CLZ.V · 2023-08-03 12:00:00

Canasil Announces Silver Dollar Loan Settlement

Financings Debt & Credit Facilities

Tel: 604-708 3788

NEWS RELEASE TSX-V: CLZ

August 03, 2023 www.canasil.com

Vancouver, August 03, 2023 – Canasil Resources Inc. (TSX-V: CLZ, DB Frankfurt: 3CC, “ Canasil” or the

“Company”) announce s that the Company plans to settle the $200, 000 non -interest-bearing loan ( the

“Loan”) from Silver Dollar Resources Inc. (“Silver Dollar”) through the issuance of 6,666,667 Units (each, a

“Unit”) at a price of $0.03 per Unit (the “Loan Settlement”). The Loan was granted as part of the Exclusivity

Agreement with Silver Dollar as announced on April 20, 2023. The Loan Settlement is subject to approval

by the TSX Venture Exchange.

Each Unit will con sist of one common share of the Company (a “ Settlement Share ”) and one non -

transferable share purchase warrant (a “ Settlement Warrant ”). Each Settlement Warrant will be

exercisable to acquire one additional common share of the Company (a “ Warrant Share”) for a period of

24 months from the date of issuance at a price of $0.05. The Settlement Shares and Warrant Shares will be

subject to a statutory four months and one day hold period pursuant to applicable securities laws.

About Canasil

Canasil is a Canadian mineral exploration company with a 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 track record of identifying and

advancing successful mineral exploration projects through to discovery and further development.

For further information, please visit the Company website at www.canasil.com or contact:

Bahman Yamini

President and CEO

Canasil Resources Inc.

Tel: (604) 708-3788

Neither the 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 release.

This news release includes certain “forward -looking information” and “forward -looking statements”

(collectively forward-looking statements”) within the meaning of applicable Canadian securities legislation,

including regarding the Loan Settlement and issuance of Settlement and Warrant Shares. All statements in

this news release that address events or developments that we expect to occur in the future are forward -

looking s tatements. All such forward -looking statements are based on the opinions and estimates of

management as of the date such statements are made. Forward -looking statements necessarily involve

assumptions, risks and uncertainties, certain of which are beyond C anasil’s control, including those

described in the Company's financial statements and management discussion and analysis (“ MD&A”)

available on www.sedar.com. The list is not exhaustive of the factors that may affect Canas il’s forward-

looking statements.