El Capitan Precious Metals, Inc. (OTCBB:ECPN) today announced it will commence on-site mining operations that will separate and sell the iron ore from its New Mexico mine. This bold and strategic step is a result of the impressive results from its refined precious metals recovery process and the opportunity to offset the costs of mining by selling the high-quality iron that represents a significant part of the El Capitan ore.

For many years, the presence of iron in the El Capitan ore has presented challenges related to the recovery of the precious metals.

With the goal of transforming that challenge into an advantage for the Company, the ECPN Board embarked on an analysis of a mining operation opportunity that would propel the sale of the property by delivering consistent and repeatable proof-of-recovery data for prospective buyers. The plan is to separate and sell the high-quality iron from the El Capitan ore and use the proceeds of the iron-ore sales to offset the expense of the mining operations and generate cash flow for the Company.

According to Board Chairman John F. Stapleton, "We will literally turn a challenge into a significant economic advantage in the overall mining and recovery process by separating and selling the iron."

In its efforts to find a contract miner, the Company has entered into a dialogue with two of the world's largest mining and logistics companies. The proposal that is being discussed would have one of the mining companies perform all mining, crushing, separation, and pelletizing activity, and leave the stockpiled, non-ferrous material which has been separated from the iron on the El Capitan property. It is this material that El Capitan would further crush and concentrate. The proposal includes payments to El Capitan for the sale of the iron which would offset the expense of mining operations and generate cash flow for the Company. The mining company would provide capital, capital equipment, labor, and mining to support this result. The 5-Acre Small Mining Permit that the Company holds can be moved as the mining plan dictates.

Stapleton stated that it is imperative to emphasize the fact that the mining operation is a decisive step in support of the Company's strategic goal: THE SALE OF THE EL CAPITAN PROPERTY.

There are two significant points related to the caustic-chemical-free separation and recovery method that the Company will employ: The results of this recovery method are five to six times better than the yields recently experienced in the cyanide testing. And, more importantly, the recovery costs are under $450 per ounce of gold equivalent.

"An especially positive aspect of this newly-enhanced precious metals recovery process is that it does not use cyanide or any other caustic chemicals," stated Chuck Mottley, President and CEO of El Capitan. This fact, coupled with the significantly higher yields and lower costs of recovery, which represents what the Company believes will be a compelling--and profitable--value proposition to prospective buyers.

A complete ECPN Year-End Update can be found on the El Capitan website--www.elcapitanpmi.com--in the Business Updates section.

About El Capitan Precious Metals, Inc.:

El Capitan Precious Metals, Inc. is an exploration stage precious minerals company based in Scottsdale, Arizona that is principally engaged in the exploration of precious metals and other minerals. The Company's primary asset is its wholly owned subsidiary El Capitan, Ltd., an Arizona corporation, which holds the 100% equity interest in the El Capitan property located near Capitan, New Mexico. www.elcapitanpmi.com

Forward-Looking Safe Harbor Statement:

The statements included in this press release concerning predictions of economic performance and management's plans and objectives constitute forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Forward-looking statements are statements that are not historical facts. Words such as "expect(s)," "feel(s)," "believe(s)," "will," "may," "anticipate(s)" and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements regarding the expected completion, timing and results of metallurgical testing, interpretation of drill results, the geology, grade and continuity of mineral deposits, results of initial feasibility, pre-feasibility and feasibility studies and expectations with respect to the engaging in strategic transactions. All of such statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Specifically, there can be no assurance regarding the timing and terms of any transaction involving the Company or its El Capitan property, or that such a transaction will be completed at all. In addition, there can be no assurance that periodic updates to the Company's geological technical reports will support the Company's prior claims regarding the metallurgical value and make-up of the ore on the New Mexico property. Additional risks and uncertainties affecting the Company include, but are not limited to, the possibility that future exploration, development, testing or mining results will not be consistent with past results and/or the Company's expectations; discrepancies between different types of testing methods, some or all of which may not be industry standard; the ability to mine precious and other minerals on a cost effective basis; the Company's ability to successfully complete contracts for the sale of its products; fluctuations in world market prices for the Company's products; the Company's ability to obtain and maintain regulatory approvals; the Company's ability to obtain financing for continued operations and/or the commencement of mining activities on satisfactory terms; the Company's ability to enter into and meet all the conditions to consummate contracts to sell its mining properties that it chooses to list for sale; and other risks and uncertainties described in the Company's filings from time to time with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.

El Capitan Precious Metals, Inc.
Frank Capilla, Investor Relations
480-440-1449