Mr. Glen Sandwell reports

TELSON SIGNS A RENEWABLE POWER PURCHASE AGREEMENT

Telson Mining Corp. has concluded a renewable power purchase agreement (green energy agreement) for the Campo Morado mine.

Highlights

• A 10-year term take-or-pay purchase agreement for renewable sources generated electrical energy at a cost of 1.10 Mexican pesos per kilowatt-hour (kwh) or equivalent to 7.2 cents per kwh at current exchange rates;
• Green energy agreement comes into effect no later than June, 2019;
• Telson committed to 42.00 gigawatt-hours per year;
• Under the green energy agreement, the cost per kwh is approximately 32 per cent lower than the last nine-month average price paid and approximately 54 per cent lower than September's kwh price alone;
• Estimated operating cost savings of approximately $2-million (Canadian) during the first year equating to an estimated 3.5-per-cent decrease in overall current operating costs;
• Telson will comply with the latest local regulatory requirements of renewable energy use.

Telson has concluded a renewable power purchase agreement (green energy agreement) with Energia Solar Alaia IV SAPI de CV, as part of the company's continuing efforts to reduce its environmental footprint and to reduce mine operating costs over the long term.

Under the terms of the green energy agreement, the company is committed to purchase 42.00 gwh of electrical power per year from Energia Solar at an inflation-indexed fixed price of 1.1 Mexican pesos per kwh for a period of 10 years. The 10-year term agreement can be extended by mutual agreement and the electrical power and rates comes into effect no later than June 1, 2019, or upon completion of the construction of Energia Solar's renewable energy plant.

Over the past nine months of operations at Campo Morado mine, the power consumption purchased from Comision Federal de Electricidad (CFE) was on average 32 per cent higher than the costs per kwh negotiated under the green energy agreement. Likewise, compared with September's purchase price the cost per kwh is about 54 per cent lower than the CFE's escalating costs.

"The renewable power purchase agreement with Energia Solar provides Telson with a steady supply of renewable source generated power at an inflation-indexed fixed price that will significantly reduce environmental footprint and reduce operating costs and future profitability. Additionally, this agreement satisfies local regulations that require Campo Morado mine to use a minimum of 25 per cent green generated energy," states Antonio Berlanga, chief executive officer. "It is also a significant step forward for Telson to do its part in the worldwide battle against global warming."

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 commercial production at its 100-per-cent-owned Campo Morado Mine in Guerrero, Mexico. Effective May 15, 2018, Telson declared commercial production at Campo Morado. Telson is currently producing zinc and lead concentrates with gold, silver and copper as byproducts, processing approximately over 2,000 tons per day through the Campo Morado 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.