Mr. Danniel Oosterman reports

CANSTAR RESOURCES COMPLETES FIRST PHASE OF DRILLING AND INTERCEPTS SEVERAL GOLD-BEARING ZONES ON KENORA GOLD PROJECT

Canstar Resources Inc. has released results for the first phase of diamond drilling at its 100-per-cent-owned Kenora gold project, located in the Wabigoon subprovince near Kenora, Ont., Canada. Canstar completed an eight-hole, 1,062-metre exploratory drilling program in early February of 2017. Highlights include:

• 0.5 gram per tonne gold over 22.0 metres in KG-17-08 located 146 metres northeast of the company's Ace showing, including one g/t gold over three metres.

The 22-metre zone intercepted in KG-17-08 occurs 146 metres northeast of the Ace showing and thus represents a new zone on the property and a significant continuation of trending mineralization.

This first phase drill program represents the first drilling in the area in over a century. The program focused on the project's Aviator trend which hosts the Ace showing, a wide, surface gold discovery which returned 29.3 metres of 3.1 g/t gold in channel sampling. Results from this drilling suggest the presence of one or multiple gold zones associated with the Ace system, however, the surface showing could not be drilled directly due to access issues. As such, the company made a significant step back 36 metres southwest of the showing in order to test the Ace at depth.

The program was successful in intercepting several zones of low-grade mineralization at depth, interpreted to be associated with the Ace showing, including:

• 11.0 metres of 0.3 g/t gold from 109 to 120 metres (KG-17-01);
• 3.2 metres of 0.3 g/t gold from 74 to 77.2 metres (KG-17-01).

The depth to top of these zones is 77 metres for the deeper zone and 63 metres for the shallower zone. The deeper of the two zones does not occur directly under the vertically dipping Ace showing but rather 20 metres to the east of the showing. This may suggest the mineralization is dipping eastward and oblique to the stratigraphy or may represent an entirely new zone. A second phase drill program, expected to commence later this month, will better delineate the gold zones and provide a better understanding of the mineralized system. The Ace showing remains a high-priority target and a smaller drill rig will be commissioned in order to overcome the access issues encountered in the first program.

PHASE 1 DRILLING RESULTS FOR THE KENORA GOLD PROJECT

Hole          From     To   Core length         Gold
ID             (m)    (m)           (m)        (g/t)

KG17-01       35.4   36.5           1.1          0.4
              74.0   77.2           3.2          0.3
             109.0  120.0          11.0          0.3
KG17-02       48.0   50.0           2.0          0.3
              80.0   81.0           1.0          0.5
KG17-03       75.0   77.1           2.1          1.2
              88.2   89.3           1.1          1.0
            158.80 160.10           1.3          0.6
KG17-04       52.4   53.0           0.6          0.3
              82.0   83.0           1.0          0.3
              84.0   85.0           1.0          0.4
KG17-05      110.0  111.0           1.0          0.4
             115.8  117.2           1.4          0.4
             128.3  128.8           0.5          1.7
             134.0  134.3           0.3          1.6
             159.0  160.0           1.0          0.4
KG17-06                                          NSV
KG17-07                                          NSV
KG17-08       43.0   65.0          22.0          0.5
              43.0   53.9          10.9          0.6
              58.0   65.0           7.0          0.7
              62.0   65.0           3.0          1.0

NSV -- no significant value.                                 

Canstar Resources adopts industry-recognized quality assurance/quality control methods. Drill intervals are core lengths and are not reported as true thickness. A geochemical standard control sample and one blank sample are inserted into the sample stream every 20th sample as are duplicate samples. Lab duplicates are analyzed using Thompson-Howarth plots. Samples are shipped to Act Labs in Thunder Bay for fire assay analysis. Overlimits are analyzed using gravimetric analysis.

Danniel Oosterman, PGeo, the president and chief executive officer of the company, is a qualified person under National Instrument 43-101 and has reviewed the technical disclosure in this press release.

We seek Safe Harbor.