Capital Resources Inc. PDAC Ecuador Day March 5, 2018 TSXV-CGP OTC-CTNXF F-GWN WWW.CORNERSTONERESOURCES.COM
2 Cautionary Statements This presentation includes Forward-Looking Statements as well as historical information. These statements include Cornerstone Capital Resources continued advancement of its mineral exploration programs. When used in this presentation, the words potential, anticipate, forecast, believe, estimate, expect, may, project, plan, and similar expressions are intended to be among the statements that identify Forward- Looking Statements. Although Cornerstone Exploration Inc. believes that its expectations reflected in these Forward-Looking Statements are reasonable, such statements may involve unknown risks, uncertainties and other factors disclosed in our regulatory filings, viewed on the SEDAR website at www.sedar.com. For us, uncertainties arise from the behaviour of financial and metals markets and from numerous other matters of national, regional, and global scale, including those of an environmental, climatic, natural, political, economic, business, competitive, or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward looking statements. Although Cornerstone believes the facts and information contained in the pages of this presentation to be as correct and current as possible, Cornerstone does not warrant or make any representation as to the accuracy, validity or completeness of any facts or information contained in these pages. Nothing in this presentation constitutes either an offer to sell or a solicitation of an offer to buy any securities in the United States or any other jurisdiction. The technical information contained in this presentation has been reviewed and approved by Yvan Crepeau, P.Geo, MBA, Cornerstone s VP Exploration and President of Cornerstone subsidiaries in Ecuador and Chile, who is a qualified person in accordance with Canada s National Instrument 43-101.
3 Spinco Transaction Cornerstone to change name to Cascabel Gold & Copper Inc. ( CG&C ) and spin off non-cascabel assets into Cornerstone Exploration Inc. ( Spinco ) Undertaking an effective 1 for 10 and 1 for 100 share consolidation for CG&C and Spinco, respectively 50% of shares received in both companies will have multiple voting rights and the other 50% of shares received will have single voting (see Appendix for details) The plan is subject to TSX Venture Exchange approvals completion anticipated in March Cascabel Gold & Copper Cornerstone Exploration All Cascabel related assets in CG&C 15% direct carried interest in Cascabel 10.03% shareholding in SolGold 84% interest in ENAMI JV Bramaderos (JV with Sunstone Metals) Caña Brava Bella Maria Vetas Grandes Pending and future applications for new concessions in Ecuador, the Miocene project in Chile and generative databases
Current Share Capital Capital Structure as at February 28, 2018 Common Shares 630,274,508 Warrants* 86,289,811 Stock Options 28,491,002 *See corporate presentation on website for breakdown Fully Diluted Shares Outstanding 745,055,321 In February 2018, Cornerstone closed a private placement for gross proceeds of $8.2 million. Since the quarter ended Sept 30, 2017 Cornerstone received proceeds of $423,500 from warrant exercises.
Consolidation Illustration Consolidation Illustration for Each 10,000 Cornerstone Shares Held 10,000 Cornerstone Shares Effective 1 for 10 consolidation Effective 1 for 100 consolidation Cascabel Gold & Copper (CASC) Shares received in CASC 500 Class B multiple voting shares (100 votes per share) 500 Class A single voting shares (1 vote per share) All shares expected to be listed on the TSXV Cornerstone Exploration (CEX) Shares received in CEX 50 Class B multiple voting shares (100 votes per share) 50 Class A single voting shares (1 vote per share) All shares expected to be listed on the TSXV Note: For further details see the management information circular filed on SEDAR on November 16, 2017.
