Mr. Juan Giron reports

CANSTAR CLOSES OVERSUBSCRIBED HARD DOLLAR FINANCING, STRENGTHENS BALANCE SHEET AHEAD OF 2026 EXPLORATION PROGRAM

Canstar Resources Inc. has closed the non-brokered private placement originally announced on Sept. 23, 2025.

The offering raised total gross proceeds of $1,169,970.54, with $1.15-million attributable to non-flow-through (hard-dollar) units. The hard-dollar financing was oversubscribed and was composed almost entirely of institutional investors, reflecting strong demand for quality exploration exposure in Newfoundland.

Including proceeds received under the company's early warrant exercise incentive program, which generated an additional $517,868 in gross proceeds since June, 2025, Canstar has raised a total of approximately $1.67-million in hard-dollar capital in recent months.

Given the depth of institutional participation in this round, the company elected to prioritize hard-dollar issuance over flow-through financing at this time. Supported by the $11.5-million exploration partnership with VMS Mining Corp. and several expected milestones, management believes Canstar is well positioned to undertake future financings, if warranted, at valuations that reflect the success of continuing strategic initiatives, continued execution and disciplined capital management.

Juan Carlos Giron Jr., president and chief executive officer of Canstar, commented: "We're closing this financing from a position of strength, consistent with Canstar's disciplined capital strategy focused on enduring value creation and efficiency. With strong partners and exciting exploration opportunities emerging at Mary March, we're advancing with focus and momentum. Our strategy is delivering, and we believe the company is entering a particularly compelling stage of its evolution."

Use of proceeds

The proceeds from the offering and from prior warrant exercises will be used for general corporate purposes, including exploration at the company's Buchans, Mary March and Golden Baie projects, as well as working capital and corporate development activities.

All securities issued under the offering are subject to a statutory hold period of four months and one day in accordance with applicable securities laws. The offering remains subject to final acceptance by the TSX Venture Exchange.

Offering details

The offering consisted of:

• 17,738,008 non-flow-through units issued at a price of 6.5 cents per NFT unit, for gross proceeds of $1,152,970.54; and
• 200,000 flow-through units issued at a price of 8.5 cents per FT unit, for gross proceeds of $17,000.

Each NFT unit is composed of one common share of the company and one transferable common share purchase warrant. Each FT unit consists of one common share and one-half of one warrant (with two such hal- warrants being a whole warrant). Each whole warrant entitles the holder to purchase one additional common share at a price of 10 cents per share, exercisable for a period of 36 months from the date of issuance for NFT units and 12 months for FT units.

The gross proceeds from the sale of the FT units will be used to incur Canadian exploration expenses on the company's Newfoundland properties. These expenditures are expected to qualify as flow-through mining expenditures under the Income Tax Act (Canada) and to be renounced to subscribers with an effective date no later than Dec. 31, 2025 (or such other date as permitted by law).

In connection with the offering, the company paid cash finders' fees totalling $56,940 and issued 861,000 non-transferable finders' warrants. Each finder's warrant entitles the holder to purchase one common share at a price of 10 cents per share for a period of 36 months following the closing date.

All securities issued under the offering are subject to a statutory hold period of four months and one day from the date of issuance, expiring March 1, 2026.

The net proceeds from the offering will be used for exploration activities, general working capital and corporate purposes.

About Canstar Resources Inc.

Canstar 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 volcanogenic massive sulphide zinc-, copper-, gold- and silver-rich Buchans mining camp, and boast high-grade zinc and copper discoveries.

We seek Safe Harbor.