Capstone Reports Final Drill Intercepts of Near Surface Copper-Gold at Minto Mine
Multiple, near-surface thick intercepts, including 1% Copper over 62 m
starting at 53m Down hole

December 10, 2008

VANCOUVER, BRITISH COLUMBIA - Capstone Mining Corp. (CS: TSX) today announced results for the final 28 drill holes from its 2008 exploration program at the high grade Minto copper-gold mine in the Yukon.

Highlights from this latest batch of results are tabulated below and include multiple, thick intercepts of near surface, good grade copper-gold mineralization at Ridgetop, included in which are significant sub-intervals of much higher grades. Complete assay results for all of the final twenty-eight holes reported herein are attached.

�These results wrap up a successful exploration program at the Minto Mine in 2008,� said Stephen Quin, President & COO of Capstone Mining. �During the year, we expanded, upgraded and increased the confidence levels for the Area 2, Area 118 and Ridgetop deposits. These latest results both infill and expand the Ridgetop deposit to the east, defining two high grade zones of copper-gold mineralization within a broader envelope of more moderate grades, typically 40-60 metres thick, and ranging from outcropping to relatively shallow depths, which offers potentially low strip ratios,� he said. �The Ridgetop deposit remains open (to the east), as do some of the other deposits, plus the Copper Keel discovery remains wide open, offering additional upside opportunities to be tested in 2009.�

2008 Drill Program

The 2008 drill program is complete, with 120 holes (118 complete and 2 abandoned) drilled for a total of 23,840 metres, accomplishing the primary objective of (a) expanding the known resources at the Area 2, Area 118 and Ridgetop deposits and (b) increasing the confidence in those mineral resources in support of a pre-feasibility study for an expanded operation. Work on the pre-feasibility study has commenced and is planned for completion by mid-2009. The study will incorporate new resources estimates, including the results of 2008 drilling for all deposits, evaluate development options for these resources, determine optimal throughput levels (including a possible mill throughput expansion to the range of 4,000 to 5,000 tpd) and maximizing conversion of resources to reserves.

Copper and gold assay results have now been received for all of the 2008 drill holes; results for the last 28 of which are reported herein. Interpretation work is also complete on new geology models to support the new resource estimates for Area 118, Area 2 and Ridgetop, and resource estimation has commenced. The new resource estimates are expected to be released by the end of the first quarter, 2009, and will provide the basis for the updated pre-feasibility study discussed above.

Please follow the link below to a map identifying the priority exploration areas for 2008.
www.sherwoodcopper.com/i/pdf/2008-12-10PriorityExplorationCorridor.pdf

For current drill hole locations, please view the accompanying map:
www.sherwoodcopper.com/i/pdf/2008-12-10DHLocationMap.pdf

About Capstone Mining

Capstone Mining�s objective is the profitable production of base and precious metals from high grade low cost mines in mining-friendly jurisdictions. The Minto Mine in Yukon and Cozamin Mine in Mexico meet these objectives and both mines have undergone staged expansions, the most recent of which were completed in late 2008, the benefits of which will be fully realized in 2009. In parallel with expanding production, major exploration programs conducted in 2008 have been completed and are anticipated to result in increased mineral resources and, subject to demonstrated economics, conversion to mineral reserves, potentially supporting further increases in production levels. In addition, Capstone controls the high grade Kutcho copper project in British Columbia, were on-going activities aim to advance the project towards a production decision. In addition to its low cost copper production, Capstone has a strong balance sheet and a significant copper hedge book priced well above current spot prices for copper.

Quality Assurance

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Stephen P. Quin, P. Geo., President & COO for Capstone Mining. The exploration activities at the Minto project site are carried out under the supervision of Brad Mercer, P. Geol., V.P. Exploration (Canada) for Capstone.

The analytical method for copper and silver performed by SGS Laboratories under a contract arrangement at the Minto Mine Site, Yukon includes digestion in aqua regia followed by absorption spectroscopy.  Gold is measured using fire assay with atomic absorption spectroscopy; analysis is performed by SGS Laboratories at Red Lake, Ontario. When visible gold is noted in drill core samples or regular analytical values exceed 5 grams per tonne, the pulp and screen metallic assay method is used to determine total gold content and gold content of different size fractions. This is considered industry best practice when dealing with coarse gold mineralization where a nugget effect is suspected. The result of the pulp and screen metallic assay is accepted as the most representative value and used in the assay database for resource calculations. Blank and standard samples are added to all sample shipments prior to submittal to the lab for quality assurance and quality control.  If more than two check samples assay outside of expected ranges, the work order is re-assayed. After the completion of planned drill programs, random check assays will be carried out by ALS Chemex of North Vancouver, BC.

Assay intervals reported herein are drill core lengths unless otherwise stated. Because the known deposits are essentially flat lying and most drill holes reported to date are vertical, true widths are generally expected to be the same as reported core lengths unless otherwise stated.

Additional Information

Additional information on Capstone and its Minto Mine can be obtained on Capstone�s website at http://www.capstonemining.com or on the former Sherwood Copper website at www.sherwoodcopper.com.

On behalf of the board of directors
CAPSTONE MINING CORPORATION
�Stephen P. Quin�
Stephen P. Quin
President & COO 

The TSX does not accept any responsibility for the adequacy or accuracy of this press release.

Forward-Looking Statements

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and Capstone Mining Corp. (hereinafter referred to as the "Company") do not intend, and do not assume any obligation, to update these forward-looking statements.

Forward-looking statements relate to future events or future performance and reflect management of the Company's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "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. 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 the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward looking statements.

To view the complete news release with Drill Results, please see our web site at http://capstonemining.com/news/2008/index.php?&content_id=202

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