Mr. Rob Bruggeman reports

CANSTAR OUTLINES 2023 GOLD EXPLORATION TARGETS IN NEWFOUNDLAND

Canstar Resources Inc. has outlined key gold exploration targets for the upcoming 2023 field season on the district-scale Golden Baie project in south-central Newfoundland.

Regional exploration work done to date on the Golden Baie claims has identified extensive surface gold anomalies that span 100 kilometres along the same major fault corridor as the Queensway project to the northeast. The size and distribution of gold anomalies on the Golden Baie project are impressive and suggest significant potential for gold discoveries, based on other orogenic gold projects like Bendigo-Fosterville in Australia and Mother Lode in California.

Two thousand twenty-two exploration work by Canstar confirmed additional mineralization at the Kendell prospect, with highlight drill intercepts that included 20.6 grams per tonne gold over 3.5 metres, including 58.2 g/t gold over 1.1 m, and 3.2 g/t Au over 22 m, including 18.1 g/t over 1.0 m (see news releases dated July 5, 2022, and March 13, 2023). In addition to these high-grade drill results, regional exploration work completed in 2022 highlighted the potential for brand new discoveries in areas with little or no historical gold exploration work. Examples of new discoveries include the Facheux Bay and Wood Cutter targets, which are now high-priority areas for additional exploration work.

Key targets for the first phase of the 2023 exploration program

Wolf Pond prospect -- Two thousand twenty-two drilling confirmed shallow gold mineralization within a three-kilometre-long soil anomaly that is situated approximately 300 m south of historical drilling that outlined gold mineralization over a strike length of 450 m. These results suggest the potential for shallow disseminated gold mineralization over a large area, conveniently located near a paved highway. Additional prospecting and trenching are planned in order to define priority drill targets.

Facheux Bay target -- Regional exploration work in 2022 discovered gold mineralization of up to 18.4 g/t gold in outcrop grab samples along a 600 m regional trend with a potential strike length of 10 km. Mapping and prospecting of this prospective trend are planned for this summer and are expected to be straightforward and cost-effective due to the absence of overburden.

Wood Cutter target -- Located adjacent to the Baie d'Espoir highway, 2022 prospecting identified gold mineralization over an area with a strike length of 350 m and assays up to 19.7 g/t gold on a trend that is parallel to Wolf Pond, which is 1.1 km to the northeast.

Matthieu Lapointe, vice-president of exploration, stated: "The team is excited to follow-up on the results of the 2022 program. Facheux Bay and Wood Cutter are new high-grade discoveries that we intend on rapidly advancing to the drill-ready stage.

"In addition to the high-grade targets, the company is also evaluating bulk-tonnage targets. Wolf Pond is underpinned by a three-kilometre-long gold-in-soil anomaly. This is the largest soil anomaly on the Golden Baie property and we believe there is considerable potential to delineate a large gold system at Wolf Pond with continued systematic exploration."

Wolf Pond prospect

Historic drilling at Wolf Pond in the 1980s delineated a mineralized zone averaging two to three m thick with grades of three to five g/t gold within a broader envelope five to eight m thick averaging one to two g/t gold. The Wolf Pond gold zone was delineated by previous operators over a strike length of 450 m and to a depth of 165 m and is open both along strike and at depth.

Approximately 300 m southeast of the Wolf Pond three km by 50 m gold-in-soil anomaly, with values ranging from 30 to 752 parts per billion gold, which had never been drill tested by previous operators. In 2022, Canstar drilled four holes totalling 679 m into the soil anomaly, testing approximately 150 m of strike length. All four holes intersected gold mineralization with the best results from the two most northeasterly holes WP-22-04 (1.9 g/t Au over 6.7 m) and WP-22-02 (0.8 g/t Au over 11.5 m including 1.2 g/t Au over 5.0 m). Mineralization is associated with arsenopyrite-stibnite-bearing quartz veins hosted in felsic-intermediate volcaniclastics intercalated with sediments.

Facheux Bay target

Prospecting and reconnaissance mapping by Canstar in the Facheux Bay area in 2022 led to a newly discovered zone of quartz veining with associated arsenopyrite hosted in fine-grained sedimentary rocks, similar to those that host the Kendell prospect gold mineralization. Outcrop sampling of this zone delineated a gold trend with grades exceeding 1.0 g/t that strikes northeast-southwest for over 600 m and has samples grading up to 18.4 g/t gold.

LiDAR (light detection and ranging) interpretation of the Facheux Bay area suggests that the anomalous gold mineralization is correlated with a regional fault that extends another 3.5 km to the southwest and 4.5 km to the northeast. Additional mapping, prospecting and channel sampling are planned along this trend in order to define priority drill targets. This area is only accessible by boat and by air, but field work is expected to be efficient due to the lack of overburden in this area.

Wood Cutter target

The Wood Cutter target was identified in 2022. It is located adjacent to the Baie d'Espoir highway, approximately 1.1 km south of the Wolf Pond prospect along what may be a parallel trend with gold mineralization. Quartz vein float samples collected in 2022 over an area with a strike length of 350 m returned gold assays of 19.7 g/t, 11.8 g/t, 4.4 g/t and 4.2 g/t. Samples collected in this area also contain elevated antimony, in the form of stibnite, with assays up to 2.2 per cent Sb (see news release dated Dec. 13, 2022). Additional sampling and trenching are planned at the Wood Cutter target in order to generate drill targets.

Cancellation of options

The company also announces that several of its employees and directors have voluntarily surrendered options that entitled them to purchase up to an aggregate of 2.35 million common shares of the company. Canstar accepted the cancellation of options on May 4, 2023, and the options surrendered by holders were cancelled effective May 4, 2023. Surrender of the affected options was entirely voluntary and no agreements or commitments have been made to holders with respect to the receipt of new options. Of the cancelled options, 2.05 million options were surrendered by directors, senior officers and insiders of the company. The cancelled options all had an exercise price of 28 cents, which is significantly above the current share price. The cancellation of these options frees up contribution room under the company's 10-per-cent fixed stock option plan for new employees or for future grants.

Qualified person

Matthieu Lapointe, BSc, PGeo, vice-president of exploration of Canstar, and a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, is responsible for the scientific and technical data presented herein and has reviewed and approved this release.

Acknowledgments

Canstar wishes to acknowledge the financial support of the 2022 and 2023 exploration programs through the junior exploration assistance program from the Department of Natural Resources, Government of Newfoundland and Labrador.

About Canstar Resources Inc.

Canstar Resources has a very experienced technical team and board that are focused on new mineral discoveries in Newfoundland, Canada. Central Newfoundland has emerged as one of the most exciting gold exploration districts due to recent, high-grade orogenic gold discoveries along crustal-scale fault corridors. The company is focused on gold exploration on 939 square kilometres of mineral claim licences in south-central Newfoundland, including the Golden Baie project, which has multiple high-grade gold anomalies at surface along approximately 100 km of strike and near-surface drilling confirming the presence of high-grade orogenic gold. The company also holds the Buchans-Mary March project in central Newfoundland.

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