Mawson West Limited: Kapulo Project Mineral Resource Update

Highlights:

- 2013 Kapulo resource definition drilling complete;

- Substantial upgrade of resource confidence categories: 54% of resource tonnes and 64% of estimated copper metal now in Measured category;

- Measured and Indicated Resources of 6.23Mt @ 3.02% Cu for 188,000t contained copper above 0.7% Cu cut-off, plus 2.9Mt @ 2.0% Cu for 56,000t contained copper in Inferred Resources

PERTH, AUSTRALIA--(Marketwired - Jan 22, 2014) - Mawson West Ltd. (TSX:MWE) ("Mawson West" or "the Company") is pleased to provide updated estimates of the Mineral Resources at the Company's Kapulo copper project in the Democratic Republic of Congo ("DRC").

Mawson West Chief Executive Bruce McFadzean said:

"The 2011 Kapulo feasibility study relied upon Mineral Reserves from the Shaba deposit only; the Safari North and Safari South deposits required further drilling at that time. Infill drilling has now enabled us to upgrade the confidence categories of Mineral Resource estimates at all the Kapulo deposits. We look forward to completing an economic analysis and reporting Mineral Reserves late this quarter."

Overview

Kapulo comprises three outcropping copper deposits, Shaba, Safari North and Safari South (Figure 1). The deposits feature high-grade hydrothermal copper mineralisation associated with the Kapulo Fault.

Drilling programs completed in 2013 were designed to upgrade the confidence categories of resource estimates at all three deposits and obtain core samples for further metallurgical test work, particularly at Safari North. The improved knowledge will, after economic analysis, permit a more robust estimate of Mineral Reserves at Shaba deposit and maiden estimates of Mineral Reserves at Safari. The 2013 programs to early November totalled 9,044 metres in reverse circulation (RC) holes and 7,486 metres in 58 diamond core holes (including 2,019 metres in RC pre-collars).

The additional assay data now available, along with updated geological interpretations, have been utilized by Perth-based MPR Geological Consultants Pty Ltd to generate updated resource models for all three deposits. The resulting Mineral Resources are reported after applying depth and cut-off grade constraints that the Company considers comply with the "reasonable prospect of economic extraction" test required by National Instrument 43-101.

Applying 0.7% Cu cut-off grade, resources that have potential for extraction by open pit mining in the three deposits total:

• 4.96 Million tonnes @ 3.16% Cu for 157,000 tonnes contained copper in Measured Resources;
• 1.27 Million tonnes @ 2.48% Cu for 31,500 tonnes contained copper in Indicated Resources;
• Total 6.23 Million tonnes @ 3.02% Cu for 188,000 tonnes contained copper in Measured and Indicated Resources, and
• 2.87 Million tonnes @ 2.0% Cu for 56,000t contained Cu in Inferred Resources.

Table 1 summarises the updated Mineral Resource estimates.

Relative to previous estimates, the new resource models more reliably delineate and estimate high grade zones in each of the deposits. The updated resource models will form the basis for new Mineral Reserve estimates, mining schedules and financial modelling to be undertaken in Q1 2014.

Each of the deposits remains open down-plunge and future exploration efforts will be directed toward drill testing depth extensions and evaluating other targets along strike on the Kapulo Fault.

Table 1: Kapulo Project Mineral Resources

Notes: Rounding of figures to appropriate precisions has resulted in apparent inconsistencies. Contained copper metal is quoted in-situ. Kt = thousand tonnes.

Figure 1: Kapulo project location and proposed infrastructure - http://media3.marketwire.com/docs/Fig10121.pdf.

Shaba Deposit

Shaba is a tabular deposit extending over a strike length of 460 metres and dipping westerly at approximately 60 degrees (Figure 2). Mineralisation averages 30 metres true width, reaching up to 65 metres true width, and plunges to the south in the plane of the lode. The deposit contains a distinct, high-grade hangingwall zone with copper grades commonly exceeding six per cent that offers potential to accelerate metal production in the early years of mine life.

Drilling has tested Shaba to a maximum depth of about 350 metres below surface where mineralisation remains open down-plunge. Preliminary pit optimisations indicate that resources above approximately 270 metres depth (900mRL) have potential for economic extraction and the economic cut-off grade is likely to be in the range 0.5-1.0% Cu.

Shaba estimated resources are listed in Table 2 and Figure 3 shows a long-section view of the resource block model.
Table 2: Shaba Estimated Resources, above 900mRL

Notes: Rounding of figures to appropriate precisions has resulted in apparent inconsistencies. Contained copper metal is quoted in-situ. Kt = thousand tonnes.

