Mr. Juan Carlos Giron Jr. reports

CANSTAR EXPANDS LAND PACKAGE, ADVANCES COLLABORATION ON AI-ENHANCED EXPLORATION AT MARY MARCH

Canstar Resources Inc. has provided an update on its collaboration with Terra AI, a Silicon Valley-based company applying machine learning to accelerate mineral exploration. The two companies announced a letter of intent (LOI) in June, 2025, to apply Terra's proprietary AI (artificial intelligence) technology to Canstar's projects in Newfoundland. The LOI has since been extended as the parties continue to develop a detailed mandate for a definitive agreement.

Canstar has also acquired an additional 675 hectares (ha) of land related to its previously announced $11.5-million exploration joint venture (JV) with VMS Mining Corp. The optioned licence areas are all underexplored. Two of the licences contain the same rock units as the historical Connel option prospect (0.6 metre (m) at 0.30 per cent copper (Cu), 11.90 per cent lead (Pb), 25.4 per cent zinc (Zn), 148 parts per million (ppm) silver (Ag) and 3.2 ppm gold (Au), from drilling in the 1950s) and one of them is only 500 m on strike from it. The other two licences are on the northwestern margin of the Mary March target area and could contain fault offsets of the Mary March rock units.

Collaboration with Terra AI and extended LOI

Founded by Stanford PhDs and backed by Khosla Ventures and Rio Tinto, Terra AI has been deployed on projects across five commodities and four continents, helping identify and define millions of tonnes in new copper targets validated by drilling. Terra AI's platform integrates geophysical, geochemical and geological data to generate thousands of probabilistic 3-D models of the subsurface. The company states that its approach delivers more accurate targeting under cover and reductions in drilling time and cost. The company's data-universal AI model has won competitive pilots with some of the largest mining and energy companies worldwide.

Canstar and Terra AI announced an LOI in June, 2025, to apply Terra's proprietary AI technology to Canstar's projects in Newfoundland. The LOI has since been extended as the parties continue to develop a detailed mandate for a definitive agreement. Canstar and Terra AI have worked closely throughout 2025, sharing data, models and geological interpretations from the Mary March project in the Buchans VMS (volcanogenic massive sulphide) district of central Newfoundland. In August, the companies held a technical session led by Dr. Harold Gibson, vice-president of exploration at VMS Mining Corp., to review the latest results from the Mary March project, where Canstar recently identified multiple untested geophysical anomalies and high-grade mineralization in trenched bedrock (up to 5 per cent copper and 30-plus per cent zinc, as determined by pXRF spot analysis). The project also hosts a historical drill intercept of 9.63 metres grading approximately 15 per cent combined base metals and four grams per tonne (g/t) gold.

Once Canstar updates its 3-D geological model for the Mary March project -- integrating new litho-geochemistry and assay data from historical drill core, new surficial mapping data, and historical (reprocessed) geophysical data; Terra AI plans to apply its machine-learning workflow to refine the target set for the company's planned 2026 drill program. This work is expected to include data fusion, probabilistic modelling and uncertainty mapping to prioritize the highest-confidence drill targets.

The company and Terra AI plans to finalize the scope and commercial terms of their first joint work program at the Mary March project. This program is expected to define a fully AI-enhanced exploration model to support Canstar's phase 1 drilling in 2026.

Juan Carlos Giron Jr., president and chief executive officer of Canstar Resources, commented: "Terra AI brings breakthrough capabilities to our exploration toolkit. Their platform lets us quantify and map geological uncertainty in ways that were impossible even a few years ago. This partnership, when finalized, should align perfectly with our geology-first, data-driven approach and our commitment to accelerating discovery in the Buchans camp."

Completion of accelerated exchange-approved land option agreements at Mary March JV (joint venture) target area

On Oct. 30, 2025, the TSX Venture Exchange approved Canstar's option agreements dated Sept. 25, 2025, with arm's-length prospectors to acquire a total of 647 ha of land within the existing Mary March project footprint.

The company has elected to accelerate completion of the three-year option agreements and, in full satisfaction of the remaining terms, will pay aggregate cash consideration of $71,000 and issue 350,000 common shares of the company to the prospectors to obtain direct ownership of the exploration rights.

These licences are underexplored due to limited outcrop exposure; however, Canstar's newly acquired lidar (light detection and ranging) data are ideal for identifying buried rocks. The acquisition of these new claims provides Canstar with a contiguous land package around the Mary March JV target area, facilitating regional exploration.

All shares issued pursuant to the option agreements are subject to a statutory hold period of four months and one day from the date of issuance, in accordance with applicable Canadian securities laws.

Stock options grant

The company also announces that it granted an aggregate of 500,000 stock options to certain officers, employees and consultants. Each option entitles the holder to acquire one share of the company at an exercise price of five cents per share for a term of five years from the date of grant. The options vest in thirds over a period of three years from issuance and expire five years from the date of grant.

Qualified person statement

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

Acknowledgement

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 (km)) 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 (142.1 square km) are located within the world-class, past-producing VMS zinc-, copper-, gold- and silver-rich Buchans mining camp, and boast high-grade zinc and copper discoveries.

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