Ms. Noora Ahola reports

MAWSON'S SUBSIDIARY SXG INTERSECTS 1.2 M @ 121.8 G/T AU IN DEEPEST HOLE WITH VISIBLE GOLD INCREASING WITH DEPTH AT SUNDAY CREEK, VICTORIA, AUSTRALIA

Mawson Gold Ltd. has released results from drill hole SDDSC064 (1.2 metres of 121.8 grams per tonne gold from 889.6 metres) from the deepest mineralization (830 m vertically below surface) and one of the two highest-grade intersections to date, and a 115-metre downdip extension from SDDSC061 (12.0 m of 7.4 g/t gold equivalent including 0.3 m of 249.5 g/t AuEq) at the Sunday Creek project in Victoria, Australia. Of major importance is the increasing abundance of visible gold at depth at Sunday Creek, as is typical for epizonal deposits.

Sunday Creek is 100 per cent owned by Southern Cross Gold Ltd. (SXG), which is an Australian Securities Exchange-listed company owned 51 per cent by Mawson. Four rigs continue to drill both in the main drill area and up to 7.5 kilometres along strike at the Tonstal prospect with 16 holes being processed and analyzed and four drill rigs operating. Mineralization extends in the main drill area over 1,350 m from Christina in the far west to SDDSC063.

Highlights:

• SDDSC064 drilled the deepest mineralization (830 m vertically below surface) and one of the two highest-grade intersections on the Sunday Creek project with increasing abundance of visible gold. Highlights from five separate mineralized veins include:
  • 0.4 m of 48.5 g/t AuEq (44.6 g/t Au and 2.5 per cent antimony) from 715.8 m;
  • 0.3 m of 16.3 g/t AuEq (15.6 g/t Au and 0.4 per cent Sb) from 725.8 m;
  • 0.9 m of 5.6 g/t AuEq (5.2 g/t Au and 0.2 per cent Sb) from 882.7 m;
  • 1.2 m of 121.8 g/t AuEq (121.8 g/t Au and 0.1 per cent Sb) from 889.6 m including: 0.5 m of 158.5 g/t Au and 0.4 m of 177.5 g/t Au;
• 0.6 m of 12.6 g/t AuEq (8.6 g/t Au and 2.5 per cent Sb) from 907.3 m;
• As well as being the deepest mineralization on project, SDDSC064 extended mineralization significantly, being a 115-metre downdip extension from SDDSC061 (12.0 m of 7.4 g/t AuEq including 0.3 m of 249.5 g/t AuEq);
• Of major importance is the abundance of visible gold becoming increasingly significant at depth;
• Mawson owns 93.75 million shares of SXG (51 per cent), valuing its stake at $52.5-million (Australian) ($47.3-million (Canadian)) based on SXG's closing price on May 16, 2023, Australian Eastern Standard Time.

Noora Ahola, Mawson interim chief executive officer, stated: "This is an exceptional result from team at Southern Cross Gold. Not only is this the deepest hole SXG has drilled at Sunday Creek terminating at 1,013.5 m downhole, but it also produced the deepest mineralization at 830-metre vertical depth and the second highest-grade intersection on the property. We are greatly encouraged by the presence of visible gold at depths typical in other high-quality epizonal deposits in the region and that SDDSC064 extended mineralization with a 115-metre downdip extension from SDDSC061 (12.0 m of 7.4 g/t AuEq including 0.3 m of 249.5 g/t AuEq).

"Sunday Creek is proving to show great continuity and predictability in the vein sets that intersect the host breccia dike that runs 11 kilometres through the property. Increased strike lengths of up to 60 m of individual veins that recur with predictable frequency as demonstrated in this release confirm our confidence in the ability of the project to deliver results that are comparable on a global scale."

Results discussion

The Sunday Creek epizonal-style gold project is located 60 km north of Melbourne within 19,365 hectares of granted exploration tenements. SXG is also the freehold landholder of 133 hectares that forms the key portion in and around the drilled area at the Sunday Creek project.

Sunday Creek has an 11-kilometre mineralized trend that extends beyond the main drill area, and is defined by historic workings and soil sampling, which is being drill tested for the very first time with the fourth drill rig, which mobilized to the Tonstal prospect 7.5 km to the northeast a month ago.

