VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- Capstone
Mining Corp. ("Capstone") (TSX: CS) is pleased to report its 2008 expansion and exploration plans and budgets for the Cozamin mine located in Zacatecas State, Mexico. All dollar amounts are stated in U.S. dollars unless otherwise stated.
MINE EXPANSION
Capstone is pleased to report it has started the expansion of the
Cozamin mine from the current rate of 2,200 tonnes per day ("tpd") or
750,000 tonnes per year ("tpy") to 3,000 tpd or approximately 1
million tpy, a 36% increase in production. This expansion is expected
to be completed by September 2008 at a total budgeted cost of $9.5
million (including a 15% contingency). The major areas of the
expansion include the following; a new larger production ramp will be
driven from surface down to the internal level 8 decline ramp within
the mine (approximately 1,400m). The internal ramps from level 8 to
12 level will be enlarged and the underground crusher will be moved
to a new dump pocket at level 11.5. This larger production ramp will
provide the required additional ore haulage capacity and will
compliment the 2,000 tpd shaft as well as allowing larger sized
trucks to transport ore to surface. The cost of the ramp and
equipment is estimated to be $4.0 million. A new 115kV high tension
power line and substation will be constructed to supply up to 7.5mW
to the mine. A 1.5mW generator will also be added to provide
additional power to the mine before power line completion and will be
used as an emergency power supply in the future when power outages
occur. The upgrade in power is estimated to cost $3.6 million.
Modifications within the plant include increasing belt sizes within
the crushing area and larger floatation cells to handle the increase
in concentrates. This is estimated to cost $1.2 million. An
additional 6m lift will be added to the tailings dam at a cost of
$700,000.

PRODUCTION FORECAST

As a result of the expansion to 3,000 tpd, Capstone is revising
upward its 2008 and 2009 metal production forecast as follows;


------------------------------------------------
2008F 2009F
------------------------------------------------

------------------------------------------------
Tonnes milled 850,000 1,000,000
------------------------------------------------

------------------------------------------------
Copper (payable lbs) 30,000,000 40,000,000
------------------------------------------------
Silver (payable ozs) 1,300,000 1,500,000
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Zinc (payable lbs) 9,000,000 10,000,000
------------------------------------------------
Lead (payable lbs) 5,100,000 5,000,000
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EXPLORATION
A total of 18,000m of underground drilling and 650m of
underground drifting are planned within the Cozamin mine. This
drilling will be to upgrade existing inferred resources to the
measured and indicated categories as well as to continue to explore
to depth. This 2008 program is budgeted to cost $2.5 million
(including a 15% contingency).

An additional 6,500m will be drilled from surface to explore the Mala
Noche vein along strike and outside of the current resource area. The
program is budgeted at $1.7 million (including a 15% contingency).

Robert B. Barnes, P.Eng, Vice President of Operations for Capstone
and a qualified person under NI 43-101, has reviewed and approved the
contents of this news release.

ABOUT CAPSTONE
Capstone is a Canadian based mining company currently operating the 100% owned Cozamin copper-silver-lead-zinc mine located in Zacatecas State, Mexico. Capstone has approximately 81.4 million shares outstanding and is well financed with no bank debt. More information is available online at: www.capstonemining.com.

This press release contains "forward-looking information" that is
based on Capstone's current expectations, estimates, forecasts and
projections. Forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause
Capstone's actual results, level of activity, performance or
achievements to be materially different from those expressed or
implied by such forward-looking information. Such factors include,
but are not limited to: projected sales or production rates;
uncertainties related to drilling results; the ability to raise
sufficient capital to fund exploration; changes in economic
conditions or financial markets; changes in prices for costs;
litigation, legislative, environmental and other judicial,
regulatory, political and competitive developments; technological or
operational difficulties or inability to obtain permits encountered
in connection with exploration activities; and labor relations
matters.

This list is not exhaustive of the factors that may affect our
forward-looking information. These and other factors should be
considered carefully and readers should not place undue reliance on
such forward-looking information. Capstone disclaims any intention or
obligation to update or revise forward-looking information, whether
as a result of new information, future events or otherwise.

Contacts:
Capstone Mining Corp.
Chris Tomanik
(604) 684-8894
Email: ctomanik@capstonemining.com

Capstone Mining Corp.
Mark Patchett
(604) 684-8894
(604) 688-2180 (FAX)
Email: mpatchett@capstonemining.com
Website: www@capstonemining.com