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Initial Drill Results Confirm Higher than Expected Vanadium Grades on Cornerstone Metal’s Carlin Vanadium Project

Drill Results

Press & Analysts Contact: 

Stewart Chalmers

H4C Group 

+1 818‐681‐3588 

[email protected] 

Initial Drill Results Confirm Higher than Expected Vanadium Grades on Cornerstone Metal’s

Carlin Vanadium Project

February 28, 2018 - Vancouver, British Columbia – Cornerstone Metals Inc. (TSX‐V:  CCC)  (OTCQB: 

CCCCF) (FSE: 1PY) (“Cornerstone” or the “ Company”) announces the results of the first 8 holes of the 20

hole confirmation diamond drilling program on its Carlin Vanadi um Project, Nevada. The new holes

support the neighbouring historic holes with zone continuity in width and grade where expected,

demonstrating an extensive near surface horizontal high grade m ineralized vanadium zone. Five of eight

new holes returned much higher vanadium grades compared to thei r neighbouring historic holes. The

drilling also provides new silver and zinc values not previously documented.

“We are very pleased with the initial drill results as they dem onstrate consistency of the widespread high

grade vanadium zone with good thickness and grade”, said Corner stone President and Chief Executive

Officer Paul Cowley. “These holes are a great step in confirmin g the deposit. It’s not surprising that the

systematic historic Union Carbide drilling provides a solid and reliable base to work from. And adding to

this, all of the new holes within the limits of the historic re source returned higher grades than their

neighbouring historic holes.”

The Carlin Vanadium Project contains one of North America’s lar gest, richest known primary deposits of

vanadium with unsurpassed accessibility. The deposit has a hist oric Inferred mineral resource estimate of

28 million tons at 0.515% vanadiu m pentoxide (V2O5), having a t otal metal content of 289 million pounds

V2O5, based on a 0.3% V2O5 cut-off grade and defined by 127 hol es completed by Union Carbide in the

late 1960s. The historical estimate does not include any recent data available to the Company. The

Company is not treating this historical estimate as current min eral resources and as such, should not be

relied upon. The work needed to upgrade the historical estimate as current mineral resources is to use

current costs and metal prices and include the results from the verification diamond drilling program.

The Carlin Vanadium deposit, as it is known to date, covers an area 2km long by up to 700m wide and can

be subdivided into 4 sectors; the Southern, Central, Northern a nd Western sectors. The Southern and

Central sectors have the most hi storic drilling and thus the bu lk of the historic resource. The Northern and

Western sectors have been lightly drilled and thus hold much sm aller proportions of the historic resource.

The infill confirmation diam ond drilling program conducted by t he Company consists of 13 holes in the

Central sector, 4 in the Southern sector and 3 holes in the Nor thern sector. Results received to date and

reported below include 6 holes from the Central sector and 2 ho les from the Northern sector. Results from

the remaining 12 holes are pending. A map has been added to the Company’s website

(www.cornerstonemetals.ca) to gr aphically demonstrate the new a nd old drill hole collars, outer limits of

the historic resource, the sectors and the section lines A thro ugh C described in this news release

(http://cornerstonemetals.ca/images/PDF/Resource_verification_drilling_v2.pdf).

Holes DDC17-03 through -05 and DDC18-06 were concentrated in th e northern part of the Central sector.

As a way to compare their results to neighbouring older holes, a north-south and an east-west section line

has been drawn though these holes and other historic holes, wit h their intercepts listed in the following 2

tables. Section lines A and B cross at hole DDC17-05. Holes DD C17-04 and -05 and DDC18-06 fall on

the 620m long north-south Section A (refer to map on the Compan y website). Holes DDC17-03 and

DDC17-05 fall on the 540m long east-west Section B drawn throug h the Central and Western sectors. As

all drilling to date on the property has been vertical and the high grade zone is interpreted to be horizontal,

all drill intercepts are considered to be true thickness.

