Cozamin Mine Site Visit · • Located in the mineral-rich state of Zacatecas, Mexico, 3.6 km north - northwest of Zacatecas City • Elevation of 2,500 meters • Zacatecas City

Cozamin Mine Site VisitOctober 1, 2019

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”) available under 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. NI 43-101 Technical Report on the Cozamin Mine, Zacatecas, Mexico, Dated January 24, 2019, Effective date October 24, 2018. This presentation was prepared under the supervision of Brad Mercer, P. Geol., Senior Vice President Operations and Explorations, Capstone Mining Corp. and Tucker Jensen, P.Eng., Senior Mining Engineer, Capstone Mining Corp.

Alternative Performance Measures“1 cash cost”, “cash cost”, “adjusted EBITDA”, “operating cash flow before changes in working capital” and “net debt” 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 Reporting webpage or on SEDAR.

CurrencyAll amounts are in US$ unless otherwise specified.

Cautionary Notes

CAPSTONE MINING (TSX:CS) • 2

Cautionary Note on Forward Looking Information This presentation, and the documents incorporated by reference herein, 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 Capstone Mining Corp. (“Capstone” or the “Company”) does not intend, and does not assume any obligation, toupdate 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. 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 estimations for potential quantities and grade of inferred resources and exploration targets, environmental risks, unanticipated reclamation expenses and title disputes. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “approximately”, “guidance”, “scheduled”, “target”, “estimates”, “forecasts”, “plans”, “extends”, “convert”, “potential”, “intends”, “anticipates”, “believes” or variations of such words and phrases, or statements that certain actions, events or results “may”, “could”, “should”, “would”, “will”, “might” or “will be taken”, “occur” or “be achieved” or the negative of these terms or comparable terminology. 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, the inherentuncertainty of mineral exploration and estimations of exploration targets, 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, foreign currency exchange rate fluctuations, 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, licences and permits from governmental authorities, impact of climatic conditions on our operations, aboriginal title claims and rights toconsultation and accommodation, land reclamation and mine closure obligations, uncertainties and risks related to the potential development of the Cozamin 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.

COZAMIN MINE

Management Team


Abel Gonzales VargasGeneral Manager

Itati HernandezAssistant to theGeneral Manager

Jorge CachuMine Manager

Hugo LopezHSE Manager Rafael Regino

Mill Manager

Jesus EspinoAdministrativeManager

Saul RiosvelascoHR Manager

Tucker JensenSenior TechnicalAdvisor

MINE TOUR• San Rafael Zinc Orebody

• San Jose Expansion Zone

MILL TOUR• Crushing and Grinding Circuits

• Flotation Circuits• Concentrate Handling

TSF TOUR• Overview

• Mine Life Extension Options

What You Will See Today


COZAMIN MINE VISIT

Cozamin still has exploration upside near the current Resource and

infrastructure

First quartile C1 cost mine with costs going down with the expansion

Another low-risk large resource conversion by Q4 2020

Throughput expansion project on track for completion

by Dec 2020

What You Should Take Away


• Located in the mineral-rich state of Zacatecas, Mexico, 3.6 km north-northwest of Zacatecas City

• Elevation of 2,500 meters

• Zacatecas City is served by major roads, rail and air facilities, as well as a large local population with an economy based on mining, agriculture and tourism

• Port facilities are located in Manzanillo, ~620 km southeast and accessed by truck convoy

Location

COZAMIN MINE


• Copper-focused underground operation

• High grade polymetallic orebody with zinc, silver and lead by-products

• Narrow-vein longhole open stoping

• Copper production: Current 33 MlbsExpanding to 50-55 Mlbs

• Silver production: Current 1 MozExpanding to 1.4-1.5 Moz

Cozamin At A Glance

LOW COST OPERATION



LINK TO VRIFY TO VIEW 360 TOUR

Bird’s Eye View

https://www.vrify.com/explore/projects/14/sites/2093

UNDERGROUND

Cozamin Mine


San Rafael

One-way Loop Ramp

Calicanto Ramp San Jose Ramp

FWZ Ramp Guadalupana RampFWZ W Ramp

San Roberto Shaft

Don Robbins Project

Guadalupana Ramp

San Ernesto Ramp

~1.1

km

Reserves Growth Potential Tour Stops

Sustainable Production• Steady hoist throughput• Contractor trucking can be

scaled• No long-term stockpiling• Underutilized millOpportunities to Unlock• Improve mine-constrained

production• Improved traffic flow will

improve safety• Add mine plan flexibility

Cozamin Mine Production Metrics

TONNES MINED AND MILLED


0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 H1

Ore hoisted (tonnes) Ore hauled up ramp (tonnes) Forecast (tonnes) Mill Feed (dmt)

COZAMIN MINE

• Mining Method: Longitudinal Longhole Open Stoping

• Backfill: 74%+ void filled, 100% loose gob fill

• Drilling: 3x DL3XX Sandvik Solo drills, uphole

• Mucking: 8x Sandvik LH410, 6x contractor scoops

• Trucking: 100% contractor fleet

• Hoisting: 1,800 tpd

• Ventilation System: negative pressure, surface extraction

• Main Vent Fans: 4 (3 surface extractors, 1 UG extractor)

• Total Exhausted Volume: 1.27M CFM

• Working Temperature Range: 20-33°C

General Mine Design


• 10 Scoops – Sandvik LH410

• 3 Jumbo Drills – Sandvik Axera 5 / DD311

• 4 Bolters – Sandvik DS310/311

• 4 Longhole drills – Sandvik DL310/311

• 2 Haul trucks – Sandvik TH430

• 1 Scaler – EPAUS 853• 1 Grader – Volvo D7E• 3 Passenger busses

• 6 Utility trucks

Mining Fleet

CAPSTONE OWNED EQUIPMENT


HAULAGE

• Contractor Fleet*

• Fleet Size: ~24x 14 m³ and 10x 7 m³

• Mine Access:• Guadulapana Ramp: Large and Small Trucks• San Ernesto Ramp: Small Trucks

