Mawson Resources Ltd. Drills 4.9 m @ 18.0 g/t Gold and 1,236 ppm Cobalt in Deepest Intersection at Palokas

Highlights:

• The deepest mineralized intersection drilled at Palokas to date, PAL0236, intersected 4.9 metres @ 18.0 g/t gold, 1,236 ppm cobalt, 18.8 g/t gold equivalent ("AuEq") from 449.7 metres including 2.0 metres at 31.2 g/t gold from 452.6 metres (Tables 1-4, Figures 1-3);
  • PAL0236 is located 360 metres vertically and 450 metres down plunge from the surface, 250 metres from the 2018 inferred resource (>2 g/t lower-cut) and 140 metres NW and down plunge from previously reported drill hole PAL0222 8.2 metres @ 19.1 g/t Au, 1,572 ppm cobalt, 20.1 g/t AuEq from 266.9 metres and 190 metres from PAL0228 7.0 metres @ 17.0 g/t gold, 2,168 ppm cobalt, 18.4 g/t AuEq from 251.4 metres;
• Drill hole PAL0216 located 24 metres north east of PAL0222 at Palokas returned 4.0 metres @ 6.0 g/t gold, 456 ppm cobalt, 6.3g/t AuEq from 262.0 metres, 1.0 metres @ 3.2 g/t gold from 273.9 metres and 2.0 metres @ 7.4 g/t gold from 319.0 metres (Tables 1-4, Figures 1-3);

Mr. Hudson, Chairman and CEO, states, "Drilling continues to return impressively high-grade intersections with 4.9 metres @ 18.0 g/t gold and 1,236 ppm cobalt in our deepest intersection to date from Palokas. The project continues to demonstrate grade and width with significant step-outs, while also demonstrating considerable room for expansion, particularly down plunge and southwards towards the South Palokas prospect. Geological modelling based on core logging and assaying remains on schedule to deliver an updated resource at Rajapalot at the start of Q3 2020."

Gold and cobalt assay results from five drill holes from Palokas prospect are released here (PAL0215, 0216, 0231, 0233 and 0236). The 2020 winter drill program consisted of 37 drill holes for 14,132 metres (including one wedged drill hole and deepening an existing hole). To date Mawson and has released results from 29 drill holes on 20^th January, 5^th and 28^th February, 9^th March, 20^th April, 2020 and here. Eight drill holes remain to be reported.

Distinct high-grade zones within the larger mineralized footprint at Palokas-South Palokas are becoming more evident as drill results are returned. PAL0236 adds more strength to the high grade-width intersections of Table 4 (2 g/t gold lower cut) intersections drilled to date at Rajapalot. The high-grade intersections from the 2020 drill campaign are a significant addition to the Palokas prospect (Figures 2 & 3). These include drill hole PAL0222 (8.2 metres @ 19.1 g/t Au, 1,572 ppm cobalt, 20.1 g/t AuEq), the plunge extent is defined from the shallower intersection in PAL0228 (7.0 metres @ 17.0 g/t gold, 2,168 ppm cobalt, 18.4 g/t AuEq), towards PAL0236 and PAL0194 (7.8 metres @ 5.1 g/t Au, 4,454 ppm cobalt, 7.9 g/t AuEq from 425.1 metres). The continuity of these high-grade trends is encouraging as the Company learns more about the detailed distribution of mineralization. All three prospect areas with inferred resources at Rajapalot remain open, with further drilling required.

Further results reported here from the Palokas prospect include PAL0215 intersected 3.8 metres @ 0.7 g/t gold, 194 ppm cobalt, 0.9 g/t AuEq from 294.9 metres and PAL0231 intersected 2.3 metres @ 3.1 g/t gold, 272 ppm Co, 3.1 g/t AuEq from 342.0 metres. PAL0233 contained no significant mineralization.

A plan view of the completed drill holes and the locations of drill holes reported here are shown in Figures 1-3 with corresponding collar and assay data in Tables 1-3. Intersections in the plan view (Figure 2) and oblique section in Figure 3 are coloured by AuEq grade to show the higher grade zones at Palokas and South Palokas.

Assuming a predominant stratabound control, the true thickness of the mineralized interval is interpreted to be approximately 90% of the sampled thickness. Gold-only intersections are reported with a lower-cut of 0.5 g/t gold over a 1 metre width. No upper cut-off was applied. Where cobalt data becomes available, a lower cut of 0.3 g/t AuEq is used, based on modifying the open pit Whittle^TM optimized open pit lower cut-off grade of 0.37 g/t AuEq developed for the 2018 resource recalculated to a dollar value per tonne against current averaged gold and cobalt prices (and therefore the 2018 resource cutoff 0.37 g/t AuEq is the same value per tonne as 0.30 g/t AuEq today). Where gold is below detection limit, half the cutoff grade is used in calculating the average grade for an interval and in determining the gold equivalent value.

