Cornerstone Capital Resources: In on the Ground Floor of a ...nationalinvestor.com/wp-content/uploads/Cornerstone...You can get information anywhere. Here, you get KNOWLEDGE. Special

You can get information anywhere. Here, you get KNOWLEDGE.------------------------------------------------------------------------------------------------------------------------------------------

Special Report...February, 2015

Cornerstone Capital Resources: In on the Ground Floor of aTransforming "Frontier Market" Nation

Cornerstone's decision to pretty much go "all-in" in Ecuador is paying off. Spirits were especially high

following last year's Prospect and Developers Assn. meeting in Toronto where, taking part, were (left to right) CGP'sYvan Crepeau and Brooke Macdonald; Carmita Calderon, Advisor to the Ministry of Strategic Sectors (MICSE);Santiago Yepez, President of State Mining Company ENAMI; Cesar Zummaraga, partner at Tobar & Bustamante(Cornerstone lawyers in Quito); Mauricio Silva, Pro Ecuador Trade Commissioner in Toronto; and Hernan Moreno,

Advisor to the President of ENAMI.__________________________________________________________________________

CGP Shares are well off their rock-bottom 2013 lows, following successful financings from a keynatural resource-oriented firm and--most importantly--some early BLOCKBUSTER drilling news from itsCascabel Project in Ecuador during 2014. There is still time to get into these speculative (but potentiallyEXPLOSIVELY profitable) shares before the story really gets out!

The National Investor http://nationalinvestor.com 2

About the Editor -- Chris Temple

First, I would like to thank you, on my behalf as well as onbehalf of the management of Cornerstone Capital Resources, foryour interest in this Special Issue of The National Investor.

Before I explain for you my reasons for having Cornerstoneas a recommended opportunity for my Members, I want to tell youa little about myself...what makes me "tick"...and what else you canexpect from our web site and service.

By the time I was a mere 20 years old, I was establishingmyself as a financial planner, having already started working witha local firm in my home town of Binghamton, New York. Amongother things, I became licensed as a General Securities Principal ofour firm's brokerage arm, supervising operational activities.

Already becoming successful as both a manager andfinancial advisor, I was nevertheless quite unprepared forsome of the massive market shifts of the early 1980's.

Yours truly, at a recent investor conference Successful strategies that had helped our clients reap hugerewards during the inflationary times of the late 1970's

particularly were turned upside down as interest rates skyrocketed and many previously-hot assets CRASHED.

What STUNNED me was the fact that -- though we can look back now at that change in Federal Reservepolicy under then-Chairman Paul Volcker as one of the most abrupt in the central bank's century in existence --NOBODY saw fit to do anything but continue to sell the same investment products. As with virtually everyone in thefinancial industry, you see, I had been trained in selling financial products and generating commissions; not on trulyunderstanding the economy and markets.

This experience first taught me that I needed to understand what I have since come to call "TheGame" of our fractional reserve banking system and how it and related factors create often-foreseeableswings in markets and asset classes. And it is this knowledge, together with specific, actionable strategies andinvestment recommendations, that I make available to my Members on an ongoing basis. (NOTE: An archivedversion of my signature essay on all this, entitled Understanding the Game, can be accessed on my web site, athttp://nationalinvestor.com/)

With this foundation, I am happy to tell you that The National Investor has become recognized as a leadingsource of credible, understandable information, commentary and investment strategies for individual investors.Often times, our performance has had us at the very top of the rankings put out by the well-known HulbertFinancial Digest, which has covered us since 2000.

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In addition to spending some time at The National Investor web site, you can follow me:

* On Twitter, at https://twitter.com/NatInvestor

* On Facebook at https://www.facebook.com/TheNationalInvestor

* On my You Tube channel, at https://www.youtube.com/channel/UCdGx9NPLTogMj4_4Ye_HLLA


Cornerstone Capital Resources, Inc.

