To unsubscribe from this list please reply to this E-mail with "UNSUBSCRIBE" in the subject line.

======================================================================
Re: Monday, September 10, 2007
Cornerstone August Update
======================================================================

Dear Shareholder/Subscriber,

Since my last update, August 2nd, we've been very busy working on both
our advanced and generative projects. Following is a quick update on
projects that are being drilled or are ready for the drilling stage:

1. Bobby's Pond VMS project in Newfoundland which is under JV with
Mountain Lake Resources (MLR). -- On July 26th Mountain Lake Resources
Inc. (TSX-V: MOA) announced that it had encountered widespread base
metals in two of the three holes completed on the Cornerstone claims.
Targeting for additional drill holes will be determined once the
results of the downhole Pulse EM surveys have been received. For the
remainder of this year, attention will be focused on field programs to
generate targets for drill testing on the Cornerstone Option to the
northeast of Mountain Lake's 100% owned mining lease. We are very
pleased with the results from this, our first drill program this
season. http://www.cornerstoneresources.com/s/NewsReleases.asp
(Location -- Buchan's Zn-Cu-Pb-Au-Ag Mining District in Newfoundland)
http://www.cornerstoneresources.com/s/Newfoundland.asp?ReportID=136409

2. Little Deer Copper Deposit in Newfoundland which is under JV with
Thundermin Resources (the third JV between Cornerstone and Thundermin).
-- as announced on July 10th a 5,300 m drill program has commenced.
(Location -- Green Bay Cu-Au Mining District in Newfoundland). The LDJV
partners feel that the Little Deer deposit has potential to be expanded
and we look forward to receiving the assay results from the lab for the
first two holes. (See
http://www.cornerstoneresources.com/s/NewsReleases.asp &
http://www.cornerstoneresources.com/s/Newfoundland.asp?ReportID=183644)

3. Garland Lake Nickel project in Labrador which is under JV with
Celtic Minerals. -- On August 28th Celtic announced that a 750 m drill
program had commenced. News of the program will be released as it made
available by Celtic. (Location -- Voisey's Bay Ni-Cu-Co Mining
District in Labrador)
http://www.cornerstoneresources.com/s/Labrador.asp?ReportID=136483

4. Shyri Gold project in Ecuador which is under JV with Coastport
Capital. -- A 15,000 m drill program is being planned and will commence
upon receipt of drill permits. Cornerstone has initiated the process
required to obtain drill permits. (Location -- contiguous with
Iamgold's Quimsacocha gold project in Ecuador, which hosts 3.4 million
oz. gold)
http://www.cornerstoneresources.com/s/Ecuador.asp?ReportID=136203

5. La Plata VMS project in Ecuador which is under JV with Coastport
Capital. -- A field program designed to further assess several untested
coincident geophysical and geochemical anomalies was completed this
summer. Coastport will do a property review visit during September with
Cornerstone's VMS consultant, Dr. Jim Franklin, to review the results
of the program. Anticipating a decision to reactivate the drilling
program, the timing of the resumption of the remaining 4,585 m from the
Phase Two 8,000 m program will be subject to equipment availability.
(Location -- Macuchi Zn-Cu-Pb-Au-Ag Mining District in Ecuador)
http://www.cornerstoneresources.com/s/Ecuador.asp?ReportID=136199

6. Coney Arm Gold project in Newfoundland which is now held 100% by
Kermode and subject to certain back-in or NSR rights by Cornerstone, --
Kermode have not drilled any holes on Cornerstone's Coney Arm property
as yet during the current drill phase which started last fall. They
have no specific plans to drill on the Cornerstone claims as yet but
will be working their way in that direction from other ground they hold
in the Jackson's Arm area. (Location -- western Newfoundland -- Kermode
has earned in on the gold rights and Cornerstone retains the limestone
rights)
http://www.cornerstoneresources.com/s/Newfoundland.asp?ReportID=136416

In addition to these six JV funded drilling projects Cornerstone and/or
its partners have been active on three other JV projects and several
new, generative projects.

Newfoundland:

Deer Lake Uranium:
The airborne radiometric survey that Cornerstone is funding on the Deer
Lake Uranium project has been completed. We will issue a news release
upon receipt of the full interpretation of the results. The Deer Lake
Uranium project consists of 798 map-staked claims covering 199.5 km2 of
the Carboniferous-aged Deer Lake Basin. The basin is part of the much
larger Maritime Basin which underlies parts of Western Newfoundland and
extends through Nova Scotia, Prince Edward Island and New Brunswick.
http://www.cornerstoneresources.com/s/Newfoundland.asp?ReportID=168321

Codroy Uranium:
The Codroy Project, with geology similar to the Deer Lake project, is
being evaluated for its uranium potential.
http://www.cornerstoneresources.com/s/Newfoundland.asp?ReportID=136412

