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Capstone Consolidated Mineral Reserves & Resources

Capstone’s Estimated Mineral Reserves as at January 1, 20171

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 332,489   0.33 -      0.009      -      1,090      -  31 - - -
01-Jan-2017 Probable 122,759 0.25 - - 0.008 - - - 312 - -  9 - - -
Total 455,248 0.31 - - 0.009 - - - 1,402 - - 41 - - -
Cozamin2 Proven 267 1.61 0.73 0.17      44      - 4 2 0      380 - -
01-Jan-2017 Probable 4,053 1.75 0.65 0.14 44 71 26 6 5,798 - -
Total 4,320 1.74 0.66 0.14      44      - 75 28 6      6,178 - -
Minto3 Proven 489 1.42 - - - 6 0.41      7 - - - 92 6 -
01-Jan-2017 Probable 3,429 1.71 - - -     5 0.65      59      -      563 72 -
Total 3,919 1.67      -      5 0.62      65      -      655 78 -
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 2,927 361 6 41 18,451 709 75

Capstone's Estimated Mineral Resources as at January 1, 20172

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 627,288  0.34 -  -  0.008   - -     - 2,120 - - 50 - - -
01-Jan-2017 Indicated 773,652    0.26 -    -  0.006 - - - 1,994 - - 46 - - -
M&I 1,400,940 0.29 - - 0.007 - - - 4,114 - - 97 - - -
Inferred 126,250 0.25 - - 0.005 - - - 312 - - 6 - - -
Cozamin2 Measured 688 2.03 0.91 0.16     - 52     - - 14 6 1    - 1,155 - -
01-Jan-2017 Indicated 7,036 1.71 1.66 0.27    - 53     - - 120 117 19    - 11,952 - -
M&I 7,724 1.74 1.59 0.26    - 53     - - 134 123 20   - 13,108 - -
Inferred 11,063 1.05 1.84 0.21 - 39 - - 116 203 23    - 14,008 - -
Minto3 Measured 5,707 1.09 - - - 3 0.36    - 62  -  -    - 592 66 -
01-Jan-2017 Indicated 25,211 1.17   - -     - 4 0.44    - 295    -  -    - 3,098 353 -
M&I 30,918 1.15     - -     - 4

 0.42

- 357    -  -    - 3,690 418 -
Inferred 16,223 0.93     - -     - 3 0.28 - 150    -  -    - 1,470 147 -
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 6,443 493 20 97 30,111 1,221 0
TOTAL CAPSTONE ADDITIONAL INFERRED MINERAL RESOURCES 713 225 23 6 16,555 207 0

1NOTES:   Mineral Reserves take into account mining activities (where applicable) until January 1, 2017. 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 disclosed in the Pinto Valley Mine Life Extension - Phase 3 (PV3) Pre-Feasibility Study NI 43-101 Technical Report, with an effective date of January 1, 2016. Economic inputs to the block model were USD$2.75/lb per pound copper, USD$12.75/lb Molybdenum. For the purposes of reporting mineral reserves going forward from January 1, 2017, an average cut-off grade of 0.175% Cu has been used, as it closely approximates the variable 0.17-0.18% Cu cut-off presented in the PV3 Pre-Feasibility NI 43-101 Technical Report. Proven mineral reserves include 282 kt of stockpiled material. Calculation of mine depletion during 2016 was overseen by Patricia Maloney, SME-RM, Superintendent of Mine Engineering at Pinto Valley, and a Qualified Person as defined by NI 43-101.

2. Diego Airo, P.Eng., Senior Mining Engineer at Capstone, is the Qualified Person responsible for the mineral reserves estimates of the San Roberto and Mala Noche Footwall zones, with an effective date of December 31, 2016. Metal prices used in the San Roberto and MNFW zone reserve estimated for copper, silver, zinc, and lead, respectively, are $2.50/lb, $20/oz, $1.00/lb, and $0.90/lb. Processing recoveries were Cu=94%, Ag=72%, Zn=70%, Pb=70%. The exchange rate used is MEX19.00 to US$1.00. Contribution from Pb was not considered because remaining reserves do not contain enough Pb to justify generating a concentrate. A NSR COG of $42.50/t was used for the San Roberto and MNFW zones.

3.  Pooya Mohseni, P.Eng., MBA, Mine Manager at Minto, and a Qualified Person supervised the preparation of the Mineral Reserves estimate of the Minto deposits. The Mineral Reserves estimates for MSD underground deposits (Area 2/118 underground and Copper Keel underground) and Minto East underground have an effective date of December 31, 2016. The Area 2 open pit mineral reserves have an effective date of December 31, 2015. Metal Price assumptions used to calculate the COG for all deposits are: Cu=$2.50, Au=$300, Ag=$3.90. Processing recoveries for all deposits are: Cu=91%, Au=70%, Ag=78%. Open pit mineral reserves are reported above 0.5% Cu COG. Underground mineral reserves are reported above a 1.2% Cu COG. Calculation of mine depletion during 2016 was overseen by Kevin Cymbalisty, P.Eng., Chief Engineer at Minto, and a Qualified Person as defined by NI 43-101.

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, 2017. 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 disclosed in the Pinto Valley Mine Life Extension - Phase 3 (PV3) Pre-Feasibility Study NI 43-101 Technical Report, with an effective date of January 1, 2016. Mineral resources are presented above a 0.17% Cu cut-off. Calculation of mine depletion during 2016 was overseen by Jeremy Vincent, P.Geo. Small increases in Indicated and Inferred tonnage as at December 31, 2016 in comparison to the resources stated as at January 1, 2016 are due to subtle reporting differences in the modelling software packages used at Pinto Valley and by Kirkham Geosystems Ltd. This difference is not material. Measured Mineral Reserves include 282 kt of stockpiled material.

2. Jeremy Vincent, P.Geo., is the Qualified Person responsible for the preparation of the mineral resource estimates for the San Robert, Mala Noche Footwall, and San Rafael zones, with an effective date of March 31, 2016. The Mineral Resources of the San Roberto and MNFW zones 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, $1.00/lb, and $0.90/lb. Processing recoveries used to calculate the NSR COG are based on historical site operating experiences reflecting recoveries of: Cu=94%; Ag=72%; Zn=70%; Pb=70%. Contribution from Pb was not considered because remaining reserves do not contain enough Pb to justify generating a concentrate. Exchange rate assumed is MEX19 to US$1.00. For the San Rafael resource estimate, the NSR formulae applied in 2014 were maintained, and were based on a head grade containing greater or less than 0.5% Cu. San Rafael mineral resources were reported above a NSR $35/t cut-off 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 of: Cu=41%, Ag=32%, Zn=84%, and Pb=65%. Exchange used assumed is MEX12.50 to US$1.00. No mining has been undertaken in the San Rafael zone since 2009.

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 and Minto East 2 areas. The drilling data cut-off date for Minto North of December 1, 2009. The Minto East 2 area was re-estimated with an effective date of May 31, 2015. Jeremy Vincent, P.Geo., is the Qualified Person responsible for the Minto East resource estimate with an effective date of June 30, 2016. 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 for open pit resources and above a 1.0% Cu cut-off for underground resources. Measured resources contain 489 kt of stockpiled material.

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)