Mr. Juan Carlos Giron Jr. reports

CANSTAR CONSOLIDATES MARY MARCH LAND POSITION WITH STRATEGIC EAGLERIDGE OPTION

Canstar Resources Inc. has entered into an option agreement dated Jan. 16, 2026, with Eagleridge International Ltd. (the optionor) to acquire a 100-per-cent undivided interest in mineral licence 006894M (17 claims) located adjacent to the company's Mary March project in central Newfoundland.

The Eagleridge claims directly adjoin Mary March at Beothuk Lake and extend Canstar's tenure across the projected eastern continuation of the Mary March-Nancy April volcanogenic massive sulphide (VMS) system.

Juan Carlos Giron Jr., president and chief executive officer, stated:

"This is a strategic consolidation of the Mary March system. The geology does not stop at the former property boundary, and neither should our exploration. The Eagleridge claims extend our control over the projected eastern continuation of the Mary March-Nancy April VMS system and allow us to execute our 2026 geophysical and drill programs without constraint.

"With our partnership with VMS Mining Corp., a fully funded 2026 exploration program, and multiple high-confidence targets emerging from our structural model, we believe Mary March represents a rare opportunity -- high-grade VMS potential in a proven district that remains materially underexplored with modern tools."

Strategic rationale

This acquisition completes a key gap in Canstar's land position over a structurally complex, high-grade VMS (volcanogenic massive sulphide) system within the Buchans-Roberts Arm belt -- host to the historic Buchans mine, which produced 16.2 million tonnes of ore at average grades of approximately 14.5 per cent Zn (zinc), 7.6 per cent Pb (lead), 1.3 per cent Cu (copper), 126 g/t (grams per tonne) Ag (silver) and 1.37 g/t Au (gold) between 1928 and 1984.

Mary March has already delivered one of the most significant base metal drill intercepts in the belt outside the historic mine area:

• 9.63 metres grading 4.2 g/t Au, 122 g/t Ag, 10.1 per cent Zn, 1.8 per cent Pb and 0.64 per cent Cu.

Multiple historic drill holes extended eastward beneath Beothuk Lake into the Eagleridge ground and encountered strongly altered felsic volcanic rocks consistent with VMS footwall environments. The regional structural model -- characterized by stacked thrust panels -- indicates that fault-offset repetitions of the Mary March-Nancy April system may occur to the east.

By securing the Eagleridge claims, Canstar:

• Consolidates control of the full projected strike and structural continuation of the Mary March system;
• Eliminates a historic property boundary that bisected the geological model;
• Enables seamless execution of ground geophysics and drilling across the entire target corridor;
• Prevents competitive encroachment in a proven but underexplored sector of the Buchans belt.

Over the past 12 months, Canstar has staked new licences and purchased claims from prospectors to systematically expand and consolidate its land package at Mary March to build a contiguous, district-scale position in what management believes is one of the most prospective yet underexplored portions of the Buchans camp.

Integration into 2026 exploration program

The Eagleridge claims are being immediately incorporated into Canstar's winter 2026 technical/geophysical program, which includes:

• High-resolution drone magnetics;
• Ground-based induced polarization (IP) surveys;
• Borehole electromagnetic (EM) surveys of select historic drill holes.

Continuous geophysical coverage across the former property boundary is expected to materially enhance structural interpretation and drill targeting.

These programs are designed to refine high-confidence, structurally informed drill targets in advance of Canstar's fully financed 2026 drill campaign, expected to commence when ground conditions permit in early 2026 under the company's strategic exploration JV with VMS Mining Corp. for up to $11.5-million.

Land access agreement

The company has also entered into a land access agreement with a private landholder in the Mary March area. Under the terms of the access agreement, dated Feb. 4, 2026, Canstar may access the private land for its winter geophysics program by issuing 79,000 common shares and making a one-time cash payment of $7,500. The transaction remains subject to TSX Venture Exchange approval, and all securities issued will be subject to a statutory hold period.

Option agreement terms

Under the terms of the option agreement, dated Jan. 16, 2026, Canstar may acquire a 100-per-cent undivided interest in the Eagleridge claims over a three-year period by issuing an aggregate of 575,000 common shares, making aggregate cash payments of $110,000 and incurring $450,000 in exploration expenditures. Upon receipt of TSX Venture Exchange approval, the company will issue 100,000 common shares and pay $10,000 in cash. On or before the first anniversary of the agreement, Canstar must incur $100,000 in exploration expenditures, issue 125,000 common shares and pay $25,000 in cash. On or before the second anniversary, the company must incur an additional $150,000 in expenditures, issue 150,000 common shares and pay $30,000 in cash. On or before the third anniversary, Canstar must incur a further $200,000 in expenditures, issue 200,000 common shares and pay $45,000 in cash. Upon exercise of the option, the property will be subject to a 1.0-per-cent net smelter return royalty. The transaction remains subject to TSX Venture Exchange approval, and all securities issued will be subject to a statutory hold period.

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 reviewed and approved all scientific and technical information disclosed 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 (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.

We seek Safe Harbor.