Canstar Expands Land Package, Advances Collaboration on AI-Enhanced Exploration at Mary March

13:25 Uhr  |  Newsfile

Toronto, December 8, 2025 - Canstar Resources Inc. (TSXV: ROX) (OTCID: CSRNF) ("Canstar" or the "Company") is pleased to provide an update on its collaboration with Terra AI "Terra"), a Silicon Valley-based company applying machine learning to accelerate mineral exploration. The two companies announced a Letter of Intent ("LOI") in June 2025 to apply Terra's proprietary AI technology to Canstar's projects in Newfoundland. The LOI has since been extended as the parties continue to develop a detailed mandate for a definitive agreement.

Canstar has also acquired an additional 675ha of land related to its previously announced $11.5M exploration Joint Venture ("JV") with VMS Mining Corporation. The optioned license areas are all underexplored. Two of the licenses contain the same rock units as the historical Connel Option prospect (0.6m @ 0.30% Cu, 11.90% Pb, 25.4% Zn, 148 ppm Ag and 3.2 ppm Au, from drilling in the 1950's)¹, and one of them is only 500m on strike from it. The other two licenses are on the northwest margin of the Mary March target area and could contain fault offsets of the Mary March rock units.

Collaboration with Terra AI and Extended LOI

Founded by Stanford PhDs and backed by Khosla Ventures and Rio Tinto, Terra AI has been deployed on projects across five commodities and four continents, helping identify and define millions of tonnes in new copper targets validated by drilling. Terra AI's platform integrates geophysical, geochemical, and geological data to generate thousands of probabilistic 3D models of the subsurface. The company states that its approach delivers more accurate targeting under cover and reductions in drilling time and cost. The company's data-universal AI model has won competitive pilots with some of the largest mining and energy companies worldwide.

Canstar and Terra AI announced an LOI in June 2025 to apply Terra's proprietary AI technology to Canstar's projects in Newfoundland. The LOI has since been extended as the parties continue to develop a detailed mandate for a definitive agreement. Canstar and Terra AI have worked closely throughout 2025, sharing data, models, and geological interpretations from the Mary March Project in the Buchans VMS district of central Newfoundland. In August, the companies held a technical session led by Dr. Harold Gibson, VP Exploration at VMS Mining Corporation, to review the latest results from the Mary March project, where Canstar recently identified multiple untested geophysical anomalies and high-grade mineralization in trenched bedrock (up to 5% copper and +30% zinc, as determined by pXRF spot analysis). The project also hosts a historic drill intercept of 9.63 metres grading ~15% combined base metals and 4 g/t gold².

Once Canstar updates its 3D geological model for the Mary March project-integrating new litho-geochemistry and assay data from historical drill core, new surficial mapping data, and historical (re-processed) geophysical data-Terra AI plans to apply its machine-learning workflow to refine the target set for the Company's planned 2026 drill program. This work is expected to include data fusion, probabilistic modelling, and uncertainty mapping to prioritize the highest-confidence drill targets.

The Company and Terra AI plans to finalize the scope and commercial terms of their first joint work program at the Mary March project. This program is expected to define a fully AI-enhanced exploration model to support Canstar's Phase 1 drilling in 2026.

Juan Carlos Girón Jr., President & CEO of Canstar Resources, commented:
"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."

Completion of Accelerated Exchange-Approved Land Option Agreements at Mary March JV Target Area

On October 30, 2025, the TSX Venture Exchange (the "TSX-V") approved Canstar's option agreements dated September 25, 2025, with arms-length prospectors (the "Option Agreements") to acquire a total of 647ha of land within the existing Mary March project footprint.

The Company has elected to accelerate completion of the three-year Option Agreements and, in full satisfaction of the remaining terms, will pay aggregate cash consideration of $71,000 and issue 350,000 common shares ("Shares") of the Company to the prospectors to obtain direct ownership of the exploration rights.

These licenses are underexplored due to limited outcrop exposure; however, Canstar's newly acquired LiDAR data is ideal for identifying buried rocks. The acquisition of these new claims provides Canstar with a contiguous land package around the Mary March JV target area, facilitating regional exploration.

All Shares issued pursuant to the Option Agreements are subject to a statutory hold period of four months and one day from the date of issuance, in accordance with applicable Canadian securities laws.

Stock Options Grant

The Company also announces that it granted an aggregate of 500,000 stock options ("Options") to certain officers, employees and consultants. Each Option entitles the holder to acquire one Share of the Company at an exercise price of $0.05 per Share for a term of five years from the date of grant. The Options vest in thirds over a period of three years from issuance and expire five years from the date of grant.

Qualified Person Statement

Bob Patey B.Sc. (Hons), Vice President for Exploration for Canstar and a Qualified Person as defined in NI 43-101, has prepared and approved all scientific and technical information disclosed in this news release.

Acknowledgement

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 Inc. (TSXV: ROX) is an exploration company focused on critical minerals and gold. The Company's 100%-owned Golden Baie Project (489.5 km2) 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 km²) 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.

(1) Squires, G.C. 1994: First and third year assessment report on geological, geochemical, geophysical and diamond drilling exploration for licence 4128 on claim block 7530 and licence 4284 on claim block 7817 and for 1993 submission on fee simple grant volume 2 folio 29 in the Red Indian Lake area, Newfoundland. Brunswick Mining and Smelting and Noranda Exploration Company Limited, Newfoundland and Labrador Geological Survey, Assessment File 12A/15/0720, 111 pages

(2) Reported by Phelps Dodge in 1999 (historic unverified assays)

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release contains "forward-looking statements" and "forward-looking information" that are not historical facts. Forward-looking statements include, but are not limited to, statements regarding: the objectives, scope, and anticipated benefits of the $11.5 million JV with VMSC; expectations that geological mapping, relogging, LiDAR surveys, and geophysical modelling will identify and refine VMS drill targets; planned trenching, drilling, and other exploration activities; interpretations of geological similarities to the historic Buchans deposits; and the expected completion of a revised geological model and definitive joint venture agreements.

Forward-looking statements are based on management's current expectations and assumptions, including, among other things: the ability of the parties to negotiate and execute definitive agreements on terms acceptable to Canstar; timely completion and integration of geological, geochemical, LiDAR, and geophysical work; availability of financing, equipment, and qualified personnel; receipt of required permits and regulatory approvals; continued access to historical data; and commodity prices and market conditions remaining broadly consistent with current expectations.

Forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially, including: failure to complete the definitive JV agreement; failure to complete a definitive agreement with Terra AI, geological interpretations proving inaccurate; exploration activities not yielding expected results; delays in, or inability to commence, planned programs; permitting or logistical challenges; and general exploration, market, and commodity price risks. Additional risks are described in the Company's public filings on SEDAR+.

The Company does not guarantee that forward-looking statements will prove accurate, and actual results may differ materially. Forward-looking information is provided as of the date of this news release, and the Company undertakes no obligation to update or revise it except as required by law.

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