Listed on the Toronto Stock Exchange's Venture Exchange with the symbol CGPListed in the U.S. via the OTC Market with the symbol CTNXF

Recent price -- C$0.07 per share

HIGHLIGHTS:

* Cornerstone employs the "prospect generator" model in grassroots mineral exploration; and inthe case of Ecuador, it was one of the first foreign companies to acquire mineral rights in thecountry.

* The company's most recent acquisition in 2011--the Cascabel Project--has alreadygenerated excitement, with both size of the project and grade suggesting it could contain a world-class copper/gold deposit.

* Following a C$4 million financing by the Sprott Group last May, Cornerstone is well-fundedto continue work not only at Cascabel, but at other of its projects in Ecuador and Chile.

* Drilling success in Ecuador together with that government's promised moves toward a moremining-friendly tax and regulatory regimen have brought Cornerstone added analyst and investorfollowing. (NOTE: Among other venues, C.E.O. Brooke Macdonald gave a presentation last April atour annual Chicago Resource Expo gathering; you can watch an interview of him at the show athttps://www.youtube.com/watch?v=-J42Za8Tt28&feature=youtu.be)


* After bottoming at a mere C$0.03 cents per share in 2013, Cornerstone's share price surged inearly 2014 to around C$0.25 on some exciting exploration news. Having now fluttered backdown to the C$0.07 range recently due to profit-taking and the current metals priceweakness, I am urging my Members anew to add to positions.

INTRODUCTION:

I first became acquainted with Newfoundland and Labrador, Canada--based Cornerstone CapitalResources at a mining industry conference in San Francisco in the late 1990's. As do some other people inmy industry, I often use such venues to glean industry news, investment ideas and more; in the end, ofcourse, with the objective of passing along worthwhile opportunities to my Members. It can be achallenging process: company representatives are there to try to get guys like me to add to theirfollowing and to recommend their shares. Some don't care how they do it.

So one of the first things that struck me as I met and got to initially know Cornerstone's co-founder and then-C.E.O. and Chairman Glen McKay (who is semi-retired, but still serves as anadvisor to the company) was when Glen told me that I should NOT yet recommend the company!Cornerstone had been in the process of just going public; in fact, the company was the very first one to belisted on the then-new Toronto Venture Exchange (TSX-V) which essentially replaced all the old (andoften loosely-regulated) provincial exchanges for small companies. Glen explained to me that heappreciated my interest in the company's business model and plans, but that I should watch for a coupleneeded events to take place to ensure that the company's overall launch was successful.

Someone in my position--especially at such venues--does not often hear such things. Glen's candor isthe type of thing I found especially valuable; after all--when researching opportunities among smaller,risky companies--MANAGEMENT is key. And though Glen has not been part of Cornerstone's full-timemanagement for quite a while, he and others have always seen that the company is run by the same typeof people: solid, conservative business people who "stick to their knitting," don't overreach and over the

years have managed to accomplish alot with a little.

This is a key reason whyCornerstone is among just a fewcompanies over the years where Ihave recommended my Membersalways keep at least some smallposition; adding to holdings duringprice weakness, and selling some ormost (but not all) at market peaks.

The last time we did that wasin early 2011, when I made thedetermination that pretty much allmanner of mining-related shares--which had enjoyed scorching runs

Like many such resource companies' shares, CGP surged into early 2011 higher after their 2008 plunges--and then collapsed --were again overbought.


Never would I have imagined, however, that the resulting selling in these types of companieswould get as extreme as it did, to the point in Cornerstone's case where it was beginning to look in early-mid 2013 that the company might possibly end up on the casualty list of those that didn't survive thislatest downturn. The company was low on cash, and its shares plumbed a low of C3 cents each.

In order to survive, the company essentially had to transform itself; and make itself morespeculative on the one hand, but potentially more rewarding on the other if its decisions pan out.Cornerstone has been one of those companies over the years which has employed the prospect-generator model. In short, it is usually the first one on the ground to stake and explore ground in thesearch for potential mineralization (its projects over the years have been in both precious and basemetals as well as other materials.) The idea is to advance initial "grassroots" exploration to a sufficientpoint where a larger company is interested in coming in as a joint venture partner. That new partnerfrom then on owns a majority of the particular project and invests most or even all of the additional fundsrequired to further it along. Sometimes Cornerstone successfully sold entire projects after doing theirinitial work. This business plan for the most part served the company well over time.

