40.5

    Payable copper produced (million lbs)         18.6    21.1    36.4   39.1
    C1 cash cost per payable pound of copper
    produced[1] ($)                               1.70    1.36    1.71   1.40

    Copper sold (million lbs)                     17.2    20.0    32.3   36.2
    Recognized copper price per pound ($)         3.16    3.34    3.33   3.64

    Net earnings ($ millions)                      9.2    11.6    16.2   27.1
    Net earnings per common share ($)             0.02    0.03    0.04   0.07

    Adjusted net earnings[1] ($ millions)         13.1    14.1    19.1   36.2
    Adjusted net earnings[1] per common share
    ($)                                           0.03    0.04    0.05   0.10

    Operating cash flow
    before changes in working capital[1] ($
    millions)                                     28.6    29.9    48.7   59.0
    Operating cash flow
    before changes in working capital per common
    share[1] ($)                                  0.08    0.08    0.13   0.16

    Cash and cash equivalents ($ millions)                       459.7  489.3

"Net earnings and cash flow were affected by lower copper prices, although improved from the first quarter of 2013 on higher volumes sold," said Darren Pylot, President and CEO of Capstone.

"Activities related to the purchase of BHP Billiton's Pinto Valley mine continue to advance. In the second quarter the transaction received U.S. Federal antitrust approval, the Pinto Valley mine met the operating condition precedent for the transaction and Capstone filed a National Instrument 43-101 compliant technical report for 968 million tonnes of Measured and Indicated Mineral Resource. The transaction is expected to close following transfer of the operating permits, currently expected to occur near the end of the third quarter," continued Mr. Pylot.

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