Canasil Reports on MAG Silver Update on La Esperanza Silver Project ZTEM Airborne Geophysics and Surface Work Define High Priority Drill Targets
August 10, 2011

Vancouver, August 10 2011 – Canasil Resources Inc. (Canasil, TSX-V: CLZ, DB Frankfurt: 3CC) is pleased to report on an update recently received from MAG Silver Corp. (MAG, TSX: MAG, NYSE.A: MVG) on exploration work completed on the La Esperanza silver-lead-zinc project in Durango and Zacatecas States, Mexico.  MAG is earning a 60% interest in the property from Canasil under an option agreement dated August 19, 2010. Expenditures on the project reported by MAG up to March 31, 2011, were $500,646.

In October 2010 a 1,330 line-kilometre ZTEM Airborne Geophysical survey was completed on behalf of MAG covering over 250 square kilometers over the La Esperanza area which was successful in highlighting several geophysical anomalies associated with known mineralization and significant geological features.

MAG also conducted geological mapping and surface rock and stream sediment sampling focused on four known vein systems that have been traced over variable strike lengths ranging from 300 metres to over 1.9 kilometres. In anticipation of the 2011 diamond drill program MAG has also completed upgrades to over 30 kilometres of access roads within the project area.

Correlation of the structural features highlighted by the ZTEM survey and the aero-magnetic signature, coupled with the mineralized veins and structural lineaments outlined by the mapping and sampling and previous drilling by Canasil, has defined a number of high priority drill targets. MAG is currently evaluating the logistics for starting a drill program to test these targets within the next 4 – 6 weeks.

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