Mawson Resources Limite d (“Mawson”) or (the “Company”)
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
Phone: +1 604 685 9316 / Fax: +1 604 683 1585
NEWS RELEASE June 03, 2019
MAWSON DRILLS 15.2 METRES @ 8.5 g/t GOLD EQUIVALENT IN 275 METRE STEP OUT AT
PALOKAS, FINLAND
Vancouver, Canada — Mawson Resources Limite d (“Mawson”) or (the “Company”) (TSX:MAW)
(Frankfurt:MXR) (PINKSHEETS: MWSNF) announces gold-cobalt drill results from 2 holes at the Palokas prospect from
the Company’s 100% owned Rajapalot Project in northern Finland. Fourteen holes with full assays remain to be reported
from the 44 drill hole winter program.
In one of the most significant advances made at the Rajapalot gold-cobalt project this year, drill hole PAL0194 intersected
15.2 metres @ 8.5 g/t gold equivalent (“AuEq”), 4.3 g/t gold (“Au”) and 2,566 ppm cobalt (“Co”) from 418.7 metres
(Figures 1-4) and was drilled 275 metres down-plunge from the high-grade gold-cobalt mineralization previously announced
at Palokas. The intersection, in which both visible gold and cobaltite were noted in the core, is located approximately 425
metres down plunge from the surface whereas the nearest previous high-grade drill hole (PAL0030 (10.0 metres @ 10.8
g/t AuEq, 9.9 g/t Au and 562 ppm Co from 110.2 metres) is located about 150 metres down plunge from surface. The
results from this hole effectively triple the potential high-gra de gold-cobalt mineralization trend at Palokas and it remains
open at depth and to the north. This result shows th e strong potential to significantly increase the known resources at
Palokas.
Also noteworthy is the high cobalt content in PAL0194 compared to other holes on the property. The highest-grade interval
in PAL0194 assayed 1 metre @ 23.6 g/t Au and 1.5% Co (47.7 g/t AuEq). The Rajapalot project is a significant and
strategic gold-cobalt resource for Finland with the maiden reso urce positioned as one of Fi nland'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.
Mr. Michael Hudson, Chairman and CEO states: “The 2019 drill program is now delivering across multiple prospects. This is
an extremely strong result, tripling Palo kas’ high grade potential with PAL0194 intersecting 15.2 metres @ 8.5 g/t AuEq
from a 275 metre step out below high-grade mineralization. The targeting of such broad step-outs is a credit to our technical
team, and was developed using careful analysis of the Au-Co grade distribution combined with geophysical conductors,
highlighting the importance of the knowledge gained during the last two drill campaigns across the Rajapalot project area.
The Palokas high-grade zone remains open up and down-plunge of PAL0194 and to the north of the conductive trend.”
PAL0194 validates the Company’s drill targeting methodology and confirms the significant linear down-plunge extensions
to Palokas interpreted from the modelled ground-based el ectromagnetic (“TEM”) conductors. PAL0194 effectively triples
the potential for high-grade mineralization at Palokas with th e mineralized shoot, open up and down plunge, and also to
the north where the limits of the conductive body have not been tested. Other high-grade intersections within the Palokas
shoot include PRAJ0009 (30.8 metres @ 7.9 g/t AuEq , 7.1 g/t Au and 525 ppm Co from 2.5 metres) and PAL0027
(21.3 metres @ 6.2 g/t AuEq, 5.4 g/t Au and 482 ppm Co from 27.5 metres).
Further drilling on the linear high grade trend at Palokas is required, but the similarities to the linear trend at Raja prospect,
located 1.4 kilometres SSE of the Palokas prospect, are immediately evident. Drilling on fans across the plunge of the Au-
Co mineralization at Raja prospect has been the key to successfully targeting high-grade Au-Co mineralization.
Mawson completed 44 holes (PAL0159–PAL0201D1) for 15,059 me tres (two short holes abandoned, one wedged hole)
during the 2019 winter drill season. Results from 2 holes from Palokas prospect are provided here (PAL0194, 200, Tables
1-4). Fourteen holes with full assays re main to be reported that were predominantly drilled down plunge from resource
areas including PAL0191 (Raja) and PAL0198 (South Palokas), wh ere sulphidic (pyrrhotite-rich) intersections with visible
gold provide encouragement.
The Palokas mineralization contains abundant pyrrhotite in a magnesium and iron-rich silicate matrix. The gold occurs as
free grains, most commonly on the margins of sulphides and the high cobalt zones are dominated by the mineral cobaltite.
