Capstock Announces Brokered Private Placement of Subscription Receipts

CAPSTOCK FINANCIAL INC.

6975 Balaclava Street Vancouver, B.C. V6N 1M4 Telephone: (604) 689-4733 Fax: (604) 251-1721

CAPSTOCK ANNOUNCES BROKERED PRIVATE PLACEMENT OF SUBSCRIPTION RECEIPTS

Vancouver, B.C., October 17, 2011 CAPSTOCK FINANCIAL INC. (NEX: CPK.H) (the “Company” or “Capstock”) is pleased to announce that it has engaged MGI Securities Inc. (“MGI” or the “Agent”) to act as agent on a best efforts basis in connection with a brokered private placement (the “Private Placement”). The Private Placement consists of an aggregate of up to (i) 4,000,000 subscription receipts to be issued on a flow-through basis (the “FT Subscription Receipts”) at a price of $0.50 per FT Subscription Receipt; and (ii) 2,500,000 subscription receipts to be issued on a non-flow-through basis (the “Concurrent Subscription Receipts”) at a price of $0.40 per Concurrent Subscription Receipt. Each FT Subscription Receipt entitles the holder to one flow-through common share in the capital of the Company (each, a “FT Share”). Each Concurrent Subscription Receipt entitles the holder to one unit of the Company (each, a “Unit”), issued on a non-flow-through basis, with each Unit comprised of one non-flow-through common share of the Company (a “Unit Share”) and one-half of one nonflow-through common share purchase warrant (a “Warrant”). Each whole Warrant entitles the holder thereof to purchase one common share of the Company (a “Warrant Share”) at an exercise price of $0.60 per Warrant Share for a period of 18 months following closing of Capstock’s previously announced Qualifying Transaction (the “Qualifying Transaction”). For further details on the Qualifying Transaction see the Company’s news release dated September 1, 2011 (the “September News Release”).

Each FT Subscription Receipt and Concurrent Subscription Receipt (collectively, the “Subscription Receipts”) will be automatically converted into one FT Share and one Unit, respectively, upon the completion of the Qualifying Transaction. As disclosed in the September News Release in connection with the Qualifying Transaction the Company is expected to acquire from Kimpar Resources Inc. certain mineral claims located in the Gaspe region of Quebec (the “Properties”).

The Company expects to raise gross proceeds of up to $3,000,000 from the sale of the Subscription Receipts, such proceeds to be held in escrow and repaid, with interests, to subscribers if the escrow release conditions are not satisfied or waived within 6 months following the closing of the Private Placement. The Company plans to use the net proceeds from the Private Placement to cover expenses for the Private Placement and the Qualifying Transaction, general working capital and for exploration and development of the Properties.

The Company has granted MGI an option (the “Over-Allotment Option”) to purchase up to an additional 15% of the number of FT Subscription Receipts sold under the Private Placement and up to an additional 15% of the Concurrent Subscription Receipts sold under the Private Placement, effective upon receipt of subscriptions and exercisable within 5 business days of the closing of the Private Placement. If the Over-Allotment Option is exercised in full, the Company expects to receive additional gross proceeds of $450,000. Pursuant to the terms of the Private Placement the Company is also permitted to place an aggregate of 250,000 Flow-Through Subscription Receipts and 250,000 Concurrent Subscription Receipts (together, the “President’s List”) and the Agent will not receive commission for the same.

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As compensation for acting as agent, MGI will receive a commission equal to 7% of the gross proceeds from the Subscription Receipts sold (including, if applicable, the Over-Allotment Option but excluding Subscription Receipts sold pursuant to the President’s List), and compensation options (the “Agent’s Options”) equal to 7% of the aggregate number of Subscription Receipts sold pursuant to the Private Placement (including, if applicable, the Over- Allotment Option but excluding Subscription Receipts sold pursuant to the President’s List), exercisable for a period of 18 months from the date of closing of the Qualifying Transaction at an exercise price of $0.40. Each Agent’s Option entitles the Agent to purchase one Unit of the Company (the “Agent’s Unit”), with each Agent’s Unit comprised of one common share (an “Agent’s Unit Share”) and one-half of one non-flow-through common share purchase warrant (an “Agent’s Warrant”). Each whole Agent’s Warrant will entitle the Agent to purchase one additional common share in the Company (an “Agent’s Warrant Share”) exercisable for 18 months after the closing of the Qualifying Transaction at an exercise price of $0.60 per Agent’s Warrant Share.

All securities issued in connection with the Private Placement will be issued under exemptions from the prospectus requirement and will be subject to a statutory hold period of four months and a day from the date of issuance.

The Private Placement is scheduled to close on or about November 24, 2011 and is subject to certain conditions including, but limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange (the “Exchange”).

About Capstock Financial Inc.

The Company is designated as a Capital Pool Company by the Exchange and currently trades on NEX under the symbol “CPK.H”. The Company has not commenced commercial operations and has no assets other than cash. Any proposed Qualifying Transaction must be approved by the Exchange and, in the case of a non-arm’s length Qualifying Transaction, must also receive majority approval of the minority shareholders. Until the completion of a Qualifying Transaction, the Company will not carry on any business other than the identification and evaluation of businesses or assets with a view to completing a proposed Qualifying Transaction. For further information regarding the Company and the Company’s management team, see the Prospectus filed with the Company’s disclosure documents on SEDAR at www.sedar.com.

For further information, please contact:

Capstock Financial Inc.

R.A. Bruce McDonald, President and Chief Executive Officer Tel: (604) 689-4733

ON BEHALF OF THE BOARD

“R.A. Bruce McDonald”

R.A. Bruce McDonald President, Chief Executive Officer and a Director

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The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding “Forward-Looking” Information

Some of the statements contained in this news release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as “expects”, “intends”, “is expected”, “potential”, “suggests” or variations of such words or phrases, or statements that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond Capstock’s control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. Capstock undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.