Mawson’s Subsidiary SXG Intersects Third Best Hole, 10.4 m @ 22.4 g/t AuEq, at Sunday Creek, Victoria, Australia

Multiple high-grade veins, 9 intersections > 15 g/t gold demonstrating downdip continuity.

15,000 m still to be drilled in 2023, 4 rigs operating.

VANCOUVER, BC / ACCESSWIRE / June 1, 2023 / Mawson Gold Limited ("Mawson" or the "Company") (TSX:MAW)(Frankfurt:MXR)(PINKSHEETS:MWSNF) announces results from drillhole SDDSC066 at the Sunday Creek Project in Victoria, Australia (Figure 1). Highlights include 10.4 m @ 22.4 g/t gold equivalent ("AuEq") (18.6 g/t gold ("Au"), 2.4% antimony ("Sb")) from 542.2 m.

SDDSC066 successfully traversed across multiple (5) high-grade vein sets. Nine intervals >15 g/t Au (up to 188.8 g/t Au), and 6 intervals >5% Sb (up to 22.5% Sb) were intersected.

Sunday Creek is 100% owned by Southern Cross Gold ("SXG"), which is an ASX listed company owned 51% by Mawson. Four rigs continue to drill both in the main drill area and up to 7.5 km along strike at the Tonstal, Consols and Leviathan prospects with 16 holes being processed and analyzed and four holes (SDDSC068, 76, 77 and SDDLV001) in drill progress (Figure 2). Mineralization now extends in the main drill area over 1,350 m from Christina in the far west to SDDSC063.

Highlights:

• SDDSC066 (Figs 3-5) drilled from east to west intersected five main mineralized structures over a 312 m wide downhole interval with multiple high-grade intersections:
• 0.5 m @ 8.1 g/t AuEq (8.1 g/t Au, 0.0% Sb) from 240.1 m
• 0.3 m @ 17.4 g/t AuEq (4.4 g/t Au, 8.3% Sb) from 243.6 m
• 0.2 m @ 34.1 g/t AuEq (26.3 g/t Au, 5.0% Sb) from 297.2 m
• 10.5 m @ 5.8 g/t AuEq (4.2 g/t Au, 1.0% Sb) from 302.8 m, including:
  • 0.2 m @ 18.3 g/t AuEq (18.3 g/t Au, 0.0% Sb) from 306.2 m
  • 1.0 m @ 23.1 g/t AuEq (12.8 g/t Au, 6.5% Sb) from 308.0 m
  • 1.5 m @ 17.4 g/t AuEq (14.2 g/t Au, 2.0% Sb) from 311.0 m
• 7.8 m @ 5.4 g/t AuEq (4.0 g/t Au, 0.9 %Sb) from 401.3 m, including:
  • 0.4 m @ 42.7 g/t AuEq (28.1 g/t Au, 9.3% Sb) from 404.6 m
  • 0.2 m @ 44.0 g/t AuEq (40.5 g/t Au, 2.2% Sb) from 407.5 m
• 0.2 m @ 31.1 g/t AuEq (26.8 g/t Au, 2.7% Sb) from 408.9 m

Highlights:

SDDSC066 results continued:

• 0.5 m @ 5.4 g/t AuEq (4.5 g/t Au, 0.6% Sb) from 431.8 m
• 0.2 m @ 18.9 g/t AuEq (8.4 g/t Au, 6.6% Sb) from 506.5 m
• 5.6 m @ 1.9 g/t AuEq (1.5 g/t Au, 0.3% Sb) from 522.8 m, including:
  • 0.5 m @ 8.4 g/t AuEq (6.7 g/t Au, 1.0% Sb) from 523.9 m
• 7.4 m @ 1.8 g/t AuEq (1.7 g/t Au, 0.1% Sb) from 531.9 m, including:
  • 0.8 m @ 13.9 g/t AuEq (13.3 g/t Au, 0.4% Sb) from 538.0 m
• 10.4 m @ 22.4 g/t AuEq (18.6 g/t Au, 2.4% Sb) from 542.2 m, including:
  • 1.0 m @ 224.3 g/t AuEq (188.8 g/t Au, 22.5% Sb) from 544.2 m
  • 0.8 m @ 10.6 g/t AuEq (7.3 g/t Au, 2.1% Sb) from 549.1 m
• Mawson owns 93,750,000 shares of SXG (51%), valuing its stake at A$45.0 million (C$39.7 million) based on SXG's closing price on May 31, 2023 AEST.

