Canasil Signs Letter of Intent Providing for Pan American to Acquire Canasil’s Interest in the Sandra-Escobar Project for CDN $2 Million and 2% NSR

Canasil_24102018

Vancouver, October 24, 2018 – Canasil Resources Inc. (TSX-V: CLZ, DB Frankfurt: 3CC, “Canasil” or the “Company”) announces that the Company and Pan American Silver Corp. (TSX: PAAS, NASDAQ: PAAS), through its subsidiary Plata Panamericana SA de CV (“Pan American”), have signed a non-binding Letter of Intent (“LOI”) providing for Pan American to acquire Canasil’s interest in the Sandra-Escobar project in Durango, Mexico. The LOI provides for the parties to enter into a Definitive Agreement covering the acquisition of Canasil’s interest by Pan American for a payment of CDN $2 million and grant of a 2% net smelter returns royalty on Pan American’s interest in the project (“NSR Royalty”). Pan American will have the right to reduce the NSR Royalty to 1% at any time by paying the Company CDN $4 million. The parties anticipate completing the Definitive Agreement by the end of November 2018. The Definitive Agreement will supersede all prior agreements and arrangements between Canasil and Pan American with respect to the Sandra-Escobar project.

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