GROWTH AND INNOVATION€¦ · surety bond obligations post divestiture, impact of climatic...

GROWTH AND INNOVATIONNovember 2020

CAUTIONARY NOTE ON FORWARD LOOKING INFORMATIONThis 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 and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation. Forward-looking statements relate to future events or future performance and reflect our expectations or beliefs regarding future events and the impacts of the ongoing and evolving COVID-19 pandemic. Forward-looking statements include, but are not limited to, statements with respect to the estimation of Mineral Resources and Mineral Reserves, the realization of Mineral Reserve estimates, the timing and amount of estimated future production, costs of production and capital expenditures, the success of our mining operations, the continuing success of mineral exploration, Capstone’s ability to fund future exploration activities, environmental risks, unanticipated reclamation expenses and title disputes. The potential effects of the COVID-19 pandemic on our business and operations are unknown at this time, including Capstone’s ability to manage challenges and restrictions arising from COVID-19 in the communities in which Capstone operates and our ability to continue to safely operate and to safely return our business to normal operations. The impact of COVID-19 to Capstone is dependent on a number of factors outside of our control and knowledge, including the effectiveness of the measures taken by public health and governmental authorities to combat the spread of the disease, global economic uncertainties and outlook due to the disease, and the evolving restrictions relating to mining activities and to travel in certain jurisdictions in which we operate. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes” or variations of such words and phrases, or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative of these terms or comparable terminology. In this document certain forward-looking statements are identified by words including “anticipated”, “guidance”, “plan” and “expected”. By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, amongst others, risks related to inherent hazards associated with mining operations and closure of mining projects, future prices of copper and other metals, compliance with financial covenants, surety bonding, our ability to raise capital, Capstone’s ability to acquire properties for growth, counterparty risks associated with sales of our metals, use of financial derivative instruments and associated counterparty risks, foreign currency exchange rate fluctuations, market access restrictions or tariffs, changes in general economic conditions, accuracy of Mineral Resource and Mineral Reserve estimates, operating in foreign jurisdictions with risk of changes to governmental regulation, compliance with governmental regulations, compliance with environmental laws and regulations, reliance on approvals, licenses and permits from governmental authorities, acting as Indemnitor for Minto Exploration Ltd.’s surety bond obligations post divestiture, impact of climatic conditions on our Pinto Valley and Cozamin operations, aboriginal title claims and rights to consultation and accommodation, land reclamation and mine closure obligations, risks relating to widespread epidemics or pandemic outbreak including the COVID-19 pandemic; the impact of COVID-19 on our workforce, suppliers and other essential resources and what effect those impacts, if they occur, would have on our business, including our ability to access goods and supplies, the ability to transport our products and impacts on employee productivity, the risks in connection with the operations, cash flow and results of Capstone relating to the unknown duration and impact of the COVID-19 pandemic, uncertainties and risks related to the potential development of the Santo Domingo Project, increased operating and capital costs, challenges to title to our mineral properties, maintaining ongoing social license to operate, dependence on key management personnel, potential conflicts of interest involving our directors and officers, corruption and bribery, limitations inherent in our insurance coverage, labour relations, increasing energy prices, competition in the mining industry, risks associated with joint venture partners, our ability to integrate new acquisitions into our operations, cybersecurity threats, legal proceedings, and other risks of the mining industry as well as those factors detailed from time to time in the Company’s interim and annual financial statements and MD&A of those statements, all of which are filed and available for review under the Company’s profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause our actual results, performance or achievements to differ materially from those described in our forward-looking statements, there may be other factors that cause our results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that our forward-looking statements will prove to be accurate, as our actual results, performance or achievements could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on our forward-looking statements.

ALTERNATIVE PERFORMANCE MEASURES“C1 cash cost”, “cash cost”, “adjusted EBITDA”, “operating cash flow before changes in working capital”, “adjusted net income”, “net debt”, “all-in sustaining costs”, “all-in costs” and “available liquidity” are Alternative Performance Measures. Alternative performance measures are furnished to provide additional information. These non-GAAP performance measures are included in this presentation because these statistics are key performance measures that management uses to monitor performance, to assess how the Company is performing, to plan and to assess the overall effectiveness and efficiency of mining operations. These performance measures do not have a standard meaning within IFRS and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. These performance measures should not be considered in isolation as a substitute for measures of performance in accordance with IFRS. For full information, please refer to the Company’s latest Management Discussion and Analysis published on its Financial Reportingwebpage or on SEDAR.

COMPLIANCE WITH NI 43-101Unless otherwise indicated, Capstone has prepared the technical information in this presentation (“Technical Information”) based on information contained in the technical reports and news releases (collectively the “Disclosure Documents”) availableunder Capstone Mining Corp.’s company profile on SEDAR at www.sedar.com. Each Disclosure Document was prepared by or under the supervision of a qualified person (a “Qualified Person” or “QP”) as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators (“NI 43-101”). For readers to fully understand the information in this presentation, they should read the Technical Reports (available on www.sedar.com) in their entirety, including all qualifications, assumptions and exclusions that relate to the information set out in this presentation which qualifies the Technical Information. Readers are advised that mineral resources that are not mineral reserves do not have demonstrated economic viability. The Disclosure Documents are each intended to be read as a whole, and sections should not be read or relied upon out of context. The Technical Information is subject to the assumptions and qualifications contained in the Disclosure Documents. For further details refer to the Company’s NI 43-101 Technical Reports as follows:

• Cozamin Mine, Zacatecas, Mexico published Oct 23, 2020, effective Apr 30, 2020;• Pinto Valley Mine Life Extension – Phase 3 (PV3) Pre-feasibility Study, Miami, Arizona, published Feb 23, 2016,

effective Jan 1, 2016; and• Santo Domingo Project, Region III, Chile, Feasibility Study Update, published Mar 24, 2020, effective Feb 19, 2020.

The Technical Information in this presentation has been prepared in accordance with NI 43-101 and reviewed and approved by Brad Mercer, P. Geol., Capstone's Senior Vice President, Operations and Exploration, a Qualified Person as defined in NI 43-101.

ADDITIONAL REFERENCE MATERIALSRefer to the Company’s news release of October 28, 2020 and MD&A and Financial Statements for the three and nine months ended September 30, 2020, for full details to the information referenced throughout this presentation.

CURRENCYAll amounts are in US$ unless otherwise specified.

ON THE COVER PAGE (L to R)1. Line out meeting at Cozamin as per COVID-19 safety protocols.2. Copper cathode at Pinto Valley ready for shipment. Cathode expansion using new catalytic technology to recover copper

from waste rock; expecting 300-350 Mlbs cathode production over next 20 years. 3. PV3 Optimization work completed in July 2020 included installation of a new secondary crusher that is 50% more

powerful.