6 CORNERSTONE PROJECTS Cascabel (15%) ENAMI-CESA JV (84%) o o o Espejo Playa Rica Rio Magdalena Vetas Grandes (100%) Cana Brava (100%) Bella Maria (100%) Bramaderos JV
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8 Cascabel (Cu-Au) JV between Cornerstone (15%) and SolGold (85%) subject to funding 100% through BFS Cornerstone also owns ~10% of SolGold, or ~23% interest (direct & indirect) in Cascabel Targeting porphyry copper gold deposits Located in same belt as Junin (now Llurimagua) porphyry Cu- Mo deposit (982MM tons at 0.89% Cu, 0.04% Mo) and the Colosa porphyry Au deposit (905MM tons at 0.92 g/t Au) located to the north in central Colombia
9 Drilling Highlights From depth (m) Interval (m) Cu (%) Au (g/t) Cu-Eq. (%) True Width (m) CSD-13-005 24 1,306 0.62 0.54 1.10 784 CSD-14-009 430 1,327 0.57 0.74 1.23 796 CSD-15-012 128 1,312 0.67 0.63 1.23 787 CSD-16-016 516 1,145 0.63 0.78 1.32 687 Multiple drill intersections of +1 km of +1% copper-equivalent at Cascabel
10 Cascabel MRE Alpala deposit Maiden Mineral Resource Estimate ( MRE ) of 430 Mt @ 0.8% Copper Equivalent (CuEq) Indicated and 650 Mt @ 0.6% CuEq Inferred (3.4 Mt CuEq Indicated 4.0 Mt CuEq Inferred) at 0.3% CuEq cut off. Contained metal content totals a current 2.3 Mt Cu and 6.0 Moz Au Indicated and 2.9 Mt Cu and 6.3 Moz Au Inferred.
11 Cascabel MRE Higher grade core has a current 70 Mt @ 1.8% CuEq Indicated (1.2 Mt CuEq) and 50 Mt @ 1.8% CuEq Inferred (0.8 Mt CuEq) at a 1.1% CuEq cut off. A further 50 Mt @ 1.0% CuEq Indicated (1.0 Mt CuEq) and 50 Mt @ 1.0% CuEq Inferred (1.0 Mt CuEq) is added to the high grade core if a 0.9% CuEq cut off is used. Only 4 out of 14 targets drilled so far
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14 4 Drill-ready Properties 4 Drill-ready properties Vetas Grandes: Epithermal Au-Ag Bella Maria: Porphyry Au-Cu Caña Brava: Porphyry Cu-Au and epithermal Au-Ag Bramaderos: Porphyry Au-Cu and epithermal Au-Ag
15 Vetas Grandes (Au-Ag) Epithermal Low to Intermediate Sulphidation gold-silver prospect Several large, 3-7m veins and quartz vein/vein breccia/stockwork forming swarm striking east-northeast over 1.4 km Excellent correlation between mapped veins, rock assay results, soil geochemistry Bonanza style mineralization: 3.4m grading 53.4 g/t Au and 641.0 g/t Ag Potential: +1Moz Au and significant Ag drill ready prospect
16 Vetas Grandes (Au-Ag) Excellent correlation between mapped veins, rock assay results and IP chargeability / resistivity anomalies Modeling using multi-elements geochemical distribution and ratios, spectrometry work, quartz vein textures defined prospective precious metals horizons and drill targets
17 Bella Maria (Au-Cu) Exceptionally high gold content in stream sediment and free gold panned samples over the entire property Soil geochemistry surveys have outlined a large (3 km x 2 km) coincident gold copper +/- molybdenum in-soil anomaly associated to porphyry-style mineralization in the central portion of property Seven (7) mineralized prospects identified Results to date indicate excellent potential to host significant porphyry and structurally controlled (breccias and veins) gold and copper mineralization property never has been drilled Free Gold in Pan Concentrates
18 Bella Maria (Au-Cu) Bella Maria results and neighborhood Cangrejos MRE: 8.8 M oz Gold Lumina Gold Nov. 6, 2017
19 Caña Brava (Au-Ag-Cu) Property hosts IS and HS epithermal gold-silver zones defined by extensive hydrothermal breccia and silica ribs developed on top of porphyry gold-copper style mineralization
