Canstar Resources Inc. announced that it has signed a binding property purchase agreement with Altius Resources Inc. 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. 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.

Canstar optioned the Golden Baie project claims due to their proximity to the Day Cove Thrust, 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. 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 (, 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 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 Agreement will be subject to a statutory hold period of four months and a day from the date of issuance.