CSRNF - Canstar Announces Initial Drill Results Including 9.6 g/t Gold over 7.8 Metres from Golden Baie Project Newfoundland

(TheNewswire)

Toronto, Ontario - TheNewswire- August 19, 2021 -CANSTAR RESOURCES INC. (TSXV:ROX ) ( OTC:CSRNF) (“ Canstar” or the“Company ”) is pleasedto announce assay results from the first two holes of its 5,000 metrediamond drill program on the Golden Baie project in southNewfoundland.

Holes GB-21-01 and GB-21-02 were drilled from the samepad at the Kendell Target, located in the centre of the 62,175 hectareclaim package (Figure 1).  These holes were drilled to intersect thedowndip projection of significant quartz veining in a surface trenchthat was excavated earlier this year (Figure 2).  Both drill holesintersected a zone of gold mineralization associated with multiplesmall quartz veins and sulphide mineralization and assay highlightsare provided in Table 1.  Hole GB-21-01 was angled at 45 degreestowards the east and intersected 9.64 g/t gold over 7.75 metres,starting at 7.45 metres downhole (Figure 3).  Hole GB-21-02 was anear-vertical drill hole and intersected 2.09 g/t gold over 7.92metres including 9.59 g/t gold over 1.03 metres, starting at 15.15metres downhole.

Rob Bruggeman, President & CEO of Canstar, stated:“Having the first hole from the 2021 drill program return the bestgrade-intercept ever reported on the Golden Baie project is afantastic start to the drill program.  More importantly, the initialassay results from the Kendell Target indicate a broad zone of goldmineralization that starts at surface and is believed to dip at anestimated 30-40 degrees towards the northwest.  Future assay resultsare expected to further define the dip and orientation of themineralized system. The initial results are very promising becauseorogenic gold systems can extend over great distances, as recentlydemonstrated at other gold projects in central Newfoundland.  We planto step out and attempt to follow this mineralized zone as it getsdeeper in order to evaluate the potential for zones with higher gradesor broader widths.”

Table 1 - Highlight Assay Resultsfrom Reported Drill Holes

All intersections are downholelength as there is insufficient information to calculate truewidth.

Kendell Target Overview

Trench TGB-20-01 was excavated in the fall of 2020 andintercepted NE-SW trending quartz veins of varying thickness along astrike length of approximately 70 metres, approximately 16 metres ofwhich contained visible gold.  Seven channels were saw cut andsampled with the best results being 10.17 g/t gold over 3.0 metres and6.20 g/t gold over 5.0 metres (seen news release dated Nov. 30, 2020 ).

Trench TGB-20-01 was expanded perpendicular to strikein the northwest direction in May 2021.  The trench extensionencountered a thick section (~4m) of abundant, visible gold bearingquartz veins in strongly sheared metasediments (see news release dated Jun. 8, 2021 ). The grab samples from the newly identified quartz veinsassayed up to 34 g/t gold and the first 22 drill holes (~1,200 metres)of drilling in the 2021 program was targeting the extension of thesequartz veins.  Due to the extensive deformation of the rocks, theinitial drill holes are fairly short and tightly spaced, oriented atdips of 45 to 88 degrees to follow the mineralization and betterunderstand the structure and orientation. ( 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.)

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Figure 1 - Golden Baie Propertywith key gold occurrences noted and 2021 drill target area in redellipse.

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Figure 2 - Plan View of KendellTarget Showing Surface Trenches and Drill Trace for Holes GB-21-01 andGB-21-02

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Figure 3 - Section A-A’ ShowingReported Drill Holes and Trench Grab Assays (looking north)

2021 Drill Program Status

The 2021 summer drill program is focusing primarily onthe area from the Kendell Prospect to the Blow Out Prospect (Figure1).  Drilling commenced on June 8 and is expected to continue untilthe end of August, 2021. To date, 45 drill holes have been completedfor a total of approximately 4,300 metres.  Drilling of the Blow Outtarget is currently being completed, after which the drill rig willreturn to the Kendell target.  The Company expects to complete atleast 50 drill holes for over 5,000 metres of total drilling as partof this program, with assays expected to be received until the end ofOctober.  The timing of the next phase of the drill program is beingevaluated.

