Canstar Resources Inc. announced new assay results for diamond drilling at the Kendell prospect on its Golden Baie property in south-central Newfoundland. Drilling took place in February and March 2022 and consisted of 2,907 metres ("m") in 39 holes. The 2022 winter drill program at the Kendell prospect was designed to test the continuity of gold mineralization downdip to the northwest and along strike to the northeast and southwest of the previously-drilled mineralized intercepts .

The best mineralized intercepts in the 2021 drilling program appear to follow a structure, interpreted from ground magnetics, that strikes northwest- southeast and dips gently in that direction. Gold mineralization was generally in the form of fine grains in centimetre-scale quartz veins with additional gold mineralization associated with arsenopyrite and/or stibnite in the adjacent wall rocks. Mineralized intercepts are focused in the hanging wall of a sheared black shale horizon.

The 2022 Kendell drill results successfully extended gold mineralization downdip to the northwest. Hole GB-22-92 intersected 6.1 g/t gold over 3.6 m at a downhole depth of 52.5 m, including 44.9 g/t over 0.4 m. This intercept is approximately 80 m downdip of hole GB-21-53, which intersected 12.2 g/t gold over 3.9 m, extending the total known downdip length of gold mineralization at the Kendell prospect to approximately 180 m. The best intercept in the 2022 winter drill program was in hole GB- 22-94, which intersected 20.6 g/t gold over 3.5 m, including 58.2 g/t over 1.1 m in the thickest quartz vein encountered in drilling to date. Due to its gentle dip, gold mineralization remains shallow.

Hole GB-22-95, which was oriented to the northwest to test downdip of hole GB-22-94, did not intersect significant mineralization. Hole GB-22-95 may not have been drilled at the optimal orientation and possibly deviated from the target horizon. The Company intends to obtain a higher precision bore hole survey of GB-22-95 during the planned Televiewer work.

Winter drilling at Kendell also extended gold mineralization along strike to the southwest. Hole GB- 22-64 intersected 9.5 g/t gold over 2.0 m and hole GB-22-72 intersected 6.7 g/t gold over 6.0 m approximately 10 m southwest of previously-drilled intercepts. Gold mineralization remains open along strike to the southwest.

Drilling to the northeast, approximately 10 m from previous intercepts, did not return significant gold mineralization. Downhole televiewer work is expected to provide additional information on the orientation of mineralized quartz veins, which will enhance the understanding of the mineralization and optimize the azimuth for future drilling. A thick quartz vein encountered in hole GB-22-94 suggests the potential for broader zones of high grade gold mineralization where structures opened up through progressive deformation during orogenesis.

Gold mineralization may be related to a lithological contact between the Isle Galet formation sedimentary rocks and black shales of the Riches Island formation, which also corresponds with a trend of anomalous till sample and grab sample results. Multiple regional faults striking northeast-southwest, parallel to the Day Cove Thrust, are believed to exist on the Golden Baie property and these regional faults may be important controlling structures for orogenic gold mineralization, as seen in other recent gold discoveries in central Newfoundland. The 75 diamond drill holes completed to date at the Kendell prospect in 2021 and 2022 indicate a very strong correlation between gold mineralization and arsenic and antimony.

The gold-arsenic-antimony association is a well-defined hallmark of world-class gold producers such as the Fosterville, Bendigo and Ballarat mines of the Victorian Goldfields. The Golden Baie property has numerous areas with significant arsenic and antimony anomalies based on soil geochemistry, which are priority areas for regional exploration. The size and extent of these anomalies, combined with multiple rock samples with anomalous gold spanning a strike length of 40 km, indicate the potential for multiple gold mineralized structures on the district-scale Golden Baie property.

Additional soil sampling is planned for multiple locations on the Golden Baie project in 2022 to infill areas that have not been sampled or have historic soil samples with only gold assay data.