Grant of Incentive Stock Options

Suite 750 – 625 Howe Street Vancouver, BC Canada V6C 2T6

Tel: 604-708 3788 Fax: 604-708 3728 Email: [email protected]

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NEWS RELEASE TSX-V: CLZ # 2 -2012: January 20, 2012 www.canasil.com

Grant of Incentive Stock Options

Vancouver, January 20, 2012 - Canasil Resources Inc. (Canasil, TSX-V: CLZ) announces that pursuant to the Company’s Stock Option Plan and subject to regulatory approval, up to a total of 1,250,000 incentive stock options will be granted to Directors, Management and Consultants of the Company. The options are exercisable for a period of two to five years at a price of $0.20 per share. 855,000 of these options will replace options which expired in 2011 or will expire in March 2012.

About Canasil:

Canasil is a Canadian mineral exploration company with interests in precious and base metal projects in Durango, Sinaloa 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. The Company is actively engaged in the exploration of its mineral properties.

For further information please contact:

Bahman Yamini President and C.E.O.

Canasil Resources Inc.

Tel: (604) 709-0109 www.canasil.com

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