Cautionary Notes

CAPSTONE MINING (TSX:CS) • 2

https://capstonemining.com/investors/financial-reporting/default.aspx

Capstone Mining: Prudent Growth and Lower Costs


To build on ~40% copper production growth and ~20% lower costs by 2023 with a multi-asset portfolio to generate strong cash flows in all price environments

Innovate and optimize every aspect of the business to drive costs lower while increasing productivity and improving sustainability best practices

To surface stakeholder value through exploration and operational excellence

Optimization, innovation and expansion to drive higher NPV

PV3 Optimization series of low capital, high IRR projects intended to modernize and debottleneck our operation.

Cathode expansion using new catalytic technology by JettiResources to recover 300-350 Mlbscopper from waste over next 20 years

PV4 Expansion Study targeting increased mining rates, higher mill grades and increased leaching

Low cost, first quartile mine generating free cash flow every year since 2006 start

Ramp-up to 1.35 million tpa by Q2 2021 is on time and budget

Updated life of mine plan with higher copper and silver production, post-expansion, and lower costs

PFS of pillar extraction and paste backfill system underway, targeting increased extraction ratio

New 80-hole drill program aimed to extend mine life beyond 2030

Large scale, fully-permitted project in Chile; Cu-Fe-Au project with US$1.0 billion NPV8% and 2.8 year payback

2020 Cobalt PEA Opportunity pointing to US$1.7 billion NPV8%; robust case to build a low cost, vertically integrated battery-grade cobalt business in Chile

MOU for port and rail infrastructure to potentially reduce capex by $400 million, to $1.1B total, high profitability index1 of 1.1x

SANTO DOMINGOPINTO VALLEY COZAMINSTRATEGY

Refer to the Company’s news releases of July 30, 2020 and October 28, 2020 for full details.1. Profitability Index is after-tax net present value divided by initial capex.

Shareholder Composition

Institution Name % of S/OGRM Investments Ltd. 23%

Korea Resources Corporation (KORES) 10%

Ingalls & Snyder 9%

Third Avenue Management 5%

Columbia Threadneedle 2%

As of November 11, 2020, from Bloomberg and IPREO, plus undisclosed shareholders as per Capstone’s best knowledge

Company Structure Top Five Institutional Shareholders Own ~50% of Capstone


Retail and Other ~40%

Institutional~60%

18-1 18-4 18-7 18-10 19-1 19-4 19-7 19-10 20-1 20-4 20-7 20-10$.20

$.40

$.60

$.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

Shar

ePr

ice

($C

)

0

2

4

6

Volu

me

(milli

ons)

Source: FactSet

Capstone Three Year Price & VolumeVolume Price

TSX:CSShares Outstanding (as at Oct 31/20) 403 million

Market Cap (as at Nov 11/20) US$548 million

Cash and Cash Equivalent (as at Sept 30/20) US$56.8 million

Long Term Debt (as at Sept 30/20) US$219.9 million

Asia & ROW19% Europe

6%

Canada45%

USA30%

Institutional Location

FINANCIAL OVERVIEW (US$ millions)

Q3 2020 YTD 2020

Revenue 130.5 305.6

Net income (loss) 2.3 (15.3)

Adjusted net income (loss)1 9.5 (8.7)

Adjusted EBITDA from continuing operations1,2,3 51.6 75.7

Cash flow from operating activities 27.7 79.8

Operating cash flow before changes in working capital1 44.9 65.6

1. These are alternative performance measures; refer to the Company’s MD&A for the three and nine months ended Sept 30, 2020 for full details. 2. EBITDA is earnings before interest, taxes, depletion and amortization.3. From continuing operations, used as the Minto mine was sold on June 3, 2019.* For the nine months ended September 30, 2020. **For the three months ended September 30, 2020.

Q3 2020 Financial Results and Balance Sheet Strength


$56.8 million cash and short-term

investments

$80 million undrawn revolver

$51.6 millionAdjusted EBITDA1

Q3 20201.62x

net debt/ EBITDA

$136.9MAvailable liquidity1 as of Sept 30/20

$0.09G&A per pound

payable*

$3.1MInterest paid in

Q3 2020**

$0.08Interest per pound

payable**

75 basis points reduction in interest pricing results in ~$2 million per year

annualized savings on interest expense

The Right Management Team


DARREN PYLOTPresident & CEO Over 30 years in mining, founder of Capstone Mining, acquired Cozamin for $3M, which has delivered over $450M free cash flow since.

RAMAN RANDHAWA, CPA, CAChief Financial Officer & SVPOver 19 years mining experience, previously at Goldcorp in multiple VP positions. Successfully lead Capstone’s recent effort to cut $30M of annualized costs.

JASON HOWE, CPA, CASVP, Corporate DevelopmentOver 15 years in mining and 25 years in accounting and finance. Instrumental in executing Capstone’s growth strategy.

WENDY KING, MBA, LLMSVP, Legal, Risk & Governance and Corporate SecretaryPracticing law for over 25 years as in-house counsel and private practice as international-tax specialist.

BRAD MERCER, B.ScSVP, Operations & ExplorationOver 35 years experience managing mineral exploration programs. Exploration excellence has lead to 50% production growth and mine life extension at Cozamin.

JERROLD ANNETT, P.Eng.VP, Strategy and Capital MarketsOver 25 years of global mining and capital markets experience, previously in senior strategic roles for jr. exploration companies and Head of Mining Institutional Sales at Scotiabank.

ALBERT GARCIA III, Ph.D PEVP, ProjectsOver 40 years of experience in engineering, mining and project management for large international capital-intensive projects in challenging locations.

ABEL GONZALEZ VARGASGeneral Manager, CozaminMining engineer-metallurgist with 30 years experience, previously at Grupo Mexico as general manager at different Mexico-based mines. At Cozamin, he consistently leads stellar operating performance while the mine is going undergoing major expansion.

MIKE WICKERSHAMGeneral Manager, Pinto ValleyChemical engineer with over 35 years experience in mining and mineral processing; in a series of roles at Rio Tinto's Iron Ore Company of Canada (IOCC) in various VP and GM roles. His leadership of PV’s optimization and growth strategies will position the mine for future operational excellence.

Optimization, Innovation and Expansion at Pinto Valley

Umut Erol, Metallurgy, Lab and Process Control Superintendent, Pinto Valley

1. Refer to Appendix slide “Pinto Valley Reserves and Resources” and the Company’s 2019 Annual Information Form for full details.

