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Suite 900 - 999 West Hastings Street Vancouver, BC V6C 2W2 ANNUAL INFORMATION FORM For the year ended December 31, 2012 Dated as of March 28, 2013 TABLE OF CONTENTS GLOSSARY OF TECHNICAL TERMS .............................................................................................................................. IV ITEM 1 - CORPORATE STRUCTURE ............................................................................................................................... 7 1.1 NAME, ADDRESS AND INCORPORATION .................................................................................................................... 7 1.2 INTERCORPORATE RELATIONSHIPS............................................................................................................................ 8 ITEM 2 - GENERAL DEVELOPMENT OF THE BUSINESS .................................................................................................. 8 2.1 THREE YEAR HISTORY ............................................................................................................................................ 8 ITEM 3 - DESCRIPTION OF THE BUSINESS ................................................................................................................... 11 3.1 GENERAL .......................................................................................................................................................... 11 3.2 MATERIAL MINERAL PROPERTIES .......................................................................................................................... 15 3.3 COZAMIN MINE (MEXICO) ................................................................................................................................... 15 3.4 MINTO MINE (YUKON TERRITORY) ........................................................................................................................ 28 3.5 SANTO DOMINGO PROJECT (CHILE) ....................................................................................................................... 42 3.6 KUTCHO PROJECT (BRITISH COLUMBIA) .................................................................................................................. 53 ITEM 4 - RISK FACTORS .............................................................................................................................................. 64 ITEM 5 - DIVIDENDS AND DISTRIBUTIONS ................................................................................................................. 73 ITEM 6 - DESCRIPTION OF CAPITAL STRUCTURE ........................................................................................................ 73 6.1 GENERAL DESCRIPTION OF CAPITAL STRUCTURE ....................................................................................................... 73 ITEM 7 - MARKET FOR SECURITIES ............................................................................................................................. 73 7.1 COMMON SHARES - TRADING PRICE AND VOLUME ................................................................................................... 73 7.2 PRIOR SALES ...................................................................................................................................................... 74 ITEM 8 - DIRECTORS AND OFFICERS ........................................................................................................................... 74 8.1 NAME, OCCUPATION AND SECURITY HOLDING ......................................................................................................... 74 8.2 CEASE TRADE ORDERS, BANKRUPTCIES, PENALTIES OR SANCTIONS .............................................................................. 77 8.3 CONFLICTS OF INTEREST ....................................................................................................................................... 78 ITEM 9 - AUDIT COMMITTEE INFORMATION ............................................................................................................. 78 9.1 AUDIT COMMITTEE CHARTER ................................................................................................................................ 78 9.2 COMPOSITION OF THE AUDIT COMMITTEE............................................................................................................... 78 9.3 RELEVANT EDUCATION AND EXPERIENCE ................................................................................................................. 79 9.4 RELIANCE ON CERTAIN EXEMPTIONS ...................................................................................................................... 79 9.5 AUDIT COMMITTEE OVERSIGHT ............................................................................................................................. 79 9.6 PRE-APPROVAL POLICIES AND PROCEDURES ............................................................................................................ 79 9.7 EXTERNAL AUDITORS SERVICE FEES (BY CATEGORY) .................................................................................................. 79 ITEM 10 - LEGAL PROCEEDINGS AND REGULATORY ACTIONS .................................................................................... 80 ITEM 11 - INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS ................................................. 80 ITEM 12 - TRANSFER AGENT AND REGISTRAR ............................................................................................................ 80 ITEM 13 - MATERIAL CONTRACTS .............................................................................................................................. 80 ITEM 14 - – INTERESTS OF EXPERTS ........................................................................................................................... 81 14.1 NAMES OF EXPERTS ............................................................................................................................................ 81 14.2 INTERESTS OF EXPERTS ........................................................................................................................................ 81 ITEM 15 - ADDITIONAL INFORMATION ...................................................................................................................... 81 Date of Information In this Annual Information Form, unless the context otherwise requires, the “Company” or “Capstone” refers to Capstone Mining Corp. and its subsidiaries. All information contained herein is as of March 28, 2013, unless otherwise stated. Financial Statements This Annual Information Form should be read in conjunction with the Company’s consolidated financial statements and management’s discussion and analysis for the year ended December 31, 2012. The financial statements and management’s discussion and analysis are available under the Company’s profile on the SEDAR website at www.sedar.com. Cautionary Statement Regarding Forward-Looking Information This Annual Information Form, 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-looking statements”). These forward-looking statements are made as of the date of this document and Capstone 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. Forward-looking statements include, but are not limited to, statements with respect to the estimation of mineral resources and mineral reserves, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production and capital expenditures, the success of our mining operations, environmental risks, unanticipated reclamation expenses and title disputes. In certain cases, forward- looking statements can be identified by the use of words such as “plans”, “expects”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes” or variations of such words and phrases, or statements 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. By their very nature, forward-looking 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, among others, risks related to: . inherent hazards associated with mining operations; . future prices of copper and other metals; . counterparty risks associated with sales of our metals; . our ability to raise capital; . foreign currency exchange rate fluctuations; . accuracy of mineral resource and mineral reserve estimates; . dependence on key management personnel; . changes in general economic conditions; . uncertainties and risks related to the start-up of operations at the Santo Domingo Project and the Kutcho Project; . increased operating and capital costs; . challenges to title to our mineral properties; . operating