Canstar Resources Inc.
TSX VENTURE : ROX

Canstar Resources Inc.

January 26, 2007 10:43 ET

Geophysical Interpretation Received for Canstar Resources Sunday Lake Property, Thunder Bay, Ontario; Drilling Contract Being Negotiated

TORONTO, ONTARIO--(CCNMatthews - Jan. 26, 2007) - The Directors of Canstar Resources Inc. (TSX VENTURE:ROX) are pleased to announce that an interpretation of the Company's recently flown airborne geophysical survey over the Sunday Lake property has been received and indicates that the well-defined ring-shaped intrusive body was emplaced at shallow depths (less than 75m) and extends vertically for at least 750m. 3D inversion modeling of the magnetic data also indicates that the core of the complex is composed of strongly magnetic, but remnantly magnetized, material, which suggests a protracted period of igneous activity during the formation of the complex.

The Sunday Lake property, which lies only 30km north of Thunder Bay, represents an extremely interesting geophysical target and resembles a well-developed ring structure similar to those hosting intrusions of alkaline-affinity, i.e., carbonatite/kimberlite or mafic/ultramafic complexes. Both settings are economically significant and host the potential for large tonnage deposits of nickel, copper, niobium-tantalum and/or industrial minerals. Canstar is currently negotiating a diamond drill contract to begin testing the anomaly and will begin mobilizing for field operations as soon as a drill becomes available.

The area has received recent attention from Kennecott Canada, which has staked a row of claims along the entire northern circumference of the property boundary.

The airborne survey was flown by Terraquest Ltd of Markham Ontario and comprised 285 line kilometers of magnetic readings. Interpretation of the geophysical data was performed by Laurie Reed of Toronto.

Canstar also announces that, subject to regulatory approval, it has granted an aggregate of 1,875,000 incentive stock options to directors, officers and a consultant of the Company at a price of $0.15 per share and exercisable for a period of five years, expiring on January 26, 2012. A further 350,000 incentive stock options were granted to a consultant of the Company at a price of $0.15 per share and exercisable for a period of two years, expiring on January 26, 2009.

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 www.canstarresources.com.

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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