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Canasil Prepares to Drill Silver-Gold Targets at the Nora Project in Durango State, 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

June 30, 2020 www.canasil.com

Canasil Prepares to Drill Silver-Gold Targets

at the Nora Project in Durango State, Mexico

Vancouver, June 30, 20 20 - Canasil Resources Inc. ( TSX-V: CLZ , DB Frankfurt: 3CC, “Canasil” or the

“Company”) is pleased to anno unce that the Company expects to start an initial core drill program to test

silver-gold targets at the Nora project in north-central Durango State, Mexico. Contractors f rom local

communities have been engaged for road upgrades, building of drill pads, a nd for water supply. The drill is

expected to mobilize to site during the week of July 8, 2020 . Both the Company and the drill contractor

have filed COVID -19 operating protocols and received approvals from the Mexican authorities. Particular

care and attention will be paid during all operations to ensure the safety of local communities and the

Company’s and contractors’ personnel working on site.

Gold-silver mineralization at Nora is hosted within structurally -controlled epithermal veins. The drill sites

have been selected based on a geological review including surface sampl es collected in August 2019

(reported September 26, 2019 ), as well as available historical information. Drill sites are planned on four

sections on the Candy vein , spaced over a strike length of 500 metres , all below high-grade silver and gold

samples from vein outcrops and rock dumps from earlier underground workings. The Candy vein has not

been previously drilled. A second epithermal vein outcrop, the Nora vein, occurs 600 metres northeast of

the Candy vein with a near parallel north-south strike and has not been previously drill tested or mined. The

two parallel vein structures at the Nora project , coupled with the large areas of anomalous silver and base

metal values in soil samples surrounding the vei ns, highlight the project’s potential for hosting a large

mineralized system. Details of selected drill targets were outlined in a prior news release dated April 29,

2020.

Canasil President and CEO, Bahman Yamini, commented: “We look forward to starting field operation s in

Mexico with the drill program at the Nora project . The project is exceptionally well located in a region

hosting large silver-gold mines and deposits, and presents the opportunity for discovery of a high-grade

silver-gold epithermal vein system . Our local operating team based in the city of Durango will be taking

exceptional care to ensure the safe operation of the program under the current circumstances.”

About Nora Silver-Gold-Copper-Zinc-Lead, Durango State, Mexico:

The Nora project is located approximately 200 km north -west of the City of Durango, with good access and

infrastructure. The geological setting is a Tertiary -aged volcanic flow -dome complex. Gold -silver

mineralization is hosted within two structurally-controlled epithermal veins , Candy and Nora.

Mineralization is typical of that found at many mines in the region, with gold and silver associated with

galena, sulfosalt minerals and lesser pyrite, sphalerite and chalcopyrite. There is evidence of historical

mining activity on the Candy vein, which can be traced for over 900 metres on surface, while the host

structure is exposed in discontinuous outcrops for a distance of over 3 km. Samples of vein outcrop and

mineral dumps from the Candy vein returned significant gold, silver, copper, zinc and lead values. The Nora

vein is found 600 metres northeast of the Candy vein and can be traced for 230 metres with widths of over

9.0 metres. Surface samples from this vein returned anomalous silver values and contained trace sulphides,

with a geochemical signature typical of the higher levels of epithermal vein systems in the region.

Canasil Resources Inc.

News Release, June 30, 2020 page 2/2

Historical systematic grid soil sampling over an area of 3 km by 2 km covering the Candy and Nora veins and

projected extensions, showed elevated silver, base metal ( copper, lead and zinc) and pathfinder (antimony

and arsenic) values. The combination of the vein outcrops with large areas of anomalous silver and base

metal values in soil samples may indicate additional concealed mineral systems.

About Canasil:

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

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

Company’s directors and management include industry profess ionals 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.

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.

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.

This news release includes certain statements that may be deemed to be “forward -looking statements”. All statements

in this release, other than statements of historical facts are forward looking statements, including statements that

address future mineral production, reserve potential, exploration drilling, exploitation activities and events or

developments. These statements involve known and unknown risks, uncertainties and other factors that may cause

actual results or events to differ materially from those anticipated in such forward -looking statements. 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 statements. Factors that could cause actual results to differ materially

from those in forward -looking statements i nclude, but are not limited to, changes in commodities prices, exploration

successes, continued availability of capital and financing, and general economic, market or business conditions. The

reader is referred to the Company’s filings with the Canadian se curities regulators for disclosure regarding these and

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

place undue reliance upon forward-looking statements.