Capstone Reports Senior Management Change

VANCOUVER, Aug. 16, 2012 /CNW/ - Capstone Mining Corp. ("Capstone") (TSX: CS) today announced the appointment of Mr. Tony Giardini, CA, CPA, as Sr. Vice President and Chief Financial Officer of Capstone.  He replaces Mr. Richard Godfrey who will leave the company.

"Richard has made a significant contribution to the success of Capstone and its predecessor, Sherwood Copper where he was CFO from 2007.  He continued as Capstone's CFO following the merger of Capstone and Sherwood in 2008," said Darren Pylot, President and CEO of Capstone.  "Richard has been an integral part of the team that has positioned us with one of leading copper production growth profiles of the mid-size Canadian base metals companies.  We appreciate his contributions to bring us to this point in our development and wish him the best."

Mr. Giardini brings over 25 years of financial experience, with the last 16 years spent in senior financial roles in the mining industry. He has broad experience in corporate finance, including execution of debt and equity financing structures, strategic planning, corporate reporting and disclosure.  Most recently he was CFO of Ivanhoe Mines Ltd. where he provided financial leadership and worked closely with the Board of Directors and investment advisors to assess strategic alternatives.  Ivanhoe's $4 billion project finance process initiated and advanced during Tony's tenure is expected to be the largest Project Finance ever completed in the mining sector.

Prior to that he spent 10 years at Placer Dome Inc. in a number of finance roles of increasing responsibility, including Vice President and Treasurer from 2002 to 2006, where he oversaw debt and capital markets activites, managed banking relationships and led the development of strategic business plans.  Prior to joining Placer Dome, Tony started his career with KPMG, progressing through a number of roles in Canada and Europe from 1983 to 1995.

"I welcome Tony to the Capstone Team," said Darren Pylot.  "The combination of his strong financial expertise, familiarity with large capital projects, and executive leadership experience will expand the capability of our team as we more than triple our copper production to a projected 300 million pounds per year by 2016."

About Capstone Mining Corp.
Capstone Mining Corp. is a Canadian base metals mining company with two producing copper mines, the Cozamin copper-silver-zinc-lead mine located in Zacatecas State, Mexico and the Minto copper-gold-silver mine in Yukon, Canada. In addition, Capstone has two development projects, the large scale 70% owned Santo Domingo copper-iron-gold project in Chile in partnership with Korea Resources Corporation and the 100% owned Kutcho copper-zinc-gold-silver project in British Columbia, as well as exploration at properties in Australia, Canada, Chile and Mexico. Using its cash flow and strong balance sheet as a springboard, Capstone aims to grow organically through continued mineral resource and reserve expansions and through acquisitions in politically stable, mining-friendly regions. Additional information is available at www.capstonemining.com.

Cautionary Note Regarding Forward-Looking Information
This 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 Capstone does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Capstone to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

SOURCE Capstone Mining Corp.