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Capstone Consolidated Mineral Reserves & Resources

Capstone’s Estimated Mineral Reserves as at January 1, 20161

MINERAL RESERVES CONTAINED METAL
Category kt

Cu

%

Zn

%

Pb

%

Mo

%

Ag

g/t

Au

g/t

Fe

%

Cu

kt

Zn

kt

Pb

kt

Mo

kt

Ag

koz

Au

koz

Fe6

Mt

Pinto Valley1 Proven 350,445   0.33 -      0.009      -      1,156      -  33 - - -
01-Jan-2016 Probable 123,720 0.25 - - 0.008 - - - 313 - -  9 - - -
Total 474,165 0.31 - - 0.009 - - - 1,469 - - 42 - - -
Cozamin2 Proven 366 1.45 0.33 0.02      26      - 5 1 0      311 - -
01-Jan-2016 Probable 6,850 1.51 0.74 0.18 43 103 50 12 9,459 - -
Total 7,216 1.50 0.71 0.17      42      - 109 52 12      9,769 - -
Minto3 Proven 1,691 2.27 - - - 8 1.19      38 - - - 450 64.6 -
01-Jan-2016 Probable 3,782 1.69 - - -     5 0.64      64      -      631 77.2 -
Total 5,473 1.87      -      6 0.81      102      -      1,081 141.8 -
Santo Domingo4 Proven 65,300 0.61 - - - - 0.08 30.9 398 - - - - 170 8
02-May-2014 Probable 326,400 0.24 - - - - 0.03 27.6 783 - - - - 336 67
Total 391,700 0.30 - - - - 0.04 28.2 1,175 - - - - 506 75
Kutcho5 Probable 10,441 2.01 3.19 - - 35 0.37 - 210 333 - - 11,618 124 -
15-Feb-2011 Total 10,441 2.01 3.19 - - 35 0.37 - 210 333 - - 11,618 124 -
TOTAL CAPSTONE MINERAL RESERVES 3,065 385 12 42 22,468 772 75

Capstone's Estimated Mineral Resources as at January 1, 20162

MINERAL RESOURCES – Inclusive of Mineral Reserves CONTAINED METAL
Category kt

Cu

%

Zn

%

Pb

%

Mo

%

Ag

g/t

Au

g/t

Fe

%

Cu

kt

Zn

kt

Pb

kt

Mo

kt

Ag

koz

Au

koz

Fe6

kt

Pinto Valley1 Measured 648,238  0.34 -  -  0.008   - -     - 2,198 - - 54 - - -
01-Jan-2016 Indicated 772,333    0.26 -    -  0.006 - - - 1,990 - - 48 - - -
M&I 1,420,571 0.30 - - 0.007 - - - 4,188 - - 102 - - -
Inferred 125,961 0.25 - - 0.005 - - - 312 - - 6 - - -
Cozamin2 Measured 405 2.49 0.51 0.03     - 44     - - 10 2 0    - 566 - -
01-Jan-2016 Indicated 10,430 1.60 1.51 0.27    - 54     - - 167 158 29    - 17,985 - -
M&I 10,834 1.63 1.47 0.27    - 53     - - 177 160 29   - 18,551 - -
Inferred 8,885 1.34 0.99 0.16 - 37 - - 119 85 14    - 10,639 - -
Minto3 Measured 8,118 1.27 - - - 4 0.52    - 103  -  -    - 1,064 136 -
01-Jan-2016 Indicated 36,910 1.03   - -     - 3 0.37    - 380    -  -    - 3,996 443 -
M&I 45,028 1.07     - -     - 3

 0.40

- 484    -  -    - 5,060 579 -
Inferred 25,262 0.83     - -     - 3 0.25 - 210    -  -    - 2,062 205 -
Santo Domingo4 Measured 64,800 0.62 - - - - 0.08 31.2 402 - - - - 171 -
31-Aug-2012 Indicated 449,000 0.27 - - - - 0.03 25.0 1,212 - - - - 491 -
M&I 513,000 0.31 - - - - 0.04 25.8 1,590 - - - - 660 -
Inferred 58,100 0.20 - - - - 0.03 24.3 116 - - - - 49 -
Kutcho5 Measured 5,421 2.15 2.86 - - 31 0.34 - 116 155 - - 5,482 59 -
15-Feb-2011 Indicated 5,859 2.24 3.67 - - 42 0.45 - 131 215 - - 7,831 84 -
M&I 11,280 2.19 3.28 - - 37 0.39 - 248 370 - - 13,313 143 -
Inferred 1,090 1.74 2.04 - - 31 0.35 - 19 22 - - 1,077 12 -
TOTAL CAPSTONE MEASURED & INDICATED MINERAL RESOURCES 6,687 530 29 102 36,924 1,382 0
TOTAL CAPSTONE ADDITIONAL INFERRED MINERAL RESOURCES 776 110 14 6 13,778 266 0

