Capstone Mining First Quarter 2018 Financial Results - Seite 3

• Produced 4,285 tonnes of copper during Q1 2018 at a C1 cash cost^[1] of $0.71 per pound of payable copper produced and all-in sustaining cost^[1] of $1.43 per pound of payable copper produced.
• At Cozamin, production for the quarter was better than expected from higher grade.
• Metallurgical test work was completed around the technical and economic recoverability of the existing zinc resource in the San Rafael zinc zone. This resulted in a revision to the mine plan, bringing in additional zinc resources, starting in July. It is expected that in 2018 this could double contained zinc production (an additional 7 million pounds) and lower C1 cash cost^[1] by $0.25 per pound of payable copper produced and all-in sustaining cost^[1] by $0.15 per payable pound produced. Additional zinc production of between 7 million and 12 million pounds per year and approximately 200,000 ounces of silver per year are anticipated, with associated increases to by-product credits over the next three years. Copper production remains unchanged as the added zinc processing will come from existing unutilized mill capacity.

Operating Outlook
Capstone's consolidated production and cost guidance from continuing operations remains unchanged for the full year.

Cozamin's cost guidance has been updated to reflect lower unit costs resulting from the additional zinc resources expected to be mined from the San Rafael deposit in 2018, lowering Cozamin's expected 2018 C1 cash cost^[1] by approximately $0.25 and all-in sustaining cost^[1] by approximately $0.15 per payable pound of copper produced.  Cozamin's 2018 capital guidance has been increased by $3.0 million as a result of this change, primarily related to the additional required development to access the San Rafael zone. Cozamin's expected 2018 copper production remains unchanged.

Exploration cost guidance is unchanged.  Consolidated capital guidance is $90.0 million with the addition of the $3.0 million development expenditure related to San Rafael zone at Cozamin.

Conference Call and Webcast Details
Capstone will hold a conference call and webcast on Wednesday, April 25, 2018 at 11:30 a.m. Eastern time (8:30 a.m. Pacific time) to discuss these results; call-in details and information on associated slides are provided below. This release is not suitable on a standalone basis for readers unfamiliar with Capstone and should be read in conjunction with Capstone's consolidated financial statements and management's discussion and analysis ("MD&A") for the quarter ended March 31, 2018, which are available on Capstone's website at http://capstonemining.com/investors/financial-reporting/default.aspx and on SEDAR, all of which have been reviewed and approved by Capstone's Board of Directors. An updated corporate presentation, including results to March 31, 2018 and Q1 webcast slides will also be available at http://capstonemining.com/investors/events-and-presentations/default.aspx.