Though Cornerstone over the years focused most of its attention near the company's home inCanada's Atlantic Provinces (in particular, Newfoundland and Labrador), it started exploring in Ecuadorback in 2005 through its wholly-owned subsidiary, Cornerstone Ecuador S.A. The intention had alwaysbeen to focus more on that country's largely "virgin" territory over time, once finances and a morefavorable and stable regulatory climate had emerged in this "frontier market."

But the plunge in the share prices of junior exploration companies during 2012-2013,together with sparse finances, caused Cornerstone to make the tough choice to give up or sell itsCanadian assets, and go "all-in" in Ecuador. As I told my Members, this changed the company into aneven more speculative one than such explorers are by definition. But at the same time, I added,Cornerstone also became a "potentially higher-reward play." A company that built a reputation forachieving what it did by being a singles hitter was now "swinging for the fences."

Happily for the company, its shareholders, a growing labor pool in Ecuador and others,Cornerstone's move has shown some early signs that the company might well hit that home run!The company is now well-financed and should not face the necessity of doing additional capital raises forat least two years. Early results from drilling at its Cascabel project have at times been startlingly good.But perhaps most important of all, the government of Ecuador under President Rafael Correa has in therecent past become serious about courting foreign investment, and wiping away its past reputation as adeveloping country not that welcoming to those who want to invest in it.

Ecuador's Transformation

As my own long-time readers and holders/traders of CGP shares well know, Ecuador hasproduced an ongoing soap opera for years where the exploration and development of its vast mineralresources is concerned. For a time a few years back, exploration licenses were actually suspended; buteventually, Cornerstone and others got the green light to go back to work (indeed, a key reason forCornerstone's shares shooting up as dramatically as they did in early 2011 was on this news.)

But the government has often been halting in developing its mining and tax/royalty laws in such away as to properly balance the need for development with the country's desire to not give everythingaway to outside companies. This has kept all but a small handful of players on the sidelines up to now.


Here, Miguel Aleman, General Manager of the environmental consulting firm Cardno-Entrix, leads a community meetingin Ibarra (Imbabura province's capital city), to inform local and regional authorities about environmental and social

base line studies, various project management plans and potential economic benefits, of the Cascabel project. This work-

-along with the development of strong local community relations--has allowed Cornerstone and its Cascabelmajority partner SolGold plc to be granted very solid environmental and social licenses.

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Among the consequences of this was the exit from the country well over year ago by Canadianminer Kinross (NYSE-KGC). More a case of miscommunication and a contest of wills/egos betweenKinross management and members of Ecuador's mining regulatory body than one of the government notwanting Kinross, the episode nevertheless didn't do a whole lot of good to rehabilitate Ecuador'sreputation as too risky a place to do business.

Having handily won re-election and with extremely high support, President Rafael Correahas been very public with his criticism of some of the people in his own government at least partlyresponsible for Kinross leaving. He has made very clear--including in a high profile presidentialaddress to the country last Spring--that he expects and will demand the completion of a current programthe result of which should be the enactment of a set of reliable, fair and business-friendly laws, a taxregimen and regulations that will make Ecuador desirable.

President Correa-- whose education as an economist includes a Masters of Science in Economicsfrom the University of Illinois--most effectively (in my view) laid out his plans for Ecuador generally andits vast, largely untapped energy and mineral wealth particularly, in an interview back in April with CharlieRose. Correa is the kind of populist reformer that the citizens of any developing nation should welcome.As he explained to Rose, he fully intends to strike a balance between the interests of business--and thenecessity of courting foreign investment, and companies like Cornerstone willing to take risks in hiscountry--with his desire to give his own citizens their fair share of the rewards. Apart from the specificsof what this could mean down the road for Cornerstone, I've long been an admirer of Ecuador's president


and trust you will find his interview impressive. You can watch the archived version athttp://www.businessweek.com/videos/2014-04-15/ecuador-pres-dot-rafael-correa-charlie-rose-04-15

