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ECPN News El Capitan President/CEO Distributes Newsletter

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--El Capitan Precious Metals, Inc. (OTCBB:ECPN) provides a newsletter from the Company President/CEO.

October 24, 2006

Dear ECPN Shareholders:

I want to take this opportunity to give you an update on the status of your Company. There are many projects currently being undertaken by the Company at this time and it is important to understand how they interconnect.

The following list is not necessarily in order of importance or timing:

  1.  The Company is in process of receiving commitments to receive
      approximately $1,400,000 in working capital funds by the end of
      October.  These funds are primarily being provided from
      shareholders voluntarily exercising their warrants.  The funding
      will provide the Company with operating capital for continuing
      operating expenses as well as the funding for the extended
      drilling program.
  2.  Discussions directed at possibly combining El Capitan Precious
      Metals, Inc. and Gold and Minerals, Inc. is continuing.  The
      timing on a business combination will depend on securing an
      audit of Gold and Minerals, Inc.  The structure of the
      transaction will be guided by Houlihan Lokey Howard & Zukin, the
      Company's financial advisor.
  3.  The Company has applied for listing on the American Stock
      Exchange.  There are several sets of criteria to accomplish
      this. The one we will most likely use will require our stock to
      be above $2.00 per share for thirty consecutive days.
  4.  The assays of the remaining 7,500 feet of drilling are in the
      process of being completed.  When they are finished it is
      expected that the tonnage numbers will be updated.  This will be
      incremental to what has already been published.
  5.  The Company continues to fund exploration and development
      drilling for resource expansion and definition.  Specifically
      there will be a dual purpose drilling program started the week
      of October 23rd of this year.  The purposes are:
      A.  To drill two areas of outcropping mineralization, similar to
          the gold-platinum mineralization in the El Capitan property,
          that is located approximately one mile to the west-southwest
          and one mile to the east-southeast of the property. These
          locations were originally identified as hyperspectral survey
          anomalies. Subsequent field examination, sampling and fusion
          assaying resulted in gold and platinum values comparable to
          those considered potentially ore grade in the El Capitan
          property.
      B.  To continue drilling to the west of the El Capitan property
          until the boundaries of mineralization are found. The Stage
          1 and 2 drilling program, consisting of approximately 12,500
          feet of drilling, was performed on approximately 75 acres.
          The two anomalies are located within a three square mile
          area surrounding the El Capitan property which was
          recommended for Priority #1 exploration by the Company's
          consulting geologist, Dr. Clyde Smith.  The Company has
          claims on this approximately 2,000 acres.
  6.  The ongoing metallurgical research work that was mentioned in
      the 22-Jun-2006 news release began in late August and continues
      at this time.  Management remains pleased with the direction of
      this effort to better understand the complex metallurgy of this
      mineralization, and have received no disappointing feedback from
      either the research lab or the Company's consultants directing
      this project.  In addition to the goal of producing a dore that
      will more accurately reflect the total metal content of the ore,
      the effort is producing valuable metallurgical information that
      can be used in the development of a pilot plant process flow
      sheet.  As always, Management intends to release material
      results as soon as they are available and verified.

As detailed in the aforementioned points, there are several initiatives that should have an influence on the growth in value of our Company. We intend to update our shareholders on each of these initiatives as material developments arise.

I continue to be very pleased at the progress towards both the Company’s short and long term goals. The time frame for completing some of these projects is taking a significantly longer period of time than originally anticipated, but I am confident that completion and results of these projects hold a potential upside for the Company and our shareholders.

Sincerely,

Charles C. Mottley

President/CEO

El Capitan Precious Metals, Inc. is an exploration stage company that owns a 40% 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. In addition, the Company owns 100% of the contractual rights of the Weaver mine, near Phoenix, 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 arrange transportation from its mining properties to ocean ports on satisfactory terms; 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.