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Canasil Reports Assay Results for Drill Hole ES-16-12 at the La Esperanza Project in Durango and Zacatecas States, Mexico

Drill Results

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

February 09, 2017 www.canasil.com

Canasil Reports Assay Results for Drill Hole ES-16-12

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

Vancouver, February 09, 2017 - Canasil Resources I nc. ( TSX-V: CLZ , DB Frankfurt: 3CC, “Canasil”)

announces that the Company has received assay results for the first drill hole, ES-16-12, of the 2016-17 core

drilling program at the La Esperanza silver-lead-zi nc project in Durango and Zacatecas States, Mexico. This

drill hole intersected an extended interval of band ed quartz veins, veinlets and breccias hosted withi n

fractured and brecciated volcanic rocks from 345 me tres to 391 metres down-hole. The interval returned

assay results indicating several narrower zones car rying anomalous gold (Au) and copper (Cu), low silv er

(Ag) and appreciable lead (Pb) and zinc (Zn) values . The widest zone at the bottom of the hole returne d an

intercept of 3.57 metres (true width 3.08 metres) grading 0.14 g/t Au, 21 g/t Ag, 0.82% Pb and 2.63% Z inc.

The principal mineralized intervals are reported in the table below:

La Esperanza 2016 -17 Drill Program – Hole ES -16 -12

Interval - Metres Width – Metres Gold Silver Zinc Lead Copper

From To Int erval True Au g/t Ag g/t Zn % Pb % Cu %

347.36 348.94 1.58 1.36 0.08 23.0 1.98 1.31 0.04

Including 347.36 347.83 0.47 0.41 0.08 16.5 4.81 2.89 0.02

And 348.47 348.94 0.47 0.41 0.16 57.9 1.74 1.45 0.11

368.40 370.07 1.67 1.44 0.11 5.0 3.60 0.75 0.03

Including 369.45 370.07 0.62 0.54 0.27 8.9 9.64 2.00 0.00

387.16 390.73 3.57 3.08 0.14 21.0 2.63 0.82 0.08

Including 387.16 389.87 2.71 2.34 0.17 26.0 2.17 1.07 0.09

Including 387.71 388.71 1.00 0.86 0.10 35.0 2.63 0.78 0.14

Including 387.71 388.01 0.30 0.26 0.12 38.2 3.57 1.43 0.14

And 388.01 388.35 0.34 0.29 0.08 51.5 3.31 0.66 0.20

And 389.36 389.87 0.51 0.44 0.54 33.2 4.3 8 3.64 0.13

Drill hole ES-16-12 was targeted to intersect the main La Esperanza vein approximately 75 metres below ES-

12-03, a 2012 drill hole that intersected a 10-metr e structure at 266 metres down-hole which was well

mineralized returning 189 g/t Ag, 5.20% Zn and 2.22 % Pb over a true width of 3.24 metres, including 27 8

g/t Ag, 5.80% Zn and 2.80% Pb over a true width of 1.94 metres (reported in the news release dated

February 22, 2012). Although the silver grades are relatively low in ES-16-12, the zone of mineralization has

widened and follow-up holes are needed to bracket t his level of the La Esperanza system since similar

variations in widths and grades are common in epith ermal vein systems. The La Esperanza vein system has

now been traced by drilling to a depth of 375 metre s below surface and over a strike length of 245 met res

and remains open for further expansion. The textures of the multiple banded structures observed in ES-16-

12 may be indicative of the higher levels of a strong mineralized system. This hole was halted at 394 metres

due to difficult drilling conditions and it is not certain that the main La Esperanza vein was crossed -

additional holes on adjacent sections are required to adequately test the entire structure at this depth.

Canasil Resources Inc.

News Release, February 09, 2017 page 2/3

A second drill hole, ES-17-13, is in progress as pa rt of the 2016-17 drill program of 4 to 5 drill hol es for a

total of 1,500 to 2,000 metres. This step-out hole is designed to intersect the La Esperanza vein a further 90

metres along strike to the northwest, and will be f ollowed by additional drill holes to continue testi ng this

vein.

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 fo r

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 numbe r 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. Pa st

drilling on this vein was focused along an approxim ate strike length of 250 metres and to a relatively

shallow depth of approximately 250 metres and retur ned consistent high-grade silver-lead-zinc intercep ts

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 and 1.57% lead. The average true width of drill intercepts from 5 drill holes which

intersected the Hanging Wall vein was 1.53 metres r eturning 324 g/t silver, 1.37% zinc and 1.80% lead

(details listed under the La Esperanza project prof ile 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 States, Mexico, and in British Columbia, Canada. Th e

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.

Canasil Resources Inc.

News Release, February 09, 2017 page 3/3

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.

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 investors should not

place undue reliance upon forward-looking statements.