MAWSON DRILLS 5,040 METRES IN FIRST MONTH OF ITS 2019 GOLD & COBALT EXPLORATION PROGRAM, First Assays Expected Early March
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
Phone: +1 604 685 9316 / Fax: +1 604 683 1585
NEWS RELEASE FEBRUARY 21, 2019
MAWSON DRILLS 5,040 METRES IN FIRST MONTH OF ITS 2019 GOLD & COBALT EXPLORATION PROGRAM,
First Assays Expected Early March
Vancouver, Canada – Mawson Resources Limited (“Mawson”) or (the “Company”) (TSX:MAW, Frankfurt:MXR,
PINKSHEETS: MWSNF) announces a drill and permitting update from Finland.
Highlights:
➢ Mawson commenced drilling Jan 21, 2019 and continues to drill with four rigs operating 24/7 executing a 15,000
metre drill program . Fourteen holes for 5,040 metres were completed in the first month of drilling, with first assay
results expected to be available in early March;
➢ The drilling is targeting electromagentic geophysical (“EM”) plates that are contiguous and extend down plunge from
the constrained Inferred Mineral Resources of 424,000 ounces of gold at 3.1 g/t AuEq, with a focus on the Raja,
South Palokas and Palokas prospects . At the same time geophysical crews continue to survey and define further
targets along the known 4 kilometre trend;
➢ The recent decision by the Finnish mining authority (“TUKES”) in relation to the 1,462-hectare Kairamaat 2 /3
exploration permit allows Mawson to drill from 200 drill platforms (from 529 optional sites) plus 76 existing drill
platforms for an additional 3 years;
➢ As a standard part of Finni sh Administrative Law, appeals on the granted exploration permit by the mining authority
were lodged by two parties during the 30-day window. A local Non-Governmental Organization (“NGO”) appealed on
general grounds , which was expected, and Parks & Wildlife Finland, Lapland (“Metsähallitus”) appea led a specific
issue of a buffer zone around an eagle nest . Appeals were not received from key stakeholders including the official
environmental authority (“ELY”), reindeer herders nor anyone in the local community. Drilling will continue during the
appeal period.
Mr Hudson, Chairman & CEO states, "Four rigs continue to target EM extensions below and along strike from the maiden
resource area. We have seventy people employed at site and highly anticipate the release of the first batch of assay results
from the laboratory in the coming weeks. The new exploration permit which provides a three -year runway for drilling from
200 new drill platforms is a game changer for Mawson. We have dealt with the Finnish appeal system for each drill program
over the long term, and we are very happy to have reached agreement with all environmental authorities on how exploration
in the area should be conducted over the next 3 years. In combination with the wonderful support from local communities,
we can now continue exploring without further delays.”
Geophysical EM surveying is ongoing at Rajapalot, and is driving the 15,000 metre winter drill campaign focused on resource
expansion. The EM plates are generated by sulphide minerals that also are associated with the gold and cobalt
mineralization and at least double the footprint of known mineralization. The drill program initially aims to test the down -
plunge and lateral extents of the Raja, South Palokas and Palokas mineralization. To date 14 drill holes for 5,040 metres have
been completed in the first month of drilling of the 15,000 metre program , with first assay results available in early March.
Approximately 70 people are employed at site.
The Finnish Mining Authority, TUKES, the responsible permitting authority, made a clear decision to renew the Kairamaat 2/3
permit for 3 years, while ensuring all environmental values of the permit area will not be impacted. The ruling was based on
Mawson’s new and comprehensive Natura assessment with certain mitigation procedures to avoid impacts on the natural
environment. Statements or consolidating evidence supporting Mawson’s permit renewal were received from independen t
Finnish Professorial experts and the local Ylitornio municipality, while the national environmental regulator, ELY’s statement
outlined that Mawson’s work also, according to the permit conditions, will not produce any significant impacts.
As is standard under Finnish Administrative Law, all governmental decisions are appealable within 30 days. Two appeals were
lodged by a local NGO group and Metsähallitus. The e nforcement order in place allows ongoing drilling until both appeals are
addressed by the Admi nistrative Court. This process can take up to 18 months. The Metsähallitus appeal relate s to a
specific technical and narrow detail related to a buffer around an eagle nest and was not against the permit conditions nor
the enforcement order. Only the Administrative Court has the power to cancel an enforcement order, a possible, yet unlikely
outcome, given the support from independent legal experts and the view of ELY . The enforcement order allows Mawson to
drill from 200 drill platforms (from 529 optiona l sites) plus 76 existing drill platforms within the 1,462 hectare Kairamaat 2 -3
exploration permit area for an additional 3 years, according to specific exploration methods that can be undertaken within
Natura 2000 areas, including but not limited to diamond drilling, base-of-till drilling and geophysics.
According to the Finnish Mining Act, after the first renewal period of up to 4 years, exploration permits in Finland can be
renewed in 3-year maximum intervals, for a combined total of 15 years. The Kairamaat 2 -3 exploration permit area was first
granted to Mawson as exploration claims in October 2011 under an older version of the Mining Act, and then renewed in
June 2014. Due to expanded work programs and a new Natura Assessment, the new permit decision of 18 January, 2019
replaces a superseded permit decision made on January 12, 2018. In summary, Mawson has 8 years 9 months remaining of
its 15-year permit time at Kairamaat 2-3.
In other news, Mawson welcomes all to visit management and board members at the Prospectors and Developers Association
of Canada (“PDAC”) meeting from Sunday March 03 to Wednesday 06 2019 at Booth #2941 and at the Core Shack Booth
#3104B (05-06 March 2019).
