Passport Management, LLC confirms its control over 10.86% of the common shares of Capstone Mining Corp.



    TORONTO, Oct. 30 /CNW/ - PASSPORT MANAGEMENT, LLC ("Passport") announced
today that it has filed an early warning report with the Canadian securities
regulatory authorities confirming its control over 8,930,466 Common Shares of
Capstone Mining Corp. ("Capstone") (TSX: CS), representing 10.86% of the
82,256,676 Common Shares of Capstone referred to as being issued and
outstanding as stated in section 4.3 of the Combination Agreement among
Capstone, 7045204 Canada Inc., and Sherwood Copper Corporation dated as of
October 9, 2008.
    Passport acquired control of over 10% of Capstone's issued and
outstanding Common Shares on October 22, 2008. Prior to October 22, 2008,
Passport controlled 8,135,466 Common Shares, representing 9.89% of the
82,256,676 Common Shares referred to as being issued and outstanding at such
time in section 4.3 of the Combination Agreement. On October 22, 2008,
Passport Special Opportunities Master Fund, LP purchased a total of 206,000
Common Shares of Capstone on the Toronto Stock Exchange, 100,000 of which were
for a price of $0.96 per share and 106,000 for a price of $0.93 per share.
Following such purchases, Passport controlled 8,341,466 Common Shares of
Capstone, representing 10.14% of Capstone's issued and outstanding Common
Shares at such time.
    Passport is an investment manager with full investment discretion with
regards to various investment funds, including Passport Global Master Fund SPC
Ltd., Passport Materials Master Fund, LP and Passport Special Opportunities
Master Fund, LP (collectively, the "Funds"). As such, Passport controls the
8,930,466 Common Shares of Capstone that are beneficially owned by the Funds
as follows: Passport Global Master Fund SPC Ltd. (5,230,300 Common Shares),
Passport Materials Master Fund, LP (1,516,500 Common Shares), and Passport
Special Opportunities Master Fund, LP (2,183,666 Common Shares). All of the
Common Shares of Capstone purchased by Passport on behalf of the Funds were
purchased through open market transactions on the Toronto Stock Exchange, with
the exception of 953,000 Common Shares that were purchased in December 2004 in
a private placement transaction, and 476,500 Common Shares that were acquired
through exercise of common share purchase warrants that were initially
purchased in the same December 2004 private placement transaction. Further
information regarding Passport's control of securities of Capstone has been
made available on the System for Electronic Disclosure by Insiders (SEDI) at
www.sedi.ca.
    Passport has purchased Common Shares of Capstone on behalf of the Funds
for investment purposes over the past several years, and may acquire or
dispose of additional Common Shares on behalf of the Fund as investment
conditions warrant. Passport continues to monitor its investment strategy as
concerns Capstone and reserves the right to: (i) purchase or otherwise acquire
additional Common Shares of Capstone in the open market, in privately
negotiated transactions or otherwise, and (ii) sell or otherwise dispose of
Common Shares of Capstone in the open market, in privately negotiated
transactions or otherwise.

    Passport Management, LLC is located at 30 Hotaling Place, Ste. 300, San
Francisco, CA 94111.





For further information:

For further information: William Alberti at (415) 694-7567 or
walberti@passportcapital.com


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