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Re:   News - Monday, October 15, 2012
      12-22 - Cornerstone Provides Exploration Update
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Mount Pearl, NL, Canada: Cornerstone Capital Resources Inc.
("Cornerstone") (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) today provided
an update on its active exploration projects in Ecuador, Chile and
Canada.

Brooke Macdonald, Cornerstone's President and CEO said "Despite the
challenging market conditions for exploration and mining companies, we
have remained active on our key projects. This can largely be
attributed to the success of our prospect generator business model
under which our partners fund the majority of the exploration programs
and we retain a significant minority participating interest. Upcoming
exploration drilling on several projects, including Shyri and Cascabel
in Ecuador, and La Fortuna in Chile, provide opportunities for large
new discoveries, while planned definition drilling at the Little Deer
copper project in Newfoundland will help advance that project towards
the pre-feasibility stage".

ECUADOR

Shyri

The 300 km2 Shyri property is located in Azuay Province in southern
Ecuador, and is targeting porphyry gold-copper and epithermal
gold-silver deposits. The property is subject to an option and joint
venture agreement with Intrepid Mines Limited which is earning an
initial 60% interest by spending US$6 million over five years.

Exploration programs over the past two years have focused primarily on
porphyry gold-copper targets in the Gama prospect area located in the
northwest part of the property. During 2011, two phases of diamond
drilling (totaling 4,279 m in 13 holes) were completed on the Boqueron
target area. The drilling confirmed the existence of porphyry
intrusions at depth with associated alteration and gold-copper
mineralization. The best result was returned from hole GAD-11-002 which
intersected 45 metres (m) at 0.71 g/t gold and 0.18% copper within a
broader mineralized zone that returned 0.41 g/t gold and 0.13% copper
over 101 m.

During 2012, exploration work has included detailed geological mapping,
soil geochemistry and ground geophysical surveys (magnetics and induced
polarization) focused on the Satoshuaycu porphyry target area which is
located approximately 2 km west of Boqueron and at 300-500 m lower
elevation. The Satoshuaycu target shows characteristics of a very large
(4 km by 1 km) mineralized porphyry system including: 1) outcropping
porphyry intrusions; 2) associated hydrothermal alteration zone(s); 3)
coincident gold-copper-molybdenum soil geochemistry anomalies; 4)
magnetic high; and 5) associated induced polarization chargeability
anomalies. New porphyry and epithermal style targets are currently
being tested with the induced polarization survey.

In September 2012, Dr. Jeffrey Hedenquist spent 6 days visiting the
property, reviewing data and results from surface exploration work and
drilling programs, and participating in the design of future
exploration programs. Dr. Hedenquist, a world-renowned expert on
epithermal and porphyry deposits, initially visited and reported on the
Shyri property in 2006 and 2007, and his continued involvement in the
project provides tremendous support in developing deposit models for
this very large and complex system.

On September 27, a phase 3 drilling program (2,500 m in 5 holes)
designed to test the Satoshuaycu porphyry target was announced. The
program is expected to commence in mid-October, and results will be
announced as they become available.

Meanwhile, we continue to seek permits required for phase 1 drill
programs at the Vetas Grandes and Ca�aribamba prospects located in the
southern part of the Shyri property. Comprehensive exploration programs
have been carried out on these prospects over the past several years,
and both prospects are drill-ready.

Cascabel

The 50 km2 Cascabel property is located in Imbabura Province in
northern Ecuador, approximately 120 km north of Ecuador's capital city,
Quito, and 20 km south of the Colombian border. The project is
targeting porphyry gold-copper deposits, and is subject to an option
and joint venture agreement with SolGold Plc which is earning an
initial 65% interest by spending US$7.8 million over four years.

