Appeal on the Mary March Dispute Ruled in Favour of Canstar Resources

TORONTO, ONTARIO--(Marketwire - Oct. 6, 2011) - The directors of Canstar Resources Inc. (TSX VENTURE:ROX) are very pleased to announce that the appeal brought by Vinland Resources Limited against the decision of the Mineral Rights Adjudication Board in favour of the Mineral Claims Recorder ("MCR"), Canstar and Xstrata regarding the Mary March property, has been dismissed with costs awarded against Vinland.

In his ruling, the Honourable Mr. Justice Alphonsus E. Faour determined a number of key points: including the decision of the Board imposing the burden of proof on Vinland was appropriate; the Board was reasonable in its evaluation of the evidence before it that favoured the MCR/Canstar/Xstrata rights; and, finally, Vinland's suggestion that there had been a boundary line crossing Red Indian Lake to exclude the disputed area, was described as "conjecture", and "unsupported by significant evidence". The full ruling can be viewed on Canstar's website (www.canstarresources.com).

Canstar plans to implement a comprehensive exploration plan, including detailed drilling, on the Mary March property at its earliest opportunity. Discovery holes previously drilled on the property by Phelps Dodge in 1999 and 2000 produced some of the highest grade base and precious metal intersections ever achieved in the area outside the Buchans mine, including 9.3m @10.33% Zn, 1.62% Pb, 0.66% Cu, 118g/t Ag, and 4.1 g/t Au. Canstar's management believes that the property offers excellent potential to host a number of commercial, high grade VMS type base and precious metals deposits similar to the nearby Buchans Mine.

The Company has been informed that it is possible for Vinland to appeal this decision to the Newfoundland Court of Appeal, and from there, the Supreme Court of Canada.

Canstar would especially like to thank its loyal shareholders for their continued support and patience during the course of this dispute.

On behalf of the Board of Directors

Harry J. Hodge, P.Eng., Chairman

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.