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2019 News Releases

February 26, 2019

Mawson Announces Drill Results For The Western USA Project

Vancouver, Canada — Mawson Resources Limited (“Mawson”) or (the “Company”) (TSX:MAW) (Frankfurt:MXR) (PINKSHEETS: MWSNF) announces drill results from the Western USA (“WUSA”) project in Oregon, where a total of 4 holes (one abandoned) were completed for 1,033 metres at the Scorpion intermediate-sulphidation and Huckleberry high-sulphidation projects. This was the first diamond drilling program completed at both prospects.

Key Points:

  • Best results were achieved in the first and only hole drill hole at Scorpion where SDH-001-18 returned 0.6 metres @ 3.25 g/t gold (“Au”), 27.3 g/t silver (“Ag”), 6680 ppm arsenic (“As”), 485 ppm antimony (“Sb”) and 2.8 ppm tellurium (“Te”) from 21.3 metres. The hole targeted strong and widespread surface alteration and an extensive gold in soil anomaly that extends over a 2.2 km long by up to 400 metre-wide area;
  • Holes at Huckleberry intersected intense siliceous and argillaceous alteration, with wides zones of high pathfinder elements including tellurium. Drill hole HDH-003-18 intersected 15.2 metres @ 16.5ppm Te, 0.34 g/t Ag, 1038 ppm As, 96.4 ppm Sb and from 56.4 metres;
  • The drilling program at the two prospects intersected wide zones of previously undrilled intense silica, argillic and sulphidic alteration that contain anomalous geochemistry including epithermal geochemical pathfinders, and locally elevated base metals and gold. Follow up work is recommended;
  • Drill permits at WUSA are in place for a more extensive drill program.

Mr. Hudson, Chairman and CEO, states, "The first drill program drilling at the WUSA project confirmed a drill discovery and highlighted the prospectivity of Scorpion where highly altered and sulphidic rocks are associated with gold anomalous soils that extend over a 2.2 km long by up to 400-metre-wide area. As only one hole has ever been drilled, the elevated results and extensive soil anomaly at Scorpion warrant follow-up. The Company is now reviewing the potential for a transaction of the WUSA project, while focusing on our flagship gold project in Finland where four rigs remain in operation around the clock.”

At WUSA, 4 diamond drill holes for 1,033 metres were completed, with 3 drill holes at Huckleberry (one abandoned) and one at Scorpion (collar information is shown in Table 1). Intense silica and argillic alteration of porphyritic andesite and quartz phyric rhyodacite was intersected in all drill holes. Iron oxides and pyrite were commonly associated with brecciation and stockwork fractures, and disseminated pyrite was present throughout more weakly altered host rocks. Better gold assay results are listed in Table 2.

WUSA lies in the central Western Cascade Ranges of Lane and Douglas Counties, Oregon, USA (Figure 1) and consists of an area of interest of 150,500 hectares (“Exploration Agreement Area”), of which 68,075 hectares of mineral and land rights (“fee-simple land”) are held by a single landholder (the “Landholder”). Within the Exploration Agreement Area are smaller areas of mineral rights owned by the Landholder (1,447 hectares), the Bureau of Land Management (“BLM”) claims held by the Landholder (333.1 hectares), and BLM claims held directly by Mawson (142.2 hectares).

The Cascade Range in Oregon is underlain by Eocene to Holocene intermediate to felsic volcanic and volcaniclastics rocks erupted along the western margin of North America. Immediately adjacent to Mawson’s 150,500 hectare WUSA project lies a well-mineralized district containing multiple mineral deposits including polymetallic veins (Bohemia, a gold-rush mining area discovered in 1858) and historic hot-spring style mercury mines. Placer gold mining is still undertaken within the option area.

Drill results: Scorpion

The Scorpion prospect is centred on a 2.2 km long by up to 400 metre-wide area where soil geochemical samples regularly exceeding 1 g/t Au (Figure 2). These gold enriched soils overlie strongly acid altered volcanic rocks with up to 5.51 g/t gold, however a bedrock gold-mineralized source was never identified before this drill program. Mineral tenure at Scorpion consists of fee-simple land held by the Landholder. Drill permits for a more extensive program have been received from the relevant authorities.

