1

Analyst and Investor LuncheonJanuary 10, 2018

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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 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”, “budget”, “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 including “anticipation”, “guidance”, “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, 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, use of financial derivative instruments and associated counterparty risks, 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 Pinto Valley, Cozamin and Minto 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 management’s discussion and analysis 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.

Alternative Performance Measures“C1 cash cost”, “cash cost”, “all-in cost”, “fully-loaded all-in cost”, “adjusted net income/loss”, “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 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 included in the Company’s unaudited condensed interim consolidated financial statements prepared in accordance with IFRS.

CurrencyAll amounts are in US$ unless otherwise specified.

Cautionary Note On Forward Looking Information

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IntroductionDarren Pylot - President, CEO & Director

44

Participants

Darren PylotPresident, CEO &

Director

Jim SlatterySVP & CFO

Gregg BushSVP & COO

Brad MercerSVP Exploration

Jason HoweVP Corporate Development

Cindy BurnettVP IR &

Communications

5

Presentation Overview

Topic Time Presenter

Introduction 10 min12:30 - 12:40

Darren PylotPresident, CEO & Director

Operations Update and Outlook• Pinto Valley• Minto• Cozamin

40 min12:40 – 1:20

Gregg BushSr. VP & COO

Exploration Strategy 30 min1:20 – 1:50

Brad MercerSr. VP Exploration

Growth Strategy 15 min1:50 – 2:05

Jason HoweVP Corporate Development

Financial Position• Debt Reduction Target

15 min2:05 – 2:20

Jim SlatterySr. VP & CFO

Closing Comments 10 min2:20 – 2:30

Darren PylotPresident, CEO & Director

5

6

Solid Base with Growth on the Horizon

Building a balance sheet to grow

Operations in Stable Jurisdictions

3 Operations ➢ +85k tonnes of copper over next 5 years

Leverage Returning and Strong Balance Sheet

Unhedged 2018 ➢ 100% Cu exposure returns January 2018

Balance Sheet➢ Net Debt Q3 2017 $185m➢ Net Debt / EBITDA 1.18x➢ Net debt target $100m

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220kt under $2.20/lb All-in by 2022

Internal Growth Opportunities External Growth Opportunities

Sho

rt t

erm

Lon

g te

rm

➢ Portfolio of Greenfield Exploration Targets

➢ Acquisition Criteria• Copper first• Mining friendly jurisdictions• Ability to extract more value than

paid for• Long life potential

Goal of four operations and one project build

➢ Pinto ValleyRegional opportunities

➢ CozaminMine life extension and zinc upside

➢ MintoCash flow contribution through 2021

➢ Santo DomingoDefine the value maximizing path forward

8

Operations Update and OutlookGregg Bush - Sr. VP & COO

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2018 Operating & Capital Guidance

Production and Operating Costs Pinto Valley Cozamin Minto Total

Copper Production (tonnes) 56,000 15,000 19,000 90,000

C1 Cash Cost1, 2 ($ per payable lb of Cu produced)

$1.90 - $2.00 $1.00 - $1.10 $2.35 - $2.45 $1.85 - $1.95

All-In Sustaining Cost3 ($ per payable lb of Cu produced)

$2.50 - $2.60 $1.75 - $1.85 $2.55 - $2.65 $2.50 - $2.60

1. This is an alternative performance measure, please see “Alternative Performance Measure” definition at the beginning of this presentation. 2. Net of by-product credits and selling costs. 3. All-In sustaining cost per pound of payable copper produced is C1 cash cost plus NSR and production royalties, non-cash deferred revenue, all sustaining capital expenditures (including cash portion of production-phase capitalized stripping), accretion of reclamation obligations, amortization of reclamation assets, corporate G&A and cash portion of pre-production capitalized stripping. 4. Capitalized stripping is included as an operating cost in the PV3 PFS, however, under IFRS accounting guidelines stripping costs are capitalized when the strip ratio is higher than the life-of-mine strip ratio. 5. Greenfield exploration will be expensed.

Capital Expenditures (US$ millions) Pinto Valley Cozamin Minto Total

Sustaining $44 $19 $6 $69

Brownfield Exploration - 7 - 7

Capitalized Stripping4 24 - - 24

Total $68 $26 $6 $100

Greenfield Exploration Expenditures5 (US$ millions) Total

Mexico $1

Chile 2

Total $3

1010

Maximizing the Value

Sho

rt-t

erm Optimization Increase Annual Copper Production Lo

ng-term

Sustaining mill throughput Develop a Recession-Proof Asset

Addressing Key Risks Evaluating Regional Opportunities

Pinto Valley Mine – Strategy

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PV Throughput

30,000

35,000

40,000

45,000

50,000

55,000

60,000

At Purchase PV2 Target PV3 Target

Steady throughput gains since acquisition

+14%

+8%

1212

2018 Sustaining Capex

Focus is planned maintenance, process enhancements and aging infrastructure

Capital Item2018 Budget

(US$M)

