Mawson Resources Limited (TSX:MAW) (Frankfurt:MXR) (PINKSHEETS: MWSNF) announces results from three drill holes from The Hut prospect within the Company’s 100% owned Rajapalot Project in northern Finland.

Key Results:

• Drill hole PAL0199 at The Hut prospect intersected multiple gold-cobalt intersections from surface to 280 metres depth including 3.0 metres @ 7.6 g/t gold equivalent, 6.4 g/t Au, 722 ppm Co from 138.4 metres;
• The Hut (Figures 1 & 2) is the fifth prospect within the Rajapalot project to deliver high-grade gold-cobalt results during the 2019 winter program;
• The Hut is located 500 metres from the South Palokas resource and 800 metres to the northwest of the Raja resource area (NI43-101 resource published December 17, 2018). The Hut is an emerging discovery, where 5 electromagnetic conductors remain under-tested and the mineralized trend is open to the west and northwest.

“Strong gold-cobalt drill intercepts from our fifth prospect drilled this year indicate the significant upside that exists beyond known resource areas at Rajapalot” said Mr. Michael Hudson, Chairman and CEO. “Recent drilling focused on testing around resource areas at Palokas, South Palokas and Raja. However, the multiple mineralization intercepts and untested electromagnetic conductors at the sparsely drilled The Hut prospect suggests an important area for resource growth in future drill campaigns.”

Mawson completed 44 holes (PAL0159–PAL0201D1) for 15,059 metres (two short holes abandoned, one wedged hole) during the 2019 winter drill season. Results from three drill holes (PAL0192, 196, & 199; Tables 1-3) from The Hut prospect are reported here, while assays from four holes from other prospects remain to be reported together with a summary of the 2019 winter program highlights.

PAL0199 is the westernmost drill hole completed at The Hut prospect and intersected multiple gold-cobalt intersections from surface to 280 metres depth including:

• 3.0 metres @ 7.6 g/t gold equivalent (“AuEq”), 6.4 g/t Au, 722 ppm Co from 138.4 metres; and
• 5.0 metres @ 1.2 g/t Au from 289.0 metres

PAL0199 targeted the continuation of gold associated with sulphidic and conductive rocks intersected in a single earlier hole, PAL0033 (2.2 metres @ 7.9 g/t AuEq, 7.7 g/t Au, 94 ppm Co from 153.5 metres). A broad zone of low-grade gold in PAL0199 is associated with 91 metres @ 2.2% sulphur from 27.4 metres. A complex regional fold hinge evident in the magnetics (Figure 1) is likely caused by magnetic mafic rocks structurally overlying sulphidic hosts to mineralization.

Five electromagnetic conductors at The Hut prospect remain untested or with single drill holes and the mineralized 330-340 degree known trend is open to the west and northwest (Figure 1). These conductors correspond to high sulphide mineral contents, with over 150 metres of sampled drill core containing more than 1% sulphur (from total drill metres at The Hut of only 1,687 metres completed in 13 drill holes since 2014).

Host rocks to mineralization at The Hut contrast to the well-defined metasedimentary strata hosting mineralization at the Raja and Palokas resource areas. At The Hut, thick and massive, variably grey to pale and deep red albite- and calcsilicate-bearing rocks are interpreted as altered intrusive diorite and granodiorite rocks and present a different target style. Although the stratabound control on mineralization at Raja and Palokas is absent, a zonation of alteration associated with mineralized rocks with greater than 0.5 g/t gold is predictable. Progressive white to light grey massive albitization with increasing biotite in fractures and breccia fill, is commonly followed by foliated biotite- and sulphide-rich rocks. This spatial and temporal zonation of sodic to potassic, sulphidic and gold-cobalt-bearing rocks is a unifying theme of all Rajapalot mineralization. Of interest at The Hut is the potential for vertically extensive gold-cobalt mineralization owing to the massive nature of the host.

Other drill holes reported in this release are PAL0192 (no significant gold or cobalt assays) and PAL0196 (2 metres @ 1.8 g/t AuEq, 1.5 g/t Au, 208 ppm Co from 87.9 metres) drilled across the top and bottom, respectively, of a fold hinge region. Further work with the electromagnetic modelling and structural data gathered from these holes is required for follow-up.

The high-grade gold results combined with the strong silicate and sulphide alteration, multiple structural levels of electromagnetic conductors, large vertical extent to mineralized intervals and sparse drilling make The Hut an important target for drilling in future campaigns.

In other news Mawson has extended its exploration claims by staking a 14,364 hectare claim reservation to the immediate north of its existing 15,527 hectares of exploration permits and permit applications (Figure 2). The new claim reservation targets extensive sequences of conductive graphite-bearing rocks contained within geophysically recognizable packages that extend for 75 kilometres strike within the claim reservation area. Recent diamond drilling by Mawson in the Peräpohja Schist Belt has revealed up to 60 metre thick drill intersections with >10% graphite. Mawson’s focus remains firmly on expanding its gold and cobalt resources, however the new graphite targets have the potential to open a region of graphite mineralization within Finland which require additional investment to determine their extent and potential for lithium ion battery applications.

Comment on Gold Equivalence Calculation

The gold equivalent value used in the 2018 inferred resource and this press release was calculated using the formula: AuEq g/t = Au g/t + (Co ppm/608) with assumed metal prices of Co $30/lb; and Au $1,250/oz. AuEq varies with gold and cobalt prices. Approximate spot prices for gold and cobalt are currently $1,414/oz and $12.50/lb respectively.

The cobalt price has fallen 60% over the past year due mostly to an increase in supply from mines, many artisanal, in the Democratic Republic of Congo. Mawson considers cobalt retains strong fundamentals with demand remaining robust as the electric mobility industry continues to grow and, a long-term price of $20 to $30/lb cobalt (and $1250/oz Au) is therefore reasonable. Prices used in the 2018 inferred resource calculation have been maintained here to ensure consistency of reporting individual drill holes against prior news releases and the resource dated December 2018, and will be reviewed once all data from the current drill program is released.  Within the December 2018 resource, cobalt contributes approximately 20% of in-situ value.

Technical and Environmental Background

Assuming a predominant stratabound control, the true thickness of the mineralized interval is interpreted to be approximately 90% of the sampled thickness. Quality control duplicates for all holes show good repeatability of gold assays. Intersections are reported with a lower-cut of 0.5 g/t gold or 304 ppm 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 samples 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 were 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 measuring the gold in solution with flame AAS equipment. Multi-element assays, including cobalt 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 standards of known gold content, duplicate samples by quartering the core, and blanks the within interpreted mineralized rock. In addition, CRS and MS Analytical insert blanks and standards into the analytical process. The qualified person for Mawson’s Finnish projects, Dr. Nick Cook, President for Mawson and a Fellow of the Australasian 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 on the Mineral Resource Estimate for the Raja and Palokas Prospects, at the 100% owned Rajapalot Project in Finland, 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 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 National 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.

About Mawson Resources Limited  

Mawson Resources Limited is a sustainable and ethical exploration and development 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.

Table 1: Collar Information from 2019 Winter drilling at the Rajapalot Project (Finnish Grid, Projection KKJ3)

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.

Table 3: Individual assay data from key drill holes reported in this release.