News

Vancouver, Canada — Mawson Gold Limited (“Mawson” or the “Company”) (TSX:MAW) (Frankfurt:MXR) (PINKSHEETS: MWSNF) announces results from six further drill holes (SDDSC056-58, 61, 63 and 65) at the Sunday Creek Project in Victoria (Figure 1). Sunday Creek is 100% owned by Southern Cross Gold (“SXG”), which is an ASX listed company owned 51% by Mawson. Four rigs continue to drill both in the main drill area and up to 7.5 km along strike at the Tonstal prospect with 13 holes being processed and analyzed or in progress.  Mineralization now extends in the main drill area over 1,350 m from Christina in the far west to SDDSC063.

Noora Ahola, Mawson Interim CEO, states: “We are pleased with the expansive drill campaign being undertaken by SXG at Sunday Creek that is bearing great results.  SDDSC061 is the second deepest hole at the property and a 270 m step out below the Rising Sun shoot that intersected 0.3 m @ 249.5 g/t Au within a broader interval and encouragingly sees the system transitioning at depth, with visible gold, in a similar manner to what is observed at other epizonal deposits that are in production in Victoria.

“Also exciting is SDDSC063 that has again extended the mineralized zone to the east of Apollo by a further 200 m with grades of up to 12.2 g/t Au and 3.2% Sb from 26.2 m and beneath a surface trench that previously returned 8.0 m @ 19.6 g/t Au and 0.4% Sb (true width 3 m).

“SXG has successfully increased the size of its main drill area to 1,350 m along strike and 800 m to depth and with the recently mobilized fourth rig at the Tonstal prospect around 7.5 km to the north-east of the main drill area, we expect known mineralization to increase further still at Sunday Creek.”

Results Discussion

The Sunday Creek epizonal-style gold project is located 60 km north of Melbourne within 19,365 hectares of granted exploration tenements. SXG is also the freehold landholder of 133 hectares that forms the key portion in and around the drilled area at the Sunday Creek Project.

Sunday Creek has an 11 km mineralized trend that extends beyond the main drill area and is defined by historic workings and soil sampling which is being drill tested for the very first time with the fourth drill rig which mobilized to site just over a week ago.

Rising Sun Prospect

Drill hole SDDSC061 is a large 270 m step out vertically below the Rising Sun Shoot and intersected:

• 8.0 m @ 1.3 g/t AuEq (1.2 g/t Au, 0.1 %Sb) from 656.0 m
• 12.0 m @ 7.4 g/t AuEq (7.4 g/t Au, 0.0 %Sb) from 688.0 m
  • Including 0.3 m @ 249.5 g/t AuEq (249.5 g/t Au, 0.0 %Sb) from 691.1 m

SDDSC061 is located 270 m below the Rising Sun intersection in SDDSC050 which returned 14.5 m @ 4.9 g/t AuEq (4.2 g/t Au, 0.5% Sb) from 439.8 m. Multiple points of visible gold (Photos 1 and 2) were observed between 691.0 m to 695.1 m in SDDSC0061. SDDSC061 is located 187 m west in a horizontal plane from SDDSC050 and is the second deepest mineralized intersection on the project to date at 690 m vertically below surface. Results are only presented from 27-76 m and 620-770m in SDDSC061, whilst assays from 76 m–399 m are still being awaited, but not expected to produce higher grades.  The last assay in the hole between 769-770 m assayed 0.7 g/t Au with further assaying at depth ongoing.

Photo 1: SDDSC061 at 691.2 m with multiple points of visible gold shown in the red circles.  Yellow box shows the location of Photo 2. Scale in cm.

Photo 2: SDDSC061 at 691.2 m with a zoom in on Photo 1 showing the detail of multiple points of visible gold adjacent to arsenopyrite. Field of view 0.5cm.

Apollo East Prospect

Drill hole SDDSC063, a 200 m step out from prior drilling at Apollo East targeted mineralization found in surface trenching (8.0 m @ 19.6 g/t gold and 0.4% antimony (true width 3 m) and 2 m @ 4.9 g/t gold and 0.2% antimony (true width 2 m)).  SDDSC063 intersected:

• 2.7 m @ 4.4 g/t AuEq (3.4 g/t Au, 0.7 %Sb) from 24.0 m
  • Including 0.5 m @ 17.2 g/t AuEq (12.2 g/t Au, 3.2 %Sb) from 26.2 m

SDDSC063 is located 935 m from SDDSC061 and mineralization now extends in the main drill area over 1,350 m from Christina in the far west to SDDSC063.

SDDSC065, also drilled at Apollo East, drilled 12 m SE of SDDSC063 and intersected the edge of the mineralized body with anomalous but low grade mineralization intersected: 1.3 m @ 0.2 g/t AuEq (0.1 g/t Au, 0.0 %Sb) from 26.2 m and 3.5 m @ 0.1 g/t AuEq (0.1 g/t Au, 0.0 %Sb). from 31.5 m.

Apollo-Gladys Prospects

Drill hole SDDSC056, drilled to test a near surface gap between Apollo and Gladys intersected:

• 1.0 m @ 11.7 g/t AuEq (0.1 g/t Au, 7.4 %Sb) from 77.0 m
• 19.6 m @ 1.5 g/t AuEq (1.0 g/t Au, 0.3 %Sb) from 132.0 m
  • Including 0.5 m @ 25.7 g/t AuEq (9.9 g/t Au, 10.0 %Sb) from 134.5 m
  • Including 0.5 m @ 6.3 g/t AuEq (6.3 g/t Au, 0.0 %Sb) from 150.1 m
• 2.4 m @ 3.8 g/t AuEq (3.5 g/t Au, 0.2 %Sb) from 172.6 m
  • Including 0.6 m @ 10.8 g/t AuEq (9.9 g/t Au, 0.6 %Sb) from 173.8 m

Drill hole SDDSC057 testing a gap lower in the Apollo area intersected lower grade gold and arsenic mineralization over 16.4 m @ 0.8 g/t AuEq (0.3 g/t Au, 0.3 %Sb) from 325.2 m (20m @ 0.1 g/t Au lower cut-off), which included 0.8 m @ 11.7 g/t AuEq (2.0 g/t Au, 6.1 %Sb) from 328.2 m.

