US Dollar Collapse: Lithium, Rare Earths, Gold and Silver: Mary Meeker's USA Inc. Debt Bible tnr.v, lmr.v, rm.v, alk.ax, nup.ax, ng.to, laq.v, bvg.c, bva.v, grc.to, amm.to, ktn.v, gbn.v, rvm.to, mgn, asm.v, sgc.v, ngq.to, btt.v, alk.ax, fvi.to, mxr.v, sgc.v, ktn.v, epz.v, cuu.v, mgn, nem, fcx, bvn, auy, abx,

  One picture could be better than thousand words about it,

 but we all need further conviction and now we have it.

KPCB. USA Inc. A Basic Summary of America's Financial Statements.

If you would like to know why did it happen and who have benefited from it:

"Jim Puplava is brilliant with his new Financial Sense podcast "Inside Job". If you are still wondering why it all happen you should address the Federal Reserve Private Bank status - it is correct Federal Reserve is as federal as Federal Express. Now you can guess who gained already from the explosion in U.S. Debt and who will benefit more when the FED rates will move up following the market rates. Listen to this podcast and spread the word."

What will be next and how to survive?

Catalyst.

"All those QE exercises, which we have discussed above, will unleash a very powerful force of Inflation all around the world. The new most powerful trend in 21st century will be the Energy or lack of it to drive the world and its population forward. All recent progress is based on relatively cheap energy available to us for the last one hundred years. The chart above is from the latest groundbreaking revelations of International Energy Agency - it shows to us that we do not have that luxury any more. Cheap oil is gone - according to the IEA - and "Crude Oil: fields yet to be found - is the politically correct way of saying Oil Shortage. We have now Population Growth multiplied by Peak Oil and Inflation, which will push all prices higher."

  Our Catalyst observations on markets were published just a few short months ago, but reality which  is unfolding now is even more dramatic and explosive than we have envisioned before. We do not know what people will do when they will realize that they were used and dumped and, maybe, there is no way out any more. One thing is unions striking for bargaining powers and another is hungry mob on the streets and Fuel Riots. There will be attempts to "use the scalpel" and cut some expenses, but we can be almost sure that QE n+1 is coming next.

"We have been proudly running Gold Bull for nearly ten years now: Gold first, than Majors and follow up on Junior side. We were always wondering about Future of Energy and have collected some great memories on Uranium Run, Solar and Water plays. Gold Bull has years to run, but we are searching constantly for new Macro trends - it is very interesting to find out what will be the next Bull which will come out of these rubbles in case we are right and Inflation will be the answer to the Deflation war scenario. It is time for Lithium to come into picture.
  Lithium is the leveraged play on Peak Oil and rising Oil price with coming Inflation. Sector is very small and market is even more smaller - everything is ready for the parabolic move in case of supporting fundamentals.
  Recent Oil Spill shows the real price for Oil and leaves no doubt for us that there will be no more cheap oil: offshore drilling is costly now, it will be even more costly later. Relatively cheap Oil is in the hands of state owned companies in not so friendly to U.S. places. Oil squeeze will come from diminishing production rates and rising Inflation. The move will be even more explosive than in the Gold market - in the end only minority of people is effected by the gold price even now, Oil is the underlining of all Western Energy Diet. It is not sustainable. Emerging markets are taking more and more share of world wide production, oil producing countries are spending more at home. If you account all cost to produce, deliver and protect Oil supply to U.S. corp the price is already above 150 USD/barrel."

"This year we have a staggering number of reports and warning on the looming Peak Oil situation. It takes time for reality to settle in, particularly,when nobody knows what to do with it. We have put REE in the headline and only few months ago we would have to explain, what is it all about - now suddenly everybody is talking about REE and stocks involved in Rare Earths are all making new highs. It takes a crisis for us to realise that fundamentals are driving the real trends. Sudden realisation that China controls more than 90% of REE market and their reserves maybe will last only for another twenty years, created the catalyst in the market place. What will it take to realise that we are running out of cheap oil? Another crisis?

