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Mawson Reports Further Gold-Cobalt Drill Results at Rajapalot, Northern Finland and Commences Resource and Metallurgical Studies

VANCOUVER, Sept. 04, 2018 /CNW/ - Mawson Resources Limited ("Mawson") or (the "Company") (TSX:MAW) (Frankfurt: MXR) (PINKSHEETS: MWSNF) is pleased to announce additional gold and/or multi-element drill results from 43 holes from 6 prospects at the Rajapalot project in Finland.

The addition of cobalt values to previously reported gold intersections continues to provide significant improvements in both continuity and width when compared to gold-only intersections, especially at the Raja and Palokas prospects. On the basis of this increased confidence in mineralization continuity, the Company has commenced metallurgical test work and is in the process of engaging an independent qualified person to undertake a maiden resource calculation at Rajapalot.

Key Points:

  • Results from 43 diamond drill holes are reported from the Rajapalot project across 6 prospect areas;
  • Cobalt assays continue to improve width, continuity and grade within the gold-cobalt mineralized zone. For seven of the best mineralized drill holes reported, the average increase in gold equivalent ("Au Eq") grade x width over the previously reported gold-only result was 92%. Au-only values consistently received a 1-2 g/t addition in Au Eq from Co, but with substantially greater thicknesses (Table 1, Figures 4-10);
  • Metallurgical studies area now underway and the Company will soon engage an independent qualified person to complete a maiden resource calculation at Rajapalot;
  • Highlight results from the Palokas prospect include:
    • 33.0 metres @ 4.2 g/t AuEq, 3.1 g/t Au, 547 ppm Co from 38.7 metres (PRAJ0109)
    • 34.6 metres @ 2.6 g/t AuEq, 1.2g/t Au, 693 ppm Co from 30.3 metres (PRAJ0111)
  • Highlight results from the Raja prospect include:
    • 20.7 metres @ 5.6 g/t AuEq, 3.6 g/t Au, 956 ppm Co from 365.2 metres (PAL0118)
    • 5.0 metres @ 16.1 g/t AuEq, 14.2 g/t Au, 938 ppm Co from 245.0 metres (PAL0092)
  • Electromagnetic studies are ongoing at Raja, with the aim to define northerly extensions to mineralization where drilling has defined a 470-metre plunging shoot from near surface (Figure 3);

Mr. Hudson, Chairman and CEO, states, "With the growing recognition of the significance of cobalt within the gold mineralized zones, Rajapalot is quickly progressing from discovery to a more advanced stage with resource and metallurgical testwork studies now commencing. This is an exciting milestone for the project as a large new mineral camp emerges. It is an excellent outcome for Finland, with potential for a significant and strategic cobalt deposit just 400 kilometres from the world's single largest cobalt refinery at Kokkola, which produces 50% of global non-Chinese production (10% of total production)."

All assays reported are shown in Table 3, with the most significant seven holes (from 43 holes reported) from the Palokas and Raja prospects reported in Table 1. A plan view of drill results and named prospects is provided in Figure 1. Cross and longitudinal sectional views for Raja are included in Figures 2-3. Tables 2 shows all relevant collar information. Assuming a predominant stratabound control, the true thickness of the mineralized interval is interpreted to be approximately 90% of the sampled thickness. Intersections are reported with a lower cut of 0.5 g/t gold or 0.5 g/t gold equivalent when cobalt assays were available, over 1 metre width and no upper cut-off was applied. The gold equivalent (Au Eq) value was calculated using the following formula: Au Eq g/t = Au g/t + (Co ppm/481) with assumed prices of Co $88,185/t; and Au $1,320/oz, where 1 g/t Au is equivalent to 0.048 % Co. Au Eq varies with Au and Co prices.

Table 1: Highlighted new multi-element results from the Raja and Palokas prospects. Note average increase in AuEq grade x width over the gold-only result was 92% from earlier reported results.

