Canasil summarizes project portfolios in B.C., Mexico

Executive Summary

• Canasil Resources Inc. disclosed the terms of a five‑year option agreement with Amarc Resources Ltd. that could transfer 100 % ownership of its Brenda gold‑copper‑silver property in British Columbia for up to $12 million plus annual cash payments.
• The company retains a 2 % net smelter return (NSR) royalty on the Brenda property, with an option for Amarc (or a third party) to purchase half of that royalty for $5 million pre‑production or $10 million post‑production.
• Canasil sold its interests in two Mexican projects (Sandra and Nora) while retaining NSR royalties; it continues to hold 100 % interest in the remaining five silver‑gold projects, which have historic high‑grade drill intercepts.

Key Details

• Option Agreement – Brenda Property (BC, Canada)
• Annual cash option payments: $400,000 each year (already paid for Year 1) – total $2 million over four years.
• Exercise price: $8 million if exercised in Year 1; escalates to $12 million by Year 5.
• Payments are not credited toward the exercise price.
• Canasil retains a 2 % NSR royalty; 1 % of this royalty can be bought out for $5 million before commercial mining or $10 million after commencement of mining.

• Amarc must fund at least one year of exploration expenditures on the property each option year.

• Relationship to Freeport‑Amarc Joy District

• Brenda lies adjacent to Amarc’s Aurora discovery within the Joy district.
• On July 16 2025, Freeport elected to include the entire Brenda tenure in the Joy earn‑in agreement.

• On Sept. 4 2025, Freeport moved to Stage 2 of the Joy earn‑in, planning an additional $75 million spend over five years (minimum $10 million per year) to increase its stake from 60 % to 70 %.

• Mexican Silver‑Gold Portfolio

• Projects located in Durango and Zacatecas along the historic Mexico silver belt.
• Sold interests: Sandra (to Pan American Silver) and Nora (to Silver Dollar Resources).
  • Retained NSR royalties: 2 % each; buyout options – 1 % for $4 million (Sandra) and $1 million (Nora).

• Remaining projects (La Esperanza, Salamandra, Colibri, plus two others) are 100 % owned by Canasil with historic high‑grade drill results.

• Strategic Outlook

• Positive shift in Mexican mining policy environment expected to boost exploration activity and project economics.
• Strong precious metals market conditions provide a favorable backdrop for advancing both the Canadian and Mexican assets.

Notable Quotes

(No direct quotes were provided in the release.)