  We are talking here about the powerful mega trend Inflation multiplied by Peak Oil situation - we have to move and readjust our society. Our Energy diet is not sustainable any more. We are lucky in a sense that there is technology available to us to survive the Oil Shock if we will all move fast - Electric Cars. It is our Next Big Thing and at the heart of this disruptive technology lie strategic commodities: REE and Lithium."

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US Dollar Collapse: Gold and Silver: Bernanke Downplays U.S. Inflation Risk tnr.v, laq.v, asm.v, ngq.to, mxr.to, bvg.v, bva.v, ura.v, abn.v, alk.ax, rvm.to, slw, mgn, epz.to, grc.to, auy, ktn.v, fvi.to, btt.v, gbn.v, cgp.v

  

     We have Buy on Daily for Gold and Silver now. It is not the precise science, but rather the opportunity for the markets to develop the next move. It is in any case not an investment advise, as usual, but we would like to share this observation - let's see what will happen next...

Catalyst 2011: Gold and Silver:

"Our list here, which is for our and your own homework - if you like our ideas about the good time on the road - will be the following: TNR Gold, Goldstone Resources, Revett Minerals, Avino Silver, NGeX Resources, La Quinta Resources, Golden Band Resources, Fortuna Silver, Esperanza Silver, Mines Management, Bitteroot Resources, Max Resource, Copper Fox Metals, Cornerstone Resources, Kootenay Gold, Yamana Gold, Bravo Gold, Bravada Gold, Almaden Minerals, Sunridge Gold.

  Most of these stocks have already enjoyed QE party and we had fun with the most of them after summer napping time, others are still in consolidation patterns and some are the clear underdogs - further investigation and DD in the management, properties and potential catalyst on the company level could show, who of them can have the next run."

  We guess that we can all relax now and continue to buy US Treasuries...by the way FED becomes once of the largest holders of US Treasuries on par with China and Japan now. 

  We have just three small concerns with this perfect scenario of getting wealthy again - by printing money.

1. We still remember Maestro Greenspan with his "Fragmented Real Estate market, which can not be in a Bubble..."

2. Mr Bernanke assurances that the "Mortgage crisis is contained..." just before the Lehman collapse.

3. Oil price is above 100 usd/b and Wikileaks revelations about Peak Oil situation and real Saudi Arabia Oil reserves.

  Maybe we should all just send to FED our grocery bills every month - otherwise they can miss the picture again.

MarketWatch:

THE FED
Feb. 9, 2011, 1:45 p.m. EST
Bernanke downplays U.S. inflation risk
Fed chief’s first House testimony since GOP reclaimed the chamber
By Greg Robb, MarketWatch

WASHINGTON (MarketWatch) — Federal Reserve Board Chairman Ben Bernanke sought Wednesday to throw cold water on inflation jitters, saying home-grown pricing pressures aren’t a problem at the moment...more"

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Gold and Silver: Buy Signal on Daily - Correction Could Be Over tnr.v, ng.to, laq.v, bvg.c, bva.v, grc.to, amm.to, ktn.v, gbn.v, rvm.to, mgn, asm.v, sgc.v, ngq.to, btt.v, alk.ax, fvi.to, mxr.v, sgc.v, ktn.v, epz.v, cuu.v, mgn, nem, fcx, bvn, auy, abx,

  We have Buy on Daily for Gold and Silver now. It is not the precise science, but rather the opportunity for the markets to develop the next move. It is in any case not an investment advise, as usual, but we would like to share this observation - let's see what will happen next...

Catalyst 2011: Gold and Silver:

"Our list here, which is for our and your own homework - if you like our ideas about the good time on the road - will be the following: TNR Gold, Goldstone Resources, Revett Minerals, Avino Silver, NGeX Resources, La Quinta Resources, Golden Band Resources, Fortuna Silver, Esperanza Silver, Mines Management, Bitteroot Resources, Max Resource, Copper Fox Metals, Cornerstone Resources, Kootenay Gold, Yamana Gold, Bravo Gold, Bravada Gold, Almaden Minerals, Sunridge Gold.