During 2012, exploration work has included geological mapping and
prospecting, stream sediment geochemistry and panning surveys, and rock
chip and detailed channel sampling of outcrops in stream valleys. Two
main areas of outcropping porphyry gold-copper mineralization have been
identified at Quebrada Moran ("Moran") and Quebrada Alpala ("Alpala").
These areas are 1.5 km apart and are interpreted to represent portions
of a single large porphyry gold-copper system. The target area shows
characteristics of a large (2 km by 1 km) mineralized porphyry system
including: 1) outcropping areas of porphyry hydrothermal alteration and
mineralization, including mineralized "B" veins with chalcopyrite and
magnetite; 2) areas of sheeted B veins with up to 4.9 g/t gold and 1.3%
copper; and 3) significant areas of gold and copper enrichment with
representative rock chip samples returning > 1 g/t gold and > 1%
copper.

In mid-August, SolGold's Chief Geologist - Dr. Bruce Rohrlach, visited
the Cascabel project and added significantly to developing a better
understanding of the property geology and deposit model(s). Dr.
Rohrlach brings considerable technical expertise on porphyry and
epithermal deposits, having spent 25 years working on similar deposits
in Australia, the Philippines, Papua New Guinea and throughout South
America.

Ongoing work includes detailed geological mapping and channel sampling
of outcropping porphyry mineralization, systematic soil sampling over
the main target area (5 km by 3 km) and a property wide
helicopter-borne magnetic and radiometric survey. Once all results have
been compiled and interpreted, targets will be prioritized for a phase
1 drilling program which is expected to begin in Q1 2013.

Bella Maria

The 10.4 km2 Bella Maria property is located in El Oro Province in
southwest Ecuador, approximately 50 km southeast of the provincial
capital city of Machala. The project is targeting porphyry gold-copper
deposits and is 100%-owned by Cornerstone.

During 2012, exploration work has included geological mapping and
prospecting, stream sediment geochemistry and panning surveys, and soil
and rock sampling. The property is underlain by a series of
granodiorite and quartz diorite porphyries that intrude metamorphosed
volcanic and sedimentary rocks of the El Oro Metamorphic Complex.
Highlights of work completed to date include:

.. Four mineral prospects identified: 1) Pavas Breccia; 2) Central
Breccia; 3) Southeast Breccia; and 4) Vega Rivera Porphyry
.. Stream sediment geochemistry survey (44 samples collected): 26
samples returned > 0.1 g/t gold, including 11 that returned > 1 g/t
gold.
.. Panned stream sediment sampling (96 samples collected): 59 sampling
sites showed gold grains, including 28 sites with > 10 gold grains.
.. Rock sampling (262 samples collected): 97 samples returned > 0.1 g/t
gold including 29 sampled that returned > 1.0 g/t gold; 166 samples
returned > 0.01% copper including 13 samples that returned > 0.1%
copper.
.. Soil sampling (725 samples collected by Cornerstone and a predecessor
company): define a large (3.5 km by 1.5 km) coincident gold- and
copper-in-soil anomaly in the central part of the property.

Although at a very early stage of exploration, mineralization styles at
Bella Maria appear similar to those at Odin Mining and Exploration
Limited's "Greater Cangrejos" project, which is contiguous to the
south. Diamond drilling at Greater Cangrejos has returned encouraging
results including 192 m at 1.5 g/t gold and 137.3 m at 1.27 g/t gold in
a mineralized porphyry at the Trinchera / Paloma target, and 6 m at
8.96 g/t gold and 2 m at 14.2 g/t gold in at the Casique target, where
higher grade mineralization is hosted in structures and hydrothermal
breccia zones.

Cornerstone is actively seeking a joint venture partner to advance
exploration at Bella Maria.

La Encrucijada

The 80.85 km2 La Encrucijada property, which was acquired in March 2011
from an Ecuadorian exploration company, is located in south-central
Ecuador in Loja province, 100 km south of the city of Cuenca. The
property lies between two major northeast (NE) trending regional faults
and within a NE oriented epithermal belt which hosts significant
copper-gold porphyry and gold-silver epithermal prospects.

