Mawson’s Subsidiary SXG Intersects 14.6 m @ 7.3 g/t AuEq incl. 1.0 m @ 73.8 g/t AuEq at Sunday Creek, Victoria, Australia

Highlights:

·         High-grade gold intersected in drill hole SDDSC059 (Figs 2-7), which was designed to test continuity and grade of a new vein set at depth. Highlights from SDDSC059 included:

·         14.6 m @ 7.3 g/t AuEq (6.3 g/t Au, 0.6 %Sb) from 569.8 m including:

–  0.7 m @ 6.3 g/t AuEq (5.3 g/t Au, 0.6 %Sb) from 573.2 m
–  2.7 m @ 7.7 g/t AuEq (3.6 g/t Au, 2.6 %Sb) from 575.3 m
–  1.0 m @ 73.8 g/t AuEq (73.7 g/t Au, 0.1 %Sb) from 583.0 m

·         Two drill holes at Golden Dyke (SDDSC060, SDDSC062) tested the most easterly vein set at Golden Dyke. Both holes intersected 30 – 40 m wide zones of low-grade mineralization.  Higher grades within SDDSC062 included:

·         4.4 m @ 1.6 g/t AuEq (1.6 g/t Au, 0.0 %Sb) from 279.8 m, including:

–  0.8 m @ 6.1 g/t AuEq (6.1 g/t Au, 0.0 %Sb) from 281.0 m

·         1.2 m @ 2.7 g/t AuEq (1.9 g/t Au, 0.5 %Sb) from 291.4 m

·         10.0 m @ 1.5 g/t AuEq (0.7 g/t Au, 0.5 %Sb) from 306.0 m, including:

–        0.5 m @ 5.1 g/t AuEq (1.3 g/t Au, 2.4 %Sb) from 310.5 m

·         SXG has four rigs drilling at Sunday Creek, three in the main drill area and the fourth up to 7.5 km along strike at the Tonstal prospect with 12 holes being processed and analyzed and four in drill progress.

·         Mawson owns 93,750,000 shares of SXG (51%), valuing its stake at A$60.1 million (C$54.6 million) based on SXG’s closing price on April 28, 2023.

Noora Ahola, Mawson Interim CEO, states: “The team at Southern Cross Gold continue to deliver great results at the Sunday Creek property.  Today’s announcement demonstrates continuity of high-grade mineralization and their ability to predict mineralized vein sets.  SDDSC059 was specifically designed to a locate a new vein set predicted to be 25 metres along strike from its successful SDDSC050 and delivered 14.6 m @ 7.3 g/t AuEq including 1.0 m @ 73.8 g/t AuEq.

The exploration strategy undertaken by SXG is generating industry leading hit rates of width and predictable high grades including up to 305.8 m @ 2.4 g/t AuEq and up to 0.3 m @ 363.5 g/t Au.  This strategy has proven successful at unlocking value at other significant discoveries in Victoria, Australia and internationally.”

Results Discussion

The Sunday Creek epizonal-style gold project is located 60 km north of Melbourne within 19,365 hectares of granted exploration tenements. SXG is also the freehold landholder of 133 hectares that forms the key portion in and around the drilled area at the Sunday Creek Project.

Sunday Creek has an 11 km mineralized trend that extends beyond the main drill area and is defined by historic workings and soil sampling which is being drill tested for the very first time with the fourth drill rig which mobilized to site just over a week ago.

Rising Sun Prospect

At Rising Sun, SDDSC059 (14.6 m @ 7.3 g/t AuEq including 1.0 m @ 73.8 g/t AuEq) was designed to test a new vein set 25 metres along strike and at a high angle from SDDSC050 (5.0 m @ 36.1 g/t AuEq including 0.4 m @ 158.7 g/t AuEq).  The cross section shown in Figure 4 and the horizontal plan at -300 m RL (620 m vertically below surface) in Figure 4 show the relationship between these holes and the predictable high-grade within the multiple individual north-west trending veins sets.

Golden Dyke Prospect

Two drill holes at Golden Dyke (SDDSC060, SDDSC062) tested the most easterly vein set at this prospect. Both of holes the holes reported here intersected wide zones of low-grade mineralization and further drilling is required to understand the controls on high-grade mineralization at Golden Dyke, which was the largest and deepest producer in the historical goldfield and is the most westerly of the prospects drilled by SXG to date. Further work is therefore necessary at this high potential prospect.

SDDSC060 intersected the halo to mineralization with broad and low-grade gold and arsenic noted within an intersection of 38.4 m @ 0.1 g/t AuEq (0.1 g/t Au, 0.0 %Sb) from 189.4 m. Visible gold was observed in a narrow vein at 224 m.

SDDSC062 was drilled 70 m lower in the same vein.  Wider zones of low-grade mineralization were also intersected including 13.6 m @ 0.7 g/t AuEq (0.7 g/t Au, 0.0 %Sb) from 270.6 m and 27.6 m @ 0.8 g/t AuEq (0.5 g/t Au, 0.2 %Sb) from 291.4 m.   Higher-grade intervals included 4.4 m @ 1.6 g/t AuEq (1.6 g/t Au, 0.0 %Sb) from 279.8 m including 0.8 m @ 6.1 g/t AuEq (6.1 g/t Au, 0.0 %Sb) from 281.0 m, 1.2 m @ 2.7 g/t AuEq (1.9 g/t Au, 0.5 %Sb) from 291.4 m and 10.0 m @ 1.5 g/t AuEq (0.7 g/t Au, 0.5 %Sb) from 306.0 m including 0.5 m @ 5.1 g/t AuEq (1.3 g/t Au, 2.4 %Sb) from 310.5 m.

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

Update on Current Drilling

Drilling with four rigs is in progress at Sunday Creek at the Rising Sun, Apollo and Tonstal prospects. Twelve holes (SDDSC064, 66, 67, 68, 69, 71, 72 and SDDTS001-5) are being geologically processed and analyzed, with four holes (SDDSC070, 73, 74, and SDDTS006) in drill progress (Figure 2).  These holes will provide continual news flow. Drill holes awaiting assays or in progress include the deepest drill holes drilled on the project at Rising Sun (SDDSC064/67/70) and Apollo (SDDSC066/68). SDDSC064 is the first hole to exceed 1 km in length on the project, terminating at 1013.5 m. SDDSC068 has been temporarily halted at 959.4 m below Apollo awaiting an upgrade to a new drill feed rail to allow deeper drilling to continue.

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.

MAW 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 × 𝑆𝑏 (%).

Figures 1-7 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.

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

December 14, 022 SDDSC050

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

Mawson Gold Limited is 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)

[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 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.