Mr. Ralph Shearing reports

TELSON MINING CORPORATION CAMPO MORADO UPDATE

Telson Mining Corp. has provided a summary of its second quarter 2018 financial report.

On Wednesday, Aug. 29, 2018, the company filed its condensed interim consolidated financial statements for the three and six months ended June 30, 2018, and 2017. The second quarter quarterly report presented financial information for April, May and June, 2018, that included 45 days of preproduction and 45 days of commercial production at the Campo Morado mine. Telson declared commercial production at Campo Morado effective May 15, 2018 (see news release dated May 23, 2018).

Telson advises that concentrate cash sale value realized from preproduction under international financial reporting standards (IFRS) is not accounted as revenue on the condensed interim consolidated financial statement of loss; instead it is capitalized net of production costs and development expenses and presented as mineral interest and development assets upon reaching commercial production. Accordingly, Telson capitalized a net profit of approximately $7.3-million for Campo Morado as mineral interest and development assets during the preproduction period from Jan. 1 to May 15, 2018.

During the last 45 days of the quarter or since the start of commercial production on May 15, 2018, to June 30, 2018, the company recorded a total amount of $987,055 as mine operating earnings which is presented on the second quarter quarterly report. Mining operations at Campo Morado are currently processing at a rate of approximately 2,000 tonnes per day which management intends to increase to 2,500 in the near future and increase toward 3,000 by the end of this year.

Antonio Berlanga, chief executive officer, stated: "Our outstanding Campo Morado operations team have performed beyond expectations and continue to work diligently to improve the operational results at Campo Morado. Preproduction and more recently, commercial production, has funded the acquisition of surface and underground equipment as well as processing plant equipment, all of which are allowing a steady increase in production rates and corresponding concentrate sales. Telson will continue to invest in Campo Morado to increase production capacity, mill recoveries and quality of concentrates to maximize the mine's profitability."

Telson's Campo Morado mine has achieved direct site costs for mining, milling and administration during the second quarter of approximately $56.6 (U.S.), $51.6 (U.S.)and $51.8 (U.S.) per tonne, respectively, for, April, May and June. These current direct site costs are approximately 36 per cent lower than the estimated direct site costs of $72.26 (U.S.) per tonne used for the same categories in Telson's recently published independent preliminary economic assessment and approximately 40 per cent lower than the previous operator's last year of production during 2014.

About Telson Mining Corp.

Telson Mining is a Canada-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 declared commercial production as of May 15, 2018. Currently the Campo Morado mine is processing approximately 2,200 tonnes per day through the milling facilities.

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 National Instrument 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.