Toronto, Ontario -- July 11, 2016. Canstar Resources (Canstar; TSX.V: ROX) is pleased to announce results from the completion of a geophysics survey on its Kenora Gold Project. The Company conducted an induced polarization ("IP") survey in May and June of 2016 over the Company's Ace Showing as well as the geological trend inferred by previous work.
The IP survey delineated a number of prospective features:
• A series of chargeable-resistive anomalies that run parallel to a known major structure; these anomalies trend over 1.6 kilometer distance, currently comprised of 11 targets at various depths;
• The "Ace" Showing falls on this trend and has a coincident chargeable-resistive anomaly; the Company recently announced results from the Ace Showing including a 29.3 meter channel sample with a gold grade of 3.1 g/t (see Company's press release dated June 20, 2016);
• A long, continuous anomaly can be observed extending for 900 meters on this trend
• A second, previously unexplored anomaly branching off the known mineralized trend to the southwest, which extends a minimum 300 meters with 3 continuous anomalies;
• A third previously unexplored trend located at the northwest portion of the property which extends for 500 meters; this trend appears to occur at shallow depths and extends to approximately 150 meters depth.
A summary of these trends is tabulated below:
| Lines | Depth | Length | Location | Details |
| L1+00-L5+00 | 0 to -150m | 500m | West grid | High chargeability, high resistivity trend plunging to NE |
| L1+00-L3+00 | -25 to -50m | 200m | East grid | High chargeability, high resistivity trending NE |
| L5+00-L14+00 | -25 to -150mm | 900m | East grid | High chargeability, variable resistivity trending NE -- Ace Showing falls on this trend |
| L12+00-L15+00 | -50 to -150m | 300m | East grid | ENE branch from large 1.5km trend, similar character |
| L4+00-L5+00 | -100m to -150m | 100m | East grid | Possible down-plunge of L5+00-L14+00 anomaly |
IP surveys are designed to test the chargeability and resistivity of subsurface minerals, such as those that may be associated with gold mineralization. As with many gold deposits worldwide, gold mineralization in Kenora that has been observed to date is associated with two characteristics:
1. An association with quartz veins
2. An association with disseminated sulphide mineralization;
The resistive properties of quartz veins are well understood, tending to exhibit high resistivity. Conversely, disseminated sulphides tend to be more chargeable due to their metallic properties. Coincident anomalies of higher resistivity coupled with high chargeability are therefore prioritized in terms of exploration targeting. Numerous high chargeability and low resistivity targets are also observed in the data; such anomalies are often associated with higher sulphide content. Historically, the Scramble Mine, which is to the south of the Aviator trend and operated between 1908 and 1914, contained high sulphide content in its ore and therefore the chargeability anomalies observed in this survey will require careful evaluation.
"These results are extremely encouraging in light of anomalies not only coinciding with our Ace Showing, but also where there are historic gold showings," stated Danniel Oosterman, President and CEO of Canstar. "At a high level we've generated a basket of new targets, as well as highlighting new areas to explore within and around a known gold mineralizing system."
The Company is currently evaluating these targets on the ground to assess and prioritize in preparation for a drilling program expected to commence prior to the end of the summer season.
Mr. Danniel Oosterman, P.Geo., the President and CEO of the Company, is a ''Qualified Person'' under National Instrument 43-101 and has reviewed the technical disclosure in this press release.