Canstar Announces Additional Shallow, High-Grade Gold Drill Results from the Golden Baie Project, Newfoundland

(TheNewswire)

Canstar Resources Inc. (TSXV:ROX ) ( OTC:CSRNF) (" Canstar" or the "Company ") is pleased to announce new assay results from six diamond drill holes from the 2021 drill program on the Golden Baie project in south Newfoundland.  Drill holes reported are from the recently discovered Kendell prospect, located near the centre of the 62,175 hectare Golden Baie claim block. Assay results for an additional 22 drill holes, collared further to the NW and testing the down-dip extension at the Kendell prospect, are pending

Highlights from the new drill hole assays are provided in Table 1 with more detailed assay results by interval provided in Table 2.

Table 1 - Highlight Assay Results from Reported Drill Holes

All intersections are downhole length as there is insufficient information to calculate true width. Reported grades have not been capped.

Rob Bruggeman, President & CEO of Canstar, commented: " The early drill results from the Kendell prospect are very encouraging.  We are getting high grade gold intercepts in most of these drill holes.  These types of orogenic gold deposits tend to be structurally complex and the continuity of mineralization from hole to hole is excellent because it allows us to follow the mineralized system.  The shallow dip of the gold mineralization is also a positive as it will enable us to use shorter, less expensive drill holes in future drill programs to follow the gold mineralization to depth and along strike.  As has been seen at other orogenic gold deposits, gold mineralization can extend significantly at depth and widths and grades can improve if the right conditions existed during the mineralizing events. We see great potential for additional gold discovery at the Kendell prospect and surrounding area."

Discussion of Assay Results

Gold mineralization has now been delineated over a down-dip length of approximately 50 meters and a strike length of 20 meters (Figure 1) based on assays from 14 drill holes reported to date.  Mineralized intercepts reported to date ranged from 3 meters to 11 meters and are spatially associated to metasedimentary rocks within the interpreted hanging wall of a fault zone that is defined by a 4-10 meter thick strongly sheared unit of dark grey to black graphitic shale (Figure 2).

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Figure 1 - Plan view of Kendell Target showing collars of 2021 drill holes for which results have been reported (14 of 36 holes drilled)

Assay results for an additional 22 drill holes, collared further to the NW and testing the down-dip extension at the Kendell prospect, are pending. These include 6 holes drilled along strike to the NE which tested down-dip of trench channel samples that returned 6.20 g/t Au over 5.0 meters and 10.02 g/t Au over 3.0 meters (announced Nov. 30, 2020 ) .

Gold mineralization, including fine to coarse grained visible gold, is associated with deformed and recrystallized quartz veins enveloped by biotite-chlorite alteration and up to several percent disseminated sulphide mineralization within metasedimentary rocks. The associated sulphides consist of arsenopyrite and pyrrhotite with lesser amounts of stibnite, chalcopyrite and pyrite.

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Figure 2 – Kendell Section B-B' Showing Newly Reported Drill Holes (looking north).

Assay results from LR-09-02 are from a historical drilling program (Mountain Lake Resources 2009). Assay results are pending for holes GB-21-50, GB-21-51, GB-21-52, GB-21-20, GB-21-21 and GB-21-22 . Hole GB-21-10 was abandoned at a depth of 14 meter downhole and was restarted as hole GB-21-13.

Ongoing Exploration Activities

While Canstar continues to receive and assess drill hole assay results from the summer drill program, the Company has been operating an expanded grassroots field program consisting of prospecting, trenching/channel sampling, LiDAR survey and soil sampling. The Company expects to start receiving assay results from this program soon and will be providing a comprehensive update on these new activities once results are received.  The goal is to prioritize and expand the number of targets for the next drill program, expected to commence this winter.  To date, the Company has been focussing primarily on the area of 8 km strike length in the vicinity of the Kendell prospect, which represents a small portion of the projected ~95 km strike length of the gold mineralized corridor comprising the core of the Golden Baie property.

Table 2 - Selected drill hole sample assays

Table 3 - Collar Data for Reported Drill Holes

QA/QC:

All NQ drill core samples were collected by company personnel and shipped to Eastern Analytical of 403 Little Bay Road, Springdale, NL, a commercial laboratory that is ISO/IEC 17025 accredited and completely independent of Canstar Resources Inc. Sample preparation method was changed for this and subsequent batches. Previously, samples were crushed to 10 mesh (2000 μm) and the entirety of the sample then pulverized to 150 mesh (89 μm). Now, the entire sample is crushed to 150 mesh and then a 250g split is pulverized to 150 mesh. Splits of the pulverized samples are analyzed for gold using fire assay (30g) with AA finish and an ICP-34, four acid digestion followed by ICP-OES analysis for 34 additional elements. Metallic screening is being used for samples with visible gold and all samples with initial fire assays over 1 g/t Au. In addition to Eastern Analytical's quality control program of standards, blanks and duplicates, Canstar's QAQC program utilizes four commercially available reference standards, blanks and duplicate samples to ensure data quality. In addition, duplicates of selected samples are being sent to a second laboratory as check assays.

Acknowledgements

Canstar wishes to acknowledge the financial support of the 2021 exploration program through the Junior Exploration Assistance Program from the Department of Natural Resources, Government of Newfoundland and Labrador.

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 (62,175 hectares) with recently discovered, multiple outcropping gold occurrences on a major structural trend in south 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, President & CEO

Email: rob@canstarresources.com

Phone:        1-647-247-8715

Website: www.canstarresources.com

Forward-Looking Statements

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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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