Botwood Basin

[Ed Monton]

Cornerstone news:

Cornerstone Launches Burnt Hill Gold Project

MOUNT PEARL, NEWFOUNDLAND--Cornerstone Capital Resources Inc.
(TSXV - "CGP") is pleased to announce the acquisition of a new
gold property, the Burnt Hill property located in South-Central
Newfoundland. The property consists of 120 claims acquired
through an option agreement with local prospectors plus 87 claims
staked directly, a total of 207 claims.

The Burnt Hill Gold project property lies geologically along what
has been termed the "Tim Horton Complex", an arcuate belt of
ophiolitic ultramafic rocks, mafic and felsic volcanic rocks and
sediments that frame a window around older Gander Zone
metasediments. Significant zones of volcanogenic massive
sulphide and epigenetic gold mineralization are associated with
this arcuate belt. A prominent example is the recently
discovered Brady Prospect where gold mineralization is reported
to be associated with pyrite and arsenopyrite in altered mafic
volcanics and quartz porphyries. Linear Resources has reported
up to 1.4 grams per tonne gold over 18.9 m in recent drilling on
the Brady property.

The Burnt Hill claims are approximately 10 km southwest of the
Brady property and separated from it by the Partridgeberry Hills
Granite. The Burnt Hill property hosts a significant zone of
silica-sericite-arsenopyrite alteration in felsic volcanics.
This alteration zone, which is over 300 m long and up to 15 m
wide, was discovered during regional follow-up of airborne EM
(AEM) anomalies during base metal exploration conducted by Rio
Tinto in 1980. A single diamond drill hole designed to test an
AEM conductor within this alteration zone returned 2.3 grams per
tonne gold over 2.0 m within a 12.3 m wide zone with anomalous
gold and arsenic values. The property also hosts a number of
quartz veins within the contact zone of the Partridgeberry Hills
granite where values up to 0.4 grams per tonne gold were reported
from sampling conducted during government mapping surveys.

Cornerstone is compiling data from all previous work in the Burnt
Hill area to identify target areas for follow-up. As soon as
this work is complete, discussions will be initiated with
potential joint venture partners.

Cornerstone's option on the 120 claims acquired from local
prospectors is exercisable over a period of three years under
terms that include cash payments totaling $55,800, the issuing of
a total of 55,000 common shares, and sufficient exploration
expenditures to maintain the claims in good standing. The option
agreement also provides the vendors with a 2% NSR, 1% of which
Cornerstone may purchase for $500,000. First year commitments
are $11,200 in cash and 15,000 shares.

Cornerstone is actively exploring throughout Newfoundland and
Labrador for gold, base metals and PGEs. The Company is currently
engaged in seventeen projects, eight with joint venture partners.


On Behalf of the Board of Directors

Glen H. McKay, President

-30-

FOR FURTHER INFORMATION PLEASE CONTACT:
Cornerstone Capital Resources Inc.
Tim Froude
VP Exploration
[phone] or Toll Free: 1-877-277-8377
or
Cornerstone Capital Resources Inc.
Mike Basha
Exploration Manager
[phone] or Toll Free: 1-877-277-8377
or
Cornerstone Capital Resources Inc.
Deborah Thiel
Corporate Development and Investor Relations
[phone] or Toll Free: 1-877-277-8377
Email: [e-mail]
Website: www.cornerstoneresources.com
The TSX Venture Exchange (TSXV) has not reviewed and does not
accept responsibility for the adequacy or accuracy of this
release.