Pinto Valley: Only Operating Mine In This Historic District


• The Globe-Miami district is one of the oldest and most productive mining districts in the United States, with its first recorded production occurring in 1878. Since that time, more than 15 billion pounds of copper have been produced.

• Since 1975, Pinto Valley has produced more than four billion pounds of copper, including ~0.5 billion pounds of cathode.

• Pinto Valley is currently the second largest employer in the Globe-Miami area; total economic impact in Arizona is >$270 million per year.

• Measured and Indicated Resource1 base of one billion tonnes, currently not in Reserve, has the potential to create long-term sustainable benefits for multiple generations.

Carlota(KGHM)

Pinto Valley

Miami (FCX)

Copper Cities (BHP)

Miami (BHP)

Old Dominion

(BHP)

Source: Bing maps and boundaries are approximated

MINE INNOVATION:Blast fragmentation to target 30% fines (minus ½”).Tele-remote dozer to increase worker safety for high risk

applications. Capital of $250k.New mine equipment to increase efficiency while lowering

diesel consumption and GHG emissions. Capital of $6M with ~$800k/year in diesel and operating cost savings.

METALLURGICAL INNOVATION:Pioneering novel catalytic leaching technology from Jetti

Resources, expected to deliver 300-350 Mlbs copper over 20 years from high grade mine waste and historic stockpiles at AISC under $2.00 per pound. Capital <$25M between 2022 to 2025.

□ Pilot plant testing of new coarse particle flotation technology by Eriez HydroFloat to potentially increase overall recovery by 6%. Pilot plant testing in Nov 2020.

□Molybdenum plant re-start with new reagents to improve worker safety and improve overall metallurgical performance. Minimal capital required, expected completion by Q1 2021.

Targeting Higher Throughput AND Higher Recovery


PHASE 1: $17 million in crushing and mill equipment replacements which is 60% completed, with full completion expected by July 2021.

PHASE 2: $10 million in conveyor, mill auto controls, cyclone packs and tailings thickener upgrades planned to be completed by Q3 2021.

TAILINGS MANAGEMENT: Third party study to review path for increased tailings safety and capacity. Completion by H1 2021.

PV3 Optimization – From Start to Finish


9

1. Blast fragmentation optimization, new mine equipment

2. Tele-remote dozer

3. Fine Crushing Plant: larger secondary screen decks, two larger secondary crushers, crushing conveyor upgrades

4. Mill auto controls, four new ball mill shells, new hydrocyclones, *UNDER REVIEW* new mill motors to increase power efficiency and capacity

5. Rougher concentrate pumping capacity upgrade

6. Molybdenum plant re-start

7. *UNDER REVIEW* Pilot plant testing of new coarse particle flotation technology in November 2020

8. Tailings thickener circuit upgrades

9. *UNDER REVIEW* third party study to review Tailings Storage Facility for increased safety and capacity

10. Pioneering novel catalytic leaching technology from JettiResources to enhance leach performance

A focus on return on incremental invested capital, while improving environmental and safety performance

1

2

3

4

5

6

78

10

0

10

20

30

40

50

60

1000x600 600x425 425x300 300x212 212x150 150x106 Total

% C

oppe

r Los

ses

Particle Size,(µm)

Before After Overall Reduction in Cu Losses

Pilot Plant Testing Coarse Particle Flotation TechnologyOpportunity to Increase Overall Copper Recovery by 6%

Eriez Flotation, a world leader in innovative flotation technology has developed a fluidized bed assisted flotation cell call HydroFloat. Positive laboratory results on Pinto Valley flotation circuit samples, Eriez reported an opportunity to reduce copper losses by up to 50%, thereby boosting overall recovery by up to 6%. Pilot plant testing will commence in November 2020 with results expected in Q1 2021. Potential benefits include higher mill throughput while achieving higher copper recovery, lower grinding costs, lower water and energy consumption and increased tailings stability via courser tailings.

Copper Losses Distribution Before and After HydroFloat Laboratory Results by Eriez Flotation


• 25 Mlbs per year SX-EW currently operating at under 20% capacity

• Low cost cathode production from historic and future high-grade waste; all-in cost1 expected to be ~$2.00 per pound

• Cathode expansion is extension to PV3 Optimization• Potential to increase cut-off grade to mill and send more high-grade waste to

leaching• Potential to send certain mill streams to leaching currently reporting to tailings• Cathode production uses less power, ~50% less water, ~40% less CO2 and

~70% less SOx/NOx associated emissions than traditional pyrometallurgical production

• Updated NI 43-101 Technical Report is expected in 2021

1. All-in cost per payable pound produced is all-in sustaining costs per payable pound produced(this is an Alternative Performance Measure; refer to the Company’s MD&A for the three and nine months ended September 30, 2020 for full details.), plus expansion capital. Management uses this measure to analyze margins achieved on existing assets while sustaining and maintaining production at current levels and investing in growth capital projects.

Expanding Cathode Production at PV to 300-350 Mlbs


3%

4%7% 8% 9%

12%

12%

11%

15%17%

17%

14%12%

15%11%10%10% 9% 8%

8%

0

20

40

60

80

100

120

140

160

180

Tota

l Cop

per P

rodu

ctio

n, m

lns

poun

ds

Cathode Expansion Could Deliver Average 10 to 12% Boost to PV Production Profile

Cu in Cathode Cu in Conc % Cathode

Cozamin: Safer, Greenerand Higher Grade

*Commercial production achieved in September 2006 **Year to date to September 30, 20201C1 cash costs is an Alternative Performance Measure.

Q3 2020: Lowest Quarterly C1 Costs1 in Cozamin’s History

$-

$0.50

$1.00

$1.50

$2.00

$2.50

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

C1

cash

cos

ts n

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f by-

prod

ucts

Mlb

s C

oppe

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ion

Mlbs C1 Cost

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020**

Quarterly average copper production (Mlbs)* 5,039 6,593 9,206 8,888 10,303 11,727 11,379 11,416 8,626 7,885 9,222 9,039 8,961 9,214

C1 cash costs1

net of by-products ($/lb) $0.74 $1.44 $0.90 $1.25 $1.27 $1.09 $1.18 $1.26 $1.47 $1.48 $1.16 $0.75 $0.70 $0.71

Q3 2020 C1 cash costs1

$0.36 per pound


One-Way Haulage Loop Only 26 vertical meters until completion in early December 2020. Ramp up to 1.35 tonnes milled per annum by Q2 2021 on time and budget.

Paste Backfill and Dry Stack Tailings

PFS of an underground paste backfill system targeting the extraction of up to 3.5 million tonnes of Indicated Mineral Resources grading 1.89% copper and 42 g/t silver remaining in the MNFWZ in unmined pillars. Updated NI 43-101 expected in January 2021.

