Mr. Bahman Yamini reports

CANASIL ARRANGES MAILING OF INFORMATION CIRCULAR AND PROXIES FOR SPECIAL MEETING OF SHAREHOLDERS FOR PROPOSED SPIN-OFF OF B.C. PROPERTIES TO CANMINE MINERALS INC.

Canasil Resources Inc. has arranged mailing of the information circular and proxies for the special meeting of shareholders planned for Dec. 12, 2017, to consider the spinoff transaction to segregate its British Columbia properties into a separate company, Canmine Minerals Inc., as previously announced on July 26 and Oct. 24, 2017. Shareholders of Canasil will receive shares of Canmine in proportion to their shareholdings of Canasil, and Canasil will continue to hold its Mexican assets. It is proposed that the transaction will be carried out as a plan of arrangement under the Business Corporations Act (British Columbia). Complete details of the proposed transaction are set out in the information circular and voting proxies, which have been mailed to shareholders and are also available on SEDAR and on the company's website. The transaction is subject to approval by the TSX Venture Exchange.

The transaction is intended to unlock value for Canasil shareholders by allowing the market to independently value the British Columbia properties, and by providing greater flexibility to arrange financing to actively advance exploration programs on these properties.

The consideration for the transfer of the British Columbia properties will be based on the issuance of common shares of Canmine, which will be distributed to Canasil shareholders based on one share of Canmine for each two shares of Canasil held, following approval of the transaction and other required procedures. Warrant holders and option holders of Canasil will receive warrants or options of Canmine which are proportionate to, and commensurate with the terms of, their existing Canasil warrants or options.

About Canasil Resources Inc.

Canasil is a Canadian mineral exploration company with a strong portfolio of 100-per-cent-owned silver-gold-copper-lead-zinc projects in Durango and Zacatecas states, Mexico, and in British Columbia, Canada. The company is actively engaged in the exploration of its mineral properties and maintains an operating subsidiary in Durango, Mexico, with full-time geological and support staff for its operations in Mexico.

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