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

Cornerstone Capital Resources Inc.

August 08, 2006 16:00 ET

Cornerstone Intersects 7.0% Copper Over 6.8 Metres in New Discovery at Guatuza 5000 Metre Phase II Drill Program Planned

MOUNT PEARL, NEWFOUNDLAND--(CCNMatthews - Aug. 8, 2006) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) (FWB:GWN) (BERLIN:GWN) reports final drill core assays from Phase I drilling at the La Plata gold-rich massive sulphide project in Ecuador. The drill program consisted of 2,518 m BTW (4.20 cm) core drilling in 8 drill holes to test the La Mina deposit, and the Guatuza and San Pablo prospects (see plan map at www.cornerstoneresources.com/i/pdf/properties_laplata_ddh0806plan.pdf).

Guatuza

Holes LP-06-04, 06 and 07 were drilled in the Guatuza prospect, located 225 m north of La Mina. The primary target was a 200 m long, shallow IP chargeability anomaly coinciding with the favourable target horizon, and associated with strong surface alteration and elevated gold-copper-zinc geochemistry.

Hole LP-06-04 was drilled as a twin of an historic drillhole which had intersected 26 g/t Au and 10% Cu over 1.6 m, approximately 200 m north-northeast of La Mina. A 55 m wide zone of disseminated and stringer mineralization was intersected in LP-06-04 including a narrow zone of semi-massive sulphide which assayed 4.7% Cu, 0.35% Zn and 0.6 g/t Au over 1.5 m. The gold values from the historic drillhole were not repeated.

Holes LP-06-06 and 07 were drilled approximately 175 m north of La Mina. LP-06-06 intersected two massive sulphide intervals from 89.9 m to 110.95 m depth. The upper massive sulphide assayed 1.0 g/t Au and 7.0 % Cu over 6.8 m core length while the lower zone assayed 1 g/t Au, 3.2% Zn and 3.6% Cu over 6.6 m, including 1.7 g/t Au, 23 g/t Ag, 3.75% Zn and 6.9% Cu over 2.6 m. This represents a new, near-surface massive sulphide discovery at La Plata. LP-06-07 was drilled to test the down-dip extension of LP-06-06. Two narrow massive sulphide intervals, separated by an 8 m wide barren felsic dyke, occur 40 m down-dip of the intersection in LP-06-06. The upper zone assayed 1.1 g/t Au, 14 g/t Ag, 1.6% Zn and 1% Cu over 1.0 m while the lower zone assayed 2.4 g/t Au, 21 g/t Ag, 6.9% Zn and 0.6% Cu over 0.15 m. Based on bedding - drill core angles, these intersections are estimated to be true width (see www.cornerstoneresources.com/i/pdf/properties_laplata_ddh0806.pdf).

La Mina

Previously reported holes LP-06-01 to LP-06-03 were drilled to test the south-southwest extension of the La Mina deposit (840,459 tons grading 4.8 g/t Au, 54.4 g/t Ag, 4.1% Zn, 4.2% Cu and 0.7% Pb; Historical Resource Estimate, Cambior, 1998(1)). Hole LP-06-01 intersected massive sulphides assaying 31.73 g/t Au, 289.39 g/t Ag, 18.16% Zn, 5.86% Cu and 1.61% Pb over 8.9 m including 5.2 m averaging 51.11 g/t Au, 243.47 g/t Ag, 17.58% Zn, 4.88% Cu and 1.77% Pb. Estimated true thickness is 6.8 m.

Hole LP-06-02 intersected massive sulphides assaying 8.2 g/t Au, 62.5 g/t Ag, 16.99% Zn, 1.65% Cu and 2.32% Pb over 9.5 m including 6.7 m which averaged 11.1 g/t Au, 77.9 g/t Ag, 23.44% Zn, 1.02% Cu and 3.19% Pb. Estimated true thickness is 4.4 m. These 2 holes represent 65 and 41 m step-outs to the south and west of the La Mina deposit, respectively. Hole LP-06-03, drilled approximately 40 m east of LP-06-01, failed to intersect massive sulphides.

Hole LP-06-05 was drilled to test the northeastern down-dip extension of the La Mina deposit. Two mineralized zones were intersected. The upper zone, consisting of stringer mineralization, assayed 1.2% Zn and 3.5% Cu over 1.5 m and is 10 m below surface. A fragmental unit containing several massive sulphide fragments up to 5 cm wide, indicating proximity to a massive sulphide mound, was also intersected. It assayed up to 1.4 g/t Au, 57g/t Ag, 2% Zn, 0.4% Cu and 0.9% over 1.35 m.

San Pablo

LP-06-08 was drilled to test a strong IP anomaly associated with the favourable horizon, strong surface rock and soil geochemistry and surface sulphide mineralization. Strong silicification and disseminated and minor stringer mineralization were encountered throughout the entire 387.9 hole depth. The entire hole returned anomalous copper and zinc values; however, the best assay was 1.45% Zn over 1.5 m.



