Canstar Resources Announces Definitive Agreement with Freeport-McMoRan of Canada Limited to Complete Purchase of a Purchase O...

The directors of Canstar Resources Inc. (Canstar) (TSX VENTURE:ROX) wish to
announce that the Company has, subject to regulatory approval and closing,
entered into a definitive agreement with Freeport-McMoRan of Canada Limited
(formerly Phelps Dodge Corporation of Canada Limited) (FMCL) to complete
Canstar's acquisition of FMCL's option (Option) to acquire a 50% joint venture
interest in the Mary March mineral property located in the Buchans area of
Newfoundland And Labrador pursuant to the letter of intent entered into by
Canstar and FMCL in 2003.


The remaining 50% joint venture interest is held by Noranda Mining and
Exploration Inc. (part of the Xstrata group of companies) (Xstrata), who is also
the optionor. Upon exercise, the Option grants the optionee a right of first
refusal on Xstrata's 50% joint venture interest in the Mary March property.
Canstar is the Operator of the joint venture.


As previously reported, the Mary March property is located in the Buchans area
of Newfoundland and Labrador, 20 kilometers northeast of the formerly producing
Buchans mine (16.2 million tons @ 14.50% zinc, 7.56% lead, 1.33% copper, 126 g/t
silver and 0.9 g/t gold). Previous drilling on the Mary March property occurring
between 1999 and 2000, had discovered Buchans type massive sulphides, with one
hole averaging 10.33% zinc, 1.62% lead, 0.66% copper, 118 g/t silver and 4.1 g/t
gold over 9.23 metres. No exploration has been carried out on this zone since
2000.


The Company has definitive plans to conduct a comprehensive exploration program
over this property, including drilling and geophysics, as soon as the purchase
of FMCL's Option is completed and formal arrangements with Xstrata have been
finalized.


On behalf of the directors I would like to express our appreciation to our
shareholders for their patience with the delay in moving forward with the
property exploration plans. 


On behalf of the Board of Directors

Harry J. Hodge, P. Eng., Chairman

Forward-Looking Statements 

This News Release includes certain "forward-looking statements". These
statements are based on information currently available to the Company and the
Company provides no assurance that actual results will meet management's
expectations. Forward-looking statements include estimates and statements that
describe the Company's future plans, objectives or goals, including words to the
effect that the Company or management expects a stated condition or result to
occur. Forward-looking statements may be identified by such terms as "believes",
"anticipates", "expects", "estimates", "may", "could", "would", "will", or
"plan". Since forward-looking statements are based on assumptions and address
future events and conditions, by their very nature they involve inherent risks
and uncertainties. Actual results relating to, among other things, results of
exploration, project development, reclamation and capital costs of the Company's
mineral properties, and the Company's financial condition and prospects, could
differ materially from those currently anticipated in such statements for many
reasons such as: changes in general economic conditions and conditions in the
financial markets; changes in demand and prices for minerals; litigation,
legislative, environmental and other judicial, regulatory, political and
competitive developments; technological and operational difficulties encountered
in connection with the activities of the Company; and other matters discussed in
this news release. This list is not exhaustive of the factors that may affect
any of the Company's forward-looking statements. These and other factors should
be considered carefully and readers should not place undue reliance on the
Company's forward-looking statements. The Company does not undertake to update
any forward-looking statement that may be made from time to time by the Company
or on its behalf, except in accordance with applicable securities laws.

Canstar Resources (TSXV:ROX)
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