Mawson’s Subsidiary Southern Cross Gold Reports 17.3m @ 4.9 g/t AuEq Intersection at Sunday Creek

Highlights for Mawson Shareholders:

• SXG reports high grade gold intersections continue at Sunday Creek
• 17.3m @ 4.9 g/t AuEq (3.9 g/t Au and 0.6% Sb) from 214.4m in hole SDDSC031
• 9.8m @ 4.6 g/t AuEq (3.9 g/t Au and 0.5% Sb) from 55.5m in hole SDDSC032
• Sunday Creek now contains a total of twelve 100 g/t AuEq x m intersections (Figure 1)
• Further core drilled pre-IPO await assay.
• Assays are pending and drilling continues, with SXG’s IPO funding an expected 24 month work program
• Mawson’s share of SXG has a market capitalization of ~C$17.0 million based on 24^th May closing price of A$0.20 per share.

Ivan Fairhall, Mawson CEO, states: “We are very pleased to highlight Southern Cross’ continued success at Sunday Creek. We consider Sunday Creek one of the best discoveries in Victoria, and thankful that results like this could be bought forward by the funding accessed by spinning-out SXG onto the ASX. Southern Cross is now well funded to continue drilling and we look forward to more assays as the Sunday Creek discovery matures.

In the meantime, Mawson focuses its attention on its maiden drill program at Skellefteå in Sweden, and PEA studies to underwrite value in its million-ounce gold equivalent inferred resource at Rajapalot in Finland.

Drill Hole Discussion

Drill holes MDDSC0027 and SDDSC031-32 were targeted to extend and infill mineralization across specific multiple north-west striking mineralized shoots in the Apollo mine area. As is typical with the Sunday Creek property, wide mineralized zones with high grade central intersections were intersected.

SDDSC031 was drilled to target mineralized shoots to the west of the Apollo shaft in a 67m gap to infill between drill hole MDDSC015A (15.3m @ 5.5 g/t AuEq (2.2 g/t Au and 2.1% Sb) from 231.4m) and drill hole MDDSC0012 (10.4m @ 7.0 g/t AuEq (5.4 g/t Au and 1.1% Sb) from 203.0m). With a 0.3 g/t AuEq over 2m lower cut SDDSC031 intersected:

• 17.3m @ 4.9 g/t AuEq (3.9 g/t Au and 0.6% Sb) from 214.4m (0.3 g/t AuEq over 2m lower cut), including:

• 3m @ 27.3 g/t AuEq (23.4 g/t Au and 2.5% Sb) from 226.0m.

With a 3m @ 0.1g/t AuEq lower cut, SDDSC031 intersected 36.0m @ 2.9 g/t AuEq (2.3 g/t Au and 0.4% Sb) from 197.7m (109 g/t AuEq * m) and included high grade mineralization:

• 4m @ 16.3 g/t AuEq (10.9 g/t Au and 3.4% Sb) from 222.7m
• 4m @ 28.5 g/t AuEq (18.0 g/t Au and 6.6% Sb) from 226.3m
• 3m @ 66.9 g/t AuEq (66.8 g/t Au and 0.0% Sb) from 227.3m

SDDSC032 was drilled to test the Gladys mineralized shoots. The closest hole was historic RC hole VCRC011, located 20m in the plane of the shoot, intersected 21.0m @ 3.9 g/t Au from 37.0m. With a 0.3 g/t AuEq over 2m lower cut SDDSC032 intersected:

• 9.8m @ 4.6 g/t AuEq (3.9 g/t Au and 0.5% Sb) from 55.5m (0.3 g/t AuEq over 2m lower cut), including:

• 5m @ 27.0 g/t AuEq (23.1 g/t Au and 2.5% Sb) from 60.3m.

With no lower cut applied, SDDSC032 intersected multiple structures yielding 97m @ 0.8 g/t AuEq (0.7 g/t Au and 0.1% Sb) from surface, and included high grade mineralization:

• 4m @ 26.4 g/t AuEq (15.7 g/t Au and 6.7% Sb) from 60.3m
• 3m @ 86.6 g/t AuEq (81.2 g/t Au and 3.4% Sb) from 61.5m

Drillhole MDDSC027, targeted at depth below the Apollo mine, intersected a significant cataclastic fault zone which disrupted the mineralized target. The hole hit a broad low-grade interval including 2.5m @ 0.5 g/t Au from 285.5m, 1.9m @ 0.5 g/t Au from 302.9m and 4.0m @ 0.3 g/t Au from 315.0m and is considered a near-miss hole for further drill follow-up.