Figure 2: Drill cross-section through Shaba deposit - http://media3.marketwire.com/docs/Fig20121.pdf.

Figure 3: Shaba deposit long-section looking west, shown as a 2-dimensional representation of the resource block model with blocks coloured by accumulated copper tonnes in blocks grading 0.7% Cu or greater - http://media3.marketwire.com/docs/Fig30121.pdf.

Safari North Deposit

Drilling has now confirmed that mineralisation is continuous between Safari North and South deposits but Safari North can be distinguished as hosting higher tenor grades and has been drilled to greater depth. The two deposits have been treated separately for the purposes of resource estimation.

The Safari North deposit extends over 430 metres strike length, with mineralisation ranging between 10 and 45 metres true width and dipping at 50 degrees to the west (Figure 4). A high-grade and thicker core to the lode plunges to the south. Drill coverage extends to a maximum 180 metres below surface and mineralisation remains open at that depth. Preliminary pit optimisations indicate that resources above approximately 200 metres depth (1000mRL) have potential for economic extraction and the economic cut-off grade is likely to be in the range of 0.5-1.0% Cu.

Safari North estimated resources are listed in Table 3 and Figure 5 shows a long-section view of the resource model.

Table 3: Safari North Estimated Resources, above 1000mRL

Notes: Rounding of figures to appropriate precisions has resulted in apparent inconsistencies. Contained copper metal is quoted in-situ. Kt = thousand tonnes.

Figure 4: Drill cross-section through Safari North deposit - http://media3.marketwire.com/docs/Fig40121.pdf.

Figure 5: Safari North deposit long-section looking west, shown as a 2-dimensional representation of the resource block model with blocks coloured by accumulated copper tonnes in blocks grading 0.7% Cu or greater - http://media3.marketwire.com/docs/Fig50121.pdf.

Safari South Deposit

Safari South mineralisation extends over 460 metres strike length with true widths up to 45 metres and averaging 23 metres. It is a tabular deposit of generally lower tenor than Safari North, although drill coverage generally extends to only about 65 metres vertical depth at present. Figure 6 shows a cross-section through Safari South and Figure 7 shows a long-section view of the resource model. With the model extending to a maximum depth of only about 70 metres vertical depth (1120mRL) it is considered that the entire resource may potentially be economically extractable and thus no depth constraint has been applied.

Table 4: Safari South Estimated Resources

Notes: Rounding of figures to appropriate precisions has resulted in apparent inconsistencies. Contained copper metal is quoted in-situ. Kt = thousand tonnes.

Figure 6: Drill cross-section through Safari South deposit - http://media3.marketwire.com/docs/Fig60121.pdf.

Figure 7: Safari South deposit long-section looking west, shown as a 2-dimensional representation of the resource block model with blocks coloured by accumulated copper tonnes in blocks grading 0.7% Cu or greater - http://media3.marketwire.com/docs/Fig70121.pdf.

Comparisons to Previous Estimates

Previous Mineral Resource estimates by Coffey Mining Ltd in June 2011 are tabulated in Appendix A.

The updated Mineral Resources reported in this release are not directly comparable with previous estimates because they cover different geographic extents. They are informed by an additional 16,530 metres of combined RC and diamond core drilling and have been reported using modified depth constraints and cut-off grades that, in the Company's view, reflect reasonable economic constraints.

Previous resource estimates have included estimated silver grades. Samples from Mawson's 2013 drilling were assayed at SGS's Dikulushi laboratory using a technique with a lower detection limit for silver of 5ppm. Whilst adequate for the much higher silver grades encountered at Dikulushi, the precision of those assays is not sufficient to permit reliable estimates of the lower silver grades in the Kapulo deposits. The updated Mineral Resource estimate at Kapulo therefore does not include silver content.