Geological crews carried out prospecting work over the entire project
area to verify the earlier exploration results and to extend the
reconnaissance geological mapping and sampling program over the balance
of the project area that had not been previously explored. This work by
Cornerstone confirmed the potential of the property to host significant
epithermal high-sulphidation (HS) gold-silver mineralization at the
Marcoloma prospect and structurally controlled intermediate
sulphidation (IS) gold-silver and base metal mineralization at the
Alumbre prospect. A new epithermal HS alteration zone was identified at
Potrerillos. Ridge and spur soil sampling on the Alumbre sector on the
northern part of the property defines a gold-in-soil anomaly measuring
1,000 m by 500 m that is open in one direction. A second 500 m by 400 m
gold anomalous area has been defined to the south. 

CHILE

La Fortuna

The 29 km2 La Fortuna property is located in the Valpara�so Region of
central Chile, approximately 100 km north of Santiago.  The project is
favourably located in an established mining district at relatively low
elevations (1,200 to 1,800 m above sea level), and is easily accessed
by existing roads. The property is partly contiguous with the Cerro
Negro copper-silver mine, a manto-type deposit immediately to the west
which combines open pit and underground operations and produces copper
cathodes via heap leach SX-EW and copper-silver concentrates via
flotation.

Cornerstone has the right to acquire a 100% interest in the La Fortuna
property by incurring exploration expenditures of CAN$3.0 million and
making cash payments totalling CAN$600,000 over a 4-year period
($70,000 at signing, $30,000 at end of year 1 and $500,000 at end of
year 4 if the option is exercised). The acquisition is subject to a
1.5% Net Smelter Royalty ("NSR"), and to advance payments of the NSR on
each anniversary following the date the option is exercised.
Cornerstone has a right of first refusal to purchase the NSR if the
holder decides to sell it.

Over the past year and a half, Cornerstone has carried out an
exhaustive exploration program at La Fortuna which has included
geological mapping and prospecting, ground geophysical surveys
(detailed magnetics and induced polarization), and hand trenching and
channel sampling. The trenching program was highlighted by trench #1,
where continuous channel sampling returned 1.34% copper and 58.0 g/t
silver over 19.5 m. All of the exploration data has been integrated
into a 3-dimensional model and 8 drill target areas have been defined.
A phase 1 drill program comprising 5,400 m in 18 holes has been
proposed, and will be carried out subject to financing or partner
funding.

Cornerstone has signed confidentiality agreements with several
companies who have expressed interest in partnering on the project.

CANADA

Little Deer

The Little Deer property is located in north-central Newfoundland,
approximately 10 km north of the town of Springdale. The property hosts
the past-producing Little Deer and Whalesback VMS copper deposits. The
property is subject to a 50/50 joint venture agreement with Thundermin
Resources Inc., the Little Deer Joint Venture ("LDJV"), with Thundermin
being the project operator.

The LDJV has carried out various exploration programs over the past
five years, most of which have been focused on the Little Deer Copper
Deposit ("Little Deer") and comprised primarily of diamond drilling.
Since 2007 the LDJV has completed approximately 48,800 m of diamond
drilling in 82 holes on Little Deer resulting in National Instrument
43-101 ("NI 43-101") compliant Indicated Resources of 1,911,000 tonnes
grading 2.37% Cu (99.8 million pounds of copper) and Inferred Resources
of 3,748,000 tonnes grading 2.13% Cu (175.0 million pounds of copper).
The LDJV has also completed metallurgical testing and a Preliminary
Economic Analysis ("PEA") for Little Deer, both of which produced
positive results.

During 2011 and early 2012, the LDJV completed a compilation of
historical drill hole and mine data for the Whalesback Copper Deposit
("Whalesback") which was followed up with a 14 hole, 6,198 m drill
program. A subsequent NI 43-101 compliant resource estimate for
Whalesback resulted in Indicated Resources of 797,000 tonnes grading
1.67% Cu (29.3 million pounds of copper) and Inferred Resources of
443,000 tonnes grading 1.57% Cu (15.3 million pounds of copper). Also
during 2012, bore hole Pulse-EM geophysical surveys were completed on
six of the new Whalesback drill holes and surface Pulse-EM geophysical
surveys were completed over several untested airborne conductors
located approximately 3 km east of the deposits. Currently the data is
being reviewed by our geophysical consultants with the interpretation
report pending. This work is expected to direct future drilling at
Whalesback and possible drill testing of the airborne conductors.

