Scotland trailed 6-3 entering the final two ends but skip Tom Brewster won those ends by two and one stones respectively to extend the match.
It was Canada who took the 11th end, however, securing a place in the gold medal match for Glenn Howard's team.
Scotland will still have a chance of making it to the gold medal match, with Brewster and his team going up against Sweden, who won the three v four play-off against Norway.
The winner of the Scotland v Sweden match will play Canada in the final, while the loser will play Norway in the bronze medal match.
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