• 96” x 48” Double Drum IR 1039-B• Capacity: 1,800 tpd

• Shaft Depth: 456 m• Skip Payload: Two 5 t bottom dump skids• Crusher: 30” x 42” Pioneer Jaw

HOISTING

Haulage and Hoisting

*Capstone owns two TH430 underground trucks primarily used for backfilling activities CAPSTONE MINING (TSX:CS) • 13

Cozamin Crushing and Grinding Circuits

MILL NAMEPLATE CAPACITY 3,780 tpd


Surface Stockpile: 10k tonnesPrimary Crusher: 0.5m x 0.9m Jaw, 280tphCrushed Ore Bin Capacity: 2,400t

Main Mills: 2x 1500HP 3.65m x 4.27m Ball MillsSecondary Mill: 1x 2.8m x 1.6m Ball Mill (not in use)Grinding Size: P80 - 210 microns

Flotation Circuits

COZAMIN MINE


CURRENT NI43-101 MINERAL RESERVE (2018 AIF)

Cozamin Mine

Mineral Reserve Increased 85% 2017 Year-End vs. 2018 Year-End

Reserves Summary TotalTonnes Cu Grade Ag Grade Zn Grade Pb Grade Cu Metal Ag Metal Zn Metal Pb Metal

(kt) (%) (g/t) (%) (%) (kt) (koz) (kt) (kt)Proven 0 0.00 0 0.00 0.00 0 0 0 0

Probable 6,050 1.58 43 0.72 0.14 96 8,293 43 8TOTAL 6,050 1.58 43 0.72 0.14 96 8,293 43 8

Classification

Date Oct 2019NSR cut-off ($/t) 50.00Cu price ($/lb) 2.75Ag price ($/oz) 16.00Zn price ($/lb) 1.10Pb price ($/lb) 0.90Au price ($/oz) n/aCu recovery (%) 96Ag recovery (%) 81Zn recovery (%) 44Pb recovery (%) 0.0Au recovery (%) 0.0

Reserve Assumptions

NI43-101 RESERVE NOTES:1. Tucker Jensen, P.Eng., Senior Mining Engineer at Capstone Mining Corp., is the Qualified Person for this Cozamin Mineral Reserve update. Disclosure of the Cozamin Mine Mineral Reserves as of October 24, 2018 was completed using fully diluted mineable stope shapes generated by the Maptek Vulcan Mine Stope Optimizer software and estimated using the 2016 MNV resource block model created by J. Vincent, P.Geo., formerly of Capstone Mining Corp and the 2018 MNFWZ resource block model created by Garth Kirkham, P.Geo., FGC. 2. Mineral Reserves are reported at a US$50/t net smelter return ("NSR") cut-off using the NSR275 formula: ($50.707*%Cu + 0.366*Ag ppm + 7.276*Zn%)*(1-NSRRoyalty%) based on metal price assumptions (in US$) of Cu = $2.75/lb, Ag = $16.00/oz, Zn = $1.10/lb and metal recoveries of 96.5% Cu, 81% Ag, 44% Zn. Note that zero value was attributed to Pb due to low concentrations. Tonnage and grade estimates include dilution and recovery allowances. The NSR royalty rate applied varies between 1% and 3% depending on the mining concession. All metals are reported as contained.


CURRENT NI43-101 MINERAL RESOURCE (2018 AIF)

Cozamin Mine

Resources Summary - Total (Copper + Zinc Zones)Tonnes Cu Grade Ag Grade Zn Grade Pb Grade Cu Metal Ag Metal Zn Metal Pb Metal

(kt) (%) (g/t) (%) (%) (kt) (koz) (kt) (kt)Measured 407 1.24 53 1.23 0.40 5 698 5 2Indicated 16,709 1.50 44 1.25 0.27 250 23,813 208 46

Measured + Indicated 17,116 1.49 45 1.25 0.28 255 24,511 213 47

Inferred 16,922 1.11 44 1.64 0.29 188 23,902 278 49

Classification

Model Date Oct 2019NSR cut-off ($/t) 50.00Cu price ($/lb) 3.50Ag price ($/oz) 18.00Zn price ($/lb) 1.20Pb price ($/lb) 1.00Cu recovery (%) 95Ag recovery (%) 78Zn recovery (%) 58Pb recovery (%) 40

Resource Assumptions

NI43-101 RESOURCE NOTES:1. Garth Kirkham, P.Geo., FGC, is the independent Qualified Person responsible for the disclosure of Cozamin Mineral Resources. Mineral resources are reported at a cut-off of NSR US$50 using the NSR350 formula: Cu*65.024 + Ag*0.438 + Zn*10.755 + Pb*6.981 based on metal price assumptions (in US$) of Cu = $3.50/lb, Ag = $18.00/oz, Zn = $1.20/lb, Pb = $1.00/lb and metal recoveries of 95% Cu, 78% Ag, 58% Zn, 40% Pb. All contained metals are reported at 100%. Totals may not sum exactly due to rounding.2. The cut-off date for mining activities and drillhole sample data is October 24, 2018.3. Mineral resources are not mineral reserves and do not have demonstrated economic viability.4. Mineral resources are reported inclusive of the mineral reserves.


1.84%1.95%

1.86%1.74%

1.56% 1.51%

1.91%

1.75%

1.50%

0.00%

1.00%

2.00%

3.00%

0

200

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1600

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Dilu

ted

Cu H

eadg

rade

, %

Tota

l Ton

nes M

illed

, kt

Actual Production CAT 1 Plan Production Forecast Actual Cu Grade

• Includes Proven and Probable Reserves

• Includes a production increase in 2021 due to the completion of the one-way ramp debottlenecking project (on track for completion by Dec 2020)

• Copper grades to improve in 2020 as higher grade areas are mined

• After 2020, copper grades expected to stabilize as zinc zones are depleted

Mine Plan (Based on P&P Reserves)

COZAMIN MINE


San Roberto orebody largely depleted,

mining from MNFWZ only

Addition of the San Rafael orebody

Est. grade range

“MHS Ramp” complete (Debottlenecking)

Forecast subject to change with an updated mine plan, to be published by Q4 2020

2019/20 Infill Drilling Campaign – Organic GrowthGOAL: TO EXTEND MINE LIFE BY AN ADDITIONAL 8 TO 10 YEARS All estimates of potential quantity and grades are conceptual in nature. Insufficient exploration works has been done to define a mineral resource. It is uncertain if a mineral resource estimate will be delineated.

