CSRNF - Canstar Announces 211 g/t Gold Grab Sample and Significantly Expands Blow Out Prospect at Golden Baie

(TheNewswire)

Highlights

• - Assays from channel sampling at the Kendell Prospectdemonstrated continuity of the shear zone hosting gold-bearing quartzveins over a strike length of about 70 metres, including a new styleof coarse, free gold mineralization with grab samples assaying up to211 g/t gold;

  - Soil sampling at the Blow Out Prospect indicatedanomalous gold values over a distance of approximately 1,270 metreswith widths ranging from 75 to 300 metres;

  - Two float samples grading 19.2 g/t gold and 36.1 g/tgold were discovered 100 metres east of the Blow Out soil grid,potentially increasing the size of the mineralized area.

Toronto, Ontario - TheNewswire- February 22, 2021 -CANSTAR RESOURCES INC. (TSXV:ROX ) ( OTC:CSRNF) (“ Canstar” or the“Company ”) is pleasedto announce the final assay results from the surface explorationprogram conducted in the fall of 2020 at its Golden Baie Project insouthern Newfoundland. The 2020 exploration program was successful in furtherdefining the extensive gold mineralized system found over 30kilometres of strike length along the southeastern margin of theDunnage tectonic zone (Figure 1), just west of the Day CoveThrust. In addition to expanding two of theknown mineralized areas, results also confirmed a new style ofhigh-grade, free gold mineralization not previously recognized on theproperty.  Canstar is planning an extensive 2021 exploration programwhich will include a significant drilling program to follow up onthese results and expand into other targets areas. Details on theupcoming program will be provided in the next month.

Kendell Prospect – Trenching Confirms New Style ofHigh Grade Gold Mineralization

Canstar concentrated its 2020 exploration efforts onthe area around the Kendell Prospect due to significant results from2019/20 prospecting that yielded samples with visible gold thatassayed up to 4,485 g/t gold.  This was the first identification ofthis style of gold mineralization on the Golden Baie Project.Canstar’s 2020 prospecting identified multiple outcrop and floatsamples with visible gold in quartz stockwork and quartz brecciaassociated with intense silicification. ( Note: the reader is cautioned that rock grab samples are selectiveby nature and values reported may not represent the true grade orstyle of mineralization across the property.)

Two adjacent trenches excavated by Canstar, TGB-20-01and TGB-20-02, contained shear-related mineralized quartz veining inshales with associated disseminated gold mineralization in wall rock. Visible gold was found over 36 metres out of a total strike lengthof about 70 metres.  Partial results for trench TGB-20-01 weredisclosed on November 30, 2020 and results for channels across trenches TGB-20-01 andTGB-20-02 are shown in Table 1.

Blow Out Prospect – Expanded Footprint of Gold inSoils and Rocks

Canstar completed a grid soil sampling program at theBlow Out Prospect in the fall of 2020.  The soil sampling programresults indicate two NE-SW trending gold anomalies with a combinedlength of approximately 1,270 metres, with widths ranging from 75 to300 metres.  Two float samples were also discovered 100 metres east of the Blow Out soil grid assayed9.2 g/t gold and 36.1 g/t gold.

Table 1 - Channel Results fromTrenches TGB-20-01 and TGB-20-02

True widths are not estimated atthis time.

Units: 1 g/t = 1 ppm = 1,000 ppb

Rob Bruggeman, President & CEO of Canstar,commented: “The 2020 Golden Baie exploration program was focused ona small part of the large claim block, but yielded the best trenchresults on the property to date and significantly expanded the size ofthe Blow Out Prospect area. The team is currently compiling andanalyzing all historical data to prioritize targets for the upcoming2021 exploration program, which will cover a much larger portion ofthe Golden Baie Project.”

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Figure 1 - SignificantNewfoundland Gold Projects in the Dunnage TectonostratigraphicZone

Historical exploration work on the Golden Baie Projectidentified over 20 gold occurrences along approximately 30 kilometresof a major gold bearing structure (Figure 2). These targets have nothad any meaningful exploration work for at least a decade.  2021exploration efforts will prioritize the goldoccurrences for follow-up exploration work, after digital compilationand analysis work that is currently underway is completed.

A review of historic work on the Golden Baie propertyidentified a significant number of gold anomalies in both soil androck samples. Canstar concentrated its 2020 exploration efforts on thearea around the Kendell Prospect due to significant results from 2019and 2020 prospecting work in the area.  Results from the prospectingidentified multiple outcrop and float samples with visible gold inquartz stockwork and quartz breccia veins.  This was the firstidentification of coarse, free gold mineralization on the Golden BaieProject and was deemed a priority target since the 2019 grab samplesreturned assays up to 4,485 g/t gold.

