Canasia to acquire interest in 26,653 hectares in Reed Lake, Manitoba

    Trading Symbols:

    CAJ - Canada
    45C - Germany

    VANCOUVER, Oct. 15 /CNW/ - Canasia Industries Corporation (the "Company")
wishes to announce that it has entered into a Letter of Intent for the
acquisition of the Reed Lake claims in Manitoba.
    The claims are known as mineral exploration license 331A "MEL 331A",
which comprise in excess of 26,653 ha. To view a map of the claims go to
    The Vendors have agreed to collectively sell 50% of their interest in
MEL 331A to the Company. The purchase price is $225,000 cash with each of the
vendors, for a total purchase price of $450,000 plus reimbursement of one half
of staking costs. The Company is acquiring a 50% interest in the property
subject to a 2% NSR granted in favour of the Vendors, of which 1% can be
purchased at any time for $1,000,000 with the Company's share being $500,000.
    This 26,653 hectare property is contiguous to the south of VMS Ventures
Inc.'s property which on October 4, 2007, announced assays of 2.50 metres
(8.2 feet) of 15.30% copper, within 10.50 metres (34.4 feet) of 11.19% copper,
within 22.25 metres (72.9 feet) of 7.75% copper, within 43.05 metres
(141.2 feet) of 4.38% copper.
    The Reed Lake volcanogenic massive sulphide (VMS) mineralized zone is
overlain by distinctive layers of magnetite and chert. The rocks that underlie
and contain the sulphide are moderately to intensely altered felsic volcanic
rocks. The Reed Lake mineralization is typical of other VMS deposits including
those in the prolific Snow Lake camp and the nearby Spruce Point mine,
formerly operated by HudBay Minerals.
    Graeme Sewell, a director of the Company stated, "This is a major step
forward for Canasia. Making an acquisition of this significant acreage
contiguous to a potential new discovery is extremely positive for Canasia's
management and shareholders. The plan is to initiate a full scale program as
soon as possible. When you couple this new acquisition with our ongoing
activities on Canasia's other gold prospects, it is clearly an exciting period
of corporate growth for Canasia in the short and long term."
    The Company is proposing, as part of the acquisition, a non-brokered
private placement for 1,846,154 units at $0.325 per unit; each unit will
consist of one share and one share purchase warrant subject to exchange
approval. Each two share purchase warrants will entitle the holder to purchase
one additional share at an exercise price of $0.49 for a period of one year
from closing. A finders fee may be payable on the private placement and the
    This agreement and the finders' fees on the financing and acquisition are
subject to the approval of the TSX-V Exchange.
    If you would like to be added to Canasia's news distribution list, please
send your email address to

    "Graeme Sewell"
    Canasia Industries Corporation

    Disclaimer for Forward-Looking Information

    Certain statements in this release are forward-looking statements, which
reflect the expectations of management regarding the Company's ability to
close the Purchase and Sale Agreement. Forward-looking statements consist of
statements that are not purely historical, including any statements regarding
beliefs, plans, expectations or intentions regarding the future. Such
statements are subject to risks and uncertainties that may cause actual
results, performance or developments to differ materially from those contained
in the statements. No assurance can be given that any of the events
anticipated by the forward-looking statements will occur or, if they do occur,
what benefits the Company will obtain from them. These forward-looking
statements reflect management's current views and are based on certain
expectations, estimates and assumptions which may prove to be incorrect. A
number of risks and uncertainties could cause our actual results to differ
materially from those expressed or implied by the forward-looking statements,
including: (1) a downturn in general economic conditions in North America and
internationally, (2) the inherent uncertainties and speculative nature
associated with mineral exploration, (3) a decreased demand for minerals,
(4) any number of events or causes which may delay or cease exploration and
development of the Company's property interests, such as environmental
liabilities, weather, mechanical failures, safety concerns and labour
problems; (5) the risk that the Company does not execute its business plan,
(6) inability to retain key employees, (7) inability to finance operations and
growth, (8) inability to obtain all necessary environmental and regulatory
approvals, (9) an increase in the number of competitors with larger resources,
(10) other factors beyond the Company's control; and (11) the failure of the
Letter of Intent to close for any reason. These forward-looking statements are
made as of the date of this news release and the Company assumes no obligation
to update these forward-looking statements, or to update the reasons why
actual results differed from those projected in the forward-looking
statements. Additional information about these and other assumptions, risks
and uncertainties are set out in the "Risks and Uncertainties" section in the
Company's MD&A filed with Canadian security regulators.

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

For further information:

For further information: Tel: (778) 328-8848, Fax: (604) 689-1733,,

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