Canstar Resources Inc.

Canstar Resources Inc.

October 11, 2006 11:23 ET

Canstar Announces Acquisition of Sunday Lake Property

TORONTO, ONTARIO--(CCNMatthews - Oct. 11, 2006) - The Directors of Canstar Resources Inc (TSX VENTURE:ROX) are pleased to announce that the Company has signed a Letter of Intent to acquire 100% interest in the Sunday Lake mineral property from The Sunday Lake Syndicate. The property is located approximately 30 Kilometers north of Thunder Bay in Northwestern Ontario.

The Sunday Lake property comprises two mineral claims totalling approximately 360 acres. It covers the eastern portion of a very prominent, roughly circular, 1.2 kilometer diameter, negative magnetic anomaly.

There are no surface bedrock exposures to explain the source of this remarkable geophysical feature.

However, a soil geochemical survey over the anomaly, utilizing Mobile Metal Ion (MMI) technology, indicates that the source may be a Carbonatite. Carbonatites typically host a variety of mineral concentrations and often occur in association with Kimberlites.

Canstar has commissioned an airborne magnetic survey over the property to be carried out immediately. Results will provide a more accurate determination of the depth to the source body. Following this, drilling will be carried out to determine the actual nature of the causative body.

The agreement gives Canstar the right to earn 100% interest over 3 years by paying $150,000 and issuing 450,000 shares of Canstar, 50,000 of which will be issued on signing formal agreement. The Syndicate retains 2% Net Smelter Royalty (NSR) interest. Canstar has right of first refusal to buy back 1% for $1 million. The Syndicate would receive $1 million on the commencement of commercial production. The agreement is subject to approval by the TSX-Venture Exchange.

A director of Canstar holds a minority interest in the Sunday Lake Syndicate.

On the Shrimp and Tahoe Lakes base-precious metal properties in Northwestern Ontario a modest ground geophysical survey is currently being conducted to more accurately define the electromagnetic targets, preparatory to planned drilling.

On the Mary March property, the Company is awaiting a decision in response to a Cross Appeal filed by legal counsel for Canstar-Phelps Dodge, Noranda, and the Newfoundland & Labrador Mineral Recorder, seeking to have Vinland's claim dismissed without a re-hearing by the Mineral Adjudication Board.

Management is confident that a favourable decision will be handed down in time for the initiation of a drilling program, no later than early 2007, to define and delineate the high grade Mary march base-precious metals deposits.

On behalf of the Board of Directors

Harry J. Hodge, P.Eng.

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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