Mr. Juan Giron reports

CANSTAR EXECUTES LOI WITH KHOSLA-BACKED TERRAAI, SUPPORTING $11.5M CRITICAL METALS EXPLORATION JV

Canstar Resources Inc. has executed a letter of intent for a strategic exploration partnership with TerraAI, an artificial intelligence company backed by Khosla Ventures, to deploy AI (artificial intelligence) in support of Canstar's $11.5-million exploration joint venture at its Buchans and Mary March projects in central Newfoundland.

"AI is transforming the world, and it holds the same potential to transform mineral exploration," said Juan Carlos Giron, chief executive officer of Canstar. "At its core, exploration means gathering and making sense of the right information. With TerraAI's capabilities, we can fuse vast geological data sets, generate targets at scale and dynamically optimize drill testing. Our technical approach, supported by VMS Mining Corp.'s investment, is focused on building on the legacy of a district known for hosting some of the world's highest-grade VMS deposits. This partnership creates a formula which aims to increase the probability of discovery while reducing the cost per success -- positioning Canstar to drill smarter, faster and more effectively."

The initial focus will centre around the Mary March discovery hole, which returned: 4.2 grams per tonne gold, 122 grams per tonne silver, 10.1 grams per tonne zinc, 1.8 per cent lead and 0.64 per cent copper. The partnership will leverage TerraAI's proprietary platform to ingest and analyze data sets from the Buchans project, where a deep IP (induced polarization) survey is currently under way with Abitibi Geophysics. Combined with the extensive public and historical data from this prolific volcanogenic massive sulphide (VMS) district, the technology is designed to generate high-confidence drill targets and optimize drilling programs in real time.

The partnership with TerraAI aligns with Canstar's joint venture with VMS Mining and builds on the capabilities of the combined technical team, led by Dr. Harold Gibson, one of the world's leading experts in VMS systems.

Additional information on Canstar's Buchans and Mary March projects

Canstar's Buchans and Mary March projects are located in the Buchans/Roberts Arm belt of western-central Newfoundland, Canada. Recognized as one of the highest-grade VMS systems in history, Buchans was mined by ASARCO from the 1920s to the 1980s. Five deposits yielded 16.2 million tonnes with average mill head grades of 14.51 per cent zinc, 7.56 per cent lead, 1.33 per cent copper, 122 grams per tonne silver and 1.37 grams per tonne gold.

Canstar's Buchans project sits immediately adjacent to the historic Buchans mines. New 3-D geological modelling (2024) by Canstar indicates that the Buchans River formation, the geological host unit for all five historic Buchans mine deposits, underlies Canstar's entire Buchans property at depth. The formation plunges from the historically mined deposits toward Canstar's adjacent Buchans-area claims.

A SkyTEM time-domain electromagnetic survey in 2017 identified several multikilometre geophysical anomalies within Canstar's Buchans claims. The anomalism coincides with an area of low magnetism, indicating a potential alteration zone. A historic drill hole from the 1970s -- located within one of these anomalies -- intersected what was described as stockwork-style mineralization. Stockwork zones typically exhibit a geophysical signature characterized by low magnetism, variable (generally poor to moderate) electrical conductivity and good chargeability. These characteristics are similar to the geophysical attributes of the stockwork zones of the historic Buchans deposits, suggesting the potential discovery of stockwork and alteration zones associated with Buchans-style VMS deposits.

Canstar's Mary March project, located 25 kilometres from the historic Buchans mines, features a large mineralized system with alteration zones similar in scale to those at Buchans and high-grade massive sulphides. Historic drilling intersected a faulted-off massive sulphide lens 9.63 metres thick, assaying 0.64 per cent copper, 1.8 per cent lead, 10.1 per cent zinc, 4.2 grams per tonne gold and 122 grams per tonne silver. In 2019, trenching by Canstar identified Buchans-style debris flow deposits with massive sulphide clasts, which assayed up to 5.7 per cent copper, 1.6 per cent lead, 1.8 per cent zinc, 29.4 grams per tonne silver and 1.2 grams per tonne gold.

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's 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 (489.5 square kilometres) 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 kilometres) are located within the past-producing VMS zinc-, copper- and silver-rich Buchans mining camp and boast high-grade zinc and copper discoveries.

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