Mr. Antonio Berlanga reports

TELSON CURTAILS MINING OPERATIONS AT CAMPO MORADO AND PLANS TO FOCUS ON CONSTRUCTION OF MINE AT TAHUEHUETO GOLD PROJECT

Telson Mining Corp. has decided to indefinitely curtail operations at its Campo Morado mine in Guerrero State, Mexico, and place the mining project into care and maintenance.

Telson's management and its board of directors have taken into account the following facts and events in coming to the decision to suspend mining operations at Campo Morado: i) as a result of certain activities in the vicinity of Campo Morado, the company is concerned about the health and welfare of its work force. Following an extended scheduled shutdown for maintenance work, the company has experienced a work stoppage at the mine. A significant portion of Campo Morado's current local work force and trucking companies, including its drivers, have advised that they are unable to continue providing services to the Campo Morado mine as they claimed concerns with the relationship with the local community. This has resulted in workers resigning their current positions at the mine, making it difficult to continue mining operations. Additionally, the transportation issues make it very difficult to move concentrates out of the Campo Morado mine to the point of sale at the port of Manzanillo. As a result, a significant amount of concentrate is being stored at the mine site; ii) the substantial decline in zinc prices negatively affects the Campo Morado mine's profitability.

Neither of these issues alone would have necessarily led to the decision to curtail operation at Campo Morado; however, Telson's management and board of directors believe that the company's focus in an improving gold market should be to complete construction of the company's Tahuehueto gold mine in Durango state, Mexico. Tahuehueto is Telson's flagship asset and, once in production, will shift the market's perception of Telson from primarily a base metals producer to a gold producer.

Tahuehueto gold mine construction

Telson has advanced Tahuehueto, a district-scale epithermal mineralized system, by exploring only one of numerous known mineralized vein structures from exploration through to the publication in January, 2017, of a mineral resource and prefeasibility study (PFS), which initiated management's decision to advance the project into mine construction to achieve production as soon as possible.

The company notes that the Tahuehueto 2017 PFS envisioned an underground mining operation, mining 790 tonnes per day and processing 550 tonnes of ore through the milling circuit. The 2017 PFS results showed robust economics with a 21-year mine life (completed on base case metal price forecasts of $1,180 per ounce for gold, $16.70 per ounce for silver, 87 cents per pound for lead, 92 cents per pound for zinc and $2.65 per pound for copper -- all metal prices significantly lower than current and three-year averages), however, in management's opinion did not optimize the mining plan.

The company's management has considerable experience mining in Mexico and, notwithstanding the model suggested in the 2017 PFS, determined to build a mining operation capable of processing up to 1,000 tonnes per day. Mine construction has currently advanced construction to approximately 70 per cent.

Tahuehueto's current published reserves and resources are listed in the attached table.

Canadian Institute of Mining, Metallurgy and Petroleum standards were followed in the estimation of the mineral reserves. Mineral reserves are estimated using metal price forecasts of 60 cents per pound for lead, 75 cents per pound for zinc, $2.10 per pound for copper, $1,000 per ounce for gold and $19.12 per ounce for silver.

Mineral resources are inclusive of mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to either measured or indicated categories through further drilling or into mineral reserves, once economic considerations are applied. Gold equivalent is based on the financial model metal price of $1,180 per ounce.

The company has identified and surface sampled numerous veins outside of the current published reserves and resources and, subject to securing financing, the company intends to conduct an extensive drill campaign with the goal of increasing the resources to evaluate the possibilities of expanding Tahuehueto operations.

Furthermore, Telson advises that new mineralization has very recently been discovered within underground developments on the project's El Perdido zone within a major through-going vein structure where drifting at El Perdido has advanced at least 125 metres in continuous mineralization past the last drill hole intersection. This newly discovered mineralization has the potential to increase the project resources within any future published technical report.

Campo Morado closure continued

Telson regrets the negative publicity that this mine closure will have toward Guerrero, Mexico. Telson especially regrets that the closure of the mine will directly affect over 300 mine employees now out of work and numerous persons and businesses located in and around the city of Arcelia that have directly benefited from the mine's short two years of operation under Telson's ownership.

Telson will continue its efforts to improve the relationship with local community leaders, the local municipal government and others to come up with a suitable arrangement that can guarantee the long-term operation of the Campo Morado mine. As described above, Campo Morado is a significant revenue generator for the city of Arcelia and Telson is hopeful that the community at large will recognize the multiplier benefit of long-term production from the mine. In the event the company is unsuccessful with these negotiations, the Campo Morado mine will indefinitely cease production and continue under care and maintenance.

Telson's management would like to point out that despite a number of challenges faced at the Campo Morado mine during the past 21 months (including significant concentrate theft last year), mining operations have been mostly profitable, returning a mine operating profit of $3.05-million for the three months ended March 31, 2019, and $2.28-million during Q4 2018. Telson will continue to investigate technologies for increasing gold and silver recoveries at the Campo Morado mine so that, if overall conditions improve, the company is able to reopen the Campo Morado mine with a better profitability.

Telson will now focus its efforts toward securing final financing required to complete the construction of its 1,000-tonne-per-day flagship Tahuehueto mining project, where construction efforts have advanced to completion of approximately 70 per cent. Once financing has been secured, it is estimated that the Tahuehueto mine's final construction phase will take about six months, allowing mill start-up and commissioning.

About Telson Mining Corp.

Telson Mining is a Canadian-based mining company with two 100-per-cent-owned Mexican gold, silver and base metal mining projects.

Telson's Tahuehueto mining project, located in northwestern Durango state, Mexico, is currently under development and waiting for final financing to complete construction of the processing plant and related assets to produce concentrates in its own on-site mineral processing plant, with a designed capacity of at least 1,000 tonnes per day, targeting completion of construction near the end of Q1 2020.

Campo Morado is a polymetallic base metal mine with mining and milling equipment capable of producing up to 2,500 tonnes per day, which, as of the date of this news release, has been placed into care and maintenance pending better economic conditions and community relationships allowing for a restart of mining operations.

Qualified persons

This press release was prepared under the supervision and review of Ralph Shearing, professional geologist, 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.

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