Mr. Bahman Yamini reports

CANASIL REVIEWS A POSITIVE 2025 AND LOOKS FORWARD TO 2026

Canasil Resources Inc. has reviewed an active and successful 2025, completing all required regulatory reporting requirements leading to full revocation of the cease trade order (CTO) issued in December, 2023, and return to active trading on the TSX Venture Exchange. The company looks forward to 2026 with opportunities to advance its gold-silver-copper project portfolio in British Columbia, Canada, and in Durango and Zacatecas states, Mexico, which will be announced in a separate news release to follow.

2025 highlights:

• Feb. 4, 2025 -- execution of the five-year option agreement with Amarc Resources Ltd. providing for Amarc to acquire a 100-per-cent interest in Canasil's Brenda gold-copper project in north-central British Columbia; Amarc's recent Aurora gold-copper discovery is adjacent to the northwestern boundary of the Brenda property; the agreement includes annual cash option payments of $400,000, with the initial payment made upon signature, and total payments adding to $2-million over the agreement term, which are not credited toward the option exercise price; option exercise price starts at $8-million cash in year 1, increasing on an annual basis to $12-million in year 5; Canasil will retain a 2-per-cent NSR (net smelter return) royalty, of which 1 per cent can be acquired for $5-million before commencement of commercial mining operations and $10-million after commencement of mining; Amarc will be responsible for undertaking exploration expenditures to advance the mineral claims by at least one year during each year of the option agreement;
• Feb. 28, 2025 -- appointment of Gary Nordin as director and David Cross as chief financial officer;
• May 28 and June 11, 2025 -- completion and filing of 2023 and 2024 audited annual financial statements and reports and completion and filing of Q1 2025 interim report, bringing all reporting requirements up to date and allowing immediate application to British Columbia Securities Commission (BCSC) to revoke the CTO issued in December, 2023;
• July 16, 2025 -- Amarc reported that Freeport-McMoran Mineral Properties Canada Inc. has exercised its right to have the entire Brenda tenure included in the Freeport-Amarc mineral property earn-in agreement for the Joy district;
• Aug. 7, 2025 -- Canasil annual general meeting held with approvals of past financial statements, board appointments and stock option plan.
• Sept. 4, 2025 -- Amarc announced 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;
• Sept. 12, 2025 -- BCSC full revocation of CTO and application to TSX Venture Exchange for resumption of trading;
• Sept. 25, 2025 -- TSX-V resumption of trading, Canasil trading on TSX-V NEX exchange; from Sept. 25, 2025, to Jan. 9, 2026, a total of 19,773,802 shares traded at an average price of 3.3 cents;
• Nov. 3, 2025 -- Canasil formally applied to TSX-V for reinstatement to TSX-V Tier 2 from TSX-V NEX, with the application currently in progress;
• Dec. 1, 2025 -- during Q3 and Q4 2025, Canasil completed reconnaissance and drone imaging surveys on the very high-grade silver Lil project in British Columbia, Canada, extending the claims to July 15, 2027.

Summary

The company thanks its shareholders for their support, understanding and patience through the period of the CTO and anticipates a very active 2026 to take advantage of the current positive market environment for the mining and mineral exploration sector with high gold, silver and copper prices.

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.