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CLZ.V ·

Canasil Starts Drilling at La Esperanza Silver-Gold-Zinc-Lead Project

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

May 24, 2018 www.canasil.com

Canasil Starts Drilling at La Esperanza Silver-Gold-Zinc-Lead Project

Vancouver, May 24, 2018 - Canasil Resources Inc. (TSX-V: CLZ, DB Frankfurt: 3CC, “Canasil”) announces that

drilling has started at the La Esperanza silver-gold-zinc-lead project in Durango and Zacatecas States, Mexico.

The drill program is planned to follow up on the positive drill results from the 2016 -17 drill program on the

La Esperanza vein, located in the southeast of the project area.

Canasil President & CEO, Bahman Yamini, commented: “ We are pleased that drilling has resumed at La

Esperanza; the project covers a large area hosting multiple vein systems with potential for high -grade silver-

gold-zinc-lead mineralization. The main La Esperanza vein, where the recent and current drill programs have

been focused, demonstrates signs of a strong mineralized system and has consistently returned wide high -

grade intercepts from drilling to date. This vein has only been tested over a limited zone along the potential

strike of the vein at a relatively high level in the system. There should be excellent opportunities for expanding

the mineralized envelope along strike and to depth.”

The first drill hole ES-18-20 is targeted to test 50 metres below and 25 metres to the southeast along strike

from the high grade intercept in drill hole ES-17-16 on the southeastern extension of the vein. The second

drill hole will be targeted to test 50 metres below and 25 metres to the northwest along strike from drill hole

ES-17-19 on the northwestern side of the La Esperanza vein. ES-17-16 intercepted the vein on the southeast

extension of the vein at a vertical depth of 200 metres below surface with an inter val of 4.92 metres true

width returning 257 g/t silver, 0.64% zinc and 0.63% lead, including a high grade zone of 0.95 metres true

width returning 1,133 g/t silver, 1.56% zinc and 2.98% lead. ES-17-19 intercepted the La Esperanza vein on

the northwest extension of the vein at a depth of 325 metres below surface , including a hanging wall vein,

the main vein and a footwa ll vein over a n interval of 11.23 metres true width carrying 219 g/t silver, 0.74

g/t gold, 0.90% zinc and 0.63% lead, including a high grade zone of 1.11 metres true width returning 6.39

g/t gold, 1,281 g/t silver, 2.23% zinc and 1.25% lead. Of particular interest are the high grade silver and gold

intervals in these drill intercepts, and a footwall vein intercepted approximately 6 metres below the main

vein in drill hole ES-17-19. (For details of these results please refer to news releases dated April 3 and May 2,

2017, on the Company’s website at www.canasil.com).

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

in southern Durango and northern Zacatecas States. The project is easily accessible from Canasil’s operating

base in Durango with excellent infrastr ucture. The project is located on the well -recognized world class

Fresnillo silver belt, hosting a number of prominent silver mines such as the San Martin -Sabinas mines of

Grupo Mexico and Peñoles, the La Colorada mine of Pan American Silver and La Parrill a and Del Toro mines

of First Majestic Silver and Fresnillo PLC’s Fresnillo mine.

Canasil Resources Inc.

News Release, May 24, 2018 page 2/2

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

over approximately 15 kilometres hosted in the Lower Volcanic Group. Mineralization occurs in low to

intermediate sulphidation veins, primarily striking northwest and dipping southwest. The main La Esperanza

vein, located in the southeast of the project area, is a banded and c ockade white to grey quartz breccia

epithermal vein with silver, lead and zinc mineralization associated with argentiferous galena, silver sulfosalt

minerals and sphalerite. Drilling to date on this vein has outlined a mineralized envelope over a strike distance

of 400 metres and to a depth of 350 metres that is open in both directions to the northwest and southeast

along strike and to depth defined by mineralized intercepts over appreciable widths and high silver-gold-zinc-

lead grades. Alteration of the volcanic host rocks extending along strike from the La Esperanza vein outcrop,

the spatial association with a discrete broad magnetic anomaly (possibly an igneous intrusion at depth), as

well as local drainage patterns has outlined a target extending for ove r 5 kilometres in this area. Further

details are listed under the La Esperanza project profile on the Company’s website www.canasil.com, and

have been previously reported in the company’s news releases.

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 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 op erating 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.

This 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 acti vities 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 f orward-looking statement will co me to pass and investors should not place undue reliance upon forward -

looking statements.