Canstar Resources Inc.

Canstar Resources Inc.

January 28, 2010 08:00 ET

Canstar Resources Inc.: Vinland Files Appeals Book on Mary March Property Dispute

TORONTO, ONTARIO--(Marketwire - Jan. 28, 2010) - The directors of Canstar Resources Inc. (TSX VENTURE:ROX) have been advised that Vinland Resources filed an Appeals Book on January 18th, pursuant to their appeal against the decision by the Newfoundland and Labrador Mineral Rights Adjudication Board, which had rejected Vinland's claim for title to the Mary March mineral property.

Canstar's legal counsel in St John's advises that the Appeals Book refers to a formal record of all previously filed documents in the dispute between Vinland and The Mineral Recorder's office. Vinland must file a Factum within 30 days, on or before February 18th. The Factum will set out the specific terms of the appeal.

Harry Hodge, chairman of Canstar states, "This is an extremely frustrating development for Canstar shareholders and for mineral exploration in Newfoundland and Labrador. This dispute has dragged on for eight years, since 2002. The appeal is seen by Canstar directors as a continuing strategy by Vinland to further delay the resolution to this dispute and embarrass the government of Newfoundland and Labrador." 

"Unfortunately," he continued, "it also prevents Canstar from conducting comprehensive exploration and development of the Mary March property. The Buchans area is considered to be highly prospective for commercial deposits of gold, silver, copper, zinc and lead and capable of generating considerable economic activity in this area of central Newfoundland." 

The directors will continue to seek, by whatever means available, a successful resolution to 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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