LUCA.V · 2018-10-15 12:00:00

News release

Corporate Updates

aN Telson Mining Corporation

C yA TSX.V: TSN OTC Pink: SOHFF

= ws

fF Ne Frankfurt: TSGN.F

TEL_SON Shares Issued: 139,559,153

MINING CORPORATION

Multiple Veins Return Significant Tahuehueto Assays

Vancouver, British Columbia, October 15, 2018

Telson Mining Corporation (‘Telson” or the “Company’) (TSX-V — TSN, OTC Pink - SOHFF, Frankfurt - TSGN (formerly

SQ82)) is pleased to report the following assay results from veins exposed in Level 12 Decline underground

development at its Tahuehueto Mine Project.

Highlights

Vein Width Assays

meters Au_g/t Ag_g/t Cu_% Pb_% Zn_%

N12Creston_778N 3.25 7.10 37.05 0.22 0.93 5.37

N12Creston_778N 6.10 5.04 36.18 0.16 1.82 3.88

N12Creston_778S 8.05 2.52 28.06 0.19 0.84 2.90

N12Perdido NE 4.20 8.02 96.18 2.93 4.99 8.25

N12Perdido SW 4.40 2.62 19.00 1.27 3.84 3.74

As outlined on the company’s previous news release dated October 2, 2018 the Company has been steadily

advancing underground development preparing the Tahuehueto Mine Project for initial startup scheduled during

Q1 2019.

One of the main production declines under development, the N12 Decline has been driven over 120 m exposing

veins of the El Perdido Zone, the El Creston Zone and the newly discovered vein named Enmedio. (View Image

Here). Channel sampling across these veins have returned excellent assay results on multiple faces.

Please refer to the image links below for sample locations and the table below for detailed sample assay results.

Image 1 - Level Plan of N12 Decline Showing Mineralized Vein Structures

Image 2 - Level Plan of El Creston Structure and Veins

Image 3 - Level Plan of El Perdido and Enmedio Veins

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—_

ah — NN

TELSUN

MINING CORPORATION

Vein

N12Perdido NE

N12Perdido SW

N12Enmedio

N12Creston_778N

N12Creston_778S

N12Creston_772S

N12Creston_778S

N12Creston_778N

Sample

1959

1960

1961

1962

1954

1955

1956

1957

1970

1971

1972

1885

1886

1887

1888

1889

2351

2352

2353

2354

2355

2356

2357

2387

2388

2389

2368

2369

2370

2371

2372

2364

2365

2366

2367

Lab

Certificate

DU39721

Total

DU39666

Total

DU39840

Total

DU40120

Total

DU40120

Total

DU40206

Total

DU40174

Total

DU40174

Total

Width

1.00

1.10

1.00

4.20

1.10

4.40

1.10

1.30

0.60

3.00

0.80

1.10

1.70

1.20

1.30

6.10

1.30

1.40

1.20

1.10

1.05

1.20

0.80

8.05

0.50

0.90

0.30

1.70

0.80

0.85

0.70

0.75

0.90

4.00

0.70

0.80

1.05

3.25

Telson Mining Corporation

TSX.V: TSN OTC Pink: SOHFF

Frankfurt: TSGN.F

Shares Issued: 139,559,153

Assays

Au_g/t Ag _g/t Cu_% Pb_% Zn_%

12.42 44 3.30 1.56 4.73

4.47 28 2.91 1.76 8.63

2.68 24 2.47 6.79 9.48

13.38 303 3.09 9.98 9.98

8.02 96 2.93 4.99 8.25

2.01 33 1.7 1.41 2.40

3.81 24 2.08 7.81 2.07

4.41 12 1.04 3.64 9.37

0.27 7 0.24 2.48 1.10

2.62 19 1.27 3.84 3.74

0.93 28 0.12 0.2 0.53

0.02 8 0.00 0.03 0.15

9.71 61 0.61 0.24 0.39

2.29 26 0.17 0.13 0.34

7.98 48 0.10 1.45 2.64

5.48 39 0.19 2.36 6.72

2.54 29 0.21 0.71 2.69

4.60 35 0.07 0.44 0.72

6.55 37 0.18 4.30 6.73

5.04 36 0.16 1.82 3.88

2.86 13 0.11 0.37 0.51

0.73 22 0.18 0.59 1.68

5.91 34 0.20 0.99 3.85

1.20 34 0.14 0.51 3.41

3.07 32 0.18 1.43 6.66

1.30 36 0.30 1.09 2.68

2.96 29 0.24 1.11 2.22

2.52 28 0.19 0.84 2.90

4.47 154 0.55 3.04 4.88

4.38 74 0.15 1.84 1.91

0.66 20 0.07 1.21 1.24

3.75 88 0.25 2.08 2.67

2.57 46 0.31 1.11 5.42

0.45 34 0.30 1.43 2.19

2.21 32 0.25 1.18 2.32

3.89 23 0.18 0.53 1.57

2.11 36 0.33 1.14 2.49

2.20 34 0.28 1.09 2.81

6.97 31 0.31 0.36 8.67

15.40 85 0.49 1.93 11.10

2.21 7 0.03 0.30 0.37

5.37 32 0.12 1.13 3.16

7.10 37 0.22 0.93 5.37

Page 2o0f5

—s Telson Mining Corporation

‘€ 2 TSX.V: TSN OTC Pink: SOHFF

— FON Frankfurt: TSGN.F

TEL_SON Shares Issued: 139,559,153

MINING CORPORATION

All the above samples were submitted to SGS De Mexico. S.A. de C.V. independent laboratory located in