Further work in Q4 2012, subject to financing, includes a definition
diamond drilling program at Little Deer which will consist of
approximately 7,000 m of drilling in 9-10 holes in the eastern, higher
grade, portion of the deposit. This work would be followed by
additional definition drilling in 2013 in other areas of the deposit.
This work is designed to upgrade the Inferred Resources to the
Indicated Resource category in order that a pre-feasibility study can
be undertaken on the deposit.

Cape Ray

The Cape Ray property is located in southwest Newfoundland
approximately 25 km northeast of the town of Port aux Basques. The
property hosts two undeveloped gold-silver deposits -- the 51 Zone of
the historic Cape Ray gold deposit and the Windowglass Hill deposit.

On July 18, Cornerstone announced the results of a NI 43-101 mineral
resources estimate which was carried out by Mercator Geological
Services Limited on the 51 Zone and Windowglass Hill deposits.
Highlights include:

.. 51 Zone - Inferred resources of 530,000 tonnes grading 6.10 g/t gold
and 15.86 g/t silver containing 103,943 ounces of gold and 270,253
ounces of silver (2.5 g/t gold cut-off)
.. Windowglass Hill - Inferred resources of 1,810,000 tonnes grading
1.77 g/t gold and 11.28 g/t silver containing 103,001 ounces of gold
and 656,415 ounces of silver (0.5 g/t gold cut-off)
.. Mineralization is relatively shallow at a maximum of 270 metres
vertically below surface for the 51 Zone and 140 metres for Windowglass
Hill
.. Opportunities exist to upgrade and expand the mineral resources

The NI 43-101 Technical Report in support of the mineral resource
estimate was filed on SEDAR on August 31. On September 20, Cornerstone
announced that it had signed a binding letter of intent ("LOI") with
Benton Resources Inc. outlining the terms of an option/joint venture
agreement for the Cape Ray property. Under the terms of the LOI, Benton
has the ability to earn an initial 70% interest in the property by
spending CAN$2 million on exploration, and making payments of
CAN$125,000 and 155,000 shares over 4 years. Benton can earn an
additional 5% (taking their interest to 75%) by incurring an additional
CAN$1 million in exploration expenditures at its sole election but such
election must be made within a period not exceeding 18 months from the
date that Benton's interest vests at 70%.

Currently Benton, in collaboration with Cornerstone, is planning
upcoming exploration programs for the project. Both partners feel there
is excellent potential to expand existing resources, as well as for new
discoveries along the Cape Ray Fault Zone.

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.

Qualified Person(s)
The technical information contained in this news release has been
reviewed and approved by Terry Brace, P.Geo., Cornerstone's VP
Exploration (Canadian projects) and Yvan Crepeau, P.Geo., President of
Cornerstone Ecuador S.A. and Minera Cornerstone Chile Limitada
(Ecuadorian and Chilean projects), both of whom are qualified persons
in accordance with National Instrument 43-101.

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

Investor Relations:
Email: ir@cornerstoneresources.ca
North America toll-free: 1 (877) 277-8377

The link to a recent Corporate presentation is:
http://www.cornerstoneresources.com/i/pdf/Presentations_0912_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 communications@crigold.com;
or toll free at 1-877-277-8377.

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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Copyright (c) 2012 CORNERSTONE CAPITAL RESOURCES INC. (CGP)  All rights
reserved.  For more information visit our website at
http://www.cornerstoneresources.com/ or send
mailto:info@cornerstoneresources.com
Message sent on Tue Oct 16, 2012 at 9:30:00 AM Pacific Time


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