The public's clear confidence in Correa has,by extension, meant that Cornerstone and itspartners have been warmly received. Among otherthings, numerous local people have found employment,even at this fairly early stage. The people seem torealize what Correa explained to Rose: that far fromrepeating the belligerence of past governments against"capital" and thus ending up with nothing, there indeedis a middle ground. (NOTE: For another informed andvery educational take on all this, I would encourage youto read a June 6 Mineweb article on the subject, at:http://www.mineweb.com/mineweb/content/en/mineweb-political-economy?oid=243607&sn=Detail

Cornerstone's Assets

Cornerstone has been exploring in Ecuador since 2005 through its wholly-owned subsidiary,Cornerstone Ecuador S.A. Currently, the company has a portfolio of six mineral properties in Ecuadorcovering 455 km2 which are targeting epithermal gold-silver and porphyry copper-gold deposits.

Still following its prospect generator model, Cornerstone has joined with joint venture partners whoare fully funding two projects. In northernEcuador, SolGold Plc, an Australia-basedexploration company, has satisfied theconditions to earn an 85% interest in theCascabel project. I'll spend the most attentionshortly on Cascabel, which is presently thehighest, and most advanced, priority of thecompanies. SolGold is also a J.V. partner wherethe La Encrucijada Prospect farther south isconcerned.

In southernmost Ecuador near thePeruvian border, Cornerstone has a strategicalliance and option agreement with NewmontVentures, Ltd. on the Macará project. Theagreement covers a large 2,500 km2 "Area ofInterest" where prospecting and streamsediment sampling has identified significantanomalies of gold and base metals.

Finally, where Ecuador is concerned, thecompany has three wholly-owned explorationprojects located in southern Ecuador: the BellaMaria, Caña Brava, and Shyri (Vetas


Grandes) projects. The Shyri project has received the majority of the work to date, with approximately$13 million spent on exploration since 2005 (this out of a total of over $25 million that Cornerstone hasspent in the country.) Shyri encompasses the Vetas Grandes gold prospect and is strategically locatedwest of the Quimsacocha high-sulphidation epithermal gold-silver-copper deposit, south of the RioBlanco low-sulphidation gold-silver deposit and southeast of the Chaucha porphyry copper-molybdenumdeposit (those others are properties where more advanced exploration has them near to the point wherethe projects can be developed into working mines.)

Though none of the prospects have had as much attention to date as have Shyri andCascabel, Cornerstone also has exploration concessions in Chile, one of the top miningjurisdictions not only in South America, but the world. The Miocene project, held by Cornerstone'sChilean subsidiary Minera Cornerstone Chile Limitada (MCCL), is located in the Regions of Atacama andAntofagasta of northern Chile, and is targeting epithermal gold-silver and porphyry gold-copper depositsalong 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 toCornerstone; the company is excited about the future possibilities for new discoveries.

Cascabel Could be the Company-Maker

The recent excitement surrounding Cornerstone has been due to the early results fromexploration and drilling work at Cascabel. Located in the Imbabura Province in northern Ecuador, it islocated approximately 120 km north of Ecuador's capital city, Quito, and 20 km south of the Colombianborder. The property covers an area of 50 km2 and lies at elevations ranging from approximately 750 to


2,100 meters above sea level. Access is very good via a paved road from the coastal city of San Lorenzo tothe provincial capital of Ibarra, and secondary gravel roads to the central part of the property.

Cascabel is an early stage gold-copper porphyry project located within the Western Cordillera ofthe Andes Mountains, which hosts numerous world class gold-copper deposits from Chile, to northwardsthrough Peru, Ecuador and Colombia. Large undeveloped deposits already discovered in the Cascabelregion include the Junin porphyry copper-molybdenum deposit in northern Ecuador and the La Colosaporphyry gold deposit in neighboring Colombia, which is owned by South Africa's AngloGold Ashanti.

