ECPN Makes Preparations to Sell the El Capitan Property

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--El Capitan Precious Metals, Inc. (OTCBB:ECPN) has sent the following letter to shareholders:

Dear Shareholders,

The purpose of this letter is to give our shareholders an update on our progress toward selling the El Capitan property to a major mining company. The Company, through its private placement offering of $1.5 million, has raised the funds to complete the necessary steps in completing the development of the recovery processes and assay procedures in order to be in a position to effect a sale.

The remaining two goals of management have been to complete the development of the recovery processes for the complex ore at El Capitan and to determine the cost of those processes. We are very close to completion of these tasks. At that point the Company will forward the information to an investment bank who will be responsible for marketing our property.

This past March the Company contracted with Planet Resource Recovery, Inc. to have them build a plant to recover precious metals from concentrates made from the El Capitan head ore. The concentrates were shipped to them several months ago. We expect notification from them as to the timing of commencing their production.

On May 12, 2010, we reported that Planet ran 110 assays which showed an average of 0.355 of gold equivalent. In addition, the Company’s own assay work done on the El Capitan concentrates has consistently shown very high results. The concentrates sent to Planet are approximately a 10-to-1 ratio. Therefore, based on Planet’s previous assays, we would expect the recovery from the concentrates to show approximately 10 times the values of the head ore which computes to somewhere in the range of 3.5 ounces of gold equivalent per ton.

Six months ago the Company started another project using experienced chemists and metallurgists to work on developing the recovery process and assays. That team now consists of seven professionals. The team has recovered good values by obtaining “metal in hand” which indicates the El Capitan ore to be of commercial grade. Meanwhile they continue to improve on the processes which show increasing values. We expect to announce those results in the next few weeks.

The research team has developed four different recovery processes and they are finalizing the most productive and the most cost-efficient process. When that is completed they will start assaying the 230 representative samples from ECPN’s original drilling program.

To summarize, as soon as the Company has completed the development of the recovery processes and assay procedures, along with determining the associated costs, we will be in a position to go forward with the sale of the El Capitan Property.

Sincerely,

Chuck Mottley

President/CEO

About El Capitan Precious Metals, Inc. El Capitan Precious Metals, Inc. is completing a merger which will provide the Company with 100% interest in the El Capitan property located near Capitan, New Mexico, as well as a joint venture and 20% ownership of 13 mining claims and other assets known as the C.O.D. mine located near Kingman, Arizona...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. This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, among others, the 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 the possibility that future exploration, development 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 iron ore and other products; fluctuations in world market prices for the Company’s products; the Company’s ability to obtain or maintain regulatory approvals; the Company’s ability to obtain financing for the commencement of mining activities on satisfactory terms; the Company’s ability to obtain necessary financing; the Company’s ability to enter into and meet all the conditions to close 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. The Company disclaims any obligation to update its forward-looking statements.