Mr. Juan Giron Jr. reports

CANSTAR EXECUTES LOI FOR $11.5M STRATEGIC INVESTMENT TO ADVANCE CRITICAL METALS PROJECTS

Canstar Resources Inc. has executed a letter of intent (LOI) with VMS Mining Corp. (VMSC) establishing terms for an $11.5-million exploration joint venture (JV), aiming to fast-track new, high-grade discoveries at the company's polymetallic volcanogenic massive sulphide (VMS) assets in Newfoundland.

Canstar expects to receive $500,000 as an initial investment in the JV in April, 2025, and will work with VMSC to finalize the definitive agreement in May. The arm's-length LOI was executed April 15.

• Dr. Harold Gibson, PGeo, vice-president of exploration for VMSC, will lead the exploration and technical strategy.
• Phase 1 investment of $1.5-million (non-dilutive) allows VMSC to acquire a 10-per-cent interest in the JV projects for an implied post-money valuation of $15-million.
• Phase 2 and phase 3 offer options for VMSC to increase ownership of the JV to 40 per cent and 60 per cent with subsequent investments of $4-million and $6-million, respectively.
• Canstar will have pro-rata investment rights after the VMSC phase 3 option, retaining the rights to a substantial interest in the JV projects.
• Exploration at the Buchans project is under way with a previously announced Deep IP geophysics program.
• The Mary March exploration program is expected to start in spring 2025.
• Canstar will continue to advance exploration at its 100-per-cent-owned Golden Baie gold/antimony project, which is not subject to the JV.

This investment will accelerate exploration at the Buchans and Mary March projects, adjacent to five high-grade VMS deposits. They are well supported by infrastructure, feature multikilometre geophysical anomalies, and have high-grade discoveries-including the Mary March discovery hole grading 10.1 per cent zinc, 0.64 per cent copper, 1.8 per cent lead, 4.2 grams per tonne gold and 122 g/t silver over 9.63 metres.

Commenting on the announcement, Canstar's president and chief executive officer, Juan Carlos Giron Jr., said: "This agreement with VMSC validates the geological potential of our assets and will deliver world-class expertise, an industry-leading track record and a fully-funded, non-dilutive exploration program while allowing Canstar to maintain a substantial commercial interest in the projects. We are thrilled to begin work with VMSC, and we believe there is no better partner for these projects."

Qualified person statement

Bob Patey, BSc (honours), vice-president for exploration for Canstar and a qualified person as defined in National Instrument 43-101, has prepared and approved all scientific and technical information disclosed in this news release.

Acknowledgment

Canstar acknowledges the financial support of the Junior Exploration Assistance (JEA) program from the government of Newfoundland and Labrador Department of Industry, Energy and Technology, which has been a valuable contribution to the exploration programs on the company's Buchans-Mary March and Golden Baie projects.

About Canstar Resources Inc.

Canstar Resources is an exploration company focused on critical minerals and gold. The company's 100-per-cent-owned Golden Baie project (501-square-kilometre) hosts high-grade gold and antimony showings along a major mineralized structure that also hosts a large number of gold deposits. The Buchans and Mary March projects (120.5 square km) are located within the world-class, past-producing VMS zinc-, copper- and silver-rich Buchans mining camp and boast high-grade zinc and copper discoveries.

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