Canstar Resources Reports 1.8 m Grading 6.1% Zinc, 106 g/t Silver and 2.0 g/t Gold at Mary March; Mobilizes for Fall Drilling

Canstar reports high-grade VMS intercepts and begins a fully funded fall drill program.

What the company is saying

Canstar Resources highlights new high-grade assay results from its 2,756-metre summer 2026 drill program at the Mary March VMS Project, emphasizing that every hole intersected mineralization. The company frames these results as the most significant in the project's history, citing a 15.6 m intercept grading 2.4% CuEq and two new high-grade intervals: 1.8 m at 6.0% CuEq and 1.8 m at 4.1% CuEq. Management, led by President & CEO Juan Carlos Giron Jr., stresses the value of its partnership with VMS Mining Corporation, which funds exploration under a non-dilutive earn-in agreement providing up to $12 million, with $4 million received to date. The fall drill program, comprising 2,250 metres and executed by MCL Drilling, is already mobilizing to site and will target off-hole conductors identified by recent borehole EM surveys. The tone is confident, focusing on technical progress, the scale of new intercepts, and the strategic advantage of non-dilutive funding. The company also discloses that 14 assay samples remain pending, with additional results and a potential winter 2027 program to follow.

What the data suggests

The summer 2026 program drilled 2,756 metres in four holes, with each hole intersecting sulphide mineralization within the Fleetway Rhyolite. Drill hole MM-26-44 returned 1.8 m grading 6.13% zinc, 106.3 g/t silver, 2.00 g/t gold, 2.53% lead, and 0.75% copper (6.0% CuEq), while MM-26-43 returned 1.8 m at 4.1% CuEq, and MM-26-42 previously delivered the project's widest intercept at 15.6 m grading 2.4% CuEq. Additional intervals include 1.2 m at 1.3% CuEq in MM-26-44 and 1.0 m at 0.5% CuEq in MM-26-41. The Fleetway Rhyolite is interpreted to extend 1.2 km along strike, with 700 m supported by historical drilling and massive sulphide intercepts now confirmed along 230 m of strike. The fall 2026 drill program will test 2,250 m, targeting off-hole conductors identified by BHEM surveys, and is fully funded under the $12 million earn-in agreement with $4 million already received. Assays for 14 samples from MM-26-43 and MM-26-44 are pending, which could extend known mineralization. The company does not provide resource estimates or economic studies, as is typical at this exploration stage, but technical disclosures are detailed and complete.

Analysis

The announcement is a detailed exploration-stage update, providing specific assay results from the summer 2026 drill program and outlining the mobilization of a fall drill campaign. The majority of key claims are realised and supported by concrete technical data (drill intercepts, grades, metres drilled, and funding received). Forward-looking statements are limited to the planned fall drill program and pending assay results, which are standard and expected in exploration updates. There is no exaggerated language or overstatement of future value; the tone is proportionate to the results. The capital intensity flag is not triggered, as the disclosed funding is already received and allocated to ongoing exploration, with no claims of imminent production or large-scale development. The gap between narrative and evidence is minimal, with all major claims substantiated by disclosed data.

Risk flags

• ●Resource and economic uncertainty remains high, as no mineral resource estimate or economic assessment has been disclosed; the project's size, grade continuity, and economic viability are unproven at this stage.
• ●Geological complexity is a risk, with the Mary March sequence described as folded and faulted, and massive sulphide intercepts being fault-bounded; this could impact continuity and future resource definition.
• ●Exploration success is not guaranteed: while every hole in the 2026 program intersected mineralization, the mineralized system is still open along strike and at depth, and most of the Fleetway Rhyolite remains untested.
• ●Pending assays for 14 samples from MM-26-43 and MM-26-44 could materially change the interpretation of mineralization continuity or grade, introducing short-term uncertainty.
• ●Project advancement is dependent on continued funding from VMS Mining Corporation under the earn-in agreement; only $4 million of the $12 million commitment has been received to date, and future funding is subject to ongoing approval and results.

Bottom line

Canstar Resources has delivered its strongest set of drill results to date at Mary March, with high-grade VMS intercepts and confirmation of mineralization across all summer 2026 holes. The fully funded fall drill program is already mobilizing, targeting geophysical conductors that could expand known mineralization. The $12 million earn-in agreement with VMS Mining Corporation, of which $4 million has been received, provides non-dilutive funding and reduces financial risk in the near term. However, the project remains at an early exploration stage, with no resource estimate or economic study, and significant geological and continuity risks persist. Investors should watch for pending assay results and fall drilling outcomes as the next catalysts. The most important takeaway is that while technical progress is clear and funding is in place, the project's ultimate scale and value remain unproven.