Inferred Resources

Indicated Resources

Not in Resource EstimateOpen

Infill Surface 2020

Infill Surface and UG 2019

Infill UG 2020

U4903.50% CuTW 9.10m

U4986.02% CuTW 10.1m

S3843.56% CuTW 4.5m

U499

S3822.29% CuTW 3.9m

S3754.88% CuTW 2.2m S381

7.27% CuTW 5.1m

S4014.09% CuTW 4.5mS376

5.59% CuTW 3.7m

S3435.43% CuTW 14.7m

U4867.38% CuTW 4.0m

S3571.19% CuTW 5.2m

S3725.88% CuTW 18.7m

S3552.34% CuTW 21.3m

Resources Summary - Total (Copper + Zinc Zones)Tonnes Cu Grade Ag Grade Zn Grade Pb Grade

(kt) (%) (g/t) (%) (%)Measured 407 1.24 53 1.23 0.40Indicated 16,709 1.50 44 1.25 0.27

Measured + Indicated 17,116 1.49 45 1.25 0.28

Inferred 16,922 1.11 44 1.64 0.29

Classification

COZAMIN MINE

Future Growth Potential


Reserves Growth Potential Portree Block

Copper Output Increase - Debottlenecking Mine Production


• Cozamin production is constrained by its underground haulage network

• The large fleet of small contractor trucks result in significant traffic

• ~5km of ramp will be mined by Dec 2020

• Benefits:- Increase mine production to +3,780 tpd- Shift bottleneck to the mill- Reduce vehicle-to-vehicle risk; increasing safety- Improve ventilation conditions

• Cost:- Expansionary Project Capital: $4.23M- Sustaining Production (with or without

one-way ramp loop development): $5.54M- Total: $9.77M

0

50

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250

300

350

400

Met

ers

/ mon

th

Meters/month development

CONCEPT PLAN ACTUAL FORECAST

ONE-WAY RAMP HAULAGE LOOP ON TRACK FOR DEC 2020Mala Noche Vein(Old Cozamin)

San Rafael

4% AHEAD OF PLAN

One-way Haulage Loop Design


2 kmMala Noche Footwall Zone

Stope Reserves (Green)

Initial Infill Project Stopes (Blue)

Current MHS Ramp Progress

( +4% to plan)

Portal

San Rafael

Downhill Empty HaulUphill Loaded HaulPortree Block

San Rafael

Robbins Collar

One-way Ramp LoopDevelopment in 2019

Robbins Casa club

San Rafael Ramp -COMPLETED

Robbins phase 1= 470 meters

Calicanto Ramp

Robbins phase 2 = 324 meters

Nov 2019

Oct 2019Sep 2019

Aug 2019Jul 2019

Jun 2019

Safety Pillar

Installation on SurfaceON TARGET FOR COMPLETION BY SPRING 2020

Ventilation Raise Project: Fresh Air to New Workings


Cozamin: Future State

2019 Guidance• Copper production:

30-35 million lbs• C1 cash cost:

$0.90-$1.05• Capital expenditure:

$33.0 million• Exploration expenditure:

$6.0 million

2020: Investment Year• One-way ramp loop

completed• Large-scale ventilation

projects completed• Infill drilling program to

delineate current resources completed

• Mining of San Rafael Zinc zones depleted

Future State: 2021+• Copper head grade increase;

no longer diluted by zinc ore• Production expected to

increase to 50-55 Mlbscopper and 1.4-1.5 Moz silver per year

• Sustaining capital decreases accordingly towards end of mine life


CURRENT: PRE-EXPANSION FUTURE: POST-EXPANSION

Cozamin Becomes An Even Stronger Copper-Silver Mine


33 MlbsCopper

1 MozSilver

50-55 Mlbs

Copper

1.4-1.5Moz

Silver

OBJECTIVE• Safety is paramount at

Cozamin as it ensures the welfare of our people, based on the underlying principle that a safe operation is a successful operation

• Through safety and health programs we promote the participation of our collaborators for the common goal of reaching zero accidents

Cozamin Safety 2019


ENSURE THAT EVERYONE RETURNS HOME SAFE AND SOUND EVERY DAY

INDICATORS

-

0.10

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0.80

Jan-

17

Mar

-17

May

-17

Jul-1

7

Sep-

17

Nov

-17

Jan-

18

Mar

-18

May

-18

Jul-1

8

Sep-

18

Nov

-18

Jan-

19

Mar

-19

May

-19

Jul-1

9

Rolling 12 month LTIFRRolling 12 month LTIFR TargetRolling 12 month TRIFR

Cozamin is committed to maintaining sound environmental practices in all its activities and to continuously improve the efficiency in the use of resources, processes and materials

Environmental


• Family Responsible Company (Federal Labor Secretary)

• Great Place to Work. (Ranking No. 16)

• Socially Responsible Company Distinctive (Mexican Philanthropy Center CEMEFI)

• Inclusive Organization (Federal Labor Secretary)

• Distinction under “Mexico Without Child Labour” campaign(Mexican Labour and Welfare Secretariat)

• Accreditation as worker Competency Evaluation Centre (Mexican Government CONOCER)

• Best Practices (Mexican Philanthropy Center CEMEFI)

• Clean Industry Certified (PROFEPA)

Awards and Accreditations


COZAMIN MINE VISIT

Cozamin still has exploration upside near the current Resource and

infrastructure

First quartile C1 cost mine with costs going down with the expansion

Another low-risk large resource conversion by Q4 2020

Throughput expansion project on track for completion by

Dec 2020

Key Takeaways


Pinto Valley Mine Site VisitOctober 2, 2019

Cautionary Note on Forward Looking InformationThis presentation, and the documents incorporated by reference herein, 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 Capstone Mining Corp. (“Capstone” or 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. 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, environmental risks, unanticipated reclamation expenses and title disputes. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “guidance”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes” or variations of such words and phrases, or statements that certain actions, events or results “may”, “could”, “would”, "should" "potential" "possible" ,“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 such as “expects”, “approximately”, “could”, “expects”, “target”, “targeting”, “guidance”, “potential”"possible" , “extended”, “convert”, “will”, “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, foreign currency exchange rate fluctuations, 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, licences and permits from governmental authorities, impact of climatic conditions on our operations, aboriginal title claims and rights to consultation and accommodation, land reclamation and mine closure obligations, 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.

