Canstar Executes LOI with Khosla- Backed TerraAI, Supporting $11.5M Critical Metals Exploration JV Partnership unites AI technology, Silicon Valley venture backing, and Canstar’s high-grade VMS district holdings to accelerate exploration for critical metals in
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Canstar Executes LOI with Khosla- Backed TerraAI, Supporting
$11.5M Critical Metals Exploration JV
Partnership unites AI technology, Silicon Valley venture backing, and Canstar’s
high-grade VMS district holdings to accelerate exploration for critical metals in
Newfoundland
Toronto, Ontario – GLOBE NEWSWIRE – June 12, 2025 – Canstar Resources Inc. (TSXV: ROX)
(OTCPK: CSRNF) (“Canstar or the “Company”) has executed a letter of intent ( “LOI”) for a strategic
exploration partnership with TerraAI, an artificial intelligence company backed by Khosla Ventures,
to deploy AI in support of Canstar’s $11.5 million exploration JV at its Buchans and Mary March
projects in central Newfoundland.
“AI is transforming the world, and it holds the same potential to transform mineral exploration,” said
Juan Carlos Giron Jr., CEO of Canstar. “At its core, exploration means gathering and making sense of
the right information. With TerraAI’s capabilities, we can fuse vast geological datasets, generate
targets at scale, and dynamically optimize drill testing. Our technical approach, supported by VMS
Mining Corporation’s investment, is focused on building on the legacy of a district known for hosting
some of the world’s highest-grade VMS deposits.2 This partnership creates a formula which aims to
increase the probability of discovery while reducing the cost per success —positioning Canstar to
drill smarter, faster, and more effectively.”
The initial focus will center around the Mary March discovery hole, which returned : 4.2 g/t gold, 122
g/t silver, 10.1% zinc, 1.8% lead, and 0.64% copper. 1 The partn ership will leverage TerraAI’s
proprietary platform to ingest and analyze datasets from the Buchans project, where a D eep IP
survey is currently underway with Abitibi Geophysics . Combined with the extensive public and
historical data from this prolific volcanogenic massive sulphide (“VMS ”) district, the technology is
designed to generate high-confidence drill targets and optimize drilling programs in real-time.
The partnership with TerraAI aligns with Canstar’s joint venture with VMSC and builds on the
capabilities of the combined technical team, led by Dr. Harold Gibson, one of the world's leading
experts in VMS systems.
About TerraAI
TerraAI is led by Dr. John Mern, a Stanford -trained aerospace engineer and artificial intelligence
expert whose career spans some of the world’s most advanced technology organizations. Before
founding TerraAI, Dr. Mern served as a Senior Decision Scientist at KoBold Metals, where he led the
development of AI systems for mineral exploration , translating techniques from autonomous
vehicles and game theory into actionable discovery tools.
Earlier in his career, Dr. Mern was a Systems Architect at Boeing’s Phantom Works, the company’s
advanced R&D division, where he worked on autonomous systems, networked platforms, and
defense technologies. He holds a PhD in Aerospace Engineering from Stanford University, where
he conducted research in robotic autonomy and deep reinforcement learning.
Dr. Mern’s rare combination of AI experience, resource sector application, and Silicon Valley
innovation positions TerraAI at the frontier of AI-driven exploration.
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Supported by Khosla Ventures—a premier $15B+ Silicon Valley firm known for early investments
in transformative technologies —TerraAI represents a turning point in how mineral discovery
programs are conceived and executed.
About VMS Mining Corporation
Established to develop Tier 1 VMS deposits globally, VMS Mining Corporation is a technically driven
private corporation led by some of the most respected names in the mining industry, with a collective
track record of over $4.1 billion in acquisition value.
About Dr. Harold Gibson
Dr. Harold Gibson, VMSC’s VP-Exploration, is widely recognized as a leading global authority on VMS
deposits, bringing over 40 years of VMS expertise and having published more than 100 peer-reviewed
articles. He is the recipient of the William Harvey Gross Award, the Duncan R. Derry Medal from the
Mineral Deposits Division of the Geological Association of Canada, the Barlow Memorial Medal, the
Julian Boldy Memorial Award from the Canadian Institute of Mining , Metallurgy and Petroleum, and
the Research Excellence Award from Laurentia n University. Dr. Gibson was the Director of the
Mineral Exploration Research Centre (MERC) and the Scientific Lead and Founding Director of the
Metal Earth Research Project —Canada’s $104 million public -private mineral exploration research
initiative.
Additional Information on Canstar’s Buchans and Mary March Projects
Canstar’s Buchans and Mary March Projects are located in the Buchans-Roberts Arms Belt of west-
central Newfoundland, Canada. Recognized as one of the highest -grade VMS systems in history,
Buchans was mined by ASARCO from the 1920s to the 1980s. Five deposits yielded 16.2 million
tonnes with average mill head grades of 14.51% zinc, 7.56% lead, 1.33% copper, 122 g/t silver, and
1.37 g/t gold.2
Canstar’s Buchans Project sits immediately adjacent to the historic Buchans mines. New 3 D
geological modelling (2024) by Canstar indicates that the Buchans River Formation, the geological
host unit for all five historic Buchans Mine deposits, underlies Canstar’s entire Buchans property at
depth. The formation plunges from the historically mined deposits towards Ca nstar’s adjacent
Buchans-area claims.