Phase I Drilling Assay results:

------------------------------------------------------------------------
Vertical
Drillhole Target From To Width Depth Au Ag Zn Cu Pb
(m) (m) (m) (m) (g/t) (g/t) (%) (%) (%)
------------------------------------------------------------------------
La Mina
LP-06-01 SW 162.70 162.95 0.25 125 14.05 44.50 14.25 0.65 1.30
------------------------------------------------------------------------
453.50 462.4 8.90 370 31.73 289.39 18.16 5.86 1.61
------------------------------------------------------------------------
incl 457.20 462.4 5.20 51.11 243.47 17.58 4.88 1.77
------------------------------------------------------------------------
462.40 472.40 10.00 375 0.55 8.52 3.08 0.71 0.16
------------------------------------------------------------------------
La Mina
LP-06-02 SW 327.34 336.84 9.50 370 8.2 62.5 16.99 1.65 2.32
------------------------------------------------------------------------
incl 327.34 334.04 6.70 370 11.1 77.90 23.44 1.02 3.19
------------------------------------------------------------------------
La Mina
LP-06-03 SW No significant assays
------------------------------------------------------------------------
LP-06-04 Guatuza 13.00 14.30 1.30 10 0.30 3.00 0.02 5.89 0.02
------------------------------------------------------------------------
30.00 31.50 1.50 25 0.57 4.19 0.35 4.68 0.01
------------------------------------------------------------------------
La Mina
LP-06-05 NE 13.71 15.24 1.53 13 0.54 7.20 1.18 3.49 0.05
------------------------------------------------------------------------
119.40 123.10 3.70 120 1.43 22.91 0.74 0.16 0.33
------------------------------------------------------------------------
incl 121.75 123.10 1.35 120 1.38 56.95 1.99 0.42 0.86
------------------------------------------------------------------------
LP-06-06 Guatuza 89.90 96.75 6.84 60 0.99 9.54 0.05 6.97 0.04
------------------------------------------------------------------------
104.00 110.95 6.55 73 0.98 12.06 3.19 3.59 0.15
------------------------------------------------------------------------
incl 108.00 110.95 2.60 75 1.70 23.43 3.75 6.87 0.06
------------------------------------------------------------------------
LP-06-07 Guatuza 105.65 114.30 8.65 100 0.46 6.63 0.72 1.27 0.09
------------------------------------------------------------------------
125.49 126.49 1.00 117 1.08 14.20 1.65 0.95 0.42
------------------------------------------------------------------------
134.20 134.35 0.15 125 2.40 21.20 6.88 0.62 0.58
------------------------------------------------------------------------
150.75 152.40 1.65 140 0.95 14.53 2.48 0.12 0.46
------------------------------------------------------------------------
San
LP-06-08 Pablo 74.67 76.20 1.53 0.15 0.73 1.45 0.11 0.00
------------------------------------------------------------------------
------------------------------------------------------------------------


Surface and downhole geophysical surveys are nearing completion. A 5000 m Phase II follow-up drill program is anticipated to begin in late September.

Discussion

Drillholes LP-06-01 and 02 intersected high-grade massive sulphide mineralization 65 m south and 41 m east of the La Mina deposit, respectively. These intercepts are considered to be the extension of the mineralized horizon which hosts the La Mina deposit, and which still remains open to the south-southeast.

The new massive sulphide discovery at Guatuza occurs approximately 175 m north-northeast of the La Mina deposit, and less than 70 m below surface. The discovery is also associated with a 200 m long IP anomaly and, more importantly, this demonstrates the area between La Mina and Guatuza has not been fully tested by previous drilling.

These Phase I drilling results demonstrate the untested exploration potential along the favourable mineralized horizon, both to the south and north of the La Mina deposit. The variability in grades observed are typical of VMS deposits. These results also represent major progress towards expanding the known mineralization at La Plata.

QA/QC

Under Cornerstone's QA/QC procedures, saw-cut samples representing 50% splits of cores were collected and sealed at the core processing facility on site and delivered to the lab by company personnel. Blanks and standards were inserted into every 20 sample batch. Samples were submitted to ALS Chemex in Quito, Ecuador and analyzed in Vancouver, BC. 50 g splits were used for all samples. Gold was analyzed by fire assay-AA and overlimits (+10 ppm) were done by gravimetric finish. All other elements were analyzed by aqua-regia digestion and ICPMS/AES with silver overlimits (+100 ppm) and Cu, Zn and Pb overlimits (+10,000 ppm) by AAS.

This press release was prepared by Mike Basha, PEng, PGeo, Cornerstone's Vice President Exploration, a Qualified Person, as per the definition in National Instrument 43-101. Lawrence Winter, MSc, PGeo, was the Qualified Person supervising the drilling program. George Smith, MSc, is Exploration Manager for Cornerstone in Ecuador.

Coastport Capital Inc. (TSXV-CPP) (F-C1J), has an option to earn a 70% interest in the La Plata property by meeting all of Cornerstone's obligations to a 3rd party through to mine financing, and by issuing Coastport shares to Cornerstone representing 10% of its fully diluted share capitalization, and by granting Cornerstone a 2% net smelter return royalty (NSR) in the project. Coastport also has the right to earn a 100% interest in the Shyri Project by spending US$8 million on exploration, paying Cornerstone US$490,000 cash, issuing shares equivalent to US$490,000 over 4 years and to fully vest they then must issue to Cornerstone 40% of its fully diluted share capitalization.

(1)Note: Resources referred to within this release are not compliant with the requirements of National Instrument 43-101. Cornerstone has not undertaken an independent investigation of the resource estimates nor independently analyzed the results of the previous exploration work in order to verify the classification of these resources. The historical estimates, therefore, should not be relied upon.


On Behalf of the Board,


Glen H. McKay

President

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

Contact Information