2017 News Releases

July 05, 2017

Mawson Completes Successful Winter Drill Program at Rajapalot Gold Project, Finland

Exceptional Gold Hit Rate, Project Poised for Further Drilling and Discovery

Vancouver, Canada - Mawson Resources Limited ("Mawson") or (the "Company") (TSX:MAW) (Frankfurt:MXR) (PINKSHEETS: MWSNF) provides a summary of the Company’s successful winter drilling program at the 100% owned Rajapalot Project in Northern Finland.In total, 55 diamond drill holes for 11,056 metres and 1,801 base-of-till ("BOT") drill holes were completed, greatly expanding the Company’s knowledge of the region.

Key Points:

  • The winter exploration program represents the first large scale drilling on the project with the following work completed;
    • 55 diamond drill holes for 11,056 metres of diamond drill core, averaging 210 metres;
    • 1,801 BOT holes, for 7,983 metres, averaging 4.4 metres, and
    • 105 km of infill and extension ground magnetics collected on lines spaced at 50 metres.
  • Drilling confirmed the presence of a large gold-mineralized hydrothermal system within a 4.5 sq km area while testing only a small fraction (5%) of the 27-kilometre strike of the interpreted host sequence in the Rajapalot area (Figure 1);
  • Exceptional rate of drill success with 42% of holes (58 out of the total 137 holes drilled in the Rajapalot project) hitting geochemically significant gold (greater than 1g/t-m). Furthermore, 28% of drill holes (39 out of a total of 137) have recorded greater than 5 g/t-m intersections. The total average drill depth on the project remains shallow at 109 metres.
  • Best results include:
    • PAL0030: 10.0 metres @ 11.6 g/t gold from 110.2 metres; plus 2.9 metres @ 1.0 g/t gold from 135.7 metres; and 3.0 metres @ 5.3 g/t gold from 143.9 metres at the Palokas prospect;
    • PAL0027: 6.8 metres @ 14.7 g/t gold from 34.4 metres at the Palokas prospect intersected, and;
    • PAL0075: 27.0 metres @ 3.3 g/t gold (no lower cut) from 64.0 metres, including 3.0 metres @ 2.9 g/t gold from 64 metres, 2.0 metres @ 5.6 g/t gold from 70.0 metres and 8.8 metres @ 7.5 g/t gold from 82.2 metres at the Raja prospect, 1.75km from Palokas.
  • Planning is now underway for a significant winter drill program commencing late 2017 or early 2018 dependent on winter conditions.

Mr. Hudson, Chairman and CEO, states, "The winter drill program confirmed the presence of a large, gold-mineralized hydrothermal system at Rompas-Rajapalot, delivering one of Finland’s most significant gold discoveries. The high hit rate of gold over regional-scale areas, the discovery of multiple high grade mineralized bodies and an extensive gold-footprint provided by BOT drilling, all in the first year of systematic, yet regional scale drill testing is impressive. Planning is now underway for a significant winter drill program commencing late 2017 or early 2018 dependent on winter conditions."

A plan view of the drill results is provided in Figures 1 and 2. Tables 1, 2 and 3 include all relevant collar and assay information. The true thickness of mineralized intervals at Palokas is interpreted to be approximately 90% of the sampled thickness. The true thickness of the mineralized intervals at Raja and South Rajapalot, will require additional drilling to determine due to the complicated structural controls.

Results from most drill holes have now been received (Tables 2 and 3). Thin mineralization was intersected in the remaining holes. Of note, outside the Kairamaat 2-3 permit and 2 kilometres east of Palokas, drill hole PAL0050 intersected 1 metre @ 323 g/t silver from 24.7 metres. Silver has not been identified in the system earlier and its context is under review.

Table 1: Select intersections from the 2017 Winter Drill Program reported. 0.5g/t Au over 1m lower cut (unless stated - see table 3), no upper cut-off

Hole ID Depth From (m) Depth To (m) Width (m) Au g/t
PAL0027 27.46 31.01 3.6 2.5
and PAL0027 34.41 41.21 6.8 14.7
and PAL0027 44.20 47.20 3.0 3.2
PAL0028 37.60 39.25 1.7 3.9
PAL0030 110.20 120.20 10.0 11.6
and PAL0030 143.85 146.85 3.0 5.3
PAL0033 152.5 154.7 2.2 7.7
PAL0040 37.3 42.3 5.0 1.2
PAL0043 10.6 22.6 12.0 1.2
PAL0048 53.0 95.7 42.7 1.0
PAL0050 24.7 25.7 1.0 323g/t silver
PAL0062 180.0 193.5 13.5 4.0
PAL0075 30.6 34.5 3.9 1.3
and PAL0075 64.0 91.0 27.0 3.3

A broad area of 4 by 6 kilometres was drill tested by the 1,801 base-of-till ("BOT") drill hole program. The program was successful in defining known mineralization and also defined multiple new drill targets over an extensive area. The Rajapalot gold mineralizing system now covers more than 4.5 sq km based on diamond drill results, and is most likely to extend much further based on anomalous gold values in the BOT data.

