CSRNF - Canstar Closes Option Agreement on the Golden Baie Project Exploration Work Underway

(TheNewswire)

Toronto, Ontario - TheNewswire- November 18, 2020 - CANSTAR RESOURCESINC. (TSXV:ROX ) ( OTC:CSRNF) (" Canstar " or the " Company ") is pleased to announce that it has closed the Golden Baie Project option agreement (the" OptionAgreement ") entered into with Altius Resources Inc. (" Altius "), awholly owned subsidiary of Altius Minerals Corporation (TSX: ALS), andother arm's length parties, as originallyannounced by news release on August 26, 2020 . Details of the Option Agreement are provided below. TheCompany is also pleased to announce an update on field explorationactivities currently taking place at the Golden Baie Project.

Golden Baie Project ExplorationProgram

The Golden Baie Project lies within the Coast of Baysregion of south-central Newfoundland and covers 61,150 hectares under47 Mineral Exploration Licences. Access is provided by Route 360, apaved highway which bisects the project area.

With the support of technical staff from Altius, theCompany has been conducting field exploration work on the Golden BaieProject for the past two months. The mainobjectives of the Phase I program are to understand the structural andchemical parameters controlling gold mineralization at the KendellProspect, discover additional gold mineralization, develop explorationtools for future exploration programs and establish drill targets forPhase II follow up.

The Phase I exploration program, as recommended in therecently filed technical report on the Golden Baie Project, consists of:

• - Main access trail remediation to provide ATV andexcavator access

  - Compilation and interpretation of data fromhistorical exploration programs

  - Analyze existing data including geophysical andgeochemical data

• - Prospecting work concentrating initially on theimmediate Kendell Prospect and then expanding focus more regionally astime and weather permit

  - Reconnaissance and locally detailed mapping andstructural analysis

  - Infill soil sampling and resampling of selectedhistoric soil grids to confirm historic soil data

  - Trenching and channel sampling on the KendellProspect

  - Structural mapping and interpretation of the KendellProspect.

Prospecting and trenching programs can typically rununtil freeze-up and this can vary from mid- to late November. Five trenches were recently completed at theKendell Prospect with assay results expected before the end of theyear.

Rob Bruggeman, President & CEO, commented:"Optioning the Golden Baie Project in Newfoundland pivots Canstarinto gold exploration in Newfoundland at a time when the island isseeing a surge of new exploration interest due to the prospectivityfor orogenic gold deposits. The Golden Baie Project offers verycompelling exploration potential as it covers about 95 km of acrustal-scale fault zone. Gold mineralization, including some grabsamples with visible gold, have already been discovered at theProject, with a lot more ground to be covered. While weather willlimit our field season this year, we are encouraged by the work so farand eagerly anticipate assay results."

Golden Baie Project OptionTerms

The Option Agreement is between the Company and Altius,Corwin Northcott, and Colin Kendell (collectively the" Optionors ") and it grants to the Company the exclusive right andoption (the " Option ") to acquire, subject to retentionby the Optionors of certain rights related to a 2% net smelter return(" NSR ") royalty, a 100% interest in mineral claims in theBaie d'Espoir region of Newfoundland (the " Golden Baie Claims ").

Under the Option Agreement, Canstar can earn a 100%undivided interest in the Golden Baie Claims over a four year periodas follows:

• - Issuance of 4,000,000 common shares of the Company toAltius upon receipt of Exchange approval (issued) ;

  - Payment of an aggregate cash payment of $50,000 andissuance of an aggregate of 2,000,000 common shares to the Optionorsupon signing of the definitive agreements (the " Definitive Agreements ") (paid andissued) ;

  - Issuance of 2,000,000 common shares to Altius on thefirst anniversary of the signing of the Definitive Agreements;

  - Payment of an aggregate cash payment of $50,000 andissuance of an aggregate of 1,000,000 common shares to the Optionorson the first anniversary of the Definitive Agreements;

  - Issuance of 2,500,000 common shares to Altius on thesecond anniversary of the Definitive Agreements;

  - Payment of an aggregate cash payment of $50,000 andissuance of an aggregate of the lesser of $250,000 worth of commonshares or 1,000,000 common shares to the Optionors on the secondanniversary of the Definitive Agreements; and

  - Payment of an aggregate cash payment of $100,000 andissuance of an aggregate of the lesser of $250,000 worth of commonshares or 1,000,000 common shares to the Optionors on the thirdanniversary of the Definitive Agreements.

