Capstone released another batch of in-fill results from its undeveloped Kutcho project in B.C. The highlighthole was 6.2% Cu, 11.7% Zn, 1.1 g/t Au, and 68.5 g/t Ag over 10.2 m in the Esso deposit, which represents the highest grade
hole ever drilled at Kutcho. A new resource estimate for Kutcho is anticipated by the end of December. The higher-grade
mineralization will help the economics of this project. A Bay Street analyst commented that the Street has, for the most part,
also attributed minimal value for Kutcho, which suggests there is likely upside to valuation if this project continues to move
forward with improved economics. Separately, Nevada Copper announced that Pala Investment Holdings has increased its
ownership stake in the company to 29.1% (from 19.1%) via a private placement. With Pala effectively taking control of Nevada
Copper, speculation is likely to increase again that Pala could try and influence a merger of Capstone and Nevada Copper. As a
reminder, Pala is also the largest shareholder of Capstone with a 17.6% stake. Capstone is the second largest shareholder of
Nevada Copper with a 9.9% stake (prior to the new private placement by Pala). Nevada Copper owns 100% of the Pumpkin
Hollow Copper Development Property in the Walker Lane mineralized belt of Western Nevada. It is an advanced development
stage copper property, which contains Measured and Indicated resources totalling 5.6 billion pounds of copper plus additional
Inferred resources of 3.7 billion pounds of copper (all using a 0.2% copper cutoff grade). Capstone is one of Canaccord
Genuity’s top copper picks based on the company’s attractive relative valuation, strong balance sheet, low risk profile, and
significant exploration upside.