News

Vancouver, Canada — Mawson Resources Limited (“Mawson”) or (the “Company”) (TSX:MAW) (Frankfurt:MXR) (PINKSHEETS: MWSNF) is pleased to announce further high-grade results from the recent 14.1 kilometre drill program at the Company’s 100%-owned Rajapalot project in Finland. These results continue to extend gold and cobalt mineralization beyond previously defined resources.

Mr. Hudson, Chairman and CEO, states, "More stunning results from Palokas with PAL0228 intersecting 19.5 metres @ 7.1 g/t gold and 1,006 ppm cobalt, highlighting the consistency of high-grade gold mineralization. Importantly, the reported holes define a new higher-grade zone that has considerable room for expansion. Core logging and assaying remains on schedule to deliver an updated resource at Rajapalot at the start of Q3 2020.”

Mawson completed the winter drill program with 37 drill holes for 14,132 metres (including one wedged drill hole and deepening an existing hole), and has released results from 24 drill holes on 20th January, 5th and 28th February 2020, 9th March 2020 and here. Thirteen drill holes remain to be reported. Gold and cobalt assay results from 11 drill holes across the three project areas (Palokas, South Palokas and Raja) are released here, including two of the drill holes from which gold assays had been previously reported (PAL0221 & PAL0222).

The significance of distinct high-grade zones within the mineralized footprint is becoming evident. Table 4 provides the high grade (2 g/t gold lower cut) intersections drilled to date at Rajapalot. The plan view map in Figure 2 shows the distribution at Palokas and South Palokas of these trends. New drilling appears to define a higher-grade, 190 metre long zone that has considerable room for expansion on the south western edge of Palokas. This zone appears to have a north-south orientation and is defined by drill holes PAL0222 (12.2 metres @ 13.2 g/t gold, 1,326 ppm cobalt, 14.0 g/t AuEq), PAL0228 (19.5 metres @ 7.1 g/t gold, 1,006 ppm cobalt, 7.8 g/t gold equivalent), together with PAL0194 (7.8 metres @ 5.1 g/t Au, 4,454 ppm cobalt, 7.9 g/t AuEq from 425.1 metres). The continuity of these elongate high-grade trends is encouraging as the Company learns more about the detailed distribution of mineralization. All three prospect areas with inferred resources at Rajapalot remain open, with further drilling required.

The regional upside potential of the Rajapalot project outside Palokas, South Palokas and Raja prospects is considerable. Coincident high chargeability (IP) and recently discovered (2020) electromagnetic conductors, combined with initial drilling of high-grade gold-cobalt mineralization at The Hut and Rumajärvi prospects (Figure 1b), provides strong impetus for testing near surface mineralization during the next drill season.

Mineralization has now been drilled down plunge for 560 metres at Raja, 500 metres at South Palokas and 590 metres at Palokas. Electromagnetic (EM) conductors indicate mineralized sulphidic host rocks at Palokas, South Palokas and Raja continue to at least 700-800 metres down plunge, which is the limit of this surface geophysical technique.

Further results reported here from the Palokas prospect include:

• PAL0218 intersected 1.0 metre @ 4.0 g/t gold, 378 ppm cobalt, 4.2 g/t AuEq from 432.4 metres was drilled 30 metres down dip and to the west of PAL0194;
• PAL0221, previously reported for gold only intersected 2.6 metres @ 6.2 g/t gold, 304 ppm cobalt, 6.4 g/t AuEq from 234.3 metres, was drilled 70 metres to the ENE of PAL0228.

Further results from a line of 3 holes drilled down plunge at South Palokas prospect indicates the better developed gold zone lies further the WSW, where the mineralization horizon remains open beyond PAL0225.

• PAL0225 intersected 15 metres @ 0.9 g/t gold, 246 ppm cobalt, 1.1 g/t AuEq from 344.0 metres and 5 metres @ 1.3 g/t gold, 363 ppm cobalt, 1.5 g/t AuEq from 415.8 metres and was drilled 120 metres down plunge from PAL0213 which intersected 17.7 metres @ 3.8 g/t gold (“Au”), 880 ppm cobalt (“Co”), 4.3 g/t gold equivalent (“AuEq”).
• PAL0220 intersected 0.7 metres @ 3.9 g/t gold, 189 ppm cobalt, 4.0 g/t AuEq from 376.0 metres, and was drilled 30 metres to the ENE of PAL0225.
• PAL0212 drilled 40 metres ENE from PAL220 hit a broad zone of host rock but contained no significant gold mineralization.

