Telson Mining Corporation

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Campo Morado Mineral Resource Estimate - November 2017
Cut-off Grade (ZnEq%) ZnEq (%) Tonnes Au (g/t) Ag (g/t) Cu (%) Pb (%) Zn (%)
Measured
3.0 6.94 17,004,000 1.34 91 0.73 0.67 3.17
4.0 7.87 13,412,000 1.49 104 0.76 0.78 3.71
5.5 9.27 9,292,000 1.70 124 0.82 0.94 4.56
7.0 10.71 6,318,000 1.88 143 0.87 1.11 5.44
Indicated
3.0 5.78 16,848,000 1.25 85 0.68 0.61 2.25
4.0 6.62 12,324,000 1.42 99 0.72 0.73 2.68
5.5 7.94 7,335,000 1.70 123 0.78 0.92 3.31
7.0 9.32 4,086,000 1.96 151 0.86 1.12 3.94
Measured + Indicated
3.0 6.36 33,852,000 1.29 88 0.70 0.64 2.71
4.0 7.27 25,736,000 1.46 102 0.74 0.76 3.22
5.5 8.68 16,627,000 1.70 123 0.80 0.93 4.01
7.0 10.16 10,404,000 1.91 146 0.87 1.11 4.85
Inferred
3.0 5.03 3,316,000 0.98 76 0.52 0.58 2.10
4.0 5.85 2,152,000 1.11 90 0.55 0.71 2.54
5.5 7.27 988,000 1.32 116 0.64 0.92 3.20
7.0 8.75 416,000 1.52 148 0.76 1.10 3.78

Notes to the Mineral Resource Estimate Tables 14-1 through 14-6 inclusive:

Mineral Resources have an effective date of November 5, 2017; Eric Titley, PGeo, Titley Consulting Ltd., is the Qualified Person responsible for the Mineral Resource estimate.

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

The Mineral Resources were depleted to December 2014, the last phase of mining, by removing all material from the tabulation found in the excavation solids models provided by Telson Mining Corporation.

Zinc equivalent calculations used metal prices of USD 1.20/lb for zinc, USD 2.80/lb for copper, USD 17/oz for silver, USD 1150/oz for gold and USD 0.90/lb for lead and metallurgical recoveries of 70% for zinc, 68% for copper, 38% for silver, 25% for gold, and 60% for lead. Metal price assumptions used in the ZnEq calculation are the same assumptions used in establishing the cut-off for the estimates and reasonable prospects of eventual economic extraction.

A 5.5% ZnEq cut-off in bold is considered to be appropriate for the sub-level caving mining method planned for extraction of the mineralization in the various deposits. All Mineral Resource estimates, cut-offs and metallurgical recoveries are subject to change as a consequence of more detailed economic analyses that would be required in Pre-Feasibility and Feasibility studies. The 5.5% ZnEq cut-off in bold is considered the base case Mineral Resource estimate. Other estimates are reported in the context of cut-off grade sensitivity analysis.

Gold grade estimates are reported as grams per tonne rounded to two decimal places. Silver grade estimates are reported as grams per tonne rounded to an integer. Copper, lead, zinc and zinc equivalent estimates are reported as percent rounded to two decimal places. Tonnages are reported as metric tonnes round to one thousand tonnes.

Rounding as required by reporting guidelines may result in apparent summation differences.