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The first shipment of lead and zinc concentrates processed at the Atocha mineral processing plant has been delivered to Mercuria Commodities Trading SA de CV as per the concentrate purchasing arrangement first announced in Telson Resources Inc.'s (TSN.V) press release of July 6, 2017.

As of Aug. 1, 2017, the company has processed approximately 1600 tonnes of ore through the Atocha toll mill producing approximately 66.1 dry tonnes of lead concentrate and 94.5 dry tonnes of zinc concentrate which have been delivered to Mercuria.

Internal assaying at the Atocha Mill laboratory confirms metal recoveries and concentrate grades consistent with, and improved upon, from those assays and metallurgical balances disclosed in its Feb. 23, 2017, news release whereby the company reported the final results of its initial 3,500-tonne industrial scale bulk sample processed at the Andes mill and sold for approximately $1.47-million (U.S.) early this year.

Final assay results will be disclosed upon third party independent analysis to be conducted when the concentrate is received in Mercuria Trading's Manzanillo warehouse. Final sale prices will be determined by the parties upon comparing the assay results returned by the independent third party assayer, those assay results obtained by the operator of the Atocha toll mill and by assay results obtained by Mercuria.

Telson Resources is a Canadian-based resource development company advancing two gold, silver and base metal projects toward production over the coming months of 2017 and early 2018. Telson's Tahuehueto project, located in northwestern Durango state, Mexico, and its recently acquired Campo Morado Mine in Guerrero, Mexico, purchased from Nyrstar Mining are both polymetallic deposits containing significant gold, silver, lead, zinc and copper. Subject to securing financing, Telson plans to recommence mining operations at Campo Morado within three to five months while at the same time develop its Tahuehueto project through the mine construction phase with an anticipated timeline to be producing at the project site in its own mineral processing facility by the end of the first quarter of 2018 or earlier.