News

Vancouver, Canada — Mawson Gold Limited (“Mawson” or the “Company”) (TSX:MAW) (Frankfurt:MXR) (PINKSHEETS: MWSNF) reports that its majority-owned Australian subsidiary, Southern Cross Gold Ltd (“SXG”), has reported an outstanding drill result from its 100% owned Sunday Creek property, Victoria, Australia. Mawson owns 60.3% of SXG following its recent initial public offering (“IPO”) on the Australian Securities Exchange (“ASX”).

Ivan Fairhall, Mawson CEO, states: “This hole speaks for itself in terms of the quality of SXG’s Sunday Creek discovery – a standout for both the project and the Victorian Goldfields in terms of width and grade – and the continuity observed augurs very well for the potential of the project.

Our holding in SXG very clearly strengthens Mawson’s asset base and we are positioned extremely well as the majority shareholder in this exciting new gold exploration company. With assays pending from both Sunday Creek, as well as the maiden drill program at Skellefteå North in Sweden, Mawson shareholders enjoy considerable near term exploration catalysts to complement later stage economic studies, which are in progress at our 100% owned +1Moz AuEq inferred resource at Rajapalot in Finland.

Drill Hole Discussion

Southern Cross reports that Drill SDDSC033 was drilled to test a 120m gap between two mineralized shoots to the west of the Apollo shaft between drill hole VCRC007 (28 m @ 3.0 g/t Au and 0.2% Sb (3.3 g/t AuEq) from 62.0m) located 60 m up-plunge from SDDSC033 and MDDSC012 (10.4 m @ 5.4 g/t Au and 1.1% Sb (7.0 g/t AuEq) from 203.0m), located 40 m down-plunge.

Within SDDSC033, three mineralized shoots join to form a “blow out” of the mineralized zone within altered siltstones, dioritic dykes and dyke-related breccias. The host for mineralization is a zone of intensely altered white mica-pyritic siltstones, and white mica-pyrite-carbonate altered dyke rocks. As is typical for epizonal deposits like Fosterville and Costerfield, gold (sometimes visible) at Sunday Creek is hosted in quartz and carbonate veins, with a later intense stibnite-bearing vein and breccia overprint. A large arsenic anomaly is associated with the gold mineralization. The orientation of the Apollo Shoot(s) are approximately 80 degrees dip towards 020 degrees azimuth, correlating with the intersection of the sub-vertical 330 degree striking mineralised veins and the steep east-west striking, north dipping dioritic dyke and related intrusive breccia.

In summary SDDSC033 reported here intersected:

• 119.2 m @ 3.9 g/t AuEq (3.2 g/t Au and 0.4% Sb) from 106.8 m in hole SDDSC033 (0.1 g/t AuEq over 3 m lower cut), including
  • 64.0 m @ 3.0 g/t AuEq (2.7 g/t Au and 0.2% Sb) from 110.7 m
  • 39.0 m @ 6.8 g/t AuEq (5.2 g/t Au and 1.0% Sb) from 179.0 m
• Higher grade zones included:
  • 5.1 m @ 20.3 g/t AuEq (17.7 g/t Au and 1.6% Sb) from 160.5 m
  • 2.3 m @ 32.0 g/t AuEq (26.2 g/t Au and 3.7% Sb) from 184.0 m
  • 5.2 m @ 22.3 g/t AuEq (14.7 g/t Au and 4.8% Sb) from 189.9 m

A total of 8 high-grade intersections >30g/t Au were intersected, and these are:

• • 0.3 m @ 120.6 g/t AuEq (119.5 g/t Au and 0.7% Sb) from 161.0 m
  • 0.2 m @ 58.2 g/t AuEq (57.3 g/t Au and 0.6% Sb) from 161.5 m
  • 0.1 m @ 45.4 g/t AuEq (34.3 g/t Au and 7.0% Sb) from 161.9 m
  • 0.3 m @ 52.8 g/t AuEq (51.6 g/t Au and 0.8% Sb) from 165.3 m
  • 0.9 m @ 41.8 g/t AuEq (35.4 g/t Au and 4.0% Sb) from 180.6 m
  • 0.8 m @ 65.8 g/t AuEq (54.7 g/t Au and 7.0% Sb) from 184.0 m
  • 0.8 m @ 58.2g/t AuEq (39.7 g/t Au and 11.7% Sb) from 192.2 m
  • 0.8 m @ 58.2 g/t AuEq (38.4 g/t Au and 7.1% Sb) from 194.3 m

Sunday Creek now has thirteen (13) >100 AuEq g/t x m holes now intersected (Figure 1). Mineralization remains open at depth and along strike. A 10 km mineralized trend that extends beyond the drill area is defined by historic workings and soil sampling at Sunday Creek where exploration drilling has never been undertaken and offers potential future upside.

Southern Cross has continued to drill at Sunday Creek over the last three months during the IPO process, drilling 10 holes for 2,278m completed and one hole in progress. With seven holes assayed and reported (MDDSC027, SDDSC028-33), drill core from three further holes (SDD034-36) has been forwarded to the assay laboratory and geochemical assay results will be released as announcements to ASX after being received from the laboratory.

