Mr. Bahman Yamini reports

CANASIL APPLIES FOR DRILL PERMIT FOR THE VIZCAINO GOLD-SILVER PROJECT IN DURANGO STATE, MEXICO

The drill permit application for Canasil Resources Inc.'s Vizcaino gold-silver project in Durango state, Mexico, is in progress. The drill program is fully financed and ready to proceed as soon as the drill permit is obtained. The company expects to receive the drill permit by the end of Q1 2026 or early in Q2 2026 and to begin the phase 1 drill program of 1,050 metres in six HQ core drill holes in Q2 2026. Following evaluation of the results from the phase 1 program, the company has planned a phase 2 drill program of 1,450 metres in eight HQ core drill holes. Quotes from drill contractors have already been received and are being evaluated to award the drill contract. The drill permit will also include provisions for follow-on drilling with stepouts along strike and to depth so that it encompasses provisions for further drill programs at the Vizcaino project.

Vizcaino gold-silver project, Durango, Mexico: The project hosts a potentially high-grade gold-silver epithermal vein, traced over a strike distance of three kilometres with outcrop widths of one metre to 12 metres. The Vizcaino project is located 127 kilometres north of the city of Durango in a highly prospective region surrounded by producing gold-silver mines and deposits, such as Heliostar Metals' (formerly Argonaut Gold) San Agustin and El Castillo mining complex. The Vizcaino project has never been drill tested before. The region is known for hosting significant gold-silver mines and deposits and lies centrally on the major recognized northwest-southeast silver trend running through Durango and Zacatecas states. Furthermore, it is also located on a west-east gold trend running through Durango state from Sinaloa state to the west to northern Zacatecas state to the east. As such it sits on the crosshairs of two major gold-silver trends, forming a strategic location.

The initial phase 1 and phase 2 drill programs include a total of 14 HQ core drill holes for 2,450 metres, located on seven sections designed to intercept and test the epithermal vein at vertical depths of 150 metres and 200 metres. The outcrops show classic banded epithermal textures typical of the higher levels of epithermal vein systems. Vein outcrop samples returned anomalous gold values between 32 parts per billion and 141 ppb in 20 samples taken at the higher elevations (2,300 m to 2,350 m) to the southeast over a strike distance of 1,000 m. At the northwestern end, at a lower elevation (2,250 m), gold values increased to between 161 ppb to 667 ppb in nine samples over a strike distance of 400 m. This suggests that the surface expression is at the top of the system and the system is entirely intact with no erosion and grades are increasing with depth. The extensive strike and strong surface outcrop widths are encouraging signs for the discovery of a large fully intact epithermal vein system. The company looks forward to the completion of the permit process and the start of the drill program.

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.