These types of deposits known as of the porphyry variety by definition tend to exist near"tectonic" margins in the world near areas where tectonic plates underlying the ocean have interactedwith the earth's crust below to cause heat and volcanic activity to move upward. This, in turn, causedmelting and flow of materials above, often times at or close enough to the surface to be mined for themetals (most often, copper and gold being the primary ones)contained. For those of you who would liketo know more about these types of occurrences, how they are created and more, Cornerstone's partnerSolGold has an excellent primer of sorts at its web site, which you can access athttp://www.solgold.com.au/userfiles/201207_Characteristics%20of%20Porphyry%20Copper%20Deposits.pdf


Though still not to the extent needed to be able to calculate a mineral resource--let alone afeasibility study and mineable deposit--the exploration and drilling so far at Cascabel has givenrise to a model which, if confirmed, would reveal a copper-gold porphyry rivaling the largest inthe world. As I am writing this, the companies are concluding drilling of the ninth major deep hole atCascabel. The objective is to determine the extent of, several hundred meters below the ground's surface,a mineralized body that has emerged as the main target here.

By the time early this year that SolGold and Cornerstone had got to Hole 5 and then startedreleasing some of that hole's assay results, heads were starting to turn! Among the findings, there was anintercept of over 550 meters returning assays of 1.03% copper and 1.05 grams of gold per ton, orapproximately a 1.5% copper equivalent. These numbers are in most respects double the grades ofmany porphyry bodies elsewhere in the world that are being profitably mined. Though not all theassay results of holes drilled since then have had such strong numbers, many have had potentiallyeconomic grades. The bigger accomplishment has been that successive holes have dramaticallybroadened the overall size of this underground mineralized area. And this one, folks, isn't even as big asthe North West Alpala part of the overall target, which recent magnetic and related work suggests couldbe even more massive!

December 2 brought us someadditional eye-catching assayresults from the top part of Hole 9.In an area believed to be a separatehigh-grade zone 120 meters awayfrom Hole 5, even higher numbers--acopper equivalent grade of 2-3%,accounting for the gold presence--wasencountered over wide widths. Just asincredibly, it appears that themineralized area descends over onekilometer deep! Assay results for thedeeper parts of the hole are beingawaited as I write this.

In the end, the attempt isbeing made to identify at least onelarge "block" underground ofsufficient size and grade to be safelyengineered and profitably mined.

Expectations are that this deposit could be mined using what is called the block cave method of mining. Inlayman's terms, this method--due to engineering and technological advances, a growing practice inseveral areas of the world--consists of surgically removing a "block" underground. Among the advantagesis that there is not the kind of cost and environmental footprint above ground as is the case with asurface, open-pit mine.

As the drilling continues, additional surface work has been continuing to determine additionaldrill targets (in fact, a second drill rig is on now its way to Cascabel, now that the companies' geologistshave determined it is timely.) Metallurgical studies on some of the drill core material have also been


analyzed; early results suggest recoveries of from 91-98% of the copper and gold content. All this workwill continue, if not be accelerated, as we move ahead in 2015.

In addition to the above corollary work to the ongoing drilling program, Dr. Steve Garwin wasrecently brought in to conduct an independent review of the Alpala prospect (Alpala is the specifictarget area being drilled amid the overall Cascabel property; only one of many promising targets onthe property.) Dr. Garwin's mining industry and technical expertise specifically on porphyry-stylemineralization the world over are well known. A U.S. national (among other gigs he worked forNewmont Mining for several years, part of that time in Nevada) he is based these days in Australia.

According to SolGold's release from August 26, Dr. Garwin spent a week in Ecuador in lateJuly visiting the Alpala site and engaging in a "detailed review" of past drill core, especially fromHoles 1, 5 and 7. SolGold concluded by saying, "While the technical team at SolGold is still reviewingthe report, the conclusions of the geological review confirm both the world-class size and high-gradepotential of the Alpala target at Cascabel." For the entirety of that press release, seehttp://solgold.com.au/userfiles/2014.08.26%20-%20Cascabel%20Exploration%20Update.pdf

A partial view of the Cornerstone/SolGold camp at the Cascabel project. At any given time there have been asmany as 70 workers and company officials at the site...


