Canstar Resources Announces Final Closing of $1,050,000 Non-Brokered Private Placement to Explore Mary March and Adjacent Properties

TORONTO, ONTARIO--(Marketwire - Jan. 10, 2012) - The directors of Canstar Resources Inc. (Canstar) (TSX VENTURE:ROX) are pleased to announce the closing of the final tranche of the non-brokered private placement financing announced on December 13, 2011. In total, the Corporation has sold 7,000,000 units at $0.15 per unit for gross proceeds of $1,050,000. Each unit consists of one common share and one common share purchase warrant. A total of 2,000,000 units for gross proceeds of $300,000 were sold on a flow-through basis.

Each whole purchase warrant entitles the holder to acquire one common share at $0.20 for a period of one year after closing (the "Warrant Term") provided, however, should the closing price of the common shares equal or exceed $0.30 for 20 consecutive trading days following four months and one day after issuance, Canstar may accelerate the Warrant Term to the date which is 30 days following the date a press release is issued by Canstar announcing the reduced Warrant Term.

The Corporation announced the closing of the first tranche on December 28, 2011 comprised of 4,693,332 Units for gross proceeds of $704,000. Finders were paid a cash commission of $17,625. The second tranche comprised of 2,306,668 Units for gross proceeds of $346,000 closed on January 10, 2012. Finders were paid a cash commission of $17,300.

All securities issued with respect to the offering are subject to a hold period which expires four months after closing.

Proceeds of the financing will be used to fund exploration on the Company's Mary March property in the Buchans area of Newfoundland and Labrador and working capital. Previous drilling on this property had identified base and precious metals VMS type mineralization including some of the highest grade intersections in the area outside the Buchans mine.

The Company is currently negotiating contracts for a first phase drilling program which is to commence within the next month and an airborne electromagnetic/magnetic survey to commence as soon as the equipment is available.

On behalf of the Board of Directors

Harry J. Hodge, P. Eng., Chairman

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.