Capital Resources Inc. Annual General Meeting August 14, 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 July 31, 2018 Common Shares 632,469,351 Warrants* 85,114,969 Stock Options** 27,656,001 *See corporate presentation on website for breakdown ** See Information Circular for breakdown Fully Diluted Shares Outstanding 745,240,321 In February 2018, Cornerstone closed a private placement for gross proceeds of $8.2 million.
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 (option to earn 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 at Alpala 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
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. MRE to be updated later this year. * Mr. Martin Pittuck, MSc, CEng, MIMMM, is responsible for the Mineral Resource Estimate and is an "independent qualified person" as such term is defined in NI 43-101. 10
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. Information from drill hole 49 suggests that the Alpala NW and Trivinio mineralized zones are connected at depth. Only 4 out of 14 targets drilled so far
12 Drilling Highlights at Aguiñaga Drilling started at Aguiñaga Limited results available so far: Hole AGD 18-001: 345m @ 0.37% CuEq from 328m depth (true width: 139m) Hole AGD 18-002: 172m @ 0.42% CuEq from 344m depth (true width: 69m) Initial drilling at Aguiñaga confirms the potential for a second and near surface porphyry deposit. 5 targets to be drill-tested by an initial 7 drill hole program within a surface area of 1.5km 2
Joint Venture With Enami 13
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15 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
16 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
17 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
18 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
19 Bella Maria (Au-Cu) Bella Maria results and neighborhood Cangrejos MRE: 8.8 M oz Gold Lumina Gold Nov. 6, 2017
20 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
21 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
22 Bramaderos (Au-Cu) 4,949 ha concession granted on January 4, 2017 Underlain by a cluster of Au-Cu porphyries Gold (+ low grade copper) is present at surface as dissemination in porphyry and hydrothermal breccia bodies/pipes and in quartz veins. Strong correlation with magnetism 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 Property at drill-ready stage. Phase 1, 5000m drill program defined Well-advanced permitting process 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 (Au-Cu) Multiple porphyry gold-copper and epithermal gold-silver targets West zone: Epithermal style mineralization Historical and recent trenching indicates strong results including 30m at 3.6g/t gold Indications of a possible porphyry at depth No previous drilling Bramaderos Main: Porphyry style mineralization. Historical diamond drilling 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 strong gold and copper mineralization Limon: Porphyry style mineralization A 2km x 1km geological-geochemical-geophysical anomaly defined Trench LM-01 intersected 97.6m grading 0.71 g/t gold and 0.23% copper. No previous drilling Porotillo, Ghangue and Agua Salada: Porphyry and epithermal style mineralization Presence of strong magnetic bodies Edge of Porotillo target partially drill-tested Other targets never drill tested Surface exploration ongoing 23
24 Bramaderos (Au-Cu) Multiple porphyry gold-copper and epithermal gold-silver targets Exploration teams have been advancing the project on several fronts: Soil sampling over the entire concession, and infill in selected areas Geological mapping and rock chip sampling Trenching at West Zone, Bramaderos Main and Limon Heli-magnetics and radiometrics completed, 2-D and 3-D processing Modeling and Phase 1 drilling targeting process completed: 11 holes defined Diamond drill contract signed Access to drill sites completed Water permits granted Archeological survey completed Full support from local authorities and communities Drilling will commence as soon as we receive a drill permit.
25 Bramaderos (Au-Cu) Bramaderos Main & Porotillo targets; 3-D modelling of magnetics
Bramaderos (Au-Cu) 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 Never has been drilled. 5 Drill holes planned for Phase 1 26
27 Bramaderos (Au-Cu) Bramaderos Main trenches delivering consistent, wide intervals of gold and copper results Trench BM14 (longitudinal): 615m @ 0.52 g/t gold 0.11% Copper Trench BM07: 215.7m @ 0.50 g/t Au, 0.09% Cu Trench BM02: 140.6m at 0.57g/t gold and 0.15% copper 3 Drill holes planned for Phase 1
28 Bramaderos (Au-Cu) Limon target delivering best trench results Large Au-Cu in-soil anomaly Buried magnetic anomaly below lithocap Trench LM01: 97.6m @ 0.71 g/t Au and 0.25% Cu Never has been drilled 3 Drill holes planned for Phase 1
Capital Resources Inc. TSXV: CGP www.cornerstoneresources.com 29