A Closer, added pictorial look....

Above, Lance Hubbard--General manager of the Hubbard Drilling firm-explains and discusses thedrilling process with Cornerstone Environmental Manager, Diana Marroquin (left in the picture) andadministrative assistant (center), Adriana Valencia, while 2 drilling operators are completing theinstallation of the rig. The drills at remote sites like this are modular, man-portable and powered by a seriesof motors you can see parts of on the right side of the picture. At the Alpala prospect, Hubbard Drillingestablished a world record depth with this type of portable equipment, drilling hole CSD 14-007 down to a1673 meters (5487 feet) depth.


Exploration and related personnel here get their daily Health and Safety instructions during an earlymorning meeting.

Here, geologist Santiago Mantilla, working for the joint venture examines drill core at the drill site. Innumerous instances, the appearance of the core itself has been impressive in suggesting that Cascabel couldbe a world-class porphyry deposit.


Cornerstone's Vice President of Exploration, Yvan Crepeau, M.B.A., P.Geo. (second from right) conferswith the exploration team as they examine and log drill core at a drill site.

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At times astounding butalso highly encouraging,numerous core samples fromdrilling have shown clearly thetype and richness ofmineralization that--insufficient quantities--could bemined. This photo from over1200 meters deep from Hole 5shows an especially impressiveexample of what, for a porphyrydeposit, has at times been veryrich mineralization.


Summary

* Cornerstone's early grassroots work in Ecuador is beginning to pay off. Already, Cascabelappears to be the most spectacular project--and has by far generated the most excitement amonganalysts and some key investors--of any the company has ever held. Cornerstone holds a 15% interest inCascabel, with majority partner SolGold financing all of the remainder of the work through to completionof a bankable feasibility study. My expectation is that at such a point, if not sooner, a "major" would beinvolved.

With its 15% carried interest, it is staggering to think of the benefit to Cornerstone and itsshareholders of success at Cascabel, given the company's current miniscule market capitalization of butC$14 million or so!

* Ecuador's government is becoming an enabling partner, rather than a hindrance. It isexpected that, in the near term, a commission put together early in 2014 at the insistence of PresidentCorrea will see much of its recommendations adopted to streamline the country's laws, regulations,royalty and tax regimen related to resource development.

* Key investors and opinion molders in the resource sector are beginning to notice. A fewinvestment firms and large investors have taken new or increased positions in the company in the lastyear, paced by the C$4 million Sprott financing. Last January 10, an early warning report was filed onSEDAR after a decades-old boutique investment firm--Interinvest, which I'm told has offices in London,Boston and Montreal--reported via its Chairman Dr. Hans Black that it had accumulated 11% ofCornerstone's outstanding shares.

And prior to my completion of this report, the well-known mining analyst Louis James ofCasey Research announced at that firm's late September conference in San Antonio, Texas thatCornerstone is now on his "Top 10 Potential 10-Bagger" list.

More often than not, I use a variety of factors to arrive at my own potential target price for acompany I have under recommendation. But that is impossible here. As with James, I can only saygenerally that--IF SolGold and Cornerstone are able to pull it off at Cascabel--Cornerstone's shares will beMANY times higher than their present level; "10-bagger" or more. None of us know for sure; and, ofcourse, by definition such companies are very risky. You don't put your grocery money in them. It wasonly a year and a half or so ago when I wondered whether there would much longer BE a Cornerstone.

However, as I have always counseled my Members (and as you may have read already in my latest"Investment Playbook" for individual investors) to the extent of your own risk tolerance andability/willingness to follow such companies, Cornerstone is the kind of opportunity to which you mightdevote a small, speculative investment (depending on one's own circumstances, I usually recommendsomething on the order of 0.5% exposure to, perhaps, as much as 1% for those who are aggressive.)

For my Members here at The National Investor, I regularly update them on developmentsrelated to Cornerstone, as well as my other recommended opportunities. To keep in touch with thecompany and learn a LOT more about the finer points if you are so inclined, you can visit them athttp://www.cornerstoneresources.com/s/Home.asp. There, you can sign up for their e-mail list, as wellas follow the links on their home page to follow them on social media.


