Cornerstone Capital Resources Inc.

Cornerstone Capital Resources Inc.

January 29, 2007 08:00 ET

Cornerstone Announces Joint Venture with Cash Minerals on the Aillik Uranium Project, Central Mineral Belt, Labrador and Stakes New Uranium Project in the Deer Lake Basin

MOUNT PEARL, NEWFOUNDLAND--(CCNMatthews - Jan. 29, 2007) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) (FWB:GWN) (BERLIN:GWN) (PINK SHEETS:CTNXF) today announced the signing of a Letter of Intent with Cash Minerals Ltd. (TSXV-CHX) to enter into a joint venture agreement on Cornerstone's 100% wholly owned Aillik uranium property in the Central Mineral Belt (CMB), Labrador. Cornerstone staked the Aillik claims in November 2006 after the land was opened for staking following implementation of the Nunatsiavut land claims agreement

The Aillik property comprises 162 claims (40.5 km2) adjoining Aurora Energy Resources' (TSXV-AXU) holdings in the CMB, an emerging uranium district with reported uranium resources of approximately 35 million pounds The Aillik Property is 27 km west of Aurora's Michelin property, which Aurora reported hosts a Measured and Indicated Resource of 22.2 million pounds U3O8 with an Inferred Resource of 13.4 million pounds

The CMB contains several uranium deposits and prospects including the Otter Lake prospect, which lies immediately west of the Aillik claims, and the Jacques Lake prospect to the north. Intersections from 2006 exploration drilling by Aurora at Otter Lake included 1.0% U3O8 over 0.5 metres and 0.14% U3O8 over 1.0 metre. The White Bear Lake property further west of Otter Lake yielded a 2006 drill hole intersection of 0.25% U3O8 over 15 metres. Jacques Lake yielded 2006 drill hole intersections of 0.16% U3O8 over 17.13 metres and 0.18% over 10.00 metres. On January 11, 2007, Aurora announced that it will be updating its NI 43-101 compliant resources for the Michelin and Jacques Lake deposits in the upcoming weeks.

The Aillik Property is interpreted by the Geological Survey of Newfoundland and Labrador to be underlain by the same, or similar, package of rocks that hosts the Michelin and Jacques Lake deposits, as well as the White Bear Lake and Otter Lake uranium systems. The Aillik property lies on trend and immediately west of the Otter Lake uranium system and its associated radiometric anomaly. Occurring in similar geological formations, immediately along trend from a known uraniferous system makes Aillik highly prospective for the discovery of new uranium mineralization.

The Joint Venture agreement to be concluded as per the Letter of Intent will give Cash Minerals the right to earn a 51% interest in the Aillik property by spending $3 million on exploration and paying Cornerstone a total of $300,000 cash and issuing 300,000 stock warrants to Cornerstone over a four-year period. Cash Minerals will be the operator during the earn-in period.

The 2007 exploration program at Aillik includes a firm commitment by Cash to conduct an extensive airborne radiometric geophysical survey of the property. Radiometric geophysical surveys have proven to be highly effective in uranium exploration, including the CMB.

In other news, Cornerstone has initiated a new uranium exploration project by staking 420 claims (105 km2) in the Deer Lake Basin of western Newfoundland. The Deer Lake Uranium project area is underlain by Carboniferous age siliciclastic rocks that have demonstrated uranium potential, as evidenced by results obtained from other companies active in the area, such as Altius Resources Inc. and Spruce Ridge Resources Ltd. Spruce Ridge has reported high grade uranium mineralization over significant distance with values of 3.73% U3O8 This newly acquired project area has elevated uranium in lake sediments (up to 17.9 ppm U), unsourced historical airborne gamma-ray spectrometry anomalies, and several elevated bedrock uranium mineral occurrences. Cornerstone will be seeking a joint venture partner for this project.

In announcing these developments, Glen McKay, Cornerstone's President and CEO, said: "We are very pleased to have attracted such a capable and respected company as Cash Minerals to partner with us on Aillik, our first uranium project. The addition of the Deer Lake project is a significant step in building a more comprehensive uranium exploration program and we will be looking for opportunities to build the program further with additional properties and partners."

Mike Basha, PEng. PGeo. Vice President, Exploration for Cornerstone is the Qualified Person, as per National Instrument 43-101, responsible for the information in this news release.

Cornerstone is also pleased to announce the appointments of Mr. George Smith, MSc, as Chief Geologist for the Cornerstone Group and VP Exploration, Cornerstone Ecuador S.A. George has worked with Cornerstone as a consultant since 2003 and brings over 30 years experience in international gold and base metals exploration. Cornerstone is also pleased to announce the appointment of Mr. Bruce Mitton, PGeo, as Exploration Manager, Canada. Bruce has been with Cornerstone since 2004 and brings over 20 years experience in base metals and gold exploration, and project management throughout Canada.

Cornerstone's business model is predicated on generating high quality exploration projects which have the potential to yield outstanding returns to the company and its shareholders and which can be financed through joint venture partnerships. Cornerstone's current and past joint venture partners include Agnico-Eagle Mines, Candente Resource Corp., Cash Minerals, Celtic Minerals, Coastport Capital, Cogitore Resources, Falconbridge, Inmet Mining, Kermode Resources, Moydow Mines, Noranda, Phelps Dodge, and Thundermin Resources.

On Behalf of the Board,

Glen H. McKay, President & CEO

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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