Resource Estimate Technical Notes:

For each deposit:

• Reliability of assay data was checked by examining assays of reference materials, blanks and duplicate samples and records of sample recoveries;
• Drill hole location and survey data were checked for spatial integrity;
• Drill hole assay data were composited to uniform one metre down-hole lengths;
• Assay composites were domained using wireframes of mineralisation capturing zones of continuous mineralisation grading greater than nominally 0.2% Cu, guided by geological logging;
• Assay composites were also domained using triangulated surfaces representing weathering boundaries;
• Univariate statistics of copper grade populations in each of the (sub)domains were examined and top cuts selected to limit the influence of extreme grades;
• Copper grades were estimated for blocks with dimensions 10mN x 5mE x 5mRL using Ordinary Kriging with only assay composites of the mineralised domains informing the estimates;
• Block grade estimates were checked against informing data for global and conditional bias and for spatial correlation;
• Bulk densities derived by water immersion method of drill core were examined for each of the weathering domains and linearly correlated with copper grades to derive grade-density functions. Those functions were used to estimate bulk densities applied to each of the model blocks;
• At 0.7% Cu cut-off, densities average 2.54 t/bcm for the combined Measured and Indicated resources and 2.53 t/bcm for the Inferred resources;
• Block factors, reflecting the proportion of each block lying inside the constraining mineralisation wireframe and below the surveyed topographic surface, were applied to calculate tonnage estimates;
• Resource blocks were assigned confidence categories based on the number of data informing each block estimate and the spacing and geometric distribution of those data;
• For Safari deposit, estimates informed by consistently 20 x 20 metre or closer spaced drilling are classified as Measured and estimates informed by drill spacings between 20 x 20 and 40 x 40 metres are classified as Indicated. Estimates for areas of broader spaced drilling or at the peripheries of drill coverage are assigned to the Inferred category;
• For Shaba deposit, estimates informed by consistently 30 x 30 metre or closer spaced drilling are classified as Measured and estimates informed by drill spacings between 30 x 30 and 40 x 40 metres are classified as Indicated. Estimates for areas of broader spaced drilling or at the peripheries of drill coverage are assigned to the Inferred category.

Qualified Persons' Statements

The technical information contained in this document that relates to the updated Kapulo Mineral Resource estimates is based on information compiled by Mr. Jonathon Abbott, a Member of the Australian Institute of Geoscientists. Mr Abbott is a full-time employee of MPR Geological Consultants Pty Ltd and is independent of Mawson West. Mr. Abbott has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and as a Qualified Person as defined in National Instrument 43-101 "Standards of Disclosure for Mineral Projects". Mr. Abbott has reviewed and accepts responsibility for the technical information contained in this document that relates to Mineral Resources and has consented to the inclusion of the matters based on his information in the form and context in which it appears in this document.

The Qualified Person responsible for preparing sections of the NI43-101 Technical Report "Kapulo Copper Project, DRC" dated 30 June 2011 that deal with resource estimates in that report and is referred to in this document (Mr Steve LeBrun) is no longer employed by Coffey Mining, and, therefore, where Mr LeBrun was responsible for preparing the defined portions of the Technical Report, Coffey consents to being named in Mawson West Ltd.'s announcement "Kapulo Project Mineral Resource Update", dated January 22, 2014. Coffey confirms that this document has been reviewed, including the written disclosure of the Technical Report summarised in the document, and Coffey has no reason to believe that there are any misrepresentations in the information contained therein that are derived from the Technical Report or within its knowledge as a result of the services performed by Coffey in connection with the preparation of the Technical Report.

About Mawson West

Mawson West is a copper and silver-focused resource company listed on the Toronto Stock Exchange (TSX) and based in Perth, Australia.

The Company's two key projects are the Dikulushi copper-silver mine and the Kapulo copper mine located in the South Eastern province of the Democratic Republic of Congo (DRC). Mawson West also continues to focus on exploring multiple prospective targets located within its significant land holding of approximately 7,300km² in the DRC's rich copper belt.

Forward-looking statements

This news release contains certain "forward looking statements". These statements reflect management's current beliefs with respect to future events and are based on information currently available to management of the Company. Forward-looking statements involve significant risks, uncertainties and assumptions. Many factors could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including (without limitation) the risks identified in the "Risk Factors" section of the Company's Annual Information Form and other public filings (copies of which may be obtained at www.sedar.com). The results or events depicted in these forward-looking statements may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this press release.

Appendix A - Previous Kapulo Mineral Resource Estimates

Shaba, Safari North and Safari South June 2011 Mineral Resource estimates above 0.3% Cu cut-off grade. Ordinary kriged estimates using 2m cut Cu composites, parent cell dimensions of 10mE x 20mN x 5mRL, depleted for artisanal surface mining. Source: NI43-101 Technical Report "Kapulo Copper Project, DRC" dated 30 June 2011.

Note: Figures have been rounded. "HW" refers to Hangingwall portion (domain) of each deposit. "FW" refers to the footwall portion (domain).

Mt = million tonnes