Cornerstone Capital Resources Inc.

Cornerstone Capital Resources Inc.

November 02, 2006 16:00 ET

Cornerstone Announces Board and Management Appointments

MOUNT PEARL, NEWFOUNDLAND--(CCNMatthews - Nov. 2, 2006) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) (BERLIN:GWN) (FWB:GWN) today announced the appointment of two additional Directors and changes in management responsibilities.

Joining Cornerstone Capital's Board of Directors are Michael Basha, P. Geo., P. Eng., and David R. Loveys, C.A. In welcoming them to the Board, Chairman John Fleming noted that Mr. Basha and Mr. Loveys are key members of Cornerstone's management team who will now strengthen the Board in strategic areas. Mr. Basha and Mr. Loveys join the Honorable John Crosbie, P.C., O.C., Q.C., Mr. Donald Worth, P. Eng., Mr. Colin McKenzie, P.Geo., Mr. Glen McKay, Mr. W. John Clarke, LL.B., and Mr. John Fleming, P. Geo., in comprising the Board.

Mike Basha is an experienced and respected exploration professional who has directed Cornerstone's exploration program for the past several years, initially as Exploration Manager and, since June 2005, as Vice President Exploration. Mr. Basha personally developed the projects in Ecuador that have become such a vital part of the company's exploration portfolio. His experience includes stints with several companies including Noranda, where he was credited with discovery of the Hammerdown gold deposit in Newfoundland. He has a depth of knowledge and experience in Cornerstone's home base of Newfoundland & Labrador, in other areas of Canada and internationally.

David Loveys has been Cornerstone's Chief Financial Officer since joining the company in June 2005. Mr. Loveys has 25 years experience, primarily with large Canadian publicly traded companies operating in the domestic and international markets, including CHC Helicopter Corporation and the NewTel Group of Companies. Mr. Loveys has brought to Cornerstone a wealth of experience in finance, acquisitions and banking relations.

Other changes announced are:

- Glen McKay is appointed Chief Executive Officer, adding that role to his position as President. Mr. McKay replaces John Fleming as CEO. Mr. Fleming continues as a Director and as Chairman of the Board.

- David Loveys is appointed Vice President Finance, adding that responsibility to his role as Chief Financial Officer. In addition, Mr. Loveys is appointed a Director of Cornerstone International Inc., replacing W. John Clarke. Cornerstone International Inc., registered in Barbados, is a wholly owned subsidiary of Cornerstone Capital Resources Inc.

- Mike Basha replaces Glen McKay as a Director and President of Cornerstone Ecuador S.A. and La Plata Minerales S.A., both wholly-owned subsidiaries of Cornerstone International Inc.

- W. John Clarke has resigned his position as Executive Vice President to concentrate on his successful and growing dispute resolution practice. Mr. Clarke is a partner in the recently established Centre for Innovative Dispute Resolution that provides arbitration and mediation services to commercial and labour markets. Mr. Clarke, who has been involved with Cornerstone from its inception, will continue to serve the company as a Director and as legal counsel.

Chairman John Fleming commented that the management changes recognize the recent evolution of the company and position it for further growth. "Cornerstone is fortunate to have such a capable management team", he said, "and I am particularly pleased that Glen McKay has agreed to take on the CEO role in addition to that of President. Glen is a successful private businessman whose drive and vision have been fundamental to Cornerstone's growth to date. His commitment to lead Cornerstone in the days ahead is key to our further success."

Cornerstone is focused on generating and advancing exploration projects that have the potential to yield outstanding returns to the company and its shareholders. The company's business model is based on developing those projects mainly through joint ventures. Partnering with other exploration and mining companies gives Cornerstone access to its partners' financial and technical resources, thereby reducing the need to seek financing from capital markets.

The company is well funded, with a treasury of over $7.0 million, and has strong a technical team. Commitments from JV partners to Cornerstone projects constitute significant validation of the company's strengths. Cornerstone's 2006 exploration programs, with total exploration expenditures over $7.5 million, will be 90% funded by its partners. Cornerstone's current and past joint venture partners include Agnico Eagle, Candente, Celtic Minerals, Coastport Capital, Falconbridge, Inmet Mining, Cogitore Resources, Kermode Resources, Moydow Mines, Noranda Inc, Phelps Dodge Mining, and Thundermin Resources.

On Behalf of the Board of Directors

John Fleming, P. Geo., Chairman

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

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