Cornerstone Capital Resources Inc.
TSX VENTURE : CGP
PINK SHEETS : CTNXF
FRANKFURT : GWN
BERLIN : GWN

Cornerstone Capital Resources Inc.

June 20, 2011 11:41 ET

Cornerstone Capital Resources Inc.: Environmental License Granted for Gama Prospect in Ecuador

MOUNT PEARL, NEWFOUNDLAND--(Marketwire - June 20, 2011) - Cornerstone Capital Resources Inc. ("Cornerstone") (TSX VENTURE:CGP) (FRANKFURT:GWN) (BERLIN:GWN) (PINK SHEETS:CTNXF) today announced that the Ministry of Environment (ME) of Ecuador has granted the formal environmental license for all portions of the Loma Quinuas, Aguarongos and Gama Norte concessions which constitute the Gama prospect on Cornerstone's flagship Shyri property. The license is valid for the 4-year advanced exploration phase of the 3 concessions. A phase 1 2,900 metre, 11 hole drilling program is currently ongoing on the Aguarongos concession (see below).

As previously announced on January 4, 2011, Cornerstone was authorized by the Ministry of Non-Renewable Natural Resources (MNRNR) to resume exploration activities (including diamond drilling) on the Loma Quinuas and Aguarongos concessions. Cornerstone's Environmental Impact Study (EIS) and an Environmental Management Plan (EMP) for Gama were both approved prior to January 2011. Under the transitional rules of the 2009 Mining Law and Regulations, Cornerstone was permitted to conduct exploration (including drilling) on Gama pending receipt of the formal environmental license. The formal environmental license was granted by ME following its approval in the first quarter of 2011 of an Environmental Compliance Audit (ECA) and an Environmental Feasibility Study (EFS) conducted on the 3 concessions. As a result of the issuance of this environmental license by the ME, no further approvals from the MNRNR are required to conduct drilling in the future on the 3 concessions.

The license does not cover the Vetas Grandes prospect (located on the Shyri NW and Shyri Norte concessions) or the Canaribamba prospect (located on the Shyri Oeste and Shyri concessions), for which separate MNRNR and ME approvals are required.

"We are very pleased with the granting of this environmental license, which demonstrates our stewardship of the environment and our commitment to the communities in the area of our activities" said Brooke Macdonald, Cornerstone's President. "We designed and implemented a responsible Environmental Management Plan with the participation of the communities and of the environmental authorities that will ensure the sustainability of the project".

Phase 1 Drill Program

Cornerstone and Intrepid Mines Ltd (ASX-IAU, TSX-IAU) have approved an 11 hole, 2,900 metre diamond drilling program targeting both high sulphidation (HS) epithermal gold-silver and porphyry copper-molybdenum-gold mineralization on the Gama prospect. The drilling program and targets are described in news releases dated January 11 and March 8, 2011. Drilling results from the first five holes (GAD-11-001 to GAD-11-005), including a significant porphyry gold-copper mineralized intercept, were released on May 31, 2011. Phase 1 drilling should be completed in July.

A map showing the location of targets and drill holes with respect to gold-in-soil anomalies and interpreted faults is provided here: http://www.cornerstoneresources.com/i/maps/properties_GAMADDH0611.jpg.

Qualified Person

Yvan Crepeau, M.Ba., P.Geo, President of Cornerstone Ecuador SA and a qualified person in accordance with National Instrument 43-101, is responsible for supervising the Gama drilling program and has reviewed and approved the information contained in this news release.

Shyri Option Agreement

Intrepid Mines Limited ("Intrepid") is earning a 60% interest in the Shyri gold-silver-copper property under an option agreement signed with Cornerstone in January 2011. Under the terms of the Agreement, Intrepid has the ability to earn an initial 60% interest in the property by spending $US 6.0 million dollars over 5 years, with a firm commitment of $US 1.0 million in the first year. Intrepid may earn an additional 20% in specific project areas up to 5,000 hectares each. Upon designation of a Project Area, Intrepid will make a $US 750,000 private placement in Cornerstone. To earn the additional interest, Intrepid will complete a bankable feasibility study or incur expenditures of $US 20 million, whichever comes first, and make a cash payment to Cornerstone of up to $US 5.0 million based on the gold equivalent ounces in the mineral reserve. There is no limit to the number of Project Areas Intrepid may designate within the property and each 'stand-alone' Project Area requires the same earn-in requirements (see news release dated Oct 29, 2009). Cornerstone is the project operator, and manages the exploration programs in close consultation and planning with Intrepid.

About Cornerstone

Cornerstone Capital Resources Inc. is a mineral exploration company based in Mount Pearl, Newfoundland and Labrador, Canada, with a diversified portfolio of projects in Canada, Ecuador and Chile, and a strong technical team that has proven its ability to identify, acquire and advance properties of merit. The company's business model is based on generating exploration projects whose subsequent development is funded primarily through joint venture partnerships. The company is well funded and commitments from JV partners constitute significant validation of the strength of Cornerstone's projects.

Investors can access and join the following Cornerstone social media channels:

Facebook (http://www.facebook.com/cornerstoneresourcesinc)

Twitter (http://twitter.com/Cornerstone_cgp)

YouTube channel (http://www.youtube.com/user/CornerstoneResource)

Flickr (http://www.flickr.com/photos/cornerstoneresources)

The link to recent CEO audio interviews is: http://www.cornerstoneresources.com/s/Interviews.asp

The link to a recent Corporate presentation with narration is: http://rblcommunications.com/resources/CGP/1/CGPmay2011.html

Cautionary Notice:

This news release may contain 'Forward-Looking Statements' that involve risks and uncertainties, such as statements of Cornerstone's plans, objectives, strategies, intentions and expectations. The words "potential," "anticipate," "forecast," "believe," "estimate," "expect," "may," "project," "plan," and similar expressions are intended to be among the statements that identify 'Forward-Looking Statements.' Although Cornerstone believes that its expectations reflected in these 'Forward-Looking Statements' are reasonable, such statements may involve unknown risks, uncertainties and other factors disclosed in our regulatory filings, viewed on the SEDAR website at www.sedar.com. For us, uncertainties arise from the behaviour of financial and metals markets, predicting natural geological phenomena and from numerous other matters of national, regional, and global scale, including those of an environmental, climatic, natural, political, economic, business, competitive, or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our Forward-Looking Statements. Although Cornerstone believes the facts and information contained in this news release to be as correct and current as possible, Cornerstone does not warrant or make any representation as to the accuracy, validity or completeness of any facts or information contained herein and these statements should not be relied upon as representing its views subsequent to the date of this news release. While Cornerstone anticipates that subsequent events may cause its views to change, it expressly disclaims any obligation to update the Forward-Looking Statements contained herein except where outcomes have varied materially from the original statements.

On Behalf of the Board,

Brooke Macdonald, President

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Cornerstone Capital Resources Inc.
    Martti Kangas
    (647) 521-9261 or North America toll-free: 1 (877) 277-8377

    Cornerstone Capital Resources Inc.
    Paul Benwell / Pat Kairns
    (514) 904-1333 or North America toll-free: 1 (877) 277-8377
    communications@crigold.com
    www.cornerstoneresources.com