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NEWS RELEASE TSX : CS capstonemining.com October 26 , 2021 Capstone Increases Net Cash¹ Position to $ 208 Million ; Reiterates Annual Guidance as Cozamin Mine Achieves Record Quarterly Production in Q3 2021 ( All amounts in US $ unless otherwise specified ) Vancouver , British Columbia - Capstone Mining Corp. ( " Capstone " or the " Company " ) ( TSX : CS ) today announced production and financial results for the three ( " Q3 2021 " ) and nine months ( " 2021 YTD " ) ended September 30 , 2021 . Consolidated copper production totaled 44.4 million pounds at C1 cash costs¹ of $ 1.96 per payable pound of copper produced . Link HERE for Capstone's Q3 2021 management's discussion and analysis ( " MD & A " ) and financial statements and HERE for the webcast presentation . Darren Pylot , President and CEO of Capstone commented , " This year Pinto Valley Mine and the communities nearby have faced wildfires and floods and I'm proud of Capstone's contribution in emergency relief efforts that made a real difference . Despite extreme conditions the Mine is still on track to meet annual guidance which is a testament to the leadership and overall talent at Pinto Valley , enabled by the optimization investments we have made over the past few years . Capstone is committed to climate change action to build resilient operations and stronger communities . Our ESG Strategy and Responsible Sourcing Project will be key to achieve long - term sustainability and I look forward to unveiling them in 2022. " Brad Mercer , SVP & COO added , " Severe floods in July & August in Arizona resulted from heavy rains on terrain burned clean by wildfires just weeks prior . While the first half of the quarter saw significantly reduced mining and milling rates due to the extreme wet conditions , from September to present the operation has averaged over 60,000 tonnes per day throughput boosted by the completion of our PV3 Optimization project " . Mr. Mercer continued , " Once again I'm very pleased with our Cozamin Mine performance . We exceeded guidance by delivering low cost , record production that distinguishes this operation as a first quartile asset " . OPERATIONAL & FINANCIAL OVERVIEW • • • • • • • • Cash and short - term investments grew by $ 36.7 million to $ 208.2 million during the three months ending September 30 , 2021. The Company's total available liquidity1 was $ 433.2 million with nil long - term debt . The balance sheet was enhanced by continued strong operating cash flow generation during Q3 2021 . Operating cash flow before changes in working capital¹ of $ 67.1 million in Q3 2021 driven by strong revenue in a plus $ 4 copper environment . Operating cash flow and earnings were negatively impacted by $ 10.0 million of realized loss on provisional price adjustments plus lag in sales timing of 3.3 million pounds of copper , impact of approximately $ 6 million after - tax during the quarter . Net income of $ 35.0 million , or $ 0.09 per share for Q3 2021. Adjusted net income¹ of $ 35.3 million or $ 0.09 per share . Adjusted EBITDA¹ for Q3 2021 of $ 72.3 million and 2021 YTD of $ 318.9 million . Adjusted EBITDA¹ is reflective of Capstone's strong operational performance and financial leverage of the Company's EBITDA¹ in a robust copper price environment . Consolidated copper production of 44.4 million pounds at C1 cash costs¹ of $ 1.96 per payable pound of copper produced . Consolidated copper production for 2021 YTD of 135.5 million pounds at C1 cash costs 1 of $ 1.85 per payable pound of copper produced are on track with 2021 guidance . Cozamin Mine achieved another record quarterly copper production of 14.1 million pounds at $ 0.93 per payable pound of copper produced and attained targeted new run rate of 3,854 tpd . Q3 2021 production was 33 % higher than in Q3 2020 following commissioning of the Calicanto one - way ramp in Q1 2021 . Pinto Valley Mine quarterly production and C1 cash costs¹ were negatively impacted by an estimated 10 % to 30.3 million pounds at $ 2.44 per payable pound produced by heavy monsoon rains in July and August causing lower mining and milling rates . While the first half of the quarter saw extreme wet conditions , from September to present the Operation has averaged over 60,000 tonnes per day ( " tpd " ) upon completion of the PV3 optimization work . There remains strong interest in Santo Domingo and discussions are advancing well . The Santo Domingo project is a very attractive project and it retains a Decree Law 600 ( " DL 600 ” ) Tax Invariability Agreement 1 This is an alternative performance measure ; please see " Alternative Performance Measures " at the end of this release . 1