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 further results from its 100% owned Sunday Creek property, Victoria, Australia. Mawson owns 60% of SXG following its recent initial public offering (“IPO”) on the Australian Securities Exchange (“ASX”).

Ivan Fairhall, Mawson CEO, states: “Sunday Creek continues to deliver for its shareholders, of which Mawson is its largest. These results demonstrate the continuity of widths and grade in the Apollo shoot around the earlier spectacular result in SDSC0033.

Mawson’s asset base is as strong as it has ever been, with its pre-PEA stage 1moz AuEq Rajapalot project and significant exploration upside in Finland, a brand new discovery in Sweden, and toping it off a controlling interest in SXG which has considerable market value as demonstrated by its ASX listing.”

Figure 1: Sunday Creek longitudinal section along the Apollo shoot looking towards 320 degrees showing drillholes reported here (SDDSC038-39) and continuity of wide and high-grade mineralization around drillhole SDDSC033 and down to 335 metres vertically below surface (MDDSC025).

Results Discussion

With 13,500 metres drilled at Sunday Creek in less than two years, the project now has fifteen (15) >100 cumulative grade x metres (“AuEq g/t x m”) holes intersected. The two new drill holes (SDDSC038-39) form the 2nd and 4th best drill holes, after SDDSC033, to be drilled to date at Sunday Creek based on AuEq g/t x m. The 3rd best hole (MDDSC025 11.7 m @ 18.0 g/t AuEq) lies 200 m below SDDSC033 showing the scale of the developing system. 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 which has yet to receive any exploration drilling and offers potential future upside.

The Sunday Creek epizonal-style gold project is located 60 km north of Melbourne (Figure 2) within 19,365 hectares of granted exploration tenements. SXG is also the freehold landholder of 132.64 hectares that forms the key portion in and around the drilled area at the Sunday Creek Project. Geologically, the project is located within the Melbourne Structural Zone in the Lachlan Fold Belt. The regional host to the Sunday Creek mineralization is an interbedded turbidite sequence of siltstones, minor sandstones metamorphosed to sub-greenschist facies and folded into a set of open NW trending folds. Mineralization at Sunday Creek is controlled by veining, stibnite-gold-matrix breccias and brittle faults. The immediate 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 (Photos 1 – 3)) at Sunday Creek is hosted in quartz and carbonate veins, with a later intense stibnite-bearing vein and breccia overprint. A larger arsenic anomaly is associated with the gold mineralization, mostly represented by arsenian-pyrite but developing to arsenopyrite-bearing zones with a clear spatial relationship to high-grade gold.

Mineralized shoots at Sunday Creek are formed at the intersection of the sub-vertical to shallower dipping 330 degree striking mineralized veins and a steep east-west striking, north dipping structure formed by dioritic dykes and related intrusive breccias. The dimensions of each shoot will be uncovered with further drilling, but typically:

• In the down plunge orientation (80 degrees towards trend of 020 degrees), the shoots are extensive and have been drilled down over 400 m and remain open to depth, with grades improving (for example MDDSC025 11.7 m @ 18.0 g/t AuEq (12.4 g/t Au and 3.6% Sb) including 4.0 m @ 46.7 g/t AuEq (31.9 g/t Au and 9.4% Sb)).
• Visible gold in other epizonal deposits (for example Fosterville and Costerfield) becomes increasingly significant at depth below approximately 800 m, most likely representing the different temperatures of formation of Au-Sb and Au dominant mineralization.
• Are typically 20 m to 30 m wide in the up-dip/down-dip orientation but can blow out to be wider (ie around SDDSC033), and;
• Further drilling is required to establish the average thickness but drilling so far suggests a thickness of 20 m to 30 m.

SDDSC038 also identified two new veins drilled 70 m and 100 m further east than previously drilled. ‘Vein 1’ intersected 1.0 m @ 11.5 g/t AuEq (7.5 g/t Au and 2.5% Sb) from 235.0 m and 0.2 m @ 10.0 g/t AuEq (8.2 g/t Au and 1.2% Sb) from 238.0 m. ‘Vein 2’ intersected 0.6 m @ 28.3 g/t AuEq (0.9 g/t Au and 17.4% Sb) from 306.3 m.

Figures 1-4 show project location and 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. Drill results quoted have a lower cut of 0.3 g/t Au cut over a 3.0 m width, with higher grades reported with a 5 g/t Au cut over 1.0 m applied unless otherwise indicated* where 0.1 g/t Au over 7.0 m was applied for broader intersection through length of mineralised structure).

Additional information may be found in Southern Cross’ news release dated 9th August, 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 1.11.

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.

Photo 1: SDDSC039 @ 202.4 metres showing abundant visible gold in quartz-carbonate and stibnite matrix. Assays from two quarter core from this interval assayed 112 g/t Au with a laboratory repeat of 130 g/t Au and 14.4% Sb (sample 61014702) and 47 g/t Au and 13.1% Sb (sample 61014701) for an average of 0.7 m @ 105.7 g/t AuEq (84.0 g/t Au and 13.8% Sb) from 202.0 m. Field of view 12 mm.

Photo 2: SDDSC039 @ 202.7 m Stibnite-white mica altered sediment breccia zone with ferroan dolomite and quartz veins with stibnite and visible gold. Assays from two quarter core from this interval assayed 112 g/t Au with a laboratory repeat of 130 g/t Au and 14.4% Sb (sample 61014702) and 47 g/t Au and 13.1% Sb (sample 61014701) for an average of 0.7 m @ 105.7 g/t AuEq (84.0 g/t Au and 13.8% Sb) from 202.0 m. Field of view of top image is 20 mm.

Photo 3: SDDSC039 @ 203.7 m: Ferroan dolomite and quartz with stibnite and visible gold. Interval averaged 0.5 m @ 82.6 g/t AuEq (42.9 g/t Au and 25.1% Sb) from 203.7 m. Field of view of top image is 15 mm.

Figure 2: Location of the Sunday Creek project, along with SXG’s other Victoria projects.

Figure 3: Sunday Creek plan view showing locations of drillholes for results reported in this announcement and pending holes.

Figure 4: Sunday Creek east-west longitudinal section along the trend of the dyke/structure showing individual shoots defined to date. Broad arrows show indicative mineralised shoots.

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 three 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 SDDSC038/39 in this announcement >0.1g/t AuEq.