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Telson Resources Inc. Restarts Operations for Production at Campo Morado

Production Results Mine Development & Operations

Telson Resources Inc.

TSX.V: TSN    OTCBB: SOHFF

Shares Issued: 107,071,371

  Page  1 of 4

Telson Resources Inc. Restarts Operations for Production at Campo Morado

Vancouver, British Columbia, October 23, 2017

Highlights:

 Starting at a mining and processing rate of 1,400 tonnes per day

 Production expected to increase to 2,500 tonnes per day during the next 6 to 12 months

 First concentrate shipments expected to be sent to Trafigura first week November 2017

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

that ore processing at an initial mill throughput start up rate of approximately 1,400 tonnes per day has been initiated

at the Company’s 100% owned Campo Morado Mine.

The first two years of production are planned to be mined from the G9 and El Largo ore bodies in areas of elevated

gold and silver values within polymetallic base metal zones having average grades of 1.8 g gold/t, 142.7 g silver/t,

3.99% zinc, 0.62% copper and 1.07% lead.

Telson’s metallurgists’ have conducted numerous metallurgical testing at the mine site laboratory from ore targeted

for mining in the initial months of production. Testing has de termined that by initially removing carbon organic

matter contained within the ore as the first step plus, the add ition of new types of reagents to the flotation process,

recoveries could potentially be improved. To that end, an init ial carbon flotation circuit and new reagents have

been added to the Campo Morado processing plant circuit now in operation.

Telson also intends to add additional flotation cells to the overall circuit over the next several months to potentially

further increase recoveries of all metals. Telson points out th at that there are no guarantees any of these

modifications to the processing circuit will prove successful and cannot be assured that recoveries will be increased

above previous historical recoveries.

  Telson Resources Inc.

TSX.V: TSN    OTCBB: SOHFF

Shares Issued: 107,071,371

  Page  2 of 4

Telson plans to increase the mine’s production rate toward the mill’s current capacity of 2,500 tonnes per day

over the next six to twelve months.

Over the past month the Company has been mining underground and has delivered approximately 29,500 tonnes

of the coarse ore to the mill site crushing patio and to date has accumulated a crushed ore stockpile of at least

9,000 tonnes.

“After almost three years of inactivity at Campo Morado while t he mine was shut down in care and maintenance,

our recently re-hired mining team of technical professionals and employees have been diligently cleaning, servicing,

repairing where necessary and rehabilitating underground access to the planned mining areas and their excellent

work has allowed Telson to restart mining and milling operation s for production at this exciting mine in less than

four months from its acquisition.” states Antonio Berlanga, Tel son’s CEO. “With Campo Morado back in

production, we can now bring long term economic benefit to over 250 current employees and their families, the

local communities within the area as well as municipal, state and the federal governments of Mexico.”

Please click on the following links to view videos of mill start‐up activities at Campo Morado 

1 – Initiating startup of concentrate processing

2 – Ore on its way to the Ball Mill

3 – Inspecting the flotation circuit

4 – Celebrating the start of processing at Camp Morado

  Telson Resources Inc.

TSX.V: TSN    OTCBB: SOHFF

Shares Issued: 107,071,371

  Page  3 of 4

About Telson Resources Inc. 

Telson Resources Inc. is a Canadian based mining company with 100% ownership of two operating gold, silver and

base metal mines within Mexico. Telson's Tahuehueto Project, located in north-western Durango State, Mexico and

its recently acquired Campo Morado Mine in Guerrero, Mexico. Both operations are polymetallic mines containing

significant gold, silver, lead, zinc and copper. Telson is curr ently mining 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 initiate the construction of a commercial mining operation on its Tahuehueto project, with

an expected timeline to be completed and operational at the mine site during the summer of 2018. As of the date of

this press release Telson has restarted mining and milling oper ations thereby initiating production of concentrates

at its recently acquired Campo Morado Mine.

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 mine production rate, mill processing modifications

and increases in mill processing capacity. 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 severa l material assumptions, including, but not limited to, that the current

exploration, development, environmental and other obj ectives concerning the Cam po Morado and Tahuehueto

Project can be achieved; that processing techniques will be improved to increase production rate; 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 cause the actual results, performance

or achievements of the Company to be materially diff erent from any future results, performance or achievements

expressed or implied by the Forward-Looking Informati on. 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

  Telson Resources Inc.

TSX.V: TSN    OTCBB: SOHFF

Shares Issued: 107,071,371

  Page  4 of 4

anticipated in such statements. Accordingly, read ers 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 Informati on contained in this news release to reflect events 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