Cornerstone CEO Brooke Macdonald s remarks at the June 19, 2015 Annual General Meeting (AGM) in St. John s, Newfoundland

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1 26 Kyle Avenue Mount Pearl, NL, A1N 4R5 Toll Free: Website: TSXV CGP ; F GWN ; B GWN ; OTC - CTNXF Good morning. Cornerstone CEO Brooke Macdonald s remarks at the June 19, 2015 Annual General Meeting (AGM) in St. John s, Newfoundland We have updated our two-page fact sheet to use as a handout today. The handout is dated June 5 th. Our latest full technical presentation is dated March 2 nd, 2015, presented at Ecuador Day at the Prospectors & Developers Association of Canada (PDAC), and can be viewed at Since the last AGM: (1) On April 14, 2015, the Company signed a letter of intent with Ecuador s State Mining Company ENAMI EP, to jointly explore new prospective gold and copper properties identified using Cornerstone s proprietary geological data base gathered since 2005 in Ecuador. Cornerstone will identify geologically prospective areas covering between 5,000 to 50,000 hectares in parts of Ecuador that are currently off limits to application by private companies. ENAMI will use its preferential right to acquire the mineral exploration concession rights, and then Cornerstone (employing its prospect generator business model) and a funding partner(s) (who will earn a majority interest in the project, the exact percentage to be negotiated with the Company) will earn an interest in each specific area or project explored, by incurring committed first year prospecting expenditures, optional early and advanced stage exploration expenditures (including drilling) for a period of up to 8 years, and, if warranted, additional sums in optional feasibility study expenditures for up to 4 additional years. At the end of the advanced exploration phase (prior to feasibility study), the parties will form a joint venture, ENAMI will contribute the mineral rights in return for a 16% interest, and the Company and its funding partner will contribute their expenditures incurred to date in return for an 84% interest. ENAMI will have a free carried interest through to completion of a feasibility study. In the event

2 2 the Company and its funding partner(s) agree to make a Production Decision, ENAMI will have the option to convert 5% of its participating interest to a 1% royalty, and have the Company and its funding partner(s) finance the remaining interest or part of the remaining interest under certain commercial terms, such financing to be repaid out of project cash flows. The Company will have a right of first refusal over any sale by ENAMI of its equity participation in the joint venture or any royalty. Although ENAMI EP is a state enterprise, the granting of mineral concessions in Ecuador is within the exclusive jurisdiction of the Ministry of Mines, which sets its own policies with regard to the timing of opening certain areas of the country to exploration and who mineral concessions will be granted to, as a result of which there is no guarantee that concessions requested by ENAMI EP for joint exploration with the Company will be granted. The arrangement described above to jointly explore properties with ENAMI is not an exclusive arrangement with the Company. ENAMI EP is free to enter into similar arrangements with other companies. The Company is only the first company to enter into such an arrangement, which has been under negotiation since December The Letter of Intent is subject to execution of a definitive binding agreement, which is under negotiation. Cornerstone has contacted over 15 major mining companies that are active in early stage exploration projects in South America to see if they would be interested in funding the exploration and earning an interest in any projects generated. We have received several indications of interest, and hope to be able to attract one or more funding partners in the near future. (2) Regulatory changes made by the Ecuadorean government on the advice of international mining consultant Wood MacKenzie have reduced the total tax burden on mining projects from approximately 37% of a project s gross revenues to approximately 27%, according to Wood MacKenzie and the new Minister of Mines, Javier Cordova, making Ecuador a more competitive destination for direct foreign investment in mining. For those shareholders interested in more details about the tax changes, I have inserted some additional comments below, which will be posted with these remarks on the Company s web site, but which I do not intend to go through this morning: RECENT TAX CHANGES IN ECUADOR 2

