Cornerstone Capital Resources Inc.

Cornerstone Capital Resources Inc.

February 26, 2007 08:00 ET

Cornerstone Signs Mountain Lake to Joint Venture on Bobby's Pond VMS Project

MOUNT PEARL, NEWFOUNDLAND--(CCNMatthews - Feb. 26, 2007) - Cornerstone Capital Resources Inc. (TSX VENTURE:CGP) (FRANKFURT:GWN) (BERLIN:GWN) (PINK SHEETS:CTNXF) today announced that a Letter Agreement has been signed with Mountain Lake Resources Inc. ("Mountain Lake") to conclude a joint venture agreement for exploration of Cornerstone's 100% owned Bobby's Pond property in Central Newfoundland. The property partially surrounds Mountain Lake's 2.4 sq km Bobby's Pond Mining Lease where ongoing drilling is defining a significant polymetallic massive sulphide deposit.

Mountain Lake recently reported ( the results of a January 2007 resource estimate update that increased NI43-101 compliant resources in the Bobby's Pond deposit to an Indicated resource of 860,000 tonnes grading 0.93% Cu, 6.30% Zn, 0.53% Pb, 20.0 g/t Ag, and 0.24 g/t Au, and an Inferred resource of 480,000 tonnes grading 1.07% Cu, 6.36% Zn, 0.38% Pb, 15.0 g/t Ag, and 0.18 g/t Au. Mountain Lake also recently reported intersecting significant new mineralization up to 65 m vertically below known mineralization, demonstrating that the deposit remains open for extension.

Cornerstone's Bobby's Pond property comprises 62 claims (15.5 sq km) and hosts VMS-style alteration, disseminated and stringer base metal sulphide mineral occurrences, and airborne electromagnetic anomalies along the interpreted extension of the mineralized horizon which hosts the Bobby's Pond deposit, approximately 4 km and 2 km to the northeast and southwest respectively of the deposit. A map of the property is available at

The joint venture agreement will grant Mountain Lake the right to earn a 51% interest in the property by spending $2.75 million on exploration over five years. The first year's $150,000 expenditure is a firm commitment and includes completion of a diamond drilling program. The agreement also calls for Mountain Lake to issue 200,000 common shares to Cornerstone over five years, including 25,000 to be issued on signing of the Letter agreement. With an active exploration program already underway on its Bobby's Pond Mining Lease, Mountain Lake will be operator of the joint venture during the earn-in period.

On Mountain Lake earning a 51% interest, a Joint Venture will be formed whereby both parties will have the right to maintain their respective interests by funding their respective share of exploration costs. Under certain conditions Mountain Lake may increase its interest by up to 75%. Either party may dilute its interest, based on exploration expenditures. If either party's interest falls to 10% or less, its interest will convert to a 2% NSR.

Bobby's Pond is one of a number of active projects in the Buchans area of Central Newfoundland known for its base and precious metal-rich VMS deposits, most notably the renowned and historic Buchans deposits themselves. The Bobby's Pond project is 25 km to the west of Aur Resources' Duck Pond deposit, which is commencing commercial production, and 50 km northeast of Messina Minerals' Tulks South property, the site of their 2004 Boomerang and subsequent discoveries.

Cornerstone's business model is based on maximizing the potential for exploration success with multiple high quality exploration projects that are financed primarily through joint venture partnerships and that have the potential to yield outstanding returns to the company and its shareholders. Current joint venture projects target nickel, gold, silver, uranium and VMS base-metal deposits with partners Cash Minerals, Phelps Dodge, Coastport, Cogitore, Kermode, Celtic, and Agnico Eagle.

This press release was prepared by Bruce Mitton, PGeo, Exploration Manager Canada for Cornerstone and a Qualified Person as per National Instrument 43-101.

On Behalf of the Board,

Glen H. McKay, President & CEO

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

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