Canstar Resources Inc.

Canstar Resources Inc.

October 22, 2007 16:49 ET

Canstar Update on Appeal Hearing for the Mary March Property Dispute, Newfoundland; Recent Warrant Exercise

TORONTO, ONTARIO--(Marketwire - Oct. 22, 2007) - The Directors of Canstar Resources Inc. (TSX VENTURE:ROX) would like to update shareholders on the progress of the Mary March appeal (Vinland Resources Limited) and cross-appeal (Phelps Dodge Corporation-Canstar Resources). The appeals, which were scheduled to heard in a two-day period from October 16 to 17, 2007, require additional time and have been adjourned until November 9, 2007, when the remaining arguments will be heard. Shareholders will continue to be updated as news becomes available.

The Company believes that this short break in the appeal hearing will have very little effect on the timing of a decision by the Appeal Panel. A decision on our cross appeal would provide the speediest resolution to the dispute, eliminating the need for a second Adjudication Board hearing.

The Mary March property is located in central Newfoundland, 20 kilometers northeast of, and within the same geological group that hosts the prolific former producing Buchans mine. Drilling by Phelps Dodge in 1999 resulted in the discovery of the Mary March deposit, and produced some of the highest-grade base and precious metal diamond drill intersections (9.2m @ 10.33% Zn, 1.62% Pb, 0.66% Cu, 118.1g/t Ag and 4.1 g/t Au) ever achieved in the area outside the Buchans mine. Canstar has the right to earn 50% interest in the property, with first refusal rights on the remaining 50%, from Phelps Dodge. Following a favourable outcome of the dispute, Canstar will immediately begin a drilling program to further define the mineralized zone.

Mary March History

The Mary March dispute began in 2000, when a privately held Newfoundland company, Vinland Resources Limited, filed applications seeking Map Staking Licenses over the core Mary March discovery areas. The Mineral Claims Recorder (Newfoundland), on the basis of evidence that the lands in question had been privately held since 1905, rejected the applications, however, on December 20, 2000, Vinland filed a grievance with the Mineral Rights Adjudication Board, asking that the Mineral Claims Recorder's decision be overturned.

In a favourable decision to Canstar, the Supreme Court overturned the decision of the Mineral Rights Adjudication Board. Vinland filed notice of appeal in August 2006 and Phelps Dodge-Canstar responded with the cross-appeal asking that Vinland's claim be dismissed without a rehearing.

Warrant Exercise

The management of Canstar would like to issue a correction to the Company's press release of October 17, 2007, regarding the recently exercised warrants. Although the overall value of the exercised warrants remains the same, the proportions of flowthrough and non-flowthrough warrants was incorrect. The corrected figures are 5,293,333 flowthrough warrants and 440,000 non-flowthrough warrants exercised for gross proceeds of $846,799 ($793,999 flowthrough; $52,800 non-flowthrough). These funds will be used for general working capital of the Corporation.

Canstar's shares trade on the TSX Venture Exchange under the symbol ROX.

David Palmer, Ph.D., P.Geo., is the qualified person for all technical information in this release. To find out more about Canstar Resources, visit our website at

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Canstar, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Canstar's expectations are exploration risks detailed herein and from time to time in the filings made by Canstar with securities regulators.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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