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”) available under 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.

Alternative Performance Measures“C1 cash cost”, “cash cost”, “adjusted EBITDA”, “operating cash flow before changes in working capital” and “net debt” 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 Reporting webpage or on SEDAR.


Cautionary Notes


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

PINTO VALLEY MINE

Management Team


Mike WickershamGeneral Manager

Sam ClarkSr. Project Engineer

Rodrigo HuertaMine Manager

Colleen RocheHSE & Operational Support Manager

Don Cordsen Site Controller

Rick MorrellProcessing Operations Manager

Jennifer BrownHR Manager

Tim RalstonLand, Permitting and Regulatory Affairs Mgr

Bob DickeyProcessing Maintenance Manager

Danna WoithExecutive Assistant

MINE & TRUCK SHOP TOUR• PV2 & PV3 sequence

development

• Autonomous drilling

• Asset Health Care practices

MILL TOUR• Crushing and Grinding Circuits

• Flotation Circuits• Concentrate Handling

TSF & SXEW TOUR• Closed tailings sites

• TSF4 development• SXEW site & low-grade heap

leach

What You Will See Today


PINTO VALLEY MINE VISIT

Identified several value enhancing projects

Pathway to stable operations and predictability

Reined in costs

What You Should Take Away


PINTO VALLEY MINE

Regional Overview


MORE THAN FOUR BILLION POUNDS OF COPPER PRODUCED SINCE 1975

Pinto Valley Mine Historical Context


$0.00

$1.00

$2.00

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0 M

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1975

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Aver

age

Cu P

rice

Cu P

rodu

ctio

n (lb

s)

Cathode Cu (lbs) Concentrate Cu (lbs) Average Cu Price

PV acquired by Newmont subsidiary and placed on care and maintenance

BHP acquired PV

Production commenced in 1973 by then current owner

Cities Service (formerly Tennessee Corporation)

Capstone acquires PV

Mining Fleet • 19 @ 200-ton CAT 789 haul trucks• 2 hydraulic shovels and 2 loaders• 4 track dozers, 2 wheel dozers• 3 rotary blast hole drills, 1 pre-split drill• 3 water trucks, 3 motor graders, 1 fuel truck, 1 tow haul

Concentrator Production Facilities

• 1 gyratory primary, 3 secondary, and 6 tertiary crushers• 6 ball mills• Copper and molybdenum flotation circuits• Copper thickeners• Filter press• Concentrate storage and loadout facility

Tailings Management • 3 tailings thickeners• 2 active and 3 inactive/closed impoundments• Primary TSF deposition utilizes crane-mounted cyclone

clusters

SXEW Facilities • SXEW production from low grade ore• Evaluating options to extend leach operations and

improve leach recovery

Core Operating Assets

CAPSTONE OWNED EQUIPMENT


Employees and Contractors

• 580 full-time employees• 50 full-time equivalent contactors• Second largest employer in Globe-Miami area• One of the largest employers in Gila County

Production • 140,000 tonnes total material ex-pit/day• 55,000 tonnes ore processed/day• 326,000 lbs/day (120 Mlbs/yr) in concentrate & cathode

Reserves, Resources and Land Area

• 408M tonnes proven & probable reserves grading 0.31% Cu• 1.3B tonnes measured & indicated resources grading 0.30% Cu• 6,435 acres of private land

Impact to Arizona Economy

• $221M – 2019 operating budget, TCRC budget of $46M• $35M – 2019 capital budget• $11M – payroll taxes paid in 2018• $5.2M – state and local taxes and fees paid in 2018

Mine Life • 2027 on private land• 2039 with 520 acre extension onto Forest Service Land, less than half

of which will constitute “new disturbance”

Economic Footprint

TOTAL ECONOMIC IMPACT IN AZ >$270 MILLION/YR


PINTO VALLEY

2020 Mine Plan


Phase 2B(Jewel Hill)

Phase 2C(Castle Dome)

Phase 2A(Foothills)

PINTO VALLEY

2021 Mine Plan




Phase 3A

2020 Mining

PINTO VALLEY

2022 Mine Plan




Phase 3A

2020-2021 Mining

PINTO VALLEY

2023 Mine Plan




Phase 3A

2020-2022 Mining

PINTO VALLEY

2024 Mine Plan




Phase 3A

2020-2023 Mining

PV’s LEADERSHIP ARE WORKING TO CONTINUALLY ASK THREE QUESTIONS:

• Are we delivering outstanding Leadership?

• Are we delivering outstanding Asset Health Care (Maintenance)?

• Are we using Simplicity to make it easy for good people to do good work?

IN A WAY THAT SUPPORTS OUR CAPSTONE VALUES:• Deliver Results

• Always Accountable

• Work Responsibly• Execute with Excellence

Strategy


• Simplify workplace policies, procedures and expectations

• Continue Leadership in Action and Values in Action training for all new employees

• HSE Team to build grassroots peer-to-peer influence

• Expand the use of safety leading indicators

• Shift focus to Wellness

• Keep the EIS process focused and resourced to prevent delays

• Communities engagement plan

• Leadership training

• World Class Safety program

WORK RESPONSIBLY, EXECUTE WITH EXCELLENCE

People, Safety and Environment


• Mine fleet productivity

• CapEx management process and renewing 5-yrCapEx plan

• Asset health care (maintenance) processes

• Integrated Planning

• Water management plan

• Transition to SCIP power supply contract

• Implement plan to evaluate SXEW leach reagents/catalyst

• Leverage fleet and facilities plan• Leverage contractor management and CBA

• Leverage Enterprise Risk Management• Implement low-cost/high-impact Central Control

