Vancouver, British Columbia, February 23, 2017 – Telson Resources Inc. (“Telson” or the “Company“) (TSX Venture – TSN.V) is pleased to announce that it has finalized the sale of lead and zinc concentrates produced from its industrial scale bulk sample collected from the El Creston zone on its 100% owned Tahuehueto Project (the “Project“) located in northern Durango State, Mexico.

Mercuria Commodities Trading S.A, de C.V. (“Mercuria“) purchased all 259 tonnes of zinc concentrate as well as 97 tonnes of lead concentrate with the remaining 104 tonnes of lead concentrate being purchased by Altiplano Processing Facility located in Matehaula, Mexico where concentrate leaching tests are currently being conducted to analyse Telson’s ability to recover the substantial precious metal content from the concentrate in advance of future concentrate production sales.

Approximately 3,500 tonnes of ore was collected from new underground development on Level 10 on the El Creston Zone at the Tahuehueto Project. The sample was transported in conventional dump trucks to the Andes Processing Plant located at Guanacevi, Durango, Mexico, approximately 270 km by road from the project site. Processing of the bulk sample occurred between late November 2016 through early January 2017.

The total bulk sample was determined to have an average head grade of 9.5 g/t gold, 63.9 g/t silver, 3.54% lead and 6.24% zinc.

Sulfide flotation processing produced,

-201 dry tonnes of lead concentrate with average grades of 124.4 g/t gold, 786.4 g/t silver, 40.7% lead and 24.7% zinc.

-259 dry tonnes of zinc concentrate with average grades of 11.18g/t gold, 147.07g/t silver, 5.55% lead and 43.57% zinc

The sale price of the concentrate was determined through negotiation by comparing the assay results obtained on behalf of the Company at the Andes Mill processing site laboratory, the concentrate purchaser’s internal assays laboratories and the independent umpire assayer, Ersa Global Mex S.A. de C.V. (“Ersa“).

“Telson’s management is very pleased with the bulk sample testing results and with the concentrate sale proceeds generated,” states Senor Antonio Berlanga, CEO of the Company, “considering that the Andes mill is not ideally configured for processing Tahuehueto ore, we have obtained quality saleable lead and zinc concentrates with high precious metal content. We are very confident in our ability to improve these results once we have installed and commissioned our recently purchased Tahuehueto Mineral Processing Plant on site, as it will be engineered to utilize a mill configuration and design ideally suited for the unique characteristics of the Tahuehueto project’s mineralization”.

The Company’s February 16, 2017 news release summarized Telson’s acquisition of the Tahuehueto Mineral Processing Plant which the Company, subject to securing adequate funding, intends to install on site to advance Tahuehueto towards a fully commissioned and operating underground mining operation over the year ahead. Please refer to that news release for additional information.

On behalf of the board of directors

(signed) “Ralph Shearing”

Ralph Shearing, President

Qualified Person

This press release was prepared under the supervision and review of Ralph Shearing, P.Geol., President and Director of Telson Resources Inc., a Professional Geologist registered in Alberta as a member of the professional organization APEGA, and a Qualified Person as defined by NI 43-101.

Cautionary Note Regarding Forward-Looking Statements

Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities laws. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; the timing and costs of future activities on the Company’s properties; success of exploration, development and bulk sample processing activities; anticipated results of check assay results; and the installation and commissioning of a mill at the Company’s Tahuehueto project. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “plans”, “expects”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or variations of such words and phrases. In preparing the Forward-Looking Information in this news release, the Company has applied several material assumptions, including, but not limited to, that the current exploration, development, environmental and other objectives concerning the Tahuehueto Project can be achieved; that the implementation of the selective mining method will prove feasible based on the results of the bulk sample; that the mineral processing plant recently acquired by the Company will be successfully installed and commissioned, the continuity of the price of gold and other metals, economic and political conditions and operations. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, the Company does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Cautionary Note Regarding References to Resources and Reserves

This news release uses the terms “measured and indicated resources” and “inferred resources”. We advise U.S. investors that while these terms are defined in, and permitted by, Canadian regulations, these terms are not defined terms under SEC Industry Guide 7 and not normally permitted to be used in reports and registration statements filed with the SEC. “Inferred resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility studies, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant “reserves”, as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in this category will ever be converted into reserves. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists or is economically or legally minable.

Contacts

Renmark Financial Communications Inc.
Barry Mire: [email protected]
Tel: +1(416)644-2020 or +1(514)939-3989
www.renmarkfinancial.com