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Figure 2 - Golden Baie ProjectClaims and Gold Occurrences

Blow Out Prospect Soil Sampling and ProspectingResults

The Blow Out Prospect is located approximately 2kilometres northeast of the Kendell Prospect (Figure 2) and isemerging as a high priority exploration target. Extensive prospectingand a systematic soil sampling program were completed at the Blow OutProspect during the 2020 field season. A 50-metre spaced soil gridconducted over an area measuring 1,450 m x 400 m generated at leasttwo NE-SW trending anomalies (Figure 3).

Prospecting results from the Blow Out Prospectinclude:

• - Resampling of a historic exploration trench,confirming historical grades with new grab samples assaying between10.48 and 32.06 g/t gold;

  - Two angular polymetallic boulders which assayed 5.8g/t gold (including 146 g/t silver and 2.3% lead) and 4.8 g/t gold(including 1.3 g/t silver, trace copper and lead) prospected in thesouthwest part of the grid;

  - Discovery of a different style of quartz vein,outcropping within a stream bed in the southwest part of the grid. The new styled gold vein assayed 2.16 g/t gold and bouldersdownstream from this sample assayed 30.29 and 10.59 g/t Au; and

  - 100m east of the soil grid a cluster of boulders weredocumented and sampled resulting in two samples assaying 19.23 and36.14 g/t Au.

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Figure 3 - Soil Anomalies andSelect Grab Sample Results at the Blow Out Prospect

Multiple Styles of Gold Mineralization at GoldenBaie

Historical work on the Golden Baie Project identifiedtwo distinct styles of gold mineralization: (1)  disseminatedsulphides, including arsenopyrite, pyrrhotite, pyrite and stibnite,associated with carbonate alteration and hosted within felsic tointermediate tuffs and pelite; and, (2) antimony and sulphide-bearingquartz ± carbonate-sericite-chlorite veins, fractures andfoliation-parallel bands.

Most of the gold bearing quartz veins encountered inCanstar’s 2020 program were sheared and recrystallized, roughlyparallel to the host rock fabric (when this could be determined). Anew, second style of quartz vein was documented (stream and trenchsample, as discussed above). This quartz veinstyle appears thicker, cuts the dominant fabric, may be poly-deformedand is blue-grey in color. Significantly, it appears to be coarselyrecrystallized with visible gold (Figure 4).  Two grab samples ofthis style of vein from TGB-20-01 and TGB-20-02, assayed 211 and 28g/t gold, respectively.  In the southern part of the Blow Out soilgrid a 40 cm vein cutting the local foliation assayed 2.16 g/t Au.

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Figure 4 - Visible Gold in Quartzin Sample R16268

The two polymetallic (base metal sulphide) bouldersuncovered in the southwest part of the Blow Out Prospect soil grid arevolcanic or volcaniclastic rocks host rocks with approximate values of5 g/t gold.  Both the base-metal character and hosts rocks have notbeen identified in outcrop suggesting the potential for anothermineralization style in this area. Canstar plans to conduct aground-based mag survey over the area in the coming weeks to helpunderstand the structural geology and generate targets for follow up.

QAQC:

All rock and soil samples were collected by companypersonnel and sent to Eastern Analytical of 403 Little Bay Road,Springdale, NL, a commercial laboratory that is ISO/IEC 17025accredited and completely independent of Canstar Resources Inc.Eastern Analytical pulverized 1000 grams of each sample to 95% < 89?m. Samples are analyzed using fire assay (30g) with AA finish and anICP-34, four acid digestion followed by ICP-OES analysis.  Inaddition to Eastern Analytical’s quality control program ofstandards, blanks and duplicates, Canstar utilizes its own referencematerials to ensure data quality.

Qualified Person

Bob Patey, B.Sc., P.Geo, Senior Geologist of Canstar,and a Qualified Person as defined by National Instrument 43-101 -Standards of Disclosure for Mineral Projects, is responsible for thescientific and technical data presented herein and has reviewed andapproved this release.

About Canstar Resources Inc.

Canstar is focused on the discovery and development ofeconomic mineral deposits in Newfoundland and Labrador, Canada.Canstar has an option to acquire a 100% interest in the Golden BaieProject, a large claim package (over 62,175 hectares) with multipleoutcropping gold occurrences on a major structural trend insouth-central Newfoundland. The Company also holds the Buchans-MaryMarch project and other mineral exploration properties inNewfoundland. Canstar Resources is based in Toronto, Canada, and islisted on the TSX Venture Exchange under the symbol ROX and trades onthe OTCPK under the symbol CSRNF.

For further information, pleasecontact:

Rob Bruggeman P.Eng., CFA

President & CEO

Email: rob@canstarresources.com

Phone: 1-416-884-3556

www.canstarresources.com

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