SDDSC064, drilled in the Rising Sun area of Sunday Creek, was designed to extend mineralization to depth as a scissor hole (drilled in an opposite direction) to SDDSC050 (305.8 m of 2.4 g/t AuEq). It achieved this, and delivered new and exciting data on multiple levels:

1. Discovered the deepest mineralization on project (830 m vertically below surface), with SDDSC064 the first hole to exceed one km in length on the project, terminating at 1,013.5 m;
2. One of the two highest-grade intersections on project (after SDDSC046 of 2.1 m of 121.6 g/t AuEq);
3. Defined significant extensions to known mineralization:
   • At its lower levels, SDDSC064 (1.2 m of 121.8 g/t AuEq) was a 115-metre downdip extension from SDDSC061 (12.0 m of 7.4 g/t AuEq including 0.3 m of 249.5 g/t AuEq);
4. Demonstrated the high frequency of mineralized veins:
   • Five high-grade northwest veins intersected over 100-metre horizontal true thickness (within 192-metre downhole width), implying a vein frequency each 20 m on average;
5. Demonstrated continuity across multiple high-grade veins in a 430 m (downdip) by 180 m (wide) and 60-metre (strike) area beneath drill hole SDDSC050:
   • At its upper levels, SDDSC064 (0.4 m of 48.5 g/t AuEq from 715.8 m and 0.3 m of 16.3 g/t AuEq from 725.8 m) showed the NW mineralized veins strike length increases at depth with the same vein drilled in SDDSC050 (9.0 m of 7.3 g/t AuEq from 712.0 m including 1.5 m of 41.5 g/t AuEq) located 60 m along strike to the northwest;
6. Drilled a broad and extensive halo to high-grade gold with low antimony and higher arsenopyrite:
   • 212.8 m of 1.0 g/t Au 0.04 per cent Sb from 715.8 (no lower cut).

Further discussion and analysis of the Sunday Creek project by Southern Cross Gold is available on the SXG website.

The true thickness of the mineralized intervals reported are interpreted to be approximately 60 to 70 per cent of the sampled thickness. Lower grades were cut at 0.3 g/t Au lower cut-off over a maximum width of three m with higher grades cut at 5.0 g/t Au cut-off over a maximum of one-metre width, unless otherwise stated.

Update on current drilling

Drilling with four rigs is in progress at Sunday Creek at the Rising Sun and Apollo prospects and also 7.5 km northeast at the Tonstal prospect. Sixteen new holes (SDDSC066-75 and SDDTS001-6) are currently being geologically processed and analyzed, with three holes (SDDSC070, 73, 74 and SDDTS007) in drill progress. SDDSC068 has been temporarily halted at 959.4 m below Apollo, awaiting an upgrade to a new drill feed rail to allow deeper drilling to continue.

Technical background and qualified person

The qualified person Michael Hudson, executive chairman and a director of Mawson, a fellow of the Australasian Institute of Mining and Metallurgy, has reviewed, verified and approved the technical contents of this release.

Analytical samples are transported to the Bendigo facility of On Site Laboratory Services, which operates under both ISO 9001 and NATA quality systems. Samples were prepared and analyzed for gold using the fire assay technique (PE01S method; 25-gram charge), followed by measuring the gold in solution with flame AAS equipment. Samples for multielement analysis (BM011 and overrange methods as required) use aqua regia digestion and ICP-MS analysis. The quality assurance/quality control program of Southern Cross Gold consists of the systematic insertion of certified standards of known gold content, blanks within interpreted mineralized rock and quarter core duplicates. In addition, On Site inserts blanks and standards into the analytical process.

Mawson considers that both gold and antimony that are included in the gold equivalent calculation have reasonable potential to be recovered at Sunday Creek, given current geochemical understanding, historic production statistics and geologically analogous mining operations. Historically, ore from Sunday Creek was treated on site or shipped to the Costerfield mine, located 54 km to the northwest of the project, for processing during the First World War. The Costerfield mine corridor, now owned by Mandalay Resources Ltd., contains two million ounces of equivalent gold (Mandalay third quarter 2021 results), and in 2020, was the sixth highest-grade global underground mine and a top-five global producer of antimony.

SXG considers that it is appropriate to adopt the same gold equivalent variables as Mandalay in its Mandalay technical report, 2022, dated March 25, 2022. The gold equivalence formula used by Mandalay was calculated using recoveries achieved at the Costerfield property Brunswick processing plant during 2020, using a gold price of $1,700 (U.S.) per ounce, an antimony price of $8,500 (U.S.) per tonne, and 2021 total year metal recoveries of 93 per cent for gold and 95 per cent for antimony.

About Mawson Gold Ltd.

Mawson is an exploration and development company. Mawson has distinguished itself as a leading Nordic exploration company with its 100-per-cent-owned flagship Rajapalot gold-cobalt project in Finland, and right to earn into the Skelleftea North gold project in Sweden. Mawson also currently owns 51 per cent of Southern Cross Gold, which in turn owns or controls three high-grade, historic epizonal goldfields covering 470 square kilometres in Victoria, Australia.

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