Mr. Bahman Yamini reports

CANASIL REVIEWS DRILL-READY SILVER-GOLD-BASE METAL PROJECTS IN DURANGO AND ZACATECAS STATES, MEXICO

Canasil Resources Inc. is reviewing plans for renewed exploration on four 100-per-cent-owned drill-ready silver-gold-base metal projects located in the Mexican silver belt within Durango and Zacatecas states, Mexico. These projects are all located on this highly prospective mineral trend that hosts a number of major silver-gold mines and deposits. Two of the projects, La Esperanza and Salamandra, have had extensive previous exploration, including drilling that returned intervals of high-grade silver-gold and base metal (detailed herein), defining zones that are open for expansion. Two other projects, Nora and Vizcaino, are high-grade silver-gold epithermal vein targets where surface sampling has defined drill targets for testing. An overview of these projects is presented in this news release for reference.

La Esperanza silver-gold-zinc-lead, Durango and Zacataecas, Mexico:

The La Esperanza silver-gold-zinc-lead project is located 100 km south-southeast of the city of Durango in southern Durango and northern Zacatecas states, easily accessible from Canasil's operating base in Durango with excellent infrastructure. The project is located on the well-recognized world-class Fresnillo silver belt, in a region hosting a number of prominent silver mines and deposits such as the San Martin-Sabinas mines of Grupo Mexico and Penoles, the La Colorada mine of Pan American Silver, La Parrilla and Del Toro mines of First Majestic Silver, Fresnillo PLC's Fresnillo mine, and MAG Silver and Fresnillo's Juanicipio deposit.

A series of silver-zinc-lead epithermal veins are found within a northwest-striking corridor extending over at least 15 kilometres. The main La Esperanza vein, located in the southeast of the project area, is an epithermal vein with silver, gold, zinc and lead mineralization associated with argentiferous galena, silver sulphosalt minerals and sphalerite. Drilling to date on this vein has outlined a mineralized envelope over a strike distance of 425 metres and to a depth of 350 metres that is open to the northwest and the southeast along strike and to depth. Further drilling will be aimed at testing the extensions along strike to the northwest and southeast, and to depth. Drilling in the northwest extension will focus on stepouts and below ES-17-19 which returned 11.23 metres true width (TW) with 219 grams per tonne silver, 0.74 g/t gold, 0.9 per cent zinc and 0.43 per cent lead, including 1.11 metres TW with 2,281 g/t silver, 6.39 g/t gold, 2.23 per cent zinc and 1.25 per cent lead. The southeast extension will focus on stepouts and below ES-17-16 which returned 4.92 metres TW with 257 g/t silver, 0.64 per cent zinc and 0.63 per cent lead, including 0.95 metre TW with 1,133 g/t silver, 1.56 per cent zinc and 2.98 per cent lead (overview of the La Esperanza project and details of these results are included in the Canasil news release dated June 14, 2017).

Salamandra silver-copper-zinc-lead, Durango, Mexico

The Salamandra project is located 35 km northeast of the city of Durango in Durango state, with excellent infrastructure, and access by paved and gravel roads. The project is located on the mineral-rich Fresnillo geologic trend, approximately 80 km northwest of and within a similar geologic environment to the San Martin-Sabinas mines, which were among the largest underground silver-copper-zinc mining operations in Mexico. Comprehensive exploration programs to date include satellite imaging, aerial and ground geophysics, geological mapping and extensive surface sampling, and 18,000 metres of diamond drilling in 35 drill holes.

