Canstar Extends Blow Out Target to 1 km Potential Strike Length with Rock Grab Sample Assays up to 36.14 g/t Gold

(TheNewswire)

Highlights

• - New assay results confirm high grade gold mineralization at the Blow Out target on the Golden Baie Property in Newfoundland, with float grab samples grading up to 36.14 g/t gold;

  - Recent prospecting work expanded the Blow Out target area about 325 metres across strike to the northeast and to a potential strike length of approximately 1 km;

  - A different style of gold mineralization including significant silver was also discovered in a test pit in the Blow Out target area in two float samples, one of which contained 146 g/t silver, 2.32% lead, and 5.76 g/t gold.

Toronto, Ontario – TheNewswire - December 8, 2020 – Canstar Resources Inc. (TSXV:ROX ) & ( OTC:CSRNF) (" Canstar" or the "Company ") is pleased to announce additional assay results from the Phase I exploration program on its 62,175 hectare Golden Baie Project (the "Project") located in south-central Newfoundland.  These results focus on the Blow Out target, which is towards the south end of the approximately 30 km trend of high grade gold occurrences discovered to date on the Project (Figure 1).

Canstar's 2020 field exploration program focused in and around the Kendell prospect, where visible gold in quartz veins was discovered at surface for the first time on the property in 2019.  The Blow Out target, discovered in 2009 by a previous company, is approximately 2 km northeast of the Kendell prospect (Figure 2).  At the Blow Out target, assays up to 36.14 g/t Au are associated with folded and recrystallized quartz veins in shaley arsenopyrite bearing  metasediments, which is similar to that seen at the Kendell prospect.  New rock sampling of the Blow Out target extends the area of interest by about 325 metres across strike to the northeast with new float samples grading up to 36.14 g/t Au (Table 1 & Figure 3).  A 1,450 metre by 500 metre soil sampling grid over the Blow Out target was also completed recently in order to identify additional targets, with assays pending.

Two float samples from the southwest corner of the soil grid host a different style of mineralization than typically seen at known occurrences to date. At surface, a strongly silicified arsenopyrite and base metal sulphide bearing and angular float approximately 1 metre in maximum dimension assayed 4.85 g/t Au, 907 ppm Cu, 199 ppm Pb, 67 ppm Zn, 35 ppm Sb, and over 1000 ppm As. A test pit unearthed a similar float sample at 3 metres depth that assayed 5.76 g/t Au, 197 ppm Cu, 23,200 ppm Pb, 51 ppm Zn, 60 ppm Sb, and over 1000 ppm As. This polymetallic style of gold mineralization associated with base metal sulphides has not been seen elsewhere in the 2020 exploration season or historically and represents a potential new style of gold occurrence. The presence of two such angular float samples close to each other at different depths in the till suggests a float train may exist which can be traced to a bedrock source.

Rob Bruggeman, President & CEO of Canstar, commented: "Assays from recent prospecting on Golden Baie reinforce the exciting prospectivity of this large property.  The Blow Out target is one of over 20 areas with gold occurrences on the property and our recent work just increased the potential strike length of the Blow Out target to over 1 km, making this a compelling target for additional exploration and drilling in 2021."

Table 1 - Highlight Grab Sample Assays from the Blow Out target

Note that rock grab samples are selective by nature and values reported may not represent the true grade or style of mineralization across the property.

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Figure 1 - Golden Baie Project Location, Claims, and Known Mineralized Gold Occurrences

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Figure 2 - Mineralized Occurrences Along the Little River Trend, Golden Baie Project

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Figure 3 - Historic and New Gold Mineralization at the Blow Out Target

QA/QC

All rock samples are collected by company personnel and bagged in the field with a sample tag for identification. Four standards and two blanks were included in each 100 samples, and duplicates were taken of roughly every 30 th channel sample. Larger bags of 10-30 samples are sealed with cable ties and kept secure at a company facility until they are transported directly to the lab by Canstar staff.

All rock samples are analyzed at Eastern Analytical of 403 Little Bay Road, Springdale, NL, a commercial laboratory that is ISO/IEC 17025 accredited and completely independent of the Company. For all channel samples and later batches of grab samples Eastern Analytical crushed and pulverized the entirety of each sample to approximately 95% -150 mesh material. Samples are analyzed using package Au (Fire assay) @ 30g + ICP-34, gold by fire assay with a 30-gram nominal sample weight followed by 34 element analysis using a four acid digestion and ICP-OES analysis; Standards and blanks are included by the lab with every 20 samples for Quality Assurance/Quality Control purposes.

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 the scientific and technical data presented herein and has reviewed and approved this release.

About Canstar Resources Inc.

Canstar is focused on the discovery and development of economic mineral deposits in Newfoundland and Labrador, Canada. Canstar has an option to acquire a 100% interest in the Golden Baie Project, a large claim package (over 62,175 hectares) with recently discovered, multiple outcropping gold occurrences on a major structural trend in south-central Newfoundland. The Company also holds the Buchans-Mary March project and other mineral exploration properties in Newfoundland. Canstar Resources is based in Toronto, Canada, and is listed on the TSX Venture Exchange under the symbol ROX and trades on the OTCPK under the symbol CSRNF.

For further information, please contact:

Rob Bruggeman P.Eng., CFA

President & CEO

Email: rob@canstarresources.com

Phone: 1-416-884-3556

www.canstarresources.com

Forward-Looking Statements

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This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, statements, exploration results, potential mineralization, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and other indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, an inability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restriction on labour and international travel and supply chains, and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or 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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