Telson Mining Corp Issues Correction to Press Release Announcing Renewable Power Purchase Agreement
Telson Mining Corporation
TSX.V: TSN OTC Pink: SOHFF
Frankfurt: TSGN.F
Shares Issued: 139,559,152
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Telson Mining Corp Issues Correction to Press Release Announcing
Renewable Power Purchase Agreement
Vancouver, British Columbia, October 31, 2018
Telson Mining Corporation (“ Telson” or the “ Company”) (TSX-V – TSN, OTC Pink – SOHFF, Frankfurt – TSGN
(formerly SQ82)) would like to issue a correction to its news release issued today reporting the conclusion of
a renewable power purchase agreement “ Green Energy Agreement” for Campo Morado mine. It was
incorrectly reported that the estimated equivalent value converted to Canadian dollars was CAD$0.72 per
kilowatt hour (kWh). The correct cost is approximately CAD$0.072 per kWh at current exchange rates . This
change has been applied and the corrected version of the news release follows:
Highlights
• A 10-year term take-or-pay purchase agreement for renewable sources generated electrical energy at
a cost of MXN$1.10 per kilowatt hour (kWh) or equivalent to CAD$0.072 per kWh at current exchange
rates
• Green Energy Agreement comes into effect no later than June 2019
• Telson committed to 42.00 GWh per year
• Under the Green Energy Agreement, the cost per kWh is approximately 32% lower than the last nine-
month average price paid and approximately 54% lower than September’s kWh price alone
• Estimated operating cost savings of approximately CAD$2 million during the first-year equating to an
estimated 3.5% decrease in overall current operating costs
• Telson will comply with the latest local regulatory requirements of renewable energy use in Mexico
Telson has concluded a renewable power purchase agreement “Green Energy Agreement” with Energia Solar
Alaia IV, S.A.P.I de C. V. (“Energia Solar”), as part of the Company’s ongoing efforts to reduce its environmental
footprint and to reduce mine operating costs over the long term.
Under the terms of the Green Energy A greement, the Company is committed to purchase 42 .00 GWh of
electrical power per year from Energia Solar at an inflation -indexed fixed price of MXN$1.1 kWh for a period
of ten years. The ten-year term agreement can be extended by mutual agreement and the electrical power
and rates comes into effect no later than June 1, 2019 or upon completion of the construction of Energia
Solar’s renewable energy plant.
Over the past nine months of operations at Campo Morado mine, the power consumption purchased from
Comision Federal de Electricidad (“CFE”) was on average 32% higher than the costs per kWh negotiated under
the Green Energy A greement. Likewise, compared to September’s purchase price the cost per kWh is about
54% lower than the CFE’s escalating costs.
Telson Mining Corporation
TSX.V: TSN OTC Pink: SOHFF
Frankfurt: TSGN.F
Shares Issued: 139,559,152
Page 2 of 3
“The renewable power purchase agreement with Energia Solar , provides Telson with a steady supply of
renewable source generated power at an inflation-indexed fixed price that will significantly reduce
environmental footprint and reduce operating costs and future profitability. Additionally, th is agreement
satisfies local regulations that require Campo Morado mine to use a minimum of 25% g reen generated
energy.” states Antonio Berlanga, CEO “It is also a significant step forward for Telson to do its part in the world-
wide battle against global warming”
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
under development. Pre-production commenced at Tahuehueto in August 2017, currently mining at a rate
around 200 tonnes per day and 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.
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,
Telson Mining Corporation
TSX.V: TSN OTC Pink: SOHFF
Frankfurt: TSGN.F
Shares Issued: 139,559,152
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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 “forward-
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 sev eral 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 Forw ard-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.
For further information about Telson Mining Corporation, please contact:
Glen Sandwell
Corporate Communications Manager
Tel: +1 (604) 684-8071