The full text of our latest news release appears below. It can also be read at http://www.cornerstoneresources.com/s/NewsReleases.asp

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Rosanne Williams, B.Sc., B.B.A
Manager Corporate Communications
mailto:williams@crigold.com
Direct Line: (709) 745-4455
Toll Free: 1-877-277-8377
Fax: (709) 747-1183

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Re: Press Releases - Wednesday, August 29, 2007
07-16 - Cornerstone partners with Phelps Dodge Corporation of
Canada, Limited to explore for copper in New Brunswick
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Mount Pearl, NL, Canada: Cornerstone Capital Resources Inc.
(TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNFN) today announced a Joint
Venture/Earn-in Agreement with Phelps Dodge Corporation of Canada,
Limited ("Phelps Dodge"), a wholly owned subsidiary of Freeport-McMoRan
Copper & Gold Inc., to explore for sediment-hosted, stratiform copper
(SSC) deposits in the Maritimes Sedimentary Basin of southeastern New
Brunswick.

Cornerstone generated an exploration program for copper in New
Brunswick in mid-2006 and subsequently staked 282 claims (45.12 sq km)
in two licences approximately 60 km apart covering two significant
SSC-type copper prospects. The more northerly licence includes the
past-producing Dorchester Copper Mine and its northern strike
extension. The Dorchester deposit is reported to host a historic
resource of 6 million tonnes of low-grade copper, including zones of
2-10% Cu. The second licence, some 60 km southwest from Dorchester,
covers the Goshen Copper Prospect, which is reported to host 25,000
tonnes of 2.25% Cu. (Note: These resource figures, reported on the New
Brunswick Department of Natural Resources website, are not National
Instrument 43-101 compliant.). CVRD-Inco recently staked a large claim
position between these two licences. (A map showing the properties is
available on the Cornerstone Web site at www.cornerstoneresources.com.).

This initiative is an extension of Cornerstone's previous work in the
Codroy Sedimentary Basin of Southwestern Newfoundland, where a joint
venture was also undertaken with Phelps Dodge (See Press release dated
August 25, 2005).

The sedimentary basins of southeast New Brunswick currently produce
natural gas, oil, salt and potash. The basins all indicate a geologic
environment that is potentially favourable to the development of SSC
mineralization. The last drilling for copper mineralization in the
Dorchester Mine area was completed in the late 1970s. Understanding of
the controls of SSC-type mineralization and the regional geological
setting of south-eastern New Brunswick has improved vastly since that
time.

The Earn-in Agreement will be structured in two phases during the 4
year Earn-in Period. During Phase I (Year 1), the work will consist of
mapping and prospecting focused on defining drill targets along the
Dorchester Mine horizon, north of the historic mine, and at the Goshen
Prospect. In this first phase, Phelps Dodge will make cash payments to
Cornerstone of US$25,000 and the two companies will jointly fund a
US$175,000 exploration program to which Phelps Dodge will contribute
US$100,000 (57%) and Cornerstone US$75,000 (43%). On completion of
Phase I, Phelps Dodge may elect to enter into Phase II, whereby it can
earn a 51% interest in the property by spending US$3 million on
exploration and making cash payments to Cornerstone totaling US$225,000
over three years. Upon earn-in, Cornerstone may elect to participate at
49% or give Phelps Dodge the option, under certain conditions, to
increase its interest to 75%.

Cornerstone gratefully acknowledges a CDN$40,000 grant from the New
Brunswick Department of Natural Resources, under their Junior Mining
Assistance Program (JMAP), to conduct exploration on the Dorchester
Property.

Copper and silver are the metals of primary interest in the project,
but the work will also document results pertaining to other metals,
such as uranium and gold, for which the area may also be prospective.
The Phase I work program is currently under way. Cornerstone will be
the project operator during the earn-in period.

Cornerstone's President and CEO, Glen H. McKay, commented: "Expanding
into New Brunswick further demonstrates Cornerstone's ability to
generate exploration projects and attract respected joint venture
partners, such as Phelps Dodge, to advance the projects. This is the
third joint venture agreement that Cornerstone has entered into with
Phelps Dodge to explore for SSC-type deposits, since 1999."

The New Brunswick project is in addition to currently active projects
in the Voisey's Bay Nickel area and the Michelin Basin (uranium) in
Labrador; the Central Mineral VMS belt, the Green Bay copper mining
district, the Deer Lake basin (uranium) and the Burin Peninsula gold
project in Newfoundland and gold and VMS projects in Ecuador.

Cornerstone Capital Resources Inc. is a mineral exploration company
with 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.
Cornerstone's current and past joint venture partners include Agnico
Eagle, Celtic, Cash Minerals, Candente, Coastport, Cogitore,
Falconbridge, Inmet, Kermode, Mountain Lake, Moydow, Noranda, Phelps
Dodge, and Thundermin.

This press release was prepared by Bruce Mitton, PGeo, Exploration
Manager Canada for Cornerstone and a Qualified Person as per National
Instrument 43-101.

On Behalf of the Board,
Glen H. McKay
President & 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.

The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.

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Copyright (c) 2007 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 Wed Aug 29, 2007 at 5:00:00 AM Pacific Time
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