Cornerstone Capital Resources Inc.

Cornerstone Capital Resources Inc.

July 13, 2005 08:00 ET

Cornerstone Signs JV with Agnico Eagle on El Strato Gold Project

MOUNT PEARL, NEWFOUNDLAND--(CCNMatthews - July 13, 2005) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) is pleased to announce the signing of a definitive agreement with Agnico-Eagle Mines Ltd. (TSX-AGE) for exploration of the El Strato Gold Property, as per the letter of intent announced on March 29, 2005. The agreement gives Agnico-Eagle 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. Agnico-Eagle may increase its interest to 61% by funding a bankable feasibility study, and can 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 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 property hosts several high-grade gold occurrences including the El Strato Showing, a 0.75 m wide, base metal-rich quartz vein, and the Voodoo Showing, 750 m northeast of the El Strato Showing, that consists of a cluster of base metal-rich quartz blocks up to 2.0 m in diameter. The Voodoo Showing is within a zone over 1 km long and immediately on-strike from El Strato, which zone displays coincident gold-in-soil and IP chargeability anomalies. The abundance, large size and angularity of the mineralized blocks suggest a proximal bedrock source. Six holes drilled by previous workers 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 didn't adequately test the showing.

Recent work by Cornerstone 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 veins up to 0.3 m wide in several parallel fault zones. Assays of twenty-six grab samples from the veins average 10.3 g/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 discovered numerous mineralized float and outcrop occurrences assaying from 20 to 155 g/t Au.

Under the terms of the agreement Agnico Eagle is committed to incurring exploration expenditures of $250,000 in the first year. The initial 2005 exploration program, scheduled to commence immediately, will entail diamond drilling, geological mapping, prospecting, soil geochemical surveying and IP geophysical surveys.

Cornerstone is very pleased to engage Agnico Eagle on its second joint venture with Cornerstone in Newfoundland. Agnico is currently earning up to a 51% interest in the Colchester Project located approximately 15 km east of the El Strato Project.

Cornerstone Capital Resources Inc. is a mineral exploration company based in Mount Pearl, Newfoundland & Labrador, Canada, with a diversified portfolio of projects in Canada and Ecuador 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. Cornerstone's current and past joint venture partners include Agnico Eagle, Candente, Falconbridge, Inmet/Woodruff, Kermode, Moydow, Noranda, Phelps Dodge, and Thundermin.

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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