1. Further soil sampling continues to deliver very encouraging results
2. Rock alteration mapping delivers very encouraging results
3. Trench sampling confirms outcropping gold-copper mineralization
4. Progress with components of the drill permitting process

Soil Sampling Survey

The regional-scale soil sampling program has progressed to cover the southern portions of the concession and to partially complete infill sampling of the northern area. The results have defined additional gold, copper and molybdenum anomalies, along with other supporting elements. The anomalies are clustered and cover a broad aerial extent as shown in Figures 2a, 2b and 2c of the following map link:http://cornerstoneresources.com/i/pdf/NR12-26Cascabel.pdf. The broad and coherent area of molybdenum anomalism in the south is considered most significant because of the association with strong and extensive alteration and supporting anomalism of other elements.

This is very encouraging and further supports and enhances the definition of the T1 target area, with coincident gold, copper and molybdenum. This target has been further strengthened by recent geological work (rock alteration mapping) outlined below.

Additional soil anomalies have been defined in other areas and these will be further investigated.

It is considered significant that extensive areas of gold, copper and molybdenum anomalism have been defined, and that these anomalous areas are open in most directions. The soil sampling program will need to be extended to define the limits of these anomalous areas.

Rock Alteration Mapping

A comprehensive ‘rock alteration mapping’ survey is being undertaken in conjunction with the soil sampling program. This survey identifies alteration minerals that may form in association with gold-copper porphyry systems. This exploration technique has been successfully applied elsewhere in the search for gold-copper porphyries, and in particular during the exploration phase of the Candrian prospect adjacent to the giant Tujuh Bukit porphyry deposit in Indonesia (Norris, 2009). Used in conjunction with other datasets it assists in locating the central parts of a mineralized system, and therefore provides vectors for drill planning.

Figure 3 (see map link) shows the ‘spectral alteration map’ and highlights areas of high temperature clay alteration coincident with the T1 geophysical target and areas of coincident gold-copper-molybdenum from soil sampling.

Trench Sampling

Rock saw trench channel sampling at Quebrada Moran has been expanded, and has been undertaken at Quebrada America and Tandayama. The results support the geological mapping and have defined some areas of anomalous copper and gold.

At Quebrada Tandayama 6 channels were sampled and delivered anomalous results of gold and copper (see Table 1 below). At Quebrada America 10 channels were sampled and delivered anomalous, but lower level assay results.

The results show that the area of Q. Tandayama and Q. America is a copper system with some supporting molybdenum, and weak gold, while results of sampling at the area of Q. Moran show that it is a gold-copper system. These differing geochemical signatures may also be related to erosional level. Drilling will ultimately test these concepts. The areas that have been channel sampled to date all lie outside of the main target (T1) at Cascabel. Future channel sampling will be conducted in the Quebrada Alpala area which lies within the principal target.

Drill Permitting Progress

The drill permitting process requires the concession holder to prepare water management plans, an environmental impact assessment (EIA) of the proposed drilling program, and to undertake a structured community consultation and endorsement program.

These activities are currently underway. The baseline studies for the EIA have commenced and a team from consulting firm Cardno-Entrix is on site and working with our community officer and the local communities. A draft EIA is expected by mid-January. Applications for water permits have been submitted to the Water Agency regional office (SENAGUA) for the sourcing of water from 5 potential sites to support the drilling program.

The anticipated first pass drilling program will be based on a 2,500 m program comprising man portable drilling rigs with very low environmental impact. Members of the local community have been taken to tour an active drilling program in southern Ecuador so that they may see first-hand the responsible way in which Cornerstone undertakes the exploration program.

Table 1: Composite rock saw channel sample results (for reference 1000 ppm Cu = 0.1% Cu).

Reference: Norris, M., 2009, The Discovery History of the Tujuh Bukit Copper-Gold Project East Java, Indonesia; NewGenGold Conference, Perth, November 2009.

Assaying, Quality Assurance/Quality Control (QAQC)

Samples were delivered in sealed bags by Cornerstone employees to the ACME preparation laboratory in Cuenca. Rock samples are prepared (ACME code R200-250), and assayed by the ACME-Vancouver laboratory (www.acmelab.com) for gold (ACME code G601, F.A., 30 g) and multi-elements (ACME code 1E, 4 Acid digestion ICP-ES finish). All over limits results for precious and base metals were systematically re-assayed (ACME codes G6Gr and 7TD). Stream sediment samples are prepared (ACME code SS80), and assayed for gold (ACME code G601, F.A., 30 g) and multi-elements (ACME code 1EX, 4 acid digestion, ICP-MS finish).

ACME is an ISO 9001:2008 qualified assayer that performs and makes available internal assaying controls. Certified blanks and standards are systematically inserted every 25 samples as part of Cornerstone’s QA/QC program.

Qualified Person:

Yvan Crepeau, M.Ba., P.Geo., General Manager of Cornerstone Ecuador S.A. and a qualified person in accordance with National Instrument 43-101, is responsible for supervising the exploration program at the Cascabel project and has reviewed and approved the information contained in this news release.

About Cornerstone

Cornerstone Capital Resources Inc. is a mineral exploration company based in Mount Pearl, Newfoundland and Labrador, Canada, with a diversified portfolio of projects in Canada, Ecuador and Chile, 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. Commitments from JV partners constitute significant validation of the strength of Cornerstone’s projects.

The link to a recent Corporate presentation is:
http://www.cornerstoneresources.com/i/pdf/Presentations_0412_CRICorporate.pdf

Investors can also access Cornerstone on Twitter

Cautionary Notice:

This news release may contain ‘Forward-Looking Statements’ that involve risks and uncertainties, such as statements of Cornerstone’s plans, objectives, strategies, intentions and expectations. The words “potential,” “anticipate,” “forecast,” “believe,” “estimate,” “expect,” “may,” “project,” “plan,” and similar expressions are intended to be among the statements that identify ‘Forward-Looking Statements.’ Although Cornerstone believes that its expectations reflected in these ‘Forward-Looking Statements’ are reasonable, such statements may involve unknown risks, uncertainties and other factors disclosed in our regulatory filings, viewed on the SEDAR website at www.sedar.com. For us, uncertainties arise from the behaviour of financial and metals markets, predicting natural geological phenomena and from numerous other matters of national, regional, and global scale, including those of an environmental, climatic, natural, political, economic, business, competitive, or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our Forward-Looking Statements. Although Cornerstone believes the facts and information contained in this news release to be as correct and current as possible, Cornerstone does not warrant or make any representation as to the accuracy, validity or completeness of any facts or information contained herein and these statements should not be relied upon as representing its views subsequent to the date of this news release. 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 except where outcomes have varied materially from the original statements.

On Behalf of the Board,

Brooke Macdonald, President and CEO

Further information is available on the Cornerstone Web site at www.cornerstoneresources.com; via e-mail at[email protected]; or toll free at 1-877-277-8377.