Drill holes SDDSC028-29 tested a coincident gold in soil anomaly, with low grade boulders on a topographic high and a coincident 3D array IP chargeability anomaly (with higher chargeability than the main mineralized zone at Apollo). Low-grade and geologically significant gold was discovered in SDDSC029 including 0.6m @ 0.4 g/t Au from 16.0m, 1.0m @ 0.4 g/t Au from 26.0m and 1.2m @ 0.3 g/t Au from 29.8m. The source of soil anomalies above SDDSC029 could be explained in part by the presence of gold in drilling. SDDSC028, drilled 300m north-east of SDDSC029 did not intersect significant results and the source for the 3D IP chargeable anomalies remains unexplained. These indications of a parallel zone of gold mineralization located 250m north of the main mineralized area opens further opportunities for undercover parallel zones across the property that will require drill testing.

Drill hole SDDSC030 was a short hole (104.1m) to test earlier trench results located 200m east of any prior drilling (Trench 1: 14.0m at 11.5 g/t gold and 0.3% antimony including 8.0m @ 19.6 g/t gold and 0.4% antimony and Trench 2: 2m @ 4.9 g/t gold and 0.2% antimony). The single hole failed to intersect the mineralized structure and further drilling is warranted. The mineralized trend remains open and undrilled for 10km to the NE from these trenches.

Southern Cross Gold has continued to drill at Sunday Creek over the last three months during the IPO process, with drilling of 10 holes for 2,278m completed and one hole in progress. With six holes assayed and reported here (MDDSC027, SDDSC028-32), drill core from four further holes (SDD033-36) has been forwarded to the assay laboratory and geochemical assay results will be released as announcements to ASX by SXG following being received from the laboratory.

Figures 1 and 2 show plan and longitudinal section views of drill results report here and Tables 1–3 provide collar and assay data. The true thickness of the mineralized interval is interpreted to be approximately 60% of the sampled thickness. All drill results quoted have a lower cut of 0.3 g/t Au cut over a 2.0m width, with higher grades reported with a 5 g/t Au cut over 1.0m applied unless otherwise stated. 

Additional information may be found in Southern Cross’ news release dated 23^rd May, and on its website at www.southerncrossgold.com.au.

Technical Background and Qualified Person

C$ conversions of A$ values completed at an exchange rate of 1.10.

The Qualified Person, Michael Hudson, Executive Chairman of Mawson Gold, and a Fellow of the Australasian Institute of Mining and Metallurgy, has reviewed and verified 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.

Gold equivalent “AuEq” for Sunday Creek is = 𝐴𝑢 (𝑔/𝑡) + 1.58 × 𝑆𝑏 (%) based on assumed prices of gold US$1,700/oz Au and antimony US$8,500/metal tonne, and total year metal recoveries of 93% for gold and 95% for antimony. Given the geological similarities of the projects, this formula has been adopted to align to TSX listed Mandalay Resources Ltd Technical Report dated 25 March 2022 on its Costerfield project, which is located 54 km from Sunday Creek and which historically processed mineralization from the property.

Gold equivalent “AuEq” for Rajapalot = Au+(Co/1005) based on assumed prices of cobalt US$23.07/lb and gold US$1,590/oz. Details of Mawson’s Inferred Mineral Resource can be read in the Company’s news release dated August 26, 2021.

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

Mawson Gold Limited is an exploration and development company with its flagship Rajapalot gold-cobalt project in Finland now entering technical study stages to de-risk its inferred resource and exploration growth program. Alongside ongoing exploration at Rajapalot, Mawson holds an option to earn up to 85% in the Skelleftea Gold Project in Sweden. Mawson also has a significant majority interest in the ownership or joint venture into three high-grade, historic epizonal goldfields covering 470 km² in Victoria, Australia, through Southern Cross Gold Ltd, which has successfully listed on the ASX. Mawson’s 60.3% ownership interest in Southern Cross is escrowed until May 16, 2024.

About Southern Cross Gold Ltd (ASX:SXG)

[email=https://www.southerncrossgold.com.au/]Southern Cross Gold[/email] 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 the ASX listed Nagambie Resources Limited (ASX:NAG) which grants it a Right of First Refusal over a 3,300 square kilometre tenement package held by NAG in Victoria.

On behalf of the Board,

"Ivan Fairhall"                      

Ivan Fairhall, CEO

Further Information

www.mawsongold.com

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; 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.