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CLZ.V ·

Canasil Closes $790,000 Oversubscribed 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

May 18, 2021 www.canasil.com

Canasil Closes $790,000 Oversubscribed Non-Brokered Private Placement

To Fund Drill Programs on Mexican Silver-Gold Projects

Vancouver, May 18, 2021 - Canasil Resources Inc. (TSX-V: CLZ , DB Frankfurt: 3CC , “Canasil” or the

“Company”) announces closing of a non-brokered private placement (the “Placement”) of 7,900,000

units (the Units”) at a price of $0.10 per Unit for total gross proceeds $790,000, effective May 17, 2021.

The Placement was initially announced for $500,000 and subsequently increased to $750,000 through

news releases on April 27 and May 11, 2021. The closing of the Placement is subject to final acceptance

by the TSX Venture Exchange . The securities issuable in connection with the 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 $5,700

is payable on part of the proceeds of the Placement . The proceeds will be used to fund continued drill

programs on the Company’s silver-gold exploration projects in Durango and Zacatecas States, Mexico,

and for working capital.

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

purchase warrant . Each whole warrant (a “Warrant”) will be exercisable to purchase one additional

common share of the Company at a price of $0. 15 during the first year, increasing to $0.2 0 in year two

following the closing of the offering . If, commencing after the fourth month after closing, the closing

price of the Company’s s hares exceeds $0.25 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.

In accordance with the Company’s Stock Option Plan , the Company has grant ed 1,900,000 incentive

stock options to Directors, Officers, Consultants and Employees. The options are exercisable at a price of

$0.15 and valid f or five years from the date of grant. The options are being granted as part of the

Company’s annual review of outstanding stock options under its Stock Option Plan.

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 mineral exploration projects through to discovery and further

development. The Company is actively engaged i n 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.

For further information please contact:

Bahman Yamini

President and C.E.O.

Canasil Resources Inc.

Tel: (604) 709-0109

www.canasil.com

Canasil Resources Inc.

News Release, May 18, 2021 page 2/2

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 under 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 registered under the 1933 Act and applicable state securities laws, or an exemption from such

registration requirements is available.