News

Vancouver, Canada — Mawson Resources Limited (“Mawson”) or (the “Company”) (TSX:MAW) (Frankfurt:MXR) (PINKSHEETS: MWSNF) announces gold-cobalt drill results from 2 holes at the Palokas prospect from the Company’s 100% owned Rajapalot Project in northern Finland. Fourteen holes with full assays remain to be reported from the 44 drill hole winter program.

In one of the most significant advances made at the Rajapalot gold-cobalt project this year, drill hole PAL0194 intersected 15.2 metres @ 8.5 g/t gold equivalent (“AuEq”), 4.3 g/t gold (“Au”) and 2,566 ppm cobalt (“Co”) from 418.7 metres (Figures 1-4) and was drilled 275 metres down-plunge from the high-grade gold-cobalt mineralization previously announced at Palokas. The intersection, in which both visible gold and cobaltite were noted in the core, is located approximately 425 metres down plunge from the surface whereas the nearest previous high-grade drill hole (PAL0030 (10.0 metres @ 10.8 g/t AuEq, 9.9 g/t Au and 562 ppm Co from 110.2 metres) is located about 150 metres down plunge from surface. The results from this hole effectively triple the potential high-grade gold-cobalt mineralization trend at Palokas and it remains open at depth and to the north. This result shows the strong potential to significantly increase the known resources at Palokas.

Also noteworthy is the high cobalt content in PAL0194 compared to other holes on the property. The highest-grade interval in PAL0194 assayed 1 metre @ 23.6 g/t Au and 1.5% Co (47.7 g/t AuEq). The Rajapalot project is a significant and strategic gold-cobalt resource for Finland with the maiden resource positioned as one of Finland's current top three gold resources by grade and contained ounces and one of a small group of cobalt resources prepared in accordance with NI 43-101 policy within Europe.

Mr. Michael Hudson, Chairman and CEO states: “The 2019 drill program is now delivering across multiple prospects. This is an extremely strong result, tripling Palokas’ high grade potential with PAL0194 intersecting 15.2 metres @ 8.5 g/t AuEq from a 275 metre step out below high-grade mineralization. The targeting of such broad step-outs is a credit to our technical team, and was developed using careful analysis of the Au-Co grade distribution combined with geophysical conductors, highlighting the importance of the knowledge gained during the last two drill campaigns across the Rajapalot project area. The Palokas high-grade zone remains open up and down-plunge of PAL0194 and to the north of the conductive trend.”

PAL0194 validates the Company’s drill targeting methodology and confirms the significant linear down-plunge extensions to Palokas interpreted from the modelled ground-based electromagnetic (“TEM”) conductors. PAL0194 effectively triples the potential for high-grade mineralization at Palokas with the mineralized shoot, open up and down plunge, and also to the north where the limits of the conductive body have not been tested. Other high-grade intersections within the Palokas shoot include PRAJ0009 (30.8 metres @ 7.9 g/t AuEq, 7.1 g/t Au and 525 ppm Co from 2.5 metres) and PAL0027 (21.3 metres @ 6.2 g/t AuEq, 5.4 g/t Au and 482 ppm Co from 27.5 metres).

Further drilling on the linear high grade trend at Palokas is required, but the similarities to the linear trend at Raja prospect, located 1.4 kilometres SSE of the Palokas prospect, are immediately evident. Drilling on fans across the plunge of the Au-Co mineralization at Raja prospect has been the key to successfully targeting high-grade Au-Co mineralization.

Mawson completed 44 holes (PAL0159–PAL0201D1) for 15,059 metres (two short holes abandoned, one wedged hole) during the 2019 winter drill season. Results from 2 holes from Palokas prospect are provided here (PAL0194, 200, Tables 1-4). Fourteen holes with full assays remain to be reported that were predominantly drilled down plunge from resource areas including PAL0191 (Raja) and PAL0198 (South Palokas), where sulphidic (pyrrhotite-rich) intersections with visible gold provide encouragement.

The Palokas mineralization contains abundant pyrrhotite in a magnesium and iron-rich silicate matrix. The gold occurs as free grains, most commonly on the margins of sulphides and the high cobalt zones are dominated by the mineral cobaltite. The pyrrhotite is well connected to create a strong conductor, in the order of 6 times that measured at Raja prospect. The ground-based model TEM plate extends over 650 metres down plunge and is only terminated by the position of the ground loop layout. Signs of proximity to mineralization (“near hit”) in drill core include reduced sulphidic rocks and iron-magnesium-rich silicate minerals. The next deeper hole (PAL0200) reported here did not hit the desired target and is regarded as a “near-hit” where highly altered and sulphidic (up to 2 wt % S) rocks contained 1.0 metre @ 0.6 g/t AuEq, 0.1 g/t Au & 298 ppm Co from 466.4 metres. Drilling to the north of this location on the high-grade trend is required. The Palokas and South Palokas prospects appear to anastomose at depth and are now less than 350 metres apart horizontally.

Mawson will continue to release results from the 2019 drill program as assay data become available.

Technical and Environmental Background
The gold equivalent ("AuEq") value used in the resource and this press release was calculated using the following formula: AuEq g/t = Au g/t + (Co ppm/608) with assumed prices of Co $30/lb; and Au $1,250/oz. AuEq varies with gold and cobalt prices. A long-term price point has been chosen for both commodities to maintain consistency of reporting individual drill holes against the resource dated December 2018. Approximate spot prices for gold and cobalt are currently $1280/oz and $16/lb respectively.