  Most of these stocks have already enjoyed QE party and we had fun with the most of them after summer napping time, others are still in consolidation patterns and some are the clear underdogs - further investigation and DD in the management, properties and potential catalyst on the company level could show, who of them can have the next run."

"We are what we eat" and our financial and regulation authorities must be all eating nuts these days. The guy with 10 million dollars "under management" can control 10% of the U.S. Gold Futures - welcome to post crisis risk management!

  This is nothing, but the excuse for the correction in Gold soon to be over - time is to make your shopping list of your favorite juniors. Gold has easily found buyers during recent retracement after incredible run and now is posed for another uphill battle with the wall of worry.

  On a daily chart we are at the same level on MACD as we were at the last correction in the beginning of August, just before Gold and junior miner's 2010 home run.

  Below on weekly chart we have a strong bullish candle and STO is close to potential reversal - the way how the Gold market held this recent correction provide us with comfort that this Bull is far from over and juniors miners, particularly, will ignite the next leg up.

  Geopolitical situation in the Middle East ignited by the uprising Egypt and Oil closing above 100 will spike Inflation fears all around the world -negative real rates during this stagflation phase will provide necessary fundamental support to the gold bull market, silver will bring even more excitement and cherry picked juniors will bring the memories of the fun days just before the crisis.

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Gold: Correction Could Be Over: Huge U.S. gold position liquidated by fund-WSJ tnr.v, laq.v, asm.v, ngq.to, mxr.to, bvg.v, bva.v, ura.v, abn.v, alk.ax, rvm.to, slw, mgn, epz.to, grc.to, auy, ktn.v, fvi.to, btt.v, gbn.v, cgp.v

  We take it you've hear of the phrase "We are what we eat" - our financial and regulation authorities must be all eating nuts these days. The guy with 10 million dollars "under management" can control 10% of the U.S. Gold Futures - welcome to post-crisis risk management!

  But this is nothing; the excuse for the correction in Gold will seize to be valid in time. Speaking of time, now is the time to make your shopping list of your favorite juniors. Gold has easily found buyers during recent retracement after incredible run, and now is poised for another uphill battle with the wall of worry.

  On a daily chart, we are at the same level on MACD as we were at the last correction in the beginning of August, just before Gold and junior miner's 2010 home run.

  Below on weekly chart we have a strong bullish candle, while the  STO is close to potential reversal - the way how the Gold market held this recent correction provide us with comfort that this Bull is far from over - the juniors miners in particular will ignite the next leg up.

  Geopolitical situation in the Middle East ignited by the uprising Egypt and Oil closing above 100 will spike Inflation fears all around the world - negative real rates during this stagflation phase will provide necessary fundamental support to the Gold bull market, while Silver will bring even more excitement and cherry picked juniors will bring the nostalgic memories of the fun days just before the crisis.

Reuters:

Huge U.S. gold position liquidated by fund-WSJ

LONDON | Fri Jan 28, 2011 5:44am EST

Jan 28 (Reuters) - Hedge fund SHK Asset Management liquidated a U.S. gold futures position this week valued at over $850 million, more than 10 percent of the main U.S. futures market, the Wall Street Journal reported on Friday.

As a result of the move, which was made on Monday, the number of gold contracts on CME Group Inc.'s Comex division plunged by more than 81,000, to about 500,000, in their biggest single fall ever, the WSJ reported. It said an average daily move is about 3,000 to 5,000 contracts.

Daniel Shak, who runs the $10 million fund, told the newspaper that the trade had been profitable for him for years, but it stopped working and the exchange kept raising his margin requirements, forcing him to put up more money.

Shak said that when the exchange raised it by 25 percent on Monday, he decided to cut his losses and end the trade, the newspaper said.

