Cornerstone Capital Resources Inc announced that it has concluded a Definitive Agreement with its joint venture partner that will allow diamond drilling to commence immediately on the Gama Prospect, located in the NW portion of the Company's flagship Shyri Gold-Copper Project in southern Ecuador.

The Shyri Project is the subject of an Option Agreement with partner Intrepid Mines Ltd. As previously announced (see news release dated Oct 29, 2009), Intrepid has the option to acquire an initial 60% interest in Cornerstone's Shyri Project which is located in central Ecuador, approximately 350km south of Quito and 150km north of the border with Peru. Under the terms of the Agreement, Intrepid has the ability to earn an initial 60% interest in the Shyri property by spending USD 6.0 million dollars over 5 years, with a firm commitment of USD 1.0 million in the first year.

Mr Glen H McKay president & CEO of Cornerstone Capital Resources Inc said that "We have consistently told shareholders that both Cornerstone and Intrepid would move quickly to a drilling program once approval was received from the Ecuadorian government. The Agreement formalizes our intention to aggressively explore this highly prospective property. We expect to release results from the program on a consistent and timely basis."

Cornerstone is the operator of the exploration program. Technical teams from Cornerstone and Intrepid have worked closely together to define the current suite of drill targets and to plan the ongoing regional exploration program within the broader Shyri Project area.