Canasil Reports 3.73 Metres of 3.71 g/t Gold, 489 g/t Silver, and 0.53% Copper from the Candy Vein at the Nora Silver-Gold Project, Durango, Mexico

VANCOUVER, Oct. 21, 2020 - Canasil Resources Inc. (TSX-V: CLZ, DB Frankfurt: 3CC, “Canasil” or the “Company”) announces initial results from two additional drill holes, NRC-20-03 and NRC-20-04, from the on-going, fully-funded core drill program on the Candy and Nora veins at the Nora silver-gold project in north-central Durango State, Mexico.

Additional samples from both drill holes have been submitted for assay and will be announced when results are received and interpreted. NRC-20-04 was collared on the same section and targeted to intersect the Candy vein at a lower elevation than NRC-20-01, and NRC-20-03 was collared on the same section and targeted to intersect the Candy vein at a lower elevation than NRC-20-02, as shown on the drill plan map below. Drill holes NRC-20-05 and NRC-20-06, collared 200 metres and 400 metres respectively north of the section hosting NRC-20-01 and NRC-20-04, have been completed and samples submitted for assay.

The current drill program at the Nora project is the first pass at systematic, property-wide exploration. All four initial drill holes have intersected the Candy vein at depth and returned high gold and silver grades, with a notably thicker and higher grade intercept in NRC-20-04. The Candy vein is open to expansion along strike to the north and south, and to depth, and these results confirm the potential for further exploration.

Canasil President and CEO, Bahman Yamini, commented: “The strong high grade intercept from NRC-20-04 is very encouraging at this early stage of drill testing at the Nora project. This relatively wide intercept with high gold and silver grades confirms the potential of the project, and also for continued drilling of the Candy vein. We have now completed the six planned drill holes on the Candy vein and moved to drilling at the Nora vein as planned. The positive progress under current conditions is excellent, and we would like to thank our team, the drill contractors and local communities for their collective efforts to make this program a success.”

The drill program is being implemented by the Company’s exploration team in Mexico under the direction of Eng. Erme Enriquez (CPG). All core samples are logged at the Company’s core storage facility in Durango, Mexico. Samples are prepared and 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. Overlimit silver and copper are assayed using an aqua regia digestion, followed by ICP-AES or AAS finish.

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 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 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 distance of over three kilometres. 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.

Historical systematic grid soil sampling over an area of three kilometres by two kilometres 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. Other major deposits in the region include SSR Mining’s La Pitarrilla deposit located 50 km east of the Nora project.

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.

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.

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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 looking statement will come to pass and investors should not place undue reliance upon forward-looking statements.

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