Mr. Bahman Yamini reports

CANASIL AND SILVER DOLLAR SIGN OPTION AND EXCLUSIVITY AGREEMENTS

Canasil Resources Inc. has signed an option agreement and an exclusivity agreement with Silver Dollar Resources Inc. Pursuant to the agreements, Silver Dollar will provide Canasil with a $200,000 non-interest-bearing loan in return for a two-month exclusivity period to conduct due diligence on the assets of Canasil, and an option to earn a 100-per-cent interest in Canasil's Nora property.

The exclusivity period provides Silver Dollar the opportunity to review Canasil's assets and consider a corporate merger and may be extended for an additional 30 days if requested by Silver Dollar at no cost. Should Silver Dollar decline to propose a transaction or the parties find the terms of a proposed transaction unacceptable, then the exclusivity period will terminate and Canasil will have 60 days to repay the loan in shares or cash at Canasil's option. Completion of a proposed transaction will be subject to shareholder and regulatory approvals.

Canasil owns a 100-per-cent interest in the Nora property, located in Durango state, Mexico. Under the terms of the Nora option, Silver Dollar can earn a 100-per-cent interest in the property by incurring total exploration expenditures of $3-million and making cash payments totalling $375,000 over five years. Upon earning a 100-per-cent interest in the property, Silver Dollar will grant Canasil a 3-per-cent net smelter returns royalty, with Silver Dollar having the right to buy back 1 per cent of the royalty for $3-million. After exercising the option, Silver Dollar will also pay an annual advance royalty of $25,000 which will be offset against the 1-per-cent royalty buyback.

About Canasil Resources Inc.

Canasil is a Canadian mineral exploration company with a strong portfolio of silver-gold-copper-lead-zinc exploration 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.

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