Stope Dilution Reduction with improved engineering, planning, long-hole drill control and optimized explosives design.

Truckless Headings Redesign upper areas of Cozamin Reserves to use ore pass, increasing safety and efficiency, while increasing air quality, thereby decreasing ventilation requirements in these areas.

Further Resource to Reserve Conversion

Exclusive of the pillars and reserves, the Indicated Mineral Resource in the MNFWZ are as follows:• copper-silver zones totals 7,248 kt of 1.74% copper, 39 g/t silver, and 0.57% zinc• zinc-lead-silver zones total 3,704 kt of 0.21% copper, 36 g/t silver, 3.12% zinc, and 1.48% lead

Work will be initiated to evaluate alternative mining techniques capable of lower costs and decreased dilution.

Exploration Upside 80-Hole Drill Program OngoingTargeting expansion potential of both Vein 10 and Vein 20 to the southeast, both within and external to the last Mineral Resource estimate

Executed an earn-in deal with Alien Metals Ltd. for exploration drilling 50 km away from Cozamin’s mill, on the Pan American Highway; their Donovan 2 copper-gold project is an undrilled bedrock volcanogenic massive sulphide (VMS)-style discovery

Cozamin 2021 Catalysts


New 80-hole drill program announced on Sept 9, 2020

New drill program targeting down-dip extension to the SE of both Vein 10 and Vein 20 with a 1 km exploration drift to provide a drilling platform to test new polymetallic copper, lead, zinc, and silver area intersected in a 650 metre step-out from current resource

Cozamin Exploration: Targeting Untested Territory


A Major Step-Forward For Santo Domingo

Sept 16, 2020: Capstone Enters into MOU with Puerto Ventanas S.A. for Rail and Port Facilities at Santo Domingo

Santo Domingo in the Middle of a Growing Mining District

(TSX:CS) • 18

~1,000m above sea level20 kmREGION III, CHILE

Significant De-Risking Capital Spend for Santo Domingo

1. Fixed capital costs, turn-key proposal from Posco E&C for mine site infrastructure at below Feasibility estimates

2. MOU with Puerto Ventenas S.A. to potentially transfer $400 million in capital expenditure for off-site infrastructure1

3. Reduced capital spend is $1.1 billion (100% basis), profitability index2 of 1.1x

Pathway on Financing the Reduced Capital Estimate

1. Gold Stream FinancingPayable gold over 18 year mine life is 283k ounces (100% basis); gold stream worth ~$300 million

2. Project Debt Financing Debt structure assigned to project level for 50% of reduced project capital estimate

3. Cash Proceeds on Sale of Capstone Interest For a strong partner with a track record of mine building, ramp-up and operational excellence, Capstone would be willing to sell down to below 50%

1. See the Company’s news release of September 16, 2020 for full details.2. Profitability Index is after-tax net present value divided by initial capex.

Unlocking the Santo Domingo OpportunityIllustrative Pathway to Financing Santo Domingo

Santo Domingo Financial Plan $ Millions

Reduced capital scenario ~$1,100M

Gold stream financing (~$300M)

Capital spend net of gold stream financing $800M

Project financing – 50% of project capital ($550M)

Remaining balance of capital to be funded @ 100% $250M

Capstone portion based on current ownership 70% $175M

Potential Capstone cash proceeds on sale of portion of interest ??

Capstone remaining balance required equity contribution Target is Zero


• PEA Cobalt1 opportunity, incremental US$0.67B; potential to add additional US$0.63B to NPV8%

• Simple flowsheet using a series of conventional metallurgical steps to achieve 78% cobalt recovery and low costs

• 10.4 million pounds of cobalt per year LOM in the form of 22,600 tonnes per year of battery-grade cobalt sulfate

• District opportunity to expand once cobalt production facility established

1. Refer to the Company’s news release of February 19, 2020 for full details. 2. Refer to the Company’s news release of September 16, 2020 for full details.

A Rare First Quartile Cu-Fe Project With Cobalt Optionality

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

$(3,000)

$(2,000)

$(1,000)

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

-3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

US$

milli

on

Year

Cumulative FCF and CuEq Grade Over LOM

Copper Grade (Cu) Copper Eq. Grade (Fe)

Copper Eq. Grade (Co) Cumulative free cash flow (PEA case) - $M

Note: Copper equivalent grade includes the conversion of magnetite iron grade and cobalt grade into copper equivalent grade based on relative values using 2020 Santo Domingo technical report pricing assumptions of Copper: $3.00 per pound, Iron (65%, FOB Santo Domingo Port): $80 per tonne and Cobalt: $20 per pound (Refer to the Company’s news release of February 19, 2020 for full details).

$5,293 million


Upcoming Catalysts

PINTO VALLEY• Coarse particle flotation pilot plant

starting in November

COZAMIN• One-way ramp on track for

completion for December

SANTO DOMINGO• MOU 90-day period ends in

December

PINTO VALLEY• PV3 Optimization work completed

• Updated technical report released in H2

COZAMIN• PFS Pillar Extraction released in Q1

• 80-hole drill program continues

• PFS paste backfill and dry stack tailings

SANTO DOMINGO• Partnership announced, financing

secured and commencement of construction

• Cobalt feasibility study underway

PINTO VALLEY• PV3 Optimization achieves 60-63

ktpd with 85-90% recovery

• PV4 Expansion Study released

COZAMIN• Resource to Reserve conversion

SANTO DOMINGO• Cobalt feasibility announced and

permitting underway

2020 2021 2022

~40% copper production

growth

~20% lower C1 costs

2024Transformational

growth with Santo Domingo

2023


2020e 2021e 2022e 2023e

C1 Cash Costs per lb

*Assumes gold to silver ratio of 78x, $1,950/oz Au, $25/oz Ag. Silver and gold ounces are combined Pinto Valley + Cozamin. Copper pricing for EBITDA: Q4 2020 $3.00/lb (results in $2.84/lb for full year 2020 avg.). 2021/2022/2023 - $3.00/lb.C1 cash costs are Alternative Performance Measures; refer to the Company’s MD&A for the three and nine months ended September 30, 2020 for full details.