Room• Leverage Shift Supt roles

• Focus resources on biggest opportunities to improve and disrupt unit cost performance

• Build Flot Plant Optimization and Moly Plant Optimization plans

Unit Costs

ALWAYS ACCOUNTABLE, DELIVER RESULTS


Responding to risks/

opportunities to meet or

beat budget

Measuring MTD and

MEE

Track performance DAILY across

the value chain

Produce integrated

plans

WEEKLY/MONTHLY/QUARTERLY DRUMBEAT FOR VALUE CHAIN OPTIMIZATION

Integrated Planning Process


Revised integrated plans as necessary

INCREASED NEAR MISS INCIDENTS IS DUE TO BETTER REPORTING & AWARENESSHigh Potential Incidents

• There were 4 High Potential Incidents reported in 3Q19 YTD, compared to 8 HPI in 3Q18 YTD

Near Miss Incidents

• There are 40 YTD versus 17 YTD in same period 2018

HSE Performance in 2019


Where We’ve Been

OUR SAFETY JOURNEY

(TSX:CS) • 49

• TRIFR in 2016 was 4.52 vs. 2019 of 1.48

• Mining National Average DART 1.27

• How do we move forward to build a stronger safety culture?• Values in Action - Who WE are• Developing trust as leaders• Providing stability • Changing mindset on safety and accountability

• Case Management: HEALTH• Injury Prevention Specialist hired• Physical demands analyses for each job function• Demonstrating care for employees• Always Accountable means Fit for Duty

VISIONTo be the one-stop shop at PV for all non-copper-producing operations

PURPOSEDrive for efficiency, optimization and simplified processes that apply site-wide

GOALS• CAPEX – transparency and rigor to capital decisions• Rental equipment – lower rental costs

• Fleet – track the utilization of the most cost-effective vehicles• Facilities Maintenance – ensure infrastructure is sustained to end

of mine life• IT – leverage technology to work smarter, not harder

Operations Support Performance


FOCUSED ON LEVERAGING INNOVATION TO LOWER COST & INCREASE PRODUCTIVITY

Mine Innovation

• 789F Field Follow• Investigating CAT Command and Fatigue Monitoring• Running “Autonomously” on MineStar Dispatch

System

Drill Automation Project

Drone Surveying with Photo Overlays

Drills Providing Instantaneous Hardness Data for Blast Design


IMPROVED TACTICS ON PLANNED DOWN TIME EVENTS & EXTEND COMPONENT LIFE

Mine Asset Health Care (Maintenance)

Reliability engineering focused on drill hydraulic downtime events, improving them from being the biggest cause of unplanned downtime to the sixth

• Better online process performance monitoring for faster decision making

• Reduced process variability and improved plant recovery

• Improved metallurgical accounting practices and accuracy

• Diagnostic tests for identifying performance bottlenecks and opportunities

Processing Metallurgical Services

IMPROVED STABILITY & PERFORMANCE


0.000

0.010

0.020

0.030

0.040

0.050

0.060

0.070

0.080

1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65

Cu %

Rougher Circuit Tails Cu %

Mill Shift Assay Cu % Online Analyzer Cu %

New calibration model implemented

88.0 86.9 87.485.7

2.93.3 3.0

2.8

2.8 3.7 3.44.0

76

80

84

88

92

96

100

April-19 May-19 June-19 July-19

Cu R

ecov

ery

%

Add. Flot. Cap + Finer Grind Cu Recovery %Add. Flot. Cap Cu Recovery %Avg Plant Cu Recovery %

75

80

85

90

95

100

Cu R

ecov

ery

%

Indicated Cu Recovery % Reconciled Cu Recovery %

• Advanced Process Control (Expert System) fully functional on grinding circuit, is being commissioned for tailings thickener, and being developed for crushing circuit. We will have all three areas in APC control early 2020.

• Control and Response plans using decision tree implemented in the Fine Crushing Plant to standardize and optimize operations with all four crews.

• Housekeeping plan developed and areas assigned with audit and score sheet.

• Integrated Planning process in place which incorporates mine plan, process maintenance plans and process operations plans.

Processing Operations

SIMPLIFY, FOCUS ON THE BASICS


LEACH TRIAL, NEAR-TERM CATALYST

• Pinto Valley is a perfect test site for leach catalyst due to high chalcopyrite mineralization (~95%) with minimal clay plus SXEW under-capacity

• SXEW ~4 Mlbs/year recent production rate on a 25 Mlbs/year design capacity

• Benchscale testing results positive, pilot results available by year end 2019

• 454 M tonnes of ore placed under leach since 1981, achieving ~30% copper recovery

• Based on preliminary lab testing, possible to improve recovery by ~300 Mlbs additional copper from old leached material

• Additional ~200 Mlbs of contained Cu to be placed by 2024, recovery of 60% potential

THE OPPORTUNITY

Hydromet: New Technology Upside, Potential Breakthrough for PV


0

500

1,000

1,500

2,000

0%

25%

50%

75%

100%

1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 2019

Cum

ulat

ive

lbs(

Mill

ions

)

Cum

ulat

ive

Reco

very

Cu Recovery vs Cu Pounds

Cu Placed Cu Produced Recovery

TAILINGS

• Corporate tailings working group

• New piezometers

• Inclinometer casing

• Geotechnical study

• Automated data acquisition

• New wells• Increased storage capacity• Water acquisition & water efficiency

WATER

Tailings and Water Management


• New EIS process to reauthorize previous land uses

• Combine authorizations under a single Plan of Operations

• Authorize 5 heritage encroachments• Expand pit to accommodate PV3 Pushbacks• Develop TSF3 to APP permitted 3,860ft elevation• Develop TSF4 up Eastwater Canyon to 4,250ft

elevation

PV3 Permitting Context


PV3 Expansion Permitting Timelines


Q4 2018

Aquifer Protection Permit Amendment (ADEQ)Main Dump Expansion Submitted to

ADEQ

Q1 2018

Permit Issued

Q4 2018

Public Comment

Jurisdictional Determination on Waters of the US (US Army Corps of Engineers)Determines if future activities will impact waters subject to 404 permitting

