Cornerstone Capital Resources Inc.

Cornerstone Capital Resources Inc.

February 16, 2010 08:00 ET

Cornerstone Options Labrador Rare Metals and REE Properties

MOUNT PEARL, NEWFOUNDLAND--(Marketwire - Feb. 16, 2010) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) (FRANKFURT:GWN) (BERLIN:GWN) (PINK SHEETS:CTNXF) announces that it has signed a binding option agreement with Rare Earth Metals Inc. (TSXV-RA) ("Rare Earth") respecting its 155 mineral claims in the Letitia Lake area of central Labrador. Rare Earth will make an initial payment of $10,000 and 20,000 shares and guarantees minimum first year expenditures of $50,000, sufficient to maintain the property in good standing. Thereafter, Rare Earth will make further payments of cash and shares totaling $30,000 and 60,000, respectively over the first two years of the option and incur additional exploration expenditures totaling $300,000 over three years in order to earn a 51% interest in the claims. The parties will then form a joint venture to further explore and develop mineral resources on the property. Rare Earth will operate the exploration programs during the option period in consultation with Cornerstone. The agreement is subject to approval by Rare Earth's board of directors and receipt of regulatory approval.

"We are very pleased to be working with Rare Earth in this potential new REE district," said Colin McKenzie, Cornerstone's President & CEO. "They are well financed and will take an aggressive approach to exploring our property."

The Cornerstone claims cover rare metals (Be, Nb, Zr, Hf, Ta) and REE regional till geochemical anomalies in areas underlain by Middle Mesoproterozoic peralkaline volcanic and intrusive rocks of the Letitia Lake Group and Red Wine Intrusive Suite, respectively. During the 1950's and 1960's, exploration in the Letitia Lake area led to discovery of several Be – Nb ± REE showings including the Mann #1 and Mann #2, Michelin #1 and Two Tom Lake prospects. Recent sampling by Rare Earth has returned assay results up to 4.99% total rare earth oxides (TREO), 0.97% BeO and 2.35% Nb2O5 at the Mann #1 prospect and 3.24% TREO 0.93% BeO and 4.19% Nb2O5 from the Two Tom Lake prospect (see East Energy Corp. news release dated November 06, 2009). While the historic prospects are not located within Cornerstone's claims, the aforementioned till anomalies are considered to be un-sourced and of local derivation.

This press release was prepared by Terry Brace, P.Geo., Cornerstone's VP Exploration and a Qualified Person in accordance with National Instrument 43-101.

Other News

A senior employee was issued 60,000 share purchase options on February 11, 2010 in accordance with the Cornerstone's stock option plan. The exercise price is $0.135 and the options expire February 11, 2015.

About Cornerstone

Cornerstone Capital Resources Inc. is a mineral exploration company based in Mount Pearl, Newfoundland and Labrador, Canada, with a diversified portfolio of projects in Canada and Ecuador and a strong technical team that has proven its ability to identify, acquire and advance properties of merit. The company's business model is based on generating exploration projects whose subsequent development is funded primarily through joint venture partnerships.

Cautionary Notice:

Certain statements contained in this press release may be considered as forward-looking. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results. While Cornerstone anticipates that subsequent events may cause its views to change, it expressly disclaims any obligation to update the Forward-Looking Statements contained herein except where outcomes have varied materially from the original statements.

On Behalf of the Board,

Colin B. McKenzie, President & CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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