Golden Dyke Prospect

SDDSC058, the first of three holes drilled below old workings at Golden Dyke intersected the halo to mineralization with broad and low-grade gold and arsenic noted including 19.0 m @ 0.2 g/t AuEq (0.2 g/t Au, 0.0 %Sb) from 220.0 m (20m @ 0.1 g/t Au lower cut-off).

Further discussion and analysis of the Sunday Creek project by Southern Cross Gold is available on the SXG website at www.southerncrossgold.com.au

Figures 1-5 show project location and plan and longitudinal and cross-sectional views of drill results reported here and Tables 1–3 provide collar and assay data. The true thickness of the mineralized interval is interpreted to be approximately 60% - 70% of the sampled thickness. DSSC0061, given its depth and deviation, was drilled at a higher angle to mineralization with true thickness of the mineralized interval reported interpreted to be approximately 50% of the sampled thickness. Lower grades were cut at 0.3 g/t lower cutoff over a maximum of 3 m with higher grades cut at 5.0 g/t AuEq cutoff over a maximum of 1 m.

Update on Current Drilling

Drilling with four rigs is in progress at Sunday Creek at the Golden Dyke, Rising Sun and Apollo prospects. Nine holes (SDDSC059, 60, 62, 64, 66, 67, 69, SDDTS001-2) are being geologically processed and analyzed, with four holes (SDDSC068, 70, 71, SDDTS003) in drill progress (Figure 2).  These holes will provide continual news flow. Drill holes awaiting assays or in progress include the deepest drill holes drilled on the project at Rising Sun (SDDSC064/67/70) and Apollo (SDDSC066/68). SDDSC064 is the first hole to exceed 1 km depth on the project, terminating at 1013.5 m.

Technical Background and Qualified Person

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.

MAW considers that both gold and antimony that are included in the gold equivalent calculation (“AuEq") have reasonable potential to be recovered at Sunday Creek, given current geochemical understanding, historic production statistics and geologically analogous mining operations. Historically, ore from Sunday Creek was treated onsite or shipped to the Costerfield mine, located 54 km to the northwest of the project, for processing during WW1. The Costerfield mine corridor, now owned by Mandalay Resources Ltd contains two million ounces of equivalent gold (Mandalay Q3 2021 Results), and in 2020 was the sixth highest-grade global underground mine and a top 5 global producer of antimony.

SXG considers that it is appropriate to adopt the same gold equivalent variables as Mandalay Resources Ltd in its Mandalay Technical Report, 2022 dated 25 March 2022. The gold equivalence formula used by Mandalay Resources was calculated using recoveries achieved at the Costerfield Property Brunswick Processing Plant during 2020, using a gold price of US$1,700 per ounce, an antimony price of US$8,500 per tonne and 2021 total year metal recoveries of 93% for gold and 95% for antimony, and is as follows: ???? = ?? (?/?) + 1.58 × ?? (%).

Based on the latest Costerfield calculation and given the similar geological styles and historic toll treatment of Sunday Creek mineralization at Costerfield, SXG considers that a ???? = ?? (?/?) + 1.58 × ?? (%) is appropriate to use for the initial exploration targeting of gold-antimony mineralization at Sunday Creek.

For previously reported exploration results referenced in this news release, refer to the following:

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

Mawson Gold Limited is an exploration and development company. Mawson has distinguished itself as a leading Nordic exploration company with its 100% owned flagship Rajapalot gold-cobalt project in Finland, and right to earn into the Skellefteå North gold project in Sweden. Mawson also currently owns 51% of Southern Cross Gold Ltd (ASX:SXG) which in turn owns or controls three high-grade, historic epizonal goldfields covering 470 km2 in Victoria, Australia.

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 SXG a Right of First Refusal over a 3,300 square kilometer 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 (grey boxes), pending holes, and select prior reported drill holes.

Figure 3: Sunday Creek east-west longitudinal section looking towards 000, along the trend of the dyke/structure, higher grade assays and selected mineralized veins sets.  Also, prior select reported drillholes shown.

Figure 4: Sunday Creek cross section (50 m thickness) in plane of the Rising Sun Shoot looking towards 257 showing dyke breccia host and prior reported drillholes.

Figure 5: Sunday Creek regional plan view showing LiDAR, soil sampling, structural framework, regional historic epizonal gold mining areas and broad regional areas to be tested in a 2,500 m diamond drill program.  The first drill area at Tonstal is located 7.5km along strike from the main drill area at Golden Dyke-Apollo.

Table 1: Drill collar summary table for drillholes reported in this announcement (including in progress).

Table 2: Tables of mineralized drill hole intersections reported from SDDSC056-58, 61, 63 and 65 using two cut-off criteria. Lower grades cut at 0.3 g/t lower cutoff over a maximum of 3 m with higher grades cut at 5.0 g/t AuEq cutoff over a maximum of 1 m.

Table 3: All individual assays reported from SDDSC056-58, 61, 63 and 65 >0.1g/t AuEq.