Coastport Capital Inc.
TSX VENTURE : CPP
FRANKFURT : C1J

Coastport Capital Inc.

March 12, 2007 16:40 ET

Coastport Provides Shyri Update-Project Operator Cornerstone Proposes a 15,000 Metre Drill Program

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 12, 2007) - Coastport Capital Inc. (TSX VENTURE:CPP) (FRANKFURT:C1J) provides an update on exploration activities at the 454 km2 Shyri Project in Azuay Province, Ecuador. The project is being explored under a joint venture agreement with Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) who is the operator of the field program in Ecuador.

Cornerstone reports that the ongoing systematic exploration program at Shyri is focused on Gama, Canaribamba and Vetas Grandes. The program comprises detailed mapping, prospecting, trenching and both ground geophysical and soil geochemical surveys. Initial stage work is also underway at the Yanasacha prospect. To date, 6,000 soil samples, 6,000 rock samples, and 100 line-km of IP and magnetic geophysics data have been collected. An IP geophysical survey is currently underway at Gama over a 5 km by 5 km grid. An airborne magnetic and EM survey over the northern half of the Shyri property is planned to begin after the rainy season ends in April.

Cornerstone has proposed a 15,000 m diamond drill program that, subject to Coastport Capital approval, is expected to commence in the 2nd quarter of 2007 to test targets at Gama, Canaribamba and Vetas Grandes. The timing of the start up of the drill program is subject to completion of field surveys and receipt of drill permits which are presently under application.

Highlights of work to date at Shyri are summarized below. Locations and features discussed here are shown on a series of maps and figures that have been posted to the Coastport website at www.coastportcapital.com to accompany this press release.

Gama

Gama is a high sulphidation epithermal gold prospect exposed over 4 km (Ermitas and Boqueron zones) along the edge of a broad plateau with additional exposure (Pimo Ledge zone) of 1.5 km in a second near-by location. Both of these occurrences dip shallowly into the hillside. In typical high sulphidation ore deposits, the observed alteration and mineralization is proximal to ore-grade mineralization. The closest analogy is IAMGOLD's 3.5 million ounce Quimsacocha gold deposit located 15 km east-southeast of Gama. The Boqueron zone is interpreted as an extensive, gently south-dipping, lithologically controlled zone of quartz-alunite (advanced argillic) alteration. At Pimo Ledge, quartz-alunite alteration outcrops along the same slope a further 3 km to the southwest and is exposed there over a distance of 1.5 km. Sub-vertical zones of siliceous alteration and mineralized breccia also occur along the erosional slope and on the adjacent plateau and are considered to be hydrothermal conduits. The observed alteration occurs consistently at elevations between 3,500 m and 3,800 m suggesting that the alteration interpreted to be present below the plateau will be at depths between 200 m and 300 m from surface. It is important to note that the Quimsacocha deposit occurs at an elevation of approximately 3,600 m at approximately 200 m below surface. The target of exploration is mineralized silicic alteration below the plateau, similar to Quimsacocha. Subject to completion of the field programs and receipt of drill permits, an 8,000 m drill program is proposed by Cornerstone.

The Ermitas breccia is interpreted to be a late hydrothermal breccia located on the plateau above the Boqueron zone containing abundant silicic fragments, locally with pyrite-enargite mineralization. A previously reported grade of 3.0 g/t Au was returned from an individual mineralized clast. An individual grade of 5.7 g/t Au was returned from the matrix of the breccia. It is interpreted that the breccia has sampled and carried mineralization from shallow depth. These grades indicate potential for discovery of a buried gold mineralized, sulphide-bearing silicic zone associated with the broader quartz-alunite alteration below the plateau, typical of high sulphidation deposits, including Quimsacocha.

Cornerstone reports that two new channel samples from quartz veins recently discovered approximately 2 km north of Pimo Ledge assayed 8.9 g/t Au and 1,216 g/t Ag over 0.8 m and 7.1 g/t Au and 626 g/t Ag over 2.0 m . The channels samples were taken orthogonally to the vein orientation. The relationship of these veins to the overlying Gama prospect is not yet understood. They occur at an elevation of 3,100 m, have a magmatic type geochemistry and are associated with a recently identified altered intrusive with evidence of porphyry style alteration and copper-molybdenum mineralization.