Results from the Raja prospect indicate the host package is continuous, but the current trend (>450 metres long) of higher-grade mineralization appears to terminate. The termination of high-grade mineralization also coincides with the end of the EM conductor that is then offset to the NW (Figures 1a and 1b), which requires testing in future seasons. Drill results returned:

• PAL0201D1 intersected 1.1 metres @ 3.8 g/t gold, 2,041 ppm cobalt, 5.1 g/t AuEq from 450.8 metres and was drilled 15 metres east of previously reported drill hole PAL0159, which intersected 3.0 metres @ 2.3 g/t gold, 672 ppm cobalt, 2.7 g/t AuEq from 434.0 metres and 4.5 metres @ 1.9 g/t gold, 754 ppm cobalt, 2.4 g/t AuEq from 451.0 metres.
• Drill holes PAL0208, PAL0217 and PAL0226 were drilled as a fan of holes 35-45 metres apart and located 120 metres down plunge from PAL0159. PAL0226 intersected 1.0 metre @ 1.0 g/t gold, 431 ppm cobalt, 1.2 g/t AuEq from 450.6 metres) or 5.0 metres @ 0.4 g/t gold, 694 ppm cobalt, 0.8 g/t AuEq from 450.6 metres, while both PAL0208 and PAL0217 returned no significant results.

A plan view of the completed drill holes and the locations of drill holes reported here are shown in Figures 1-3 with corresponding collar and assay data in Tables 1-3. Intersections in the plan view and cross section in Figure 3 are coloured by AuEq grade to show the high-grade trends at Palokas. Figure 1b shows the upside potential outside the Palokas, South Palokas and Raja resource areas indicated by the strong electromagnetic conductors (EM) and the host sulphidic package indicated by the induced polarization (IP) chargeability image. Host rocks at Palokas are in the same reduced stratabound host package as South Palokas showing up with the combination of the modelled EM plates and the chargeability response (IP). When viewed in a down-plunge orientation, mineralization, conductive electromagnetic plates and their enclosing rock packages show a similarity across all prospects.

During the COVID-19 pandemic, Mawson has implemented safety and physical distancing procedures, including working from home where possible and ceased all travel as recommended by the Finnish government. The Company recently completed its 2020 winter drilling program at the Rajapalot Gold Project in Finland. Core logging and assaying of drill data at Rajapalot remains on schedule to update the current inferred resource at the start of Q3 2020. The December 2018 resource included approximately 15,000 metres of drilling. A further 29,000 metres has now been drilled since December 2018 and will be available for inclusion in the new resource update.

Tables 1–3 provide collar and assay data. Assuming a predominant stratabound control, the true thickness of the mineralized interval is interpreted to be approximately 90% of the sampled thickness. Gold-only intersections are reported with a lower-cut of 0.5 g/t gold over a 1 metre width. No upper cut-off was applied. Where cobalt data becomes available, a lower cut of 0.3 g/t AuEq is used, based on modifying the open pit WhittleTM optimized open pit lower cut-off grade of 0.37 g/t AuEq developed for the 2018 resource recalculated to a dollar value per tonne against current averaged gold and cobalt prices (and therefore the 2018 resource cutoff 0.37 g/t AuEq is the same value per tonne as 0.30 g/t AuEq today). Where gold is below detection limit, half the cutoff grade is used in calculating the average grade for an interval and in determining the gold equivalent value.

Technical and Environmental Background
Up to five diamond drill rigs from the Arctic Drilling Company OY (“ADC”) and Kati OY (“Kati”) all with water recirculation and drill cuttings collection systems are used in the drill program. Core diameter is NQ2 (50.7 mm). Core recoveries are 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 are 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 are transported by 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. Samples for multi-element analysis (including cobalt) are pulped at CRS Minlab, then transported by air to the MSA labs in Vancouver, Canada and analyzed using four acid digest ICP-MS methods. 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 inserts blanks and standards into the analytical process.

