Location

Vancouver, British Columbia, March 6, 2017 – Telson Resources Inc. ("Telson" or the "Company") (TSX Venture – TSN.V) is pleased to announce that it has secured a USD $2 million credit line for leasing underground and surface mining equipment for mine development at its 100% owned Tahuehueto Project (the "Project") located in northern Durango State, Mexico.

This credit line has been secured with Caterpillar Credito SA De CV ER in the form of financial leasing that will require a down payment of 15% for new Cat surface equipment and 25% for new Cat underground equipment. The method of payment under the lease will consist of monthly payments of principal and interest with a term of 60 months for Cat surface equipment and 36 months for Cat underground equipment. These terms are valid up to November 30, 2017. Telson intends to use the leasing facility to acquire one 8 yd.? scoop tram, 40 tonne underground dump truck and 13.5 yd.? front end loader to support the mine development and future mining production. This equipment along with Telson's recently purchased used scoop tram will easily support the production estimated under the Company's recently released Pre-Feasibility's Study as well as allow for expansion possibilities under the first year production expansion plans to increase production towards 1000 tonnes per day during the first year of production.

Corporate Update

Electrical Power Plant LOI – Recently, Telson's Mexican wholly owned Subsidiary signed a Letter of Intent (the "LOI") with ANAF Soluciones Estrategices SA De CC (ANAF) that outlines the terms and conditions that ANAF will conduct an engineering design and cost study to build and operate a gas powered electrical generation plant to supply the full electrical power requirement of the future Tahuehueto mine and milling facility. The LOI stipulates that ANAF will carry out the full engineering and cost evaluation to select the best equipment options. Upon completion of the studies, and entering into a formal agreement with the Company, ANAF will build the onsite electrical power generation pant, install related powerline infrastructure and will operate, supply, and maintain such plant and equipment selling power to the Company for an initial term of six years. To initiate the formal agreement it is contemplated that the Company would make an advance power purchase payment to ANAF of approximately USD $1 million.

"Assuming a positive engineering and cost study by ANAF and the formalizing of the anticipated agreement with this group, the plans for supplying the electrical power requirements necessary to commence mining operations at Tahuehueto will be complete and ANAF would commence construction of the power plant and electrical infrastructure on a schedule that aligns with our mine construction plans." comments Enrique Margalef, Vice President of Telson

Tepehuanes Property Secured – The Company is pleased to report that it has secured a property in Tepehuanes, Durango, Mexico that will be used as a staging area to receive and refurbish where necessary, the recently purchased Tahuehueto Mineral Processing Plant, which equipment will be transported over the next several weeks from its existing location to this property site in preparation for future transport to the Tahuehueto mine development site. (See news release dated February 16, 2017).

Tahuehueto On Site Mine Development – At the Tahuehueto mine development site, work is continuing on the development of the 5m X 5m haulage level portal crossing the El Creston vein structure and ending for the time being at 168 m. In order to provide proper ventilation in the haulage portal a development raise has been established to the Level 16 portal. The mining contractor is now driving development along the Creston vein to prepare for the collection of a second large industrial scale bulk sample which the Company plans to start collecting after the second week of March 2017. This bulk sample will be transported for processing to the Andes Toll Mill located near Guanacevi, Durango and processing of the bulk sample is expected to commence in early April. The Company intends to produce lead, zinc and copper concentrates with this bulk sample as the copper content at this elevation on the Creston vein is sufficient to justify copper recovery.

PDAC Attendance – Finally, the Company wishes to inform shareholders and investors that it is attending the Toronto PDAC mining conference from Sunday, March 5 through Wednesday, March 8. Company representatives will be attending Booth number 3033 and available to present the Company, field investor questions and discuss financing opportunities from interested PDAC attendees.

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
Glen Sandwell, Telson Resources Inc.
Corporate Communications
Tel: +1(604)684-8071
 

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Layne, A Granite Company, provides sustainable solutions for water resources and mineral exploration. Originally established in 1882, Layne offers a rich history of delivering safe, professional, and reliable water and minerals solutions throughout North and South America. Granite acquired Layne and its subsidiaries in the fall of 2018, to further Granite’s strategy to grow through acquisition and diverse end market expansion.