Cornerstone Capital Resources Inc.
TSX VENTURE : CGP

Cornerstone Capital Resources Inc.

January 18, 2006 15:39 ET

Cornerstone Reports Discovery of New Gold-Silver Prospects on the Shyri Properties, Ecuador

MOUNT PEARL, NEWFOUNDLAND--(CCNMatthews - Jan. 18, 2006) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) ("Cornerstone") is pleased to report continued positive results from projects of its wholly owned subsidiary, Cornerstone Ecuador S.A., on the Shyri concessions in southern Ecuador.

Recent reconnaissance mapping and prospecting has extended the previously reported GAMA prospect and discovered a new, adjacent high grade gold-silver occurrence, the LAMA prospect. These gold prospects are associated with quartz-alunite alteration in and adjacent to a rhyolitic flow-dome complex. The recent work has extended the area of alteration more than 3 km to the west of the GAMA/LAMA prospects, indicating the potential for discovery of additional mineralization over a large area. Also, a zone of anomalous mercury (Hg) in outcrop (greater than 1 ppm Hg) covers a 9.5 x 5 km area, within which quartz-alunite alteration extends over a 4x4 km area, centered on the rhyolitic flow-dome complex. Recent chip-grab samples of the alunitic alteration assays up to 387 ppb Au adding to data from previous reconnaissance sampling that included assays of up to 587 ppb Au. The GAMA and LAMA prospects are located 9 km northwest of IAMgold Corporation's Quimsacocha gold deposit.

On the north flank of the GAMA prospect, the newly discovered LAMA prospect has been identified by reconnaissance mapping and sampling where five widely spaced grab samples over a distance of 190 metres have now returned assays of up to 12.2 g/t Au and 84 g/t Ag. Gold and silver assays for the five samples are as follows:



Sample ID Au (g/t) Ag (g/t)
15999 3.7 64.7
28202 12.2 84.0
28203 6.0 32.7
28204 0.45 4.0
28205 2.1 49.8


The broad zone of strong argillic alteration with associated quartz veinlet stockworks, silicification and pyritization within which the GAMA and LAMA prospects occur, has been mapped over an area of 700 x 500 m and remains open in several directions. The underlying geology, geochemical signature, alteration and mineralization at the GAMA-LAMA prospects are consistent with epithermal gold-silver systems and may be similar to those which occur at the Quimsacocha deposit.

At the Canaribamba project, approximately 10 km south of Quimsacocha, recent mapping, prospecting and hand trenching have outlined another new gold prospect. Referred to as the Guabisay prospect, this prospect consists of a shallowly dipping, 3 to 10 m wide band of argillic alteration enclosing a core of chalcedonic silica and brecciation. Mineralization is sporadically exposed over a strike length that exceeds 750 metres in an east-west orientation. Sampling has identified a central mineralized exposure over 130 metres long. Results from this mineralized area include channel sampling of silicified rocks that return assays averaging of up to 1.6 g/t Au over 6 metres. This relatively low grade mineralization is associated with numerous steeply dipping, 0.25 to 1.0 metre wide, veins from which individual channel samples assay up to 40 g/t Au. Though exposure is limited this mineralization is hosted by a relatively porous volcanic tuff breccia and is considered to potentially represent blanket-style mineralization adjacent to the diatreme. Most of the area is covered by 2 to 5 metres of overburden. Preliminary interpretation of recently collected IP and Magnetic surveys suggests the mineralization may be associated with defined structures.

The Guabisay prospect represents one of several small windows of exposure, including the previously reported Pinglio, Alberto, Ramos Potreros and Gringo prospects, exhibiting extensive gold-silver mineralization, locally with bonanza grades. These prospects extend over a 1 x 3 km area within the Canaribamba project, and are associated with a 6 km2 diatreme complex.

All samples reported in this release were collected by Cornerstone personnel, sealed on the property and shipped to Acme Laboratories in Cuenca, Ecuador, where they were prepared for analysis. Pulps were shipped to Vancouver for analysis of gold by one half ton fire assay, and for other elements by multi-element ICP analysis. Samples containing silver greater than the upper limit of the ICP technique (100 g/t Ag) were re-analyzed using atomic absorption spectrophotometry. Quality control was maintained throughout the program by implementation of procedures involving check assaying and insertion of previously prepared standards for each batch of 20 rock samples analyzed.

Cornerstone acquired the Shyri concessions, collectively over 450 sq km in area, beginning in February 2005. Cornerstone's work to date continues to demonstrate excellent exploration potential for low and high sulphidation precious metal deposits in several target areas. These concessions are adjacent to IAMGold Corporation's Quimsacocha discovery, the most advanced project in the region. IAMGold first announced significant drill intersections at Quimsacocha in December 2004, and in October 2005 reported an indicated resource of 2.8 million ounces of gold in the deposit (IAMGold Corporation press release, 28 October 2005).

Cornerstone can earn an undivided 100% interest in the Shyri properties under agreements with Sierra Minera (Sierramin) S.A., a private Ecuadorian mining and mineral exploration company, by incurring exploration expenditures of US$1.15 million, making cash payments of US$200,000, and issuing Cornerstone Capital Resources shares to the value of US$200,000 over four years.

This press release was prepared by Mike Basha, P.Eng., P.Geo., Vice President of Exploration for Cornerstone and a Qualified Person as defined by National Instrument 43-101. George Smith, M.Sc., is the qualified person supervising field programs in Ecuador.

On Behalf of the Board of Directors

Glen H. McKay, President


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

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