News

Vancouver, Canada — Mawson Resources Limited (“Mawson”) or (the “Company”) (TSX:MAW) (Frankfurt:MXR) (PINKSHEETS: MWSNF) announces highly encouraging gold and cobalt assay results from 14 diamond holes drilled at the Raja prospect during the 2019 winter program at the Company’s 100% owned Rajapalot Project in northern Finland.

The drill program focused on expanding and defining gold-cobalt resources at Raja, Palokas and South Palokas and testing less drilled prospect areas outside resource areas including the Hut, Terry’s Hammer and Rumajärvi (Figure 1). Only results from the Raja prospect are provided here, with additional results to be reported on a prospect-by-prospect basis. Twenty-eight holes with full assays remain to be reported over the coming months.

A total of 44 holes (PAL0159–PAL0201D1) for 15,059 metres (two short holes abandoned, one wedged hole) have been completed during the winter season. The winter program was executed as proposed (see Mawson News Release 21 Jan 2019), with the planned drill metres achieved safely and without incident.

Mr. Hudson, Chairman and CEO, states, "The great drill result from Raja of 31.3 metres @ 6.0 g/t AuEq, demonstrates a linear control on the highest-grade parts of the Raja system, which will allow more accurate down plunge drill targeting beyond the extent of current high-grade gold-cobalt resources. We achieved the aims of our winter drill program by exceeding 15 kilometres in 44 holes. Assays from 28 drill holes remained to be reported, with visible gold noted in 4 of these holes. Importantly, the resolution of our drill permit allows us to plan well in advance for the next drill campaigns. Mawson continues to work closely with all Finnish mining and environmental authorities, as well as all local stakeholders, to ensure our work programs are implemented in a safe, efficient and environmentally friendly way as we drill to grow our gold-cobalt maiden resource.”

Results from 14 holes are reported here, with 10 holes reported with gold and cobalt assays (PAL0160, 164, 166, 169, 171, 172, 176, 188), one hole for gold assays only (PAL0189) and 4 holes for cobalt assays only (PAL0159, 161, 162 163, 165) (Tables 1-3). Only results from the Raja prospect are provided, with additional results to be reported on a prospect-by-prospect basis. Sulphidic (pyrrhotite-rich) intersections and visible gold provide encouraging signs in drill holes PAL0190, 191, 194 and 198 where assays are yet to be received. No significant assays were recorded in drill holes PAL0160 or PAL0165.

The 2019 drill program has revealed that gold-cobalt mineralization at Rajapalot is controlled by linear and upright fault systems within the complexly deformed and hydrothermally altered Paleoproterozoic metamorphic rocks. At Raja, drill hole PAL0188 intersected the mid-point between 120 metre spaced sections including PAL0093 (33.6 metres @ 9.7 g/t AuEq, 8.0 g/t gold, 823 ppm cobalt from 243.0 metres) and PAL0118 (20.7 metres @ 5.6 g/t AuEq, 3.6 g/t Au, 956 ppm Co from 365.2 metres) within the resource reported in December 2018. This hole establishes the linear control on the highest-grade parts of the Raja system, and allowed more accurate drill targeting down plunge external to the resource. The results of these down-plunge drill holes on the linear trend are pending, with some including visible gold (Table 1). PAL0188 intersected 31.3 metres @ 6.0 g/t gold equivalent (“AuEq”), 4.3 g/t gold (“Au”) and 1,030 ppm cobalt (“Co”) from 298.6 metres (no lower cut), including 17.4 metres @ 4.8 g/t AuEq, 2.9g/t Au and 1,113ppm Co from 298.3 metres and 9.0 metres @ 11.7 g/t AuEq, 9.4 g/t Au and 1,412ppm Co from 298.3 metres (Tables 1-3).

Drill hole PAL0164 was located 120 metres down plunge of the last drill section included in the resource and intersected 8.3 metres @ 1.3 g/t AuEq, 0.4 g/t Au and 519 ppm Co from 406.0 metres. The mineralized intersection in PAL0164 is inferred to be approximately 75 metres to the southwest of the linear high-grade gold trend intersected in PAL0188, and the last drill hole in this program, PAL0201D1, has been planned to target the high-grade trend on this section.

Drill hole PAL0159 intersected 18.0 metres @ 1.4 g/t AuEq, 0.5 g/t Au and 547 ppm Co from 419 metres (Figures 1-2), and 4.5 metres @ 3.2 g/t AuEq, 1.9 g/t Au and 754 ppm Co from 451 metres. This includes 4.0 metres @ 2.6 g/t AuEq, 0.3 g/t Au and 1,419 ppm Co from 422 metres, 3.0 metres @ 3.4 g/t AuEq, 2.3 g/t Au and 672 ppm Co from 434 metres and is a 142% increase on the earlier gold-only reported result of 3.0 metres @ 2.3 g/t gold from 434 metres (See release March 04, 2019). PAL0159 is 55 metres northeast of PAL0164 reported above in the same drill section.

The western limits of the mineralization in the drill section including holes PAL0159 and PAL0164 discussed above include the highest-grade cobalt intersection without gold drilled to date. PAL0163 included 1 metre @ 1.0% Co from 417.6 m, within an intersection of 2.9 metres @ 6,604 ppm Co from 416.6 metres. This indicates high-grade cobalt mineralization can also form peripheral to high grade Au-Co mineralization. This is 90 metres in the section from gold-cobalt mineralization intersected in PAL0159.

Drill hole PAL0176 intersected 11.4 metres @ 1.4 g/t AuEq, 0.8g/t Au and 382 ppm Co from 20.5 metres and 3.0 metres @ 4.0 g/t AuEq, 3.8g/t Au and 86 ppm Co from 49 metres. This hole was designed as a near-surface test of the uppermost mineralized horizon of the Raja resource.

Drill hole PAL0161 intersected 5.0 metres @ 3.3 g/t AuEq, 2.3 g/t Au and 600 ppm Co from 344 metres, a 42% increase in AuEq on earlier gold-only result of 4.0 metres @ 2.9 g/t gold from 345 metres. This hole was completed on the eastern limit drilled to date of the drill section including PAL0118 (See release April 10, 2018; 20.7 metres @ 5.6 g/t AuEq, 3.6 g/t Au, 956 ppm Co from 365.2 metres).

PAL0162, PAL0169 and PAL0172 were targeted to hit surface and downhole EM conductive plates between 300 to 380 metres down plunge from the last mineralized section in the resource. Although they hit minor gold-cobalt mineralization the main target is interpreted to be further east and has not been drilled tested. As such Raja remains open in the down plunge direction and further drilling is required (Figure 2).

Mawson’s permit enforcement has gained positive resolution, which allows Mawson to drill from 200 drill platforms (from 529 optional sites) plus 76 existing drill platforms within the 1,462 hectare Kairamaat 2-3 exploration permit area next drill season and likely for 3 years total (including this year’s 15,000 metre drill program). This is considered an extremely positive outcome.

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.

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 Rajapalot showing historic drilling, outline of 43-101 resource, new drill holes reported, modelled ground TEM plates over a background of 25 and 50 metre spaced ground magnetics

Figure 2: Long section at Raja prospect showing continuation of mineralized sequence below existing resource. Outlines of existing resource are also indicated. Note newly reported results in text boxes with bold and red outlines. Some of the more significant intersections from the last 3 years are also included.

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 stated in the text. No upper cut-off was applied.

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