Noora Ahola, Mawson Interim CEO, states: "Yet another great result from the team at Southern Cross Gold. Delivering 10.4 m @ 22.4 g/t AuEq from 542.2 m, SDDSC066 continues the discovery of high grade intercepts at depth as the third best hit at the project to date and a 250 m to 300 m depth extension of SDDSC033 that also intersected a wide mineralized footprint with high grade components (including 119.2 m @ 3.9 g/t AuEq) almost a year ago to the day.

SXG is now halfway through its 30,000 m drill campaign for 2023 and is fully funded and permitted to execute on its strategy across its 11 km mineralized trend at Sunday Creek. Given the regularity of high-grade veins, scale and continuity of mineralization, we are excited about the results which will continue to follow in the months ahead at what we consider to be one of the most exciting and high-grade gold discoveries anywhere in the world today."

Results Discussion

SDDSC066 is the third best intersection on the Sunday Creek project to date, drilled at the east end of drilled mineralization at Sunday Creek (in the Apollo area). The hole was designed to test five main mineralized vein sets and intersected 312 m @ 1.4 g/t AuEq (1.1 g/t Au, 0.2% Sb) from 240.1 m (with no lower cut). This is the greatest down dip extension of mineralization to date on the eastern end of the main mineralized body at Sunday Creek. Highlights include 10.5 m @ 5.8 g/t AuEq (4.2 g/t Au, 1.0% Sb) from 302.8 m, 7.8 m @ 5.4 g/t AuEq (4.0 g/t Au, 0.9% Sb) from 401.3 m, and 10.4 m @ 22.4 g/t AuEq (18.6 g/t Au), 2.4% Sb from 542.2 m, including 1.0 m @ 224.3 g/t AuEq (188.8 g/t Au, 22.5% Sb). In total nine intervals >15 g/t Au (up to 188.8 g/t Au), and six intervals >5% Sb (up to 22.5% Sb) were intersected.

Specifically, SDDSC066 was drilled east to west sub-parallel to the host sequence, a zone of intensely altered ‘bleached' sericite-albitic siltstones, and sericite-carbonate-albite altered dyke rocks that range from 50 m to 200 m wide. The hole was also drilled at a moderate to high angle to the north-west striking mineralized vein sets that regularly cross the host structure on a predominate north-west orientation and are typically 10 m to 40 m wide (cut off dependent), 20 m to 60 m along strike, and 300 m to 830 m down dip. Therefore, the hole was able to intersect five main mineralized structures over a 312 m wide downhole interval, while drilling inside the mineralized host.

For the first time a fibrous Pb-Sb sulphosalt, possibly boulangerite (Pb₅Sb₄S₁₁), a diagnostic alteration mineral in other epizonal deposits, including Fosterville, was identified in void spaces in quartz at 262.5 m in SDDSC066 (Photo 1).

Further discussion and analysis of the Sunday Creek project by Southern Cross Gold is available on the SXG website at www.southerncrossgold.com.au

Figures 1-5 show project location, plan, longitudinal and cross-sectional views of drill results reported here and Tables 1-3 provide collar and assay data. The true thickness of the mineralized intervals reported are interpreted to be approximately 60-70% of the sampled thickness. Lower grades were cut at 0.3 g/t Au lower cutoff over a maximum width of 3 m with higher grades cut at 5.0 g/t Au cutoff over a maximum of 1 m width, unless otherwise stated.

Update on Current Drilling

Drilling with four rigs is in progress at Sunday Creek and up to 7.5 km north-east at the Tonstal, Consols and Leviathan prospects. Sixteen new holes (SDDSC067, 69-75 and SDDTS001-7, SDDCN001 and SDDLV001) are currently being geologically processed and analyzed, with four holes (SDDSC068, 76, 77 and SDDLV001) in drill progress (Figure 2).

Technical Background and Qualified Person

The Qualified Person, Michael Hudson, Executive Chairman and a director of Mawson Gold, and a Fellow of the Australasian Institute of Mining and Metallurgy, has reviewed, verified and approved the technical contents of this release.

Analytical samples are transported to the Bendigo facility of On Site Laboratory Services ("On Site") which operates under both an ISO 9001 and NATA quality systems. Samples were prepared and analyzed for gold using the fire assay technique (PE01S method; 25 gram charge), followed by measuring the gold in solution with flame AAS equipment. Samples for multi-element analysis (BM011 and over-range methods as required) use aqua regia digestion and ICP-MS analysis. The QA/QC program of Southern Cross Gold consists of the systematic insertion of certified standards of known gold content, blanks within interpreted mineralized rock and quarter core duplicates. In addition, On Site inserts blanks and standards into the analytical process.

