SolGold To Make Offer To Combine With Cornerstone Capital Resources Inc.

AUSTRALIA - SolGold plc reported that it intends to make an offer to purchase all of the issued and outstanding common shares of Cornerstone Capital Resources Inc. for consideration consisting of ordinary shares of SolGold. If the Offer is successfully completed, holders of Cornerstone Shares who tender their shares under the Offer will receive 0.55 of a SolGold Share in exchange for every Cornerstone Share tendered.

Nicholas Mather, Chief Executive Officer of SolGold, said, "We are pleased to have reached the point where we feel that an offer to combine SolGold and Cornerstone makes sense for Cornerstone shareholders. The combined entity will have tremendous economic upside, further de-risk the ownership structure and present a simplified and highly attractive value proposition for investors. We encourage Cornerstone shareholders to closely consider these factors and we are confident that once they do, they will recognize the potential this proposal holds and tender to our offer."

Beyond Cascabel, SolGold holds 72 additional 100%-owned licenses in Ecuador that are highly prospective, and which have yet to have their full potential value assessed. Of these 72 concessions, SolGold has identified 11 priority targets - the most advanced of which are La Hueca, Porvenir, Rio Amarillo, Cisne Victoria, Cisne Loja, Blanca and Timbara - which show a strong probability of being added to SolGold's project pipeline. For example:

 The La Hueca project is in the south of Ecuador within the eastern Jurassic Belt (which also contains Lundin Gold's Fruta del Norte epithermal gold deposit (14 Moz Au), the Mirador copper-gold porphyry deposit (3 Mt Cu, currently being developed by Chinese consortium CRCC-Tongguan) and the Santa Barbara gold-copper porphyry deposit (8 Moz Au, contained within Lumina Gold's Condor project). The project area covers 150km2 on 3 concessions and hosts 6 identified porphyry centers. Geological mapping, stream sediment sampling and rock chip samples, including a sample containing 13.8% copper, have shown the presence of a quartz vein network containing several minerals characteristic of copper-gold porphyries such as chalcopyrite, bornite and molybdenite.

The Porvenir project is also in the south of Ecuador. A stream sediment sampling program initially delineated two geochemical anomalies within a larger 6km x 5.5km stream anomaly. These anomalous zones are known as the Derrumbo and Bartolo prospects. Detailed follow up mapping and rock chip sampling continue to locate additional mineralized outcrops at both the Bortolo and Derrumbo target, with rock chips grading up to 8.7% copper. Subsequent extended rock-saw channel sampling along exposed outcrops yielded 62.4m @ 1.16 CuEq (0.71 % Cu, 0.71 g/t Au) (open-ended), including 29.5m @ 1.56 CuEq (1.01 % Cu, 0.89 g/t Au) from 12.1 to 41.6m.  The main prospective target area covers a zone 1.5km x 1km in area. Drill testing and ground magnetics are planned at the most prospective target in the first quarter of 2019.

The Blanca project is in Ecuador's Northern Eocene Belt 8 km north-west of the Cascabel concession. Sampling has identified a gold-rich epithermal quartz vein (with up to 617g/t Au), known as the Cielito vein prospect. The eastern part of this vein system lies within the area of mutual interest with Cornerstone, but there has been no significant work on the extension.

The Timbara project is located within the eastern Jurassic Belt in the south of Ecuador. Initial stage geochemical sampling and reconnaissance mapping has located promising mineralized outcrops containing chalcopyrite and traces of bornite. A rock chip sample from a bornite-rich vein returned best results of 28.89% Cu.  These veins are believed to be a continuation of the porphyry corridor identified at SolGold's La Hueca project described above.

The Cisne Victoria project is located in south eastern Ecuador, the project consists of an epithermal zone of alteration and mineralization indicative of the presence of a large porphyry system. Best sampling results have returned 7m @ 2.29% copper, 0.73 g/t gold and 8.83 g/t silver.

The Cisne Loja project is again located in southern Ecuador and is characterized by outcropping epithermal style low temperature quartz vein metallurgy and a 2.5-1.5km area. Rock chip samples and selected veins range in grade up to 15.25g/t gold and 23.6g/t silver.

The Rio Amarillo project is located in northern Ecuador some 30km south east of Cascabel. The Rio Amarillo project consists of two target lithocaps which are believed to represent clay, pyrite and silica zones over the top of mineralized copper gold porphyry systems. The longest of these is approximately 6km in area has yielded rock chip sample results up to 30g/t gold from a mineralized epithermal quartz vein.

The company’s address is Level 27, 111 Eagle Street, Brisbane, Queensland, Australia 4000, www.solgold.com.au.