Finally, let me encourage you to check out a recent interview of Cornerstone's Brooke Macdonaldand Yvan Crepeau by one of the deans of the newsletter/resource industry, Jay Taylor (who has alsorecommended Cornerstone to his audience.) Jay interviewed the men in early November on his show“Turning Hard Times Into Good Times” — a GREAT introduction and refresher at the same time! It can befound at https://www.youtube.com/watch?v=NcSK9ewMV_o&feature=youtu.be

HOW TO PURCHASE SHARES OF CORNERSTONE CAPITAL RESOURCES IF YOU ARE AU.S. INVESTOR USING A U.S.-BASED BROKERAGE ACCOUNT

For those of you who are not already used to buying shares of companies such as CornerstoneCapital Resources that are listed primarily in Canada, I want to give you a quick and easy "tutorial." It'sMUCH easier than you think, if you have never done so, to buy such companies in any U.S.brokerage account!

Many larger Canadian and other foreign companies have primary listings on more than one majorexchange. For those listed on the New York Stock Exchange or the Nasdaq as well as Toronto, you needonly buy/sell using the U.S. market. Generally, there would be no reason to check prices and such on theToronto Exchange first in those cases.

More often than not, smaller companies for both cost and logistical reasons do not list their shareson a major U.S. exchange. But they are still tradable in the U.S. via the Nasdaq's OTC Market. All you need toknow is the company's symbol; unlike most U.S.-listed companies, it will always be a five-letter symbolending with an "F." In Cornerstone's case, its ticker symbol in the U.S. is CTNXF, while on Toronto it isCGP.

The main consideration in buying shares of Canadian stocks via the OTC market is thatsometimes--if you look at the OTC quote first--you are not getting as fresh and accurate a price asyou would if you went to the Toronto Exchange. You simply need to insure, via a simple process, thatyou are neither overpaying for a stock when you buy it, nor getting less than you should when yousell. That is easy to accomplish.

The most reliable and current quotes for shares of companies such as Cornerstone are to be foundfirst on Toronto’s Venture Exchange. Prices and volume activity are updated all through the trading dayon the Toronto Exchange, just as they are on the N.Y.S.E. or Nasdaq, and are generally fresh.

I will use the following example to show the simple process that will normally take you LESS THANTWO MINUTES to enter a trade to buy Cornerstone's shares via the OTC market in the U.S:

1. First check the Canadian quote for Cornerstone, via its ticker symbol in Toronto, CGP. You'llfind this at the Toronto Exchange's web site, at www.tmx.com. Plug in "CGP." We'll say for purposes ofthis lesson that the current asked price for Cornerstone's shares is C$0.07, or 7 cents per share inCanadian currency.

2. Next determine what that price is in U.S. currency. If you don't follow exchange rates on a dailybasis, you can get a fresh picture by going to Kitco's web site, at www.kitco.com (or your own favorite onethat lists currency differentials; there are many.) Near the bottom of Kitco's front page, you will find atable of various currency exchange rates. At this writing the Canadian dollar, rounded off, is worth 80cents in U.S. currency.


3. Do the math as to what Cornerstone's U.S. asked (selling) price should be:

C 7 cents per share X .80 = US 5.6 cents per share.

4. Finally, enter a LIMIT ORDER to buy the number of shares of Cornerstone you want in your U.S.brokerage account at or very near that price. I would first start with that 5.6 cents per share; $0.056(these days, most online brokers will allow you to use tenths of a cent in pricing.) If the orderdoesn't fill right away, bump it up by a tenth of a cent once or twice until it does. You would useCornerstone's 5-letter symbol, which is CTNXF.

It's that simple!

And, of course, you would do much the same thing when it was time to sell some of your holdings.But in the case of a sale, you would focus on the bid price listed on the Toronto Exchange's site for thecompany in question.