Next Steps:

To aid in understanding and targeting, the next steps for the project are to build a comprehensive three dimensional structural and stratigraphic model from drill results, rock geochemistry and geophysics. Dr. Laurent Ailleres of PGN Geoscience, an expert in the building of 3D structural-geophysical models, and Dr. Nick Oliver of Holcombe Coughlin Oliver Valenta Global, a renowned Proterozoic structural and hydrothermal specialist are now involved with Mawson to create a full 3D model across a 4 x 4 kilometre area to aid in targeting in the 2017-18 winter drill season. A significant drilling program will resume at Rajapalot in late 2017/early 2018 when winter conditions allow access.

Geological Overview:

Drilling has confirmed the presence of a large, gold-bearing, sulphide-bearing hydrothermal system associated with granitoid intrusions dated at 1.8 billion years, making the project similar in age to the Agnico Eagle’s 7.8Moz Kittila project that lies 150km north of Rompas-Rajapalot. Gold mineralization is controlled by a combination of granitoids and structurally-controlled fluid flow systems interacting with stratabound iron-rich rocks (Palokas-type). A new style of mineralization has also been discovered in the Rumajarvi area in where sulfides and gold occur in brecciated and fractured schists. Given the wide variety of controls on gold, the drill success rate remains exceptional.

The source of gold mineralization uncovered in boulders at the "Boardwalk" prospect has not been yet discovered by drilling. However, zones up to 20 metres thick zones of anomalous gold in iron formations has been intersected and are reported here for the first time (best intersection of 1 metre @ 3.19 g/t gold from 32 metres in PAL0074). These rocks further validate the "Homestake" geological model.

A full technical and geological overview of the program can be viewed HERE.

Technical and Environmental Background

Two diamond drill rigs (K1 & K2) from the Arctic Drilling Company OY (ADC) with water recirculation and drill cuttings collection systems were used for the drill results reported here. Core diameter is NQ2 (50.6 mm) diameter core. Core recoveries were 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 m for barren samples were 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 were transported by Mawson personnel or commercial transport from site to the CRS Minlab Oy facility in Kempele, Finland. Samples were prepared at Kempele and analyzed for gold at Raahe 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. 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. Interlaboratory comparisons are also conducted by Mawson, using fire assay techniques. In addition, CRS inserts blanks and standards into the analytical process.

The qualified person for Mawson's Finnish projects, Dr. Nick Cook, President for Mawson and Fellow of the Australasian Institute of Mining Metallurgy has reviewed and verified the contents of this release.

About Mawson Resources Limited (TSX:MAW, FRANKFURT:MXR, PINKSHEETS:MWSNF)

Mawson Resources Limitedis an exploration and development company. Mawson has distinguished itself as a leading Nordic Arctic exploration company with a focus on the flagship Rompas and Rajapalot gold projects in Finland.

On behalf of the Board,

"Michael Hudson"

Michael Hudson, Chairman & CEO
Further Information
www.mawsonresources.com
1305 - 1090 West Georgia St., Vancouver, BC, V6E 3V7
Mariana Bermudez (Canada), Corporate Secretary, +1 (604) 685 9316, info@mawsonresources.com

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 1:Plan view of the Rajapalot area (Kairamaat 2-3 lease area) showing gold host horizon and gold distribution found in diamond drill holes and outcrop


Figure 2:Plan view of the Rajapalot area (Kairamaat 2-3 lease area) showing sequence stratigraphy, gold distribution in diamond drill holes and outcrop, and BOT drilling

