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Capstone Copper Announces Commissioning Activities Underway at MVDP and Provides Corporate Update

Mine Development & Operations

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December 20, 2023

Capstone Copper Announces Commissioning Activities

Underway at MVDP and Provides Corporate Update

Vancouver, British Columbia – Capstone Copper Corp. (“Capstone” or the “Company”) (TSX:CS) is

pleased to announce that commissioning activities are underway at its Mantoverde Development Project

(“MVDP”) in Chile. The Company is focused on a safe, efficient and phased project commissioning and ramp-

up. MVDP will increase the Company’s consolidated copper production by over 40% with a significant

decrease in unit operating costs.

Capstone also announces that it intends to apply for a secondary listing on the Australian Securities Exchange

(“ASX”), in addition to the Company’s existing primary Toronto Stock Exchange listing, and announces the

appointment of Mr. Gordon Bell to its Board of Directors.

MVDP Commissioning Activities Underway

John MacKenzie, Capstone’s Chief Executive Officer, commented, “ I am pleased to announce that

construction of all elements of the project that are required to commence commissioning are complete. The

project is on-time and we reaffirm our $870 million total capital cost guidance. This marks an exciting time for

Capstone, MVDP is transformational for our business and provides the base for incredible growth in the

Mantoverde-Santo Domingo District.”

On November 29th, first ore was introduced to the primary crusher. Mantoverde will continue to systematically

commission the concentrator plant and is on track to reach nameplate production levels of 32,000 tonnes per

day by mid-2024.

Cashel Meagher, Capstone’s President and Chief Operating Officer, commented: “ We just completed our

hiring process for an experienced workforce of over 130 skilled individuals to run the sulphide operations. Our

operating team is working with Ausenco to safely and efficiently ramp-up production.”

Capstone’s consolidated production, cost, and capital guidance for 2024 will be released in late January.

For a virtual tour of the Mantoverde Development Project, including the introduction of first ore to the primary

crusher, please visit: https://vrify.com/decks/12698-mantoverde-development-project

ASX Dual Listing

Capstone intends to apply to list as a Foreign Exempt Issuer on the Australian Securities Exchange (“ASX”)

during the first quarter of 2024. The Company has grown a substantial investor base in the Asia Pacific region

and this strategy will broaden Capstone’s exposure within these markets. The Company does not intend to

raise capital as part of the listing on the ASX and Capstone’s common shares will continue trading on the

Toronto Stock Exchange, its primary listing.

The ASX is a premium market with a long track record as a platform for mining companies. It provides a deep

and liquid pool of sophisticated investors and market participants who are limited or restricted to only ASX -

listed issuers and have a strong understanding of the mining business.

Appointment of New Director

Capstone also welcomes Gordon Bell as a new Independent Director effective January 8 th, 2024. He was

most recently Vice Chairman for the Mining and Metals Group of RBC Capital Markets before his retirement

in 2022. Previously, Mr. Bell was the Global Head for RBC’s Mining & Metals group, leading the expansion

NEWS RELEASE

TSX:CS ● capstonecopper.com

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and growth of the firm’s Mining and Metals practice domestically as well as in London, Australia and Asia,

establishing RBC as a leader in the sector globally.

Mr. Bell has global expertise in corporate strategy, debt and equity financing, shareholder engagement, and

mergers and acquisitions. He received a Bachelor of Science in Mining Engineering from Queens University

in Kingston, Ontario and an MBA from Washington University in St. Louis, Missouri.

Exhibit 1: MVDP, Sulphide Operations

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Exhibit 2: Significant Near-Term Copper Production Growth

Capstone plans to release a Feasibility Study for the Mantoverde Optimized Project (“MVDP Optimized”) in

the first half of 2024. MVDP Optimized contemplates increasing throughput to approximately 45,000 tonnes

per day (from 32,000 tonnes per day) with no major capital equipment upgrades.

Exhibit 3: Ausenco Case Studies – Previous Copper Concentrator Builds; Number of Months for

Throughput to Achieve 100% of Plant Design

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Exhibit 4, MVDP, Covered Coarse Ore Stockpile Interior

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Exhibit 5: MVDP, Grinding and Flotation Circuit Close-Up

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Exhibit 6: MVDP, Desalination Plant

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About Capstone Copper Corp.

