Mr. Bahman Yamini reports

FREEPORT-AMARC JV GEOPHYSICAL SURVEYS IDENTIFY MAJOR NEW SULPHIDE MINERALIZED SYSTEMS ON CANASIL'S BRENDA GOLD-COPPER PROPERTY IN THE TOODOGGONE REGION

Aurora Minerals Ltd. (AML), a private joint venture company owned 60 per cent by Freeport-McMoRan Mineral Properties Canada Inc. and 40 per cent by Amarc Resources Ltd., has identified major new sulphide systems located within Canasil Resources Inc.'s Brenda property, east of AML's high grade Aurora porphyry gold-copper (Au-Cu) deposit discovery, through continuing induced polarization (IP) ground geophysical surveys at the Joy copper-gold district. These surveys are one component of Freeport-Amarc's $20-million 2026 exploration program under way at Joy which is financed by Freeport (see Amarc's news release dated July 21, 2026). Amarc is the primary contractor managing AML's programs under a separate services agreement.

Recent IP results expand Joy's potential with the new sulphide systems on Brenda:

• Expanded AML's original 4.5-square-kilometre NWG sulphide system that hosts the Aurora Au-Cu deposit, located west of the Brenda property boundary, eastward over an area that now covers seven square kilometres extending into the Brenda property;
• Discovered a new and still open 4.5-square-kilometre sulphide system, named the Roe target, located within the Brenda property and adjacent to the east of the expanded NWG sulphide system;
• Expanded the White Pass sulphide system (which hosts the historical Brenda Au-Cu deposit) from 3.0 square kilometres to 5.0 square kilometres.

The eastward expansion of the NWG sulphide system, together with the Roe and White Pass sulphide systems, lies within the Brenda property. AML, through Amarc, has a five-year mineral property option agreement with Canasil, pursuant to which it can acquire a 100-per-cent interest in the Brenda property through annual cash option payments of $400,000 and an additional $8-million if exercised in Year 1, increasing on an annual basis to $12-million if exercised in Year 5. The annual cash payments are not credited toward the purchase price. The optionee will be responsible to advance the mineral claims by at least one year during each year of the option, and Canasil will retain a 2-per-cent net smelter return 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 (see Canasil's news release dated Feb. 11, 2025, and Amarc's news release dated July 16, 2025).

Canasil president and chief executive officer Bahman Yamini commented: "These very encouraging geophysical results announced by Amarc highlight the potential of the Brenda property for hosting a significant gold-copper mineralized system, which we have always believed. We congratulate the Freeport-Amarc JV on their systematic exploration program and these positive results, identifying a 12-kilometre-long, east-northeast-oriented cluster of porphyry gold-copper systems referred to as the Aurora trend, stretching from the NWG sulphide system hosting the Aurora gold-copper deposit to the west through to the Nub target area to the east, with the eastern extension of the NWG system, the Roe and White Pass mineralized systems located on the Brenda property in between. These systems constitute part of an extensive copper-gold mineralized system and remain open to expansion, located at the heart of the Toodoggone region of British Columbia."

The Brenda property is considered by Amarc to be underlain by similar highly prospective volcanics and transitional porphyry copper-gold and epithermal gold-silver geological setting as at the Aurora and Twins porphyry gold-copper discoveries. Historical exploration of the Brenda property identified both epithermal and porphyry-related rock alteration assemblages hosting Cu, Au and Ag mineralization, including a historical drill hole intersection of 78 metres grading 0.61 gram per tonne gold and 0.10 per cent copper from 110 metres in hole BR-07-05 (see Canasil's National Instrument 43-101 technical report on the company's website).

Expansion of the NWG sulphide system host to the Aurora deposit

The NWG sulphide system has been expanded from 4.5 square kilometres to seven square kilometres as defined by the greater-than-14-millivolt-per-volt IP chargeability anomaly proximal to and overlooking the Aurora porphyry Au-Cu discovery. The new eastward extension to the NWG system features many of the same prospective characteristics of the Aurora deposit, including, for example, a similar low-IP-resistivity response, extensive strong quartz-sericite-pyrite and advanced argillic alteration at surface within similar volcanic rocks, and an association with a magnetic high anomaly in a covered valley bottom. This portion of the expanded anomaly has never been drill tested.

The new and expansive Roe sulphide system

The Roe sulphide system is defined by a 4.5-square-kilometre greater-than-14-millivolt-per-volt IP chargeability anomaly and is characterized by prominent gossanous areas over its 2.6-kilometre length. It also has the same northwestern trend as the adjacent NWG sulphide system hosting the Aurora deposit. The Roe sulphide system remains open to expansion to the southeast, where there is a two-kilometre gap that remains to be surveyed, then, farther southeast, completed reconnaissance IP lines have outlined an IP chargeability anomaly directly along strike over 1.5 kilometres by 0.8 kilometre. While broad areas of the ROE system are concealed under shallow cover, geological reconnaissance and shallow (less than 100 metres) historical drilling (15 holes) have identified the presence of altered and Au-Cu-Ag mineralized volcanics and intrusive rocks which are known to host porphyry Au-Cu mineralization at Joy and in the Toodoggone region. In addition, geochemical silt samples collected from main drainages returned a very strong and classic porphyry copper-gold-molybdenum signature (183 to 618 parts per million Cu, 13 to 196 parts per billion Au and nine to 45 ppm Mo).

Expansion of the White Pass sulphide system host to the historical Brenda deposit

Historical IP surveying at the White Pass zone outlined a three-square-kilometre greater-than-14-millivolt-per-volt IP chargeability anomaly, which hosts the Brenda deposit. Recent 2026 IP surveying has expanded this anomaly over an area of five square kilometres. This expanded anomaly now also encompasses the Creek zone, where shallow, 30-millivolt-per-volt chargeability anomalies are adjacent to higher-grade zones (characterized by drill hole intersections of greater than 0.4 gram per tonne gold) at White Pass, as high-priority expansion targets. The 2026 IP surveying has significantly enlarged these targets, opening additional prospective growth potential at the Brenda deposit.

Qualified persons

With respect to technical information provided by Amarc: Mark Rebagliati, PEng, a qualified person as defined by NI 43-101, has reviewed and approved all technical and scientific information related to the Joy project contained in this news release. Mr. Rebagliati is not independent of Amarc.

Gary Nordin, PGeo (British Columbia), director of Canasil, is the company's designated qualified person in accordance with NI 43-101 in relation to data provided with regard to exploration programs undertaken by the company.

About Canasil Resources Inc.

Canasil is a Canadian mineral exploration company with a strong portfolio of 100-per-cent-owned silver-gold-copper exploration projects in Mexico and British Columbia, Canada. The company's directors and management include industry professionals with a record of identifying and advancing successful mineral exploration projects through to discovery and further development.

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