Capitan Mining Inc. announced that it has executed an option agreement with Minera Fresnillo S. A. de C. V., to acquire a 100% interest for the mineral rights to a key property at the Cruz de Plata Project. The new property blocks comprise a strategic, 261.42-hectare area that allows for the creation of a contiguous property package from the Capitan Hill /Jesus Maria targets to the San Rafael target, at the Cruz de Plata project. Additionally, these new concessions provide additional exploration targets related to and including: The on-strike extension of the Jesus Maria and JM North targets to the east and northeast; The San Rafael and El Tubo targets to the west and southwest; The El Refugio and Santa Teresa Veins.

With this addition, the Cruz de Plata high-grade silver trend now covers a total strike length of approximately 2.5Km from JM South - recently identified underneath the Capitan gold zone - to the San Rafael zone. The new blocks also contain significant surface exploration work, historic workings, and approximately 2,000 meters of historic drilling in five (5) diamond drill holes. These drillholes returned significant silver mineralization along the El Refugio target and at depth, which is interpreted to be the potential on-strike extension of the Jesus Maria Vein.

Terms of the Option agreement are as follows: 1. 3-year Exploration agreement with option to acquire 100% interest in the Casco U, Exp.2/5-0386 block; 2. Total payable amount of USD 1.0 million over the three-year period; 3. 1% NSR which can be bought for a total of USD 1.0 million up to 10 years from acquiring 100% of the rights; 4. No exploration expenditure commitment other than that needed to keep property in good standing.