Canstar Resources options adjacent Mary March claims

Executive Summary

• Canstar Resources Inc. has entered into an option agreement to acquire a 100% undivided interest in the Eagleridge mineral claims (17 claims), directly adjoining its Mary March project in central Newfoundland.
• The acquisition consolidates Canstar's land position over the projected eastern continuation of the Mary March-Nancy April volcanogenic massive sulphide (VMS) system, eliminating a historic property boundary that bisected the geological model.
• The company has also secured a land access agreement with a private landholder to facilitate winter 2026 geophysical programs, involving share issuance and cash payment.

Key Details

• Option Agreement Terms (Eagleridge Claims):
  • Target: 100% undivided interest in mineral licence 006894M (17 claims) adjacent to Mary March.
  • Total Consideration for Exercise: 575,000 common shares, $110,000 in aggregate cash payments, and $450,000 in exploration expenditures over three years.
  • Initial Payment: Upon TSX Venture Exchange approval, 100,000 common shares and $10,000 cash.
  • Year 1 Milestone: $100,000 exploration expenditures, 125,000 common shares, $25,000 cash.
  • Year 2 Milestone: $150,000 exploration expenditures, 150,000 common shares, $30,000 cash.
  • Year 3 Milestone: $200,000 exploration expenditures, 200,000 common shares, $45,000 cash.
  • Royalty: 1.0% Net Smelter Return (NSR) royalty upon exercise.
  • Status: Subject to TSX Venture Exchange approval; securities subject to statutory hold period.
• Land Access Agreement:
  • Counterparty: Private landholder in the Mary March area.
  • Purpose: Access for winter 2026 geophysics program.
  • Consideration: 79,000 common shares and a one-time cash payment of $7,500.
  • Status: Subject to TSX Venture Exchange approval; securities subject to statutory hold period.
• 2026 Exploration Program:
  • Eagleridge claims are being immediately incorporated into the winter 2026 technical/geophysical program.
  • Activities: High-resolution drone magnetics, ground-based induced polarization (IP) surveys, and borehole electromagnetic (EM) surveys of select historic drill holes.
  • Drill Campaign: Fully financed 2026 drill campaign expected to commence in early 2026 under a strategic exploration JV with VMS Mining Corp. for up to $11.5 million.
• Historical Context & Geology:
  • The claims extend control over the projected eastern continuation of the Mary March-Nancy April VMS system.
  • Historic Buchans mine produced 16.2 million tonnes at ~14.5% Zn, 7.6% Pb, 1.3% Cu, 126 g/t Ag, and 1.37 g/t Au.
  • Mary March drill intercept: 9.63 metres grading 4.2 g/t Au, 122 g/t Ag, 10.1% Zn, 1.8% Pb, and 0.64% Cu.
  • Historic drill holes east of the boundary encountered altered felsic volcanic rocks consistent with VMS footwall environments.

Notable Quotes

• Juan Carlos Giron Jr., President and CEO: "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."
• Juan Carlos Giron Jr., President and CEO: "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."