MAW considers that both gold and antimony that are included in the gold equivalent calculation ("AuEq") have reasonable potential to be recovered at Sunday Creek, given current geochemical understanding, historic production statistics and geologically analogous mining operations. Historically, ore from Sunday Creek was treated onsite or shipped to the Costerfield mine, located 54 km to the northwest of the project, for processing during WW1. The Costerfield mine corridor, now owned by Mandalay Resources Ltd contains two million ounces of equivalent gold (Mandalay Q3 2021 Results), and in 2020 was the sixth highest-grade global underground mine and a top 5 global producer of antimony.

SXG considers that it is appropriate to adopt the same gold equivalent variables as Mandalay Resources Ltd in its Mandalay Technical Report, 2022 dated 25 March 2022. The gold equivalence formula used by Mandalay Resources was calculated using recoveries achieved at the Costerfield Property Brunswick Processing Plant during 2020, using a gold price of US$1,700 per ounce, an antimony price of US$8,500 per tonne and 2021 total year metal recoveries of 93% for gold and 95% for antimony, and is as follows: 𝐴𝑢𝐸𝑞 = 𝐴𝑢 (𝑔/𝑡) + 1.58 × ð‘†ð‘ (%).

Based on the latest Costerfield calculation and given the similar geological styles and historic toll treatment of Sunday Creek mineralization at Costerfield, SXG considers that a 𝐴𝑢𝐸𝑞 = 𝐴𝑢 (𝑔/𝑡) + 1.58 × ð‘†ð‘ (%) is appropriate to use for the initial exploration targeting of gold-antimony mineralization at Sunday Creek.

For previously reported exploration results referenced in this news release, refer to the following:

About Mawson Gold Limited (TSX:MAW, FRANKFURT:MXR, OTCPINK:MWSNF)

Mawson Gold Limitedis an exploration and development company. Mawson has distinguished itself as a leading Nordic exploration company with its 100% owned flagship Rajapalot gold-cobalt project in Finland, and right to earn into the Skellefteå North gold project in Sweden. Mawson also currently owns 51% of Southern Cross Gold Ltd (ASX:SXG) which in turn owns or controls three high-grade, historic epizonal goldfields covering 470 km2 in Victoria, Australia.

About Southern Cross Gold Ltd (ASX:SXG)

Southern Cross Gold holds the 100%-owned Sunday Creek project in Victoria and Mt Isa project in Queensland, the Redcastle and Whroo joint ventures in Victoria, Australia, and a strategic 10% holding in ASX-listed Nagambie Resources Limited (ASX:NAG) which grants SXG a Right of First Refusal over a 3,300 square kilometer tenement package held by NAG in Victoria.

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, Mawson's expectations regarding its ownership interest in Southern Cross Gold, capital and other costs varying significantly from estimates, changes in world metal markets, changes in equity markets, the potential impact of epidemics, pandemics or other public health crises, including the current pandemic known as COVID-19 on the Company's business, risks related to negative publicity with respect to the Company or the mining industry in general; exploration potential being conceptual in nature, there being insufficient exploration to define a mineral resource on the Australian-projects owned by SXG, and uncertainty if further exploration will result in the determination of a mineral resource; 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.

Photo 1: SDDSC066 262.5 m showing a fibrous Pb-Sb sulphosalt, possibly boulangerite (Pb5Sb4S11), commonly seen as alteration in epizonal systems.
Ticks show mm scale.

Figure 1: Location of the Sunday Creek project, along with SXG's other Victoria projects.

Figure 2: Sunday Creek plan view showing SDDSC066 reported in this press release (grey box), selected prior reported drill holes and pending holes (yellow collar and trace).

Figure 3: Sunday Creek cropped longitudinal section A-B (50 m influence) across the Apollo area looking towards the northwest showing dyke interpreted mineralized veins sets, SDDSC066 reported here and prior reported drill holes.

Figure 4: Sunday Creek east-west longitudinal section C-D along the trend of the dyke/structure, looking to 000 higher grade assays and selected mineralized veins sets. Also, prior reported drill holes shown.

Figure 5: Sunday Creek regional plan view showing LiDAR, soil sampling, structural framework, regional historic epizonal gold mining areas and broad regional areas to be tested in a 2,500 m diamond drill program. The first drill areas are at Tonstal, Consols and Leviathan located 7.5km along strike from the main drill area at Golden Dyke-Apollo.

Table 1: Drill collar summary table for recent drillholes in progress.

Table 2: Tables of mineralized drill hole intersections reported from SDDSC066 using two cut-off criteria. Lower grades cut at 0.3 g/t lower cutoff over a maximum of 3 m with higher grades cut at 5.0 g/t AuEq cutoff over a maximum of 1 m.

Table 3: All individual assays reported SDDSC066 >0.1g/t AuEq.