1NOTES:   Mineral Reserves take into account mining activities (where applicable) until January 1, 2016. Gregg Bush, P.Eng., Senior Vice President and Chief Operating Officer at Capstone, is the Qualified Person for the disclosure of Capstone's consolidated Mineral Reserves table. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content. All Mineral Reserve estimates are inclusive of dilution and mining recovery factors. Contained ounces (oz) are troy ounces. COG is cut-off grade. NSR is net smelter return. All amounts in US$ unless otherwise specified. Stockpiled material is treated as Proven Mineral Reserves. See Technical Reports filed under Capstone’s profile on SEDAR for further information.

1. John Marek, PE, SME-RM, of Independent Mining Consultants, Inc., is an independent Qualified Person responsible for the preparation of the Mineral Reserves estimate with an effective date of January 2016. Economic inputs to the block model were USD$2.75/lb per pound copper, USD$12.75/lb Molybdenum. Cut-off Grade – variable between 0.17% Cu to 0.18% Cu through the LOM. The minimum mill feed cut-off grade is 0.17% Cu, but in years where sufficient higher grade mill feed is available, the mill cut-off grade may be higher, resulting in material between the yearly mill cut-off grade and 0.18% being stockpiled. The additional 0.01% from 0.17% to 0.18% is to cover the additional cost of rehandling material from the stockpile to the mill. Material between 0.17% to 0.18% that is not fed directly to the mill is not stockpiled as it cannot pay for the mining re-handling cost at the price assumptions used. Proven mineral reserves include an additional 323 kt of stockpiled material not considered in the Pinto Valley Mine Life Extension - Phase 3 (PV3) Pre-Feasibility Study NI 43-101 Technical Report.

2. Gregg Bush, P.Eng., Senior Vice President and Chief Operating Officer at Capstone, is the Qualified Person responsible for the disclosure of the Cozamin Mine Mineral Reserves taking into account ongoing mine production. Mel Lawson, SME-RM, and Allan Schappert, SME-RM, of Stantec Consulting International LLC, are independent Qualified Persons responsible for the preparation of the San Roberto zone Mineral Reserves estimate with an effective date of December 31, 2013. Metal prices used in the San Roberto reserve estimate for copper, silver, zinc, and lead, respectively, are $2.50/lb, $20/oz, $0.80/lb, and $0.85/lb. Processing recoveries were Cu=92%, Ag=72%, Zn=69%, Pb=64%. The exchange rate used is MEX12.50 to US$1.00. Allan Schappert, SME-RM, of Stantec Consulting International LLC, is an independent Qualified Person responsible for the preparation of the Mala Noche Footwall Zone Mineral Reserves estimate with an effective date of September 30, 2015. Metal prices used in the MNFW zone reserve estimate for copper, silver, and zinc, respectively, are $2.50/lb, $14/oz, $0.80/lb, and $0.85/lb. Contribution from Pb was not considered because a Pb concentrate will not be produced during 2016. Processing recoveries were Cu=94%, Ag=58%, and Zn=72%. A NSR COG of $42.50/t was used for the San Roberto and MNFW zones. The exchange rate used is MEX16 to US$1.00.

3.  Pooya Mohseni, P.Eng., Mine Manager at Minto, is the Qualified Person responsible for the estimation and disclosure of the Minto mineral reserves. Mineral reserves are reported as at December 31, 2015. Mineral reserves are reported above a cut-off grade of 0.5% Cu for open-pit material and above a US$ 64.40/t NSR cut-off for underground material. Stockpiles are treated as Proven mineral reserves. Metal price assumptions used to determine NSR cut-off for all deposits are: Cu=$2.50, Au=$300, Ag=$3.90. Process recoveries for all deposits are: Cu=91%, Au=70, Ag=78%. Totals may not sum exactly due to rounding.