Technical and Environmental Background

Up to five diamond drill rigs from the Arctic Drilling Company OY ("ADC") and Kati OY ("Kati") all with water recirculation and drill cuttings collection systems are used in the drill program. Core diameter is NQ2 (50.7 mm). Core recoveries are 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 are 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. Analytical samples are transported by commercial transport from site to the CRS Minlab Oy facility in Kempele, Finland. Samples 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. Samples for multi-element analysis (including cobalt) are pulped at CRS Minlab, then transported by air to the MSA labs in Vancouver, Canada and analyzed using four acid digest ICP-MS methods. The QA/QC program of Mawson consists of the systematic insertion of certified standards of known gold content, duplicate samples by quartering the core, and blanks the within interpreted mineralized rock. In addition, CRS inserts blanks and standards into the analytical process.

Three-month average gold and cobalt prices have been used to calculate AuEq values according to the following:

• Average gold price $1,580 per oz
• Average cobalt price $14.50 per pound
• Resulting in gold equivalent formula of AuEq g/t = Au g/t + (Co ppm/1,589).

The host rocks to the gold and cobalt mineralization comprise sulphides (pyrrhotite>>pyrite) with biotite-muscovite-chlorite schists at South Palokas and Mg-Fe amphibole-biotite-chlorite rocks at Palokas. Veining and fracture fill minerals include pyrrhotite, magnetite and magnetite-pyrrhotite (+/- quartz, tourmaline). Retrograde chlorite after biotite, generations of secondary muscovite ("sericite") and vein-controlled chlorite+/- tourmaline and magnetite are also present. Preliminary hand-held XRF analysis confirms the presence of associated scheelite and molybdenite, the former visible under UV light as tiny veinlets and disseminations. The minerals associated with the gold are clearly post-metamorphic, reduced, and most likely driven by hydrothermal fluids from nearby granitoid intrusions. Chlorite and fine muscovite are regarded as the lowest temperature silicate minerals with gold, structurally controlled in apparent spatial association with quartz and/or K-feldspar veins. Altered rocks enclosing the mineralized package contain locally abundant talc and tourmaline.

All maps have been created within the KKJ3/Finland Uniform Coordinate System (EPSG:2393).

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.

NI 43-101 Technical Report:

On December 19, 2018, Mawson filed an independent National Instrument 43-101 Technical Report (the "NI 43-101 Technical Report") on the Mineral Resource Estimate for the Raja and Palokas Prospects, at the 100% owned Rajapalot Project in Finland, (the "NI 43-101 Technical Report"), in support of the Company's news release dated December 17, 2018. The NI 43-101 Technical Report was authorized by Mr. Rod Webster of AMC Consultants Pty Ltd ("AMC") of Melbourne, Australia, and Dr. Kurt Simon Forrester of Arn Perspective of Surrey, England. Each of Mr. Webster and Dr. Forrester are independent "qualified persons" as defined by National Instrument 43-101. The NI 43-101 Technical Report may be found on the Company's website at www.mawsonresources.com or under the Company's profile on SEDAR at www.sedar.com. For the 2018 resource, the gold equivalent ("AuEq") value was calculated using averaged prices of the time, resulting in the following formula: AuEq g/t = Au g/t + (Co ppm/608) with assumed prices of Co $30/lb; and Au $1,250/oz. AuEq varies with Au and Co prices.

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

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

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 herein, 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 of Rajapalot showing historic drilling and high-grade intersections using a lower cut-off grade of 2 g/t gold. The plan view of the 2018 NI43-101 resource is also indicated using a 0.37 g/t AuEq lower cut. Note the modelled ground TEM plates, virtually untested by drilling, form potential new target areas.

Figure 2: Plan view of Palokas and South Palokas prospects with significant drill intersections reported from areas largely outside the projection of the 2018 Inferred Resource (surface projection of these resources shown here are 0.37 g/t AuEq lower-cut).

Figure 3: Long section showing outline of 2018 resource (>2 g/t AuEq lower-cut) and significant grade-width intersections (coloured dots) showing new results from PAL0216, 0231, 0233 and 0236 extending mineralization beyond the current resource areas (red dashed outlines). The view is looking onto mineralized surface at Palokas and South Palokas (this view is looking at 60 degrees towards 120). Red dotted outline represents the current estimated limits to mineralized rocks, although testing between Palokas and South Palokas is restricted to just four shallow drill holes.

Table 1: Collar Information from 2019-20 Winter drilling at the Rajapalot Project (Finnish Grid, Projection KKJ3; the "A" postscript refers to a daughter hole off the primary hole and the depth range of the drill hole is indicated)

Table 2: Intersections from the 2019-20 Winter Drill Program. Intersections are reported with a lower cut of 0.3g/t AuEq (using updated gold and cobalt prices of $1,580 per ounce and 14.50 per pound respectively) over 1 metre lower cut. No upper cut-off was applied.

Table 3: Individual assay data from drill holes reported in this press release.

Table 4: The top 40 high-grade intersections from the Rajapalot project. Note that 19 of these intersections (in bold) were not included in the 2018 Inferred Resource. Intersections are reported with a lower cut of 2.0 g/t AuEq (using updated gold and cobalt prices of $1,580 per ounce and 14.50 per pound respectively) over 1 metre lower cut. No upper cut-off was applied. PAL0236 ranks in the top ten of all intersections by grade-width in the Rajapalot project.