20 Caña Brava (Au-Ag-Cu) Geological Map & DDH proposal Results strongly suggest that a porphyry system(s) lies at shallow depth below Soroche and Q. Caña Brava targets with peripheral higher level Intermediate Sulphidation veins at Soroche Norte Property never has been drilled Phase 1 drilling program of 3,200m is proposed 4 Mineralized Zones Defined Porphyry style at Q. Soroche and Q. Caña Brava Geology and proposed Phase 1 drilling program Epithermal style at Soroche Norte and Noreste
21 New Project: Bramaderos 4,949 ha concession granted on January 4, 2017 Underlain by a cluster of Au-Cu porphyries Gold is present as dissemination in porphyry and hydrothermal breccia bodies/pipes and in quartz veins Extensive, 5 km by 1-2 km, gold and copper (+/- molybdenum) in-soil anomaly located in the central part of the property has been partially tested by trenching and diamond drilling Several anomalies still untested JV signed with Sunstone Metals (formerly Avalon Minerals) (ASX: STM), in June 2017 with first drilling anticipated before the end of Q2 2018 Sunstone can earn a 51% interest in Bramaderos by spending US$3.4 million over three years to complete a phase 1 drill program If this option is earned, Sunstone can go to 70% by funding a feasibility study and can go to 80% by financing 100% of the construction cost of a mine & mill PAN AMERICAN HIGHWAY
BRAMADEROS Multiple porphyry gold-copper and epithermal gold-silver targets Historical diamond drilling at Bramaderos Main porphyry target has delivered 248m at 0.56g/t Au and 0.14% Cu from surface, including 30m at 0.8g/t Au and 0.2% Cu at bottom of hole Recent surface trenching has delivered 140.6m at 0.57g/t gold and 0.15% copper, including 68.2m at 0.80g/t gold and 0.18% copper 112.6m at 0.58g/t gold, including 68.0m at 0.65g/t gold and 0.10% copper Historical and recent trenching from the West Zone epithermal gold prospect have delivered strong results including 30m at 3.6g/t gold, no previous drilling At Limon a 2km x 1km geological-geochemicalgeophysical anomaly defined, no previous drilling
BRAMADEROS Multiple porphyry gold-copper and epithermal gold-silver targets Exploration teams have been advancing the project on several fronts: Trenching at Bramaderos Main Soil sampling over the entire concession, and infill in selected areas Geological mapping and rock chip sampling Heli-magnetics and radiometrics completed, 2-D processing completed, 3-D processing in progress Completed all work required for the drilling EIA Continuous presence on site of community and environmental team Drilling will commence as soon as we receive a drill permit. The EIA process is well advanced and engagement with the Department of Environment is ongoing
BRAMADEROS West Zone delivering strong trench results West Zone trenches delivering higher grade epithermal style results including 30m at 3.6g/t gold Recent geophysical results, complemented by alteration mapping, suggest there may also be a porphyry target at depth
BRAMADEROS Bramaderos Main delivering strong trench results Bramaderos Main trenches delivering consistent, wide intervals of gold and copper results including 140.6m at 0.57g/t gold and 0.15% copper
BRAMADEROS Bramaderos Main & Porotillo targets; 3-D modelling of magnetics
Listed on the Australian Stock Exchange ASX:STM $37.7M A$5.0M 1,142M ~40% 3.5% MARKET CAPITALISATION Tightly held At share price of A$0.033 30 day VWAP CASH As at 31.01.18 - unaudited SHARES ON ISSUE As at 31.01.18 TOP 10 SHAREHOLDERS Hold almost half of all shares on issue BOARD & MANAGEMENT Have participated in most placements and on the Frankfurt Exchange Code AL9 Substantial Shareholders Darren Carter (UK) 8.8% Valbonne II 6.7% Acorn Capital 5.1% Marilei International 5.0% www.sunstonemetals.com.au
ASX:STM PDAC Ecuador day; March 2018 www.sunstonemetals.com.au
Capital Resources Inc. TSXV: CGP www.cornerstoneresources.com 29