4. Santo Domingo Project Mineral Reserves shown on 100% basis (Capstone’s share is 70%). Carlos Guzman, FAusIMM, CMC, of NCL Ingeniería y Construcción SpA, is the independent Qualified Person responsible for the preparation of the Mineral Reserves estimate with an effective date of May 2, 2014. Mineral Reserves are reported as constrained within Measured and Indicated pit designs, and supported by a mine plan featuring variable throughput rates and cut-off optimization. The pit designs and mine plan were optimized using the following economic and technical parameters: metal prices of $2.75/lb Cu, $1,275/oz Au and $80/dmt of Fe concentrate; recovery to concentrate assumptions of a maximum of 93.6% for Cu and 75% for Au, with magnetite concentrate recovery varying on a block-by-block basis; copper concentrate treatment charges of $70/dmt, $0.07/lb of Cu refining charges, $5/oz of Au refining charges, $48/wmt and $3/wmt for shipping Cu and Fe concentrates respectively; waste mining cost of $1.53/t, mining cost of $1.53/t ore, and process and G&A costs of $7.84/t processed; average pit slope angles that range from 37.6º to 43.6º; a 2% royalty rate assumption, and an assumption of 100% mining recovery. There have been no mining activities at Santo Domingo since the release of the NI 43-101 Technical Report.

5. Michael Makarenko, P.Eng., is an independent Qualified Person responsible for the preparation of the Kutcho Mineral Reserves estimate with an effective date of February 15, 2011. Mineral Reserves are reported within 1.0% Cu grade shells used for stope design. There have been no mining activities at Kutcho since the release of the NI 43-101 Technical Report.

6. Fe as magnetite concentrate (Fe3O4)

2NOTES: Mineral Resources take into account mining activities (where applicable) until January 1, 2016. Jeremy Vincent, P.Geo., Manager of Production and Development Geology at Capstone, is the Qualified Person responsible for the disclosure of Capstone's consolidated Mineral Resources table. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Mineral Resources are reported inclusive of the Mineral Reserves. All Mineral Resources are exclusive to dilution and mining recovery factors. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content. Contained ounces (oz) are troy ounces. COG is cut-off grade. NSR is net smelter return. M&I = Measured & Indicated. All amounts in US$ unless otherwise specified. Stockpiled material is treated as Measured Mineral Resources. See Technical Reports filed under Capstone’s profile on SEDAR for further information.

1. Garth Kirkham, P.Geo., FGC, of Kirkham Geosystems Ltd., is an independent Qualified Person responsible for the preparation of the Mineral Resources estimate with an effective date of January 1, 2016, which are reported above a total copper (TCu) COG of 0.17% TCu. Measured Mineral Reserves include an additional 323 kt of stockpiled material that was not considered in the Pinto Valley Mine Life Extension - Phase 3 (PV3) Pre-Feasibility Study NI 43-101 Technical Report.

2. Jeremy Vincent, P.Geo., Manager of Production and Development Geology at Capstone, is the Qualified Person responsible for the disclosure of the Cozamin Mine Mineral Resources taking into account ongoing mine production. Jeremy Vincent, P.Geo., is the Qualified Person responsible for the preparation of the Mala Noche Footwall Zone Mineral Resources estimate with an effective date of September 30, 2015. The MNFW Mineral Resources are reported above a NSR of $35/t using respective metal prices for copper, silver, zinc, and lead of $2.50/lb, $14.00/oz, $0.80/lb, and $0.85/lb. Processing recoveries used to calculate the NSR COG for the MNFWZ zone were Cu=94%, Ag=58%, and Zn=72%. Contribution from Pb was not considered because a Pb concentrate will not be produced during 2016. Exchange rate used for MNFW zone Mineral Resource estimate is MEX16 to US$1.00. Ali Shahkar, P.Eng., is an independent Qualified Person responsible for the preparation of the San Roberto zone Mineral Resources estimates. The cut-off date for mining and drillhole/mine sample data for the San Roberto zone Mineral Resource estimate is December 31, 2013. The San Roberto Mineral Resources are reported above a NSR of $35/t using respective metal prices for copper, silver, zinc, and lead of $2.50/lb, $20.00/oz, $0.80/lb, and $0.85/lb. Processing recoveries used to calculate the NSR COG for the San Roberto Mineral Resources are based on historical site operating experiences reflecting recoveries of: Cu=92%; Ag=72%; Zn=69%; Pb=64%. Robert Sim, P.Geo., of Sim Geological Inc., is an independent Qualified Person responsible for the San Rafael zone Mineral Resources estimate. The cut-off for drillhole data for the San Rafael zone is November 26, 2009. The San Rafael Mineral Resources are reported above a NSR of $35/t using respective metal prices for copper, silver, zinc, and lead of $2.50/lb, $14.00/oz, $0.80/lb, and $0.85/lb. Processing recoveries used to calculate the NSR COG for the San Rafael Mineral Resources are based on laboratory results reflecting recoveries of: Cu=41%, Ag=32%, Zn=84%, and Pb=65%. Exchange used for San Roberto and San Rafael zones Mineral Resources estimates is MEX12.50 to US$1.00.

