Mr. Bahman Yamini reports

CANASIL CLOSES $150,000 PRIVATE PLACEMENT BY MAG SILVER CORP.

Canasil Resources Inc. has closed the previously announced private placement by MAG Silver Corp. of 1.5 million units at an exercise price of 10 cents per unit for gross proceeds of $150,000. MAG Silver has entered into this private placement in connection with its option to earn a 60-per-cent interest in Canasil's La Esperanza silver project in Zacatecas and Durango states, Mexico. The company has completed all formalities for the issuance of the shares and warrants for this placement, and the placement has closed effective Aug. 27, 2010.

Each unit will consist of one common share of the company and one-half of one share purchase warrant. Each full warrant will entitle the holder to purchase one common share of the company at a price of 15 cents within one year of closing. If, beginning six months following the closing of the private placement, the closing price of the company's shares equals or exceeds 30 cents per share for a period of 10 consecutive trading days, the company will have the right to accelerate the expiry date of the warrants by giving the warrantholders at least 30 days written notice.

In accordance with securities legislation currently in effect, the shares, the warrants and the warrant shares will be subject to a hold period of four months plus one day, expiring on Dec. 28, 2010. The deadline for exercise of the warrants will be Aug. 27, 2011.

The proceeds of the private placement will be used for continuing exploration programs on the company's mineral exploration projects and for working capital.