Intercepts Along Section A

Hole ID From (m) To (m) Length (m) V2O5 % Zn (%) Ag (g/t)

R-33 1.52 25.96 27.44 0.99 0.36 N/A

DDC17-04 5.18 20.50 15.32 0.75 0.17 11.6

R-63 0.00 25.91 25.91 0.57 0.44 N/A

DDC17-05 3.67 29.00 25.33 1.07 0.33 7.6

R-30A 0.00 19.81 19.81 0.73 0.17 N/A

DDC18-06 15.60 34.50 18.90 1.07 0.47 7.1

R-71 6.10 42.67 36.57 0.73 0.35 N/A

R-72 33.53 51.82 18.29 0.81 0.34 N/A

R-41 51.82 67.06 15.24 0.64 0.30 N/A

R-37 54.86 79.25 24.39 0.50 0.22 N/A

R-38 18.29 39.62 21.33 0.64 0.46 N/A

R holes are historic drill holes, N/A = not analyzed

Intercepts Along Section B

Hole ID From (m) To (m) Length (m) V2O5 % Zn (%) Ag (g/t)

R-119 18.29 47.24 28.95 0.64 0.17 N/A

R-118 18.29 39.62 21.33 0.48 0.21 N/A

R-120 0.00 22.86 22.86 0.51 0.23 N/A

R-117 35.05 44.20 9.15 0.36 0.27 N/A

R-62 0.00 7.62 7.62 0.55 0.11 N/A

DDC17-05 3.67 29.00 25.33 1.07 0.33 7.6

DDC17-03 15.85 30.5 14.65 0.68 0.25 9.6

R-53 6.10 30.48 24.38 0.42 0.20 N/A

R-52 19.81 33.53 13.72 0.95 0.32 N/A

R-66 59.44 77.72 18.28 0.59 0.17 N/A

R holes are historic drill holes, N/A = not analyzed

Both tables above demonstrate th at the new drilling favourably supports the neighbouring historic holes

with zone continuity in similar width and grade where the zone was expected, demonstrating a widespread

near surface horizontal high grade mineralized zone. Holes DDC1 7-03, -04 and -5, and DDC18-06 all

yielded higher grades than the average intercept in their secti on line table. It should be noted that DDC17-

04 is a step-out beyond the limits of the historic resource area, thus demonstrating potential gains.

From the drill holes listed above, other parallel lower grade v anadium zones lie above and below the high

grade vanadium zone, with grades between 0.2 and 0.45% V2O5 and thicknesses between 4.57 – 18.29m

but are not included in the above 2 tables.

DDC18-07 and DDC18-08 tested the southern part of the Central s ector. As a way to compare their results

to neighbouring older holes, a 300m long northeast section line (Section C) drawn through the Central

sector include DDC18-07 and DDC18-08 together with other historic holes with intercepts tabled below.

Intercepts Along Section C

Hole ID From (m) To (m) Length (m) V2O5 % Zn (%) Ag (g/t)

DDC18-07 1.50 21.00 19.50 0.20 0.10 1.3

R-77 6.10 32.00 25.90 0.54 0.20 N/A

DDC18-08 21.00 60.00 45.00 0.84 0.38 6.5

R-79 48.77 77.72 28.95 0.47 0.30 N/A

R-78 70.10 82.30 12.20 0.69 0.30 N/A

R-38 18.29 39.62 21.33 0.64 0.46 N/A

R-44 24.38 45.72 21.34 0.73 0.43 N/A

R-50 48.77 59.44 10.67 0.72 0.20 N/A

R-23 42.67 54.86 12.19 0.63 0.36 N/A

R holes are historic drill holes, N/A = not analyzed

Again, the Section C table above demonstrates that the new dril ling favourably supports the neighbouring

historic holes with zone continuity in similar width and grade where the zone was expected, demonstrating

the widespread near surface horizontal high grade mineralized z one. DDC18-08 is the thickest and highest

grade on this section line. DDC18-07 intersected the vanadium u nit where expected with similar widths

but, with lower grade. DDC18-07 was drilled outside the limits of the historic resource area.

Other parallel lower grade vanadium zones lie above and below the high grade zone in the above holes with

grades between 0.2 and 0.40% V2O 5 and thicknesses between 4.57 – 19.81m that are not included in the

following table.

DDC17-01 and DDC17-02 were drilled in the Northern sector in an effort to expand this sector of the

deposit to the east. This sector, although typically with good grades (0.61-1.23% V2O5) and thicknesses

(7.62-28.96m), is more characterized as a narrow linear 240m long by 80m wide northern tip of the deposit.

