Canasil Resources Inc.
TSX VENTURE : CLZ

Canasil Resources Inc.

June 06, 2006 20:52 ET

Canasil Receives Final Approval for $825,750 Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 6, 2006) - Canasil Resources Inc. ("Canasil") (TSX VENTURE:CLZ) announces that the TSX Venture Exchange has accepted for filing documentation with respect to a Non-Brokered Private Placement of 3,303,000 units at $0.25 per unit for total proceeds of $825,750, as announced on April 20, 2006 and April 28, 2006. The proceeds will be used to fund the Company's continued exploration programs and for working capital.

The Company has received subscriptions with payments, or guarantees of payment from the subscribers' brokers, in the amount of $750,750 for 3,003,000 units originally reserved on April 28, 2006. Due to the high demand for subscriptions in this placement, the Company requested Exchange approval for an additional 300,000 units. The Exchange has approved the additional units and the Company expects to receive these subscriptions without delay in order to proceed to final closing of the placement.

Each unit will consist of one common share of the Company and one share purchase warrant (a "Warrant"); each Warrant will entitle the holder to purchase one common share of the Company at $0.35 within one year from closing. If, beginning six months following the closing of the private placement, the closing price of the Company's shares equals or exceeds $0.75 per share for a period of ten consecutive trading days, the Company will have the right to accelerate the expiry date of the Warrants by giving the Warrant-holders at least 30 days' written notice.

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 evaluating additional acquisition opportunities.

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

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