Table 1:Collar Information from 2017 Winter drilling at the Rajapalot Project

HoleID East North Azimuth Dip RL Depth Comment
PAL0027 3408669.639 7373860.04 116 59 174.6 301.6 Feb 21, 2017
PAL0028 3408725.338 7373888.604 119 61 174.6 92.3 Feb 21, 2017
PAL0029 3408628.139 7373987.401 114 60 175.4 197.3 Feb 21, 2017
PAL0030 3408606.132 7373941.149 118 60 174.1 194.8 Feb 21, 2017
PAL0031 3408702.717 7373952.246 123 59 174.2 131 Mar 06, 2017
PAL0032 3408801.408 7374094.334 132 60 174.6 174.2 Mar 06, 2017
PAL0033 3408125.589 7373140.245 150 60 173.0 215.8 Mar 06, 2017
PAL0034 3408167.082 7373072.328 152 60 175.8 143.55 April 06, 2017
PAL0035 3408095.182 7372897.825 137 60 176.9 191.8 April 06, 2017
PAL0036 3408122.526 7372856.568 140 59 175.4 115.1 April 06, 2017
PAL0037 3408007.86 7372394.745 116 60 176.2 244.3 Mar 06, 2017
PAL0038 3407903.857 7372442.782 117 60 175.5 300.5 April 06, 2017
PAL0039 3408010.284 7372471.397 120 49 177.7 247.8 April 06, 2017
PAL0040 3407938.31 7372358.825 121 50 178.3 200.1 April 06, 2017
PAL0041 3407936.069 7372539.986 116 50 175.4 341.4 April 06, 2017
PAL0042 3407841.942 7372407.127 120 49 172.6 257.15 May 02, 2017
PAL0043 3407842.812 7372797.616 117 58 174.4 339 April 06, 2017
PAL0044 3407645.347 7372423.911 91 50 173.1 250.6 Reported here
PAL0045 3407532.893 7372697.417 116 50 174.5 352.1 April 06, 2017
PAL0046 3408153.125 7372322.051 139 60 179.5 108.05 April 06, 2017
PAL0047 3410582.111 7373350.003 150 50 161.4 100.3 May 02, 2017
PAL0048 3408816.228 7372268.354 94 49 173.4 188.2 April 06, 2017
PAL0049 3408267.745 7372633.021 182 60 174.5 254.7 Reported here
PAL0050 3410617.224 7373308.181 141 51 161.0 103.5 Reported here
PAL0051 3408809.759 7372199.893 96 50 172.9 153.85 May 02, 2017
PAL0052 3410567.894 7373391.888 152 48 160.3 100.2 May 02, 2017
PAL0053 3408283.5 7372531.98 184 60 175.3 260.8 May 02, 2017
PAL0054 3410651.161 7373254.172 150 51 163.0 154.5 Results awaited
PAL0055 3408380.415 7372318.676 152 51 176.3 190.7 Reported here
PAL0056 3408708.224 7372201.269 93 49 174.6 268.15 Reported here
PAL0057 3410688.214 7373200.638 147 50 165.2 144 Results awaited
PAL0058 3408714.601 7372254.157 95 50 173.9 258.25 May 02, 2017
PAL0059 3408090.591 7372460.662 151 59 177.1 157.1 Reported here
PAL0060 3410986.662 7371862.355 70 50 138.0 153 Reported here
PAL0061 3409764.363 7372752.822 151 60 158.2 259.7 Reported here
PAL0062 3408753.115 7372463.76 159 60 175.3 237 May 02, 2017
PAL0063 3407948.629 7372717.304 114 50 172.8 173.9 May 02, 2017
PAL0064 3411064.777 7371882.227 70 50 138.5 120 Reported here
PAL0065 3410951.181 7371899.575 70 52 138.1 97.5 Reported here
PAL0066 3408969.71 7372539.428 159 60 174.2 252.2 May 02, 2017
PAL0067 3410016.737 7373124.202 134 59 162.0 203 Results awaited
PAL0068 3409009.579 7372419.13 163 60 171.9 255.7 Reported here
PAL0069 3408449.917 7373348.288 112 58 172.1 85.7 Reported here
PAL0070 3410244.84 7372112.476 145 50 144.2 103.5 Reported here
PAL0071 3408572.505 7372275.837 154 50 175.8 152.8 Reported here
PAL0072 3410287.798 7372052.214 144 49 144.0 121.5 Results awaited
PAL0073 3408967.543 7374399.706 173 49 176.0 445.85 Results awaited
PAL0074 3408406.92 7373278.536 113 60 172.0 142.1 Reported here
PAL0075 3408930.193 7372244.533 289 49 172.7 178.15 May 02, 2017
PAL0076 3409032.235 7372290.43 182 50 169.8 254.4 Reported here
PAL0077 3408311.336 7373327.801 116 60 171.7 25.3 Hole abandoned
PAL0078 3408309.414 7373328.771 116 60 171.9 237.05 Reported here
PAL0079 3409673.294 7373283.055 301 50 172.7 206 Results awaited
PAL0080 3409415.534 7374395.871 160 48 178.3 161.5 Reported here
PAL0081 3409462.937 7374240.817 162 51 176.4 167.15 Reported here
PAL0082 3408298.575 7373424.906 112 60 173.9 292.4 Reported here

