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Canasil Identifies Potential for Large Scale Silver, Zinc, Copper Mineralization at the Salamandra Project in Durango State, Mexico

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/05/12 -- Canasil Resources Inc. (Canasil) (TSX VENTURE:CLZ)(FRANKFURT:3CC) announces that the exploration program at the Salamandra silver-zinc-copper project in Durango State, Mexico, continues to indicate the potential for a buried intrusive and carbonate hosted massive sulphide skarn/manto replacement system. Significant silver-zinc intercepts from prior drilling, results of both airborne and surface geophysical surveys, discovery of a high grade silver-copper-zinc vein outcrop, and widespread silver-copper-lead-zinc-arsenic-antimony geochemical anomalies observed in the 2011/2012 surface sampling programs indicate the potential for a large silver-zinc-copper mineralized system at the Salamandra project. The project geology and results from the exploration program to date show similarities to the San Martin mine located 80 km to the southeast of the project area, which is one of the largest silver - base metal mines in Mexico. A plan view of the project showing the previous 3D-IP geophysical and ZTEM airborne survey areas, past drill program and areas of surface geochemical anomalies is attached below, together with a conceptual section model of the potential mineralized system for reference.

In late 2011 and 2012 Canasil completed comprehensive surface sampling and mapping programs, covering an area of 3.5 km by 4.5 km, which included the collection of 949 samples (829 soil samples, 76 rock samples and 44 chip samples) covering a 2.5 km by 3.5 km area outlined by the 2011 ZTEM airborne geophysical anomaly, as well as areas surrounding the main rhyolite dome structure associated with an intrusive center in the project area. The sample results show widespread silver-copper-antimony-arsenic anomalies with peripheral lead and zinc anomalies over a very large area. Together with significant silver-zinc intercepts reported from earlier drilling to the southwest of the rhyolite dome, and the high grade silver-copper-zinc vein outcrop to the southeast of the dome structure, these geochemical anomalies are interpreted to be related to a buried intrusive and carbonate hosted massive sulphide skarn/manto replacement system under thin alluvial cover below and surrounding the rhyolite flow dome.

A 3-Dimensional Induced Polarization geophysical survey, completed in 2006 over an area of 2 km x 1.2 km to the southwest of the rhyolite dome structure, indicated significant chargeability anomalies in this area. These targets were tested by a 12-hole 3,500 metre diamond drill program in 2007, which returned very encouraging results with numerous silver-zinc intercepts, including 7.45 metres of 50 g/t silver and 12% zinc and 10 metres of 71 g/t silver, 3.48% zinc and 1.26% lead (as previously reported). This mineralization is associated with skarn, hydrothermal breccias, sulphide rich veins and quartz porphyry dykes. In 2011 the ZTEM airborne geophysical survey outlined a much larger complex response area of 2.5 km by 3.5 km located to the east of the dome structure indicating a potentially much larger mineralized system. Detailed surface sampling over the project area then discovered both the high grade vein outcrop, carrying 2,150 g/t silver, 5.39% copper, and 1.89% zinc over 0.90 metres (as previously reported), and extensive areas of silver-copper-arsenic-antimony anomalies, which further confirm the potential for a very large silver-zinc-copper mineralized system.

This potentially large mineralized system presents multiple drill targets for further exploration. A surface IP geophysical survey over the eastern zone defined by the airborne ZTEM survey and recent geochemical sampling is planned to better define high priority drill targets.

Salamandra Project:

The Salamandra project is located 35 kilometres to the northeast of the City of Durango and covers 14,719 hectares, over 140 square kilometres. This large claim area is strategically located within the major silver-gold trend running through Durango and Zacatecas States, and is directly on trend with a number of important operating mines and recent discoveries. The project benefits from excellent access and infrastructure for mineral exploration and development. Prior geophysics and diamond drilling completed by Canasil identified significant zinc-silver mineralization at Salamandra, with preliminary metallurgical tests showing high zinc and silver recoveries to clean concentrates. The project is located on the mineral-rich Fresnillo geologic trend, approximately 80 km northwest of the San Martin mine of Grupo Mexico, which is the largest underground zinc-copper-silver mining operation in Mexico, producing at approximately 6,000 tonnes per day.

The surface sampling and geological mapping program was supervised and carried out by the Company's wholly owned Mexican subsidiary, Minera Canasil S.A. de C.V., under the direction of Erme Enriquez CPG, Director of Exploration and Development. Samples were sent to ALS Chemex Laboratories in Zacatecas, ZA Mexico, for preparation and on to ALS Chemex in North Vancouver, B.C. Canada for assay analysis for gold and silver by fire assay with an atomic absorption finish ("FA-AA") on a 30-gram split, and for copper, lead and zinc by digestion of 1.00 gram sample in aqua regia and analysis by AA. Gary Nordin, P. Geo. British Columbia and Director of Canasil, is the designated Qualified Person for this project in accordance with National Instrument 43-101.

About Canasil:

Canasil is a Canadian mineral exploration company with interests in precious and base metal projects in Durango, Sinaloa and Zacatecas States, Mexico, and in British Columbia, Canada. The Company's directors and management include industry professionals with a track record of identifying and advancing successful mineral exploration projects. The Company is actively engaged in the exploration of its mineral properties.

To view the first figure associated with this release, please visit the following link: http://media3.marketwire.com/docs/clzfig1.pdf

To view the second figure associated with this release, please visit the following link: http://media3.marketwire.com/docs/clzfig2.pdf

To view the third figure associated with this release, please visit the following link: http://media3.marketwire.com/docs/clzfig3.pdf

Neither the TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contacts:
Canasil Resources Inc.
Bahman Yamini
President and C.E.O.
(604) 709-0109
www.canasil.com

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