Acknowledgements

Canstar wishes to acknowledge the financial support ofthe 2021 exploration program through the Junior Exploration AssistanceProgram from the Department of Natural Resources, Government ofNewfoundland and Labrador.

Table 2 - Collar Data forReported Drill Holes

QA/QC:

All rock and soil samples were collected by companypersonnel and shipped 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. Mostrock samples were crushed to 10 mesh (2000 ?m) and a 250g splitpulverized to 150 mesh (89 ?m). The core samples are being entirelypulverized to 150 mesh (89 ?m). Splits of the pulverized samples areanalyzed for gold using fire assay (30g) with AA finish and an ICP-34,four acid digestion followed by ICP-OES analysis for 34 additionalelements. Metallic screening is being used for samples with visiblegold and all samples with initial fire assays over 25 g/t. In additionto Eastern Analytical’s quality control program of standards, blanksand duplicates, Canstar utilizes its own reference materials, blanksand duplicate samples to ensure data quality. In addition duplicatesof selected samples are being sent to a second laboratory as checkassays.

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 (62,175 hectares) with recentlydiscovered, multiple outcropping gold occurrences on a majorstructural trend in south Newfoundland. The Company also holds theBuchans-Mary March 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, President & CEO

Email: rob@canstarresources.com

Phone:        1-647-247-8715

Website: www.canstarresources.com

Forward-Looking Statements

Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in the policiesof the TSX Venture Exchange) accepts responsibility for the adequacyor accuracy of this release.

This News Release includes certain"forward-looking statements" which are not comprised ofhistorical facts. Forward looking statements include estimates andstatements that describe the Company’s future plans, objectives orgoals, including words to the effect that the Company or managementexpects a stated condition or result to occur. Forward lookingstatements may be identified by such terms as “believes”,“anticipates”, “expects”, “estimates”, “may”,“could”, “would”, “will”, or “plan”. Sinceforward-looking statements are based on assumptions and address futureevents and conditions, by their very nature they involve inherentrisks and uncertainties. Although these statements are based oninformation currently available to the Company, the Company providesno assurance that actual results will meet management’sexpectations. Risks, uncertainties and other factors involved withforward-looking information could cause actual events, results,performance, prospects and opportunities to differ materially fromthose expressed or implied by such forward-looking information.Forward looking information in this news release includes, but is notlimited to, the Company’s objectives, goals or future plans,statements, exploration results, potential mineralization, theestimation of mineral resources, exploration and mine developmentplans, timing of the commencement of operations and estimates ofmarket conditions. Factors that could cause actual results to differmaterially from such forward-looking information include, but are notlimited to failure to identify mineral resources, failure to convertestimated mineral resources to reserves, the inability to complete afeasibility study which recommends a production decision, thepreliminary nature of metallurgical test results, delays in obtainingor failures to obtainrequired governmental, environmental or other project approvals,political risks, inability to fulfill the duty to accommodate FirstNations and other indigenous peoples, uncertainties relating to theavailability and costs of financing needed in the future, changes inequity markets, inflation, changes in exchange rates, fluctuations incommodity prices, delays in the development of projects, capital andoperating costs varying significantly from estimates and the otherrisks involved in the mineral exploration and development industry, aninability to predict and counteract the effects of COVID-19 on thebusiness of the Company, including but not limited to the effects ofCOVID-19 on the price of commodities, capital market conditions,restriction on labour and international travel and supply chains, andthose risks set out in the Company’s public documents filed onSEDAR. Although the Company believes that the assumptions and factorsused in preparing the forward-looking information in this news releaseare reasonable, undue reliance should not be placed on suchinformation, which only applies as of the date of this news release,and no assurance can be given that such events will occur in thedisclosed time frames or at all. The Company disclaims any intentionor obligation to update or revise any forward-looking information,whether as a result of new information, future events or otherwise,other than as required by law.

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