170% EBITDA Growth at $3 Copper

2020e 2021e 2022e 2023e

Copper

$115 Million

$210 Million

$285 Million

$310 Million

2020e$2.84/lb Cu

2021e$3.00/lb Cu

2022e$3.00/lb Cu

2023e$3.00/lb Cu

2020e 2021e 2022e 2023e

Silver Equivalent Gold Ounces*

Silver

~40% copper production growth

>20% silver equivalent

production growth

~20% lower C1 cash costs

170% EBITDA GROWTH AT $3.00 COPPER

~2.7Moz

~140-155Mlbs

~180Mlbs

~$1.85 to

$2.00

~1.8Moz

~2.6Moz

~2.0Moz

~200Mlbs

~210Mlbs

~$1.75~$1.50 ~$1.45


148 Mlbs

180 Mlbs200 Mlbs

210 Mlbs

375 Mlbs

2020E 2021E 2022E 2023E 2024E

SAN

TO D

OM

ING

O

50% of Santo Domingo’s expected production after first shipment equates to an additional 165 million pounds of production

2024 Will Be Transformational


0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

0.00 0.50 1.00 1.50 2.00

RO

IIC

Profitability index

1. Santo Domingo scenario assumes selling down ownership interest from 70% to 50%. Assumes reduction in port capex $400M from technical report and associated increased operating costs. *ROIIC is Return on Incremental Invested Capital, NOPAT is Net Operating Profit After Tax, Profitability Index is after-tax net present value divided by initial capex.

Focused on Low Capital and High Return ROIIC ProjectsAvg 5 Year

Annual NOPAT*

($M)

Total Initial Capex ($M)

Average ROIIC* IRR

Incremental NPV($M)

Profitability Index

PV3 Optimization (announced to date) $12 $40 29% 32% $69 1.7

Cathode Expansion (Jetti Resources) $7 $10 71% 171% $98 9.8

Cozamin Pillar Extraction $31 $25 122% 177% $22 0.9

Cozamin Exploration $38 $20 190% 198% $40 2.0

Santo Domingo1

(Low Capex Scenario, 50% target ownership)

$99 $560 18% 29.5% $599 1.1

Santo Domingo1 Cobalt(Incremental PEA, 50% target ownership)

$56 $330 17% 27% $315 1.0


ESG Performance

Pinto Valley’s new CAT 994K loader burns 41 less gallons of fuel per hour than the current shovels, both saving on operational costs and reduce CO2 emissions. The improved efficiency will save approximately 116,000 gallons of fuel in 2020. A second loader is being added in 2021, and are expected to displace approximately 10,000 shovel hours a year, which should save approximately 410,000 gallons of fuel and millions in maintenance costs.


INITIATIVES BENEFITSHealth

and Safety

WaterWaste and Hazardous Materials

Climate Change and

Energy Emissions

Air Emissions

Employment, Diversity &

Inclusion and Education

PINTO VALLEY

Copper cathode using Jetti Resources technology - Decrease mine waste and overall footprint- Less energy intensive production of copper- Creating margins from historic waste

New 994K loader fleet and other equipment - Approx. 40 gallons less diesel per hour than current shovel Coarse Particle Flotation Technology from Eriez Flotation

- Lower energy and water consumption - Increase tailings stability

Blast fragmentation optimization - Lower energy consumption Restart of Moly plant with organic depressant - Safer for workers, lower odor emissions and remove risk of

poisonous gas emission COZAMIN

One-way haulage loop to debottleneck the mine - Decrease traffic-related hazards Pillar extraction, paste backfill - Decrease mine waste and surface tailings footprint

- Resulting in a more geotechnically stable mine Filtered dry stack tailings prefeasibility study - Greatly increase water reclaimed from tailings

- Reduce socio-environmental risks associated with traditional slurry tailings

Ore pass / truckless headings in upper part of the mine

- Increasing safety and underground air quality, thereby reducing ventilation (energy) requirements

Implement ventilation on demand automation - Increase worker safety- Reduce energy consumption

Sustainable Benefits of Some of Our Current Initiatives


-

0.50

1.00

1.50

2.00

2.50

3.00

Jan-

14

Apr-1

4

Jul-1

4

Oct

-14

Jan-

15

Apr-1

5

Jul-1

5

Oct

-15

Jan-

16

Apr-1

6

Jul-1

6

Oct

-16

Jan-

17

Apr-1

7

Jul-1

7

Oct

-17

Jan-

18

Apr-1

8

Jul-1

8

Oct

-18

Jan-

19

Apr-1

9

Jul-1

9

Oct

-19

Jan-

20

Apr-2

0

Jul-2

0

Oct

-20

Rolling 12 month TRIFR Rolling 12 month LTIFR Industry TRIFR Industry LTIFR

Consolidated Safety Performance

Freq

uenc

y(/2

00k

hour

s)

KEY INITIATIVES

• Health Clinic established at Pinto Valley in June 2017 improving case management

• Ongoing training at all levels "Values in Action" and "Leadership in Action"

• Reward Points System encourages reporting unsafe acts and conditions

• Declining Lagging Indicator curves

• Adopted system of Leading Indicators in 2020

• Continuous improvement in 2020• Investment in remote equipment• Critical Task Inventory and SOP overhaul• Planned investment in fatigue monitoring

systems at PV and personal underground location tracking system at Cozamin

Industry TRIFR: National Mining Assn (USA) “Mine Safety & Health at a Glance 1931-2019” Industry LTIFR: MSHA (USA) “Mine Injury & Worktime Quarterly Statistics – Metal/Nonmetal Data

Safety Performance


APPENDIX

2020 CONSOLIDATED GUIDANCE ON TRACK

140 – 155million pounds of copper production

$1.85 - $2.00C1 cash costs1

Q3 2020 Results

Q3 2020 YTD 2020Copper production (million pounds)Pinto Valley 27.9 84.9Cozamin 10.6 27.6

Total 38.5 112.5C1 cash costs1 ($/lb.) producedPinto Valley $2.38 $2.30Cozamin $0.36 $0.71

Consolidated $1.82 $1.91


Sensitivity Analysis ($ millions) 2021E 2022E 2023EEBITDA

Cu $3.00/lb, Ag $22.00/oz $215 $300 $315

Cu $3.25/lb, Ag $22.00/oz $260 $350 $370

Cu $3.00/lb, Ag $24.50/oz $220 $307 $322

EBITDA Sensitivity

Copper +/- $0.25/lb $45 $50 $55

Silver +/- $2.50/oz $5 $7 $7

Sensitivity to Higher Copper Prices


DALE PENIUK, CPA, CA, B.CommFormer Assurance Partner, Mining, KMPG LLP and is currently Audit Committee Chair for Lundin Mining, Argonaut Gold and Miramont Resources.

DARREN PYLOTPresident & CEO of Capstone Mining Corp.Over 30 years in mining, founder of Capstone Mining and Silverstone Resources. Currently also a board member with Zena Mining.

SEUNGWAN SHON, M.Sc Geology Has been with KORES since 2001 and currently leads their Metals Team, managing overseas copper projects. Has held numerous positions, including Mine Manager of Boleo Mine, Sr. Manager of KORES Corporate Partnership Team and Sr. Manager of the Exploration Team for Nonmetal Mineral Deposits in South Korea.

