Mawson Resources Ltd. Drills 5.0 m at 5.9 g/t gold Within Thickest Intercept to Date at Palokas, Finland

Highlights:

• In the thickest mineralized intersection drilled on the Rajapalot project to date, PAL0227, located in an interpreted fold hinge intersected (uncut) 44.6 metres @ 1.4 g/t gold, 452 ppm cobalt, 1.6 g/t gold equivalent ("AuEq") from 294.2 metres which includes 5.0 metres @ 5.9 g/t Au, 679 ppm Co, 6.3 g/t AuEq from 294.2 metres (Tables 1-4, Figures 1-3).
• PAL0227 is located between 40 to 70 metres west of previously reported drill hole PAL0222 which intersected 7.2 metres @ 21.7 g/t gold from 267.9 metres. Intersections within PAL0227 include:
  • PAL0227: 5.0 metres @ 5.9 g/t Au, 679 ppm Co, 6.3 g/t AuEq from 294.2 metres;
  • PAL0227: 7.8 metres @ 1.3 g/t Au, 516 ppm Co, 1.6 g/t AuEq from 308.0 metres;
  • PAL0227: 9.2 metres @ 0.7 g/t Au, 840 ppm Co, 1.2 g/t AuEq from 321.8 metres, and;
  • PAL0227: 4.7 metres @ 2.6 g/t Au, 56 ppm Co, 2.7 g/t AuEq from 334.0 metres
• PAL0223 intersected 16.2 m @ 1.5 g/t gold, 407 ppm cobalt, 1.8 g/t AuEq or including 1.0 metre @ 12.8 g/t gold, 286 ppm Co, 13.0 g/t AuEq and was drilled 30 metres west of previously reported drill hole PAL0213 which intersected 17.7 metres @ 3.8 g/t gold, 880 ppm cobalt, 4.3 g/t AuEq" from 293.0 metres and 6.0 metres @ 9.2 g/t Au, 1,364 ppm Co, 10.0 g/t AuEq from 317.0 metres.
• PAL0230 at the Raja prospect intersected 4.0 metres @ 2.5 g/t gold from 551.0 metres including 1 metre @ 6.9 g/t gold, 204 ppm cobalt, 7.0 g/t AuEq;
  • PAL0230 is 300 metre step-out from the 2018 resource and is 550 metres vertically and 900 metres down plunge from surface, making it the deepest mineralized intersection on the project and demonstrating the Raja system remakes and continues at depth;
• An updated resource estimate is planned for Q3 2020;
  • As the 2020 winter program winds up, we note 19 of the top 40 high-grade drill intersections by grade-width AuEq, including 9 holes from the 37 drilled this year were drilled after the last resource update (2 g/t AuEq lower cut-off), indicating the significant depth potential of the Rajapalot project (Figure 1).
  • Since the December 2018 maiden resource, 80 holes have been drilled at Rajapalot, which include 19 of the top 40 high-grade drill intersections by grade-width AuEq (2 g/t AuEq lower cut);
  • The 2018 resource comprised 119 holes, of which 21 intersections are contained in the current top 40 drill hole intersections. These 21 intersections averaged 72 metres down-hole depth with an average 76 AuEq grade * metres;
  • A total of 9 intersections from the 37 holes drilled this year fall in the current top 40 drill hole intersections average a down-hole depth of 282 metres with an average of 80 AuEq grade * metres, indicating the continuity and increasing grade with depth of mineralization at the Rajapalot project (Figure 1).

Mr. Hudson, Chairman and CEO, states, "The last batch of drill results from our 14.1 kilometre winter program continues to deliver with the thickest as well as the deepest intersections found to date on the project. Geological modelling based on core logging and assaying remains on schedule to deliver an updated resource at Rajapalot at the start of Q3 2020. We are also pleased that exploration programs will recommence shortly in Finland and Australia, with further information to be soon released."

Gold and cobalt assay results from the final nine drill holes from 2020 winter drill program which consisted of 37 drill holes for 14,132 metres (including one wedged drill hole and deepening an existing hole). Specifically, holes released here are from South Palokas prospect (PAL0209, 0219, 0223, 0224, 0229 and 0235), Palokas prospect (PAL0227, 0232) and the Raja prospect (PAL0230). 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. Further results reported here from the South Palokas prospect include PAL0224 which intersected 2.0 metres @ 1.7 g/t gold from 432.0 metres and PAL0229 intersected 0.8 metres @ 1.5 g/t gold, from 537.3 metres.

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 that not associated with the 2018 NI43-101 resource are virtually untested by drilling, and form potential new target areas. Intersections reported here are shown with bold text (see Figure 2 for more detail of drilling at Palokas and South Palokas prospects).

Figure 2: Plan view of coloured dots representing high-grade intersections using a 2.0 g/t AuEq cutoff for Palokas and South Palokas prospects. Only drill intersections reported in the recent 2020 drill campaign are included here (surface projection of these resources shown here are 0.37 g/t AuEq lower-cut). Drill holes in bold text represent those reported in this release.

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 holes released here are from South Palokas (PAL0223) and Palokas (PAL0227) prospects 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). The pale shaded area represents the current estimated limits to mineralized rocks, although testing between Palokas and South Palokas is restricted to just four shallow drill holes and there is no testing of the southwestern margin of South Palokas.

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. Note that 19 of the top 40 intersections by grade-width for the Rajapalot project were drilled in the most recent program.