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Canasil Increases Planned Drill Program to 2,200 Metres in 7 Drill Holes at the La Esperanza Project in Durango and Zacatecas States, Mexico

Exploration Programs

Suite 1760 – 750 West Pender Street

Vancouver, BC

Canada V6C 2T8

Tel: 604-708 3788

Fax: 604-708 3728

Email: [email protected]

NEWS RELEASE TSX-V: CLZ

March 23, 2017 www.canasil.com

Canasil Increases Planned Drill Program to 2,200 Metres in 7 Drill Holes

at the La Esperanza Project in Durango and Zacatecas States, Mexico

Vancouver, March 23, 2017 - Canasil Resources Inc. ( TSX-V: CLZ , DB Frankfurt: 3CC, “Canasil”) announces

that the Company has received assay results for thr ee additional drill holes, ES-17-13, ES-17-14 and E S-17-

15, of the 2016-17 core drilling program at the La Esperanza silver-lead-zinc project in Durango and

Zacatecas States, Mexico. All three drill holes inte rsected mineralized vein structures with results de tailed

in the table below. ES-17-13 was a 90-metre step-ou t to the northwest from prior vein intercepts, and ES-

17-14 and ES-17-15 were each 50-metre and 100-metre step-outs below the previously identified

southeastern zone of the La Esperanza vein. These d rill holes have extended the confirmed intercepts o f

the La Esperanza vein to approximately 335 metres a long strike and to a depth of 425 metres below

surface. All three holes appear to have crossed or passed close to faults located to the northwest and

southeast of the central zone of the La Esperanza v ein. This resulted in ES-17-13 being lost in a cavi ty,

presumed to be part of the vein structure, and low recoveries and loss of vein material around the vei n

intercepts in ES-17-14 and ES-17-15. These factors may have contributed to lower intercept widths and

grades reported from these holes. All the holes intersected the vein in relatively wide, altered structures in

areas where prior drilling did not reach the vein, and extend the known vein zone indicating a strong

mineralized system which is open for further investigation along strike and to depth.

La Esperanza 2016 -17 Drill Program

Hole ES -17-13

Interval - Metres Width – Metres Gold Silver Zinc Lead Copper *Silver Eq

From To Interval True Au g/t Ag g/t Zn % Pb % Cu % *Ag Eq g/t

421.38 422.20 0.82 0.71 0.30 131 0.64 0.23 0.84 28 1

Hole lost in cavity, may not have intersected or recovered entire vein structure

Hole ES -17 -14

HW Vein 176.30 179.50 3.20 2.13 0.01 38 0.50 0.14 0. 02 70

La Esp 187.40 190.40 3.00 2.51 0.01 63 0.50 0.15 0. 03 98

Vein intercept close to fault, broken and soft material, low recoveries

Hole ES -17 -15

202.90 208.32 5.42 4.14 0.10 33 1.06 0.63 0.02 122

Including 202.90 204.95 2.05 1.56 0.05 51 1.90 1.38 0.03 215

Vein intercept close to fault, broken and soft material, low recoveries

*Silver equivalents calculated assuming 100% recoveries (for Ag Eq calculation only – may not reflect actual recoveries)

and Ag US$17/oz, Au US$1,250/oz,Cu US$2.50/lb, Zn US$1.30/lb, and Pb US$1.00/lb

In addition drill holes ES-17-16, a further 50-metr e step-out to the southeast from ES-17-15, and ES-1 7-17

targeted 75 metres below the main ore shoot in the central area of the La Esperanza vein have been

completed, both intersecting the vein structure. ES -17-17 intersected a 10-metre vein structure where

banded quartz carrying sphalerite and galena is obs erved – assay results for these holes will be repor ted

when received. A total of 1,820 metres in 6 drill h oles has now been completed for the current drill

program. A further drill hole, ES-17-18, is in prog ress in the northwest of the vein system, increasin g the

current program to approximately 2,200 metres in 7 drill holes.

Canasil Resources Inc.

News Release, March 23, 2017 page 2/4

The drill program is being implemented by the Compa ny’s exploration team under the direction of Eng.

