Mr. Juan Carlos Giron Jr. reports

CANSTAR CONCLUDES 2025 FIELD SEASON, REPORTS YEAR-IN-REVIEW MILESTONES, AND ADVANCES WINTER TECHNICAL PROGRAM TOWARD 2026 DRILLING

Canstar Resources Inc.'s 2025 field season in Newfoundland has concluded and its winter 2025/2026 technical program is now under way, with the objective of commencing exploration drilling at the start of the 2026 exploration season, subject to permitting and final program design.

Winter work includes additional data integration and interpretation of newly collected and compiled geological, geochemical, geophysical and lidar (light detection and ranging) data sets, continued 3-D modelling, and refinement of drill targets for the 2026 program.

2025 year in review -- key milestones

• District-scale geophysics initiated and advanced at Buchans (deep IP/3-D modelling):
  • Canstar launched and advanced a deep-penetrating IP-focused geophysics program to refine and prioritize drill targets in the historic Buchans mining district, including completion of a deep IP survey at Buchans (in partnership with Canterra Minerals) and continuing 3-D inversion and modelling to assess large-scale targets.
• $11.5-million strategic exploration JV (joint venture) -- LOI (letter of intent) with VMS Mining Corp. (non-dilutive, asset-level funding):
  • In April, 2025, Canstar executed a letter of intent with VMS Mining Corp. (VMSC) establishing terms for an $11.5-million phased exploration joint venture on the Buchans and Mary March projects, including phase 1 funding of $1.5-million (non-dilutive) for a 10-per-cent JV interest, and optional phase 2 and phase 3 investments of $4-million and $6-million, respectively (earn in to 60 per cent).
• Initial JV payment received: $500,000:
  • In May, 2025, the company reported receipt of the initial $500,000 tranche from VMSC to commence phase 1 work, enabling the company to accelerate exploration without issuing share capital.
• World-class technical leadership: Dr. Harold Gibson leads JV exploration strategy:
  • Dr. Harold Gibson, PGeo, VMSC's VP, exploration, and a globally recognized VMS authority with 100-plus peer-reviewed papers published on VMS systems, ore deposits and vulcanology, is leading exploration and technical strategy for the JV. Dr. Gibson and Dr. Rodney Allen led a rigorous 2025 core mapping and relogging initiative at Mary March to define stratigraphic and structural controls and target faulted extensions of known mineralization.
• AI-enabled exploration partnership -- LOI with Khosla-backed TerraAI:
  • In June, 2025, Canstar executed an LOI with TerraAI, an AI company backed by Khosla Ventures, to deploy machine learning in support of drill targeting and program optimization at Buchans and Mary March, integrating geophysical, geochemical and geological data sets. The LOI was later extended as the parties advanced the mandate for a definitive agreement.
• Mary March advanced through trenching, relogging, mapping, lidar and new target generation:
  • During 2025, the company advanced Mary March through trenching and a geology-forward program combining compilation, reinterpretation and field execution. This included identification of multiple IP chargeability trends and a previously untested approximatley 1.2-kilometre chargeability corridor located approximately 550 m north of the historic discovery area.
• Initial trenching results: elevated copper in float and bedrock (pXRF spot analyses):
  • Initial trenching fieldwork reported mineralized float in the trench corridor reading up to 4 per cent copper (pXRF). Subsequent trenching updates reported semi-massive sulphide lenses and early bedrock pXRF spot analyses returning copper values ranging up to approximately 4.28 per cent Cu (and zinc up to approximately 31.57 per cent in selective spot readings), supporting the view that mineralization may represent the up-dip extension of mineralization intersected in a historical drill hole. The 2025 trenching program generated 130 samples submitted for assay and whole-rock geochemistry, with results to be released when available.
• Expanded land package at target area for proposed Mary March JV:
  • To secure and expand coverage around newly identified targets, the company (i) signed option agreements covering third party licences within the Mary March footprint, adding 625 hectares, and later (ii) acquired additional ground related to the JV, including an additional 675 ha of optioned licence areas. The company also accelerated completion of exchange-approved option agreements to acquire 647 ha within the existing Mary March project footprint through an aggregate cash payment of $71,000 and issuance of 350,000 shares, creating a more contiguous land position around the target area.
• Technical and governance strengthening:
  • In June, 2025, Canstar appointed Dr. Stephen J. Piercey, PGeo, FGC, a recognized expert in VMS mineralization and Newfoundland geology, to its technical and advisory board. The company also announced the addition of Nyla Beth Gawel to its board of directors, bringing senior Fortune 500 strategic leadership experience.
• Disciplined capital execution (non-dilutive plus hard-dollar funding):
  • In 2025, Canstar strengthened its balance sheet through a combination of:
    • $500,000 initial JV payment from VMSC (asset level, non dilutive);
    • $1,333,275 in gross lifetime proceeds from the exercise of 100 per cent of the 26,665,500 warrants issued in January, 2024, including $517,868 raised through the 2025 early warrant exercise incentive program;
    • A 2025 non-brokered private placement closed for total gross proceeds of $1.17-million including $1.15-million in hard-dollar units, which was oversubscribed and comprised almost entirely of institutional investors.

Positioned for 2026

With the 2025 field season complete and key datasets now in hand, Canstar is focused on final integration and modelling, continued AI-supported targeting, and drill program planning to enable a first-phase drill program in 2026.

Additional corporate updates

The company also announces that its board of directors has approved the grant of 2,033,000 incentive stock options to directors and officers of the company at an exercise price of 6.5 cents for a period of five years from the date of grant. The options are subject to certain vesting provisions as determined by the board of directors.

The options were granted in accordance with the policies of the TSX Venture Exchange.

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 (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 (122.5 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.

We seek Safe Harbor.