News Releases

Vancouver, December 09, 2020 - Canasil Resources Inc. (TSX-V: CLZ, DB Frankfurt: 3CC, “Canasil” or the “Company”) announces results from two additional drill holes, NRC-20-05 and NRC-20-06, testing the Candy vein at the Nora silver-gold project in north-central Durango State, Mexico. The six drill holes completed to date along 500 metres of the 3-kilometre traced strike of the Candy vein structure have consistently intersected significant gold-silver mineralization.

Core drill hole NRC-20-06, located 100 metres north of NRC-20-04 (announced Oct. 21, 2020), returned three mineralized intercepts with the highest gold and silver values from the six drill holes drilled to date on the Candy vein. Highlights include:

• 1.65 metres (m), true width (TW) 1.49 m, averaging 11.86 g/t gold and 378 g/t silver for 1,238 g/t AgEq* from the Candy vein, including;
  • 1.00 m (TW 0.91 m) with 19.49 g/t gold and 620 g/t silver for 2,033 g/t Ag Eq*, and;
  • 0.50 m (TW 0.45 m) with 36.70 g/t gold and 1,010 g/t silver for 3,671 g/t AgEq*.
• 2.65 m (TW 2.40 m) averaging 4.78 g/t gold and 351 g/t silver for 698 g/t AgEq*, up-hole from the above intercept, referred to as the Candy hanging wall structure, including;
  • 1.15 m (1.04 m TW) with 7.90 g/t gold and 528 g/t silver for 1,101 g/t AgEq*, and;
  • 0.50 m (TW 0.45 m) with 15.6 g/t gold and 561 g/t silver for 1,692 g/t AgEq*.
• 0.29 m (TW 0.26 m) carrying 26.1 g/t gold and 284 g/t silver for 2,176 g/t AgEq*, in a lower intercept, referred to as the Candy foot wall structure.

These three consistently very high-grade gold and silver intercepts occur within a core interval of 16.65 m separated by 9.50 m and 3.71 m respectively, as detailed below:

Canasil President and CEO, Bahman Yamini, commented: “The very high-grade gold and silver values returned from NRC-20-06 are extremely encouraging and exceed expectations from a first drill program at the Nora project. The results from the six drill holes completed on the Candy vein represent a significant discovery and warrant a larger Phase 2 follow up drill program. We will be analyzing these results in detail and preparing plans for further follow up drilling at the Nora project.”

Drill hole NRC-20-05, located 200 metres north of NRC-20-06, returned an intercept of 0.73 m (TW 0.72 m) carrying 1.46 g/t gold, 7.49 g/t silver and 1.93% zinc for 167 g/t AgEq*. All six drill holes located along a strike distance of 500 metres on the Candy vein, shown on the drill plan map below, have intersected the vein structure below surface. Two additional drill holes have been completed to test the Nora vein, located 600 m NE of the Candy vein. These holes complete the planned initial drill program at the Nora project with a total of 1,744 metres in eight drill holes. The results from drill holes NRC-20-01 to NRC-20-04 (reported Sept. 10 and Oct. 21, 2020), and these results from NRC-20-05 and NRC-20-06 confirm the potential of the Candy vein for hosting very high-grade gold and silver mineralization, warranting a larger Phase 2 drill program to follow up on the high-grade zones identified by this initial drill program at the Nora project.

The drill program is implemented by the Company’s exploration team in Mexico under the direction of Eng. Erme Enriquez (CPG). All core samples are logged and prepared at the Company’s core storage facility in Durango, Mexico, and sent to ALS Laboratories in Zacatecas, Mexico, for preparation and then on to ALS Global in Vancouver for gold and silver analyses by fire assay with an atomic absorption finish (“FA-AA”) on a 30 gram split, and for silver, copper, lead, zinc and trace elements by ICP analysis following digestion of 0.50 gram sample in aqua regia. Over limit silver and copper are assayed using an aqua regia digestion, followed by ICP-AES or AAS finish, and over limit gold and silver assayed by gravimetric finish (Au-GRA21 and Ag-GRA-21). The Company's QA/QC program includes inserting certified analytical standards and blanks into the sample batches, and the subsequent diligent monitoring of results for quality analytical assurance.

About Nora Silver-Gold-Copper-Zinc-Lead Project, Durango State, Mexico:

The Nora project is located approximately 200 km north-west of the City of Durango, with good access and infrastructure. The geological setting is a Tertiary-aged volcanic flow-dome complex. Gold-silver mineralization is hosted within two structurally-controlled epithermal veins, Candy and Nora. Mineralization is typical of that found at many mines in the region, with gold and silver associated with galena, sulfosalt minerals and lesser pyrite, sphalerite and chalcopyrite. There is evidence of some historical mining activity on the Candy vein, which is exposed in discontinuous outcrops for over 900 metres. The fault structure hosting the Candy vein has been traced for a distance of over 3 km. Samples of vein outcrop and mineral dumps from the Candy vein returned significant gold, silver, copper, zinc and lead values. The second vein, Nora, is found 600 metres northeast of the Candy vein and can be traced for 230 metres with widths of over 9.0 metres. Surface samples from this vein returned anomalous silver values associated with trace sulphides, with a geochemical signature typical of the higher levels of epithermal vein systems in the region.

Historical systematic grid soil sampling over an area of 3 km by 2 km covering the Candy and Nora veins and projected extensions, showed elevated silver, base metal (copper, lead and zinc) and pathfinder (antimony and arsenic) values. The combination of the vein outcrops with large areas of anomalous silver and base metal values in soil samples may indicate additional concealed mineral systems. Other major deposits in the region include SSR Mining’s La Pitarrilla deposit located 50 km east of the Nora project.

About Canasil:

Canasil is a Canadian mineral exploration company with a strong portfolio of 100% 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 track 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 Robert Brown (P. Eng.), a Qualified Person as defined by National Instrument 43-101. Mr. Brown is a technical advisor to Canasil.

For further information please contact:

Bahman Yamini
President and C.E.O.
Canasil Resources Inc.
Tel: (604) 709-0109
www.canasil.com

Canasil Nora Silver-Gold Project, Durango. Mexico
Candy Vein Area Geological Map Showing Drill Holes NRC-20-01 to NRC-20-06

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

This news release includes certain statements that may be deemed to be “forward-looking statements”. All statements in this release, other than statements of historical facts are forward looking statements, including statements that address future mineral production, reserve potential, exploration drilling, exploitation activities and events or developments. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, changes in commodities prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions. The reader is referred to the Company’s filings with the Canadian securities regulators for disclosure regarding these and other risk factors. There is no certainty that any forward looking statement will come to pass and investors should not place undue reliance upon forward-looking statements.