Canstar Resources Inc.
TSX VENTURE : ROX

Canstar Resources Inc.

August 22, 2006 15:50 ET

Canstar Announces Appeal of Decision by Newfoundland and Labrador Supreme Court Regarding Mary March Property

TORONTO, ONTARIO--(CCNMatthews - Aug. 22, 2006) - The Directors of Canstar Resources Inc. (TSX VENTURE:ROX) announce that Vinland Resources Limited has appealed the ruling of the Newfoundland and Labrador Supreme Court, Trial Division, regarding the Mary March Property in the Buchans area of Newfoundland which was announced on July 27, 2006 (see Press Release 06-2006). The timing for the hearing of the appeal has not been determined, but it is hoped that it can be heard by the end of the year.

The Canstar-Phelps Dodge Corporation of Canada Joint Venture intends to file a cross appeal seeking to have Vinland's claim dismissed without a re-hearing by the Newfoundland and Labrador Mineral Adjudication Board.

Although the Canstar-Phelps Dodge Corporation of Canada Joint Venture continues to hold its interest in the subject claims over which Vinland has sought Map Staking Licences, no further work will be done on the Mary March Property until the appeal is determined.

The Corporation's legal advisors believe that the merits of the case strongly favour Canstar and that the appeal will be determined in favour of the Canstar-Phelps Dodge Corporation of Canada Joint Venture. The Directors appreciate shareholders' continuing faith and patience and we look forward to a final resolution of this matter.

On behalf of the Board of Directors

Harry J. Hodge, P.Eng.

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

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