Hole_id

From

(m)

To

(m)

Width

(m)

Au Eq

g/t

Au

g/t

Co

ppm

Prospect

% increase
g/t * m

PRAJ0109

38.7

71.7

33.0

4.2

3.1

547

PALOKAS

38

PRAJ0110

70.2

92.2

22.0

2.9

1.5

664

PALOKAS

114

PRAJ0111

30.3

64.9

34.6

2.6

1.2

693

PALOKAS

152

PAL0085

124.0

134.9

10.9

5.0

3.8

569

RAJA

34

PAL0092

245.0

250.0

5.0

16.1

14.2

938

RAJA

14

PAL0097

276.3

287.2

11.0

2.6

0.8

880

RAJA

281

PAL0118

322.0

331.6

9.6

3.2

2.1

534

RAJA

56

PAL0118

365.3

386.0

20.7

5.6

3.6

956

RAJA

47

Two main areas of work continue at the Rompas-Rajapalot project areas:

  • Geological modelling of Palokas, Raja, South Palokas and Rumajärvi prospects, in addition to assay data validation is a focus for Mawson's technical team to feed into upcoming independent resource studies. Metallurgical testwork for cobalt and gold has also commenced with liberation studies and QEMSCAN work to investigate the relationships of the cobalt minerals (cobaltite, linnaeite and cobalt pentlandite) to the gold, sulphide and silicate minerals. These studies are being conducted with the Geological Survey of Finland (GTK) and the Camborne School of Mines (University of Exeter).
  • A second component of Mawson's exploration remains the testing of base of till drill hole and geophysical targets, with a diamond drill program comprising approximately 2,000 metres to commence in late September.

Cobalt in Finland

Finland plays a significant role in the global cobalt supply chain. The Democratic Republic of the Congo ("DRC") mined 54% of the world's cobalt in 2016 whilst 80% of cobalt used in lithium-ion batteries is refined in China.

Half of the world's non-Chinese production (10% of total production) comes from Freeport Cobalt, the world's largest single cobalt refinery, located only 400 kilometres from Mawson's Rajapalot project in Kokkola, Finland. Freeport Cobalt is a joint venture between Freeport-McMoRan (56%), Lundin Mining Corporation (24%) and La Générale des Carrières et des Mines (20%) (or Gécamines, the DRC state mining company). A significant amount of feedstock for Freeport Cobalt comes via a long-term supply agreement with the Chinese-owned Tenke Fungurume mine in the DRC. A future Finnish domestic source of cobalt from Rajapalot would satisfy the recent announcements by Finland and Sweden that the countries will work together on a traceable ledger for sustainable minerals, which are considered crucial for achieving climate goals.

Owing to the growth in the electrification of transport and need for storage of renewable energy, the battery sector has become an important driver of cobalt demand. Demand for lithium-ion batteries is surging, which is expected to support both price and volume for the cobalt market for years to come. With cobalt on the European Commission's critical raw minerals list, there is a strong mandate to secure local and ethical supplies of cobalt, which are likely to contribute to further tightened supply.

Technical and Environmental Background

Variable core diameters are reported with PAL holes NQ2 (50.7 mm), WL76 (57.5mm) or NTW (56.0 mm), and PRAJ holes EW (25.2 mm). Core recoveries were excellent and average close to 100% in fresh rock. After photographing and logging in Mawson's Rovaniemi facilities, core intervals averaging 1 metre for mineralized samples and 2 metres for barren samples were cut in half at the Geological Survey of Finland (GTK) core facilities in Rovaniemi, Finland. The remaining half core is retained for verification and reference purposes.

Three laboratories are being used to conduct gold and multi-element assay work. Samples were transported by Mawson personnel or commercial transport from site to the CRS Minlab Oy facility in Kempele, Finland, or to the ALSGlobal sample preparation facility at Sodankylä, Finland. Samples submitted to Kempele were prepared and analyzed for gold using the PAL1000 technique which involves grinding the sample in steel pots with abrasive media in the presence of cyanide, followed by measuring the gold in solution with flame AAS equipment. In order to improve the detection limit of the PAL1000 technique from 0.05 g/t Au to 0.01 g/t Au for a 1 kg sample, gold concentration using the DiBK (di-isobutyle ketone) extraction method was also used. Samples transported for gold assay to Sodankylä were analysed using 50 g fire assay and ICP finish method Au-ICP22.

Multi-element analytical work was conducted by MS Analytical and ALSGlobal using methods IMS-230 and ME-MS61 respectively, both using four acid digest followed by ICP analysis.