A SkyTEM time-domain electromagnetic survey in 2017 identified several multi -kilometre
geophysical anomalies within Canstar’s Buchans claims. T he anomalism coincides with an area of
low magnetism, indicating a potential alteration zone. A historic drillhole from the 1970s —located
within one of these anomalies—intersected what was described as “stockwork style” mineralization.
Stockwork zones typically exhibit a geophysical signature characterized by low magnetism, variable
(generally poor to moderate) electrical conductivity, and good chargeability. These characteristics
are similar to the geophysical attributes of the stockwork zones of the historic Buchans deposits,
suggesting the potential discovery of stockwork and alteration zones associated with Buchans-style
VMS deposits.
Canstar’s Mary March project , located 25km from the historic Buchans mines, features a large
mineralized system with alteration zones similar in scale to those at Buchans and high- grade
massive sulphides. Historic drilling intersected a faulted- off massive sulphide lens 9.63 m thick,
assaying 0.64% Cu, 1.8% Pb, 10.1% Zn, 4.2 g/t Au, 122 g/t Ag .1 In 2019, Canstar trenching identified
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Buchans-style debris flow deposits with massive sulphide clasts, which assayed up to 5.7% Cu,
1.6% Pb, 1.8% Zn, 29.4 g/t Ag, and 1.2 g/t Au.
Footnotes
(1) Reported by Phelps Dodge in 1999 (historic unverified assays) : 9.63 metres grading 4.2 g/t gold,
122 g/t silver, 10.1% zinc, 1.8% lead, and 0.64% copper
(2) Historical production source: Zinc and Lead, Mineral Commodities of Newfoundland and
Labrador, Geological Survey of Newfoundland and Labrador, Compiled by R.J. Wardle, 2008
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 (120.5 km 2) are located within the past -producing VMS zinc -,
copper-, and silver-rich Buchans Mining Camp and boast high-grade zinc and copper discoveries.
For further information, please contact:
Juan Carlos Giron, Jr.
President & Chief Executive Officer
Email: [email protected]
Phone: (647) 557-3442
Website: www.canstarresources.com
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.
This news release includes certain “forward-looking statements” that are not comprised of historical
facts. Forward-looking statements include estimates and statements that describe the Company’s
plans, objectives or goals, including words to the effect th at the Company or management expects
a stated condition or result to occur. Forward -looking statements may be identified by such terms
as “believes,” “anticipates,” “expects,” “estimates,” “may,” “could,” “would,” “will,” or “plan.”
Since forward -looking s tatements are based on assumptions and address future events and
conditions, they involve inherent risks and uncertainties. Although these statements are based on
4
information currently available to the Company, the Company does not assure that actual results
will meet management’s expectations. Risks, uncertainties and other factors involved with forward-
looking information could cause actual events, results, performance, prospects and opportunities
to differ materially from those expresse d or implied by such forward -looking information. Forward-
looking information in this news release includes , but is not limited to : the execution and terms of
the proposed partnership with TerraAI, the anticipated benefits of AI deployment in mineral
exploration, the objectives and scope of the $11.5 million joint venture with VMS Mining Corporation,
the expectation that the use of AI can improve discovery probabilities and reduce costs, exploration
plans for the Buchans and Mary March projects, and any future drilling or data interpretation
outcomes. Forward-looking information also includes the Company’s business objectives,
exploration results, potential mineralization, the estimation of mineral resources, timing of
exploration and development plans, and assumptions about market conditions. Factors that could
cause actual results to differ materially from such forward -looking information include, but are not
limited to: the risk that the definitive agreement with TerraAI is not completed; the technology does
not perform as anticipated; AI integration does not result in discovery success or cost efficiencies;
difficulties accessing or validating historical data; limitation s in data modeling or interpretation;
delays or disruptions to the current Deep IP survey; and risks generally associated with the adoption
of novel technologies in exploration. Additional risks include failure to identify mineral resources,
failure to convert estimated mineral resources to reserves, , delays in obtaining or failures to obtain
required governmental, environmental or other project approvals, political risks, inability to fulfill the
duty to accommodate First Nations and other indigenous peoples, uncertainties relating to the
availability and costs of financing needed in the future, changes in equity markets, inflation, changes
in exchange rates, fluctuations in commodity prices, delays in the development of projects capital
and operating variances. and those risks set out in the Company’s public documents filed on
SEDAR+. Although the Company believes that the assumptions and factors used in preparing the
forward-looking information in this news release are reasonable, undue reliance should not be
placed on such information, which only applies as of the date of this news release . No assurance
can be given that such events will occur in the disclosed time frames or at all. The Company
disclaims any intention or obligation to update or revise any forward -looking information, whether
as a result of new information, future events or otherwise, other than as required by law.