Scorpion drill hole SDH001-18 (282 m) intersected predominantly argillic alteration with clear evidence of structural control on better-mineralized zones. The upper zone correlated in part with a sulphide-rich breccia and the lower zone with a stockwork system. In the upper interval, elevated Au and Ag are associated with high levels of epithermal pathfinder elements including As, Sb, lead (“Pb”), zinc (“Zn”) and copper (“Cu”), implying that pyrite is accompanied locally by galena and sphalerite, and perhaps trace electrum. In the lower interval, there are patchy strong enrichments of As, Sb, Cu and Au (and locally molybdenum (“Mo”), tungsten (“W”), Pb and Zn) relative to background values. In contrast to Huckleberry, contents of bismuth (“Bi”), Se and Te at Scorpion were lower.

Two zones of interest were drilled:

  1. Upper sulphide-rich breccia zone:
    • Drill hole SDH-001-18: 7.6 metres @ 0.41 g/t Au, 3.1 g/t Ag, 1133 ppm As, 88.1 ppm Sb and 0.5 ppm Te from 21.3 metres
      • Including 0.6 metres @ 3.25 g/t Au, 27.3 g/t Ag, 6680 ppm As, 485 ppm Sb and 2.8 ppm Te from 21.3 metres
  2. Lower stockwork zone:
    • Drill hole SDH-001-18: 36.6 metres @ 0.15 g/t Au, 0.5 g/t Ag, 597 ppm As, 111.6 ppm Sb and 0.5 ppm Te from 106.7 metres
      • Including 1.5 metres @ 1.59 g/t Au, 4.6 g/t Ag, 2570 ppm As, 104 ppm Sb and 0.6 ppm Te from 21.3 metres

The Scorpion drill hole demonstrated strong structural control on elevated geochemical values, a clear association between gold and base metal values, and widespread modest tenor gold enrichment. The upper mineralized breccia is encouraging with respect to metal values (gold, base metals and pathfinders) while the broader stockwork has patchy high values, including gold and copper. Being the first and only hole drilled, the Scorpion prospect warrants follow-up exploration.

Drill results: Huckleberry

Huckleberry is a high sulphidation gold prospect with an area of intense hypogene acid sulphate (quartz, alunite, clay) alteration known in outcrop for 1,000 metres along strike (Figure 3). A northeast trending shear zone over 1,600 metres long and up to 300 metres wide forms the core of the prospect area, associated with strong As, Sb, Hg, Bi, Mo anomalism and argillic and silica-alunite alteration. Tenure at Huckleberry is comprised of areas of Landholder mineral rights plus areas of BLM claims on public land. Drill permits have been received from both the BLM and DOGAMI.

Drill holes HDH001-18 and HDH003-18 (collared at the same location as abandoned hole HDH002-18) targeted zones of mapped silicification alteration and associated anomalous geochemical zones (As, Hg, Mo, Bi, Sb) in rock chip geochemistry.

Drilling at Huckleberry provided clear evidence of the association between high- or intermediate-sulphidation epithermal style alteration with strongly elevated values of pathfinder elements, e.g. sulphur (“S”), As, Sb, Se, Te, locally Bi and molybdenum (“Mo”) (and Hg in surface rock samples). Drilling did not intersect significant values of Au and Ag, however higher values may lie within the intense alteration system at greater depth than targeted in HDH001-18 and HDH003-18.

In HDH-001-18, a total of 30 samples each 1.5m long were taken between 201.2 m and 385.57 m (184.4 m) for a combined length of 45.7 metres. The 30 samples averaged: 0.13 g/t Ag, 321.6 ppm As, 6.9 ppm Sb and 4.8 ppm Te.

Drill hole HDH003-18 (280 m) encountered strong alteration, including silicification down to 64 metres and argillic and possibly advanced argillic, as well as propylitic, based on core logging and geochemistry. The silicified zone also has strongly anomalous As, Sb, Bi and to some extent Mo, but with background values of Au and Ag. Best results were:

  • HDH-003-18 54.9 metres @ 0.13 g/t Ag, 309 ppm As, 46 ppm Sb and 5.0 ppm Te from 36.6 metres
    • Including 15.2 metres @ 0.34 g/t Ag, 1038 ppm As, 96.4 ppm Sb and 16.5 ppm Te from 56.4 metres

Mawson continues to work with a landholder under lease arrangements. The project is of merit, and Mawson is reviewing potential future joint venture, strategic alliance, or corporate transactions for the WUSA project, while focusing on its flagship gold project in Finland where four rigs remain in operation around the clock.