The pyrrhotite is well connected to create a strong conductor, in the order of 6 times that measured at Raja prospect. The
ground-based model TEM plate extends over 650 metres down plunge and is only terminated by the position of the ground
loop layout. Signs of proximity to mineralization (“near hit”) in drill core include reduced sulphidic rocks and iron-magnesium-
rich silicate minerals. The next deeper hole (PAL0200) reported here did not hit the desired target and is regarded as a
“near-hit” where highly altered and sulphidic (up to 2 wt % S) rocks contained 1.0 metre @ 0.6 g/t AuEq, 0.1 g/t Au & 298
ppm Co from 466.4 metres. Drilling to the north of this location on the high-grade trend is required. The Palokas and South
Palokas prospects appear to anastomose at depth and are now less than 350 metres apart horizontally.
Mawson will continue to release results from the 2019 drill program as assay data become available.
Technical and Environmental Background
The gold equivalent ("AuEq") value used in the resource and th is press release 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 gold and cobalt prices. A long-term price
point has been chosen for both commodities to maintain consistency of reporting indi vidual drill holes against the resource dat ed
December 2018. Approximate spot prices for gold and cobalt are currently $1280/oz and $16/lb respectively.
Assuming a predominant stratabound control, th e true thickness of the mineralized interv al is interpreted to be approximately 9 0% of
the sampled thickness. Quality control duplicates for all holes show good repeatabilit y of gold assays. Intersections are repor ted with a
lower-cut of 0.5g/t gold or 304ppm Co over 2 metre lower cut, except where indicated. No upper cut-off was applied.
Four diamond drill rigs (K3 & K8) from the Arctic Drilling Company OY (“ADC”), Kati OY (“Kati”) and MK Core Drilling OY (“MK”), all with
water recirculation and drill cuttings collection systems were used for the drill program. Core diameter is NQ2 (50.7 mm). Core recoveries
were excellent and average close to 100% in fresh rock. After photographing and logging in Mawson’s Rovaniemi facilities, core intervals
averaging 1 metre for mineralized samples and 2 metres for barren sa mples were cut in half at the Geological Survey of Finland (GTK)
core 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 we re
prepared and analyzed for gold using the PAL1000 technique which involves grinding the sample in steel pots with abrasive media in the
presence of cyanide, followed by measurin g the gold in solution with flame AAS equi pment. Multi-element assays, including cobal t are
determined using the ICP-MS method (IMS-230) of MS Analytical shipped directly from the CRS Minlab Oy facility. The QA/QC program
of Mawson consists of the systematic insertion of certified stan dards of known gold content, du plicate samples by quartering th e core,
and blanks the within interpreted mineralize d rock. In addition, CRS and MS Analytical insert blanks and standards into the ana lytical
process. The qualified person for Mawson's Finnish projects, Dr. Nick Cook, President for Mawson and a Fellow of the Australasi an
Institute of Mining Metallurgy has reviewed and verified the contents of this release.
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 Consultants 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 “q ualified persons” as defined by Nationa l
Instrument 43-101. The NI 43-101 Technical Re port may be found on the Company’s website at www.mawsonresources.com or under
the Company’s profile on SEDAR at www.sedar.com.
About Mawson Resources Limited (TSX:MAW, FRANKFURT:MXR, PINKSHEETS:MWSNF)
Mawson Resources Limited is a sustainable and ethical exploration and developm ent company. Mawson has distinguished itself as a
leading Nordic Arctic exploration company with a focus on the flagship Rajapalot gold-cobalt project in Finland, a significant and strategic
gold-cobalt resource for Finland with the maiden resource 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.
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 securitie s laws (collectively,
"forward-looking statements"). All statements herein, other than statements of historical fact, are forward-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, anticipate, 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 results
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, ch anges in equity markets, planned drill programs and results var ying from expectations,
delays in obtaining results, equipment failure, unexpected geological conditions, local community relations, dealings with non-governmental organizations,
delays in operations due to permit grants, environmental 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 o n 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.
Figure 1: Plan of Palokas prospect area indicating drill results, the outline of 43-101 resource (blocks above 2 g/t AuEq), modelled ground TEM plates over
a Lidar background. For more detailed location information, refer to press release of April 23, 2019. Note that Figure 3 is essentially a view down onto the
plane of the northwest dipping TEM conductors.
Figure 2: Longitudinal section at Palokas prospect showing the cons iderable area (hatched pattern) to be tested with future dri ll programs. The view is
towards 063 degrees. The blocks from within existing resources are shown along with the modelled TEM plates. See Figure 1 for plan view location of the
section.
Figure 3: Contoured projection of grade-width intersections in gold equivalent terms made onto a northwesterly dipping plane (i .e. the view is looking
down on an angle (60 degrees) from the northwest towards the southeast). Note the large hatched area in this projection showing the area to the north
(left) and down plunge to the NW with just a single drill hole . The TEM conductors have been removed for simplicity, but lie wi thin the surface of this
image.