Figures 1-3 show plan, longitudinal and cross section views of drill results reported here and Tables 1–3 provide collar and assay data. The true thickness of the mineralised interval is interpreted to be approximately 60-70% of the sampled thickness. All drill results quoted have a lower cut of 0.3 g/t Au cut over a 2.0m width, with higher grades reported with a 5 g/t Au cut over 1.0m applied unless otherwise stated.

Additional information may be found in Southern Cross’ news release dated May 30, 2022, and on its website at www.southerncrossgold.com.au.

Technical Background and Qualified Person

C$ conversions of A$ values completed at an exchange rate of 1.10.

The Qualified Person, Michael Hudson, Executive Chairman and a director of Mawson Gold, and a Fellow of the Australasian Institute of Mining and Metallurgy, has reviewed, verified and approved the technical contents of this release.

Analytical samples are transported to the Bendigo facility of On Site Laboratory Services (“On Site”) which operates under both an ISO 9001 and NATA quality systems. Samples were prepared and analyzed for gold using the fire assay technique (PE01S method; 25 gram charge), followed by measuring the gold in solution with flame AAS equipment. Samples for multi-element analysis (BM011 and over-range methods as required) use aqua regia digestion and ICP-MS analysis. The QA/QC program of Southern Cross Gold consists of the systematic insertion of certified standards of known gold content, blanks within interpreted mineralized rock and quarter core duplicates. In addition, On Site inserts blanks and standards into the analytical process.

Gold equivalent “AuEq” for Sunday Creek is = Au (g/t) + 1.58 x Sb (%) based on assumed prices of gold US$1,700/oz Au and antimony US$8,500/metal tonne, and total year metal recoveries of 93% for gold and 95% for antimony. Given the geological similarities of the projects, this formula has been adopted to align to TSX listed Mandalay Resources Ltd Technical Report dated 25 March 2022 on its Costerfield project, which is located 54 km from Sunday Creek and which historically processed mineralization from the property.

Gold equivalent “AuEq” for Rajapalot = Au+(Co/1005) based on assumed prices of cobalt US$23.07/lb and gold US$1,590/oz. Details of Mawson’s Inferred Mineral Resource can be read in the Company’s news release dated August 26, 2021.

About Mawson Gold Limited (TSX:MAW, FRANKFURT:MXR, OTCPINK:MWSNF)

Mawson Gold Limited is an exploration and development company with its flagship Rajapalot gold-cobalt project in Finland now entering technical study stages to de-risk its inferred resource and exploration growth program. Alongside ongoing exploration at Rajapalot, Mawson holds an option to earn up to 85% in the Skelleftea Gold Project in Sweden. Mawson also has a significant majority interest in the ownership or joint venture into three high-grade, historic epizonal goldfields covering 470 km² in Victoria, Australia, through Southern Cross Gold Ltd. (“Southern Cross”), which shares have successfully listed on the ASX. Mawson currently holds 60.3% ownership interest in Southern Cross. Mawson’s holdings in Southern Cross are escrowed until May 16, 2024.

About Southern Cross Gold Ltd (ASX:SXG)

Southern Cross Gold holds the 100%-owned Sunday Creek project in Victoria and Mt Isa project in Queensland, the Redcastle and Whroo joint ventures in Victoria, Australia, and a strategic 10% holding in ASX-listed Nagambie Resources Limited (ASX:NAG) which grants Southern Cross a Right of First Refusal over a 3,300 square kilometre tenement package held by NAG in Victoria.

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, Mawson’s expectations regarding its ownership interest in Southern Cross Gold, capital and other costs varying significantly from estimates, changes in world metal markets, changes in equity markets, the potential impact of epidemics, pandemics or other public health crises, including the current pandemic known as COVID-19 on the Company’s business, risks related to negative publicity with respect to the Company or the mining industry in general; exploration potential being conceptual in nature, there being insufficient exploration to define a mineral resource on the Australian-projects owned by SXG, and uncertainty if further exploration will result in the determination of a mineral resource; 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: Location of the Sunday Creek project, along with SXG’s other Victoria projects.

Figure 2: Sunday Creek plan view showing locations of drillholes for results reported in this announcement.

Figure 3: Sunday Creek cross section along the Apollo shoot looking towards 020 degrees showing continuity of wide and high-grade mineralization down to 335 metres vertically below surface.

Figure 4: Sunday Creek longitudinal section showing individual shoots defined to date and grad x width pierce points of drillholes. Broad arrows show indicative mineralized shoots. Greater than 100g/t AuEq * m intersections shown by red circles.

Table 1: Drill collar summary table for drillholes reported in this announcement.

Table 2: Tables of mineralized drill hole intersections reported in this announcement using two intersection criteria 5.0 g/t AuEq cutoff over a maximum of 1m

0.3 g/t lower cutoff over a maximum of 2m

0.1 g/t lower cutoff over a maximum of 3m

Table 3: All individual assays reported from SDDSC033 in this announcement.