Mr. Bahman Yamini reports

CANASIL RECEIVES $400,000 BRENDA PROPERTY OPTION PAYMENT

Canasil Resources Inc. has received the $400,000 first-anniversary option payment from Aurora Minerals Ltd. (Aurora JV), which is the corporation jointly owned by Freeport-McMoran Mineral Properties Canada Inc. and Amarc Resources Ltd. The option payment was required under the terms of the Feb. 4, 2025, option agreement between Canasil and Amarc, which is now assigned to Aurora JV, over Canasil's Brenda gold-copper-silver project in north-central British Columbia, Canada. The option payment will extend Amarc and Aurora JV's option to acquire the property for a second year and at the same time increase the exercise price of the option from $8-million to $9-million. The option agreement was announced on Feb. 11, 2025, and provides for the acquisition of 100-per-cent interest in the Brenda property on the terms further detailed below.

Bahman Yamini, president and chief executive officer of Canasil, commented: "Amarc and Aurora JV's extension of the Brenda property option agreement to a second year is a very positive development. The 2025 Aurora discovery, immediately adjacent to the Brenda property, is an outstanding achievement for Amarc and Freeport and their co-operation and attests to the quality of their exploration teams. Amarc and Aurora JV's exploration expertise and experience in the area will be an important factor to maximize the potential of the Brenda property. This option agreement with the Freeport-Amarc exploration program, now combined under the Aurora JV joint venture, and what promises to be one of the most significant gold-copper discoveries in B.C. is a significant asset for Canasil."

The 100-per-cent-Canasil-owned Brenda gold-copper-silver property comprises 22 mineral claims in the Toodoggone-Kemess porphyry copper-gold region and is located adjacent to Amarc-Aurora JV's Joy district tenures and immediately to the east of the Aurora gold-copper-silver discovery.

The terms of the five-year option agreement between Canasil and Amarc and now assigned to Aurora JV are as follows:

1. Annual cash option payments of $400,000 to Canasil to maintain the option, payable on every anniversary until the fourth anniversary for a total of $2-million ($800,000 paid to date);
2. Exercise price of the option to acquire 100-per-cent interest in the property starting at $8-million cash payment, if exercised in the first year, and increasing on an annual basis to $12-million in year 5;
3. The annual cash option payments are not credited toward the option exercise price;
4. Canasil will retain a 2-per-cent net smelter returns royalty, of which 1 per cent (or one-half) can be acquired for $5-million before commencement of commercial mining operations and $10-million after commencement of mining;
5. Amarc is the primary contractor for Aurora JV and is required to incur exploration expenditures to advance the mineral claims by at least one year during each year of the option.

The Brenda property claims fall largely within the area of common interest under the Freeport/Amarc agreement of 2021 (see Amarc's May 12, 2021, news release). As a result, the Brenda property option was offered to be made part of the Freeport/Amarc (now Aurora) JV Joy district, as defined by that agreement. On July 16, 2025, Amarc reported that Freeport has exercised its right to have the entire Brenda tenure included in the mineral property earn-in agreement for the Joy district.

On Sept. 4, 2025, Amarc reported that Freeport had elected to proceed to Stage 2 of the Joy mineral property earn-in agreement, under which Freeport has the right to earn a further 10-per-cent interest in the Joy district, to increase its interest from 60 per cent to 70 per cent, by spending an additional $75-million within five years at a rate of no less than $10-million per year. The exploration programs will be financed and operated by Freeport, with Amarc acting as the primary contractor to manage the exploration programs. Both companies' commitment to the Joy district and significant planned annual expenditures are very encouraging for the future prospects of the Brenda property.

The technical information herein has been reviewed and approved by Gary Nordin, PGeo, a qualified person as defined by National Instrument 43-101 and a director of Canasil.

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