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Press release from Newsfile Corp

Jennings Capital Initiates Coverage on Capstone Mining Corp with a Buy Recommendation - Video Overview Posted on www.InvestmentPitch.com

Wednesday, March 06, 2013

Jennings Capital Initiates Coverage on Capstone Mining Corp with a Buy Recommendation - Video Overview Posted on www.InvestmentPitch.com18:16 EST Wednesday, March 06, 2013Vancouver, British Columbia--(Newsfile Corp. - March 6, 2013) - Investment firm Jennings Capital has initiated coverage on Capstone Mining Corp (TSX: CS). Analyst Garnet Salmon gives the company a buy recommendation and a 12-month target price of $3.40 per share, a 45% premium to the current price of $2.34. InvestmentPitch.com has produced a "video news alert" about Capstone Mining based on this research report. If this link is not enabled, please visit www.InvestmentPitch.com and enter "Capstone" in the search box.If you cannot view the video above, please visit: http://www.investmentpitch.com/video/0_3dcqxvry/Jennings-Capital-Initiates-Coverage-on-Capstone-Mining-Corp-TSX-CSCapstone's stable of two producing copper mines offers investors exposure to the copper prices in a conservative manner: consistent production at reasonable and steady cash costs in safe jurisdictions, namely Mexico and Yukon. The company has been a consistent copper producer with a relatively steady cash cost over the past 5 years, averaging $1.35 per pound.In addition, the company has two development projects, the large scale 70%-owned Santo Domingo copper-iron-gold project in Chile, in partnership with Korea Resources Corporation, and the 100%-owned Kutcho copper-zinc-gold-silver project in British Columbia, as well as other exploration properties.Salmon stated, "We believe that in a volatile copper price environment Capstone offers investors a solid defensive way to play the copper price, with a 5-year historical 83% correlation to copper prices. We believe Capstone is well-positioned to become a major consolidator of intermediate copper mines in the near-term, to add significant growth to its production profile." The company has built a cash stockpile of approximately $500 million, representing slightly more than 50% of its current share price. The company also has initiated a share buy-back program, representing 10% of the public float of 34 million shares, with approximately 1.5 million shares already taken up.Capstone trades at $2.34 and with 380 million shares outstanding the company is capitalized at $889 million.For more information please visit the company's website www.capstonemining.com, or call Cindy Burnett VP, Investor Relations and Communications at 1-866-684-8894 or email burnett@capstonemining.com.For more information about Jennings Capital or to obtain a copy of their research report, contact your nearest Jennings Capital office. Their branches are listed on their website at www.jenningscapital.com.InvestmentPitch.com, a multimedia company that provides a combined solution for creating and hosting financial video content, and distributing it across multiple platforms to investors and financial professionals, specializes in producing three minute videos based on news releases and research reports.CONTACT: InvestmentPitch.com Barry Morgan, CFO bmorgan@investmentpitch.com