Favorable 404JD Received

SupplementFiled

Supplement Approved

Q1 2017 Q3 2017Q2 2016

Aquifer Protection Permit Amendment (ADEQ) TSF4 Elevation Rise Submitted to

ADEQ

Q1 2017 Q1 2018 Q2 2018

Permit Issued

Public Comment

PV3 Expansion Permitting Timelines


Q1 2019 Q2 2020

Aquifer Protection Permit Amendment (ADEQ)West Dump, Repurpose Gold Gulch Submitted to

ADEQ

Permit Issuance

AnticipatedPublic

Comment

Q1 2020

Consolidated Plan of Operations (USFS)Extend pit and tailings facilities onto National Forest land

Q2 2016 Q1 2017 Q2 2017 Q3 2017 Q1 2020 Q3 2020

Plan of Ops Submitted

NEPA Kick off

PublicScoping

Baseline Studies

Record of

DecisionFinalEIS

Resource Reports

Q4 2017 Q2 2019

DraftEIS

Public Meetings

Q4 2019 Q3 2020

Permit Issuance

Anticipated

Q4 2019

Draft Alts Report

Q4 2018

Dam Permit Modification (ADWR)West Dump, Repurpose Gold Gulch

Q3 2019 ~Q2 2020

Submit to ADWR

Permit Issuance

Anticipated

Q1 2019

Preliminary Design

SubmittedPre-Design

Meeting

Q3 2018

Pre-Application Meeting

Q3 2018

INITIAL PATHWAY PROJECTS A FURTHER ~$9M REDUCTION FROM THE 2019 FORECAST

Pinto Valley – Pathway to Cost Reduction


POSITIONING PINTO VALLEY AS ARIZONA’S EMPLOYER OF CHOICE

HR Performance

2017

201912%

18%

14%15%

17% 18%

22%

14%

15% 16%

21%

25% 25% 24% 24% 24%23% 23%

0%

5%

10%

15%

20%

25%

30%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Annualized Turnover

2019 2018

• Worked under an expired CBA• High number of grievances filed

• Leadership changes• New CBA in May 2018• High turnover rate• 81.5% decrease in

grievances filed

2018

• Establish HR Foundation• Attract the right talent • Retain our talent

38

7

10

5

10

15

20

25

30

35

40

Total Grievances Filed

2017 2018 2019

BEGAN JUNE 8th, 125K ACRES, 5th LARGEST FIRE IN ARIZONA HISTORY

Woodbury Fire

PINTO VALLEY MINE VISIT

Identified several value enhancing projects

Pathway to stable operations and predictability

Reined in costs

Key Takeaways


Corporate and Santo Domingo Update October 2, 2019

Cautionary Note on Forward Looking Information This presentation, and the documents incorporated by reference herein, 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 Capstone Mining Corp. (“Capstone” or 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. 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, environmental risks, unanticipated reclamation expenses and title disputes. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “guidance”, "future state" “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 such as “expects”, “approximately”, “could”, “expects”, “expected”, “target”, “targeting”, “guidance”, “potential”, “extended”, “convert”, “will”, “plan”, “possibilities”, “future state”, “outperform” 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, foreign currency exchange rate fluctuations, 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, licences and permits from governmental authorities, impact of climatic conditions on our operations, aboriginal title claims and rights to consultation and accommodation, land reclamation and mine closure obligations, 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.

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”) available under 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.

Alternative Performance Measures“C1 cash cost”, “cash cost”, “adjusted EBITDA”, “operating cash flow before changes in working capital” and “net debt” 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 Reporting webpage or on SEDAR.


Cautionary Notes



To build a multi-asset portfolio to generate strong cash flows in all price environments

Outperform peers through low-risk brownfield expansions and greenfield optionality

To surface stakeholder value through exploration and operational excellence

Positioning to be expansion-ready in time for higher copper prices

New mine management team achieving steady-state operations

Annualized cost savings initiative on track, targeting $15-20M, achieved $10Mto date

Low cost mine generating free cash flow at any copper price

On track to deliver 50-55 Mlbs copper and 1.4-1.5 Moz silver post-expansion

In-fill drilling targeting resource to reserve conversion to extend mine life up to 2030

High-quality shovel-ready project in the Americas; all construction permits in hand

Updating NI 43-101 with lower capital requirements and better economics

Strategic process in place, to ensure project stands alone within portfolio

Why Capstone Mining?


SANTO DOMINGOPINTO VALLEY COZAMINSTRATEGY

Pinto Valley Cozamin Total YTD 2019 ACTUALS3

(to Jun 30/19)Production and Cost

Copper production (million lbs.) 115 – 125 30 – 35 145 - 160 79.1

C1 Cash Cost2 (US$) $2.10 - $2.25 $0.90 - $1.05 $1.80 - $2.00 $1.67

CAPSTONE ON TRACK TO ACHIEVE ANNUAL GUIDANCE

1. Refer to the Company’s news release of January 10, 2019 for full details. 2. This is an Alternative Performance Measure; refer to the Company’s news release of January 10, 2019 for full details.3. From continuing operations; refer to the Company’s MD&A for the six months ended June 30, 2019 for full details.

