Cornerstone Capital Resources Inc.

Cornerstone Capital Resources Inc.

June 02, 2006 15:00 ET

Cornerstone Private Placement Completed

MOUNT PEARL, NEWFOUNDLAND--(CCNMatthews - June 2, 2006) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) (FWB:GWN) (BERLIN:GWN) confirms completion of the private placement announced April 25, 2006. The company is pleased to announce that the offering was fully subscribed for total proceeds of $2.6 million.

The financing consisted of a non-brokered private placement of 4,000,000 units. Each unit was priced at $0.65 per unit and consisted of one common share and one share purchase warrant entitling the holder to purchase one additional common share at a price of $0.80 for one year following the closing and at a price of $1.10 for the second year following the closing.

A finder's fee of 8% was payable in cash or, at the election of the finder, in units. Finders will also receive 10% broker warrants.

All shares issued pursuant to the placement will bear a legend restricting transfer until September 26, 2006.

Participants in the private placement include senior industry letter writers, leading brokerage houses and their principals, institutional funds and sophisticated private investors. Approximately 60% of the investment was made by funds that are new shareholders. The balance came primarily from Western Canadian investors. Cornerstone wishes to welcome the new shareholders and to express appreciation to all shareholders for their continued trust and confidence.

The proceeds of the issuance will be used to advance existing properties, to generate and acquire new exploration properties and to provide working capital to the Corporation.

In addition to the proceeds from the private placement, as at May 31, 2006 the Company had received $3.4 million from the exercise of 8.5 million warrants and $0.5 million from the exercise of 1.7 million options. The net cash position of the Company as at May 31, 2006 was $7.4 million.

On May 19, 2006 the Company issued 1,599,000 options to insiders to purchase shares in Cornerstone. The pricing and expiry of the options are as per company policy and as permitted by the TSX Venture Exchange.

On May 26, 2006 the Company's redesigned website was launched.

On Behalf of the Board,
Glen H. McKay

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

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