(Reporting by Jan Harvey; Editing by Jason Neely)"

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US Dollar Collapse: Mess continued: Geithner Urges Debt Limit Increase, Warns of Default Risk if No Action tnr.v, grc.to, auy, sgc.v, ngq.to, ktn.v, rvm.to, mgn, asm.v, epz.v, fvi.to, bva.v, bvg.v, laq.v, mxr.to, slw, cgp.v, btt.v, gbn.v, abn.v, ura.v,

  

  Mess continued - Now Paul Volcker is gone. We guess, that nobody will be taking Inflation seriously any more. Volcker Rule to separate banks, depositors and bankers trading on margin with depositors money for their bonuses was diluted and republican congress now does not left any hope. Go Federal Express, sorry Federal Reserve, when Goldman Sachs will make its IPO?

  We have called it The End of Money before:

"We have the very strong complications with FED engaged in QE in a situation, when Federal Reserve is as federal as Federal Express. In absence of Gold - as the base for the monetary system - with it's external disciple, we have a traders paradise, when Enron is auditing itself. Arthur Anderson has not saved the shareholders of Enron and collapsed with it's client - today in our monetary system nobody even pretends to be sane any more."

  The recent history aberration happened in August 1971 when for the first time in known history of the mankind for the last 5000 years the money became a pure FIAT and seized to be backed by the Gold. US Dollar was cut lose from its royal bloodline of gold credibility and from that moment nothing was the guarantee of its value apart from the credibility of the government. So now for the last 40 years everybody decides for themselves how strong is their belief in self constrained politicians - gold and silver seems to be in doubt. The situation is getting more complicated, when you realise that the dollar has nothing to do with the US elected President and its government and issued by the privately held by banks FED - Federal Reserve, which is as Federal as Federal Express. Another interesting thing will be that every dollar issued is debt effectively to FED in the end and now total debt of U.S. Corp. is close to 100% of GDP.

   It is not the charity by all means and interest rates will go up on the record amount of debt, move will be gradual in order not to break subjects' backs and keep them running the treadmill.

  Gold and Silver breaks the circle, you are taking your wealth out of base for monetary multiplication and protect yourself from inflation tax, but you need to have the capital to step up to the plate.

  Inflation as a function of monetary expansion, which gold is indicating and raising debt is fueling on, will strike most at those who are constantly in need: who spends on food and energy most of their income. It is the hidden tax on poor and middle class - rising energy and food prices will cut disproportionally into their  tight budgets.

  Oil keeps servitude going day in and day out, stop the pump and everything stops, bring the Oil price to 150 dollars and you have 2008 all over again. Now we are already close to 100 dollars and we are still in the housing free fall state.

  Electric Cars break servitude to the Oil gang and stop the "opium trade" - you and your community can brake the circle and charge from the grid, local sources of Solar and Wind etc. It is much more than pure Electric feel, it is the matter of survival.

  After Oil reach 150 dollars the questions about range and battery cost will be irrelevant, you will be just happy to drive.

  Peak Oil, admitted now by U.S. Energy Secretary Steven Chu means that the half is already gone and we still need oil to move to post carbon society - it is not about money any more, but about integrity of the society as we know it.

"All those QE exercises, which we have discussed above, will unleash a very powerful force of Inflation all around the world. The new most powerful trend in 21st century will be the Energy or lack of it to drive the world and its population forward. All recent progress is based on relatively cheap energy available to us for the last one hundred years. The chart above is from the latest groundbreaking revelations of International Energy Agency - it shows to us that we do not have that luxury any more. Cheap oil is gone - according to the IEA - and "Crude Oil: fields yet to be found - is the politically correct way of saying Oil Shortage. We have now Population Growth multiplied by Peak Oil and Inflation, which will push all prices higher."

Bloomberg:

Geithner Urges Debt Limit Increase, Warns of Default Risk if No Action

Treasury Secretary Timothy F. Geithner said lawmakers must raise the federal borrowing limit in the first quarter of 2011 or risk a default on U.S. debt and a loss of access to global credit markets.

A failure to act would cause “catastrophic damage to the economy, potentially much more harmful than the effects of the financial crisis of 2008 and 2009,” Geithner said in a letter to Speaker of the House John Boehner, Senate Majority Leader Harry Reid and all other members of Congress. Lawmakers should act before a default becomes “imminent” because damage from even a short-term disruption “would last for decades.”

