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CLZ.V ·

Canasil Non-Brokered Private Placement Oversubscribed Increase from $500,000 to $750,000

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 11, 2021 www.canasil.com

Canasil Non-Brokered Private Placement Oversubscribed

Increase from $500,000 to $750,000

Vancouver, May 11, 2021 - Canasil Resources Inc. (TSX-V: CLZ , DB Frankfurt: 3CC , “Canasil” or the

“Company”) announces that the previously announced non-brokered private placement (the

“Placement”) of up to 5,000,000 units (the Units”) at a price of $0.10 per Unit for total gross proceeds of

up to $500,000 is oversubscribed and has been increased to 7,500,000 units for $750,000. All other

terms remain unchanged. A finder’s fee may be paid with respect to all or part of this Placement. The

terms of the Placement are subject to acceptance by the TSX Venture Exchange.

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 shares 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. The Placement is expected

to close by mid-May, 2021.

The proceeds of the Placement 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

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 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.

For further information please contact:

Bahman Yamini

President and C.E.O.

Canasil Resources Inc.

Tel: (604) 709-0109

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.

Canasil Resources Inc.

News Release, May 11, 2021 page 2/2

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 securitie s 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 ac count 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.