2019 Production and Capital Expenditure Guidance1


Due to timing of shipments, Q3 sales will not match Q3 production; sales are expected to be higher in Q4

https://capstonemining.com/news/news-details/2019/Capstone-Mining-Achieves-2018-Production-Guidance-and-Provides-2019-Guidance/default.aspx

https://capstonemining.com/news/news-details/2019/Capstone-Mining-Achieves-2018-Production-Guidance-and-Provides-2019-Guidance/default.aspxhttps:/capstonemining.com/news/news-details/2019/Capstone-Mining-Achieves-2018-Production-Guidance-and-Provides-2019-Guidance/default.aspx


$15M - $20MPinto Valley

New collective bargaining agreement enabling contractor reduction and targeting lower pricing with respect to maintenance, liners, water, power and reagents

$5MMinto

Disposition of Minto care and maintenance costs

$4MG&A

Re-organization in late 2018

$1MInterest

Credit facility amendment

$25 TO $30 MILLION IN ANNUALIZED SAVINGS – DELIVERED ON $20M TO DATE

Company-wide Cost Reduction Program

Life of mine base savings realized:

$525M

TOTAL VALUE:savings realized over life of mine

21 years

Life of mine stretch savings realized:

$630M


Current State• Shovel-ready today• Ownership:

Capstone 70%, KORES 30%• Capital requirements1 $1.5B,

NPV (8%) $1.03B

Additional NAV Levers• Publish updated NI 43-101:

• Recovering battery-grade cobalt

• Infrastructure sharing• Improved gold recovery• Lower power costs

Future State• Ownership:

New partner(s) 50-100%, Capstone 0-50%

• Lower capital requirements, <$1.5B and improved IRR

STRATEGIC PROCESS IN PLACE – ISOLATING THE RIGHT COPPER/IRON ORE PARTNER

1. Refer to the Company’s news release of July 30, 2019 for full details.

Santo Domingo


Current State: PV3• Mine life to 2039; total

Reserve Estimate1 of 408 million tonnes grading at 0.31% copper

Untapped Potential• M&I Resource estimate1

(inclusive of Reserves) of over 1.33 billion tonnes grading 0.30% copper

Future State: PV4• Leading options are

75 ktpd to 95+ ktpd• Resource conversion to

extend mine life • Autonomous mining• OPEX/lbs. reduced

ASSESSING OPTIMAL EXPANSION SCENARIOS AT PINTO VALLEY

1. Refer to the Company’s Annual Information Form for the year ended December 31, 2018 for full details.

PV4 – Unlocking Over One Billion Possibilities


-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

YTD Q2 2019 PV4 PV4+

Tonn

es p

er d

ay

ASSESSING ECONOMICS AND TIMELINES

PV4 Expansion Decision: Key Criteria


Current water delivery infrastructure

75 ktpd 95+ ktpd

+44%Plan of operations

+26%New EIS

+44%Plan of operations

52 ktpd

Carlota(KGHM)

Pinto Valley

Miami (FCX)

Copper Cities (BHP)

Miami (BHP)

Old Dominion(BHP)

PINTO VALLEY IS THE ONLY OPERATING MINE IN THIS HISTORIC MINING DISTRICT

More Potential Beyond Our Boundaries

CAPSTONE MINING (TSX:CS) • 72Source: Bing maps and boundaries are approximated

AND THERE IS A LOT MORE TO COME!

Cozamin Has Delivered Best In Class Returns


Cumulative free cash flow of over $380M since acquiring Cozamin in 2006

Expansion investmentsAcquisition

$3.19Avg. Cu $/lb: $3.15 $2.34 $3.42 $3.84 $3.66 $3.30 $3.03 $2.35 $2.27 $2.86 $2.92 $2.80$3.05

Total invested between 2006-2008 = $52 million

NOTE: Tax cash flows estimated using current and deferred tax expense.

AutomationAutonomous drilling executed. Assessing autonomous trucks on new phase of the pit

Transform MaintenanceRethink the maintenance process and use digital technologies and AI to perform better, more effective maintenance

Integrated Operations CenterAssessing use of an off premise center for mine, mill and plant control and planning

Improved HaulageMove more ore more efficiently

Fleet Electrification Lower costs through electrification

Blast OptimizationOptimize stope blasting to achieve desired level of rock breakage

Fleet AutomationIntroduce as much automation as is feasible which impacts pit design and camp size and capital costs

Energy ManagementExplore lower carbon energy sources


KEY INNOVATION OPPORTUNITIES – FAST FOLLOWER APPROACH – DISRUPT

Innovation Strategy

PINTO VALLEY COZAMIN SANTO DOMINGO

To build a multi-asset portfolio to generate strong cash flows in all price environments

Outperform peers through low-risk brownfield expansions and greenfield optionality

To surface stakeholder value through exploration and operational excellence

Positioning to be expansion-ready in time for higher copper prices

New mine management team achieving steady-state operations

Annualized cost savings initiative on track, targeting $15-20M, achieved $10Mto date

Low cost mine generating free cash flow at any copper price

On track to deliver 50-55 Mlbs copper and 1.4-1.5 Moz silver post-expansion

In-fill drilling targeting resource to reserve conversion to extend mine life up to 2030

High-quality shovel-ready project in the Americas; all construction permits in hand

Updating NI 43-101 with lower capital requirements and better economics

Strategic process in place, to ensure project stands alone within portfolio

Key Takeaways


SANTO DOMINGOPINTO VALLEY COZAMINSTRATEGY

APPENDIX

AS AT DECEMBER 31, 2018

Mineral Resource Estimate(metric units) Mineral Resources at 0.17% TCu Cutoff

(Inclusive of Mineral Reserves) Contained Metal

Category Tonnes(million)

Cu(%)

Mo(%)

Copper Metal(Mt)

Molybdenum(Mt)

Measured (M) 571 0.33 0.006 1.88 0.034

Indicated (I) 759 0.27 0.005 2.07 0.039

Total M + I 1,330 0.30 0.005 3.95 0.0073

Inferred 146 0.24 0.005 0.34 0.008RESOURCE ESTIMATE NOTES: Claydon Craig, P.Eng., Superintendent of Mine Technical Services at Pinto Valley, is the Qualified Person responsible for the Pinto Valley Mineral Resources estimate. 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, 2018 above a 0.17% TCu 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%. See Capstone’s Annual Information Form for the year ended December 31, 2018 for further information.

Mineral Reserve EstimateMineral Reserve Contained Metal

Category Tonnes(million)

Cu(%)

Mo(%)

Copper Metal(Mt)

Molybdenum (Mt)

Proven 255 0.33 0.006 0.84 0.016

Probable 153 0.28 0.006 0.43 0.009

Proven + Probable 408 0.31 0.006 1.27 0.025RESERVE ESTIMATE NOTES: 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%. See Capstone’s Annual Information Form for the year ended December 31, 2018 for further information.

