Mount Pearl, NL, Canada - February 12, 2008: Cornerstone Capital Resources Inc. (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) today announced that it has signed a definitive Earn-in Joint Venture option agreement with Newmont Ventures Limited, a subsidiary of Newmont Mining Corporation (NYSE: NEM) with respect to the formation of a regional exploration alliance ("Alliance") to explore for gold in southern Ecuador.
o The Alliance will cover an area of approximately 1800 km2 in Southern Ecuador;
o Cornerstone holds or has applications pending for 600 km2 of concessions in the Alliance Area of Influence (AOI);
o Alliance funding to include a US$1 million private placement in Cornerstone by Newmont at a fixed share purchase price of CAN$0.83;
o Up to US$4 million exploration expenditures in two stages over 6 years anticipated if Newmont elects to earn-in;
o Earn-in/Joint Venture commercial terms pre-established; and
o Cornerstone to operate initial phase of program
Since inception of the Ecuador initiative in 2005, Cornerstone has compiled a significant geological and geochemical database for Ecuador and through in-house regional target generation has identified the Macara project area as highly prospective for a variety of gold exploration concepts. Cornerstone will utilize this comprehensive regional experience to prioritize targets and to manage and operate the initial exploration program on behalf of the Alliance. Cornerstone will have access to Newmont's proprietary exploration technologies, including discovery-proven ultra-low detection geochemical and geophysical techniques, as well as the specialist technical expertise of the world's second largest gold producer.
Regional Exploration Alliance
The proposed Alliance will cover an area of approximately 1800 km2 encompassing Cornerstone's Macara project area, where Cornerstone holds or has applications pending for 600 km2 of mineral concessions. The Rinconada concession, which is within the Macara alliance area, as well as rights to a regional geochemical database were acquired in 2005 as part of Cornerstone's initial acquisition under an agreement that gave Cornerstone Ecuador SA the right, which it recently exercised as announced on January 28, 2008, (see http://www.cornerstoneresources.com/s/NewsReleases.asp) to acquire a 100% interest in it and several other mineral projects.
Terms of the Alliance include expenditures of up to US$4.0 million in two exploration phases. Newmont shall complete a Private Placement of US$1 million for units of Cornerstone at CAN$0.83. The first year budget of approximately US$1 million will be funded by Cornerstone out of the private placement proceeds.
Earn-In Joint Venture
Newmont will not, by virtue of its participation in the Alliance, earn any interest in any existing Cornerstone properties. However, Newmont will have the right to earn an interest in the Cornerstone properties within the alliance AOI through a separate earn-in and joint venture option agreement with pre-established commercial terms.
Under the Alliance agreement, Newmont may elect, at its discretion, to exercise its right to earn an undivided 51% participating interest in the property within the AOI by spending US$3 million on exploration over 4 years. Newmont may earn an additional 12.5% interest by solely funding a positive feasibility study and earn a further 11.5% by arranging mine financing.
"We are extremely pleased to finalize our strategic alliance agreement with Newmont," stated Glen H. McKay, Cornerstone's President & CEO. "We view the agreement as affirming Cornerstone's view that Ecuador has very considerable mineral development potential and that the current debate about mineral policy in the country will be resolved in a manner that will permit that potential to be realized to the benefit of the country and the industry. The Alliance will enable us to leverage Cornerstone's exploration assets and focus on new opportunities, some of which we hope to be in a position to announce in the near future."
This press release was prepared by Mike Basha, PEng, PGeo, Cornerstone's Executive Vice President and a Qualified Person in accordance with National Instrument 43-101.
About Cornerstone Capital Resources Inc.
Cornerstone Capital Resources Inc. is a mineral exploration company with 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. Through its wholly owned subsidiaries, Cornerstone Resources Inc. and Cornerstone Ecuador S. A., the company operates in Canada and Ecuador. Cornerstone's current and past joint venture partners include Agnico Eagle, Celtic, Cash Minerals, Candente, Coastport, Cogitore, Falconbridge, Inmet, Kermode, Mountain Lake, Moydow, Newmont, Noranda, Phelps Dodge, and Thundermin.
On Behalf of the Board,
Glen H. McKay
President & CEO
Further information is available on the Cornerstone Web site at www.cornerstoneresources.com; via e-mail at firstname.lastname@example.org; or toll free at 1-877-277-8377.
Renmark Financial Communications Inc.
Tina Cameron : email@example.com
Maurice Dagenais : firstname.lastname@example.org
Tel. : (514) 939-3989
Fax : (514) 939-3717
The common shares of the Company are currently listed on the TSXV in Canada (symbol CGP), the OTC in the USA (symbol CTNXF) and the Frankfurt Stock Exchange (symbol GWN)
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.