Early Warning Press Release

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, May 27, 2021 /CNW/ - Kores Canada Corp. ("Kores Canada") announces that it has entered into a purchase and sale agreement (the "Purchase Agreement") dated May 27, 2021 with Scotia Capital Inc. ("Scotiabank") pursuant to which Kores Canada agreed to sell, and Scotiabank agreed to purchase, 40,198,632 common shares ("Common Shares") of Capstone Mining Corp. ("Capstone") for resale on a bought deal basis, on and subject to the terms and conditions set forth in the Purchase Agreement (the "Disposition"). The consideration for the Common Shares consists of cash in the aggregate amount of C$213,454,735.92 (C$5.31 per Common Share).

Immediately prior to the closing of the Disposition, Kores Canada will have beneficial ownership of, or control and direction over, 40,198,632 Common Shares of Capstone, representing approximately 9.81% of Capstone's issued and outstanding Common Shares. Immediately following the closing of the Disposition, Kores Canada will not have beneficial ownership of, or control or direction over, any of Capstone's issued and outstanding Common Shares.

Kores Canada is proceeding with the Disposition for the purposes of investment portfolio management. In accordance with applicable securities laws, Kores Canada may, from time to time and at any time, acquire Common Shares and/or additional other equity, debt or other securities or instruments (collectively, "Securities") of Capstone in the open market or otherwise, and reserves the right to dispose of any or all of its Securities in the open market or otherwise at any time and from time to time, and to engage in similar transactions with respect to the Securities, the whole depending on market conditions, the business and prospects of Capstone and other relevant factors.

A copy of the early warning report to be filed by Kores Canada in connection with the transaction described above will be available on SEDAR. A copy may also be obtained by contacting Nahee Go at the number below. The head office of Kores Canada is located at 3081 3rd Avenue, Whitehorse, YT, Y1A 4Z7.

This press release does not constitute an offer to sell or solicitation of an offer to buy any securities of Capstone in any jurisdiction in which such offer or solicitation of sale would be unlawful. These securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws and may not be offered or sold in the United States except pursuant to an exemption under the U.S. Securities Act and applicable U.S. state securities laws.

SOURCE Kores Canada Corp.

Nahee Go, Tel: [phone]