Pinto Valley Mineral Reserve and Resource Estimate

AS AT DECEMBER 31, 2018

Mineral Resource EstimateMineral Resources (Inclusive of Mineral Reserves) Contained Metal

Category Tonnes(kt)

Copper(%)

Silver (g/t)

Zn(%)

Pb(%)

Copper Metal(kt)

Silver Metal(koz)

Zinc Metal(kt)

Lead Metal(kt)

Measured (M) 407 1.24 53 1.23 0.40 5 698 5 2

Indicated (I) 16,709 1.50 44 1.25 0.27 250 23,813 208 46

Total M + I 17,116 1.49 45 1.25 0.28 255 24,506 213 47

Inferred 16,922 1.11 44 1.64 0.29 188 23,902 278 49RESOURCE ESTIMATE NOTES: The Cozamin Mineral Resource estimate was completed by Garth Kirkham, P.Geo., FGC, Kirkham Geosystems Ltd., and an independent Qualified Person as defined by NI 43-101. The NSR formula used is based on $3.50/lbCu, $18/oz Ag, $1.20/lb Zn, $1.00/lb Pb and metallurgical recoveries of 95% Cu, 78% Ag, 58% Zn, 40% Pb. The resulting NSR formula is Cu*65.024 + Ag*0.438 + Zn*10.755 + Pb*6.981. Mineral Resources are reported above $50/t NSR cut-off. Mineral Resources are presented inclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. Figures may not sum due to rounding. Contained metals are reported at 100%. See Capstone’s Annual Information Form for the year ended December 31, 2018 for further information.


Category Tonnes(kt)

Cu(%)

Ag(g/t)

Zn(%)

Pb(%)

Copper Metal(kt)

Silver MetalTroy (koz)

Zinc Metal(kt)

Lead Metal(kt)

Proven - - - - - - - - -

Probable 6,050 1.58 43 0.72 0.14 96 8,293 43 8

Proven + Probable 6,050 1.58 43 0.72 0.14 96 8,293 43 8RESERVE ESTIMATE NOTES: Tucker Jensen, P.Eng., Senior Mining Engineer at Capstone Mining Corp., is the Qualified Person for the Cozamin Mineral Reserve. Disclosure of the Cozamin Mine Mineral Reserves as of December 31, 2017 was completed using fully diluted mineable stope shapes generated by the Maptek Vulcan Mine Stope Optimizer software and estimated using the 2018 MNFW and MNV resource block models completed by Garth Kirkham, P.Geo., FGC, Kirkham Geosystems Ltd. The Reserves are based on a $50/t NSR cut-off. The NSR formula used for the Reserves was based $2.75/lb Cu, $16/lb Ag, $1.10/lb Zn, and metallurgical recoveries of 96.5% Cu, 81% Ag, 44% Zn. The resulting NSR275 formula is ($50.707*%Cu + 0.366*Ag ppm + 7.276*Zn%)*(1-NSRRoyalty%)Note that zero value is attributed to Pb due to low concentrations. Tonnage and grade estimates include dilution and recovery allowances. The NSR royalty rate applied varies between 1% and 3% depending on the mining concession. Contained metals are reported as 100%. Figures may not sum due to rounding. See Capstone’s Annual Information Form for the year ended December 31, 2018 for further information.

Cozamin Mineral Reserve and Resource Estimate

AS AT DECEMBER 31, 2018Mineral Resource Estimate

Mineral Resources (Inclusive of Mineral Reserves)

Category Tonnes(Mt)

CuEq(%)

Cu(%)

Au(g/t)

Fe(%)

Co(ppm)

Measured (M) 66 0.81 0.61 0.081 30.9 254

Indicated (I) 471 0.48 0.26 0.034 25.0 225

Total M + I 537 0.52 0.30 0.039 25.7 229

Inferred 48 0.41 0.19 0.025 23.6 197RESOURCE ESTIMATE NOTES: Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Mineral Resources are classified according to CIM (2014) guidelines. 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 October 31, 2018. Mineral Resources for the Santo Domingo Sur, Iris, Iris Norte, and Estrellita deposits are reported using a cut-off grade of 0.125% CuEq. CuEq grades are calculated using average long-term prices of $3.50/lb Cu, $1,300/oz Au, and $99/dmt Fe. 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. An assessment of Mineral Resources for the Santo Domingo Sur, Iris, Iris Norte and Estrellita deposits was performedusinga Lerchs–Grossman pit shell that has the following assumptions: pit slopes averaging 45°; mining cost of $1.90/t, processing cost of $7.27/t (including G&A cost); processing recovery of 89% copper and 79% gold; selling price of $3.50/lb copper, $1,300/oz gold and $99/dmt iron concentrate. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content. See Capstone’s Annual Information Form for the year ended December 31, 2018 for further information.


Category Tonnes(Mt)

Cu(%)

Au(g/t)

Fe(%)

Copper Metal(Mlbs)

Gold MetalTroy (koz)

Iron Concentrate (Mt)

Proven 65.4 0.61 0.08 30.9 398 169.9 8.2

Probable 326.9 0.24 0.03 27.6 768 336.8 66.9

Proven + Probable 392.3 0.30 0.04 28.2 1167 506.7 75.1RESERVE ESTIMATE NOTES: The Mineral Reserves estimate have an effective date of November 14, 2018 and were prepared by Mr. Carlos Guzman, CMC, and 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 $3.00/lb Cu, $1,290/oz Au and $100/dmt of Fe concentrate; recovery to concentrate assumptions of a maximum of 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 $80/dmt, $0.08/lb of Cu refining charges, $5.0/oz of Au refining charges, $33/wmt and $20/wmt for shipping Cu and Fe concentrates respectively; wasteminingcostof $1.75/t, mining cost of $1.75/t ore, and process and G+A costs of $7.53/t processed; average pit slope angles that range from 37.6° to 43.6°; a 2% royalty rate assumption, and an assumption of 100% mining recovery. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content. See Capstone’s Annual Information Form for the year ended December 31, 2018 for further information.

Santo Domingo Mineral Reserve and Resource Estimate

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