Technical Background
The qualified person for Mawson, Mr. Michael Hudson, Chairman and CEO for Mawson and Fellow of the Australasian Institute of Mining
Metallurgy has reviewed and verified the contents of this release.
About Mawson Resources Limited (TSX:MAW, FRANKFURT:MXR, PINKSHEETS:MWSNF)
Mawson Resources Limited is an exploration and development company with a focus on the resource expansion of its high -grade Rajapalot
gold-cobalt in Finland. Mawson has distinguished itself as a leading Nordic Arctic exploration company.
Four diamond drill rigs (K3 & K8) from the Arctic Drilling Company OY (“ADC”), one from MK Core Drilling OY (“MK”), and one from KATI
OY (“KATI”) all with water recirculation and drill cuttings collection systems were used for the drill program. Core diameter is NQ2 (50.7
mm) diameter core. After photographing and logging in Mawson’s Rovaniemi facilities , core intervals averaging 1 metre for mineralized
samples and 2 metres for barren samples were cut in half at the Geological Survey of Finland (GTK) c ore facilities in Rovaniemi, Finland .
The remaining half core is retained for verification and reference purposes. Analytical samples were transported by Mawson personnel or
commercial transport from site to the CRS Minlab Oy facility in Kempele, Finland. Samples were prepared at Kempele and analyzed for gold
at Raahe using the PAL1000 technique which involves grinding the sample in steel pots with abrasive media in the presence of cyanide,
followed by measuring the gold in solution with flame AAS equipment . The QA/QC program of Mawson consists of the systematic insertion
of certified standards of known gold content, duplicate samples by quartering the core, and blanks the within interpreted mineralized rock.
In addition, CRS inserts blanks and standards into the analytical process.
Rajapalot is a significant and strategic gold- cobalt resource for Finland with the recently published maiden resource already positioned as
one of Finland's current top three gold resources by grade and contained ounces and one of a small group of cobalt resources prepared in
accordance with NI 43 -101 policy within Europe. A pit and underground Constrained Inferred Mineral Resource of 424,000 ounces of gold
equivalent ("AuEq") at 3.1 g/t AuEq (4.3 million tonnes at 2.3 g/t Au, 430 ppm Co) at 0.37 g/t AuEq cut -off open pit and 2 g/t AuEq
underground was calculated, within a combined Unconstrained Inferred Mineral Inventory for the Palokas and Raja prospects of 482,000
ounces AuEq at a grade of 2.4 g/t AuEq (6.2 million tonnes at 1.7 g/t Au, 410 ppm Co) at 0.4 g/t AuEq cut -off. The constrained resource
demonstrates the high-grade of Rajapalot with open-pittable grades of 2.8 g/t AuEq (2.1 g/t Au and 420 ppm Co) and underground grades
of 5.2 g/t AuEq. The calculation represents the first resource estimate for the Rajapalot Gold-Cobalt Project and has substantial potential to
grow, with only 20% (800 metres) of the 4 kilometres known mineralized trend included within the maiden resource to relativel y shallow
depths (average depth of drilling 88 metres within 34.2 kilometres drilled to date at Rajapalot)
NI 43-101 Technical Report:
On December 19, 2018, Mawson filed an independent National Instrument 43 -101 Technical Report (the “NI 43-101 Technical Report”) on
the Mineral Resource Estimate for the Raja and Palokas Prospects, at the 100% owned Rajapalot Project in Finland, (the “ NI 43-101
Technical Report ”), in support of the Company’s news release dated December 17, 2018 . The NI 43 -101 Technical Report was
authorized by Mr. Rod Webster of AMC Con sultants Pty Ltd (“AMC”) of Melbourne, Australia, and Dr. Kurt Simon Forrester of Arn
Perspective of Surrey, England. Each of Mr. Webster and Dr. Forrester are independent “qualified persons” as defined by Natio nal
Instrument 43-101. The NI 43-101 Technical Report may be found on the Company’s website at www.mawsonresources.com or under the
Company’s profile on SEDAR at www.sedar.com. The gold equivalent ("AuEq") val ue was calculated using the following formula: AuEq g/t
= Au g/t + (Co ppm/608) with assumed prices of Co $30/lb; and Au $1,250/oz. AuEq varies with Au and Co prices.
On behalf of the Board,
"Michael Hudson"
Michael Hudson, Chairman & CEO
Further Information
www.mawsonresources.com
1305 – 1090 West Georgia St., Vancouver, BC, V6E 3V7
Mariana Bermudez (Canada), Corporate Secretary, +1 (604) 685 9316,
Forward-Looking Statement
This news release contains forward -looking statements or forward -looking information within the meaning of applicable securities laws (collectively,
"forward-looking statements"). All statements herein, other than statements of historical fact, are for ward-looking statements. Although Mawson believes
that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically
identified by words such as: believe, expect, anticip ate, intend, estimate, postulate, and similar expressions, or are those, which, by their nature, refer to
future events. Mawson cautions investors that any forward -looking statements are not guarantees of future results or performance, and that actual resu lts
may differ materially from those in forward -looking statements as a result of various factors, including, but not limited to, capital and other costs varying
significantly from estimates, changes in world metal markets, changes in equity markets, plann ed drill programs and results varying from expectations,
delays in obtaining results, equipment failure, unexpected geological conditions, local community relations, dealings with no n-governmental organizations,
delays in operations due to permit grants, e nvironmental and safety risks, and other risks and uncertainties disclosed under the heading "Risk Factors" in
Mawson's most recent Annual Information Form filed on www.sedar.com. Any forward -looking statement speaks only as of the date on which it is made
and, except as may be required by applicable securities laws, Mawson disclaims any intent or obligation to update any forward -looking statement, whether
as a result of new information, future events or results or otherwise.