Canasil Resources Inc.
TSX VENTURE : CLZ

Canasil Resources Inc.

December 11, 2006 21:00 ET

Canasil Completes Acquisition of 100% Interest in Mezquital Silver-Zinc-Lead Claims in Durango State, Mexico, From Oremex

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 11, 2006) - Oremex Resources Inc. (Oremex) (TSX VENTURE:ORM), Minera Montana S. de R.L. de C.V. (Minera Montana), Canasil Resources Inc. (Canasil) (TSX VENTURE:CLZ) and its wholly owned subsidiary Minera Canasil S.A. de C.V. (Minera Canasil) are pleased to announce completion of the final agreement and transfer of claim titles for 100% interest in the Mezquital silver-zinc-lead claims from Minera Montana to Minera Canasil.

The Mezquital silver-lead-zinc claims consist of 3 claim blocks (Los Tajos, Maria Elena and El Patrocinio) covering 161.48 hectares (399 acres) situated in the municipality of Mezquital in Durango State, Mexico. These claims are located within the boundaries of Canasil and Minera Canasil's Colibri project area. Historical records and a summary report prepared for Oremex by Dr. Peter A. Christopher, P. Eng., in April 2003, report a number of mineralized veins on the Mezquital claims. Rock chip and channel sampling by CRM (Consejo de Recursos Minerales - the Mexican Government Mineral and Geological Research Council) were reported to range from 102 g/t to 247 g/t silver, 0.5% to 11.79% zinc, and 2% to 8% lead for the 5 structures observed on the Mezquital claims (CRM, 1993). After completion of this agreement and transfer of the claims, the Colibri project area will increase from 6,413 ha (15,846 acres) to 6,574 ha (16,245 acres).

Canasil will issue to Oremex 650,000 common shares of Canasil and 75,000 share purchase warrants, upon approval of the agreement by the TSX Venture Exchange, as full payment for 100% interest in the Mezquital claims. Each warrant will entitle Oremex to acquire one common share of Canasil at a price of $0.50 within 12 months of regulatory approval.

Canasil is starting the phase 1 drill program at the Colibri project, planned for 10 - 12 diamond drill holes for a total of 1,200 metres. Geological mapping and surface sampling at the Colibri project has identified a silver-zinc-lead mineralized structure along a strike distance of over 1,300 metres with widths of up to 50 metres. This structure hosts mineralized veins with grades up to 239 g/t silver, 12% zinc and 6.98% lead over 0.90 metres, as well as disseminated mineralization with grades of 20.4 g/t silver, 2.22% zinc and 0.85% lead over 29.6 metres. The structure extends in a NE to SW direction toward the Los Tajos claims, which have been acquired through this agreement, indicating a potential strike length of over 2.0 kilometres.

Bahman Yamini, President & CEO of Canasil commented: "We are very pleased with the cooperation with Oremex and completion of the acquisition of the Mezquital claims. These claims complete the large Colibri property package, and the potential for the future development of this extensive silver-zinc-lead exploration project. We take this opportunity to welcome Oremex as a significant shareholder of Canasil and look forward to our continued cooperation".

Canasil's 100% owned Colibri project is located 70 km south-southeast of the City of Durango, and has excellent road access and good local infrastructure for supporting exploration and mining operations. The Colibri project 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. A map showing the location of the Colibri project, as well as Canasil's other exploration projects in Mexico and nearby mines and mineral deposits is attached below.

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 mineral properties and evaluating additional acquisition opportunities.

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. 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. Investors are cautioned that any such statements are not guarantees of future performance. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made.

To view the map accompanying this press release please click on the following link: http://www.ccnmatthews.com/docs/clz1211.jpg


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