Mr. Bahman Yamini reports

CANASIL REVIEWS OPPORTUNITIES ON GOLD-SILVER-COPPER PROJECT PORTFOLIO IN BC, CANADA AND DURANGO AND ZACATECAS STATES IN MEXICO

Canasil Resources Inc. has reviewed opportunities on its gold-silver-copper project portfolio in British Columbia, Canada, and in Durango and Zacatecas states, Mexico, following reinstatement of trading on the TSX Venture Exchange on Sept. 25, 2025. The company's operations will be backed by its option agreement with Amarc Resources Ltd., providing an option for Amarc to acquire its Brenda gold-copper project in north-central British Columbia, announced on Feb. 11, 2025, and detailed below. The company also has a strong silver-gold project portfolio in Durango and Zacatecas states, Mexico, which provide a platform for value creation in the current positive market environment for gold, silver and copper assets.

British Columbia, Canada: The 100-per-cent-owned Brenda gold-copper-silver property is under an option agreement providing for Amarc to acquire 100-per-cent interest in Canasil's Brenda property comprising 22 mineral claims in the Toodoggone-Kemess porphyry copper-gold region, which are located adjacent to Amarc's Joy district tenures and immediately to the east of Amarc's Aurora gold-copper-silver discovery.

The terms of the five-year option agreement are:

1. Annual cash option payments of $400,000 to Canasil to maintain the option starting upon signature (already paid) and on every anniversary until the fourth anniversary for a total of $2-million;
2. Exercise price of the option to acquire 100-per-cent interest in the property starting at $8-million cash payment, if exercised in the first year, and increasing on an annual basis to $12-million in year 5;
3. The annual cash option payments are not credited toward the option exercise price;
4. Canasil will retain a 2-per-cent net smelter returns royalty, of which 1 per cent (or one-half) can be acquired for $5-million before commencement of commercial mining operations and $10-million after commencement of mining;
5. Amarc will also be responsible for undertaking exploration expenditures to advance the mineral claims by at least one year during each year of the option.

The Brenda property is immediately adjacent to Amarc's important Aurora gold-copper discovery within Amarc's extensive Joy district, and the Brenda property claims fall largely within the area of common interest under the Amarc Freeport-McMoran Mineral Properties Canada Inc. agreement of 2021 (see Amarc's May 12, 2021, news release). As a result, the Brenda property was offered to be made part of the Freeport-Amarc Joy district as defined by that agreement. On July 16, 2025, Amarc reported that Freeport has exercised its right to have the entire Brenda tenure included in the mineral property earn-in agreement for the Joy district.

Amarc further reported on Sept. 4, 2025, that Freeport has formally elected to proceed to Stage 2 of the Joy mineral property earn-in agreement, under which Freeport has elected to earn a further 10-per-cent interest in the Joy district, to increase its interest from 60 per cent to 70 per cent, by spending an additional $75-million within five years at a rate of no less than $10-million per year. The exploration programs will be financed and operated by Freeport, with Amarc acting as the primary contractor to manage the exploration programs, and both companies' commitment to the Joy district and significant planned annual expenditures are very encouraging for the future prospects of the Brenda property.

Durango and Zacatecas states, Mexico

The company's Mexico silver-gold project portfolio is centrally located on the highly recognized Mexico silver belt running from northwest to southeast through Durango and Zacatecas states and hosting many well-known major operating mines and deposits.

Of Canasil's seven Mexican silver-gold projects, the company's interests in the Sandra and Nora projects have been sold to Pan American Silver and Silver Dollar Resources, respectively. The company retains a 2-per-cent net smelter return (NSR) royalty on its claims in each project with a 1-per-cent buyout for $4-million (U.S.) on the Sandra NSR royalty and 1-per-cent buyout for $1-million on the Nora NSR royalty. Canasil holds 100-per-cent interest in all the remaining projects. La Esperanza, Salamandra and Colibri have had successful past drill programs, which have returned high-grade silver-gold intercepts, with details reported in past news releases and available on the company's website.

All projects are highly prospective for discovery of additional high-grade silver-gold mineralization in very desirable locations with excellent access and infrastructure and constitute a platform for value creation for future exploration programs by Canasil directly or under option agreements with third parties. Following a generally negative environment over recent years for the mining and exploration sector in Mexico due to policies by the past government, there are signs of significant improvement under the new government and renewed optimism and increased interest and activity in the mining and exploration sector, particularly with the strong precious metals markets. This will provide a very positive environment for advancing Canasil's silver-gold project portfolio in Mexico.

The technical information herein has been reviewed and approved by Gary Nordin, PGeo, a qualified person as defined by National Instrument 43-101 and a director of Canasil.

We seek Safe Harbor.