3. Douglas McIlveen, P.Geo., Chief Geologist at Minto, is the Qualified Person responsible for the disclosure of the Minto Mine Mineral Resources taking into account ongoing mine production. Garth Kirkham, P.Geo., FGC, of Kirkham Geosystems Ltd., is an independent Qualified Person responsible for the preparation of the Mineral Resources estimates for the Minto North, Minto East, and Minto East 2 areas. The drilling data cut-off date for Minto North of December 1, 2009. The Minto East and Minto East 2 areas were reesimated with an effective date of May 31, 2015. Dr. Wayne Barnett, Ph.D., P.Geo., of SRK Consulting (Canada) Inc., is an independent Qualified Person responsible for the preparation of the Mineral Resources estimate at Ridgetop that takes into account drillhole data until August 2010, and the MSD deposit, which includes the Area 2/118, Wildfire, and Copper Keel areas. The MSD Mineral Resource estimate has an effective date of May 31, 2015. Minto North and Ridgetop areas are amenable to open pit extraction. Area 2/118 and Wildfire areas are amenable to open pit and underground mining, while Minto East, Minto East 2, and Copper Keel areas are suitable for underground mining. Mineral Resources are reported above a 0.5% Cu COG.  Metal price assumptions used to determine the COG for reasonable prospects of economic extraction for the MSD area are: Cu=$2.85, Au=$900, Ag=$12.00, and for all deposit areas are: Cu=$3.50, Au=$1,300, Ag=$16.00. Resources exclude material mined but not processed during pre-stripping activities in the Area 2 region of MSD and currently held in stockpiles.

4. Santo Domingo Project Mineral Resources shown on 100% basis (Capstone’s share is 70%). David Rennie, P.Eng., of Rosco Postle Associates Inc. and an independent Qualified Person responsible for the preparation of the Mineral Resources estimates for the Santo Domingo Sur, Iris, and Iris Norte deposits, which have an effective date of August 31, 2012. Mineral Resource estimates for the Estrellita deposit have an effective date of October 30, 2007. Mineral Resources for the Santo Domingo Sur, Iris, and Iris Norte deposits are reported using a COG of 0.25% copper equivalent (CuEq). CuEq grades are calculated using average long term prices of US$3.50/lb Cu, US$1,500/oz Au and US$1.94/dmtu Fe (US$120/dmt conc. at 62% Fe). The CuEq equation is: Metal Value = Grade*Cm*R%/100*(Price-TCRC-Freight)*(100-Royalty)/100, where Cm is a constant to convert grade of metal to metal price units; R is metallurgical recovery and %Cu Equivalent = (Cu Value + Au Value + Fe Value)/(Cu Value per 1%Cu). An assessment of reasonable prospects for economic extraction for the Santo Domingo Sur, Iris, and Iris Norte deposits was performed using a Lerchs–Grossman pit shell that has the following assumptions: pit slopes averaging 45°; mining cost of US$1.19/t, processing cost of US$ 4.49/t; processing recovery of 85%; selling price of US$2.25/lb, and a selling cost of US$0.247/lb. At the 0.25% CuEq cut-off, all but 5% of the Mineral Resources were captured by the pit shell. On the basis of this result, it was concluded that there was little merit in restricting the Mineral Resources to those blocks contained only within the pit shell. Accordingly, the Mineral Resource inventory was reported in its entirety. Mineral Resources for the Estrellita deposit are reported using a 0.3% Cu COG.

5. Garth Kirkham, P.Geo, FGC, is an independent Qualified Person responsible for the preparation of the Mineral Resources estimates with an effective date of February 15, 2011. Mineral Resources are reported above a 1.5% Cu COG.

6. Fe as magnetite concentrate (Fe3O4)