Durango city Mexico. Assay methods utilized were GE_FAA313 for gold and Silver, Multi-element GE_ICP14B and

for lead and zinc over-limits, GO_ICP90Q. Additional detail on assay methodology used can be found on SGS

website at https://www.sgs.mx/en

Antonio Berlanga, CEO, states “The assay values returned, confirm the excellent ore quality and potential of

Tahuehueto. Selective Cut and Fill mining methods to be used during mining operations will ensure the high quality of

mined ore, minimize dilution and help deliver low mining cost. This along with an innovative mine design that is

significantly reducing the required underground development that was envisioned in previous studies, is sure to allow

the Tahuehueto Mine to maximize future profitability for the benefit of all Telson stakeholders including employees,

local communities and shareholders.”

About Telson Mining Corporation

Telson Mining Corporation is a Canadian based mining company with two Mexican gold, silver and base metal

mining projects. Telson is currently in commercial production at its 100% owned Campo Morado Mine in

Guerrero, Mexico. Effective May 15, 2018 Telson declared commercial production at Campo Morado. Telson is

currently producing zinc and lead concentrates with gold, silver and copper as by-products, processing

approximately 2,000+ tons per day through the Campo Morado milling facilities.

Telson's 100% owned Tahuehueto Project, located in north-western Durango State, Mexico is currently in

construction development. Pre-production commenced at Tahuehueto in August 2017, currently mining at a

rate averaging 170 tonnes per day during Sept 1st - 23rd 2018 shipping ore to a third-party toll mill for

processing. Management has a targeted timeline at Tahuehueto to be producing with its own on-site mineral

processing plant, with a designed capacity of at least 1,000 tonnes per day, during the first quarter of 2019.

Regular metal concentrate deliveries and sales are well underway from both projects.

Visit: www.telsonmining.com

On behalf of the board of directors

(signed) “Ralph Shearing”

Ralph Shearing, P.Geol, President and Director

Qualified Persons

This press release was prepared under the supervision and review of Ralph Shearing, P.Geol., President and

Director of Telson Mining Corporation, a Professional Geologist registered in Alberta as a member of the

professional association APEGA, and a Qualified Person as defined by NI 43-101. Data verification by Mr.

Shearing includes personal inspection of the Campo Morado mine site, reviewing mining facilities, drill core,

underground development and discussing work programs and results with geology and mining personnel.

Page 30f5

—s Telson Mining Corporation

‘€ MY TSX.V: TSN OTC Pink: SOHFF

_ gaa Frankfurt: TSGN.F

TEL_SON Shares Issued: 139,559,153

MINING CORPORATION

Cautionary Note Regarding Production Decisions and Forward-Looking Statements

It should be noted that at Tahuehueto, Telson is mining reserves supported by a pre-feasibility published early 2017 while

at Campo Morado pre-production mining is proceeding without the benefit of pre-feasibility or feasibility studies that

outline mineral reserves and has declared commercial production at Campo Morado prior to completing a feasibility

study of mineral reserves demonstrating economic and technical viability. Accordingly, readers should be cautioned that

Telson’s Campo Morado production decision has been made without a comprehensive feasibility study of established

reserves such that there is greater risk and uncertainty as to future economic results from the Campo Morado mine and

a higher technical risk of failure than would be the case if a feasibility study was completed and relied upon to make a

production decision. Telson has completed a preliminary economic assessment (“PEA”) mining study on the Campo

Morado mine that provides a conceptual life of mine plan and a preliminary economic analysis based on the previously

identified mineral resources (see News Release dated November 8, 2017 and April 4, 2018). This will soon be replaced by

a pre-feasibility study (“PFS”) that will allow the application of modifying factors to the mineral resources to allow a portion

of them to be converted to mineral reserves.

Statements contained in this news release that are not historical facts are “forward-looking information” or “forwara-

looking statements” (collectively, “Forward-Looking Information’) within the meaning of applicable Canadian securities

laws. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or

financial performance that is based on assumptions about future economic conditions and courses of action; the timing

and costs of future activities on the Company's properties, such as production rates and increases; success of exploration,

development and bulk sample processing activities and timing for processing at its own mineral processing facility on the

Tahuehueto project site. In certain cases, Forward-Looking Information can be identified by the use of words and phrases

such as “plans”, “expects”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or variations of such words and

phrases. In preparing the Forward-Looking Information in this news release, the Company has applied several material

assumptions, including, but not limited to, that the current exploration, development, environmental and other objectives

concerning the Campo Morado Mine and the Tahuehueto Project can be achieved, the continuity of the price of gold,

zinc, lead and other metals, economic and political conditions and operations. Forward-Looking Information involves

known and unknown risks, uncertainties and other factors which may cause the actual results, performance or

achievements of the Company to be materially different from any future results, performance or achievements expressed

or implied by the Forward-Looking Information. There can be no assurance that Forward-Looking Information will prove

to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, the

Company does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in

this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated

events.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX

venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Page 4of5

aN Telson Mining Corporation

C ite TSX.V: TSN OTC Pink: SOHFF

= w,

fF NN Frankfurt: TSGN.F

TEL_SON Shares Issued: 139,559,153

MINING CORPORATION

For further information about Telson Mining Corporation, please contact:

Glen Sandwell, Corporate Communications Manager

[email protected]

Tel: +1 (604) 684-8071

Page 50f5

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