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Canasil Defines Significant Porphyry Gold-Copper Target Zone On the Brenda Project for Further Drilling in 2005

January 21, 2005

The 2003 and 2004 diamond drill programs have outlined the eastern margins of a very large strongly altered gold-copper porphyry system over an area of 500 by 200 metres, confirmed by mineralized intersections observed in the zone lying between drill holes BR-04-12 to BR-04-14.  The central portion of the alteration system, intersected in drill holes BR-03-07 and BR–04-10, averages 0.41 to 0.56 g/t gold and 0.03 to 0.08 % copper over drill intervals of 166 metres to 243 metres, open to depth. (A map with the location drill holes completed to date is attached).

Significant sections of higher grade gold–copper are present within these large intercepts with values of 0.80 g/t gold and 0.09% copper over 18.4 metres and 0.77 g/t gold and 0.11% copper over 24.4 metres in BR-03-07, and 0.80 g/t gold over 20.5 metres and 0.89 g/t gold over 15 metres with low copper values in BR-04-10. (A table with significant historical gold-copper drill intercepts is attached.)

Drill holes BR-03-07 and BR-04-10 lie within a 300-metre wide porphyry gold–copper zone with approximately 0.50 g/t gold and low copper values, trending towards the northeast, along the south flank of a large area with high Induced Polarisation anomalies. The Induced Polarisation anomalies indicate that this zone continues up to 1,000 metres to the northeast, beyond the most easterly drill hole BR-04-13. The drill programs to date have only tested the western 400-metre portion of the porphyry system.

Drill hole DDH BR-04-14 (northern most hole on the trend) had high Au values (104.9 metres intersection with 0.399 g/t gold, including 23.6 metres with 0.755 g/t gold between 418.4 and 442 metres) with chloritic-magnetite prophylitic altered rocks at the bottom of the hole below 400 meters. DDH BR-02-02, located 1,000 metres to the northeast of BR-04-10 and BR-04-14, intersected carbonate-sericite-pyrite alteration with strong zinc mineralization (up to 3.9% zinc), and spotty gold and a quartz-sericite hydrothermal breccia, indicating it is on the edge of a large porphyry system.

There is excellent potential for discovering higher-grade gold-copper mineralization on the eastern 1,000 metre portion of the presently drilled area of the large Brenda porphyry system. There has been no previous drilling to test this area, and there is good potential for a hot spot somewhere along this trend. The Company plans to apply for a permit for further exploration and drilling during the 2005 exploration season to test this zone.

Gary Nordin, P. Geo., Director of Canasil, has reviewed the data and prepared the above recommendations. Jim Cuttle, P. Geo., Canasil’s senior project geologist, has compiled the data and prepared the attached map outlining the target zone.

About Canasil:

Canasil is a Canadian-based mining and mineral exploration company with interests in base and precious metal properties in British Columbia, Canada, and Durango State, Mexico. The Company is reviewing a number of other gold and silver properties in Mexico for acquisition. The management team is focused on identifying and implementing strategies to increase the value of the Company’s mineral properties through cost effective and responsible development.

For further information please contact:

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

Brenda Gold/Copper Project

Significant Historical Gold and Copper Intersections

Comparison with average grades at the South Kemess and North Kemess Deposits

Brenda Project – Gold-Copper Porphyry Target Zone

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