Mining fleet component replacement $17

Replace current rougher flotation cells 7

SX/EW repurposing initiatives 4

Crushing improvements 3

Pit dewatering 2

Replace UG power lines with overhead lines 2

Advancement of PV3 permitting 2

Other 7

Total Capex $44

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PV3 Mine Plan1

1. See Technical Report dated February 23, 2016.

➢ PV3 mine plan more than doubles mine life, increases throughput and lowers operating costs without significant capital investment

➢ No significant changes moving from PV2 to PV3

➢ Planning further 10% throughput expansion 2020/2021 with timeline aligned to permitting

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0 M

10 M

20 M

30 M

40 M

50 M

60 M

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

Cu

Grad

e

Mill

ion

To

nn

es

PV2 Ore PV3 Ore PV2 Waste PV3 Waste Cu Grade to Mill - 2018 SBP Cu Grade - PV3 Plan

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Pinto Valley Mine Plan

Minto North Underground

Area 118 UG(completed)

Minto East 2 Underground

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PV3 Permitting Timelines

Consolidated Plan of Operations/Environmental Impact Statement (EIS)Extends pit and tailings facilities onto National Forest land

➢ Q2/2016 Plan of operations submitted➢ 2018 - Draft EIS expected➢ 2019 - Earliest potential approval of Final EIS

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

Aquifer Protection Permit Amendments (ADEQ)

➢ Q1 2017 TSF4 Elevation Rise to 4,250 ft submitted; permit anticipated Q1 2018➢ Q1 2018 Main Dump Expansion submission; permit anticipated Q4 2018➢ Q2 2018 West Dump, Gold Gulch repurposing submission; permitted anticipated 2019

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Key Takeaways

➢ Long life asset in favorable jurisdiction

➢ Considerable resources support expansion and another pushback beyond PV3

➢ Focused on developing a recession proof asset

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Minto Mine – Strategy

Option on rising copper market

Generates robust cash flow at current prices over remaining life

Economic certainty to $2.00 lb copper price with Wheaton Precious Metals

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Minto Target Case – Mineral Reserves

Minto North Underground

M-Zone UG (completed)

Minto East Underground

Copper Keel Underground

Area 2 UG(in progress)

Area 118 UG(completed)

Minto East 2 Underground

Area 2 Stage 3 Pit

Ridgetop Pit

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Key Takeaways

➢ Cash flow contribution through 2021

➢ Operating insurance down to US$2.00/lb Cu

2020

Maximizing the Value

Sho

rt-t

erm

Expand Reserves in the MNFWZ Reduce Operating Costs Lon

g-term

Incorporate San Rafael Zinc production Maximize Capacity of the UG Infrastructure

Explore Additional Mining Concessions Increase Resources and Reserves

Cozamin Mine – Strategy

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Cozamin Mine Exploration Potential

Zinc Potential OpenCu-Zn Exp. Potential

MNV

MNFWZ

San RobertoShaft

24

00

20

00

18

00

MA

SL

747000 748000 749000

San RafaelZinc Zone

2017/18Targeting Indicated

2017/18Targeting Inferred

EndeavourBoundary

LOOKING NORTH

ZaragozaShaft

San Rafael Shaft2016/2017Zinc Drilling

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Key Takeaways

➢ Significant exploration success has potential to substantially add to mine life

➢ Infrastructure optimization

➢ Low operating costs

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Exploration Strategy and OutlookBrad Mercer – Sr. VP, Exploration

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Brownfield Greenfield

Building on significant recent success atCozamin

Focus on locations with team in place and permitting understood

➢ Mexico & Chile in particular

➢ The remainder of North and South America opportunistically

Exploration Strategy

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Cozamin Mine Exploration Potential

Zinc Potential OpenCu-Zn Exp. Potential

MNV

MNFWZ

San RobertoShaft

24

00

20

00

18

00

MA

SL

747000 748000 749000

San RafaelZinc Zone

2017/18Targeting Indicated

2017/18Targeting Inferred

EndeavourBoundary

LOOKING NORTH

ZaragozaShaft

San Rafael Shaft2016/2017Zinc Drilling

2626

Cozamin 2018 – MNFWZ Drilling Strategy

Indicated Resource

2018

Indicated Resource

2019

CS/EDRBoundary

LOOKING NORTHEAST

3% NSR on Cozamin claims - 1% NSR on Endeavor Claims

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Excellent grades plus intercepts generally thicker than historical

Footwall Zone – 2017 Results Update

U449Cu 2.62%

TW 13.28m

U450Cu 4.14%TW 2.81m

U436Cu 4.04%TW 3.68m

U444Cu 2.96%TW 7.08m

S294Cu 4.36%TW 0.93m

S287Cu 0.14%TW 0.48m

S289Cu 3.03%TW 4.59m

S285Cu 4.12%TW 6.89m

S295Cu 2.40%TW 1.49m

S293Cu 2.41%TW 3.27m

S297Cu 2.26% TW 7.99m

S291Cu 2.26%TW 6.48m

S284Cu 2.42%TW 4.40m

S292Cu 2.00%TW 3.17m

S298Cu 4.63% TW 6.19m

S296Assays Pending

TW 1.40m

S300Assays Pending

TW 7.42m

S299Assays Pending

TW 3.25m

U456Assays Pending

TW 2.82m

U457Assays Pending

TW 4.1m

S302In Progress

S303In Progress

S304In Progress

U459In Progress

U458In progress

U455Assays

PendingTW 3.83m

U441Cu 6.15%TW 2.75m

S301Assays Pending

TW 4.40m

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Cozamin 2018 – Convergence of New Opportunities

