AN EMERGING GROWTH STORY Corporate Presentation – December 2019
Cautionary Notes CAUTIONARY NOTE ON FORWARD LOOKING INFORMATION COMPLIANCE WITH NI 43-101 This presentation, and the documents incorporated by reference herein, may contain “forward-looking information” Unless otherwise indicated, Capstone has prepared the technical information in this presentation within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the (“Technical Information”) based on information contained in the technical reports and news releases United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”). These (collectively the “Disclosure Documents”) available under Capstone Mining Corp.’s company profile on forward-looking statements are made as of the date of this document and Capstone Mining Corp. (“Capstone” or the SEDAR at www.sedar.com. Each Disclosure Document was prepared by or under the supervision of a “Company”) does not intend, and does not assume any obligation, to update these forward-looking statements, except qualified person (a “Qualified Person” or “QP”) as defined in National Instrument 43-101 – Standards of as required under applicable securities legislation. Forward-looking statements relate to future events or future Disclosure for Mineral Projects of the Canadian Securities Administrators (“NI 43-101”). For readers to fully performance and reflect our expectations or beliefs regarding future events. Forward-looking statements include, but understand the information in this presentation, they should read the Technical Reports (available on are not limited to, statements with respect to the estimation of mineral resources and mineral reserves, the realization www.sedar.com) in their entirety, including all qualifications, assumptions and exclusions that relate to the of mineral reserve estimates, the timing and amount of estimated future production, costs of production and capital information set out in this presentation which qualifies the Technical Information. Readers are advised that 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”, mineral resources that are not mineral reserves do not have demonstrated economic viability. The “guidance”, “scheduled”, “estimates”, “forecasts”, "future state", “intends”, “anticipates”, “believes” or variations of Disclosure Documents are each intended to be read as a whole, and sections should not be read or relied such words and phrases, or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will upon out of context. The Technical Information is subject to the assumptions and qualifications contained be taken”, “occur” or “be achieved” or the negative of these terms or comparable terminology. In this document in the Disclosure Documents. certain forward-looking statements are identified by words such as “expects”, “approximately”, “could”, “expects”, “target”, “targeting”, “guidance”, “potential”, “extended”, “convert”, “will”, “plan” and “expected”. By their very The Technical Information in this presentation has been prepared in accordance with NI 43-101 and nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause reviewed and approved by Brad Mercer, P. Geol., Capstone's Senior Vice President, Operations and our actual results, performance or achievements to be materially different from any future results, performance or Exploration, a Qualified Person as defined in NI 43-101. 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 ALTERNATIVE PERFORMANCE MEASURES acquire properties for growth, counterparty risks associated with sales of our metals, foreign currency exchange rate “C1 cash cost”, “cash cost”, “adjusted EBITDA”, “operating cash flow before changes in working capital” and fluctuations, changes in general economic conditions, accuracy of mineral resource and mineral reserve estimates, “net debt” are Alternative Performance Measures. Alternative performance measures are furnished to operating in foreign jurisdictions with risk of changes to governmental regulation, compliance with governmental provide additional information. These non-GAAP performance measures are included in this presentation regulations, compliance with environmental laws and regulations, reliance on approvals, licences and permits from because these statistics are key performance measures that management uses to monitor performance, to governmental authorities, impact of climatic conditions on our operations, aboriginal title claims and rights to assess how the Company is performing, to plan and to assess the overall effectiveness and efficiency of consultation and accommodation, land reclamation and mine closure obligations, uncertainties and risks related to the mining operations. These performance measures do not have a standard meaning within IFRS and, potential development of the Santo Domingo Project, increased operating and capital costs, challenges to title to our therefore, amounts presented may not be comparable to similar data presented by other mining 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 companies. These performance measures should not be considered in isolation as a substitute for insurance coverage, labour relations, increasing energy prices, competition in the mining industry, risks associated with measures of performance in accordance with IFRS. For full information, please refer to the Company’s joint venture partners, our ability to integrate new acquisitions into our operations, cybersecurity threats, legal latest Management Discussion and Analysis published on its Financial Reporting webpage or on SEDAR. 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 CURRENCY for review under the Company’s profile on SEDAR at www.sedar.com. Although the Company has attempted to identify All amounts are in US$ unless otherwise specified. 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 FOOTNOTES 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 Refer to the FOOTNOTES slide for all references throughout this presentation. those anticipated in such statements. Accordingly, readers should not place undue reliance on our forward-looking statements. CAPSTONE MINING (TSX:CS) • 2
Investment Highlights: An Emerging Growth Story Near-term target in 2021 • 20% production growth to ~180 MIbs per year post-Cozamin expansion and Pinto Valley mill modernization project C1 costs 1 10% lower to ~$1.60 to $1.65 per pound • Medium-term expansion capability • PV4 study to tap into over one billion tonnes of Resources outside the Reserve at Pinto Valley 2 Unlocking value at Santo Domingo (CS 70%) • Strategic process underway – after tax NPV US$1.0B, IRR 22% 3 Step change NAV through ongoing exploration excellence • Exploration successes have driven outstanding NAV creation Strong balance sheet and cost cutting positions us to execute on growth initiatives CAPSTONE MINING (TSX:CS) • 3
Capstone Strategy Maximize value of Generate free cash Peer leading mid-tier existing assets flow at all points in copper growth the copper cycle company with a solid • Continued exploration balance sheet to excellence • Cozamin Tier 1 asset • Cozamin expansion 1 execute • Pinto Valley transitions to a • Mill modernization at lower cost mine Pinto Valley 1 • Ongoing cost reduction • PV4 expansion study 1 program 1 CAPSTONE MINING (TSX:CS) • 4
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