Mr. Michael Hudson reports

MAWSON DRILLS 5,040 METRES IN FIRST MONTH OF ITS 2019 GOLD & COBALT EXPLORATION PROGRAM

Mawson Resources Ltd. has provided a drill and permitting update from Finland.

Highlights

• Mawson commenced drilling Jan. 21, 2019, and continues to drill with four rigs operating 24/seven 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 electromagnetic (EM) geophysical plates that are contiguous and extend down plunge from the constrained inferred mineral resources of 424,000 ounces of gold at 3.1 grams per tonne 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 four-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 three years.
• As a standard part of Finnish 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 (Metsahallitus), appealed 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.

Michael Hudson, chairman and chief executive officer, states: "Four rigs continue to target EM extensions below and along strike from the maiden resource area. We have 70 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 three years. In combination with the wonderful support from local communities, we can now continue exploring without further delays."

Geophysical EM surveying is continuing 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 three 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 independent 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 Metsahallitus. The enforcement order in place allows continuing drilling until both appeals are addressed by the Administrative Court. This process can take up to 18 months. The Metsahallitus appeal relates 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 optional sites) plus 76 existing drill platforms within the 1,462-hectare Kairamaat 2-3 exploration permit area for an additional three 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 four years, exploration permits in Finland can be renewed in three-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 Jan. 18, 2019, replaces a superseded permit decision made on Jan. 12, 2018. In summary, Mawson has eight years and nine 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 3, to Wednesday, March 6, 2019, at booth No. 2941 and at the core shack booth No. 3104B (March 5 to March 6, 2019).

Technical background

The qualified person for Mawson, 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 Ltd.

Mawson Resources 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.

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