ROX:CC - Canstar Drills 20.6 g/t Gold over 3.5 Metres at Kendell Prospect; Extends Mineralization Downdip by 80% to 180 Metres

(TheNewswire)

Includes 58.2 g/t Over 1.1Metres

Toronto, Ontario – TheNewswire - July 5, 2022 – CANSTAR RESOURCES INC.(TSXV:ROX ) & ( OTC:CSRNF) (“ Canstar” or the “Company ”) is pleased to announce new assay results fordiamond drilling at the Kendell prospect on its Golden Baie propertyin south-central Newfoundland.  Drilling took place in February andMarch 2022 and consisted of 2,907 metres (“m”) in 39 holes. Notable drill intercepts are provided in Table 1 and full resultsare in Table 2 at the end of this release.

Table 1 - Notable intercepts fromthe 2022 Kendell prospect winter drill program

Notes :

1. All intersections are downhole length as there isinsufficient information to calculate true width.

2. Reported grades have not been capped.

Matthieu Lapointe, Vice President of Exploration forCanstar, commented: “This was the Company’s first winter drillprogram on the Golden Baie project and we are very pleased with howthe program was executed and also with the assay results.  Goldmineralization was significantly extended downdip and we encounteredthe thickest auriferous quartz vein drilled yet in hole GB-22-94.  Webelieve gold mineralization remains open to the northwest andsouthwest.  Additional drilling is planned for this fall afterdownhole Acoustic/Optical Televiewer work has been done, furtheradvancing our understanding of vein orientation.”

Gold Mineralization at KendellExtended at Depth and Along Strike

The 2022 winter drill program at the Kendell prospectwas designed to test the continuity of gold mineralization downdip tothe northwest and along strike to the northeast and southwest of the previously-drilledmineralized intercepts (Figure 1).  Thebest mineralized intercepts in the 2021 drilling program appear tofollow a structure, interpreted from ground magnetics, that strikesnorthwest-southeast and dips gently in that direction.  Goldmineralization was generally in the form of fine grains incentimetre-scale quartz veins with additional gold mineralizationassociated with arsenopyrite and/or stibnite in the adjacent wallrocks.  Mineralized intercepts are focused in the hanging wall of asheared black shale horizon (Figure 2).

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Figure 1 - Plan map of the Kendellprospect showing 2021 and 2022 drill collars and mineralizedintercepts

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Figure 2 - Vertical section A-A'of the Kendell prospect based on 2021 and 2022 drilling (lookingnortheast)

The 2022 Kendell drill results successfully extendedgold mineralization downdip to the northwest.  Hole GB-22-92intersected 6.1 g/t gold over 3.6 m at a downhole depth of 52.5 m,including 44.9 g/t over 0.4 m. This intercept is approximately 80 mdowndip of hole GB-21-53, which intersected 12.2 g/t gold over 3.9 m,extending the total known downdip length of gold mineralization at theKendell prospect to approximately 180 m.  The best intercept in the2022 winter drill program was in hole GB-22-94, which intersected 20.6g/t gold over 3.5 m, including 58.2 g/t over 1.1 m in the thickestquartz vein encountered in drilling to date.  Due to its gentle dip,gold mineralization remains shallow. Hole GB-22-95, which was orientedto the northwest to test downdip of hole GB-22-94, did not intersectsignificant mineralization. Hole GB-22-95 may not have been drilled atthe optimal orientation and possibly deviated from the target horizon.The Company intends to obtain a higher precision bore hole survey ofGB-22-95 during the planned Televiewer work.

Winter drilling at Kendell also extended goldmineralization along strike to the southwest.  Hole GB-22-64intersected 9.5 g/t gold over 2.0 m and hole GB-22-72 intersected 6.7g/t gold over 6.0 m approximately 10 m southwestof previously-drilled intercepts .  Goldmineralization remains open along strike to the southwest. Drilling tothe northeast, approximately 10 m from previous intercepts, did notreturn significant gold mineralization.  Downhole televiewer work isexpected to provide additional information on the orientation ofmineralized quartz veins, which will enhance the understanding of themineralization and optimize the azimuth for future drilling.

A thick quartz vein encountered in hole GB-22-94(Figure 3) suggests the potential for broader zones of high grade goldmineralization where structures opened up through progressivedeformation during orogenesis.

