190628 NR Sandra-Escobar Pan American Closing Final

Vancouver, June 28, 2019 – 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 the definitive agreement providing for Pan American to acquire Canasil’s interest in the Sandra-Escobar project in Durango, Mexico
(the “Definitive Agreement”), and closed the transaction for a payment of CDN $2 million and grant of a 2% net smelter returns royalty interest on Pan American’s interest in the project (“NSR Royalty Interest”). Pan American retains the right to reduce the NSR Royalty Interest to 1% at any time by paying the Company
CDN $4 million. The Definitive Agreement supersedes all prior agreements and arrangements between Canasil and Pan American with respect to the Sandra-Escobar project.