RICHARD ZIMMER, MBA, P.Eng, B.ScOver 40 years of mining and resource experience. Former President & CEO of Far West Mining, prior to that was with Teck Corporation, Teck-Cominco and Teck-Pogo. Currently also a board member with Alexco Resources and Ascot Resources.

GEORGE BRACK, MBA, CFA, BA ScChairman of the BoardOver 30 years in mining focused on exploration, corporate development and investment banking. Former Managing Director & Industry Head, Mining at Scotia Capital; President of Macquarie NA Ltd.; VP Corp Dev at Placer Dome and VP Mining at CIBC Wood Gundy. Currently also a board member with Wheaton Precious Metals and Alio Gold.

ROBERT GALLAGHER, BA ScOver 40 years of experience in developing and operating large-scale mining projects. Former President & CEO of New Gold; CEO of Peak Gold; VP Operations at Newmont Asia Pacific; as well as previously with Placer Dome. Currently also a board member with Southern Arc Minerals and Japan Gold.

PETER MEREDITH, CPA, CAFormer Deputy Chairman and CFO of Turquoise Hill Resources and spent 31 years at Deloitte as a Partner. Currently also a board member with Ivanhoe Mines, Great Canadian Gaming Corporation and Cordoba Minerals.

Board of Directors


Total Global Copper Inventory is Near a 10 Year Low

Source: Bloomberg CAPSTONE MINING (TSX:CS) • 32

DEMAND

• Copper is vital to the world’s digital green future as it’s difficult to duplicate copper’s unique characteristics: antimicrobial, highly ductile, resistant to corrosion and best conductor of electrical and thermal heat.

• Copper is a national strategic and critical metal required in military and national security applications.

COPPER EFFECTIVENESS

• Average copper effectiveness is ~500 tCO2/tCu, or for every tonneof copper embedded in the global economy has the potential to remove ~5005 of CO2 per annum.1

SUPPLY

• Copper production needs to grow between 3-5% per year between now and 2030 in order to meet the new government targets.1

1. Bernstein Research, Global Metals & Mining: King Copper once and future, Bob Brackett, Ph.D., September 14, 2020.

Copper for a Clean Future


GHG Emissions (tonnes of CO2eT) GHG Emissions (total CO2eT) per Tonne Copper Produced

*Sludge at Pinto Valley was 5t in 2017, 3t in 2018 and 4t in 2019.

Climate Change and Environmental PerformanceEnergy Consumption (000’s gigajoules)

1,364 1,460 1,326

1,419 1,411 1,445

-

500

1,000

1,500

2,000

2,500

3,000

3,500

2017 2018 2019

Fuel Electricity

95,883 99,033 89,943

186,566 185,470 189,727

0

50,000

100,000

150,000

200,000

250,000

300,000

2017 2018 2019

Direct Indirect

Mining Waste (Mt)*

3.81

4.04 4.02

3.65

3.70

3.75

3.80

3.85

3.90

3.95

4.00

4.05

4.10

2017 2018 2019

GHG Emissions (total CO2eT)per Tonne Ore Mined

0.0131

0.0140 0.0140

0.0126

0.0128

0.0130

0.0132

0.0134

0.0136

0.0138

0.0140

0.0142

2017 2018 2019

26.2 27.7 30.1

20.3 20.0 19.6

-

10.0

20.0

30.0

40.0

50.0

60.0

2017 2018 2019

Waste Rock Tailings

Hydro, 5%

Coal, 33%

Other, 1%Nuclear,

9%Renewabl

es, 6%

Natural Gas, 47%

Purchased Electricity by Source


Employment Performance for 2019


Pinto Valley,

548

Corporate & Exploration, 37

Santo Domingo, 12

Cozamin, 452

Total Employees = 1,049

Male, 920

Female, 129

Employees by Gender

Hiring and Turnover Rate

15%

18%

New hire rate Turnover rate

141

165

17 24

- 20 40 60 80

100 120 140 160 180

New hires Turnover

Male Female

Hiring and Turnover by Gender

ARIZONAPopulation of 7.2M Confirmed: 240,122Deaths: 5,891Death rate: 2.5%

ZACATECASPopulation of 1.5M Confirmed: 10,483Deaths: 1,004Death rate: 9.6%

CHILEPopulation of 18.7MConfirmed: 504,525Deaths: 14,026Death rate: 2.8%

BRITISH COLUMBIAPopulation: 6MConfirmed: 13,588Deaths: 259Death rate: 1.9%

Focused on Four Key Principles

Our COVID-19 Response

Stats from varying sources as of October 28, 2020. CAPSTONE MINING (TSX:CS) • 37

Our COVID-19 ResponseEnsure the Health and Safety of Our People and the Communities in Which We Operate

Protecting Our People Thermal screening Rapid COVID testing Physical distancing protocols Masks as standard PPE Engineered controls (plexi-glass, barriers) Outdoor lineout process Enhanced sanitization

Extended paid sick leave At risk employees off site Engaging remote work Travel business essential only Reduced visitors & guests Education of prevention measures Onsite medical staff

Additional Health & Safety Measures Community SupportPinto Valley - Mailed pamphlets to educate families on the risks and how to protect

themselves at work and at home

- Conducted employee pulse survey to understand how to further support employees and their mental health

- Provided access to virtual healthcare

- Donated N95 masks to medical and public sector workers

- Donated $100,000 to the United Fund of Globe-Miami

- Will launch an employee contribution and company matching program for the United Fund in November

Cozamin - Completed training to safeguard employees and contractors and the site has achieved “Safe Company” status by local authorities

- Provided masks and monetary donations to Zacatecas government to support local hospitals and businesses

- Purchased hospital beds to expand capacity for COVID-19 patients in the state


• In October, Cozamin received the “Health Security” badge from the Secretary of Health, through the Mexican Institute of Social Health (IMSS)

• In September, Cozamin was awarded the Ethics and Values Award in the “Multinational Companies” category by the CONCAMIN (Confederation of Industrial Chambers of Mexico), recognizing companies who have developed a culture governed by ethics and values

• Each year between 2012 to 2020, Cozamin was recognized as a Distinctive ESR® Socially Responsible Company by the Mexican Centre for Philanthropy (CEMEFI) for success in strategic CSR and efforts to assume voluntary and public commitment to implement socially responsible management and continuous improvement as part of its culture and business strategy.

• Each year between 2015 to 2020, Cozamin was awarded the Clean Industry Certification by Mexico's Federal Attorney for Environmental Protection (Procuraduría Federal de Protección al Ambiente or PROFEPA) for undertaking voluntary environmental audits that certifies full compliance with Mexican federal environmental laws.

