Canstar Resources Inc. (TSXV: ROX, OTC:CSRNF) (OTCID: CSRNF) (“Canstar” or the “Company”) is pleased to provide an update on its collaboration with Terra AI “Terra”, a Silicon Valley-based company that applies machine learning to accelerate mineral exploration. The 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 was subsequently extended as the parties continued to develop detailed mandates for a final agreement.
Canstar also acquired an additional 675 hectares of land associated with a previously announced $11.5 million exploration joint venture (“JV”) with VMS Mining Corporation. All optional license areas are undeveloped. Two of the licenses contain the same rock units as the historic Connel Option deposit (0.6 m @ 0.30% Cu, 11.90% Pb, 25.4% Zn, 148 ppm Ag and 3.2 ppm Au from 1950s drilling).1one of them is located only 500 meters from it. The other two licenses are located on the northwest margin of the Mary March target area and may include fault offsets of the Mary March rock unit.
Cooperation between Terra AI and extended LOI
Founded by Stanford PhDs and backed by Khosla Ventures and Rio Tinto, Terra AI has been deployed in projects across five commodities and four continents to help identify and define millions of tons of new drill-verified copper targets. Terra AI's platform integrates geophysical, geochemical, and geological data to generate thousands of probabilistic 3D models of the subsurface. The company says its approach allows for more precise targeting in hidden locations, reducing drilling time and costs. The company's Data Universal AI model has passed competitive testing with some of the world's largest mining and energy companies.
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 was subsequently extended as the parties continued to develop detailed mandates for a final 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 region of central Newfoundland. In August, the companies held a technical session led by Dr. Harold Gibson, Vice President of Exploration for VMS Mining Corporation, to review the latest results from the Mary March project. Canstar recently identified multiple untested geophysical anomalies and high-grade mineralization (up to 5% copper and +30% zinc as measured by pXRF spot analysis) in channeled rock. The project will also host a 9.63 meter historic drill intercept screening up to 15% combined base metals and 4 g/t gold.2.
As Canstar updates the Mary March Project's 3D geological model and integrates new rock geochemistry and analytical data from historical drill cores, new surface mapping data, and historical (reprocessed) geophysical data, Terra AI will apply machine learning workflows to refine targeting for the company's planned 2026 drilling program. This work is expected to include data fusion, probabilistic modeling, and uncertainty mapping to prioritize the most reliable training targets.
The Company and Terra AI will finalize the scope and commercial terms of the first collaborative program on the Mary March Project. The program will define a fully AI-enhanced exploration model to support Canstar's Phase 1 drilling in 2026.
Juan Carlos Girón, Jr., President and CEO of Canstar Resources, commented:
“Terra AI brings breakthrough capabilities to our exploration toolkit. Its platform allows us to quantify and map geological uncertainties in ways that were not possible even a few years ago. Once completed, this partnership will align perfectly with our geology-first, data-driven approach, and our commitment to accelerate discoveries at Buchan's Camp.”
Completion of accelerated exchange approval land option agreement in Mary March joint venture area
On October 30, 2025, the TSX Venture Exchange (“TSX-V”) approved Canstar's September 25, 2025 option agreement (the “Option Agreement”) with Arms Length Prospectors to acquire a total of 647 hectares of land within the existing Mary March Project site.
The Company has elected to accelerate completion of the three-year option agreement and, upon full satisfaction of the remaining terms, will pay aggregate cash consideration of $71,000 and issue 350,000 shares of the Company's common stock (the “Shares”) to the prospector to obtain direct ownership of the exploration rights.
These licenses have not been well explored due to limited outcrop exposure. However, Canstar's new LiDAR data is perfect for identifying buried rocks. These new ownership acquisitions will provide Canstar with a contiguous land package surrounding the Mary March joint venture target area, facilitating regional exploration.
All shares issued pursuant to the Option Agreement will be subject to a statutory holding period of four months and one day from the date of issuance in accordance with applicable Canadian securities laws.
Stock option grant
The Company also announces that it has granted a total of 500,000 stock options (hereinafter referred to as “Options”) to certain officers, employees and consultants. Each option entitles the holder to acquire one share of the Company's stock at an exercise price of $0.05 per share for a period of five years from the date of grant. Options vest in one-third of the options for three years from issuance and expire five years from the date of grant.
Qualified Person Statement
Bob Patty, BS, Canstar's Vice President of Exploration and a Qualified Person as defined by NI 43-101 (Hons), has prepared and approved all scientific and technical information disclosed in this news release.
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Canstar acknowledges the financial support of the Junior Exploration Assistance (“JEA”) program from the Government of Newfoundland and Labrador's Department of Industry, Energy and Technology, which has been a valuable contribution to the exploration program at the company's Buchan's Mary March and Golden Bay projects.
About Canstar Resource Co., Ltd.
Canstar Resources Inc. (TSXV: ROX, OTC:CSRNF) is an exploration company focused on critical minerals and gold. The Company's wholly owned Golden Bay Project (489.5 km2) produces high-grade gold and antimony along a major mineralized structure that also contains numerous gold deposits. The Buccaneers and Mary March Project (142.1 km)2) is located within the VMS Buchans Mining Camp, which in the past has produced world-class zinc, copper, gold and silver, and boasts high-grade zinc and copper discoveries.
(1) Squires, GC 1994: First and third year evaluation report on geological, geochemical, geophysical and diamond drilling exploration for the 1993 submission of License 4128 of Claim Block 7530 and License 4284 of Claim Block 7817 and Fee Simple Grant Volume 2 Folio 29 in the Red Indian Lake Region of Newfoundland. Brunswick Mining and Smelting and Noranda Exploration Company Limited, Newfoundland and Labrador Geological Survey, Assessment File 12A/15/0720, page 111
(2) Reported by Phelps Dodge in 1999 (historical unverified analysis)
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 purpose, scope and anticipated benefits of our $11.5 million joint venture with VMSC; Expectations that VMS drilling targets will be identified and refined through geological mapping, re-logging, LiDAR surveys, and geophysical modeling. Planned trenching, excavation and other exploration activities. Interpretation of geological similarities with the historic Vacance deposit. Completion of a revised geological model and final joint venture agreement is then expected.
Forward-looking statements are based on management's current expectations and assumptions, including, among other things: the ability of the parties to negotiate and enter into a definitive agreement on terms acceptable to Canstar; Timely completion and integration of geological, geochemical, LiDAR, and geophysical studies. availability of funds, equipment and qualified personnel; receipt of necessary permits and regulatory approvals; Continuous access to historical data. And commodity prices and market conditions are largely in line with current expectations.
Forward-looking statements involve known and unknown risks and uncertainties that could cause actual results to differ materially. These include: Unable to complete final agreement with Terra AI, geological interpretations found to be inaccurate. Exploration activities do not yield the expected results. Planned programs are delayed or fail to start. permitting or logistical challenges; general exploration, market and commodity price risks; Additional risks are described in our public documentation regarding SEDAR+.
The Company cannot guarantee that forward-looking statements will prove to be 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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