Three-month average gold and cobalt prices have been used to calculate AuEq values according to the following:

• Average gold price $1580 per oz
• Average cobalt price $14.50 per pound
• Resulting in gold equivalent formula of AuEq g/t = Au g/t + (Co ppm/1589).

The host rocks to the gold and cobalt mineralization comprise sulphides (pyrrhotite>>pyrite) with biotite-muscovite-chlorite schists at South Palokas and Mg-Fe amphibole-biotite-chlorite rocks at Palokas. Veining and fracture fill minerals include pyrrhotite, magnetite and magnetite-pyrrhotite (+/- quartz, tourmaline). Retrograde chlorite after biotite, generations of secondary muscovite (“sericite”) and vein-controlled chlorite+/- tourmaline and magnetite are also present. Preliminary hand-held XRF analysis confirms the presence of associated scheelite and molybdenite, the former visible under UV light as tiny veinlets and disseminations. The minerals associated with the gold are clearly post-metamorphic, reduced, and most likely driven by hydrothermal fluids from nearby granitoid intrusions. Chlorite and fine muscovite are regarded as the lowest temperature silicate minerals with gold, structurally controlled in apparent spatial association with quartz and/or K-feldspar veins. Altered rocks enclosing the mineralized package contain locally abundant talc and tourmaline.

All maps have been created within the KKJ3/Finland Uniform Coordinate System (EPSG:2393).

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. For the 2018 resource, the gold equivalent ("AuEq") value was calculated using averaged prices of the time, resulting in 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 Au and Co prices.

About Mawson Resources Limited (TSX:MAW, FRANKFURT:MXR, PINKSHEETS:MWSNF)
Mawson Resources Limited is an exploration and development company. Mawson has distinguished itself as a leading Nordic Arctic exploration company with a focus on the flagship Rajapalot gold 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 1a: Plan of Rajapalot showing historic drilling and high-grade intersections drilled outside or subsequent to the 2018 NI43-101 resource (surface projection of these resources shown here; 0.37 g/t AuEq lower-cut).The map includes new drill holes reported and modelled ground TEM plates.

Figure 1b: Plan of Rajapalot showing IP Chargeability overlain with historic drilling and high-grade intersections drilled outside or subsequent to the 2018 NI43-101 resource (surface projection of these resources shown here; 0.37 g/t AuEq lower-cut). Note the coincidence of the sulphidic (chargeable) host package and the EM conductors – there remain many conductive and chargeable areas to be drill tested.

Figure 2: Plan view of Palokas and South Palokas prospects with significant drill intersections reported from areas largely outside the projection of the 2018 Inferred Resource..

Figure 3: Long section showing outline of 2018 resource (>2 g/t AuEq lower-cut) and significant grade-width intersections (coloured dots) showing new results from PAL0220, 222, 225, and 228 extending mineralization beyond the current resource areas (red dashed outlines). Interpreted north-south high-grade zones are shown in darker pink raking across the 340 degree plunging mineralized host sequence. The view is looking onto mineralized surface at Palokas and South Palokas (this view is looking at 60 degrees towards 120). Red dotted outline represents the current estimated limits to mineralized rocks, although testing between Palokas and South Palokas is restricted to just four shallow drill holes.

Table 1: Collar Information from 2019-20 Winter drilling at the Rajapalot Project (Finnish Grid, Projection KKJ3; the “A” postscript refers to a daughter hole off the primary hole and the depth range of the drill hole is indicated)

Table 2: Intersections from the 2019-20 Winter Drill Program. Intersections are reported with a lower cut of 0.3g/t AuEq (using updated gold and cobalt prices of $1580 per ounce and 14.50 per pound respectively) over 1 metre lower cut. No upper cut-off was applied.

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

Table 4: The top 40 high-grade intersections from the Rajapalot project. Note that 18 of these intersections (in bold) were not included in the 2018 Inferred Resource. Intersections are reported with a lower cut of 2.0 g/t AuEq (using updated gold and cobalt prices of $1580 per ounce and 14.50 per pound respectively) over 1 metre lower cut. No upper cut-off was applied.