Mount Pearl, NL, Canada: Cornerstone Capital Resources Inc. ("Cornerstone") (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) announced today that it has completed a 1,160 metre, 10 hole diamond drilling program on the El Strato gold property in north-central Newfoundland. The program successfully intersected a new gold-bearing breccia zone grading 3.15 g/t Au over a core length of 3.2 m along the southwest portion of the Rocky Bottom trend (see Table 1 and Figure 1 for a summary of the results). This new mineralized zone is the widest drill intersection encountered on the property to date and is open in all directions.

Brooke Macdonald, President of Cornerstone, said "The discovery of a new gold-bearing zone grading 3.15 g/t Au over 3.2 m represents the first significantly wide gold intersection to date on the El Strato property, and confirms the potential for mineable widths. We are encouraged by these results and will be planning a follow-up exploration drilling program to further evaluate the extent of the gold mineralization."

The drilling program primarily tested near-surface anomalies generated by work completed in 2010 that included an Induced Polarization (IP) survey, soil geochemistry survey, prospecting and a follow-up mechanical trenching program. The IP survey identified the DD trend, a 1.25 km long IP chargeability anomaly and the Rocky Bottom trend, a 1.75 km long IP chargeability anomaly. Three holes (ES-11-20 to 22) tested the DD trend along 700 m of its strike length. Holes ES-11-20 & 21 encountered locally weakly anomalous gold values ranging from 5 to 220 ppb Au. Hole ES-11-22, the northernmost hole along the trend, intersected typically weakly anomalous gold values (5 - 112 ppb Au) including a high of 2.23 g/t Au over 0.3 m in mafic volcanic rocks with quartz-carbonate patches. Three holes (ES-11-23 to 25) were drilled along the Rocky Bottom trend and intersected significant gold grades. Hole ES-11-23 intersected 3.15 g/t Au over 3.2 m in a breccia and 14.23 g/t Au and 20.3 g/t Ag over 1.2 m in a narrow quartz vein that was drilled partially down dip. Hole ES-11-24 intersected 2.16 g/t Au over 1.6 m in a shear zone and hole ES-11-25 intersected 3.01 g/t Au over 0.8 m in a quartz-veined shear zone. A more detailed description of the DD and Rocky Bottom trends is provided in a news release dated October 4, 2010.

Hole ES-11-26 tested the Mega Vein, an approximately 8 m wide quartz vein exposed at surface. The hole intersected only weakly anomalous gold including 20 ppb Au over 0.9 m in a quartz vein. Hole ES-11-27 tested the Triple N showing, from which grab samples assayed up to 4.2 g/t Au. The hole intersected 2.28 g/t Au and 8.8 g/t Ag over 0.2 m and 1.16 g/t Au and 11.1 g/t Ag over 0.25 m in narrow zones of quartz veining.

The Arrowhead showing, a >1 m wide sub-cropping mineralized quartz vein that has returned values up to 54.3 g/t Au in grab samples, was tested by holes ES-11-28 and 29. Hole ES-11-28 intersected the Arrowhead quartz vein which returned 143 ppb Au over 0.4 m. Hole ES-11-29, collared 110 m to the southwest of ES-11-28, intersected 7.39 g/t Au over 0.8 m including the Arrowhead quartz vein which assayed 18.7 g/t Au and 8.4 g/t Ag over 0.3 m.

Gold intercepts noted above typically contain variable amounts of sulphide mineralization comprised of pyrite and/or sphalerite and/or galena and/or minor chalcopyrite. See website for additional information regarding the El Strato property (www.cornerstoneresources.com).

Table 1: El Strato Drill Results

Hole No.	Drill Target Area	Location (UTM NAD 27 Z21)		Azimuth (o)	Dip (o)	Length (m)	From (m)	To (m)	Interval* (m)	Au (g/t)**
		Easting	Northing
ES-11-20	DD Trend	540,885	5,494,413	290.0	-44.1	131	locally weakly anomalous Au (ranging from 5-80 ppb Au)
ES-11-21	DD Trend	540,918	5,494,518	295.6	-42.4	125	locally weakly anomalous Au (ranging from 5-220 ppb Au)
							90.35	91.85	1.5	191 ppb
ES-11-22	DD Trend	541,171	5,495,047	291.5	-44.0	131	typically anomalous Au (5-112 ppb Au)
							78.8	79.1	0.3	2.23
ES-11-23	Rocky Bottom Trend	541,732	5,494,427	293.8	-42.5	125	92.8	94.0	1.20***	14.23
							96.4	99.6	3.2	3.15
ES-11-24	Rocky Bottom Trend	542,033	5,494,857	124.8	-42.6	95	72.0	73.6	1.6	2.16
							92.57	92.77	0.2	3.62
ES-11-25	Rocky Bottom Trend	542,204	5,494,975	126.6	-42.3	110	55.0	55.8	0.8	3.01
ES-11-26	Mega Vein	541,837	5,495,284	291.9	-43.3	53	locally weakly anomalous Au (ranging from 5-188 ppb Au)
							26.5	27.4	0.9	20 ppb
ES-11-27	Triple N Trench	542,224	5,495,889	303.5	-43.2	140	37.15	37.35	0.2	2.28
							48.4	48.65	0.25	1.16
ES-11-28	Arrowhead Showing	542,772	5,495,586	297.3	-43.1	140	63.2	63.6	0.4	143 ppb
							74.7	75.55	0.85	234 ppb
ES-11-29	Arrowhead Showing	542,727	5,495,483	297.8	-43.0	110	42.3	43.1	0.8	7.39
							77.5	77.9	0.4	1.21
Total=						1,160

* all lengths noted are core lengths as true thickness is unknown at this time
** gold grades are in grams per metric tonne (g/t) unless otherwise noted as parts per billion (ppb)
*** drilled partially down-dip

Qualified Person

Brad Dyke, P.Geo., Project Geologist for Cornerstone, is the Qualified Person in accordance with National Instrument ("NI") 43-101 responsible for supervising the diamond drilling program on the El Strato property. Mr. Dyke has reviewed and approved the technical contents of this news release. All holes drilled by Cornerstone are BQTK in size. Photographic logging of all drill core was performed systematically prior to assaying. The core is logged and select sections, where appropriate, are sawn in half at a core logging facility in Springdale. Half of the core is submitted for analyses to Eastern Analytical Limited, an independent and qualified assayer located in Springdale, Newfoundland and the remaining half of the core is kept for future reference. Blanks, duplicates and standards are routinely used as part of the assay procedures.

Junior Exploration Assistance Program

Cornerstone would like to acknowledge financial support from the Junior Exploration Assistance (JEA) Program of the Province of Newfoundland and Labrador in carrying out the 2011 diamond drilling program on the El Strato property.

Other News:

Proceeds of $937,500 have been received from the exercise of the Company's remaining outstanding warrants. On June 24, 2011, the Company gave notice to warrant-holders that it was accelerating the expiry date as per the terms of the warrant agreement and all 4,687,500 warrants were exercised by the warrant-holders.

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