Canstar receives drill permit for Mary March

Executive Summary

• Canstar Resources Inc. has secured a drill permit for its Phase 1 drill program at the Mary March VMS project in Newfoundland, with drilling planned to commence in the summer 2026 field season.
• The company is advancing exploration through a multi-faceted technical program, including lithogeochemical analysis confirming volcanic rocks consistent with the historic Buchans VMS district, and ongoing geophysical surveys (drone magnetic, DCIP, and borehole electromagnetic).
• Management highlighted strategic moves including the optioning of the Golden Baie project to reduce holding costs and the initiation of a till sampling program in the Skellefte district, Sweden, to identify new drill targets with minimal upfront capital.

Key Details

• Drill Permit & Schedule: Permit received for Phase 1 program at Mary March; contract to be awarded in coming days; drilling expected to start in summer 2026.
• Lithogeochemical Analysis: Led by Dr. Rodney Allen; results indicate volcanic rocks at Mary March and Nancy April are consistent with the volcanic succession hosting historic Buchans VMS deposits.
• Geophysical Surveys:
  • Drone Magnetic: Completed over Mary March and Nancy April targets; data being integrated with geological models.
  • DCIP (Induced Polarization/Resistivity): Currently underway; effective for detecting disseminated sulphide mineralization and hydrothermal alteration.
  • Borehole Electromagnetic (BHEM): Planned for selected historic drill holes to detect conductive sulphide mineralization near existing holes.
• Core Relogging: 34 of 42 historic drill holes (approx. 81%) relogged; completion expected in March; data being used to build 3-D geological interpretations.
• Strategic Updates:
  • Golden Baie: Project optioned to a third party to reduce holding costs and operational bandwidth while retaining equity leverage to gold and antimony.
  • Skellefte (Sweden): Phase 1 exploration consists of systematic till sampling to identify geochemical anomalies; conducted in collaboration with Lithological Opportunities Ltd.
• Stock Option Grant: 1.6 million stock options granted to officers, employees, and consultants.
  • Exercise Price: $0.07 per share.
  • Term: 5 years.
  • Vesting: Three equal annual installments over 3 years.

Notable Quotes

• "Canstar is positioned for a strong 2026, anchored by accelerating exploration at our flagship Mary March project and complemented by potential upside from exploration in the Skellefte district in Sweden..." – Juan Carlos Giron Jr., President and CEO.
• "Mary March hosts multiple compelling drill targets, and we expect the project to be the focus of staged drill campaigns. The detailed geological work our team is undertaking to build a foundational model of the system is critical to guiding our exploration work..." – Juan Carlos Giron Jr.
• "Our focus on Mary March is further strengthened by the recently announced decision to option our Golden Baie project to a third party. Management expects this transaction will position Canstar with continued leverage to gold and antimony discovery... while reducing our holding costs..." – Juan Carlos Giron Jr.