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Canstar Begins Drilling Program at Kenora Gold Project in Ontario

Canstar Resources Inc. ("Canstar" or "the Company") is pleased to announce the commencement of drilling on the Company's 100% owned Kenora Gold Project, located 9 kilometers east of Kenora, Ontario. The program will be comprised of a minimum of 1,000 meters and will be the first of several phases of drilling anticipated on the project heading into 2017. The Company has already commenced with ground preparation including additional stripping and trenching following recently announced results including the discovery of a gold bearing felsic zone with grab samples containing up to 1.4 g/t gold (see Company's press release dates November 17, 2016).

This drilling program will follow up on the cumulative results that were collected during 2015 and 2016. These results include testing the Ace Showing located on a highly prospective structural trend ("Aviator trend") whose results include surface channel samples of 29.3 meters (true width) averaging 3.1 g/t gold (see Company's press release dated June 20, 2016). In addition the Company will test anomalies associated with the induced polarization ("IP") geophysical program conducted this year which identified at least 11 geophysical targets. The Company's permits will cover all proposed phases of drilling (see Company's press release dated July 11, 2016).

Danniel Oosterman, President and CEO of Canstar, states: "We are excited to bring about this stage of work for the Kenora Gold Project, built upon months of diligent field work which has resulted in very strong targets going into the program. This first phase of drilling will not only allow us to test the Ace Showing at depth, but allow us to ascertain the effectiveness of the induced polarization survey in delineating gold mineralization in this area. These will be key metrics for the project going forward."

Danniel Oosterman, P.Geo is President and Chief Executive Officer and is a Qualified Person as defined by NI 43-101 and is responsible for the technical information in this release.

On behalf of the Board of Directors,

Danniel J. Oosterman, P.Geo, President & CEO

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