Announcement summary

(TSXV: ROX, OTCID: CSRNF) Canstar Resources Inc. announced additional assay results from its 2,756-metre summer 2026 drill program at the Mary March VMS Project in the Buchans district of central Newfoundland, and the mobilization of its fall drilling program. Drill hole MM-26-44 returned an intercept of 1.8 m grading 6.13% zinc, 106.3 g/t silver, 2.00 g/t gold, 2.53% lead, and 0.75% copper (6.0% CuEq) at the upper contact of the Fleetway Rhyolite. Drill hole MM-26-43 returned 1.8 m grading 4.1% CuEq approximately 28 m below that contact. These intervals are in addition to the previously reported widest massive sulphide intercept in the Project's history: 15.6 m grading 2.4% CuEq in drill hole MM-26-42. Every hole of the 2026 program intersected mineralization. The fall program will continue testing the Fleetway Rhyolite, aided by new geophysical data. Each sulphide intersection from the summer drilling program showed a conductive response during subsequent borehole electromagnetic (BHEM) surveys, with responses at MM-26-42 and MM-26-43 modelled as off-hole conductors extending down-dip along the rhyolite contact into untested ground. A 2,250 m fall drill program, funded by earn-in partner VMS Mining Corporation (VMSC) under the Company's approved exploration budget pursuant to its earn-in agreement, will test these off-hole conductors and the modelled Fleetway Rhyolite contact. The earn-in agreement provides up to C$12 million of project funding, of which C$4 million has been received to date. The earn-in is non-dilutive to Canstar's share capital; VMSC earns an interest in the Project, and no Canstar shares are issued to fund the work. In MM-26-44, a second sulphide intercept of 1.2 m assayed 1.43% zinc, 18.6 g/t silver, 0.45 g/t gold, 0.60% lead, and 0.19% copper (1.3% CuEq). In MM-26-43, the 1.8 m interval graded 0.95% copper, 1.45% lead, 3.42% zinc, 1.55 g/t gold, and 43.3 g/t silver (4.1% CuEq). In MM-26-41, 1.0 m at 0.18% copper and 0.77% zinc was intersected, consistent with a VMS stringer or feeder zone. Table 1 details selected intervals with CuEq grades of 0.5% or greater, including: MM-26-44 (1.2 m at 1.3% CuEq; 1.8 m at 6.0% CuEq), MM-26-43 (1.8 m at 4.1% CuEq), MM-26-42 (15.6 m at 2.4% CuEq, including 9.75 m at 3.4% CuEq and 5.0 m at 4.0% CuEq; 2.7 m at 1.4% CuEq), and MM-26-41 (1.0 m at 0.5% CuEq). Assays for 14 samples from MM-26-43 and MM-26-44 remain pending. The summer program drilled 2,756 m in four holes, the first drilling at the Project since 2019, and each hole intersected sulphide mineralization within the Fleetway Rhyolite. Including the 1999 discovery intercept of 9.63 m grading 10.1% zinc, 1.8% lead, 0.64% copper, 122 g/t silver, and 4.2 g/t gold, drilling at the Project has produced zinc-, silver-, and gold-bearing sulphide intercepts along approximately 230 m of strike length. The Fleetway Rhyolite is interpreted to extend approximately 1.2 km along strike, with approximately 700 m supported by historical drill holes. Three of the 2026 holes pierced the entire rhyolite package, measuring approximately 298 to 320 m in apparent thickness. The fall 2026 drill program comprises approximately 2,250 m of diamond drilling under contract with MCL Drilling, with the drill crew and rig mobilizing to the Project. The first two holes will test down-dip extensions of the MM-26-42 and MM-26-43 conductors, approximately 100 m beyond the summer intercepts. All fall holes will be PVC-cased for BHEM surveying. The fall program was approved in the current exploration budget under the Earn-In Agreement, with VMSC funding the program. Upcoming milestones include assay results for the remaining samples from MM-26-43 and MM-26-44, fall drill results, BHEM survey results, and planning for an additional drill program in winter 2027, subject to results and approval under the Earn-In Agreement. Bob Patey, P.Geo., Vice President, Exploration, is the Qualified Person for the release.

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