The mineralized system is centred on a main rhyolite dome structure associated with an intrusive centre in the project area. Evidence of silver-copper-antimony-arsenic surface anomalies with peripheral lead and zinc anomalies are widespread. Diamond drilling to the southwest of the dome returned significant silver and zinc-silver mineralization including drill hole SA-07-02 returning 9.85 metres of 102 g/t silver and 0.55 per cent zinc, and 7.45 metres of 50 g/t silver and 12 per cent zinc, and SA-07-03 with 10 metres of 71 g/t silver, 3.48 per cent zinc and 1.26 per cent lead, as well as wider zones of lower-grade zinc-silver mineralization (Canasil news release dated July 18, 2007). A ZTEM (z-axis tipper electromagnetic) airborne geophysical survey outlined a large complex response area covering 2.5 km by 3.5 km, where detailed surface sampling led to the discovery of a high-grade vein in outcrop, carrying 2,150 g/t silver, 5.39 per cent copper and 1.89 per cent zinc over 0.9 metre (Canasil news release dated Oct. 18, 2011). Results indicate a large silver-copper-zinc-lead system is present, associated with skarn, hydrothermal breccias, sulphide-rich veins and quartz porphyry dikes. Follow-up drilling around the rhyolite dome returned further mineralized intercepts including SA-14-15 returning 7.89 metres of 166 g/t silver, 1.2 per cent copper, 1.2 per cent zinc and 0.6 per cent lead including 2.3 metres with 393 g/t silver, 3.6 per cent copper, 2.8 per cent zinc and 0.4 per cent lead (Canasil news release dated March 17, 2014). Further drilling would be aimed at investigating this potentially large mineralized system and zones adjacent to the mentioned drill intercepts.

Nora silver-gold-copper-zinc-lead, Durango, Mexico

The Nora project is located approximately 200 km northwest of the city of Durango, with good access and infrastructure. There are two principal epithermal vein outcrops at the Nora project, the Candy and Nora veins. There is evidence of historical mining activity on the Candy vein, which can be traced for approximately 750 metres on surface, with the structure visible with discontinuous outcrops for over three km along strike. Samples of vein outcrop and mineral dumps from the candy vein returned significant gold, silver, copper, zinc and lead values. The highest grade sample of outcropping vein returned one metre with 1.98 g/t gold, 514 g/t silver, 1.03 per cent copper, 3.28 per cent zinc and 4.45 per cent lead, and the highest grab sample collected from waste piles returned 1.34 g/t gold, 293 g/t silver, 0.47 per cent copper, 0.38 per cent zinc and 9.27 per cent lead. The second Nora vein is found 600 metres northeast of the Candy vein and can be traced for 230 metres along strike with widths of over nine metres. Surface samples from this vein contained trace sulphides.

In a 2009 surface sampling program, 1,000 soil samples were collected along a grid covering the area surrounding the Candy and Nora veins, and projected extensions over an area of three km by two km. The results showed elevated silver, base metal (copper, lead and zinc) and pathfinder (molybdenum and arsenic) values over a large area. The combination of the vein outcrops with large areas of anomalous silver and base metal values in soil samples may indicate a larger buried mineral system at depth. Initial drilling would be focused on testing the veins below high-grade vein outcrops at a depth of 100 metres to 200 metres below surface.

Vizcaino silver-gold, Durango, Mexico

The Vizcaino project is located 130 km north of the city of Durango, 38 km southeast of Silver Standard's La Pitarrilla silver deposit, and 40 km north of the Argonaut Gold El Castillo and San Agustin gold-silver mines. The project area has very good access and infrastructure. The Pamplona vein outcrops with a southeast-northwest strike over a distance of over two km and varies in width from 1.1 metres to 12 metres. The vein structure composes fine-grained chalcedonic quartz, hosted by rhyolites, with typical textures observed in the higher levels of epithermal systems.

Surface sampling and mapping of the vein outcrops and surrounding area returned anomalous gold values between 32 parts per billion and 141 ppb in 20 samples taken from vein outcrops in hills at the higher elevations (2,300 metres to 2,350 metres) on the southeast end of the Pamplona vein over a strike distance of 1,000 m. Sampling at the northwest end, where the vein outcrops in fields at a lower elevation (2,250 m), returned consistently higher anomalous gold values between 161 ppb to 667 ppb in nine samples over a strike distance of approximately 400 metres. These results suggest increasing gold values with depth, consistent with the textures observed in the vein outcrops characteristic of the higher elevations of an epithermal system. The potential strike length and thickness of the vein indicated by surface outcrops suggests the possibility of a significant mineralized vein, which could be tested with drill holes at a depth of 150 metres to 250 metres from surface to confirm the possibility of increasing grades with depth.

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's directors and management include industry professionals with a record of identifying and advancing successful mineral exploration projects through to discovery and further development. 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.

The technical information herein has been reviewed and approved by J. Blackwell (PGeo), a qualified person as defined by National Instrument 43-101. Mr. Blackwell is a technical adviser to Canasil.

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