Mr. Jose Berlanga reports

TELSON MINING CORPORATION RELEASES FIRST QUARTER 2018 PRE-PRODUCTION RESULTS FROM THE CAMPO MORADO MINE

Telson Mining Corp. has released preproduction results of development mining, concentrate production and metallurgical balances for the first three months of 2018 at its 100-per-cent-owned Campo Morado mine located in Guerrero state, Mexico.

Campo Morado first quarter 2018 preproduction

Highlights:

• Mill processed 148,676 tonnes of mineralized development material during first quarter 2018;
• Average head grade of 3.65 per cent zinc, 0.41 per cent copper, 0.90 per cent lead, 1.14 grams per tonne gold, 108 g/t silver;
• Produced 8,206 wet tonnes of zinc concentrate with average grades of 45.16 per cent Zn, 1.26 per cent Cu, 1.94 per cent Pb, 436 g/t Ag, 2.08 g/t Au;
• Produced 1,365 wet tonnes of lead concentrate with average grades of 24.94 per cent Pb, 8.29 per cent Zn, 2.11 per cent Cu, 616 g/t Ag, 8.92 g/t Au;
• Produced 82.22 wet tonnes of copper concentrate 9.87 per cent Cu, 1,753 g/t Ag, 11.88 g/t Au, 10.54 per cent Pb, 5.76 per cent Zn (copper concentrate only produced for two weeks of the period);
• Estimated 100-per-cent cash selling value for 7,297.27 tonnes of shipped zinc concentrates of $6,918,452 (U.S.) and for 1,157.44 tonnes of shipped lead concentrates of $785,670 (U.S.), totalling $7,704,122 (U.S.);
• Mill throughput processing rate increase from 1,500 tonnes/day in January to over 1,900 tonnes per day early April, 2018;
• Underground development totalled 1,225 metres with 896 m in mineralized material and 329 m in waste;
• Total mineralized material mined of 113,477 tonnes during the quarter.

Note

Shipped concentrates are paid at 90-per-cent estimated metal content less deductions upon delivery to Trafigura warehouse in Manzanillo. The estimated 100-per-cent cash selling price is subject to minor changes once final assaying results are agreed to by the company and Trafigura at which time the final approximate 10 per cent is paid.

Jose Antonio Berlanga, chief executive officer and director, stated: "As we near the end of the El Largo zone development phase in preparation of initiating bulk mining methods within the next few weeks, we have been improving efficiencies at the mill resulting in successfully increasing zinc concentrate grades to an average of 43.54 per cent zinc and lead concentrate grades to an average of 34.88 per cent lead during the first two weeks of April, 2018. During this same two-week period, we have achieved improved zinc metal recoveries averaging 72.7 per cent zinc into the zinc concentrates. As soon as we initiate the bulk mining methods, within the next several weeks, the mine will be able to deliver a more consistent mineralized mill feed, without excess dilution of mining development material from various areas within the large El Largo zone. Processing mineralized mill feed of more consistent grade and quality, containing less dilution, should allow us to further improve concentrate grades and recoveries. In addition, bulk mining methods will allow us to ramp up preproduction towards the 2,500 t/d capacity of the mill and further reduce direct site costs of approximately $48.5 (U.S.) per tonne. These current direct site costs are approximately 33 per cent lower than the estimated direct site costs of $72.26 (U.S.) per tonne used for the same categories in our recently published independent preliminary economic assessment."

The above-referenced preliminary economic assessment (PEA) dated March 31, 2018, was prepared in accordance with National Instrument 43-101 and has been published on SEDAR or is also available on the company's website.

                            JAN. 1 TO MARCH 31, 2018                           
              AVERAGE METALLURGICAL BALANCE FIRST QUARTER QUARTER    
               
Feed grade (from mass balance)                                              
                     Tonnes                         Grade
                                    Zn         Cu        Pb        Au          Ag
                                   (%)        (%)       (%)     (g/t)       (g/t)

Ore tonnes          148,676       3.65       0.41       0.9      1.14         108

                                                 Recovery
                        WMT         Zn         Cu        Pb        Au          Ag
                        (%)        (%)        (%)       (%)       (%)         (%)

Zn concentrate         5.5%      68.2%      17.0%     11.9%     10.1%       22.2%
Cu concentrate         0.1%       0.1%       1.3%      0.6%      0.6%        0.9%
Pb concentrate         0.9%       2.1%       4.7%     25.4%      7.2%        5.2%

                     Tonnes                           Grade
                                    Zn         Cu        Pb        Au          Ag
                                   (%)        (%)       (%)     (g/t)       (g/t)

Zn concentrate     8,206.22      45.16       1.26      1.94      2.08         436
Cu concentrate        82.22       5.76       9.87     10.54     11.88       1,753
Pb concentrate     1,365.66       8.29       2.11     24.94      8.92         616

                                                     Content
                                    Zn         Cu        Pb        Au          Ag
                                   (t)        (t)       (t)      (kg)        (kg)

Zn concentrate                3,705.92     103.58    159.44     17.04    3,579.24
Cu concentrate                    4.74       8.11      8.66      0.98      144.10
Pb concentrate                  113.16      28.77    340.57     12.18      841.76


          AVERAGE METAL RECOVERIES OBTAINED DURING MARCH, 2018
    
Average recovery -- March 1 to March 31, 2018          
                   WMT        Zn       Cu        Pb       Au       Ag
                   (%)       (%)      (%)       (%)      (%)      (%)
 
Zn concentrate    6.3%     70.5%    16.9%     14.1%    10.1%    23.3%   
Pb concentrate    1.1%      2.5%     4.0%     28.3%     7.5%     6.0%    
                                                                       

Grant of options

The company has granted a total of 400,000 stock options to a director and a service provider under the terms of the company's stock option plan. The stock options have a five-year term from the date of the grant and are exercisable at a price of 73 cents per share.

About Telson Mining Corporation

Telson Mining is a Canada-based junior resource mining company currently in preproduction at two Mexican gold, silver and base metal mining projects and is advancing both toward commercial production, Campo Morado in the coming months of 2018 and Tahuehueto in early 2019. At the Campo Morado mine in Guerrero, Mexico, Telson has recommenced mining and processing operations with preproduction from mine development on a trial basis that commenced at an average 1,400 tonnes per day and is currently at approximately 1,900 tonnes per day during the recommissioning stage and intends to advance toward commercial production at full capacity of approximately 2,500 tonnes per day during 2018. Telson's Tahuehueto project, located in northwestern Durango state, Mexico, is currently in preproduction at approximately 150 tonnes per day utilizing a toll mill for processing and has entered a construction phase with a timeline to be producing on site in its own mineral processing plant capable of milling at least 1,000 tonnes per day in the first quarter of 2019.

Qualified persons

This press release was prepared under the supervision and review of Ralph Shearing, PGeol, president and director of Telson Mining, a professional geologist registered in Alberta as a member of the professional association APEGA, and a qualified person as defined by NI 43-101. Data verification by Mr. Shearing includes personal inspection of the Campo Morado mine site, reviewing mining facilities, drill core, underground development and discussing work programs and results with geology and mining personnel.

We seek Safe Harbor.