Burin Gold Projects:
A significant new early-stage gold-copper exploration program was
commenced earlier this summer on the Burin Peninsula. The focus of
this initiative is a 100 km long belt where limited historical work
identified three large gold bearing alteration systems, each of which
covers an area greater than 10 km2. These prospects occur within a
geological environment that is geologically equivalent to the terrane
which hosts the 1.6 million ounce (now mined) Hope Brook Gold Deposit.
The primary targets are epithermal-style gold-silver and porphyry-style
gold-copper mineralization. Early results are encouraging.
http://www.cornerstoneresources.com/s/Newfoundland.asp?ReportID=182453

Long Lake VMS:
In our May 7th release we noted with regard to the Long Lake project
which is under JV with Cogitore: "The (2006) drilling returned broad
intersections of altered and mineralized felsic volcanics including
several narrow sulphide stringers that gave assays up to 3.2% Zn over
0.2 m. The partners are planning to conduct a down-hole EM survey,
subject to equipment availability." Further drilling will be determined
by the results of that the down-hole survey. The survey has been
contracted and awaits equipment availability.
http://www.cornerstoneresources.com/s/Newfoundland.asp?ReportID=136422

Labrador:

Aillik Uranium:
Cash Minerals has advised us that due to weather delays they are still
waiting to have the airborne survey completed. They are planning to
undertake a short period of field work beginning mid-September and will
follow up this and the airborne work with some ground geophysics. Cash
Minerals has decided not to drill this year because with the delay in
the airborne work they will have insufficient time to review the data
for drill targeting.
http://www.cornerstoneresources.com/s/Newfoundland.asp?ReportID=168321

Nickel Projects:
Our exploration department has been carrying out work programs that we
will report on when the results are available.
http://www.cornerstoneresources.com/s/Labrador.asp?ReportID=136436

New Brunswick:

Dorchester and Goshen Copper:
On August 29 we announced a new agreement with Phelps Dodge Corporation
of Canada, Limited to explore for copper in New Brunswick, on the
Dorchester and Goshen projects.
http://www.cornerstoneresources.com/s/NewsReleases.asp This is the
third time that Cornerstone has entered into an exploration agreement
with Phelps Dodge, now a subsidiary of Freeport McMoRan Copper & Gold
Inc., and we are very pleased to be working with them again, especially
on our first JV project in New Brunswick. For more information go to
http://www.cornerstoneresources.com/s/Newbrunswick.asp?ReportID=171723

Dorchester Copper Project
Our Dorchester Copper Project includes the former Dorchester Mine that
produced copper during the late 1800s and again during the First World
War. Mineral exploration companies operating there during the 1970s
provided historic resource estimates of copper. (Note: These estimates
do not meet the requirements of NR43-101.) The past-producing mine's
Sediment-hosted Stratiform Copper (SSC) mineralization was located in a
Carboniferous-aged sedimentary bed cut by regional faults. The faults
likely provided possible conduits for copper-bearing fluids to migrate
and the specific sedimentary bed that hosts the deposit provided a
receptive site for the copper mineralization to precipitate. The folded
extension of this favourable bed is interpreted to underlie much of the
area of the current mineral claims. The sedimentary basins of southeast
New Brunswick currently produce natural gas, oil, salt and potash. The
presence of these commodities indicates a geologic environment that is
very favourable for the development of SSC mineralization.
The contract for a large soil geochemical survey has been awarded with
the work expected to be completed by month's end. The survey will cover
the interpreted strike extension of the sedimentary bed which hosts the
copper mineralization at the former mine.

Goshen Copper Project
Similar to the Dorchester area, the copper mineralization located on
the Goshen Copper Project is indicative of the good exploration
potential of the Goshen area.

Elgin Uranium:
Cornerstone will be commencing field exploration programs on the Elgin
Uranium project in September to investigate the source of the historic
airborne radiometric anomaly. As announced on April 10th, Cornerstone
staked a block of 102 claims (16.3 sq km) over an airborne radiometric
anomaly on the Neoproterozoic-Carboniferous unconformity in southern
New Brunswick. The Cornerstone claim block covers the southern 9 km
portion of the 40 km long radiometric trend located along the
unconformity. CVRD Inco recently staked a 19 km portion of the trend
and Landmark Minerals acquired a 12 km long adjacent section of the
unconformity.

On June 6th, the New Brunswick Natural Resources Minister, Donald
Arseneault, announced an agreement between CVRD Inco Ltd. and the
provincial government to search for uranium in southwestern New
Brunswick. The agreement gives the mining giant a 5-year exclusive
right to explore 136,000 ha by committing approximately $4million in
exploration expenditures.
http://www.canadaeast.com/ce2/docroot/article.php?articleID=7528.