Technical and Environmental Background

One diamond drill rig from the Idea Drilling LLC of Virginia, Minnesota was used for the program. Core diameter was HQ (63.5 mm). Core recoveries were moderate and averaged 90% in fresh rock. After photographing and logging in Mawson’s Oregon facilities, core intervals averaging 1.5 metres were cut in half at ALS Chemex’s facilities in Reno Nevada. The remaining half core has been retained for verification and reference purposes. Analytical samples were prepared and analyzed for gold and multi-element geochemistry at ALS Chemex using the Au-ICP22 and ME-MS61 techniques. 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. In addition, ALS inserts blanks and standards into the analytical process.

The qualified person for Mawson's projects, Dr. Nick Cook, President for Mawson and a 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 Limited is an exploration and development company. Mawson has distinguished itself as a leading Nordic Arctic exploration company with a focus on the flagship Rajapalot gold project 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.

Table 1: Collar Information from 2018 drilling at the WUSA Project (NAD27 Grid, Projection UTM Zone 10N)

HoleID East North Azimuth Dip Depth (m) Prospect
HDH-001-18 512830.0 4816186.0 341.9 -58.7 395.6 Huckleberry
HDH-002-18 513045.0 4816413.0 350.0 -60.0 112.8 Huckleberry
HDH-003-18 513045.0 4816413.0 351.2 -65.6 282.8 Huckleberry
SDH-001-18 495294.0 4822665.0 295.2 -58.3 241.7 Scorpion

Table 2: Drill hole SDH-001-18: Assays above 0.2 g/t gold (detection limit 0.001 g/t Au). More significant assays are highlighted in bold.

From (m) To (m) Interval (m) Sample ID Au g/t
SDH-001-18 19.8 21.3 1.5 265770 0.07
SDH-001-18 21.3 22.9 1.5 265771 0.14
SDH-001-18 22.9 24.4 1.5 265772 0.15
SDH-001-18 24.4 25.0 0.6 265773 0.43
SDH-001-18 25.0 25.6 0.6 265774 3.25
SDH-001-18 25.6 27.4 1.8 265775 0.07
SDH-001-18 27.4 29.0 1.5 265776 0.20
SDH-001-18 29.0 30.5 1.5 265777 0.04
SDH-001-18 41.2 42.7 1.5 265785 0.07
SDH-001-18 105.2 106.7 1.5 262004 0.04
SDH-001-18 106.7 108.2 1.5 262005 1.59
SDH-001-18 108.2 109.7 1.5 262006 0.03
SDH-001-18 109.7 111.3 1.5 262007 0.03
SDH-001-18 120.4 121.9 1.5 262014 0.05
SDH-001-18 121.9 123.4 1.5 262015 0.02
SDH-001-18 123.4 124.1 0.6 262016 0.29
SDH-001-18 124.1 125.0 0.9 262017 0.03
SDH-001-18 125.0 126.5 1.5 262018 0.03
SDH-001-18 129.5 131.1 1.5 262022 0.14
SDH-001-18 131.1 132.6 1.5 262023 0.03
SDH-001-18 132.6 134.1 1.5 262024 0.03
SDH-001-18 134.1 135.6 1.5 262025 0.02
SDH-001-18 135.6 137.2 1.5 262026 0.03
SDH-001-18 137.2 138.7 1.5 262027 0.02
SDH-001-18 138.7 140.2 1.5 262028 0.03
SDH-001-18 140.2 141.7 1.5 262029 0.95
SDH-001-18 141.7 143.3 1.5 262030 0.37
SDH-001-18 143.3 144.8 1.5 262031 0.07
SDH-001-18 167.6 169.2 1.5 262034 0.10
SDH-001-18 175.3 176.8 1.5 262035 0.10
SDH-001-18 204.2 205.7 1.5 262039 0.02