Early Warning News Release for Dmyant Sangha

EARLY WARNING NEWS RELEASE PURSUANT TO NATIONAL INSTRUMENTS 62-103 AND 62-104

TORONTO, Jan. 23, 2020 /CNW/ - Dmyant Sangha ("Sangha") has today filed an early warning report (the "Early Warning Report") advising of his holdings in common shares ("Common Shares") of Cornerstone Capital Resources Inc. ("Cornerstone"). The Early Warning Report amends information disclosed in an earlier report filed by Sangha dated July 13, 2017.

On January 22, 2020, Maxit Capital LP ("Maxit"), a controlled affiliate of Sangha, acquired (the "Reportable Event") an aggregate of 211,675 outstanding Common Shares (the "Purchased Shares"), representing 0.65% of the issued and outstanding Common Shares (on a non-diluted basis), in a private transaction.

Prior to the Reportable Event, Sangha, together with Maxit, owned 5,000,000 Common Shares and 200,000 options to purchase Common Shares, of which 150,000 options (the "Exercisable Options") were exercisable to purchase Common Shares as of, or within 60 days of, the Reportable Event. Accordingly, prior to the completion of the Reportable Event, Sangha, together with Maxit, beneficially owned 5,150,000 Common Shares, consisting of 5,000,000 Common Shares and the Exercisable Options, representing beneficial ownership of 15.83% of the outstanding Common Shares (calculated on a partially-diluted basis after giving effect to the exercise of the Exercisable Options). As a result of the acquisition of the Purchased Shares, Sangha, together with Maxit, beneficially own 5,361,675 Common Shares, consisting of 5,211,675 Common Shares and the Exercisable Options, representing 16.48% of the outstanding Common Shares (calculated on a partially-diluted basis after giving effect to the exercise of the Exercisable Options).

The Purchased Shares were acquired at a weighted average price of $2.51 per share for aggregate consideration of $531,630.

The Purchased Shares were acquired for investment purposes. Depending on various factors, including, without limitation, market conditions, general economic and industry conditions, Cornerstone's business and financial condition and/or any other factors that Sangha may deem relevant, Sangha may take such actions with respect to his investment in Cornerstone as he deems appropriate including, without limitation, (i) acquiring, exercising, converting, exchanging, selling or otherwise disposing of securities of Cornerstone or securities exercisable for, or convertible or exchangeable into, securities of Cornerstone and/or (ii) developing plans or intentions or taking actions which relate to or would result in one or more of the transactions or matters referred to in paragraphs (a) through (k) of Item 5 of the Early Warning Report filed on www.sedar.com.

This news release is being issued as required by National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues and National Instrument 62-104 – Take-Over Bids and Issuer Bids and relates to: (i) the Common Shares of Cornerstone, whose head office is located at 1730 St. Laurent Blvd., Suite 800, Ottawa, Ontario, K1G 3Y7; and (ii) Sangha at 181 Bay Street, Suite 830, Toronto, ON, M5J 2T3. A copy of the Early Warning Report can be obtained at www.sedar.com under Cornerstone's company profile or by contacting Dmyant Sangha at [phone].

SOURCE Dmyant Sangha