• In the past five years, Capstone has received an ISS Governance Score of 1, indicating the highest level of governance quality and the lowest level of governance risk.

2020 Awards and Recognition


Capstone History

January: Acquired Cozamin Project, in Zacatecas Mexico

October: Development of Cozamin began

February:Minto development began

June: Silverstone distributed as a dividend to Capstone shareholders

September:Cozamin began commercial production

May:Sherwood merged with Western Keltic to acquire Kutcho Project

November:Merged with Sherwood Copper

May:Silverstone combined with Silver Wheaton

June:Formed a strategic partnership with KORES, and together acquired Far West Mining for the Santo Domingo Project

KORES also took an equity position in Capstone

October:Acquired Pinto Valley mine from BHP

December: Sold KutchoProject to Desert Star Resources

June:Sold Minto Mine to Pembridge Resources

June: Sherwood Copper acquired Minto Project in Yukon, Canada

October:Minto began commercial project

2004 2006 2008 2009 2011 2013 2017 20192005 2007 2021+2021+The best is yet to come


COPPER

Total Proven & Probable Cu Mineral Reserve 1.24 Mt contained metal (399 Mt @ 0.31% Cu)

Total Measured & Indicated Cu Mineral Resource 4.13 Mt contained metal (1,357 Mt @ 0.30% Cu)

Measured Cu Mineral Resource 1.89 Mt contained metal (567 Mt @ 0.33% Cu)

Indicated Cu Mineral Resource 2.24 Mt contained metal (791 Mt @ 0.28% Cu)

Inferred Cu Mineral Resource 0.43 Mt contained metal (176 Mt @ 0.25% Cu)

MOLYBDENUM

Total Proven & Probable Mo Mineral Reserve 0.025 Mt contained metal (399 Mt @ 0.006% Mo)

Total Measured & Indicated Mo Mineral Resource 0.074 Mt contained metal (1,357 Mt @ 0.005% Mo)

Inferred Mo Mineral Resource 0.043 Mt contained metal (176 Mt @ 0.005% Mo)

NOTESAll Mineral Reserves and Mineral Resources as at December 31, 2019. For full information, please refer to the Company’s Annual Information Form for December 31, 2019 available on www.capstonemining.com or SEDAR.

Reserves: Claydon Craig, P.Eng., Superintendent of Mine Technical Services at Pinto Valley is the Qualified Person responsible for the Pinto Valley Mineral Reserves estimate. Economic inputs to the block model were USD$2.75/lb Cu and USD$12.50/lb Mo. Mineral Reserves are reported above 0.175% Cu cut-off grade. Summation errors due to rounding. Contained metals are reported at 100%.

Resources: Klaus Triebel, CPG., Chief Geologist at Pinto Valley, is the Qualified Person responsible for the Pinto Valley Mineral Resourcesestimate. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. Mineral Resources are presented inclusive of Mineral Reserves. Mineral Resources are reported as at December 31, 2019 above a 0.17% Cu cut-off grade. The economic assumptions for the reasonable prospects pit include: $3.30/lb Cu, $10.00/lb Mo, 88% Cu recovery, 50% Mo recovery, $1.50/ton mining costs, $1.50/ton G&A costs, $5.00/ton milling costs, and a pit slope of 45°. Totals may not tally due to rounding. Contained metals are reported at 100%.

Pinto Valley Reserves & Resources


http://www.capstonemining.com/

Cozamin Reserves & ResourcesCOPPERTotal Proven & Probable Cu Mineral Reserve 182 kt contained metal (10,178 kt @ 1.79% Cu)Total Measured & Indicated Cu Mineral Resource 430 kt contained metal (27,459 kt @ 1.57% Cu)Inferred Cu Mineral Resource 106 kt contained metal (16,558 kt @ 0.64% Cu)

SILVERTotal Proven & Probable Ag Mineral Reserve 13,527 koz contained metal (10,178 kt @ 41 g/t Ag)Total Measured & Indicated Ag Mineral Resource 39,209 koz contained metal (27,459 kt @ 44 g/t Ag)Inferred Ag Mineral Resource 18,983 koz contained metal (16,558 kt @ 36 g/t Ag)

ZINCTotal Proven & Probable Zn Mineral Reserve 36 kt contained metal (10,178 kt @ 0.36% Zn)Total Measured & Indicated Zn Mineral Resource 314 kt contained metal (27,459 kt @ 1.14% Zn)Inferred Zn Mineral Resource 375 kt contained metal (16,558 kt @ 2.26% Zn)

LEADTotal Proven & Probable Pb Mineral Reserve 5 kt contained metal (10,178 kt @ 0.05% Pb)Total Measured & Indicated Pb Mineral Resource 87 kt contained metal (27,459 kt @ 0.32% Pb)Inferred Pb Mineral Resource 101 kt contained metal (16,558 kt @ 0.61% Pb)NOTES: Mineral Resources and Mineral Reserves as at April 30, 2020. For full information, please refer to the Company’s news release of September 9, 2020.RESERVES: Tucker Jensen, P.Eng., Superintendent Mine Operations at Capstone Mining Corp., is the Qualified Person for the Cozamin Mineral Reserve. Disclosure of the Cozamin Mine Mineral Reserve as of April 30, 2020 was completed using fully diluted mineable stope shapes generated by the Maptek Vulcan Mine Stope Optimizer software and estimated using the 2020 MNFW and MNV resource block models by Garth Kirkham, P.Geo., FGC, Kirkham Geosystems Ltd. Mineral Reserves are reported at a US$52.29/t net smelter return (“NSR”) cut-off using the NSR20CuRSV formula: ($50.762*%Cu + $0.412*Ag ppm)*(1-NSRRoyalty%) for copper zones based on metal price assumptions (in US$) of Cu = $2.75/lb and Ag = $17.00/oz, and metal recoveries of 96% Cu, 86% Ag and the NSR20ZnRSV formula: ($49.756*%Cu + $0.381*Ag ppm + $8.035*%Pb + $11.820*%Zn)*(1-NSRRoyalty%) for zinc zones based on metal price assumptions (in US$) of Cu = $2.75/lb, Ag = $17.00/oz, Pb = $0.90/lb, Zn = $1.00/lb and metal recoveries of 94% Cu, 78% Ag, 47% Pb and 67% Zn. Tonnage and grade estimates include dilution and recovery allowances. The NSR royalty rate applied varies between 1% and 3% depending on the mining concession. An exchange rate of MX$20 per US$1 is assumed. All metals are reported as contained. Figures may not sum exactly due to rounding..RESOURCES: Garth Kirkham, P.Geo., FGC, Kirkham Geosystems Ltd. is the independent Qualified Person for the Cozamin Mineral Resource. Mineral Resources are classified according to CIM (2014) definitions, estimated following CIM (2019) guidelines and have an effective date of April 30, 2020. Mineral Resources are reported using NSR20RES formula: (Cu*$60.535 + Ag*$0.472 + Zn*14.865 + Pb*$9.147)*(1-Royalty%) based on metal price assumptions (in US$) of Cu = $3.25/lb, Ag = $20.00/oz, Zn = $1.20/lb, Pb = $1.00/lb, metal recoveries of 95% Cu, 82% Ag, 70% Zn, 48% Pb, confidential current smelter contract terms, transportation costs and royalty agreements from 1 to 3%, as applicable, are incorporated. An exchange rate of MX$20 per US$1 is assumed. Totals may not sum exactly due to rounding. The NSR cut-off of US$50/tonne is based on historical mining and milling costs plus general and administrative costs. The Mineral Resources considers underground mining by long-hole stoping and mineral processing by flotation. No dilution is incorporated in the Mineral Resource. All metals are reported as contained. Mineral Resource estimates do not account for mineability, selectivity, mining loss and dilution. These Mineral Resource estimates include Inferred Mineral Resources considered too speculative geologically to apply economic considerations for categorization as Mineral Reserves. However, it is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Resources. CAPSTONE MINING (TSX:CS) • 42