Erme Enriquez (CPG), Director of Exploration and De velopment of Minera Canasil S.A. de C.V., the

Company’s wholly owned Mexican subsidiary. All core samples are processed at the Company’s core

processing and storage facility in Durango, Mexico. Samples are cut by diamond saw, and half is sent f or

assay and half secured for reference. Samples are s ent to the ALS Laboratories in Zacatecas, Mexico for

preparation and then on to ALS Laboratories in Vancouver for assay analysis for gold and silver by fire assay

with an atomic absorption finish (“FA-AA”) on a 30 gram split, and for silver, copper, lead and zinc b y

digestion of 0.50 gram sample in aqua regia and analysis by AA.

The technical information herein has been reviewed and approved by J. Blackwell (P. Geo.), a Qualified

Person as defined by National Instrument 43-101. Mr. Blackwell is a technical advisor to Canasil.

About La Esperanza

The La Esperanza silver-lead-zinc project covers 14,916 hectares, located 100 km SSE of the city of Durango

on the border between Durango and Zacatecas States. The project site is easily accessible from Canasil’ s

operating base in Durango with excellent infrastruc ture. The project location in southern Durango and

northern Zacatecas States is on the well-recognized world class Fresnillo silver belt, hosting a number of

prominent silver mines such as San Martin-Sabinas m ines of Grupo Mexico and Penoles, the La Colorada

mine of Pan American Silver and La Parrilla and Del Toro mines of First Majestic Silver and Fresnillo PLC’s

Fresnillo mine.

A series of silver-lead-zinc epithermal veins are o bserved over a northwest-southeast striking zone

extending over approximately 20 kilometres hosted i n the Lower Volcanic Group. Mineralization occurs i n

low to intermediate sulphidation veins, primarily s triking northwest and dipping southwest. The main L a

Esperanza vein is a banded and cockade white to gre y quartz breccia epithermal vein with silver, lead and

zinc mineralization associated with argentiferous g alena, silver sulfosalt minerals and sphalerite. Pr ior to

the current 2016-17 drill program, past drilling on this vein was focused along an approximate strike length

of 250 metres and to a relatively shallow depth of approximately 250 metres and returned consistent high-

grade silver-lead-zinc intercepts from the main La Esperanza vein and an associated Hanging Wall vein at

the upper levels. The average true width of intercepts from 8 drill holes on the main La Esperanza vein was

4.21 metres returning 330 g/t silver, 0.93% zinc an d 1.57% lead. The average true width of drill inter cepts

from 5 drill holes which intersected the Hanging Wa ll vein was 1.53 metres returning 324 g/t silver, 1 .37%

zinc and 1.80% lead (details listed under the La Es peranza project profile on the Company’s website

www.canasil.com , and previously reported in the news release dated November 6, 2006).

About Canasil:

Canasil is a Canadian mineral exploration company w ith a strong portfolio of 100% owned silver-gold-

copper-lead-zinc projects in Durango and Zacatecas S tates, Mexico, and in British Columbia, Canada. The

Company’s directors and management include industry professionals with a track record of identifying a nd

advancing successful mineral exploration projects t hrough to discovery and further development. The

Company is actively engaged in the exploration of i ts 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 & CEO

Canasil Resources Inc.

Tel: 604-709 0109

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.

Canasil Resources Inc.

News Release, March 23, 2017 page 3/4

La Esperanza Project, Durango & Zacatecas, Mexico: La Esperanza Vein Drill Plan and Long Section

Canasil Resources Inc.

News Release, March 23, 2017 page 4/4

This release includes certain statements that may b e deemed to be “forward-looking statements”. All st atements in

this release, other than statements of historical f acts are forward looking statements, including stat ements that

address future mineral production, reserve potentia l, exploration drilling, exploitation activities an d events or

developments. These statements involve known and un known risks, uncertainties and other factors that m ay cause

actual results or events to differ materially from those anticipated in such forward-looking statement s. 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 statem ents. Factors that could cause actual results to di ffer materially

from those in forward-looking statements include, b ut are not limited to, changes in commodities price s, exploration

successes, continued availability of capital and fi nancing, and general economic, market or business c onditions. The

reader is referred to the Company’s filings with th e Canadian securities regulators for disclosure reg arding these and

other risk factors. There is no certainty that any forward looking statement will come to pass and inv estors should not

place undue reliance upon forward-looking statements.