As further consideration for the Option, Canstar isrequired to commit to fund exploration expenditures of a minimum of$1,250,000 over a four-year period. The minimum expenditurecommitment for the first year will be $500,000.

In addition, the Optionors will be entitled to anaggregate milestone payment of $1,000,000 by the Company to theOptionors upon the Golden Baie Project claims achieving NationalInstrument 43-101 defined measured and indicated mineral resources ofat least one million contained gold ounces.

The Optionors will transfer title to the Little RiverClaims to Canstar subject to the Optionors retaining a 2.0% NetSmelter Royalty from all commercial production on the Golden BaieProject (the " Royalty "). Altius shall maintain theright to purchase from the Optionors 1% of the Royalty for the totalsum of $1,500,000. Altius will also have a first right of refusal onthe purchase of the remaining 1% of the Royalty.

So long as Altius owns more than 9.9% of the Company'sshares outstanding, on any equity financing during the term of theOption, Altius shall have the right, at its sole discretion, toparticipate in 19.9% of such financing on the same terms as otherinvestors and subject to it not becoming a control person.

Qualified Person

Bob Patey, B.Sc., P.Geo, a Qualified Person as definedby National Instrument 43-101 - Standards of Disclosure for MineralProjects, is responsible for the scientific and technical datapresented herein and has reviewed and approved this release.

About Canstar Resources Inc.

Canstar Resources is focused on the discovery anddevelopment of economic mineral deposits in Newfoundland and Labrador,Canada. Canstar has an option to acquire a 100% interest in the GoldenBaie Project, a large claim package (over 61,000 hectares) withrecently discovered, multiple outcropping gold occurrences on a majorstructural trend in south-central Newfoundland. The Company also holdsthe Buchans-Mary March project and other mineral explorationproperties in Newfoundland. Canstar Resources is based in Toronto,Canada, and is listed on the TSX Venture Exchange under the symbol ROXand trades on the 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

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". Since forward-lookingstatements are based on assumptions and address future events andconditions, by their very nature they involve inherent risks anduncertainties. Although these statements are based on informationcurrently available to the Company, the Company provides no assurancethat actual results will meet management's expectations. Risks,uncertainties and other factors involved with forward-lookinginformation could cause actual events, results, performance, prospectsand opportunities to differ materially from those expressed or impliedby such forward-looking information. Forward looking information inthis news release includes, but is not limited to, the Company'sobjectives, goals or future plans, statements, exploration results,potential mineralization, the estimation of mineral resources,exploration and mine development plans, timing of the commencement ofoperations and estimates of market conditions, as well as theanticipated size of the Offering, the Offering price, the anticipatedclosing date and the completion of the Offering, the anticipated useof the net proceeds from the Offering and the receipt of all necessaryapprovals. 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 obtain required governmental, environmental or otherproject approvals, political risks, inability to fulfill the duty toaccommodate First Nations and other indigenous peoples, uncertaintiesrelating to the availability and costs of financing needed in thefuture, changes in equity markets, inflation, changes in exchangerates, fluctuations in commodity prices, delays in the development ofprojects, capital and operating costs varying significantly fromestimates and the other risks involved in the mineral exploration anddevelopment industry, an inability to complete the Offering on theterms or on the timeline as announced or at all, an inability topredict and counteract the effects of COVID-19 on the business of theCompany, including but not limited to the effects of COVID-19 on theprice of commodities, capital market conditions, restriction on labourand international travel and supply chains, and those risks set out inthe Company's public documents filed on SEDAR. Although the Companybelieves that the assumptions and factors used in preparing theforward-looking information in this news release are reasonable, unduereliance should not be placed on such information, which only appliesas of the date of this news release, and no assurance can be giventhat such events will occur in the disclosed time frames or at all.The Company disclaims anyintention or obligation to update or revise any forward-lookinginformation, whether as a result of new information, future events orotherwise, other than as required by law.

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