Cornerstone also holds the uranium rights to 151 claims of the total
172 claims at Dorchester Copper Project and all but 10 claims on the
110 claims at the Goshen Copper Project. Both projects are under option
to Phelps Dodge Corporation of Canada Limited to explore for
Sediment-hosted Stratiform Copper (SSC) deposits.
Many of the features of the sedimentary basins of southeast New
Brunswick that indicate potential for SSC mineralization also make the
area prospective for uranium. For more information go to
http://www.cornerstoneresources.com/s/Newbrunswick.asp?ReportID=171723

Cornerstone has been exploring for SSC deposits since 1999, initially
on the Bonavista Peninsula of Newfoundland, and has developed strong
technical expertise in the search for SSC and related types of
deposits.

Ecuador:
In addition to work on the Shyri Gold and La Plata VMS projects, which
are under JV with Coastport Capital, Cornerstone has initiated work
programs on several 100% owned properties, including the Caymatan
Gold-Silver and Macara Gold (formerly called La Rinconada) Projects,
aimed at advancing the properties to the joint venture stage.

- Cornerstone has concession holdings in southern Ecuador comprising
approximately 130,000 ha. In addition, we have a database comprising
more than 5000 BLEG, sand, silt, HM, samples covering over 550,000 ha
in several areas considered highly prospective for epithermal and
porphyry deposits. The database was instrumental in generating our
Shyri project. We are in the process of developing a comprehensive
regional program to use these data to develop new projects.
http://www.cornerstoneresources.com/s/Ecuador.asp?ReportID=136195

Commentary:
The August market meltdown had a negative impact on Cornerstone's share
price, an effect also experienced by other junior explorers and many
companies in other sectors. Many investors took quite a haircut, even
on broad based portfolios, and there was a 'run for the lifeboats'
mentality. Our announcement of an exploration agreement with Phelps
Dodge in a politically stable, mining friendly and easily accessible
province of Canada was good news but in the context of the market it
was hardly noticed.

The underlying fundamentals of Cornerstone are strong and we expect
that in the next few months they will become even stronger. However,
from questions that we routinely receive, it seems that many investors,
even some current shareholders, have difficulty grasping the full
significance of the concept of the JV model, which constitutes our
business model. As our website states: "Cornerstone Capital Resources
Inc. has a strong and dedicated technical team who are focused on
generating new projects that have great potential for discovery.
Cornerstone leverages its own exploration funding through joint venture
and strategic partnerships, providing shareholders with potential for
success at lower risk. Cornerstone has a diversified portfolio of gold,
silver, copper, nickel, VMS, and uranium properties in Canada and
Ecuador."

There is quite a difference between a mining company and an exploration
company. As an explorer, Cornerstone looks to mining companies to earn
into our projects by funding the early stage exploration and then, if
such work is successful, by taking over management of the project to
apply its technical skills, human resources and financial strengths to
move the project through to production. Cornerstone will continue to
focus on project generation, following the JV model. While we look
forward to the day when Cornerstone will be an equity participant in
one or several mines, we do not foresee Cornerstone becoming a mine
operator. We would leave that responsibility to our partners who have
all the necessary technical, human and financial abilities to advance a
discovery through to mine production.

Right now Cornerstone is exploring several highly prospective projects
using a lot of OPM (other partner's money). Significantly, most of
these projects are in politically stable, mining friendly
jurisdictions. We are active in four distinctly different regions;
Labrador, the Island of Newfoundland, New Brunswick and Ecuador. We are
building project portfolios in each of these high potential regions and
we encourage investors and shareholders to take a closer look at them.

Admittedly, there is a perception of higher political risks in Ecuador.
At the moment we are going through a period of uncertainty due
partially to the upcoming Constituent Assembly elections and also to
media reports (not necessarily substantiated) of uncertainty. However,
companies working in Ecuador are encouraged by the dialogue with the
new Minister of Mines. Exploration and mining companies are obtaining
drill permits and have commenced drilling under the new, revised
regulations. While some see the risk as higher in Ecuador, many also
see the potential rewards as higher. Ecuador is poised to begin to
realize its considerable exploration and mining potential and your
company is well positioned to capitalize on positive developments
there.

We continue to be very active in discussions with and in hosting
property visits by potential JV partners in all four areas in which we
are operating. We expect to be in a position to announce additional
agreements within the next several weeks.

For further information on all Cornerstone projects please visit
http://www.cornerstoneresources.com/s/Projects.asp.

Market Awareness:
There were no conferences or roadshows during August.

For those who like to keep updated on trading statistics, for the eight
month period January through August 2007 a total of 26,241,887
Cornerstone shares traded at an average price of $0.70. During August a
total of 3,105,705 Cornerstone shares traded at an average price of
$0.61

As usual your comments, suggestions and inquiries are very welcome.

Best regards.
Glen

======================================================================
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 Mon Sep 10, 2007 at 1:00:00 PM Pacific Time
======================================================================
.