A Leading Intermediate Copper Producer September 2015 1 Cautionary - PowerPoint PPT Presentation

A Leading Intermediate Copper Producer September 2015 1

Cautionary Note On Forward Looking Information This presentation, and the documents incorporated by reference herein, 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 -loo king statements”). These forward -looking statements are made as of the date of this document and 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 Company management’s expectations or belief s regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward- looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “outlook”, “guidance”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or sta tem ents that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative of these terms or comparable terminology. In this docume nt, certain forward-looking statements are identified by words including “guidance”, “may”, “future”, “expected”, “intends” and “estimates”. By their very nature forward -looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral resources; possible variations in ore reserves, grade or recovery rates; accidents; dependence on key personnel; labour pool constraints; labour disputes; availability of infrastructure required for the development of mining projects; delays or inability to obtain governmental and regulatory approvals for mining operations or financing or in the completion of development or construction activities; counterparty risks associated with sales of our metals; increased operating and capital costs; operating in foreign jurisdictions with risk of changes to governmental regulation; impact of climatic conditions on our Pinto Valley, Cozamin and Minto operations; compliance with debt covenants, 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 management’s discussion and a nalysis of those statements, all of which are filed and available for review under the Company’s profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. The Company provides no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Alternative Performance Measures “C1 cash cost”, “cash cost”, “all - in sustaining cost”, “all - in cost”, “fully -loaded all- in cost”, “adjusted net earnings/loss”, adjusted EBITDA”, “operating cash flow before changes in working capital” and “net debt” are Alternative Performance Measures. Alternative performance measures are furnished to provide additional informa tion. These performance measures are used by management to monitor performance, to assess how the Company is performing to assess the overall effectiveness and efficiency of mining operations. These performance measures may not be comparable to similar data presented by other mining companies. These performance measures should not be considered in isolation as a substitu te for measures of performance included in the Company’s unaudited condensed interim consolidated financial statements prepared in accordance with IFRS. Currency All amounts are in US$ unless otherwise specified. 2

About Capstone Low-risk copper producer focused on the Americas Cash flow generation from a portfolio of three mines Financial flexibility Proven track record of sustainable growth A leading intermediate copper producer 3

Portfolio PRODUCTION DEVELOPMENT EXPLORATION Portfolio Portfolio Three operating mines Short term Long term Robust project offering Early-stage base metals Production assets located in optionality for significant stable geographies in the exploration properties organic growth Americas producing 90 k tonnes 1 of copper in 2015  Pinto Valley  Santo Domingo  Chile Arizona, US Region III, Chile SQM - option to earn CS 70%; KORES 30% up to 70% of Project Providencia  Cozamin Zacatecas State, Mexico  Minto Yukon, Canada 1. ± 5%; see news release dated January 20, 2015 and September 9, 2015. 4

Two-Tiered Operating and Growth Strategy 1. Maintain financial and operating flexibility  Maintain disciplined, balanced approach with ample liquidity and a conservative and flexible balance sheet  Sustain core operations at the bottom of the cycle 2. Robust organic growth potential Potential brownfield expansion at Pinto Valley - PV3 PFS underway  Maintain optionality on Santo Domingo project  Prudently progressing the exploration portfolio  Criteria for growth through strategic acquisition - low-risk,  mining-friendly jurisdictions in the Americas, copper asset in or near production Capstone has considerable financial flexibility 5

Pinto Valley Mine Open Pit Mine in Arizona, US Mine life remaining (years) 11 Q2 2015 Production (k tonnes) 14.3 Q2 2015 C1 cash cost 1 ($/payable lb produced) $2.06 H1 2015 Production (k tonnes) 30.1 H1 2015 C1 cash cost 1 ($/payable lb produced) $1.99 By-products Mo, Ag Key Points  Continuing to reduce operating variability to optimize daily throughput  Significant amount of resources not in the mine plan being considered for a 10-15% increase in throughput and possibility of mine life extension in a Pre-Feasibility Study due for completion in Q3 2015 (PV3) Current PV2 mine plan represents only 16% of the total M&I Resource 1. C1 Cash Cost is an Alternative Performance Measure, which is net of by-product credits as well as treatment and selling costs. See Forward-Looking 6 Statements and Cautionary Note for NI 43-101 information.

PV2 Pre-Feasibility Summary & Mine Plan – March 2014 Summary of March 2014 PV2 PFS 1 Mine Life (years) 12.3 Mineral Resources 1,563mt@0.30% Mineral Reserves 232mt@0.33% Planned Throughput (ktpd) 50 - 52 Avg. Annual Production Cu (Mt) 57.1 Est. LOM C1 Cash Costs $2.00 LOM Sustaining Capital ($ millions) $187.9 After-tax NPV, 8% ($M) $738 50 0.50% Total Material Moved M aterial Mined (M t/year ) 45 0.45% 40 0.40% Copper Grade % 35 0.35% 30 0.30% 25 0.25% 20 0.20% 15 0.15% 10 0.10% 5 0.05% 0 0.00% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Capital Expenditure ($M) 47 62 12 12 9 11 14 6 5 5 3 2 0 Payable Copper (k tonnes) 64.1 54.8 65.1 55.8 56.2 54.1 57.0 56.1 54.7 52.3 59.7 41.0 12.0 1. Pinto Valley Mine 2014 Pre-Feasibility Study, Mineral Reserves and Resources take into account mining activities until January 1, 2014, and are 7 reported above 0.18% Cu Cut-off Grade. See Forward-Looking Statements and Cautionary Note for NI 43-101 information.

Pinto Valley Improvement Strategy Underway 2012/13 2014/15 2016+ Potential Restart Stabilize/Optimize Extension/Expansion Ramp-up to 50 ktpd Stabilizing at 50 - 52 ktpd Steady at 52 ktpd Upcoming Catalysts BHP Copper Cities Pinto Valley  Stabilized mill reliability  Pre-Feasibility for PV3 underway BHP with the potential to: Miami  Extend mine life Freeport  Expand production Miami Town of Miami KGHM Carlota Source: Google maps. 8

Cozamin Mine Underground Mine in Zacatecas State, Mexico Mine life remaining (years) 6 Q2 2015 Production (k tonnes) 2.7 Q2 2015 C1 cash cost 1 ($/payable lb produced) $2.09 H1 2015 Production (k tonnes) 6.5 H1 2015 C1 cash cost 1 ($/payable lb produced) $1.75 By-products Zn, Pb, Ag 2015 2016 2017+ Silver stream sale expires Improving mining procedures; Ongoing exploration targets once April 2017 to significantly infill drilling market conditions allow improve economics (currently ~1.5M oz/year) 1. C1 Cash Cost is an Alternative Performance Measure, which is net of by-product credits as well as treatment and selling costs. See Forward- 9 Looking Statements and Cautionary Note for NI 43-101 information.