Day: October 4, 2016

Managing Director Will Dix commented “Expanding the platform for drilling has given us the ability to drill further down dip and obtain better intersection angles into the mineralisation. Continuing to intersect massive sulphides down dip and now identifying new mineralisation up-dip above level 7 re-enforces the potential for accumulating resource tonnes in the mine area. We will continue to drill aggressively to build as much of a mineral inventory during the remainder of 2016.”

In May 2016, the Company executed a letter of intent to acquire up to 10 mineral concessions covering 16 known Lithium, Potassium and Boron-rich salars located in the States of Zacatecas and San Luis Potosi, Mexico. Upon review of the technical data including a property examination by the Company and its advisors, the Company elected to acquire 4 large concessions containing the 7 top priority salars which include Caliguey, La Doncella, Colorada, La Salada, Santa Clara, Saldivar and Chapala and several smaller earlier-stage salars. The Company selected these salars due to their attractive lithium, potassium and boron values from limited shallow sampling of the unconsolidated material down to a depth of five metres. Of particular interest is the La Salada salar where preliminary and unaudited analyses of samples from the southern half of the salar returned grades frequently exceeding 1500 mg/l with occasional values over 2000 mg/l lithium, 8% potassium and 60 mg/l boron. The depth and grade beneath 5m is unknown at this time but preliminary geophysical surveys indicate a possible depth of 70 metres.

Telson Resources Inc. announces that it completed the collection of its 2,000 tonne industrial scale bulk sample from the El Creston zone on its Tahuehueto Project during the last week of September 2016. The bulk sample is in the process of being shipped to the Andes Mill where processing is scheduled to commence within the next week in order to produce saleable lead and zinc concentrates. Based upon previous metallurgical testing conducted in 2010, the Company anticipates the significant gold content contained within the mineralization of the bulk sample to report to and be recovered within, the lead concentrate.

Rafael Gallardo, Senior Geologist of Minera Cascabel S.A. de C.V., who is leading the drill program, commented, “the results encountered from drill holes 2 and 3 show that Au-Ag mineralization is being encountered near surface and the mineralized structure is open at depth and along strike at La Nueva Victoria.”

“A renewed focus on reserve and resource definition at Mercedes has resulted in a 20% increase in Proven and Probable reserves between December and June. This is a result of excellent work by the professional Management team at site” commented Premier President & CEO Ewan Downie. “Premier is now in place as a fully-engaged mine operator and we will continue to seek to grow reserves and resources by maintaining an aggressive exploration and development effort.”