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Telson Resources Inc. Obtains Two Semarnat Permits, One for Tailing Facility Reactivation Plus Another for Construction of New and Expanded Tailing Facility at Tahuehueto

Mine Development & Operations Permits & Approvals

Telson Resources Inc. Obtains Two Semarnat Permits, One for

Tailing Facility Reactivation Plus Another for Construction of New

and Expanded Tailing Facility at Tahuehueto

Vancouver, British Columbia, August 22, 2017 – Telson Resources Inc. (“Telson” or the “Company”) (TSX

Venture – TSN.V) is pleased to announce that it has received pe rmits from Semarnat (Secretaria de Medio

Ambiente y Recursos Naturales) (“Semarnat”) for the reactivation of the existing tailings disposal facility and

for the construction of a new larger tailings facility for the Tahuehueto Project, located in northwestern

Durango State, Mexico.

The reactivation of the existing tailing facility will allow dr y stack tailings disposal under the Company’s

current operating plan for Ta huehueto. This tailings facility c overs 3.78 hectares, has an authorized tailing

capacity of 382,622 m3 and is now permitted for construction upgrade to reactivate and will handle the project’s

initial tailing disposal requirements over the first 1 - 2 years of operation.

The permit granted by Semarnat for the construction of a new ta ilings disposal facility allows for the

installation of a new and larger tailings disposal facility that will easily accommodate the mine plan envisioned

within the Company’s December 6, 2016 Pre-Feasibility Study (th e “PFS” - which is available on SEDAR or

Telson’s website). This new permit covers an area of 9.38 hectares and is aut horized under the Semarnat

permit just granted for an initial capacity of 13,255,407 m 3 which will accommodate tailings from the current

3.264 million tonnes of reserves targeted for mining within the PFS.

At a milling rate of 1,000 tonnes per day, planned to be obtain ed within the first year of operation, Telson

expects to operate under the current Semarnat permit for approximately 11 years. The ultimate capacity of the

new tailings disposal facility at Tahuehueto will allow for approximately 38 years of operation at the projected

mill throughput of 350,000 tonnes per year which will allow for possible expansion of the project upon

successful exploration and development of new reserves and resources.

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 2017 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 polymet allic deposits containing significant gold,

silver, lead, zinc and copper. Subject to securing funding, Tel son plans to recommence mining operations at

Campo Morado within 3 to 5 months while at the same time develop its Tahuehueto Project through the mine

construction phase with an anticipated timeline to be producing at the project site in its own mineral processing

facility by the end of the first quarter of 2018 or earlier.

On behalf of the board of directors

(signed) “Ralph Shearing”

Ralph Shearing, P.Geol

President

Telson Resources Inc.

TSX.V: TSN OTCBB: SOHFF

Shares Issued: 104,149,005

Qualified Person

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

Director of Telson Resources Inc., a Professional Geologist reg istered in 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, “Forw ard-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 perfor mance that is based on assumptions about future

economic conditions and courses of action; the timi ng 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 the Company’s Tahuehueto project. 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 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 recen tly acquired by the Company will be successfully

installed and commissioned, the con tinuity of the price of gold and other metals, economic and political

conditions and operations. Forward- Looking Information involves know n and unknown risks, uncertainties

and other factors which may cause the actual results, p erformance or achievements of the Company to be

materially different from any future results, perform ance 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 assu me 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.

Cautionary Note Regarding References to Resources and Reserves

This news release uses the terms "measured and indi cated resources" and "inferred resources". We advise

U.S. investors that while these term s are defined in, and permitted by, Canadian regulations, these terms are

not defined terms under SEC Industry Guide 7 and not normally permitted to be used in reports and

registration statements filed with the SEC. "Inferred resources" have a great amount of uncertainty as to their

existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any

part of an inferred mineral resource will ever be upgrade d to a higher category. Under Canadian rules,

estimates of inferred mineral resources ma y not form the basis of a feasibility study or prefeasibility studies,

except in rare cases. The SEC normally only permits issuers to report minera lization that does not constitute

SEC Industry Guide 7 compliant "reserves", as in-place tonnage and grade without reference to unit measures.

U.S. investors are cautioned not to assume that any par t or all of mineral deposits in this category will ever

be converted into reserves. U.S. in vestors are cautioned not to assume that any part or all of an inferred

resource exists or is economically or legally minable.

Contacts

Glen Sandwell, Telson Resources Inc.

Corporate Communications

[email protected]

Tel: +1(604)684-8071