The Treasury estimates the debt limit could be reached as early as March 31, and “most likely” between that date and May 16. The limit stands at $14.29 trillion, leaving about $335 billion of “headroom,” Geithner’s letter said.

Boehner, a Republican from Ohio, said in a statement Congress needs to pair a debt-limit increase with spending cuts and changes to a “broken” budget process. He said the country can’t afford default or to “recklessly” keep borrowing.

“The American people will not stand for such an increase unless it is accompanied by meaningful action by the President and Congress to cut spending and end the job-killing spending binge in Washington,” Boehner said.

Geithner said that even with the kinds of spending cuts under discussion, like reverting to spending levels from fiscal year 2008, “the need to increase the debt limit would be delayed by no more than two weeks.”

The Treasury chief also said his department’s toolkit of emergency measures, such as tapping some government retirement funds and suspending some types of intergovernmental lending, would delay a debt ceiling breach “by several weeks.” At that point, he said, “no remaining legal and prudent measures” would be available and the U.S. would start to default.

Obama administration officials said they want to separate the debt limit from other fiscal-policy concerns. In a briefing with reporters today, a Treasury official predicted Congress would act to avert a crisis.

The debt limit should be resolved without being tied to long-term fiscal issues including spending and taxes, the Treasury official told reporters. Lawmakers will probably agree to raise the limit because of the consequences of the idea that the U.S. could default, the official said.

Federal Deficit

The U.S. had a $1.3 trillion budget deficit in fiscal year 2010, which ended Sept. 30. President Barack Obama’s debt- reduction panel failed last month to agree on recommendations for ways to reduce the annual deficit to about $400 billion in 2015.

Lawmakers are likely to wait “until the last minute” to pull back from the brink, said Stephen Stanley, chief economist at Pierpont Securities LLC. He predicted the House would seek to win concessions from the Senate and the White House by using the debt ceiling as leverage.

“Usually, the debt limit hike is more of a rhetorical than substantive debate, a painful vote that has to be done but nothing more than an opportunity to score political points,” Stanley said in an e-mail to Bloomberg. “This time, obtaining passage will be more complicated because it will be tied to substantive budget policy.”

The White House declined to respond directly to Boehner’s statement and pointed to comments by spokesman Robert Gibbs today on MSNBC’s “The Daily Rundown.”

‘Adult Conversation’

Last year, Boehner said the government is “going to have an adult conversation around the debt ceiling,” Gibbs said on the program, according to a transcript. “We’re going to have to -- because Republicans and I think the speaker understands, he’s got responsibilities.”

Gibbs wouldn’t rule out linking a debt-ceiling vote to restrictions on spending, saying the conversation “is going to start before and end well after the debt-ceiling vote about how we get our fiscal house in order.”

House Budget Committee Chairman Paul Ryan said a short-term debt ceiling increase may be part of the GOP strategy to force spending control. Regarding Obama, he said it’s “his choice” if he were to refuse to sign a bill that contained a debt-limit increase, creating the risk of default. He said lawmakers and the administration can negotiate how long any debt ceiling increase might last.

Spending Controls

“Do I want to see this nation default? No,” Ryan said at a National Press Club event today. “I want to see that we get substantial spending cuts and spending controls in exchange for raising the debt ceiling.”

Ryan said he would not support a “naked” debt limit increase. “Nobody likes brinksmanship, but what we really don’t like is runaway spending that’s threatening this country,” he said.

Geithner’s letter tackles Republican “misconceptions” that the debt ceiling is tied to spending cuts, said Stan Collender, a former congressional budget aide and now managing director of Qorvis Communications in Washington. “The Treasury Secretary is saying in this letter that, when it comes to the debt ceiling, the GOP is wearing no clothes,” he said.