Table 2: Intersections from the 2017 Winter Drill Program reported. 0.5g/t Au over 1m lower cut (unless stated), no upper cut-off

Hole ID Depth From (m) Depth To (m) Width (m) Au g/t Date Reported
PAL0027 27.46 31.01 3.6 2.5 Feb 21, 2017
PAL0027 34.41 41.21 6.8 14.7 Feb 21, 2017
PAL0027 44.20 47.20 3.0 3.2 Feb 21, 2017
PAL0028 21.70 22.70 1.0 0.8 Feb 21, 2017
PAL0028 37.60 39.25 1.7 3.9 Feb 21, 2017
PAL0029 95.65 96.65 1.0 0.7 Feb 21, 2017
PAL0030 110.20 120.20 10.0 11.6 Feb 21, 2017
PAL0030 135.70 138.60 2.9 1.0 Feb 21, 2017
PAL0030 143.85 146.85 3.0 5.3 Feb 21, 2017
PAL0031 85.4 86.4 1.0 1.5 Mar 06, 2017
PAL0032 No significant results Mar 06, 2017
PAL0033 152.5 154.7 2.2 7.7 Mar 06, 2017
PAL0034 No significant results April 06, 2017
PAL0035 No significant results April 06, 2017
PAL0036 No significant results April 06, 2017
PAL0037 33.0 35.0 2.0 3.6 Mar 06, 2017
PAL0038 No significant results April 06, 2017
PAL0039 112.8 113.1 0.4 2.9 April 06, 2017
PAL0040 37.3 42.3 5.0 1.2 April 06, 2017
PAL0041 179.0 180.0 1.0 1.3 April 06, 2017
PAL0041 242.6 243.6 1.0 1.2 April 06, 2017
PAL0042 No significant results May 02, 2017
PAL0043* 10.6 22.6 12.0 1.2 April 06, 2017
PAL0044 No significant results Reported here
PAL0045 No significant results April 06, 2017
PAL0046 No significant results April 06, 2017
PAL0047 No significant results May 02, 2017
PAL0048+ 53.0 59.0 6.0 2.0 April 06, 2017
PAL0048+ 82.0 95.7 13.7 2.0 April 06, 2017
PAL0048 53.0 95.7 42.7 1.0 April 06, 2017 (No lower cut)
PAL0049 No significant results Reported here
PAL0050 24.7 25.7 1.0 323g/t silver Reported here
PAL0051 99.0 100.0 1.0 1.4 May 02, 2017
PAL0052 No significant results May 02, 2017
PAL0053 65.7 66.7 1.0 0.5 May 02, 2017
PAL0053 68.7 69.7 1.0 1.1 May 02, 2017
PAL0055 No significant results Reported here
PAL0056 No significant results Reported here
PAL0059 No significant results Reported here
PAL0060 No significant results Reported here
PAL0061 No significant results Reported here
PAL0062+ 180.0 193.5 13.5 4.0 May 02, 2017
PAL0063 No significant results May 02, 2017
PAL0066 No significant results May 02, 2017
PAL0068 64.45 65.45 1 0.74 Reported here
PAL0069 No significant results Reported here
PAL0070 No significant results Reported here
PAL0071 No significant results Reported here
PAL0074 32 33 1 3.19 Reported here
PAL0075+ 30.6 34.5 3.9 1.3 May 02, 2017
PAL0075+ 64.0 67.0 3.0 2.9 May 02, 2017
PAL0075+ 70.0 72.0 2.0 5.6 May 02, 2017
PAL0075+ 82.2 91.0 8.8 7.5 May 02, 2017
PAL0075+ 64.0 91.0 27.0 3.3 May 02, 2017 (no lower cut)
PAL0076 No significant results Reported here
PAL0077 Hole abandoned May 02, 2017
PAL0078 No significant results Reported here
PAL0080 No significant results Reported here
PAL0081 No significant results Reported here
PAL0082 No significant results Reported here

*0.5g/t Au over 2m lower cut in PAL0043.The true thickness of mineralized intervals at Palokas is interpreted to be approximately 90% of the sampled thickness. Owing to the complex three dimensional structural controls and brecciation, combined with the stratabound nature of the albitic host rock at Raja and South Rajapalot, the true thickness of the mineralized intervals is, at this stage, unknown.