Capstone Copper Corp. is an Americas -focused copper mining company headquartered in Vancouver,

Canada. We own and operate the Pinto Valley copper mine located in Arizona, USA, the Cozamin copper-

silver mine located in Zacatecas, Mexico, the Mantos Blancos copper- silver mine located in the Antofagasta

region, Chile, and 70% of the Mantoverde copper-gold mine, located in the Atacama region, Chile. In addition,

we own the fully permitted Santo Domingo copper- iron-gold project, located approximately 30 kilometres

northeast of Mantoverde in the Atacama region, Chile, as well as a portfolio of exploration properties in the

Americas.

Capstone Copper’s strategy is to unlock transformational copper production growth while executing on cost

and operational improvements through innovation, optimization and safe and responsible production

throughout our portfolio of assets. We focus on profitability and disciplined capital allocation to surface

stakeholder value. We are committed to creating a positive impact in the lives of our people and local

communities, while delivering compelling returns to investors by sustainably producing copper to meet the

world’s growing needs.

Further information is available at www.capstonecopper.com

Cautionary Note Regarding Forward-Looking Statements

This document 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 the Company 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. In certain cases, forward- looking statements can be identified by the use of

words such as “anticipate”, “approximately”, “believe”, “budget”, “will”, “project”, “ contemplate”, “estimate”,

“expect”, “forecast”, “guidance”, “intend”, “plan”, “scheduled”, “target”, or variations of such words and phrases,

or statements that certain actions, events or results “be achieved”, “could”, “may”, “might”, “occur”, “should”,

“will be taken” or “would” or the negative of these terms or comparable terminology.

Forward-looking statements include, but are not limited to, statements with respect to the timing and cost of

the Mantoverde Development Project (“MVDP”), the success of incorporating synergies previously identified

in the Mantoverde – Santo Domingo District Integration Plan, the timing and amount of estimated future

production, the costs of production and capital expenditures and reclamation, the success of our mining

operations, the intention to list on the ASX, the success of the listing application and the effects of such listing

if completed.

By their very nature, forward-l ooking 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, inflation, counterparty risks associated with sales of our metals, changes

in general economic conditions, availability and quality of water, accuracy of Mineral Resource and Mineral

Reserve estimates, operating in foreign jurisdictions with risk of changes to governmental regulation,

compliance with governmental regulations and stock exchange rules, reliance on approvals, licences and

permits from governmental authorities and stock exchanges and potential legal challenges to permit

applications, impact of climate change and changes to climatic conditions at our operations and projects, risks

relating to widespread epidemics or pandemic outbreaks, geopolitical events and the effects of global supply

chain disruptions, uncertainties and risks related to the potential development of the Santo Domingo project,

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risks related to the MVDP, challenges to title to our mineral properties, environmental risks, maintaining

ongoing social licence to operate, dependence on key management personnel, ASX listing approval and

ongoing ASX compliance requirements and other risks of the mining industry as well as those factors detailed

from time to time in the Company’s and the risks included in our continuous disclosure filings on SEDAR+ at

www.sedarplus.ca.

Although the Company has attempted to identify important factors that could cause our actual res ults,

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.

Footnotes

1 Mantoverde production f igures shown on a 100% bas is. MVDP Full Run-rate production is bas ed on first

seven years average in most recently disclosed NI 43-101 Technical Report.

2 This is an alternative performance measure; refer to the Company’s news release dated November 3, 2023.

C1 cash costs (US$ per payable lb Cu produced).

3 Based on data received from Ausenco. Case studies are based on copper concentrators including

Carrapateena (post initial 7- day Christmas run), Constancia (post L2 mill bearing rectification), Phu Kham

(instantaneous throughput rates), and Mina Justa Sulfide (instantaneous rates). Industry Benchmark based

on consultant benchmarking data (based on Transmin’s “average” concentrator data set, 2019).

Contact Information

Jerrold Annett, SVP, Strategy & Capital Markets

647-273-7351

[email protected]

Daniel Sampieri, Director, Investor Relations & Strategic Analysis

437-788-1767

[email protected]