Canstar Acquires the Hermitage Property, Expanding its Newfoundland Gold Exploration Project Claims to 774 km2

220 Bay Street TSX-V: ROX

Suite 550 OTCPK: CSRNF

Toronto, ON M5J 2W4 www.canstarresources.com

Canstar Acquires the Hermitage Property, Expanding its

Newfoundland Gold Exploration Project Claims to 774 km2

Toronto, Ontario – January 24, 2022 – CANSTAR RESOURCES INC. (TSXV: ROX & OTCPK:

CSRNF) (“Canstar” or the “Company”) is pleased to announce that it has signed a binding property

purchase agreement with Altius Resources Inc. (“Altius”), a wholly owned subsidiary of Altius Minerals

Corporation (TSX: ALS), to acquire a 100% interest in the Hermitage Property in southern

Newfoundland (the “Acquisition”). The Hermitage Property is comprised of three (3) map -staked

licenses containing 607 claims covering 15,175 hectares (151.75 km 2) (the “Hermitage Property

Claims”). The Hermitage Property Claims are contiguous with the Company’s Golden Baie project

and bring the total claims in the area to 77,350 hectares (774 km2) (Figures 1 & 2).

Figure 1 - Significant Gold Mineral Claim Packages in Central Newfoundland

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Canstar optioned the Golden Baie project claims due to their proximity to the Day Cove Thrust (“DCT”),

the tectonic boundary between the Gander and Dunnage (Exploits subzone) tectonostratigraphic

zones. The Baie d’Espoir volcanic and metasedimentary rocks to the west of the DCT host extensive

gold anomalies at surface that strike parallel to the DCT. At the southwest end of the Golden Baie

claims, the Hermitage Flexure marks the tectonic boundary between the Gander and Exploits zones

and it is believed that these claims may also be prospective for orogenic style gold mineralization.

There has been no known gold exploration on the Hermitage Property Claims, but there has been

some historical uranium exploration work in the area.

Matthieu Lapointe, VP Exploration of Canstar, commented: “Our Golden Baie project has tremendous

potential for orogenic gold discoveries, based on the extent of anomalous gold in rock samples

collected and our initial drill program. Our focus has been primarily on the Kendell area in the centre

of the claim block, but this year we will also be focusing on the southwestern end of the claim block.

The same structural setting exists there and continues along the Hermitage Flexure so we are

enhancing our land position in this area with the acquisition of these additional claims which extend

our potential strike by almost 50% to approximately 140 km in total, including the Golden Baie claims.

Most of these claims have seen little or no gold exploration and our technical team is excited to

evaluate the potential.”

Figure 2 - Significant Mineral Claim Packages in South , West and Central Newfoundland. Canstar’s newly

acquired Hermitage Property shown in the dashed polygon. CRFZ: Cape Ray Fault Zone, VLSZ: Valentine Lake

Shear Zone, RIL: Red Indian Line, DCT: Day Cove Thrust, GRUB: Gander River Ultramafic Belt.

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Hermitage Property Acquisition Terms

The Company has entered into a binding property purchase agreement with Altius (the “ Altius

Agreement”) that sets out the principal terms and conditions upon which Altius will transfer to the

Company its 100% interest in the Hermitage Property, subject to the retention by Altius of a 2.0% net

smelter return royalty from all commercial production on the Hermitage Property (the “Royalty”).

Pursuant to the Altius Agreement, Altius will transfer to Canstar its beneficial interest in the Hermitage

Property Claims, subject to the Royalty, in consideration for the issuance of 500,000 common shares

of the Company (the “Common Shares”) to Altius. The Company agreed that should the Company

acquire certain mining or mineral rights within a 2 km area of interest around the Hermitage Property

(the “Area of Interest”), such Area of Interest will be included in and form part of the Hermitage Property

and be subject to the Royalty.

Closing of the Acquisition is expected to occur upon the acceptance by the TSX Venture Exchange

(the “Exchange”) of the Altius Agreement and the Acquisition. Closing of the Acquisition is anticipated

to occur on or around February 4, 2022, and is subject to the prior approval of the Exchange. The

Common Shares to be issued in connection with the Altius Ag reement will be subject to a statutory

hold period of four months and a day from the date of issuance.

Qualified Person

Bob Patey, B.Sc., P.Geo, Senior Geologist of Canstar, and a Qualified Person as defined by National

Instrument 43-101 - Standards of Disclosure for Mineral Projects, is responsible for the scientific and

technical data presented herein and has reviewed and approved this release.

About Canstar Resources Inc.

Canstar is focused on the discovery and development of economic mineral deposits in Newfoundland

and Labrador, Canada. Canstar has an option to acquire a 100% interest in the Golden Baie Project,

a large claim package ( 62,175 hectares) with recently discovered, multiple outcropping gold

occurrences on a major structural trend in south Newfoundland. The Company also holds the

Buchans-Mary March project and other mineral exploration properties in Newfoundland. Canstar

Resources is based in Toronto, Canada, and is listed on the TSX Venture Exchange under the symbol

ROX and trades on the OTCPK under the symbol CSRNF.

For further information, please contact:

Rob Bruggeman, President & CEO

Email: [email protected]

Phone: 1-647-247-8715

Website: www.canstarresources.com

Forward-Looking Statements

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" which are not comprised of historical

facts. Forward looking statements include estimates and statements that describe the Company’s

future plans, objectives or goals, including words to the effect that 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

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forward-looking statements are based on assumptions and address future events and conditions, by

their very nature they involve inherent risks and uncertainties. Although these statements are based

on information currently available to the Company, the Company provides no assurance that actual

results will meet m anagement’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 expressed or implied by such forward-looking information.

Forward looking information in this news release includes, but is not limited to, the Company’s

objectives, goals or future plans, statements, exploration results, potential mineralization, the

estimation of mineral resources, exploration and mine development plans, timing of the

commencement of operations and estimates of market conditions, the anticipated closing date of the

Acquisition, whether the Acquisition is conducted on the terms and conditions as disclosed in the

Altius Agreement or proceeds at all, the closing of the Acquisition , or the receipt of all necessary

regulatory approvals. Factors that could cause actual results to differ materially from such forward -

looking information include, but are not limited to failure to identify mineral resources, failure to convert

estimated mineral resources to reserves, the inability to complete a feasibility study which

recommends a production decision, the preliminary nature of metallurgical test results, 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 costs varying significantly from estimates and the other

risks involved in the mineral exploration and development industry, an inability to predict and

counteract the effects of COVID-19 on the business of the Company, including but not limited to the

effects of COVID-19 on the price of commodities, capital market conditions, restriction on labour and

international travel and supply chains, 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, and no assurance can be

given that such events will occur in the disclosed time frames or at all. The Company disclaims an y

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.