News Releases

Vancouver, July 13, 2006 - Canasil Resources Inc. (Canasil, TSXV: CLZ) is pleased to announce that the surface sampling program at the Colibri project in Durango State, Mexico, has now extended the Los Angeles silver-zinc-lead mineralized structure, initially reported on April 12, 2006, to over 1,300 metres of strike length, with widths of up to 50 metres. This structure is located in the northern sector of the Colibri project area, extending from the northeast to southwest towards additional silver-zinc-lead mineralized veins and structures, located approximately 1 km to the southwest. The style and extent of the multiple mineralized structures indicate the possibility of a large silver-zinc-lead system.

The surface sampling and mapping program on the Los Angeles structure now includes a total of 455 channel samples. The three mineralized zones identified by the sampling program are shown on the attached map. The northeastern zone has a strike length of 550 metres, and drops in elevation in the northeast towards a creek that cuts through the structure. This area hosts a shear zone, with mineralized fractures and several quartz-barite veins. The best samples from this zone assayed up to 343 g/t silver, 12% zinc, 3.73% copper and 6.98% lead over widths of 0.90 to 1.30 metres (samples 1257 and 1310). The highest values came from samples from the deeper exposures of the vein structure, where higher grade mineralization is exposed.

Towards the southwest the topography rises in elevation resulting in lower average grades. The central zone has a strike length of approximately 450 metres, where the structure splits into two veins with widths between 1.00 and 2.40 metres. The best grades in this zone assay up to 124 g/t silver, 2.75% zinc and 3.36% lead over widths of 0.90 to 1.30 metres (samples 1551 and 1564). The third southwest zone consists of narrower veins and veinlets, with surface widths varying between 0.50 and 1.00 metres, over a strike length of 300 metres. These veins are arranged in the form of a horsetail structure, with a cumulative width of up to 50 metres. The best grades from samples in this structure assayed up to 241 g/t silver, 21.6% zinc, and 1.69% lead over widths of 0.60 to 0.90 metres (samples 1656 and 1659).  

The multiple continuous veins and mineralized zones observed in the Los Angeles structure present a significant silver-zinc-lead target with a strike length of 1,300 metres and widths of up to 50 metres, that is now ready for drill testing. This structure has the potential for hosting high-grade vein type, as well as disseminated, silver-zinc-lead mineralization both close to the surface and at depth.   

The sampling program was supervised and carried out by the Company's wholly owned Mexican subsidiary, Minera Canasil S.A. de C.V. Samples were prepared on site and shipped to the ALS Chemex laboratories in Hermosillo, Mexico, for preparation and on to the ALS Chemex laboratories in Vancouver for analysis by AU-AA23 package for gold and ME ICP-41 for silver and 40 multiple elements. All samples above detection limits were analyzed by the high-grade package AA-46. Gary Nordin, P.Geo. British Columbia and Director of Canasil, is the qualified person for this project in accordance with National Instrument 43-101.

The 100% owned Colibri project covers an area of 6,413 hectares (15,846 acres), located 70 km south-southeast of the City of Durango. The Company recently entered into an agreement with Oremex Resources Inc. to acquire 3 claim blocks within the Colibri project area, which will increase the project area to 6,574 hectares (16,245 acres). The project area has excellent road access and good local infrastructure for supporting exploration and mining operations, and is located within 75 km of the San Martin mine of Grupo Mexico, the La Colorada mine of Pan American Silver Corp., and the La Parrilla mine of First Majestic Resource Corp.  

About Canasil:

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

For further information please contact:

Mr. Bahman Yamini
President and C.E.O.
Canasil Resources Inc.
604-709-0109 www.canasil.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release

This news release contains certain statements that may be deemed “forward-looking statements”.  All statements in this release, other than statements of historical fact, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects to occur, are forward looking statements.  Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans” “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur.  Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed.  Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements.  Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made.  The Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.

 Selected Results from Surface Channel Sampling Program April - June 2006