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Figure 3 - Drill core fromGB-22-94 with large quartz vein starting at downhole depth of 47.8 m(visible gold within red circles)

Gold mineralization may be related to a lithologicalcontact between the Isle Galet formation sedimentary rocks and blackshales of the Riches Island formation (Figure 4), which alsocorresponds with a trend of anomalous till sample and grab sampleresults (see news release dated May 4,2022 ). Multiple regional faultsstriking northeast-southwest, parallel to the Day Cove Thrust, arebelieved to exist on the Golden Baie property and these regionalfaults may be important controlling structures for orogenic goldmineralization, as seen in other recent gold discoveries in centralNewfoundland.

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Figure 4 – Plan map of theKendell prospect area showing interpreted faults, lithologies andselect gold anomalies in grab samples and till samples

Gold Association with Arsenic andAntimony

The 75 diamond drill holes completed to date at theKendell prospect in 2021 and 2022 indicate a very strong correlationbetween gold mineralization and arsenic and antimony.  Thegold-arsenic-antimony association is a well-defined hallmark ofworld-class gold producers such as the Fosterville, Bendigo andBallarat mines of the Victorian Goldfields.  The Golden Baie propertyhas numerous areas with significant arsenic and antimony anomaliesbased on soil geochemistry (Figure 5), which are priority areas forregional exploration.  The size and extent of these anomalies,combined with multiple rock samples with anomalous gold spanning astrike length of 40 km, indicate the potential for multiple goldmineralized structures on the district-scale Golden Baieproperty.

Additional soil sampling is planned for multiplelocations on the Golden Baie project in 2022 to infill areas that havenot been sampled or have historic soil samples with only gold assaydata.

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Figure 5 – Significant gold-arsenic-antimonyanomalies on the Golden Baie project based on soil samples

QA/QC:

All 2021 and 2022 drilling was of NQ-sized drill core.Core samples were split with a diamond saw andhalf-core retained for further study after being detail logged andphotographed. 2022 drill core samples were collected by company personnel and shipped to SGS Labs, Lakefield, ON for preparation of assay pulps. Goldanalysis is completed in the SGS Labs, Burnaby, BC with a 30 g fireassay and AAS finish (code GE_FAA30V5). Samples returning >1 g/t Auare re-assayed with a gravimetric finish (code GO-FAG30V). Mineralizedzones with visible gold are also analyzed by a 500 g screen fire assaywith screening to 106 microns (code GO-FAS30M).

Soils are dried at a secure company facility and willbe processed at SGS Labs using the GE_FAM50V5 assay method for gold(1-2,000 ppb Au detection) and the GE-IMS21B20 method, an ICP-MSanalysis that captures 37 elements including trace level detection ofpathfinders such as, Sb and W.

Canstar's QAQC program utilizes four commerciallyavailable reference standards, blanks and duplicate samples to ensuredata quality. In addition, duplicates of selected samples are beingsent to a second laboratory as check assays.

Qualified Person

Matthieu Lapointe, B.Sc., P.Geo, Vice PresidentExploration of Canstar, and a Qualified Person as defined by NationalInstrument 43-101 - Standards of Disclosure for Mineral Projects, isresponsible for the scientific and technical data presented herein andhas reviewed and approved this release.

Table 2 - Kendell prospect 2022winter drilling assay results

Table 3 - Kendell prospect 2022winter drilling collar locations and drill hole details

About Canstar Resources Inc.

Canstar Resources has a very experienced technical teamand board who are focused on new mineral discoveries in Newfoundland,Canada.  Central Newfoundland has emerged as one of the most excitinggold exploration districts due to recent high-grade orogenic golddiscoveries along crustal scale fault corridors.  The Company’sflagship Golden Baie project, comprised of 774 km 2 of claims insouth-central Newfoundland, has multiple high-grade gold anomalies atsurface along 40 km of strike. 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, 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 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 predict and counteract theeffects of COVID-19 on the business of the Company, including but notlimited to the effects of COVID-19 on the price of commodities,capital market conditions, restriction on labour and internationaltravel and supply chains, and those risks set out in the Company’spublic documents filed on SEDAR. Although the Company believes thatthe assumptions and factors used in preparing the forward-lookinginformation in this news release are reasonable, undue reliance shouldnot be placed on such information, which only applies as of the dateof this news release, and no assurance can be given that such eventswill occur in the disclosed time frames or at all. The Companydisclaims any intention or obligation to update or revise anyforward-looking information, whether as a result of new information,future events or otherwise, other than as required by law.

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