Cornerstone Capital Resources Inc.

Cornerstone Capital Resources Inc.

March 29, 2005 08:00 ET

Cornerstone Announces Joint Venture With Agnico-Eagle on El Strato Gold Project




MARCH 29, 2005 - 08:00 ET

Cornerstone Announces Joint Venture With Agnico-Eagle
on El Strato Gold Project

MOUNT PEARL, NEWFOUNDLAND--(CCNMatthews - March 29, 2005) - Cornerstone
Capital Resources Inc. (TSX VENTURE:CGP) is pleased to announce the
signing of a Letter of Intent with Agnico-Eagle Mines Ltd. (TSX - AGE)
to conclude an earn-in/joint venture agreement for Cornerstone's El
Strato gold property. The 31 km2 property is on the Baie Verte Peninsula
in northwestern Newfoundland and adjacent to the Baie Verte Line, a
major tectonic boundary and a prospective environment for high-grade,
orogenic, vein-hosted gold deposits.

The Letter of Intent provides for an agreement to give Agnico-Eagle
Mines Ltd. the right to earn an initial 51% interest in the El Strato
property by spending $1,950,000 on exploration and paying Cornerstone
$150,000 over four years. After earn-in, Cornerstone may elect to
maintain a 49% interest in the project by participating in further
exploration programs. Alternatively, Cornerstone may permit Agnico-Eagle
to increase its interest to 61% by funding a bankable feasibility study,
and to further increase its interest to 75% by assisting Cornerstone to
arrange mine financing. Cornerstone will operate the exploration program
until Agnico-Eagle earns an interest. The agreement is subject to the
approval of the Boards of Directors of Cornerstone and Agnico Eagle as
well as applicable regulatory authorities.

The property hosts several high-grade gold occurrences including the El
Strato Showing, a 0.75 m wide, base metal-rich quartz vein that has
returned channel sample assays up to 17.5 g/t Au over 0.55 m. Limited
drilling of this prospect by previous explorers (2 holes) returned
assays up to 9.9 g/t Au over 0.3 m. The Voodoo Showing, 750 m northeast
of the El Strato Showing, consists of a cluster of base metal-rich
quartz blocks up to 2.0 m in diameter that returned grab sample assays
up to 105.3 g/t Au and 133 g/t Ag. The Voodoo Showing is within a zone
over 1 km long and immediately on-strike from El Strato, which displays
coincident gold-in-soil and IP chargeability anomalies. The abundance,
large size and angularity of the mineralized blocks suggest a proximal
bedrock source. Previous drilling (six holes) immediately under the
boulders failed to source the boulders but yielded a best assay of 3.9
g/t Au over 0.6 m. The results of geological mapping conducted by
Cornerstone in 2004 suggest that the mineralization may be associated
with a nearby structure and further suggest that the previous drilling
might not have adequately tested the showing.

In addition to mapping, Cornerstone's 2004 exploration program on the
property consisted of prospecting, geochemical surveys and airborne VTEM
magnetic/EM geophysical surveys. The work resulted in discovery of
several new high-grade gold showings, and relocated historically
referenced showings, over a northeast-trending corridor more than 1.3 km
long immediately northeast of the Voodoo Showing. These showings include
gold mineralization hosted by multiple quartz (+/- carbonate) veins up
to 0.3 m wide in several parallel fault zones. Assays of twenty-six grab
samples from the veins average 10.3g/t Au and range up to 54.3 g/t Au.
Soil geochemical surveys extended the gold anomaly over a 2 km strike
length, coincident with the newly defined fault zones. Historic and
recent prospecting along this trend has returned numerous mineralized
float and outcrop occurrences assaying from 20 to 155 g/t Au.

The Baie Verte region is recognized for its orogenic gold potential and
has yielded two low cost, high-grade gold deposits, Nugget Pond and
Hammerdown, recently exploited by Richmont Mines.

The Qualified Person, as per the definition in National Instrument
43-101, for the El Strato project and the contents of this release is
Mike Basha, P.Eng., P. Geo., Exploration Manager for Cornerstone. The
2004 field program was supervised by Bruce Mitton, P.Geo., Senior
Geologist, also a Qualified Person as per the definition in National
Instrument 43-101.

In other news, Cornerstone has received from Moydow Mines Ltd. the
option payment of CDN$25,000 required to renew Moydow's option on the
True Grit property for 2005. The property is located in the Baie
d'Espoir area of southern Newfoundland. Cornerstone is reviewing the
recently received results of the 2004 program. Moydow are the project
operators until earn-in.

Cornerstone Capital Resources Inc. is a well-funded mineral exploration
company based in Mount Pearl, Newfoundland & Labrador, Canada, with a
diversified portfolio of projects in Canada and Ecuador. The company's
business model is based on generating exploration projects whose
subsequent development is funded primarily through joint venture
partnerships. Cornerstone's current and past joint venture partners
include Agnico Eagle, Candente, Falconbridge, Inmet/Woodruff, Kermode,
Moydow, Noranda, Phelps Dodge, and Thundermin.

Glen H. McKay



Contact Information