Mount Pearl, NL, Canada: Cornerstone Capital Resources Inc. ("Cornerstone") (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) today announced that the Ministry of Environment (ME) of Ecuador has granted the environmental license for Cornerstone's La Encrucijada gold-silver-copper project located in southern Ecuador (see news releases of February 17, March 29 and June 28, 2011). The environmental license is valid for the 4-year initial exploration phase of the project which covers 8,085 hectares. A reconnaissance field program has recently commenced, which includes geological mapping and prospecting of the entire property, as well as a reassessment of previously defined gold-silver anomalous areas. All project data will be integrated into Cornerstone's regional database and a mineralization model defined. Results of the initial reconnaissance work will be announced later this fall.

"Previous results from La Encrucijada indicate that the property offers excellent potential for hosting significant epithermal gold-silver and porphyry copper-gold deposits" said Brooke Macdonald, Cornerstone's President. "The current field program is the first step in advancing the property to a drill-ready stage and a potential joint venture partnership".

La Encrucijada project
The La Encrucijada project is located in Loja province in southern Ecuador, approximately 70 km south of the city of Cuenca and midway between Cornerstone's Shyri and Caña Brava properties. The property lies within a northeast trending belt which hosts high-sulphidation epithermal gold-silver systems and associated porphyry systems at depth. It is underlain by flat-lying Tertiary intermediate to felsic volcanic rocks which are locally intruded by diorite plugs. Extensive areas of felsic hydrothermal breccias have been mapped in the central part of the property, and porphyry-style potassic alteration underlies silica-alunite advanced argillic alteration. Anomalous gold (>0.1 g/t Au) and silver (>10 g/t Ag) is widespread throughout the area. Higher grade gold (7 samples >1 g/t Au, up to 5.23 g/t Au) and silver (18 samples >30 g/t Ag, up to 1,110 g/t Ag) is commonly associated with silica alteration and veins, as well as breccias and structures (faults and mylonite zones). Very little work has been carried out on the property. Channel sampling of rock outcrops by previous owners along the Alumbre River, 2 km to the north, returned 110 m averaging 0.67 g/t Au and 1.7 g/t Ag, including a higher grade 45 m-wide section averaging 0.95 g/t Au and 2.4 g/t Ag. A limited soil geochemistry survey (531 samples) has been carried out in the central part of the property. Results define a northwest-striking gold and silver soil anomaly which is more than 1 km in length, and is open to the southeast.

Three concessions (3,125 hectares) located in the central part of the property are optioned from a 3^rd party, with Cornerstone holding the right to earn a 100% interest in return for cash payments of $60,000 per year beginning in year 4 and a final payment of $400,000 to exercise the option. The option agreement had been in effect for 18 months when exploration work was suspended by the Mining Mandate. Cornerstone owns a 100% interest in two additional concessions covering 49.6 km² which surround and are contiguous with these optioned concessions.

A map showing the location of the La Encrucijada project is provided here: (http://www.cornerstoneresources.com).

Qualified Person

Yvan Crepeau, M.Ba., P.Geo., President 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 La Encrucijada project and has reviewed and approved the information contained in this news release.

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