Capstone and Sherwood Sign Combination Agreement

Another Milestone in the Creation of a High Grade, Low Cost, Growth Oriented Copper Producer VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 10/10/08 -- Sherwood Copper Corporation (TSX VENTURE: SWC) and Capstone Mining Corp. (TSX: CS) today announced that, further to their joint news releases dated September 8 and September 18, 2008 respectively, the companies have entered into a combination agreement dated as of October 9, 2008 pursuant to which the companies will combine, by way of plan of arrangement, to create a well-funded, low-cost, growth-oriented, copper company with two producing mines in mining friendly jurisdictions in North America. A copy of the combination agreement is available on SEDAR at under the companies' respective profiles. As previously disclosed, the special meeting of Sherwood's shareholders will be held in the offices of Sherwood's counsel, Dumoulin Black LLP, on the 10th floor of 595 Howe Street, Vancouver BC at 10:00 AM on November 14, 2008. Additional information will be provided in the information circular to be mailed to Sherwood's shareholders in late October 2008. About Capstone Mining Capstone is a Canadian based mining company currently operating the 100% owned Cozamin copper-silver-lead-zinc mine located in Zacatecas State, Mexico where a recently completed drill program is anticipated to result in significantly increased mineral reserves. The Cozamin Mine produced 6.7 million pounds of copper in concentrate at a total cash cost of US$0.90 per pound in the three months ended June 30, 2008 and is currently commissioning its mill expansion to 3,000 tonnes per day of throughput. Capstone has approximately 80.3 million shares outstanding and is well financed with no bank debt and an approximately 22% holding in Silverstone Resources Corp. Additional information on Capstone Mining and its Cozamin Mine is available on Capstone's website at About Sherwood Copper Sherwood Copper owns 100% of the high grade Minto copper-gold mine in Yukon, Canada, which was built on budget and ahead of schedule in 2007. The Minto Mine is one of the highest-grade open pit copper-gold mines in the world, and is forecast to be a low cost producer. The Minto Mine produced 12.8 million pounds of payable copper at a total cash cost of C$0.96 per pound in the three months ended June 30, 2008 and is currently commissioning its Phase 3 mill expansion to 3,200 tonnes per day of throughput. With 140% growth in mineral resources in 2006 and 2007, followed by a successful 2008 drilling program, Sherwood is preparing new mineral resource and reserve estimates that are expected to upgrade and increase the mineral resources and reserves at the mine, and plans to evaluate options for further significant increases in mill throughput. Sherwood also has a 100% interest in the high grade Kutcho copper-zinc project in BC, Canada, which it is advancing towards production. Additional information on Sherwood and its Minto Mine can be obtained on Sherwood's website at Forward-Looking Statements This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and Capstone Mining Corp. and Sherwood Copper Corp. (hereinafter referred to as the "Companies") do not intend, and do not assume any obligation, to update these forward-looking statements. Forward-looking statements relate to future events or future performance and reflect management of the Companies' expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and 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", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "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 which may cause the actual results, performance or achievements of the Companies 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 resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Companies' interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at Although the Companies have 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. There can be 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. Neither the TSX Venture Exchange nor the TSX any accept responsibility for the adequacy or accuracy of this press release. Contacts: For further information about Capstone, please contact: Darren Pylot President & CEO (604) 684-8894 or 1-866-684-8894 Capstone Mining Corp. Chris Tomanik or Mark Patchett (604) 684-8894 or 1-866-684-8894 (604) 688-2180 (FAX) Email: Website: For further information about Sherwood, please contact: Stephen Quin President & CEO (604) 687-7545 or 1-888-338-2200 Sherwood Copper Corporation Neil MacRae (604) 687-7545 or 1-888-338-2200 (604) 689-5041 (FAX) Email: Website: