2005 News Releases

June 29, 2005

Mawson Releases Phase 2 Drill Results from Vargbacken, Sweden and Initiates Mining Study

Vancouver, Canada -- Mawson Resources Limited ("Mawson") TSXv -- MAW. Mr Michael Hudson, President, is pleased to announce results from a Phase 2 drilling program at the Vargbäcken project, Sweden. A total of 9 reverse circulation ("RC") holes for 1024m were drilled. The results are presented in the attached tables 1 and 2.

Best RC drill results when applying a 0.5 g/t gold cut-off grade include:

  • RC57: 3m at 7.1 g/t gold from 22m including 1m at 16.5 g/t gold from 23m;
  • RC56: 3m at 3.9 g/t gold from 77m including 1m at 10.3 g/t gold from 78m;
  • RC53: 11m at 3.9 g/t gold from 163m including 1m at 25.7 g/t gold from 163m;
  • RC51: 2m at 5.0 g/t gold from 52m.

Gold at Vargbäcken is visible, free and coarse grained, and occurs in multiple high grade "bonanza" structures within a 30-40m wide gold mineralized halo. The potential of this mineralized halo is demonstrated by applying a lower cut-off grade of 0.2 g/t gold where RC53 intersected 46m at 1.7 g/t gold from 141m, RC56 intersected 36m at 1.2 g/t gold from 66m and RC51 intersected 37m at 1.1 g/t gold from 47m. It is not yet possible to make a conclusive statement defining true widths in the reported down-hole intercepts.

Higher grade gold mineralization has now been drill delineated over 250m strike and from surface to the extent of RC drilling at 160m depth, and the project therefore will be evaluated in the future for open pit mining. Scout drilling and rock chip sampling has identified gold mineralization over a 1 kilometre trend to the north and south of Vargbäcken. A drill hole plan and hole coordinates can be found at http://www.mawsonresources.com/index.php?page=ProjectsVBN.

Combined with the encouraging results from the 2004 RC drill program, which included: 3m at 10.4 g/t gold, 10m at 8.6 g/t gold and 14m at 19.8 g/t gold in RC34, and 3m at 10.0 g/t gold and 16m at 3.3 g/t gold in RC43 (see Mawson Press Releases Nov-29-2004 and Dec-14-2004) the Company now has sufficient information on the size, orientation, grade and continuity of mineralization to commence a first pass, in-house mining study of Vargbäcken. This study will identify the key commercial sensitivities that will determine further development of the project.

Mr Hudson comments, "Over the last 9 months, Mawson Resources has significantly advanced the Vargbäcken gold project. We have completed 27 RC drill holes and now have sufficient information to commence an in-house mining study. We have discovered bonanza grades within a 30-40m wide lower grade halo, and are encouraged by the continuity of gold mineralization, which now extends from surface to the extent of our drilling at 160m vertical depth along a 250m strike. It is now time to study the economics of the project to determine the most expedient way of adding further value."

The company also reports that drilling at the Middagsberget gold project, located 4 kilometres from Vargbäcken, is progressing well. Four RC holes for 294m have now been completed from an 8 hole program. The drill rig will return to Vargbäcken to complete a final drill hole once drilling at Middagsberget is complete.

The qualified person for the Vargbäcken and Middagsberget projects is Mark Saxon, Mawson's VP-Exploration and a member of the Australasian Institute of Mining and Metallurgy, has reviewed and verified the contents of this release.

On behalf of the Board,

"Michael Hudson"
Michael Hudson, President & CEO

Investor Information
www.mawsonresources.com

1305 -- 1090 West Georgia St., Vancouver, BC, V6E 3V7
Company Contact: Mariana Bermudez (604) 685 9316
Investor Relation Consultants - Mining Interactive
Nick Nicolaas (604) 657 4058, Wayne Melvin (604) 619 6327
Email: info@mawsonresources.com

Forward Looking Statement.
This news release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein. Neither the TSX Venture Exchange nor the Frankfurt Deutsche Börse have reviewed the information contained herein and, therefore, do not accept responsibility for the adequacy or accuracy of this news release.

Table 1 -- Vargbäcken Reverse Circulation Drill Hole Results June 2005, 0.5 g/t Au Cut Off

Location Drill Hole From (m) To (m) Width1 (m) Gold2 (g/t)
Section 95N RC58 27 30 3 1.3
RC58 41 42 1 2.7
RC58 49 52 3 2.0
RC58 74 77 3 1.7
Section 95N RC57 11 12 1 1.0
RC57 22 25 3 7.1
including 23 24 1 16.5
Section 25N RC56 36 39 3 1.3
RC56 51 52 1 3.0
RC56 66 67 1 1.2
RC56 71 75 4 1.1
RC56 77 80 3 3.9
including 78 79 1 10.3
RC56 81 82 1 1.9
RC56 89 90 1 4.8
RC56 98 99 1 10.5
Section 25N RC55 18 22 4 1.0
RC55 31 32 1 5.9
RC55 37 40 3 0.9
RC55 43 50 7 1.3
Section 30S RC54 73 74 1 1.5
Section 60S RC53 21 24 3 1.8
RC53 34 37 3 2.3
RC53 141 147 6 2.3
RC53 154 156 2 2.8
RC53 163 174 11 3.9
including 163 164 1 25.7
RC53 182 187 5 1.5
including 186 187 1 5.4
Section 00N RC52 83 84 1 1.5
RC52 106 109 3 2.1
RC52 114 116 2 2.5
RC52 120 121 1 1.1
RC52 125 128 3 1.2
RC52 140 141 1 1.1
Section 00N RC51 47 50 3 0.9
RC51 52 54 2 5.0
RC51 59 62 3 1.6
RC51 64 65 1 3.4
RC51 67 69 2 2.4
RC51 74 75 1 3.2
RC513 80 84 4 1.9
Section 00N RC504 42 43 1 1.1
RC504 61 64 3 0.9
Note 1: Calculated using a 1m minimum thickness and a 0.5 g/t gold lower cut. No upper cut applied.
Note 2: Gold analyzed by 1kg bottle roll technique with leachwell accelerant and an atomic absorption spectroscopy finish by ALS Chemex Ltd's laboratory in Piteå, Sweden. Duplicates, repeats, blanks and known gold standards were inserted according to standard industry practice.
Note 3: Drillhole terminated in mineralization.
Note 4: Drillhole abandoned due to water inflows before target zone was intersected.

Table 2 -- Vargbäcken Reverse Circulation Drill Hole Results June 2005, 0.2 g/t Au Cut Off

Location Drill Hole From (m) To (m) Width1 (m) Gold2 (g/t)
Section 00N RC51 47 84 37 1.1
Section 00N RC52 106 141 35 0.6
Section 60S RC53 141 172 46 1.7
Section 25N RC55 7 56 49 0.6
Section 25N RC56 66 102 36 1.2
Note 1: Calculated using a 1m minimum thickness and a 0.2 g/t gold lower cut. No upper cut applied.
Note 2: Gold analyzed by1kg bottle roll technique with leachwell accelerant and an atomic absorption spectroscopy finish by ALS Chemex Ltd's laboratory in Piteå, Sweden.