Table 1: Collar Information from 2019 Winter drilling at the Rajapalot Project (Finnish Grid, Projection KKJ3)
HoleID East North Azimuth Dip RL Depth Prospect Comment
PAL0159 3408545.8 7372603.5 56 -71 179.162 473.8 Raja Au results Mar 04
2019
Co results Apr 23
2019
PAL0160 3408485.8 7372581.1 67 -79 177. 865 447 Raja Au and Co
results Apr 23
2019
PAL0161 3408696.1 7372556.6 57 -75 179.24 405.8 Raja Au results Mar 04
2019
Co results Apr 23
2019
PAL0162 3408446.4 7372648.4 46 -84.5 180. 158 482.9 Raja Au results Mar 04
2019
Co results Apr 23
2019
PAL0163 3408487.0 7372587.9 65 -73.5 178.218 470.05 Raja Au results Mar 04
2019
Co results Apr 23
2019
PAL0164 3408545.4 7372603.2 61. 1 -75.6 178.586 441.7 Raja Au and Co
results Apr 23
2019
PAL0165 3408612.7 7372312.2 60 -79 176.25 167.9 Raja Au results Mar 04
2019
Co results Apr 23
2019
PAL0166 3408897.7 7372385.3 240 -83 170. 452 238.6 Raja Au and Co
results Apr 23
2019
PAL0167 3408486.0 7372587.0 96 -85 178 398.6 Raja Au results Mar 04
2019
Co results May
28 2019
PAL0168 3408554.5 7372806.4 233 -83 173.987 45.6 Raja Abandoned hole
PAL0169 3408553.5 7372806.4 233 -83 173.987 545.8 Raja Au and Co
results Apr 23
2019
PAL0170 3408713.0 7372255.4 60 -79 172.803 200.2 Raja Results Awaited
PAL0171 3408603.8 7372636.0 58 -73 179.753 497.6 Raja Au and Co
results Apr 23
2019
PAL0172 3408447.4 7372648.4 47 -79.5 180. 158 491.9 Raja Au and Co
results Apr 23
2019
PAL0173 3408255.8 7373707.9 116 -56 173.48 427.9 South Palokas Au results Mar 04
2019
Co results
awaited
VG
PAL0174 3408255.8 7373707.9 116 - 69.5 173.48 8.3 South Pa lokas Abandoned hole
PAL0175 3408830.5 7372237.5 60 -74 172.071 120.1 Raja Au and Co
results May 28
2019
PAL0176 3408937.3 7372300.3 240 -79.5 173.012 140.0 Raja Au and Co
results Apr 23
2019
PAL0177 3408434.0 7372388.0 240 -60 176.1 250.5 Rumajärvi Au and Co
results May 13
2019
PAL0178 3408225.9 7372340.1 60 -75 177.064 237.2 Rumajärvi Results awaited
PAL0179 3408105.5 7372350.5 60 -80 180.572 209.0 Rumajärvi Au and Co
results May 13
2019
PAL0180 3408128.3 7372706.1 41 - 61 173.634 778.65 Terry's Hammer Results Awaited
PAL0181 3407954.6 7372245.0 150 -60 177.834 161.7 Rumajärvi Au and Co
results May 13
2019
PAL0182 3407944.8 7372476.5 60 -70 176.8 439.65 Rumajärvi Au and Co
results May 13
2019
PAL0183 3408094.0 7372422.1 160 -70 178.624 170.0 Rumajärvi Au and Co
results May 13
2019
PAL0184 3407754.4 7372867.6 120 -50 173.07 211.8 Rumajärvi Au and Co
results May 13
2019
PAL0185 3407900.4 7372519.6 60 -68 173.064 381.1 Rumajärvi Results Awaited
PAL0186 3407905.2 7372446.2 55 -75 174.386 341. 85 Rumajärvi Results Awaited
PAL0187 3408547.0 7372492.4 47 -63.5 176.807 474 Raja Au and Co
results May 28
2019
PAL0188 3408630.2 7372440.6 53 -63.5 176. 974 379.4 Raja Au and Co
results Apr 23
2019
PAL0189 3408768.8 7372378.8 48 -77 173.301 245.5 Raja Co results May
28 2019
PAL0190 3408576.2 7372512.8 63 -65 177. 732 427.9 Raja Au and Co
results May 28
2019
PAL0191 3408547.0 7372492.4 44 -58.5 176.807 492.1 Raja Results Awaited
VG
PAL0192 3408221.8 7373180.6 130 -60 171. 892 203.2 Hut Results Awaited
PAL0193 3408255.3 7373706.4 104 -53 173.478 427.15 South Palokas Results Awaited
PAL0194 3408312.2 7373980.0 74 -57 173.8 497.8 Palokas Results here
VG
PAL0195 3408353.9 7373580.2 65 -77 174.918 245.6 South Palokas Results Awaited
PAL0196 3408089.1 7373031.9 90.5 -60 172. 308 317.4 Hut Results Awaited
PAL0197 3408271.4 7373630.1 63 -66.5 173.603 466.8 South Palokas Results Awaited
PAL0198 3408414.1 7373660.3 117 -70 174.417 296. 2 South Palokas Results Awaited
VG
PAL0199 3408126.6 7373140.2 215 -80 173.042 386.7 Hut Results Awaited
PAL0200 3408312.2 7373979.0 62 -61.8 173. 8 536.8 Palokas Results here
PAL0201 3408545.8 7372603.5 57 -67.25 179.162 281.0 Raja Results Awaited
PAL0201D1 3408545.8 7372603.5 57 -67.25 179.162 195.0-
392.2
Raja Results Awaited
Table 2: Better intersections report from the 2019 Winter Drill Program.
