Canstar Resources extends LOI with Terra AI

Executive Summary

• Canstar Resources Inc. has expanded its land package at the Mary March project by acquiring 675 hectares, including 647 hectares via accelerated option agreements with prospectors and additional areas related to its JV with VMS Mining Corp.
• The company is advancing a collaboration with Terra AI to apply machine learning to its Newfoundland projects, aiming to refine target sets for a planned 2026 drill program through AI-enhanced 3D modeling.
• Recent exploration activities have identified multiple untested geophysical anomalies and high-grade mineralization in trenched bedrock at Mary March, including up to 5% copper and 30%+ zinc, alongside historical drill intercepts.

Key Details

• Land Acquisition (Mary March JV):
  • Acquired 647 hectares via accelerated completion of three-year option agreements dated Sept. 25, 2025.
  • TSX Venture Exchange approved the agreements on Oct. 30, 2025.
  • Consideration: Aggregate cash payment of $71,000 and issuance of 350,000 common shares.
  • Shares are subject to a statutory hold period of four months and one day.
  • Additional 128 hectares acquired related to the $11.5-million JV with VMS Mining Corp.
  • Total new land: 675 hectares.
  • Licenses are underexplored; lidar data acquired to identify buried rocks.
• Terra AI Collaboration:
  • Letter of Intent (LOI) from June 2025 extended; parties developing a definitive agreement.
  • Terra AI to apply proprietary AI technology to Canstar’s Newfoundland projects.
  • Workflow includes data fusion, probabilistic modeling, and uncertainty mapping to prioritize drill targets.
  • Goal: Define a fully AI-enhanced exploration model to support phase 1 drilling in 2026.
  • Terra AI backed by Khosla Ventures and Rio Tinto; platform validated by drilling across five commodities.
• Mary March Project Exploration Results:
  • Identified multiple untested geophysical anomalies.
  • High-grade mineralization in trenched bedrock: up to 5% copper and 30+ per cent zinc (pXRF spot analysis).
  • Historical drill intercept: 9.63 metres grading ~15% combined base metals and 4 g/t gold.
  • Historical Connel option prospect intercept (1950s): 0.6m at 0.30% Cu, 11.90% Pb, 25.4% Zn, 148 ppm Ag, 3.2 ppm Au.
  • New licenses contain same rock units as Connel prospect; one license is 500m on strike from it.
  • Other two licenses on northwestern margin of Mary March target area, potentially containing fault offsets.
• Stock Options:
  • Granted 500,000 stock options to officers, employees, and consultants.
  • Exercise price: $0.05 per share.
  • Term: 5 years.
  • Vesting: In thirds over 3 years from issuance.

Notable Quotes

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