Holes DDC17-01 and DDC17-02 encountered the vanadium unit where expected with typical widths,

however, the grades were lower, 18m @ 0.24% V2O5 and 39m @ 0.18 % V2O5, respectively. These two

holes lie outside the limits of the historic resource.

The drilling program has been supervised by Mr. Cowley, P.Geo., President and CEO of the Company and

Qualified Person for the program. Drill core recoveries average d 85%. Industry standard quality control

and quality assurance protocols have been followed in handling, sampling and shipping the core. The core

has been photographed, geotec hnically logged and geologically l ogged. Extensive specific gravity

measurements have been taken on the core to aid in a future mineral resource estimation. The core has been

cut in half, with one half sent for analysis and the other half stored as witness core in a secure dry facility in

Elko, Nevada. Samples have been sent for analyses to MS Analytical, an ISO 17025 accredited laboratory.

Potential to Expand

The deposit has excellent potential to expand. The size of the known vanadium deposit is limited to date to

the extent of the concentrated drilling by Union Carbide. Nearly all edges of the deposit end with drill holes

containing good grades and widths.

Vanadium’s Growing Importance

Vanadium is also growing in importance to key industrial manufa cturing sectors most notably steel and

renewable energy. Today, more than 85 percent of the world’s va nadium is used in steel manufacturing

applications. Its importance to the energy sector is also growi ng rapidly with more than 10 percent of

vanadium production used in ener gy storage where its substantia l cost and performance benefits make it an

alternative choice to lithium ion in several areas.

About Cornerstone Metals Inc.

Cornerstone’s objective is to adva nce exploration/development s tage copper, precious and strategic

minerals properties to production in the Americas. The Company’ s Management and Board Core

Competence is in exploration, permitting, development, construction, and operation of mining projects.

The Company has an option to earn a 100% interest in the Carlin Vanadium Project, located in Elko

County 22km by road (14 miles) from the town of Carlin, Nevada, and is comprised of 72 contiguous

unpatented mineral claims totaling 461 hectares (1,140 acres). The Carlin Vanadium Project hosts the

Carlin Vanadium Deposit which is locally exposed on surface, wh ere it cuts topography, but mostly is

found at shallow depths, commonly between 0-60m (0-200 ft) below surface. 

Cornerstone also owns 100% (subject to 1.5% NSR) of the West Je rome property, near Jerome, Arizona,

on the west side of Freeport McMoRan patented lands. The proper ty, in a Volcanogenic Massive Sulfide

camp, is a high-grade, massive sulfide target located 2.4 km so uth of the past-producing United Verde (32

million tons grading 4.4% copper, 1.5 oz/t silver and 0.04 oz/t gold). The West Jerome property has

attractive untested drill targets.

ON BEHALF OF CORNERSTONE METALS INC.

per: "Paul Cowley"

CEO & President

(604) 340-7711

[email protected]

Technical disclosure in this news release has been reviewed and approved by Paul Cowley, P.Geo., a

Qualified Person as defined by National Instrument 43-101, and President and CEO of the Company.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies

of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking information

Certain statements in this news re lease constitute "forward-looking" stat ements. These statements relate to

future events or the Company's fu ture performance and include the Company’s ability to meet the

conditions required to exercise in full its option to acquire the Carlin Vanadium project and with respect to

current and planned drill programs, the results of exploration prog rams, and changes in mineral

resources. All such statements involve subst antial known and unknown risks, uncertainties and other

factors which may cause the actual results to vary from those expressed or implied by such forward-

looking statements. Forward-looking statements invo lve significant risks and uncertainties, they should not

be read as guarantees of future performance or results, and they will not necessarily be accurate

indications of whether or not such results will be achieved. Actual results could differ materially from those

anticipated due to a number of factors and risks. Althoug h the forward-looking statements contained in this

news release are based upon what management of the Company believes are reasonable assumptions on

the date of this news release, the Company cannot assu re investors that actual results will be consistent

with these forward-looking statements. The forward-look ing statements contained in this press release are

made as of the date hereof and the Company disclaims any intention or obligati on to update or revise any

forward-looking statements whether as a result of new information, future events or otherwise, except as

required under applicable securities regulations.