To contact the reporter on this story: Rebecca Christie in Washington at rchristie4@bloomberg.net;

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Gold and Silver in Ecuador: Cornerstone authorized to recommence exploration at Flagship Shyri property in Ecuador cgp.v, laq.v, bvg.c, bva.v, tnr.v, ng.to, grc.to, amm.to, ktn.v, gbn.v, rvm.to, mgn, asm.v, sgc.v, ngq.to, btt.v, alk.ax, nem, fcx, bvn, auy, abx,

  

  Our another sleeping beauty among junior miners is coming to life these days - Cornerstone Capital Resources enjoyed support of Lukas Lundin one day and just before the meltdown was struggling with uncertainty in Ecuador. Financial crises has provided one more time the time machine for us to step up into this story at the valuation of the bitten into the dust company.

Catalyst: Gold and Silver.

Cornerstone Resources has been exploring in Ecuador since 2005 through its wholly-owned subsidiary, Cornerstone Ecuador S.A. Currently Cornerstone holds the mineral rights to 14 concessions covering 36.3 km² in Ecuador's central cordillera. These under-explored areas offer tremendous potential for discovery of epithermal gold-silver and porphyry copper-gold deposits.

Consistent with its business model, Cornerstone has secured partners to advance exploration on two of its largest Ecuadorian projects. The Shyri property (30,283 ha in 10 concessions) is subject to an option and joint venture agreement with Intrepid Mines Limited of Australia. The property encompasses three gold prospects, Gama, Vetas Grandes and Cañaribamba and is strategically located between the 3.5 million ounce Quimsacocha gold project to the east and the Rio Blanco gold project to the northwest. The Macará area of interest encompasses 2,500 km² of prospective geology in southern Ecuador. It includes the 1,452 ha Bella Maria concession and is subject to a strategic alliance and option agreement with Newmont Ventures Limited. Stream sediment sampling and prospecting within the area of interest have identified significant anomalous gold and base metals in stream sediment and rock samples.

Cornerstone also holds a 100% interest in the Caña Brava (3,125 ha in 2 concessions) and Bella Maria (1,401 ha in 1 concession) gold-silver properties, and is seeking joint venture partners to advance exploration on these highly prospective projects.

oint Ventured or Optioned Properties:

Shyri - Gold, Silver & Copper (Intrepid Mines Limited)

Macara - Gold, Silver (Newmont)

