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Telson Mining Provides Update on Mill Upgrades at Campo Morado

Telson Mining Corporation is pleased to provide the following corporate update.

Several scheduled upgrades were recently made in the mill processing plant installations, including among others: i) changing of ball mill liners with newly designed liners that allow for the replacement of the past 5" ball that were being used, with 3" balls, which increases the life of the liners; ii) conducting a review of the primary jaw crusher and initiation of adaptations for the installation of a secondary cone crusher, which will reduce the size of the ore feed to the mill from -7" to -2"; and iii) revising the cyclones classification system to reduce the circulating load in grinding. These changes are all aimed at increasing the grinding capacity of the mill to facilitate reaching managements target of processing up to 3,000 tpd by the end of 2018.

We also conducted metallurgical testing obtaining very favorable results for increasing the quality of zinc concentrates and as a result, will be implementing an additional cleaning of the zinc concentrate within the mill to increase the quality of zinc concentrates on an ongoing basis.

Sr. Jose Antonio Berlanga, Telson's Chief Executive Officer stated:

The mill upgrades outlined above are a small part of management's continued mine improvement plans at Campo Morado and are designed to achieve goals of planned increases in production along with further reductions to all-in operating cost.

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