The QA/QC program of Mawson consists of the systematic insertion of certified standards of known gold and cobalt content, duplicate samples by quartering the core, and blanks the within interpreted mineralized rock. In addition, all three laboratories insert blanks and standards during the analytical process.

The qualified person for Mawson's Finnish projects, Dr. Nick Cook, President for Mawson and a Fellow of the Australasian Institute of Mining Metallurgy has reviewed and verified the contents of this release.

About Mawson Resources Limited (TSX:MAW, FRANKFURT:MXR, PINKSHEETS:MWSNF)

Mawson Resources Limited is an exploration and development company. Mawson has distinguished itself as a leading Nordic Arctic exploration company with a focus on the flagship Rompas and Rajapalot gold projects in Finland.

On behalf of the Board,

"Michael Hudson"
Michael Hudson, Chairman & CEO

Forward-Looking Statement

This news release contains forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, "forward-looking statements"). All statements Mar 01, 2018in, other than statements of historical fact, are forward-looking statements. Although Mawson believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate, and similar expressions, or are those, which, by their nature, refer to future events. Mawson cautions investors that any forward-looking statements are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, capital and other costs varying significantly from estimates, changes in world metal markets, changes in equity markets, planned drill programs and results varying from expectations, delays in obtaining results, equipment failure, unexpected geological conditions, local community relations, dealings with non-governmental organizations, delays in operations due to permit grants, environmental and safety risks, and other risks and uncertainties disclosed under the heading "Risk Factors" in Mawson's most recent Annual Information Form filed on www.sedar.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Mawson disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

Figure 1 Plan view of Rajapalot area (CNW Group/Mawson Resources Ltd.)

Figure 2 Cross Section from the Raja Prospect, Rajapalot (CNW Group/Mawson Resources Ltd.)

Figure 3 Long section showing results from Raja prospect, Rajapalot (CNW Group/Mawson Resources Ltd.)

Figure 4 Gold-Cobalt Distribution Drillhole PRAJ0109 (CNW Group/Mawson Resources Ltd.)

Figure 5 Gold-Cobalt Distribution Drillhole PRAJ0110 (CNW Group/Mawson Resources Ltd.)

Figure 6 Gold-Cobalt Distribution Drillhole PRAJ0111 (CNW Group/Mawson Resources Ltd.)

Figure 7 Gold-Cobalt Distribution Drillhole PAL0085 (CNW Group/Mawson Resources Ltd.)

Figure 8 Gold-Cobalt Distribution Drillhole Pal0092 (CNW Group/Mawson Resources Ltd.)

Figure 9 Gold-Cobalt Distribution Drillhole PAL0097 (CNW Group/Mawson Resources Ltd.)

Figure 10 Gold-Cobalt Distribution Drillhole PAL0118 (CNW Group/Mawson Resources Ltd.)

Table 2: Collar Information from Multi-element and Gold Assays report in this Press Release from Six Prospects within the Rajapalot Project (Finnish Grid, Projection KKJ2003)

HoleID

East

North

Azimuth

Dip

RL (m)

Depth (m)

