Silver Grail Resources

Press Release

August 25, 2006

Drilling Begins On Clone Property

Canasia Industries Corporation ("CAJ.H:TSX-V") (Canasia), Silver Grail Resources Corp. ("SVG:TSX-V") ("Silver Grail") and Teuton Resources Corp. ("TUO:TSX-V") ("Teuton") are pleased to announce that drilling is under way on the Clone gold-cobalt property, situated 12 miles southeast of Stewart, British Columbia.

The initial phase of drilling will test several gold-bearing sub-parallel shears in the Main Zone, northwest along strike of a hole drilled in 2003 that contained a 27.8 foot intercept grading 2.357 oz/ton gold (see Silver Grail and Teuton News Release dated Dec. 9, 2003). Results from a detailed structural study of the Main Zone completed in 1998, which defined a gentle, northerly plunging orientation to gold-bearing shoots within the shears, have been incorporated in the design of the 2006 program. E. R. Kruchkowski, P. Geol., who supervised the $3 million program on the Clone from 1995-8, recently visited the property to site drill collar locations and supervise pad construction.

The Clone property is jointly owned by Silver Grail and Teuton. Canasia holds the property under an option agreement with Silver Grail-Teuton whereby it can earn a 50% interest by expending $1.5 million over 5 years.

 "Dave Derby", President "D.Cremonese, P.Eng.", President

Canasia Industries Corporation Teuton Resources Corp

Silver Grail Resources Corp.

The foregoing securities have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation or sale would be unlawful.

This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management’s objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. Silver Grail Resource Ltd. And Teuton Resources Corp. do have an ongoing obligation to disclose material information, as it becomes available.

The TSX Venture Exchange has neither approved nor disapproved the information contained herein.

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