Cornerstone Capital Resources Inc.
TSX VENTURE : CGP

Cornerstone Capital Resources Inc.

October 20, 2005 08:00 ET

Cornerstone Announces Ecuador Strategic Alliance

MOUNT PEARL, NEWFOUNDLAND--(CCNMatthews - Oct. 20, 2005) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) ("Cornerstone") and it's wholly owned subsidiary Cornerstone Ecuador S.A. are pleased to announce the signing of a strategic alliance agreement with Mr. Allen Brown Hidalgo of Ecuador and Mr. Brown's group of private mining and mineral exploration companies. The agreement gives Cornerstone the right of first refusal to acquire an interest in any projects which are generated or acquired by Mr. Brown or his companies within Ecuador and provides Cornerstone with an experienced Ecuadorian partner with whom to pursue additional projects in the country.

Mr. Allen Brown Hidalgo is a leading member of Ecuador's business and mining communities. His group of companies includes the mineral exploration company Sierra Minera (Sierramin) S.A., the exploration services company Minera Cachabi C. Ltda. (Mineca), and the mining company Sultana Del Condor Minera (Sultana) S.A. Cornerstone signed an agreement with Sierramin in February 2005 to acquire the Shyri, Rinconada and Monterrey properties in southern Ecuador, and exclusive access to an extensive geochemical database covering approximately 5000 sq km of that region. Cornerstone subsequently acquired the Bella Maria property under the same agreement.

The strategic alliance agreement broadens Cornerstone's partnership with Mr. Brown and his companies to provide for development and exploration of additional projects in Ecuador. In addition to giving Cornerstone a right of first refusal on new projects identified by Mr. Brown and his companies, the strategic alliance agreement provides that new projects that Cornerstone identifies in the country will be acquired and operated through the Allen Brown Hidalgo group. In exchange for the right of first refusal on projects they identify, the Allen Brown Hidalgo group will receive a 0.5% Net Smelter Royalty on such projects and Cornerstone will utilize Mineca's personnel and resources to operate them.

Glen McKay, President, said that he believes that the decision to choose Ecuador for its first international venture was a significant "right choice" for Cornerstone. Mr. McKay stated: "The results of exploration work so far on our current projects in Ecuador are most encouraging. This strategic alliance with Mr. Brown positions Cornerstone to take advantage of additional opportunities in Ecuador that complement our ongoing programs in Canada, with potential for near term rewards for our shareholders."



On Behalf of the Board of Directors
Glen H. McKay, President



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