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Canasil Reports Positive Progress On 2021 Drill Program at the Nora Silver-Gold-Copper-Zinc-Lead Project in Durango State, Mexico

Exploration Programs

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NEWS RELEASE TSX-V: CLZ

July 29, 2021 www.canasil.com

Canasil Reports Positive Progress On 2021 Drill Program

at the Nora Silver-Gold-Copper-Zinc-Lead Project in Durango State, Mexico

Vancouver, July 29, 20 21 - Canasil Resources In c. (TSX-V: CLZ , DB Frankfurt: 3CC, “Canasil” or the

“Company”) reports completion of three drill holes, NRC -21-09, NRC-21-10, and NRC -21-11, with a fourth

drill hole, NRC -21-12, in progress and nearing completion at the Nora silver-gold project in north-central

Durango State, Mexico . The targets of these four drill holes are below and between high-grade gold and

silver intercepts from the 2020 drill holes NRC-20-04 and NRC -20-06 on the Candy vein structure , as

previously reported in the news release dated July 06, 2021, announcing the start of the drill program. A

total of 790 metres of core drilling has been completed since the start of the program in early July 2021.

All three holes completed to date have cut th e Candy vein structure as projected . A total of 110 core

samples from intercepts in the first two drill holes, NRC-21-09 and NRC-21-10, are currently being processed

at ALS Chemex Labs in Zacatecas and North Vancouver ; core samples from the third drill hol e, NRC-21-11,

are being prepared for assay. The fourth hole NRC-21-12 is expected to be completed shortly.

Canasil President and CEO, Bahman Yamini commented; ” The positive progress with the 2021 drill program

at the Nora project and quick completion of successive drill holes is encouraging and a credit to the drill

contractors and our operating team. The Candy vein structure is being intersected as projected in every drill

hole and we look forward to the results from these drill holes.”

The 2020 and 2021 drilling to date has intersected the Candy vein over a strike distance of 5 00 metres and

to a depth of 200 metres. The four 2021 drill holes to date are targeted to test below and between the 2020

drill intercepts as shown on the Candy vein long section below.

About Nora Silver-Gold-Copper-Zinc-Lead Project, 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 fl ow-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 some historical mining activity

on the Candy vein, which is exposed in discontinuous outcrops for over 900 metres . The fault structure

hosting the Candy vein has been traced for a distanc e 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 second vein,

Nora, 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 associated with trace

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

The 2020 drill program was the first drilling at the Nora project and returned encouraging intercepts with

high gold, silver and copper values from the Candy vein.

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

extensions, showed e levated 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 syste ms. Other major deposits in the

region include SSR Mining’s La Pitarrilla deposit located 50 km east of the Nora project.

Canasil Resources Inc.

News Release, July 29, 2021 page 2/3

The technical information herein has been reviewed and approved by Robert Brown (P. Eng.), a Qualified

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

About Canasil:

Canasil is a Canadian mineral explor ation 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 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.

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 include, 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 securities regulators for disclosure regarding these and

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

place undue reliance upon forward-looking statements.

Canasil Resources Inc.

News Release, July 29, 2021 page 2/3

Fig. 1: Canasil Nora Project, Candy Vein Long Section - 2020 and 2021 Drill Intercepts