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To: Goose94 who wrote (26923)	3/15/2017 8:31:49 AM
From: Goose94	Read Replies (1) \| Respond to of 203353

Cornerstone Capital Resources (CGP-V) March 15, '17 Some shareholders have inquired in the past few months as to why Cornerstone, in their opinion, has been somewhat 'silent' in communicating with shareholders. During that time your Management team has been executing a strategy, which is still ongoing, to acquire additional ground in Ecuador both through the competitive public bidding process and utilizing the preferential right of our generative exploration partner, state mining company ENAMI. In the interest of Cornerstone and its shareholders, it was the decision of Management, supported by the Board, to lay low until our efforts met with some success. Now that we have achieved some success, as announced in news releases on March 6th and January 5th (see links below), we are pleased to provide the following update. cornerstoneresources.com cornerstoneresources.com Paradigm Capital, in an equity research note to clients on February 13, 2017, suggested that Cornerstone is a "no-brainer" takeover target just for its interest in the Cascabel joint venture in northern Ecuador. Others have suggested this to me as well in the numerous conversations I have had with other analysts, newsletter writers, media and shareholder calls. Management agrees that potential exists. However, we believe Cornerstone has much more value than just the implied value of its interest in Cascabel - the new porphyry concessions around Cascabel announced on March 6th, plus the four drill ready projects Vetas Grandes, Bella Maria, Caña Brava and Bramaderos are only a few examples, and we are currently evaluating the best approach to advancing these projects to unlock the unrealized value of these other assets. Management has a duty to ensure that shareholders obtain the highest value upon the disposition of any asset or during an outright takeover. In the event that Cornerstone becomes the subject of a takeover bid, we expect that it would be friendly. Should such a takeover bid occur, especially if it is hostile, management will need the support of shareholders to ensure that you receive the maximum benefit. We wish here to briefly expand on the list of projects that were mentioned earlier so that you can have better insight into their present situation and the potential future positive impact on Cornerstone. The New Porphyry Projects around Cascabel We were advised by ENAMI on March 14th that the last part of the Espejo area (i.e., the concession called "Espejo 3", marked in red dotted line in the Figure to our March 6th news release cornerstoneresources.com has been received by ENAMI. "Cristal" (also marked in red dotted line in the same Figure) remains pending, ENAMI having applied for that area more recently. Cornerstone has signed confidentiality agreements with several major mining companies regarding these new areas, two of who have already completed site visits. Vetas Grandes (Central Ecuador) cornerstoneresources.com We have had discussions with a mid-tier gold mining company and are working towards advancing those discussions into an option agreement in order to advance exploration on the project. Bramaderos (Southern Ecuador) cornerstoneresources.com We are engaged in preliminary discussions with a third party that is a potential partner for this new exciting new project. Bella Maria (South western Ecuador) cornerstoneresources.com Confidentiality agreements have been signed with several potential partners, some site visits have been carried out and others are pending. Caña Brava (Southern Ecuador) cornerstoneresources.com Confidentiality agreements have been signed with several potential partners, some site visits have been carried out and others are pending. Miocene (Chile) cornerstoneresources.com We also want to comment on the 100% owned Miocene project, held by Cornerstone's Chilean subsidiary Minera Cornerstone Chile Limitada (MCCL), which is located in the Atacama and Antofagasta Regions of northern Chile, and is targeting epithermal gold-silver and porphyry gold-copper deposits along the interpreted northern extension of the Maricunga magmatic belt which hosts several world-class gold deposits. The Miocene claims were selected using a proprietary data base licensed exclusively to Cornerstone, and we feel Miocene offers tremendous potential for discovery. Chile consistently ranks among the world's top mining jurisdictions. In recent months there has been a renewed interest from mining companies to assess the Miocene project potential and possible participation in its exploration. Cornerstone is committed to the project generator model to increase shareholder value. Upon identifying or acquiring a mineral target, Cornerstone typically spends 12 to 18 months doing systematic exploration work to identify drill targets, and then looks to form a strategic partnership with a joint-venture partner. In exceptional cases, however, a partner will be brought in soon after the mineral title is acquired. When forming a strategic partnership, Cornerstone's joint-venture partner will earn an incremental stake in a specific project through share and cash payments to Cornerstone and by conducting further exploration on the property. The Cascabel project is an excellent example of this model in action. Except for the modest initial cost of acquiring the Cascabel property in 2011 Cornerstone has expended very little on Cascabel but will deliver exceptional value to its shareholders at minimal cost and risk. Cornerstone will continue to follow the JV generator model on its other present and future projects. In conclusion, please be assured that your Board and Management teams are working very diligently to position Cornerstone in such a way that its long-term viability is ensured and that incremental success is reflected in the share price. We've hosted several visits by equity research analysts and mining companies and will continue to do so as the world's mining and investment communities take a greater interest in Ecuador. We are convinced that Ecuador, because of its under-explored yet potentially unparalleled geological endowment and newly competitive mining taxation and regulatory regime, is now one of the most attractive mining jurisdictions worldwide. Since acquiring our first project there in 2005 we've weathered a Tsunami of sorts through the Mining Moratorium but our confidence in Ecuador's mineral potential and in the eventual turnaround in the mining regime is now being rewarded. Many major mining companies including Hancock Prospecting, Fortescue Minerals, BHP Billiton and Newcrest Mining have shown interest in projects in Ecuador recently. We thank you for your continued support and interest. Sincerely, Brooke Macdonald Hugh (Brooke) Macdonald President & CEO