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Mawson Identifies Extensive Cobalt Mineralization at Rajapalot, Finland

Tuesday, May 15th, 2018

Mawson Resources Limited (“Mawson”) or (the “Company”) (TSX:MAW) (Frankfurt:MXR) (PINKSHEETS: MWSNF) announces the discovery of highly significant cobalt enrichment associated with previously identified gold mineralization at the Company’s 100% owned Rajapalot project in northern Finland. Following an extensive multi-element drill core re-assay program, followed by a mineralogical QEMSCAN study led by the Geological Survey of Finland (“GTK”) to determine mineral association, numerous intervals have been identified which mirror and extend gold mineralized zones. These drill results are considered highly encouraging in the context of existing high-grade gold mineralization.

Cobalt is a key component in the cathode of most lithium-ion batteries and is considered crucial in the switch to electric mobility and greener generation and storage of energy.As a result, the cobalt price has escalated approximately 300% within the past two years. Cobalt is on the European Commission’s critical raw minerals list, delivering a strong mandate to discover and develop local and ethically produced supply alternatives.

With the world’s largest cobalt refinery, Freeport Cobalt, located only 400 kilometres south in Kokkola, Rajapalot is ideally positioned to play an important role as a potential sustainable and transparent supplier to the fast-growing European lithium ion battery supply chain.

Key Points:

  • A newly identified cobalt association with previously known gold mineralization at the Rajapalot project. Significant cobalt has been initially discovered in association with and peripheral to gold mineralization across an area of 3 kilometres by 4 kilometres that remains open in all directions;
  • Cobalt is an essential part of the cathode within lithium ion batteries.Owing to the rapid increase in electrification of transport, the price of cobalt has jumped 300% in the past 2 years;
  • Significant assays received to date include (full assay table shown in Table 1):
    • PAL0075: 10.8 metres @ 1,299 ppm Co, 6.2g/t Au (8.7g/t AuEq) from 8.7 metres
    • PRAJ0009: 30.8 metres @ 525 ppm Co, 7.1g/t Au (8.2g/t AuEq) from 2.5 metres
    • PRAJ0006: 19.5 metres @ 696 ppm Co, 7.1g/t Au (8.5g/t AuEq) from 1.3 metres
    • PRAJ0107: 15.0 metres @ 602 ppm Co, 8.7g/t Au (9.9g/t AuEq) from 24.7 metres
  • Combined gold-cobalt mineralized intersections display increased widths and often show better continuity.
  • Mineralogical studies on selected Rajapalot samples indicates that sulphide cobalt mineralization is hosted in cobaltite and cobalt pentlandite that are conventionally mined and processed in other deposits;
  • Results indicate the cobalt has the potential to add significant value as a by-product. Results received to date show gold equivalent (“AuEq”) assays that incorporate cobalt are 20-30% higher than gold only (“Au”) assays;
  • Finland is an attractive jurisdiction for the discovery and development of cobalt. Finland presently refines half of the world’s cobalt outside of China, relying on predominantly imported feedstock from a Chinese-owned mine in the Democratic Republic of Congo. A future domestic Finnish source of cobalt would satisfy the recent announcements by Finland and Sweden that the countries will work together on a traceable ledger for sustainable minerals, considered crucial for achieving climate goals.

Mr. Hudson, Chairman and CEO, states, “This re-assay program of drill holes from Rajapalot has highlighted a significant opportunity for Mawson in the battery metals sector. Gold remains the key commodity at Rajapalot by value, however the identification of widespread cobalt enrichment in minerals that are the source of most cobalt mined today, has the potential to add a significant by-product credit to the project. Owing to Finland’s strong position in the processing of cobalt sulphide concentrates, Rajapalot presents as an attractive option for future ethically-sourced cobalt for Europe. To date, less than half the holes drilled at Rajapalot have been assayed for cobalt. Based on this early success, Mawson is now undertaking an extensive re-assay program with the results released in the coming months. Further mineralogical and metallurgical testwork is also planned.”
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