Mr. Ralph Shearing reports

TELSON REACHES AGREEMENT WITH NYRSTAR TO AMEND LOAN AGREEMENT

Telson Mining Corp. has reached an agreement to amend the terms of its loan agreement dated June 13, 2018, with Nyrstar Canada (Holdings) Ltd. The amended terms of the loan agreement will help Telson to better manage its cash flows at Campo Morado in a subdued zinc price environment.

Effective Nov. 19, 2018, Telson and Nyrstar agreed to amend the terms of the loan agreement to reduce the monthly principal repayment from $1.0-million (U.S.) to $500,000 (U.S.), which also effectively extends the repayment period of the $6.5-million (U.S.) balance that was due under the loan agreement.

The main terms of the amended loan agreement are as follows:

1. Telson agreed to pay on or before Nov. 23, 2018, an amount of $500,000 (U.S.) as principal repayment plus any accrued interest (paid).
2. Telson will make monthly principal repayments of $500,000 (U.S.) on the 13th day of each month starting on Dec. 13, 2018, and up until October, 2019, plus any accrued interest.
3. The interest rate did not change and was kept at a rate of 10 per cent per annum.
4. Along with the monthly principal repayments mentioned above, Telson will also pay:
   1. 70 per cent of any monthly free cash flow generated by Telson; plus any monthly excess cash balance above $500,000 (U.S.);
   2. 50 per cent of the monthly free cash flow generated by Telson on the Tahuehueto project once Telson declares commercial production.

Telson has agreed to repay in full the balance of the loan agreement no later than Oct. 31, 2019.

Antonio Berlanga, Telson's chief executive officer, stated: "We are very pleased with the co-operation of Nyrstar in providing Telson an extended time frame within which to repay the Nyrstar loan in reduced monthly payments. The current global trade wars have adversely affected commodity prices worldwide and are most likely the main reason for the instability in the price of zinc over the past several months which have impacted Campo Morado's revenues. These reduced monthly payments agreed to by Nyrstar help us better manage our positive cash flows from this project. We note that after a somewhat steep decline in zinc prices from the $1.40-(U.S.)-per-pound range to the $1.05 (U.S.)/lb range, zinc prices have recovered to the $1.20 (U.S.)/lb range."

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.

We seek Safe Harbor.