Available for Option: 100% Cornerstone Properties

Bella Maria - Gold

Caña Brava - Gold, Silver

Mount Pearl, NL, Canada: Cornerstone Capital Resources Inc. (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) announced today that the Company has been authorized by the Ministry of Non-Renewable Natural Resources - Ministerio de Recursos Naturales No Renovables (MRNNR) to restart all exploration activities, including diamond drilling, in Loma Quinuas and Aguarongos, two of its three wholly-owned Gama prospect concessions in Ecuador. Additionally the Company reports that, in accordance with the new mining law and applicable regulations, it has been granted title to these mining concessions for 25 years from the date of issue, with options to renew for additional periods of 25 years.
"We are very pleased to be the first exploration company to receive full authorization from MRNNR under the new mining legislation in Ecuador," said Yvan Crepeau, President, Cornerstone Ecuador S.A. (CESA). "We have worked diligently in co-operation with MRNNR, the Ministry of Environment (ME) and the Government of Ecuador since the mining moratorium was imposed in April of 2008 to achieve this important milestone. We have great confidence in the mineral potential of Ecuador and we look forward to advancing our Gama prospect and our other highly prospective properties to create significant shareholder value for investors who have patiently supported the Company."
CESA has received all the substituted mining titles for its concessions in Ecuador and, to date, the Gama Project has obtained all the authorizations and permits required by Ecuadorean law. Approval to resume work on the other wholly owned Gama prospect concession, Gama Norte, is expected in the near future. CESA has maintained key staff in Ecuador during the mining moratorium and is well-positioned to re-activate exploration programs.
The GAMA Prospect
The Gama prospect comprises an extensive, sub-horizontal high sulphidation alteration system occurring over a minimum area of 8.5 km by 3 km within the Aguarongos concession. The strongly zoned alteration system occurs between the 3500 m to 3800 m elevations and is centered over two high level, porphyry-type intrusions. Cornerstone has completed extensive geological, geochemical and geophysical (magnetic and IP) surveys over the prospect and has outlined several high priority targets which will be the focus of the initial drilling program, details of which will be announced in the next few days. Iamgold's 3.4 million ounce Quimsacocha gold deposit occurs at similar elevations approximately 12 km southeast of Gama.
A post-mineralization, auriferous hydrothermal breccia zone at Gama, the Ermitas breccia, contains a variety of altered and mineralized fragments in a sulphide matrix. The breccia, which contains abundant silica-pyrite-enargite clasts, has returned values up to 3.8 g/t Au, 67 g/t Ag and 0.1% Cu over 1.4 m in channel samples from limited outcroppings. It is interpreted that the mineralized fragments within the breccia represent gold mineralization at depth that has been carried to the surface with the ascent of hydrothermal fluids (Press Release dated July 31, 2006 -- available atSEDAR).
On October 29, 2009 Cornerstone and Intrepid Mines Ltd. (TSX-IAU) (ASX-IAU) announced that they had signed a binding letter of intent (LOI) outlining the terms of an option/joint venture arrangement for Cornerstone's Shyri property in southern Ecuador which includes the Gama, Vetas Grandes and Cañaribamba prospects. Cornerstone and Intrepid are preparing the final terms and conditions of the earn-in and joint venture and expect to conclude a Definitive Agreement in the near future.
Related News
In a related event, Cornerstone, through its subsidiary Cornerstone Ecuador, S.A. (CESA), has served notice of the limited lifting of force majeure to Sierramin Minera SA, the original vendor of the Shyri concession. The terms of that agreement provided for payment of advance royalties to Sierramin on a certain schedule following the completion of the 100% earn-in by Cornerstone, which was announced in January 2008. These payments and other obligations were suspended during force majeure but will now resume according to the terms of the agreement.
Other Ecuador Properties
Concessions in Cornerstone's other project areas (Shyri (7), Macara (1), Monterrey (2) and Bella Maria (1)) are at an early stage of exploration. Reconnaissance work is currently ongoing on Macara in partnership with Newmont. Preliminary environmental assessments were prepared for the Vetas Grandes and Cañaribamba prospects on the Shyri property in 2007 but will need to be updated according to new criteria, publicized and submitted to the ME. Authorizations to restart exploration activities on these other concessions will be announced as they are received.
Database Ecuador
The Sierramin agreement also gave Cornerstone rights to a detailed regional geochemical database comprised of over 5000 heavy mineral, BLEG, sand, silt and rock samples collected over approximately 5,500 km2 of southern Ecuador. The database had been generated in the mid to late 1990's at a cost of approximately US$1.6 million but has seen little follow-up. Cornerstone will be working to attract a partner to form a regional exploration alliance to explore the area using the database as a guide.
Other News
During the past two years CESA's team has been actively examining exploration opportunities in other mining friendly South American jurisdictions. Currently we have reached agreement on two such opportunities and upon the successful conclusion of the earn-in agreements the full details will be announced.
This press release was approved by Colin B. McKenzie, P.Geo., a Cornerstone Director and a Qualified Person in accordance with National Instrument 43-101.
About Cornerstone
Cornerstone Capital Resources Inc. is a mineral exploration company based in Mount Pearl, Newfoundland & Labrador, Canada, with a diversified portfolio of projects in Canada and Ecuador and a strong technical team that has proven its ability to identify, acquire and advance properties of merit. The company's business model is based on generating exploration projects whose subsequent development is funded primarily through joint venture partnerships.
Further information is available on Cornerstone's website: www.cornerstoneresources.com or for investor, corporate or media inquiries, please contact:
Investor Relations:
Email: communications@crigold.com
North America toll-free: 1 (877) 277-8377
Martti Kangas - Direct Line: 1 (647) 521-9261
Paul Benwell / Pat Kairns - Direct Line: 1 (514) 904-1333
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January 4th, 2011
November 10th, 2010
Cautionary Notice:
Certain statements contained in this press release may be considered as forward-looking. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results. 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.
On Behalf of the Board,
Glen H. McKay
President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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