Cornerstone Capital Resources Inc.
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Cornerstone Capital Resources Inc.

August 17, 2011 08:00 ET

Cornerstone Capital Resources Inc.: Environmental License Granted for La Encrucijada Project in Ecuador

MOUNT PEARL, NEWFOUNDLAND--(Marketwire - Aug. 17, 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 environmental license for Cornerstone's La Encrucijada gold-silver-copper project located in southern Ecuador (see news releases of February 17, March 29 and June 28, 2011). The environmental license is valid for the 4-year initial exploration phase of the project which covers 8,085 hectares. A reconnaissance field program has recently commenced, which includes geological mapping and prospecting of the entire property, as well as a reassessment of previously defined gold-silver anomalous areas. All project data will be integrated into Cornerstone's regional database and a mineralization model defined. Results of the initial reconnaissance work will be announced later this fall.

"Previous results from La Encrucijada indicate that the property offers excellent potential for hosting significant epithermal gold-silver and porphyry copper-gold deposits" said Brooke Macdonald, Cornerstone's President. "The current field program is the first step in advancing the property to a drill-ready stage and a potential joint venture partnership".

La Encrucijada project

The La Encrucijada project is located in Loja province in southern Ecuador, approximately 70 km south of the city of Cuenca and midway between Cornerstone's Shyri and Caña Brava properties. The property lies within a northeast trending belt which hosts high-sulphidation epithermal gold-silver systems and associated porphyry systems at depth. It is underlain by flat-lying Tertiary intermediate to felsic volcanic rocks which are locally intruded by diorite plugs. Extensive areas of felsic hydrothermal breccias have been mapped in the central part of the property, and porphyry-style potassic alteration underlies silica-alunite advanced argillic alteration. Anomalous gold (>0.1 g/t Au) and silver (>10 g/t Ag) is widespread throughout the area. Higher grade gold (7 samples >1 g/t Au, up to 5.23 g/t Au) and silver (18 samples >30 g/t Ag, up to 1,110 g/t Ag) is commonly associated with silica alteration and veins, as well as breccias and structures (faults and mylonite zones). Very little work has been carried out on the property. Channel sampling of rock outcrops by previous owners along the Alumbre River, 2 km to the north, returned 110 m averaging 0.67 g/t Au and 1.7 g/t Ag, including a higher grade 45 m-wide section averaging 0.95 g/t Au and 2.4 g/t Ag. A limited soil geochemistry survey (531 samples) has been carried out in the central part of the property. Results define a northwest-striking gold and silver soil anomaly which is more than 1 km in length, and is open to the southeast.

Three concessions (3,125 hectares) located in the central part of the property are optioned from a 3rd party, with Cornerstone holding the right to earn a 100% interest in return for cash payments of $60,000 per year beginning in year 4 and a final payment of $400,000 to exercise the option. The option agreement had been in effect for 18 months when exploration work was suspended by the Mining Mandate. Cornerstone owns a 100% interest in two additional concessions covering 49.6 km2 which surround and are contiguous with these optioned concessions.

A map showing the location of the La Encrucijada project is provided here: (http://www.cornerstoneresources.com/i/maps/Properties_Ecuador_Overview.jpg).

Qualified Person

Yvan Crepeau, M.Ba., P.Geo., President of Cornerstone Ecuador S.A. and a qualified person in accordance with National Instrument 43-101, is responsible for supervising the exploration program at the La Encrucijada project and has reviewed and approved the information contained in this news release.

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 Ecuador, Chile, and Atlantic Canada, 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. Further information is available on Cornerstone's website: www.cornerstoneresources.com.

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 a recent Corporate presentation is: http://www.cornerstoneresources.com/i/pdf/Presentations_0711_CRICorporate.pdf

The link to a virtual tour of drilling at the Gama prospect, Shyri concession in Ecuador is: http://www.youtube.com/watch?v=Ne8XSfgLwIM

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.

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