Mr. Ralph Shearing reports

TELSON MINING CORPORATION CLARIFIES DEFINITION OF CASH FLOW IN NEWS RELEASE DECLARING COMMERCIAL PRODUCTION AT ITS CAMPO MORADO MINE

Telson Mining Corp. announced, by news release earlier today, the start of commercial production at its 100-per-cent-owned Campo Morado mine, located in Guerrero state, Mexico.

In the production news release, Telson stated amongst other production data the following.

Campo Morado production milestones:

• Telson generates $7.7-million (U.S.) in cash flow in final month and a half (April 1 to May 15, 2018) of preproduction.
• The company generated approximately $7.7-million (U.S.) in cash flow during the three months of first quarter, that increased to $5.2-million (U.S.) in April alone, which based on costs of approximately $3.5-million (U.S.) resulted in net cash flow for the month of $1.7-million (U.S.).
• Concentrate preproduction was from April 1 to May 15, 2018, management's estimated 100-per-cent concentrate sale value for 45 days ending May 15, 2018 (start of commercial production), was $7.7-million (U.S.), from April 1 to April 30 was $5.2-million (U.S.) and from May 1 to May 15 was $2.5-million (U.S.).

On further review of the prefiled production news release, this morning, the Investment Industry Regulatory Organization of Canada (IIROC) determined that additional clarification was required and halted trading in the company's shares.

The company wishes to clarify that the term "cash flow" as used in the production news release is the cash receipts for concentrates delivered to the buyer of such concentrates. It is cash receipts and does not include cash payments for goods, services or payments to or on behalf of employees or any expenditures associated with the costs of production. The costs of production are calculated at month-end. As stated in the production news release, in April, 2018, Telson generated cash from the sales of concentrates of $5.2-million (U.S.) with costs of production of $3.5-million (U.S.) for net cash of $1.7-million (U.S.). For the first 15 days of May (ending on the date of the commencement of commercial production), Telson generated cash receipts from the sales of concentrates of $2.5-million (U.S.); however, it has not determined the costs of production for that interim period.

Now that Telson has declared commercial production, cash receipts from sales of concentrate will be reported as revenues, and Telson will be in a position to report net income/loss on a quarterly basis.

Telson reiterates that all of the figures in the production news release are correct.

About Telson Mining Corp.

Telson Mining is a Canadian-based mining company with two Mexican gold, silver and base metal mining projects.

Telson is currently in production at its 100-per-cent-owned Campo Morado mine in Guerrero, Mexico.

Telson's Tahuehueto project, located in northwestern Durango state, Mexico, is currently in preproduction at approximately 100 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 first quarter 2019.

Qualified persons

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

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