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Cozamin 2018 – Convergence of New Opportunities

3030

Surface Drilling

Location Metres Focus

Resource/Reserve

MNFWZ 40,000

Step-out: Wide-spaced drilling to extend MNFWZ on Capstone and Endeavour blocks (open 3-ways) to quantify largest possible Inferred Resource for long-range planning

Infill: Targeting some Indicated Resources for conversion to reserves in 2017 and 2018

BrownfieldSan Rafael East Splay

2,000Deposit extension and test down-dip for copper transition

Brownfield Parroquia 3,000 Testing system for more copper at depth

BrownfieldNew

TargetsCollaterally test hanging wall veins to the MNFWZ for free – up to 5 veins in some holes

Cozamin 2018 Exploration Focus - $7 million

Increasing the pace on MNFWZ and advancing nearby brownfields targets

3131

2018 Greenfield Exploration Program - $3 million

Mexico – Regional Exploration Priorities

1. Potential for ore within trucking distance to Cozamin

2. Standalone opportunities, with operating synergies

3. Other standalone opportunities

Chile

1. Exiting Project Providencia - 4 technical discoveries, including two deposits demonstrate technical ability

2. Now targeting new projects where we can add value doing good science

3. Focusing on potential and favorable entry/exit terms

Measured approach to greenfield exploration

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Key Takeaways

➢ Significant exploration opportunity at Cozamin

➢ Resource updates in 2018 and 2019 at Cozamin

➢ Project generation underway in Mexico near Cozamin

➢ Project generation underway in Chile near Santo Domingo

➢ Strong and disciplined exploration team and process

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Growth and StrategyJason Howe – VP, Corporate Development

3434

220kt under $2.20/lb All-in by 2022

Internal Growth Opportunities External Growth Opportunities

Sho

rt t

erm

Lon

g te

rm

➢ Portfolio of Greenfield Targets

➢ Acquisition Criteria• Copper first• Mining friendly jurisdictions• Ability to extract more value than

paid for• Long life potential

Goal of four operations and one project build

➢ Pinto ValleyRegional opportunities

➢ CozaminMine life extension and zinc upside

➢ MintoCash flow contribution through 2021

➢ Santo DomingoDefine the value maximizing path forward

35

Pinto Valley: Infrastructure Advantage

Source: Bing maps and boundaries are approximated

Evaluating regional resource opportunities

Carlota(KGHM)

Pinto Valley

Miami (FCX)

Copper Cities (BHP)

Miami (BHP)

Old Dominion

(BHP)

3636

Santo Domingo – 2018 Focus Areas

Examining key changes and their impact on value

Copper Development Project in Region III, Chile with approved EIS

Power➢ Updating costs for current

conditions

Port Infrastructure➢ Opportunities may eliminate

Capstone construction

Iron Ore➢ Reviewing opportunities to share

or utilize third party infrastructure

Updating OPEX & CAPEX

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Financial PositionJim Slattery – Sr. VP, CFO

3838

Expected Free Cash Flow to Further Repay Debt

At September 30, 2017 ($M)

Cash and cash equivalents $114.2

LESS: Long Term Debt1 $298.9

Net Debt $184.7

Total Net Debt / EBITDA 1.18:1

100% copper price exposure effective January 1, 2018

➢Revolving credit facility maturing 2021

➢$54M debt repaid in 2017

➢Proceeds from Kutcho sale (C$29m) to further reduce net debt

➢Net debt target of $100 million

➢Unhedged January 1, 2018

1. Does not include a $14 million debt repayment on October 18, 2017.

3939

2018 Free Cash Flow Potential at $3.00 Copper

1. Does not include $3M budgeted as an expense for greenfield exploration. 2 Source: Bloomberg, based on identifiable analyst consensus estimates

Significant free cash flow generation potential at spot prices

$0

$50

$100

$150

$200

2018 Capital Guidance 2018 EBITDA Potential

Sustaining

Development/Capitalized Stripping

Exploration

1 2

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Closing CommentsDarren Pylot - President, CEO & Director

4141

Organic growth opportunities in our portfolio

• Plant optimization/expansion

• Regional expansion

opportunities

• Significant brownfield

drilling success in 2017

• Accessing additional

land and accelerating

exploration

• Mine life extension to

mid- 2021, potentially

beyond

• Adjusted stream provides

insurance

• Define the value

maximizing path

forward

• Appropriate size and

return for Capstone

Growth Potential

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Questions

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For additional information, please visit capstonemining.com or contact us at:

Phone: +1-604-684-8894

Toll Free: 1-866-684-8894

Email: info@capstonemining.com

January 10th, 2018