3 3 There are two tax provisions in Ecuador that have caused a lot of concern among the mining companies: (1) the sovereign adjustment (ajuste soberano) or principle enshrined in the 2008 Constitution (and in art. 93 of the 2009 Mining Law) that the State s cumulative economic benefits in a natural resource project not drop below 50% of the total; and (2) the 70% windfall profits tax (impuesto a los ingresos extraordinarios) that investors have argued could take away much of the upside from shareholders who take big risks in investing in mining projects, especially in developing countries. In October 2014, on the advice of Wood MacKenzie, advisors to the government on mining and tax reform, the government amended the regulations (Decree 475 of Oct. 27, 2014, which amended art. 86 of the General Mining Regs.) to change the calculation of both the sovereign adjustment and the metal price at with the windfall profits tax kicks in. Both will now apply only after mine payback from a financial perspective, meaning after payback plus adjustments for compounded inflation and opportunity cost (like the NPV of past investment dollars, as opposed to future cash flows). The discount rate formula to be used for the calculation was also defined to eliminate any future need to negotiate on this point. This means that neither the sovereign adjustment nor the windfall profits tax will be an issue for miners until following an extended period after commercial production begins. The calculation of the sovereign adjustment will now include: for the State, windfall profits, income, VAT and workers profit sharing tax (12% of the 15% tax), as well as royalties paid, and taxes paid in any year in excess carry forward and are cumulative; and for the mining company, free cash flows after payment of all obligations under the development agreement, including the sovereign adjustment in prior years adjusted to their net present value at the time of each annual calculation (this is a big change from before, when the formula was based on income, and is more beneficial to the mining company). And even after payback has been achieved, the windfall profits tax will only kick in at metal prices equal to their 10 year rolling average plus one standard deviation. Regarding other tax changes, last December, the government enacted an amendment to the law that provides for Tax Stability Agreements. The income tax rate will be fixed at 22% for medium scale and large mining projects, and the tax stability can be extended to cover also the 5% tax on remittances abroad (impuesto de salida de divisas or ISD ), and the Value Added Tax (VAT) (currently 12%). Another tax reform we think is in the works is for the Ecuadorean Tax Administration (SRI) to issue the list of which assets will qualify for Accelerated Depreciation (contemplated in art. 147 of the 2009 Mining Law), which would keep income taxes lower in the earlier years of a project. We have been told that this is a done deal, and the only thing that has to be finalized is the list of items that qualify which will then need to be embedded in the customs system. (3) Our partner at the Cascabel copper-gold porphyry project in northern Ecuador, SolGold Plc (AIM: SOLG) earned an 85% interest in the project, became project operator, and announced an ambitious change of exploration strategy on May 12, They are adding a second drill rig, are planning to drill daughter holes from existing holes 5, 7, 8, 9, 10 and 11 to increase the rate of pierce points into the ore body, and are seeking to outline an inferred resource of up to 85 3

4 4 million tonnes at 3.0% Cu Equivalent at the Alpala Central target over the next 12 months. Cornerstone retains a 15% interest in this exciting and potentially company-making project, financed through to completion of a feasibility study. On January 12, 2015, we announced a drill core intercept of 1, % Cu & 0.92 g/t Au (~401m true width) in Hole 9 at Cascabel, including 0.80% Cu & 1.19 g/t Au (~295m true width). This was the best hole since the discovery hole # 5 announced March 3 rd, 2014, which returned 1,306 metres grading 0.62% Cu and 0.54% Au. We are currently still drilling Hole # 11. There are four copper-gold porphyry targets at Cascabel, and Alpala is only the first target to be drilled. (3) We completed additional exploration work at our Bella Maria and Caña Brava projects in Ecuador (see news releases dated October 14, 2014 and February 26, 2015, respectively), and at our Miocene project in Chile (see news release dated May 19, 2015). (4) We have continued to reduce staff, cutting two more senior professional geologists in Ecuador and some administrative staff. (5) We have presented the Company s projects at an investor relations roadshow in Toronto and Montreal in July 2014, at the Sprott Vancouver Natural Resource Symposium in July 2014, the Casey Research Summit in San Antonio, Texas in September 2014, the Mines Latin America conference in Toronto in November 2014, at PDAC in Toronto in March 2015, and will be presenting again at the Sprott conference in Vancouver this July The share price performance during the last year has been a disappointment not only to shareholders who have financed us and believed in us, but also to the management and directors of the Company. We have tried to do what a project generator should be doing, and the work at Cascabel and the LOI with ENAMI are examples of that. We believe that the share price is deeply undervalued and that when the market for junior exploration companies improves there will be a corresponding rise in the Cornerstone share price. Now I would be happy to take your questions. 4

5 Cautionary Notice: 5 This document may contain Forward-Looking Statements that involve risks and uncertainties, such as statements of Cornerstone s plans, objectives, strategies, intentions and expectations. 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 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 For us, uncertainties arise from the behaviour of financial and metals markets, predicting natural geological phenomena 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 this document 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 herein and these statements should not be relied upon as representing its views subsequent to the date of this document. While Cornerstone anticipates that subsequent events may cause its views to change, it expressly disclaims any obligation to update the Forward- Looking Statements contained herein except where outcomes have varied materially from the original statements. 5