Mr. Jose Berlanga reports

TELSON MINING CORPORATION MAKES US $8 MILLION PAYMENT TO NYRSTAR AND ENTERS INTO LOAN AGREEMENT TO FACILITATE BALANCE OF FINAL PAYMENT FOR CAMPO MORADO ACQUISITION

On June 6, 2018, Telson Mining Corp. paid $8-million (U.S.) to Nyrstar Mining Ltd. as a partial payment under its share purchase agreement dated April 27, 2017, and has entered into a loan agreement dated June 13, 2018, with Nyrstar Canada (Holdings) Ltd. that effectively converts the final $8.5-million (U.S.) due under the acquisition agreement into a loan and thereby extends the payment terms over the next eight months.

The principal sum due under the loan agreement is $8.5-million (U.S.), and will bear interest at 10 per cent per annum, with the principal sum plus capitalized amounts to be paid in full at the latest by Feb. 28, 2019, as more particularly described in this news release. Telson may prepay any amount of the loan outstanding without penalty.

On the 13th day of each month starting as of July 13, 2018, Telson will repay to the lender:

• A minimum of $1-million (U.S.);
• Interest at the specified rate on the outstanding principal sum at that month;
• 70 per cent of the monthly free cash flow generated by Telson;
• Any monthly excess cash balance above $500,000 (U.S.).

Telson was able to make the partial payment of $8-million (U.S.) from proceeds of concentrate sales recently received from Trafigura Mexico SA de CV. Telson will provide additional information respecting the bulk payment from Trafigura shortly.

Jose Antonio Berlanga, Telson's chief executive officer, stated: "We would like to thank Nyrstar for their good faith negotiations, continued support and co-operation in reaching a mutually agreeable extension and loan agreement. By renegotiating and extending the final payment terms for the Campo Morado acquisition we are extremely pleased to once again protect our shareholders by avoiding the immediate need to raise equity funding in what we consider an undervalued market. With the recent declaration of commercial production at Campo Morado, we are very confident our free cash flows will easily support the loan repayment terms."

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 acquired Campo Morado in June, 2017, recommenced mining and processing operations in October, 2017, with preproduction from mine development on a trial basis that commenced at an average 1,400 tonnes per day, and has just declared commercial production based on operating for 60 consecutive days at 75 per cent of the Campo Morado mill's nameplate capacity of 2,500 tonnes per day.

Qualified person

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, and a qualified person as defined by National Instrument 43-101.

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