Canstar Trenching Reveals up to 5% Copper, +30% Zinc in Early Bedrock Spot Analysis, Reveals Semi-Massive Sulphide in Footwall Mineralization

The October 16, 2025 news release provides an update on Canstar's 2025 trenching program at the Mary March Project in Newfoundland. Key highlights include: * High-Grade Mineralization: Portable X-ray fluorescence (pXRF) spot analyses on bedrock from two trenches returned high-grade values up to +30% zinc, 3% lead, and 5% copper. This mineralization includes semi-massive sulphides. * Mineralization Extension: The trenching has exposed over 20 metres of footwall mineralization, extending a zone identified in a historical drill hole (MM-294-03) by 130 metres to the surface and 80 metres to the northeast. * Target Validation: The mineralized zones are located near newly mapped induced polarization (IP) chargeability anomalies, increasing confidence in using these geophysical surveys to define drill targets. * Next Steps: 130 samples have been collected for laboratory assaying, with results pending. The company is finalizing its 3-D geological model with partner Terra AI to define drill targets for a planned 2026 drill program. * Land Expansion: Canstar has entered an option agreement to acquire a 100% interest in 29 adjacent mineral claims for aggregate payments of $71,000 in cash and 350,000 shares over three years. The claims are subject to a 2.0% NSR, of which 1.0% can be repurchased for $1 million.

This news is Materially Positive. After a period of significant corporate and financial restructuring, this is the first substantial exploration news release, and it successfully validates the company's renewed exploration strategy.

Positives: 1. Exploration Thesis Validation: The high-grade pXRF results, while preliminary, provide strong evidence that the IP chargeability anomalies identified earlier in the year are associated with significant base metal mineralization. This materially de-risks the upcoming drill program by increasing the confidence in the selected targets. 2. Confirmation of High-Grade Potential: Finding semi-massive sulphides with pXRF values of up to 30% zinc and 5% copper at surface confirms the Mary March project's potential to host high-grade VMS deposits, similar to the historic Buchans camp. 3. Extending the Mineralized Footprint: Successfully tracing mineralization from a historical drill hole to the surface and along strike demonstrates continuity and expands the potential size of the system.

Critical Considerations / Risks: * pXRF vs. Lab Assays: The headline numbers are from a pXRF device, which is a useful field-screening tool but is not a substitute for certified laboratory assays. pXRF readings can be inaccurate, especially for spot analyses on heterogeneous rock. The market will be waiting for the official assay results to confirm these grades; a significant downward revision would be viewed negatively. * Early Stage: These are trenching results. While encouraging, the true economic potential can only be determined by drilling to test for continuity, thickness, and grade at depth.

Chronologically, the company was in a precarious financial position as of its March 31, 2025 financials. The signing of the LOI with VMS Mining Corp. in April 2025 was a pivotal, company-saving event, providing non-dilutive funding and technical validation. Subsequent successful financings (warrant exercises and the new $2M private placement) have solidified the balance sheet. This news is the first tangible result of the VMS-backed exploration program and demonstrates that the team is executing its plan and generating positive results, building on the positive momentum established over the past six months.

The small land acquisition is a routine, logical move to consolidate control over the prospective geophysical trend.

Canstar Resources Inc. is a Canadian mineral exploration company focused on Volcanogenic Massive Sulphide (VMS) and gold deposits in Newfoundland. Its flagship assets are the Buchans and Mary March VMS projects, located in the historic and high-grade Buchans Mining District. These projects are now being advanced under an exploration joint venture with VMS Mining Corp., which can earn up to a 60% interest by funding $11.5 million in exploration. Canstar remains the operator during the initial phases. The company also retains 100% ownership of the Golden Baie gold project.