Mr. Rob Bruggeman reports

CANSTAR EXERCISES OPTION TO ACQUIRE GOLDEN BAIE PROJECT MINERAL CLAIMS IN NEWFOUNDLAND

Canstar Resources Inc. has fulfilled all of the requirements of an option agreement dated Sept. 25, 2020 (see Aug. 26, 2020, news release), and has exercised the option to acquire 100-per-cent ownership of 47 licences totalling 2,446 claims, covering 61,150 hectares (612 square kilometres) in south-central Newfoundland (the Golden Baie project or the project). The Golden Baie project remains subject to a 2.0-per-cent net smelter return royalty.

Highlights of the Golden Baie project mineral claims acquired

• Multiple gold anomalies hosted in soils, tills and rock samples that span a strike length of about 100 kilometres along a major tectonic boundary.
• Underexplored -- Only about 25,400 metres (m) of shallow drilling to date (historic and recent). Orogenic gold belts with similar geology, such as the Victoria Goldfields and Mother Lode district, span hundreds of kilometres and host clusters of multimillion-ounce gold deposits.
• The Kendell prospect, the first high-grade orogenic gold discovery on the Golden Baie project, has seen 7,953 metres of drilling to date with results up to 20.6 grams per tonne (g/t) gold over 3.5 m including, 58.2 g/t gold over 1.1 m (hole GB-22-94 -- see news release dated July 5, 2022), and 9.6 g/t gold over 7.8 m (hole GB-21-01 -- see news release dated Aug. 19, 2021). Gold mineralization has been defined near surface over a length of approximately 200 m and remains open along strike and down dip.
• In the Little River trend area, located close to a paved highway, till samples have returned up to 1,049 grains of gold (see news release dated Aug. 30, 2022) and a 0.5 m channel sample from a boulder graded 197 g/t gold (see news release dated Dec. 13, 2022), both of which were up-ice from the Kendell prospect. Such samples indicate the likely presence of additional mineralized zones that are obscured by glacial till cover and yet to be found.
• At the south end of the Golden Baie project, the Facheux Bay target is an exciting new gold discovery made by the company in 2022. This is a top exploration target consisting of an about eight-kilometre structural trend (based on recent high-resolution magnetics and lidar (light detection and ranging) with multiple one g/t outcrop grab samples, including samples grading 13 g/t and 18 g/t gold (see news release dated May 24, 2023).

Rob Bruggeman, president and chief executive officer, stated: "The Golden Baie project is a district-scale property with extensive gold anomalism over a large area in an emerging new orogenic gold belt. Canstar has spent over $8-million on exploration of the Golden Baie project in the past three years, which has generated multiple new exploration targets and proven the presence of orogenic gold mineralization near surface. We are very pleased to exercise the option to gain full control of these mineral licences, located in an excellent jurisdiction for gold exploration.

"Last year's discovery of gold mineralization at the Facheux target at the south end of the Golden Baie project demonstrates the potential for new discovery in this area. We are excited to continue exploration, given the potential for making new discoveries in this emerging orogenic gold district."

2023 field season update

After a very busy exploration program in 2022 that included two phases of successful drilling at the Kendell prospect, technical work in 2023 was scaled back due to market conditions and has been focused on extensive data compilation, mineral claims management and regrouping, as well as some soil sampling and mapping work at the Wolf Pond prospect. The company had intended to conduct mapping and sampling of the compelling Facheux Bay target in 2023, but a lack of helicopter availability until mid-September resulted in those exploration plans being postponed due to weather risk. The lack of till cover and overburden at Facheux Bay make it a particularly attractive exploration target.

Mapping and soil sampling of the Wolf Pond prospect this summer built on historical exploration work from the 1980s. Soil samples collected in 2023 returned assays up to 5.55 g/t (5,550 parts per billion) gold, confirming historical data and indicating the potential for multiple NE-SW (northeast-southwest) trending, steeply plunging structures with gold mineralization. Wolf Pond has bulk tonnage potential and is ideally situated just off the paved Route 360 Highway.

Mineral licence regrouping work was recently completed on the Golden Baie project and surrounding claims. The goal of this work was to prioritize and retain claims with the highest probability of gold mineralization and good access. As well, grouping of mineral licences allows exploration expenditures incurred to be spread over a larger number of claims so that these can be held in good standing for longer periods of time. The company dropped some claims, but continues to hold approximately 657 square kilometres of mineral claims in 46 licences.

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.

Acknowledgements

Canstar wishes to acknowledge the financial support of the 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 who 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 the district-scale Golden Baie project in south-central Newfoundland, which has multiple high-grade gold anomalies at surface along ~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.

Canstar Resources is based in Toronto, Canada, and is listed on the TSX Venture Exchange under the symbol ROX and trades on the OTCPK under the symbol CSRNF .

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