Prospect

PAL0008

3409232.4

7374282.4

134.4

60

175.743

158.38

Hirvimaa

PAL0025

3408990

7374176

330

55

174.4516

170.65

Hirvimaa

PAL0127

3409495

7374571

140.05

49.61

178.064

157.7

Hirvimaa

PAL0130

3409439.2

7374639.4

141.18

50.15

178.477

212

Hirvimaa

PAL0144

3410155

7374827

160.73

50

180.379

110.5

Hirvimaa

PAL0146

3409474.8

7374728.2

141.78

48.82

181.741

259.9

Hirvimaa

PAL0086

3408735

7373936

117.43

58.94

174.342

135

Palokas

PAL0102

3408754.2

7374036.9

117.7

59.62

174.566

202.7

Palokas

PAL0106

3408864

7373985

127.74

60.49

174.837

161.1

Palokas

PRAJ0109

3408660

7373866

116

60

174.8

71.7

Palokas

PRAJ0110

3408623

7373882.2

116

60

174

100.05

Palokas

PRAJ0111

3408649

7373844

116

60

174.5

71.8

Palokas

PRAJ0116

3408623.6

7373830.9

116

60

173.9

100.05

Palokas

PAL0085

3408764.3

7372323.9

60.45

69.78

173.491

215.7

Raja

PAL0092

3408707

7372440.4

60

83.85

174.971

323.9

Raja

PAL0097

3408707

7372441

58.08

69.41

174.934

344.7

Raja

PAL0100

3408707

7372441

60.03

61.94

174.889

343.8

Raja

PAL0111

3408577

7372514

60.65

69.23

177.633

432.3

Raja

PAL0118

3408577.3

7372513.8

60.8

61.74

177.649

445.6

Raja

PAL0124

3408563

7372192

73.42

48.37

173.658

132.6

Raja

PAL0125

3408577.5

7372513.9

60.35

56.95

177.439

112.5

Raja

PAL0052

3410567.9

7373391.9

151.5

48.4

160.257

100.2

Regional

PAL0054

3410651.2

7373254.2

150

50.8

163.018

154.5

Regional

PAL0133

3410336

7373235

136.73

49.45

163.61

167.3

Regional

PAL0137

3410476.3

7373094.8

136.76

49.24

159.136

212

Regional

PAL0138

3410582

7372990

134.29

50.56

156.584

221.2

Regional

PAL0141

3411012.5

7372820.3

141.54

49.31

159.748

143.35

Regional

PAL0021

3408115

7372552

160

53.5

179.2

172.2

Rumajärvi

PAL0022

3408175

7372408.5

160

55

181.8

100.5

Rumajärvi

PAL0039

3408010.3

7372471.4

120.5

49.3

177.672

248.8

Rumajärvi

PAL0040

3407938

7372359

120.6

49.6

178.257

200.1

Rumajärvi

PAL0053

3408284

7372532

183.7

60.2

175.266

260.8

Rumajärvi

PAL0059

3408091

7372461

151.2

59.1

177.091

157.1

Rumajärvi

PAL0063

3407948.6

7372717.3

114.2

49.8

172.776

173.9

Rumajärvi

PAL0108

3407960.6

7372405.2

120.13

59.87

175.811

226.9

Rumajärvi

PAL0114

3407875.1

7372382.9

118.84

46.71

174.517

218.4

Rumajärvi

PAL0115

3407900

7372520

123.79

46.97

173.064

320.1

Rumajärvi

PAL0084

3408481

7373565

119.6

-64.06

174.41

191.2

South Palokas

PAL0094

3408527

7373605

120.67

59.51

173.519

191

South Palokas

PAL0096

3408590.8

7373662.3

115.12

60.13

173.444

131

South Palokas

PAL0098

3408379.6

7373476.5

118.27

60.44

173.536

199.9

South Palokas

PAL0035

3408095.2

7372897.8

137.1

60.2

176.872

191.8

Terry's Hammer

PAL0036

3408123

7372857

139.6

59.4

175.424

115.05

Terry's Hammer

Table 3: Better intersections from the 2018 Winter Assay and Re-assay Program.

Intersections are reported with a lower cut of 0.5g/t Au or Au EQ over 1 metre lower cut. No upper cut-off was applied.

hole_id

From

(m)

To

(m)

Width

(m)

Au Eq

(g/t)

Au

(g/t)

