Mr. Antonio Berlanga reports

HISTORIC LEACHOX TESTING SHOWS RECOVERIES UP TO 65% GOLD AND 81% SILVER POSSIBLE AT CAMPO MORADO

Telson Mining Corp. has released results from historic Leachox process testing for the possible increase of gold and silver recoveries on the Campo Morado tailings material in 2013 by Maelgwyn Mineral Services Ltd. of Cardiff, United Kingdom.

Highlights

Final tails:

• The testwork achieved a maximum gold dissolution of 65 per cent after 10 passes of Aachen oxidation at a grind specification of 80 per cent (20 microm).
• The maximum silver dissolution of 75 per cent was achieved after 40 passes of Aachen oxidation at a grind specification of 80 per cent (40 microm).

Reforma zone sample:

• The testwork achieved a maximum gold dissolution of 45 per cent after 40 passes of Aachen oxidation at a grind specification of 80 per cent (20 microm).
• The maximum silver dissolution of 81 per cent was achieved after 40 passes of Aachen oxidation at a grind specification of 80 per cent (10 microm).

In Telson's continuing quest to maximize the returns from Campo Morado production, the company has recently become aware of, having had discussions with senior members of Maelgwyn Mineral Services, Maelgwyn's conducted preliminary testing of samples from Campo Morado in 2013 for Nystar, the project's former owner. The samples were from 2013 process tailings, presumably the G9 zone, as well as fresh mineralization from the Reforma deposit, a future production zone.

The Leachox testing indicated that substantial increases in precious metal recoveries could be available at Campo Morado using Maelgwyn's Leachox process. Very positive results were obtained in the 2013 testing for both of the samples submitted, with a maximum recovery of 65 per cent gold and 75 per cent silver at a grind size of 20 microns from the process tailings sample and a maximum recovery of 45 per cent gold and 81 per cent silver at a grind size of 40 microns from the Reforma deposit sample. The report stated, "It should be noted that the above testwork was performed at a scouting level only and higher recoveries would probably be achieved with optimization work."

"The Leachox precious metal recovery testing conducted by Maelgwyn demonstrates that significant increases up to 65 per cent gold and 81 per cent silver are possible at Campo Morado," commented Antonio Berlanga, Telson's chief executive officer. "Should additional planned Leachox testing of optimization work to confirm recoveries, ultimate best grind size and reagent additions show a path forward to a commercial installation of this technology, we could improve recoveries from current levels of gold at 15 to 20 per cent and silver 30 to 40 per cent, which would significantly increase the mine's profitability by increasing the ounces of gold and silver produced at Campo Morado."

About Maelgwyn Minerals' Leachox refractory gold process (a patented technology process)

Maelgwyn Mineral Services holds a European patent for its Leachox process for the treatment of refractory gold ores. Over the 10 years since first receiving a European patent, the Leachox process route has become the industry leader in the low-cost recovery of gold from refractory and sulphide orebodies. There is now worldwide installed capacity of Leachox to recover over three million ounces per year of gold contained in sulphides in such operations as: the Kibali mine in the Democratic Republic of the Congo and the Tongon mine in Ivory Coast, both now owned by Barrick Gold (formerly owned by Rangold Resources), the TGME mine in South Africa, owned by Barberton Mines, and the Vasilkovskoye mine in Kazakhstan, owned by Vasilkovsky MMC.

The Leachox process uses simple, ultrafine grinding equipment combined with the Aachen Reactor, a proprietary, low-pressure, high-shear mass transfer device utilizing oxygen to partially oxidize the sulphides. When combined with the liberation of gold by the ultrafine grinding of concentrates, it results in acceptable and, more importantly, economic gold recoveries.

The Leachox process is a partial sulphide oxidation process for the recovery of gold and silver from sulphide minerals. Depending upon the mineralogy, a number of processes are used, but central to the Leachox process is the Aachen shear reactor. In the leach process, it enhances the kinetics and reduces reagent consumptions (oxygen, cyanide and lime) that otherwise can be prohibitive. The reactor is designed to introduce a high degree of shear, removing passivating films that may lead to loss of recovery.

About Telson Mining Corp.

Telson is a Canadian-based mining company with two Mexican gold, silver and base metal mining projects. Effective May 15, 2018, Telson declared commercial production at its 100-per-cent-owned Campo Morado mine. Telson is currently producing zinc and lead concentrates with gold, silver and copper as byproducts.

Telson's 100-per-cent-owned Tahuehueto project, located in northwestern Durango state, Mexico, is currently in construction development.

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