Intersections are reported with a lower cut of 0.5g/t gold over 2 metre lower cut except where highlighted with **. No upper cut-off was applied.
Prospect Hole_id from to width AuEq Au Co
Raja PAL0159 419.0 437.0 18.0 1.4 0.5 547
including 419.0 420.2 1.2 0.8 0.2 378
including 422.0 426.0 4.0 2.5 0.3 1377
Raja PAL0159 434.0 437.0 3.0 3.4 2.3 672
Raja including 429.0 432.0 3.0 0.9 0.1 488
Raja PAL0159 451.0 455.5 4.5 3.2 1.9 754
Raja PAL0161 305.5 313.0 7.5 1.1 0.0 636
Raja PAL0161 336.0 338.0 2.0 2.7 2.1 362
Raja PAL0161 344.0 349.0 5.0 3.3 2.3 600
Raja PAL0162 323.0 324.0 1.0 1.2 0.0 701
Raja PAL0162 452.0 453.0 1.0 0.9 0.0 562
Raja PAL0163 416.6 419.4 2.8 10.9 0.0 6604
Raja PAL0164 406.0 414.3 8.3 1.3 0.4 519
Raja PAL0164 418.4 419.7 1.3 0.9 0.0 546
Raja PAL0166 55.3 56.3 1.0 0.6 0.1 355
Raja PAL0166 67.8 68.8 1.0 1.0 0.0 568
Raja PAL0166 76.6 77.6 1.0 1.1 0.1 596
Raja PAL0166 79.3 80.3 1.0 1.6 0.0 958
Raja PAL0169 522.3 524.4 2.1 0.7 0.1 368
Raja PAL0171 299.0 300.1 1.1 0.9 0.0 528
Raja PAL0172 120.0 122.0 2.0 0.9 0.0 541
Raja PAL0172 329.0 332.0 3.0 1.0 0.0 573
South Palokas PAL0173 232.8 233.7 0.8 0.5
South Palokas PAL0173 264.0 281.0 17.0 3.4
including 264.0 269.0 5.0 4.9
including 276.1 281.0 4.9 4.6
South Palokas PAL0173 380.0 381.1 1.1 0.8
South Palokas PAL0173 384.8 385.8 1.0 2.0
Raja PAL0176 14.0 15.6 1.6 2.5 2.4 58
Raja PAL0176 20.5 31.9 11.4 1.4 0.8 382
Raja PAL0176 33.8 35.7 1.9 1.2 1.0 105
Raja PAL0176 49.0 52.0 3.0 4.0 3.8 86
Rumajärvi PAL0179 6.0 10.7 4.7 1.9 1.0 578
Rumajärvi PAL0179 37.0 38.0 1.0 0.6 0.1 311
Rumajärvi PAL0179 39.0 40.0 1.0 1.0 0.0 592
Rumajärvi PAL0179 48.0 51.0 3.0 0.6 0.0 344
Rumajärvi PAL0179 73.8 76.3 2.5 0.6 0.1 342
Rumajärvi PAL0182 86.3 93.7 7.4 4.4 3.4 597
Rumajärvi PAL0183 54.3 55.1 0.8 1.6 0.4 728
Rumajärvi PAL0183 112.3 114.2 1.9 0.7 0.1 364
Rumajärvi PAL0183 142.5 143.1 0.6 2.8 2.2 340
Rumajärvi PAL0184 117.6 118.6 1.0 1.7 1.3 206
Raja PAL0187 400.4 401.8 1.4 2.3 0.1 1345
Raja PAL0187 416.0 417.0 1.0 1.1 0.0 684
Raja PAL0188 298.3 329.6 31.3 6.0 4.3 1030