Co

ppm

PAL0008

33.0

34.0

1.0

1.4

1.4

13

PAL0022

16.6

17.8

1.2

2.4

2.3

46

PAL0039

108.5

109.5

1.0

0.8

0.1

351

PAL0039

110.8

113.1

2.3

1.7

0.6

536

PAL0039

115.1

116.1

1.0

0.7

0.0

305

PAL0040

35.3

43.3

8.0

1.6

0.8

370

PAL0040

99.9

100.9

1.0

0.8

0.0

392

PAL0053

65.7

66.7

1.0

3.9

0.5

1610

PAL0053

68.7

69.7

1.0

4.1

1.1

1490

PAL0084

58.8

60.3

1.6

1.6

0.0

732

PAL0084

90.8

91.7

0.9

0.6

0.0

292

PAL0085

96.0

97.0

1.0

0.9

0.0

436

PAL0085

124.0

134.9

10.9

5.0

3.8

569

PAL0085

135.9

136.9

1.0

0.6

0.4

99

PAL0085

137.9

138.9

1.0

0.6

0.5

45

PAL0085

170.0

171.0

1.0

1.7

1.7

9

PAL0086

3.3

4.2

0.9

1.0

0.6

219

PAL0086

48.7

52.7

4.0

0.7

0.2

267

PAL0092

241.0

242.0

1.0

1.1

0.0

538

PAL0092

245.0

250.0

5.0

16.1

14.2

938

PAL0094

71.1

73.0

1.9

1.1

0.0

534

PAL0094

129.1

130.0

0.8

2.1

0.0

996

PAL0097

162.0

167.6

5.6

0.8

0.3

214

PAL0097

169.6

171.6

2.0

1.0

0.4

317

PAL0097

197.0

198.3

1.3

1.0

0.7

147

PAL0097

200.3

201.4

1.1

1.0

0.6

205

PAL0097

234.0

235.0

1.0

1.4

0.0

658

PAL0097

255.6

264.3

8.7

1.6

1.3

167

PAL0097

269.3

270.3

1.0

1.6

1.5

57

PAL0097

272.3

274.3

2.0

0.7

0.1

270

PAL0097

276.3

287.2

11.0

2.6

0.8

880

PAL0097

290.5

291.6

1.2

3.4

2.5

418

PAL0097

294.8

296.8

2.1

4.4

2.7

852

PAL0097

298.6

299.5

0.9

1.9

0.1

863

PAL0098

29.6

30.6

1.1

1.3

0.9

225

PAL0098

35.6

36.6

0.9

5.0

4.9

25

PAL0098

39.3

40.3

1.0

1.6

1.2

198

PAL0100

198.2

198.8

0.6

0.7

0.0

335

PAL0100

230.5

231.0

0.6

1.8

0.0

843

PAL0100

232.7

244.8

12.1

1.3

0.0

611

PAL0100

249.2

250.2

1.0

0.5

0.0

229

PAL0100

251.2

253.2

2.0

1.0

0.0

461

PAL0100

261.2

262.2

1.0

0.8

0.1

363

PAL0100

285.0

296.3

11.3

1.7

0.9

401

PAL0100

300.0

301.0

1.0

1.6

1.4

118

PAL0108

60.0

61.0

1.0

0.7

0.1

304

PAL0111

350.7

351.7

1.0

0.9

0.5

170

PAL0111

353.7

357.7

4.0

0.7

0.1

299

PAL0111

412.0

412.6

0.6

1.5

1.5

8

PAL0114

14.7

15.9

1.2

0.6

0.0

271

PAL0114

18.7

19.9

1.2

0.5

0.1

231

PAL0114

123.5

124.1

0.5

0.7

0.0

353

PAL0115

87.8

93.8

6.0

1.0

0.0

450

PAL0115

108.9

110.2

1.3

0.7

0.1

311

PAL0115

117.0

127.9

10.9

1.1

0.3

385

PAL0115

163.0

169.0

6.0

1.2

0.2

441

PAL0115

230.6

231.4

0.8

0.8

0.6

102

PAL0118

262.0

263.0

1.0

1.1

0.0

495

PAL0118

322.0

331.6

9.6

3.2

2.1

534

PAL0118

365.3

386.0

20.7

5.6

3.6

956

PAL0118

388.0

392.9

4.9

1.4

0.7

317

PAL0118

401.1

403.6

2.5

1.4

0.3

518

PAL0124

54.0

55.1

1.1

0.6

0.0

290

PAL0146

204.4

205.4

1.0

1.5

0.1

704

PAL0146

206.4

207.3

0.9

0.8

0.1

331

PRAJ0109

28.9

31.1

2.2

1.7

0.1

777

PRAJ0109

33.1

34.4

1.3

1.9

0.7

591

PRAJ0109

38.7

71.7

33.0

4.2

3.1

547

PRAJ0110

63.9

66.0

2.1

0.9

0.0

427

PRAJ0110

68.0

69.1

1.1

0.9

0.1

372

PRAJ0110

70.2

92.2

22.0

2.9

1.5

664

PRAJ0110

94.3

95.3

1.0

0.7

0.5

90

PRAJ0110

97.3

99.8

2.5

2.5

0.3

1091

PRAJ0111

30.3

64.9

34.6

2.6

1.2

693

PRAJ0116

66.4

69.4

3.0

2.4

1.9

250

Mawson Resources Ltd. (CNW Group/Mawson Resources Ltd.)

SOURCE Mawson Resources Ltd.

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