Mr. Juan Giron reports

CANSTAR AND VMS MINING SECURE KEY PERMITS, ADVANCE STRUCTURAL MAPPING AND CORE LOGGING AT MARY MARCH VMS PROJECT, LAYING FOUNDATION FOR FUTURE DRILL PROGRAM

A rigorous historical core mapping program led by Dr. Harold Gibson and Dr. Rodney Allen has been initiated at Canstar Resources Inc.'s Mary March project, located in central Newfoundland, 20 kilometres east of the former-producing Buchans mine.

Under the $11.5-million joint venture with VMS Mining Corp. (VMSC), this core mapping will form the backbone of a systematic geology-forward strategy to define the stratigraphic and structural controls on the volcanogenic massive sulphide (VMS) mineralization and alteration intersected at Mary March and Nancy April to target faulted extensions and to define new, high-quality VMS targets.

The initial focus will be on the core from two mineralized intervals and will extend outward from these. Trenching and geological mapping at Mary March/Nancy April, aided by a new light detection and ranging (lidar) survey, will overlap and continue after the core mapping and relogging program.

Highlights:

• Geological reinterpretation to identify new, high-quality drill targets using a geology-forward approach;
• Detailed graphic core mapping campaign aims to unravel stratigraphic and structural controls on known mineralization that will be coupled with lidar-aided mapping to develop new targets;
• Deep induced polarization (IP) survey at Buchans completed; advanced 3-D modelling under way to assess large, multikilometre-scale airborne electromagnetic (EM) conductors and other areas of conductor anomalism at Canstar's Buchans project;
• New lidar survey flown on Mary March to support geological mapping and structural studies, with data interpretation expected soon;
• Exploration permits received for trenching, geophysics and geochemistry.

"Our strategy is clear: build a coherent geological model, identify the structural and stratigraphic setting for the known faulted high-grade VMS lenses, target faulted extensions of the known mineralization, define new targets, and then drill smart," said Juan Carlos Giron, president and chief executive officer of Canstar. "We're doing the work the right way -- deep science, deliberate execution and world-class expertise focused on discovery."

Geology-led approach driving target definition

Canstar and VMSC's exploration team is employing a methodical, geology-first approach to exploration in the historically productive yet structurally complex Buchans VMS district. Dr. Gibson and Dr. Allen -- two of the most experienced VMS experts worldwide -- recently spent 10 days on site, conducting detailed graphic relogging of historic core from the Mary March and Nancy April prospects, situated approximately 20 kilometres east of the historic Buchans mining camp, where Canstar also has a significant VMS project, which is also part of the joint venture. The Buchans deposits are among the world's highest-grade polymetallic (zinc-lead-copper-gold-silver) VMS deposits, with a zinc equivalent grade of 48 per cent (produced 16.2 million tonnes at 14.51 per cent zinc, 7.56 per cent lead, 1.33 per cent copper, 126 grams per tonne silver and 1.37 grams per tonne gold from 1928 to 1984).

Their work confirms that the lithofacies at Mary March and Nancy April are similar to those at the Buchans deposits, including the presence of sericite- and chlorite-altered lava domes, with stockwork-style stringer zones.

Crucially, their analysis supports the interpretation that the known high-grade and gold-rich Mary March massive sulphide -- although bounded by thrust faults -- is preserved within its original stratigraphic position atop an altered rhyolitic dome. The stringer mineralization at Nancy April occurs within a coherent, sericite- and chlorite-altered rhyolitic dome, but is faulted and offset from its massive sulphide lens. The rhyolitic footwalls at Mary March and Nancy April are geochemically distinct from each other and represent separate lava domes.

"The Mary March/Nancy April area is emerging as a classic VMS system -- rhyolite hosted, hydrothermally altered, fault modified, and underexplored," said Dr. Allen. "Reconstructing the volcanic stratigraphy is essential to tracing the ore horizon and understanding where the remaining sulphide bodies may be found."

Permits secured at Mary March; fieldwork accelerating

The company has received multiyear exploration permits enabling a range of activities, including:

• Ground geophysics (deep IP, borehole EM);
• Lidar and drone-based terrain analysis;
• Mechanical trenching, backpack drilling and geochemical sampling.

A new deep-penetrating IP survey -- initiated in early 2025 in partnership with Canterra Minerals -- has been completed. Modelling is under way to evaluate the 3-D chargeability response, with particular focus on historic airborne EM anomalies within Canstar's Buchans claims. These anomalies occur in proximity to interpreted Buchans River formation stratigraphy, which hosts all five historic high-grade Buchans deposits.

In parallel, a high-resolution lidar survey was flown to assist in structural interpretation, terrain correction for geophysics, and logistical planning for coming trenching and drilling.

Looking ahead: drill focused, science first

With foundational work accelerating, the joint venture remains focused on unlocking new high-grade discovery potential across the district. Near-term efforts are centred on:

• Finalizing the revised stratigraphic and structural model based on core logging, geochemistry and geophysics;
• Identifying and prioritizing new drill targets with enhanced geological context;
• Preparing for a trenching campaign at Mary March/Nancy April in the third quarter.

About the joint venture

Canstar and VMSC announced the foundation of an $11.5-million strategic exploration partnership in 2025 to explore and advance high-grade VMS prospects across the Buchans and Mary March district. The partnership leverages the technical and capital strengths of both companies, with Canstar serving as operator during the initial exploration phases. Following the execution of the letter of intent for the JV in April, 2025, and receipt of the initial payment for the phase 1 exploration program in May, 2025, Canstar and VMSC are continuing to finalize the definitive agreements for the partnership, with expected completion in Q3 2025 in parallel with continuing joint exploration activities.

Qualified person

Bob Patey, BSc (honours), vice-president, exploration, for Canstar and a qualified person as defined in National Instrument 43-101, has reviewed and approved the scientific and technical information in this news release.

Acknowledgment

Canstar acknowledges the financial support of the junior exploration assistance (JEA) program from the government of Newfoundland and Labrador Department of Industry, Energy and Technology, which has been a valuable contribution to the exploration programs on the company's Buchans/Mary March and Golden Baie projects.

About Canstar Resources Inc.

Canstar Resources is an exploration company focused on critical minerals and gold. The company's 100-per-cent-owned Golden Baie project (489.5 square kilometres) hosts high-grade gold and antimony showings along a major mineralized structure that also hosts a large number of gold deposits. The Buchans and Mary March projects (122.5 square kilometres) are located within the world-class, past-producing VMS zinc-, copper- and silver-rich Buchans mining camp and boast high-grade zinc and copper discoveries.

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