Cornerstone Capital Resources Inc.

Cornerstone Capital Resources Inc.

September 21, 2010 08:00 ET

Update on Initial Prospecting Results by Rare Earth Metals Inc. on Cornerstone's Two Tom Lake Optioned Claims

MOUNT PEARL, NEWFOUNDLAND--(Marketwire - Sept. 21, 2010) - Cornerstone Capital Resources Inc. ("Cornerstone") (TSX VENTURE:CGP) (PINK SHEETS:CTNXF) (FRANKFURT:GWN) (BERLIN:GWN) is pleased to provide an update on initial prospecting results by Rare Earth Metals Inc. ("Rare Earth Metals") (RA: TSX-V) on Cornerstone's Two Tom Lake optioned claims in west-central Labrador. The Two Tom Lake area is located at the eastern end of Rare Earth Metals' Red Wine/Letitia Lake project which covers approximately 340 km2 and 50 km of strike length prospective for hosting rare metal deposits of Rare Earth Elements (REE), Beryllium (Be), Niobium (Nb) and Zirconium (Zr).

As originally reported by Rare Earth Metals in its news release dated August 31, 2010, a total of 33 rock samples were collected during initial prospecting on four of six airborne radiometric anomalies (thorium highs) identified on Cornerstone's Two Tom Lake claims. Assay results ranged from 0.21% to 8.00% TREO (Total Rare Earth Oxides) with 1.5% to 42.1% HREO (Heavy Rare Earth Oxides)/TREO*, 0.004% to 0.55% BeO, 0.049% to 1.66% Nb2O5 and 0.005% to 5.82% ZrO2. Of particular note, 27 of the 33 samples (82%) collected returned greater than 1% TREO. A brief description of the results is provided below. Note that all anomaly areas are extensively drift-covered with little or no outcrop exposure, and samples have been substantially collected from unsourced boulders ranging in size up to 2 to 3 m.

* HREO/TREO = proportion of HREO (including Y2O3) expressed as a percentage of the TREO content of the rock

Anomaly TT-04 (1.6 km long x 0.3 km wide): Assay results for 18 gneiss samples ranged from 0.63-4.92% TREO with 1.5-8.7% HREO/TREO, 0.08-0.55% BeO, 0.11-1.66% Nb2O5 and 0.005-0.07% ZrO2. The highest grades were from a single syenite sample which returned 8.00% TREO with 42.1% HREO/TREO, 0.38% BeO, 0.37% Nb2O5 and 5.82% ZrO2.

Anomaly TT-05 (0.6 km long** x 0.2 km wide): Assay results for 3 gneiss samples ranged from 1.33-3.50% TREO with 2.8-7.6% HREO/TREO, 0.32-0.55% BeO, 0.19-1.09% Nb2O5 and 0.01-0.03% ZrO2.

** Approximate size on Cornerstone's Two Tom Lake claims; actual size may be larger.

Anomaly TT-07 (1.3 km long x 0.1 km wide): Assay results for 5 syenite, 2 quartz feldspar porphyry and 1 felsic dyke sample ranged from 0.21-3.55% TREO with 6.7-31.6% HREO/TREO, 0.004-0.04% BeO, 0.05-0.20% Nb2O5, 0.73-2.37% ZrO2.

Anomaly TT-08 (0.9 km long x 0.1 km wide): Assay results for 2 granitic / gneiss samples ranged from 0.69-1.73% TREO with 3.3-6.9% HREO/TREO, 0.05-0.07% BeO, 0.59-0.73% Nb2O5, 0.02-0.03% ZrO2.

The airborne radiometric anomalies are generally elongated in a west to east direction which is consistent with the regional glacial flow direction, and the relatively large length-to-width ratio of the anomalies is believed to largely reflect glacial dispersion. Rare Earth Metals will be carrying out additional follow up prospecting and sampling in the anomalous areas as time permits during the current field season, and results will be announced as they become available.

Glen McKay, Cornerstone's President & CEO, commented "We are very encouraged by these initial prospecting results on our Two Tom Lake claims. Rare Earth Metals are carrying out a well-planned exploration program, and are having tremendous success in identifying new targets on this large and underexplored REE belt. Worldwide demand for rare earth elements is expected to exceed supply by 2012 unless major new production sources are developed. Demand is expected to continue to boom, but new mines and processing facilities require about ten years from discovery to production, so supplies are likely to get very tight in the interim. For those reasons conditions seem to be ripe for escalation in the rare earth sector during the next year or so. We are very pleased that Cornerstone is well positioned to potentially be a participant in this growing sector".

As announced on February 16, 2010, Rare Earth Metals has the right to earn a 51% interest in Cornerstone's 155 mineral claims in the Letitia Lake area of west-central Labrador. Rare Earth Metals has made initial payments of $10,000 and 20,000 shares and guarantees minimum first year expenditures of $50,000, sufficient to maintain the property in good standing. Thereafter, Rare Earth will make further payments of cash and shares totaling $30,000 and 60,000, respectively over the first two years of the option and incur additional exploration expenditures totaling $300,000 over three years. The parties will then form a joint venture to further explore and develop mineral resources on the property. Rare Earth will operate the exploration programs during the option period in consultation with Cornerstone.

All rock samples were delivered by Rare Earth Metals personnel to Activation Laboratories Ltd.'s sample preparation facility in Happy Valley-Goose Bay. The samples were processed and representative pulps sent to Activation Laboratories Ltd.'s analytical facility in Ancaster, Ontario for analysis. The digestion technique was total digestion that employs a lithium metaborate/tetraborate fusion and the analysis is completed using ICP/MS.

This press release was prepared by Terry Brace, P.Geo., Cornerstone's VP Exploration and a Qualified Person (QP) in accordance with National Instrument 43-101. The Red Wine/Letitia Lake project is being carried out under the supervision of Reginald Felix, Rare Earth Metals' VP Exploration.

Other News

The Resource Investors Forum ("RIF"), an annual conference organized and hosted by the Newfoundland and Labrador Chamber of Mineral Resources, will be held in St. John's, NL on September 28 and 29. Cornerstone is scheduled to make a presentation on the afternoon of Wednesday September 29 at 2:45 PM. For those who would like more information please check the following links: or RIF Invitation Flyer 2010.pdf.

About Cornerstone

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.

Further information is available on Cornerstone's website: or for investor, corporate or media inquiries, please contact Martti Kangas.

Cautionary Notice:

Certain statements contained in this press release may be considered as forward-looking. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results. 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.

On Behalf of the Board,

Glen H. McKay, President & CEO

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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