Capitan Mining Inc. reported results for six reverse-circulation (RC) drill holes from the Capitan Hill oxide-gold deposit, at its 100%-owned Peñoles project in Durango, Mexico. In addition, management is also pleased to report that after several months of negotiation they have entered into a purchase agreement to acquire a portfolio of royalties including a 2% royalty on the Capitan Gold oxide deposit from Exploraciones Altiplano. Drillhole CARC 21-48: returned 35.1m of 0.42 g/t Aueq including 4.6m of 1.1 g/t Aueq Extends mineralization 170m down-dip from hole 21-CARC-25 on cross section -100.

Royalty Buyback: Total purchase price of royalty portfolio is $1.0 Million over two years, payable in cash and shares. The Altiplano royalty portfolio included a 2% net smelter royalty (NSR) on the Capitan Hill oxide-gold deposit. Any shares issued to Altiplano are subject to right of first refusal (ROFR) allowing Capitan to market and place shares with investors if Altiplano elects to sell.

This transaction with Altiplano in combination with Capitan's contractual option to retire Riverside Resources 1% royalty for CAD 250,000 will leave the Peñoles project royalty free and will enhance overall project economics for investors. Drilling to resume in late January following holiday break. Assays for 11 drill holes are pending.