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Telson Resources Inc. Initiates Preproduction Tests at Campo Morado and is on Schedule for Mid October 2017 Restart of Commercial Production

Production Results Mine Development & Operations

Telson Resources Inc.

TSX.V: TSN    OTCBB: SOHFF

Shares Issued: 104,721,348

  Page  1 of 3

Telson Resources Inc. Initiates Preproduction Tests at Campo Morado and is on

Schedule for Mid October 2017 Restart of Commercial Production

Vancouver, British Columbia, October 2, 2017

Highlights:

 Mill clean up and refurbishment is nearing completion

 25,000 tonnes mined and stockpiled on coarse ore patio

 5,000 tonnes processed through crushing circuit and stockpiled on crushed ore patio

 Commercial production to re-Start at ~1,400 tonnes per day in next several weeks

Telson Resources Inc. (" Telson" or the " Company") (TSX Venture – TSN.V) is pleased to inform shareholders

that the Campo Morado mill clean up and refurbishment is nearing completion with underground mining operations

being ramped up utilizing two ju mbo drills and additional haula ge trucks that have mined and delivered

approximately 25,000 tonnes to the coarse ore patio.

Ore crushing has been initiated and is progressing normally, to date

accumulating a crushed ore stockpile of at least 5,000 tonnes. T h e

Company plans to stockpile at least 7,000 tonnes of crushed ore as well

as 60,000 tonnes of coarse ore to create more than one constant month

supply of mill feed to sustain steady mineral processing operations.

After completing mill maintenance and refurbishment where neces sary during

September, successful operation tests of the mills grinding, fl otation, thickening

and filtration circuits have been conducted using water. Testin g is continuing,

verifying the continual steady state operational capability of equipment,

instrumentation plus the hermetic integrity of the process circ uit. To this point in

time all equipment, instrumentation and mill circuits are working normally.

Telson is planning to initiate commercial production at an init ial processing rate of approximate 1,400 tonnes per

day at Campo Morado within the next several weeks of October 20 17. As processing techniques are perfected the

Company plans to slowly increase the mines production rate towa rds the mills capacity of 2,500 tonnes per day

over the next six to twelve months.

Please click on the following links to view videos of various operation underway at Campo Morado 

1 Trucking Mined Ore to Crusher:  https://youtu.be/fNFRVHEiKgg 

2 Feeding Coarse Ore to Crusher:  https://youtu.be/MGf6P9hDlfI 

3 Crushed Ore Stockpiling:  https://youtu.be/ZTXliHV6oK0 

4 Cyclone and SAG Mill Testing:  https://youtu.be/L8Q3k0XA38I 

5 Mill Control Centre in Operation:  https://youtu.be/fC4rlrXV1m0 

  Telson Resources Inc.

TSX.V: TSN    OTCBB: SOHFF

Shares Issued: 104,721,348

  Page  2 of 3

About Telson Resources Inc. 

Telson Resources Inc. is a Canadian based resource development company advancing two gold, silver and base

metal projects towards production over the coming months of 201 7 and early 2018. Telson's Tahuehueto Project,

located in north-western Durango State, Mexico and its recently acquired Campo Morado Mine in Guerrero, Mexico

purchased from Nyrstar Mining are both polymetallic deposits co ntaining significant gold, silver, lead, zinc and

copper. Telson is currently mini ng ore at Tahuehueto at a rate of approximately 150 tonnes per day and direct

shipping to a toll mill for processing off-site. Subject to securing funding, Telson plans to soon recommence mineral

processing milling operations at Campo Morado while at the same time develop its Tahuehueto Project through the

mine construction phase with an anticipated timeline to be proc essing at the project site in its own mineral

processing facility near the end of the first quarter 2018.

On behalf of the board of directors 

(signed) “Ralph Shearing”  

Ralph Shearing, P.Geol, President 

Qualified Person 

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

of Telson Resources Inc., a Professional Geologist registered i n Alberta as a member of the professional

organization APEGA, and a Qualified Person as defined by NI 43-101. 

Cautionary Note Regarding Forward-Looking Statements 

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

“forward-looking statements” (collectively, “Forward-L ooking Information”) within the meaning of applicable

Canadian securities laws. Forward Looking Information in cludes, 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; success of exploration,

development and bulk sample processing activities; anticipated results of check assay results; and processing plans

at the Atocha Mineral Processing Plant for mineralized material from th e Company’s Tahuehueto project. In

certain cases, Forward-Looking Information can be identifie d 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 explora tion, development, environmental and

other objectives concerning the Tahuehueto Project can be achieved; that the implementation of the selective mining

method will prove feasible based on the results of the bulk sample; that the mineral processing plant recently

acquired by the Company will be successfully installed and commissioned, the continuity of the price of gold and

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

unknown risks, uncertainties and other factors which may c ause 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 c ould 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

  Telson Resources Inc.

TSX.V: TSN    OTCBB: SOHFF

Shares Issued: 104,721,348

  Page  3 of 3

Information contained in this news release to reflect even ts or circumstances after the date hereof or to reflect the

occurrence of unanticipated events. 

Contacts 

Glen Sandwell, Telson Resources Inc. 

Corporate Communications 

[email protected] 

Tel: +1(604)684-8071