Mr. Antonio Berlanga reports

TRAFIGURA COMMITS 2ND LOAN TRANCHE US$5 MILLION TO TELSON'S TAHUEHUETO MINE CONSTRUCTION

Telson Mining Corp. has received $5-million (U.S.) for the second tranche of the loan agreement with Trafigura Mexico SA de CV, advanced under the loan facility and offtake agreement originally announced by the company on Dec. 18, 2017, for the rehabilitation, construction, operation and working capital of the Tahuehueto mine.

Highlights:

• Trafigura, one of the world's leading independent commodity trading houses, advances $5-million (U.S.) as the second financing tranche under the offtake agreement.
• This $5-million (U.S.), when combined with the proceeds of recently closed $6.8-million proceeds from the private placement, provides the bulk of financing required to complete the construction of the 1,000-tonne-per-day Tahuehueto mine.

Antonio Berlanga, chief executive officer, stated: "Telson has now received its second Trafigura loan funding tranche in the amount of $5-million (U.S.), which funds when combined with our recently closed $6.8-million private placement funding (see Oct. 10, 2018, press release), exceeds $10-million (U.S.). We are now almost fully funded to complete the mine construction at Tahuehueto and are targeting a mine start-up during the first quarter of 2019. An additional $2.5-million (U.S.) third tranche is available under the offtake loan agreement should additional funding be required; however, we anticipate that preproduction concentrate sales proceeds will forgo the need for Telson to draw down that third tranche. We would like to thank Trafigura for its continuing support and look forward to providing shareholders construction updates in the coming months."

"Trafigura Mexico is very pleased with Telson's Mexican operations, both Tahuehueto and Campo Morado, and are fully confident that Telson's management will soon deliver a new operating mine at Tahuehueto," stated Edmundo Vidal, Latin American director of Trafigura. "We are looking forward to receiving the increased high-quality gold-rich concentrate production from Telson's 1,000 tpd operating Tahuehueto mine early next year."

The company has been steadily advancing its Tahuehueto mine project with extensive underground development to access ore reserves on multiple working faces within numerous veins that will provide the mine mill feed upon start-up as well as progressing construction of mill, camp and all related required infrastructure. Please see Oct. 2, 2018, and Oct. 15, 2018, press releases for further project mine construction and development information.

New director

The company is also pleased to announce the appointment of Roberto Guzman to its board of directors. Mr. Guzman obtained a master's degree in finance from the Universidad Tecnologica de Mexico in 1989 and has more than 25 years of experience in the financial sector, primarily in Mexico. Initially working as finance manager for several Mexican publicly traded companies, such as Finamex SA de CV, Bursamex SA de CV and Invermexico SA de CV, as well as other private Mexican financial companies, including Union de Credito Metropolitana SA de CV, Soluciones Integral SA de CV and FOVISSTE. Mr. Guzman is also a director of Bursametrica Casa de Bolsa, a Mexican brokerage firm.

Mr. Guzman, an indirect controlling shareholder and insider of the company, is currently president, director and major shareholder of the Escorfin Group, which owns several private equity funds that specialize in real estate development, energy innovations and tourism investment in Mexico.

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.

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