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CLZ.V ·

Canasil to Resume 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 10, 2018 www.canasil.com

Canasil to Resume Drilling at La Esperanza Silver-Gold-Zinc-Lead Project

Vancouver, May 10, 2018 - Canasil Resources Inc. ( TSX-V: CLZ, DB Frankfurt: 3CC, “Canasil”) announces

that the Company has completed preparations to resume drilling 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. The access road to the drill area has been graded and the drill sites have been prepared in advance of

the drill mobilizing to site. All required permits are in place and the start of the drill program will be

announced when drilling is underway.

The initial drill holes are designed 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 side, and 50 metres below and 25

metres to the northwest along strike from drill hole ES-17-19 on the northwestern side of the main La

Esperanza vein. Details of the intercepts drilled in these holes are included in the table below for reference .

ES-17-16 intercepted the La Esperanza vein on the southeast extension of the vein at a vertical depth of 200

metres below surface with an interval 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 as detailed below. 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

footwall vein over an 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

holes, and the footwall vein intercepted approximately 6 metres below the main vein in drill hole ES-17-19.

La Esperanza 2016 - 17 Drill Program**

Hole ES-17-16

Interval - Metres Width – Metres Gold Silver Zinc Lead Copper Silver Eq*

From To Interval True Au g/t Ag g/t Zn % Pb % Cu % Ag Eq g/t

139.41 145.35 5.94 4.92 0.01 257 0.64 0.63 0.03 321

Including 143.00 145.35 2.35 1.95 0.03 628 0.90 1.52 0.08 750

Including 144.20 145.35 1.15 0.95 0.06 1,133 1.56 2.98 0.16 1,362

Hole ES-17-19

296.44 309.41 12.97 11.23 0.74 219 0.90 0.43 0.05 382

HW Vein 296.44 298.83 2.39 2.07 0.04 261 2.09 0.92 0.15 406

Main Vn 298.83 302.01 3.18 2.75 2.76 552 1.16 0.63 0.08 850

Including 300.73 302.01 1.28 1.11 6.39 1,281 2.23 1.25 0.18 1,938

FW Vein 306.88 308.62 1.74 1.51 0.39 256 1.68 0.74 0.02 406

*Silver equivalents calculated assuming 100% recoveries (for Ag Eq calculation only – may not reflect actual recoveries)

and Ag US$17/oz, Au US$1,250/oz,Cu US$2.50/lb, Zn US$1.30/lb, and Pb US$1.00/lb

** Results previously reported in Canasil news releases dated April 3, and May 2, 2017

Canasil Resources Inc.

News Release, May 10, 2018 page 2/3

The 2016-17 drill program referenced above was implemented by the Company’s exploration team under

the direction of Eng. Erme Enriquez (CPG), Director of Exploration and Development of Minera Canasil S.A.

de C.V., the Company’s wholly owned Mexican subsidiary. All samples were prepared and logged at the

Company’s core storage facility in Durango, Mexico. Drill core samples are sawn with half being sent for

assay and half secured for reference. Samples are sent to the ALS Laboratories in Zacatecas, Mexico for

preparation and then on to ALS Global in Vancouver for gold and silver analyses by fire assay with an atomic

absorption finish (“FA-AA”) on a 30 gram split, and for silver, copper, lead, zinc and trace elements by ICP

analysis following digestion of 0.50 gram sample in aqua regia.

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 infrastructure. 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 Parrilla and Del Toro mines

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

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 cockade 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 over 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 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 & CEO

Canasil Resources Inc.

Tel: 604-709 0109

Canasil Resources Inc.

News Release, May 10, 2018 page 3/3

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 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-looking statement will come to pass and investors should not

place undue reliance upon forward-looking statements.