COPPER EQUIVALENT Total Measured & Indicated CuEq Mineral Resource 537 Mt @ 0.52% CuEqInferred CuEq Mineral Resource 48 Mt @ 0.41% CuEq

COPPERTotal Proven & Probable Cu Mineral Reserve 1,167 kt contained metal (392.3 Mt @ 0.30% Cu)Total Measured & Indicated Cu Mineral Resource 537 Mt @ 0.30% CuInferred Cu Mineral Resource 48 Mt @ 0.19% Cu

GOLDTotal Proven & Probable Au Mineral Reserve 506.7 koz contained metal (392.3 Mt @ 0.04 g/t Au)Total Measured & Indicated Au Mineral Resource 537 Mt @ 0.039 g/t AuInferred Au Mineral Resource 48 Mt @ 0.025 g/t Au

IRONTotal Proven & Probable Fe Mineral Reserve 75.1 Mt magnetite concentrate (392.3 Mt @ 28.2% Fe)Total Measured & Indicated Fe Mineral Resource 537 Mt @ 25.7% FeInferred Fe Mineral Resource 48 Mt @ 23.6% Fe

NOTES: Mineral Reserves as at December 31, 2019 and Mineral Resources as at February 13, 2020. For full information, please refer to the Company’s Annual Information Form for December 31, 2019 available on www.capstonemining.com or SEDAR.

RESERVES: Mineral Reserves have an effective date of 14 November 2018 and were prepared by Mr. Carlos Guzman, CMC, an employee of NCL. Mineral Reserves are reported as constrained within Measured and Indicated pit designs and supported by a mine plan featuring variable throughput rates and cut-off optimization. The pit designs and mine plan were optimized using the following economic and technical parameters: metal prices of US$3.00/lb Cu, US$1,280/oz Au and US$100/dmt of Fe concentrate; average recovery to concentrate is 93.4% for Cu and 60.1% for Au, with magnetite concentrate recovery varying on a block-by-block basis; copper concentrate treatment charges of US$80/dmt, U$0.08/lb of copper refining charges, US$5.0/oz of gold refining charges, US$33/wmt and US$20/dmt for shipping copper and iron concentrates respectively; waste mining cost of $1.75/t, mining cost of US$1.75/t ore and process and G&A costs of US$7.53/t processed; average pit slope angles that range from 37.6º to 43.6º; a 2% royalty rate assumption and an assumption of 100% mining recovery. Rounding as required by reporting standards may result in apparent summation differences between tonnes, grade and contained metal content. Tonnage measurements are in metric units. Copper and iron grades are reported as percentages, gold as grams per tonne. Contained gold ounces are reported as troy ounces, contained copper as million pounds and contained iron as metric million tonnes.

Santo Domingo Reserves & Resources

RESOURCES: Mineral Resources are classified according to CIM (2014) standards. Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The Qualified Person for the estimates is Mr. David Rennie, P. Eng., an associate of Roscoe Postle Associates Inc. Mineral Resources for the Santo Domingo Sur, Iris, Iris Norte and Estrellita deposits have an effective date of 13 February 2020. Mineral Resources for the Santo Domingo Sur, Iris, Iris Norte and Estrellitadeposits are reported using a cut-off grade of 0.125% copper equivalent (CuEq). CuEq grades are calculated using average long-term prices of US$3.50/lb) Cu, US$1,300/oz Au and US$99/(dmt) Fe conc. The CuEq equation is: % Cu Equivalent = (Cu Metal Value + Au Metal Value + Fe Metal Value) / (Cu Metal Value per percent Cu). The general equation for metal value is: Metal Value = Grade * Cm * R * (Price – TCRC – Freight) * (100 – Royalty) / 100, were Cm is a constant to convert the grade of metal to metal price units, R is metallurgical recovery, and TCRC is smelter treatment charges and penalties. Only copper, gold and iron were recognized in the CuEq calculation; cobalt and sulphur were excluded. Mineral Resources are constrained by preliminary pit shells derived using a Lerchs–Grossmann algorithm and the following assumptions: pit slopes averaging 45º; mining cost of US$1.90/t, processing cost of US$7.27/t (including G&A cost); processing recovery of 89% copper and 79% gold, iron recoveries are calculated based on magnetic susceptibility; and metal prices of US$3.50/lb Cu, US$1,300/oz Au and US$99/dmt Fe concentrate. Rounding as required by reporting standards may result in apparent summation differences. Tonnage measurements are in metric units. Copper, iron and sulphur are reported as percentages, gold as grams per tonne and cobalt as parts per million.

http://www.capstonemining.com/

GENERAL INQUIRIES

Capstone Mining Corp. Suite 2100 – 510 West Georgia StreetVancouver, BC V6B 0M3

www.capstonemining.com [email protected] 1-604-684-8894 1-866-684-8894 (N.A. toll free)

MEDIA AND INVESTOR INQUIRIES

Jerrold AnnettVice President, Strategy & Capital MarketsSuite 2700 – 161 Bay StreetToronto, ON M5J 2S1 1-416-572-2272

Virginia MorganManager, Investor Relations & CommunicationsSuite 2100 – 510 West Georgia StreetVancouver, BC V6B 0M3 604-674-2268

[email protected]

Contact Information

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