Soil geochemical and IP geophysical surveys are ongoing in the Gama area. A total of 1,530 soil samples have been collected to date at 50 m intervals on 50 m to 100 m spaced lines over an area of 2.5 km by 2.5 km. The soil geochemical results to date indicate two broad zones (approximately 1.0 km by 0.5 km) of elevated gold values (greater than 11 ppb Au; 75th percentile) associated with the Gama alteration zone below an elevation of 3,800 m (below the top of the quartz-alunite alteration zone). These broad zones host several anomalies (greater than or equal to 77 ppb Au; 98th percentile). A discrete zone of elevated and anomalous gold-in-soils occurs over an area of 0.6 km by 0.2 km associated with the Ermita breccia, approximately 500 m east-northeast of the more extensive anomalies associated with the Gama alteration. Cornerstone reports that individual spot highs are recorded as high as 803 ppb Au. The results of a recently started IP geophysical survey will be reported when available.

Canaribamba

Canaribamba is a mineralized vein, stockwork and breccia system hosted within a 5.5 km2 polyphase diatreme breccia and adjacent volcanics. The system is comprised of two main prospect areas, 3 km apart. Subject to final data analysis and permitting, 3,500 m of drilling is proposed by Cornerstone on Canaribamba.

The northern area covers 0.7 km2 and comprises four vein-type occurrences typified by rock chip and channel samples that returned elevated Au grades above 10 g/t Au, as previously reported. These occurrences, named Pinglio, Guabisay, Alberto and Ramos Potrero are exposed in several small windows through cover. Within this area, a total of 1,556 individual rock grab, outcrop chip and channel samples, returned an average grade of 0.97 g/t Au. Cut to 10 g/t Au the average is 0.38 g/t Au. These vein systems trend north-northwest across an area 500 m in width East-West and 300 m vertically, from the Pinglio stockwork through the Alberto vein down to the Guabisay and Ramos Potrero veins and breccias.

The Pinglio prospect occurs at the highest elevation and consists of a north-northwest trending, 400 m long by 130 m wide stockwork of quartz veins within extensive quartz-illite-pyrite alteration (QIP). A total of 604 rock chip samples collected assayed an average of 0.65 g/t Au, including 48 samples greater than 1 g/t Au; with 6 samples greater than 10 g/t Au. Cut to 10 g/t Au, the average is 0.41 g/t Au. These samples were collected over a uniform distribution across the entire width of the zone, from a series of 42 artisanal tunnels and several hand dug trenches of vein and adjacent wallrock material. However, chip samples over 0.1 m to 0.5 m of individual veins have assayed up to 57.3 g/t Au.

The Guabisay system, 300 m lower in elevation and 500 m east of Pinglio, is exposed over a horizontal distance of 750 m and consists of extensive quartz-illite-pyrite (QIP) alteration that hosts numerous veins and breccias. Saw-cut channel samples were collected across the strike of the mineralization, approximately every 15-20 m or where possible. Channel sampling results are variable and range from nil to a high value of 32.2 g/t Au and 41 g/t Ag over 4.4 m. Selected previously reported highlights from Guabisay are listed below:



Guabisay (Canaribamba) saw-cut channel sampling highlights:
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Width (m) Au (g/t) Ag (g/t)
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4.4 32.2 41
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incl
1.1 85.8 67
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3.2 10.9 9
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4.0 4.1 29
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1.9 6.1 41
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2.3 8.2 47
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3.0 6.3 4
------------------------------
4.0 4.1 29
------------------------------


At the Gringo prospect, 3 km to the south, extensive QIP alteration and adularia flooding are associated with veins occurring over a north-south strike of more than 1 km from which selected samples returned assays of greater than 10 g/t Au. Select saw-cut channel samples of altered diatreme outcrops have assayed 8.1 g/t Au over 2.0 m, and 2.4 g/t Au and 22.5 g/t Ag over 4.4 m. Closely associated with the alteration, select grab samples collected over a 400 m by 100 m area of similar quartz vein float assayed 28.7 to 600.0 g/t Au.

This style of alteration and mineralization, hosted by a diatreme complex and occurring over a significant vertical interval, is typical of diatreme-hosted, intermediate sulphidation mineralized systems which include Rosia Montana, Romania (greater than 10 million oz Au) and Kelian, Indonesia (greater than 8 million oz Au). Further detailed alteration mapping, trenching and sampling will be done to refine this working analogy and in preparation for drilling.