Assuming a predominant stratabound control, the true thickness of the mineralized interval is interpreted to be approximately 90% of the sampled thickness. Quality control duplicates for all holes show good repeatability of gold assays. Intersections are reported with a lower-cut of 0.5g/t gold or 304ppm Co over 2 metre lower cut, except where indicated. No upper cut-off was applied.

Four diamond drill rigs (K3 & K8) from the Arctic Drilling Company OY (“ADC”), Kati OY (“Kati”) and MK Core Drilling OY (“MK”), all with water recirculation and drill cuttings collection systems were used for the drill program. Core diameter is NQ2 (50.7 mm). Core recoveries were excellent and average close to 100% in fresh rock. After photographing and logging in Mawson’s Rovaniemi facilities, core intervals averaging 1 metre for mineralized samples and 2 metres for barren samples were cut in half at the Geological Survey of Finland (GTK) core facilities in Rovaniemi, Finland. The remaining half core is retained for verification and reference purposes. Analytical samples were transported by Mawson personnel or commercial transport from site to the CRS Minlab Oy facility in Kempele, Finland. Samples were prepared and analyzed for gold using the PAL1000 technique which involves grinding the sample in steel pots with abrasive media in the presence of cyanide, followed by measuring the gold in solution with flame AAS equipment. Multi-element assays, including cobalt are determined using the ICP-MS method (IMS-230) of MS Analytical shipped directly from the CRS Minlab Oy facility. The QA/QC program of Mawson consists of the systematic insertion of certified standards of known gold content, duplicate samples by quartering the core, and blanks the within interpreted mineralized rock. In addition, CRS and MS Analytical insert blanks and standards into the analytical process. The qualified person for Mawson's Finnish projects, Dr. Nick Cook, President for Mawson and a Fellow of the Australasian Institute of Mining Metallurgy has reviewed and verified the contents of this release.

NI 43-101 Technical Report

On December 19, 2018, Mawson filed an independent National Instrument 43-101 Technical Report (the “NI 43-101 Technical Report”) on the Mineral Resource Estimate for the Raja and Palokas Prospects, at the 100% owned Rajapalot Project in Finland, (the “NI 43-101 Technical Report”), in support of the Company’s news release dated December 17, 2018. The NI 43-101 Technical Report was authorized by Mr. Rod Webster of AMC Consultants Pty Ltd (“AMC”) of Melbourne, Australia, and Dr. Kurt Simon Forrester of Arn Perspective of Surrey, England. Each of Mr. Webster and Dr. Forrester are independent “qualified persons” as defined by National Instrument 43-101. The NI 43-101 Technical Report may be found on the Company’s website at www.mawsonresources.com or under the Company’s profile on SEDAR at www.sedar.com.

About Mawson Resources Limited (TSX:MAW, FRANKFURT:MXR, PINKSHEETS:MWSNF)

Mawson Resources Limited is a sustainable and ethical exploration and development company. Mawson has distinguished itself as a leading Nordic Arctic exploration company with a focus on the flagship Rajapalot gold-cobalt project in Finland, a significant and strategic gold-cobalt resource for Finland with the maiden resource positioned as one of Finland's current top three gold resources by grade and contained ounces and one of a small group of cobalt resources prepared in accordance with NI 43-101 policy within Europe.

Forward-Looking Statement

This news release contains forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, "forward-looking statements"). All statements herein, other than statements of historical fact, are forward-looking statements. Although Mawson believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate, and similar expressions, or are those, which, by their nature, refer to future events. Mawson cautions investors that any forward-looking statements are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, capital and other costs varying significantly from estimates, changes in world metal markets, changes in equity markets, planned drill programs and results varying from expectations, delays in obtaining results, equipment failure, unexpected geological conditions, local community relations, dealings with non-governmental organizations, delays in operations due to permit grants, environmental and safety risks, and other risks and uncertainties disclosed under the heading "Risk Factors" in Mawson's most recent Annual Information Form filed on www.sedar.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Mawson disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

Figure 1: Plan of Palokas prospect area indicating drill results, the outline of 43-101 resource (blocks above 2 g/t AuEq), modelled ground TEM plates over a Lidar background. For more detailed location information, refer to press release of April 23, 2019. Note that Figure 3 is essentially a view down onto the plane of the northwest dipping TEM conductors.

Figure 2: Longitudinal section at Palokas prospect showing the considerable area (hatched pattern) to be tested with future drill programs. The view is towards 063 degrees. The blocks from within existing resources are shown along with the modelled TEM plates. See Figure 1 for plan view location of the section.

Figure 3: Contoured projection of grade-width intersections in gold equivalent terms made onto a northwesterly dipping plane (i.e. the view is looking down on an angle (60 degrees) from the northwest towards the southeast). Note the large hatched area in this projection showing the area to the north (left) and down plunge to the NW with just a single drill hole. The TEM conductors have been removed for simplicity, but lie within the surface of this image.

Table 1: Collar Information from 2019 Winter drilling at the Rajapalot Project (Finnish Grid, Projection KKJ3)

Table 2: Better intersections report from the 2019 Winter Drill Program.
Intersections are reported with a lower cut of 0.5g/t gold over 2 metre lower cut except where highlighted with **. No upper cut-off was applied.

Table 3: Individual assay data from key drill holes reported in this release.

Table 4: Compilation of Palokas intersections greater than 25 g/t * metres (AuEq)