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The National Investor is published and is e-mailed to subscribers from [email protected] . The Editor/Publisher, Christopher L. Templemay be personally addressed at this address, or at our physical address, which is -- National Investor Publishing, 34779 N. Lake Shore Dr.., Lake Villa, IL60046. The Internet web site can be accessed at www.nationalinvestor.com . Subscription Rates: $195 for 1 year, $375 for two years for “full service”membership (twice-monthly newsletter, Special Reports and between-issues e-mail alerts and commentaries.) Trial Rate: $59 for a one-time, 3-month full-service trial. Current sample may be obtained upon request.

The information contained herein is conscientiously compiled and is correct and accurate to the best of the Editor’s knowledge. Commentary,opinion, suggestions and recommendations are of a general nature that are collectively deemed to be of potential interest and value to readers/investors.Opinions that are expressed herein are subject to change without notice, though our best efforts will be made to convey such changed opinions to then-current paid subscribers. We take due care to properly represent and to transcribe accurately any quotes, attributions or comments of others. No opinions orrecommendations can be guaranteed. The Editor may have positions in some securities discussed. Subscribers are encouraged to investigate any situation orrecommendation further before investing. The Editor receives no undisclosed kickbacks, fees, commissions, gratuities, honoraria or other emoluments fromany companies, brokers or vendors discussed herein in exchange for his recommendation of them. All rights reserved. Copying or redistributing thisproprietary information by any means without prior written permission is prohibited.

No Offers being made to sell securities: within the above context, we, in part, make suggestions to readers/investors regarding markets, sectors,stocks and other financial investments. These are to be deemed informational in purpose. None of the content of this newsletter is to be considered as an offerto sell or a solicitation of an offer to buy any security. Readers/investors should be aware that the securities, investments and/or strategies mentioned herein,if any, contain varying degrees of risk for loss of principal. Investors are devised to seek the counsel of a competent financial adviser or other professional forutilizing these or any other investment strategies or purchasing or selling any securities mentioned.

Notice regarding forward-looking statements: certain statements and commentary in this publication may constitute "forward-looking statements"within the meaning of the Private Securities Litigation Reform Act of 1995 or other applicable laws in the U.S. or Canada. Such forward-looking statementsinvolve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of a particular companyor industry to be materially different from what may be suggested herein. We caution readers/investors that any forward-looking statements made herein arenot guarantees of any future performance, and that actual results may differ materially from those in forward-looking statements made herein.

Copyright issues or unintentional/inadvertent infringement: In compiling information for this publication the Editor regularly uses, quotes ormentions research, graphics content or other material of others, whether supplied directly or indirectly. Additionally he makes use of the vast amount of suchinformation available on the Internet or in the public domain. Proper care is exercised to not improperly use information protected by copyright, to useinformation without prior permission, to use information or work intended for a specific audience or to use others' information or work of a proprietarynature that was not intended to be already publicly disseminated. If you believe that your work has been used or copied in such a manner as to represent acopyright infringement, please notify the Editor at the contact information above so that the situation can be promptly addressed and resolved.

ADDTIONAL INFORMATION/DISCLOSURE CONCERNING THIS SPECIAL REPORT

Cornerstone Capital Resources was previously, prior to the preparation of this report, a recommended stock by the Editor in The National Investor.Neither this publication nor its Editor/Publisher, Chris Temple, has thus been paid to make this recommendation; one that has previously been issued to thepaid Members/Subscribers of The National Investor.

Cornerstone, in anticipation of an opportunity to gain greater market awareness, has decided to co-finance The National Investor in a marketingcampaign wherein this publication will make this specific report and others on market trends, investment strategy and others available via various means toindividual investors. Cornerstone has made payments to National Investor Publishing totaling $6,000.00 for the preparation of this expanded, updatedspecial report on the company, additional exposure on The National Investor web site in a publicly-accessible "Featured Opportunities" page, pro-activedistribution of the report to investors and for the procurement of and placement in on-line media, web portals and similar sites.

The Editor has no position personally in the shares of Cornerstone Capital Resources, and will not be taking any during the course of the contractualrelationship governing this campaign.

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