Vetas Grandes

The Vetas Grandes prospect, where approximately 3,500 m of drilling is proposed by Cornerstone, comprises several 1.0 m to 7.0 m wide epithermal quartz veins and quartz vein/vein breccias forming a 500 m wide by 1.5 km long east-northeast trending swarm that is exposed over a vertical interval of 350 m. The Masucay, Medina and Wilson Veins are the main targets. Previously reported systematic saw-cut channel sampling across the vein along 100 to 150 m long sections of the veins has returned elevated gold values. Individual channel samples were collected every 10-20 m or where possible. The channel sample results are variable, and gold and silver values range from nil to a high value of 53.4 g/t Au and 641 g/t Ag over 3.4 m. Selected previously reported highlights are presented in the table below:



Vetas Grandes saw-cut channel sampling highlights:
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Target Width (m) Au (g/t) Ag (g/t)
--------------------------------------------
Masucay Vein 3.4 53.4 641
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1.0 25.2 40
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1.3 27.0 965
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0.6 194.6 2294
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3.6 0.9 64
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Wilson Vein 4.3 5.6 241
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2.0 3.9 443
--------------------------------------------
Incl 1.0 7.5 859
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2.6 2.8 235
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2.0 2.5 111
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Medina Vein 1.4 13.4 258
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1.65 3.3 259
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1.45 3.6 230
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1.1 1.3 1994
--------------------------------------------


The vein systems comprise three major, east-northeast trending vein/vein breccias, each with minimum strike of 1.4 km. They are intersected by several transverse, northeast trending veins. The highest grades occur at or adjacent to these vein intersections, where they also exhibit classic vein textures such as colliform and crustiform banding, and silica replacement of bladed calcite, that are typically associated with ore grade mineralization in known epithermal gold deposits. These textures are also indicative of a shallow depth of erosion, suggesting that the system is largely preserved. These intersections are interpreted as potential mineralized shoots, and will be the primary target of drilling. A 2.0 km by 2.0 km grid soil survey and an IP/magnetic geophysical survey have also been completed over this area to assist in drill targeting.

Yanasacha

The Yanasacha prospect occurs in the northeast portion of the Shyri project area, approximately 9 km northeast of Quimsacocha. At this stage it is the least explored of the four main prospects. It comprises two distinct shallowly dipping, lithologically controlled silicic alteration zones (or lithocaps) at 3,300 m and 3,500 m elevation. These are associated with near-vertical silicic ribs that define feeders to these silicic lithocap zones. Limited rock sampling has returned maximum values of 1.1 g/t Au and 14 g/t Ag from the silicic alteration. A soil survey over an area of 1.6 km by 2.2 km has identified a 1.4 km by 1.5 km circular zone defined by greater than 10 ppb Au and contains 4 anomalies greater than 26 ppb Au (95th percentile) including 15 samples with greater than 50 ppb Au. Individual soil values returned up to 328 ppb Au.

Summary

In summary, extensive detailed, systematic exploration has been conducted over the past 18 months on the Shyri project, which started as a grassroots project that had seen little previous systematic exploration. Since acquisition mid-2005, however, Cornerstone has documented an inventory of epithermal prospects, three of which are proposed to be drill-tested this year. The objective of the Shyri exploration effort is to target areas with multi-million ounce gold potential.

All rock samples reported in this release were collected by Cornerstone personnel, sealed on the property and shipped to Acme Laboratories in Cuenca, Ecuador, where they were prepared for analysis. Pulps were shipped to Vancouver for analysis of gold and trace elements by a hot multi-acid digestion and ICP/ES analysis of a 15 gram sample. Samples containing gold greater than 1 g/t and silver greater than 100 g/t are reanalyzed by a 1 ton fire assay with an ICP/ES finish. All soil samples were collected by Cornerstone personnel, sealed on the property and shipped to Acme Laboratories in Cuenca, Ecuador, where they were prepared for analysis by multi-element ICP. Quality control was maintained throughout the program by implementation of procedures involving check assaying and insertion of previously prepared standards, blanks and duplicates for each batch of 20 samples analyzed.

Coastport Capital Inc. (TSX VENTURE:CPP) has an option to acquire a 100% interest in the Shyri property by:

1) expending US$8 million to fund all exploration programs and making option payments to Cornerstone of US$490,000 in cash and US$490,000 cash equivalent in shares, all over a period of 4 years or less; and

2) upon meeting the requirements of 1), by issuing shares to Cornerstone equal to 40% of Coastport's fully diluted share capital and granting Cornerstone a 1% net smelter royalty. Cornerstone is the operator until earn-in.

Mike Basha, P.Eng., P.Geo., Vice President of Exploration for Cornerstone, is the Qualified Person responsible for the technical information in this news release, as defined by National Instrument 43-101. George Smith, MA, is supervising field programs in Ecuador for Cornerstone.

On Behalf of the Board,

David Patterson, President, Coastport Capital Inc.

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

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