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CLZ.V ·

Canasil Closes $1,565,500 Over-subscribed Non-brokered Private Placement To Fund Drill Programs on Mexican Silver-Gold Projects

Financings

Suite 1760 – 750 West Pender Street

Vancouver, BC V6C 2T8

Canada

Tel: 604-708 3788

Fax: 604-708 3728

Email: [email protected]

NEWS RELEASE TSX-V: CLZ

August 4, 2020 www.canasil.com

Canasil Closes $1,565,500 Over-subscribed Non-brokered Private Placement

To Fund Drill Programs on Mexican Silver-Gold Projects

Vancouver, August 4 , 20 20 - Canasil Resources Inc. (TSX-V: CLZ , DB Frankfurt: 3CC , “Canasil” or the

“Company”) announces closing of a non-brokered private placement (the “Placement”) of 7,827,500

units (the “Units”) at a price of $0.20 per Unit for total gross proceeds of $1,565,500. The Placement was

initially announced for $1,000,000 on July 17, 2020, and subsequently increased to $1,500,000 through

announcements on July 21 and July 22, 2020. The closing of the Placement is subject to final acceptance

by the TSX Venture Exchange . The securities issuable in connection with the private placement are

subject to a hold period expiring four months and one day after the date of issuance. A finder’s fee of

6% for $21,900 is payable on part of the proceeds of the Placement.

Bahman Yamini, President and CEO, commented; “We are very pleased to close this Placement in a short

time after it was announced, and thank all the participating subscribers and welcome our new

shareholders. We are now fully funded for the planned 2,500 -metre drill programs at each of our Nora

and La Esperanza silver-gold projects in Durango and Zacatecas States, Mexico, for a total of up to 5,000

metres during the second half of 2020. Drilling is currently in progress at Nora, and will be followed by La

Esperanza in September/October 2020.”

Each Unit consists of one common share of the Company and one -half of one non-transferable share

purchase warrant. Each whole warrant (a “Warrant”) entitles the purchase of one common share of the

Company at a price of $0. 25 during the first year, increasing to $0.30 in the second year following the

closing of the Placement. If, commencing after the fourth month after closing, the closing price of the

Company’s shares exceeds $ 0.50 per share for a period of 20 consecutive trading days (the

“Acceleration Trigger Date”) , the Company will have the right to accelerate the expiry date of the

Warrants to 30 days after the Acceleration Trigger Date by the issuance of a news release announcing

such acceleration within three trading days of the Acceleration Trigger Date.

The p roceeds of the Placement will be used to fund drill programs on the Company’s silver-gold

exploration projects in Mexico and for working capital.

About Canasil:

Canasil is a Canadian mineral exploration company with a strong portfolio of 100% owned 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 mi neral 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.

Canasil Resources Inc.

News Release, August 4, 2020 page 2/2

For further information please contact:

Bahman Yamini

President and C.E.O.

Canasil Resources Inc.

Tel: (604) 709-0109

Email: [email protected]

www.canasil.com

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 does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of

any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of

the securities in the United States of America. The securities have not been and will not be registered u nder the

United States Securities Act of 1933 (the “1933 Act”) or any state securities laws and may not be offered or sold

within the United States or to , or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933

Act) unless reg istered under the 1933 Act and applicable state securities laws, or an exemption from such

registration requirements is available.