Project

Kläppibäcken is part of the intrusive-related uranium deposit spectrum. The uranium mineralization occurs in a cataclastic to brecciated granite which is generally strongly enriched in fluorite. The fluorite content increases with the degree of brecciation, and is generally highest in the central parts of the mineralisation. Mineralisation starts at surface and is generally greater than 30m in width and locally up to 105m. Kläppibäcken is an intrusive-related uranium deposit, hosted by brecciated and cataclastic granite which is strongly enriched in fluorite or hematite.

Basic metallurgical testing undertaken on Kläppibäcken samples has shown the mineralization to be easily liberated with conventional processing. Testing of two samples carried out by the Luleå Technological University in Sweden in 1983 showed excellent grindability and leachability. Kläppibäcken samples were reduced in a rod mill within 15 minutes to 175 micron size. Recovery of 97% uranium with low oxygen consumption by acid leach was achieved which is considered very promising.

A total of 56 holes for 8,943 metres which included 32 drill holes completed by the Swedish Geological Survey between 1983 and 1984 and 22 drill holes completed by Mawson during 2007 and 2008 have been completed into the project to date.

A new resource calculation on July 16 2008 increased the measured plus indicated categories over the previous calculation by 51%. The resource, at Kläppibäcken using a 0.025% uranium lower cut-off grade, is:

CATEGORY	Million Tonnes (Mt)	GRADE % U3O8	>Contained U3O8 (t)	Contained U3O8 Million lbs
Measured	0.09	0.064	56	0.12
Indicated	1.85	0.077	1,429	3.15
TOTAL	1.94	0.077	1,485	3.27

The resource at Kläppibäcken occurs as a single block of mineralization and, to date, extends from surface to a maximum depth of 200 metres, 150 metres in strike and up to 105 metres in thickness. The deposit remains open in all directions.

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Kläppibäcken Longitudinal Section April 28 2008

Ownership

Mawson Resources Ltd announced on December 13 2005 that it has completed a "Letter of Understanding" to purchase 100% of the Kläppibäcken uranium historic resource.

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Topographic Map of the Kläppibäcken Area. Note powerlines and roads

Location

The project area is contained within the Tallsjön nr 1 exploration permit of 209.25 hectares located in the County of Jämtland in Northern Sweden. Mawson holds 7,555 hectares under application in two permits Hotagen nr1 and nr 2, totaling 7,764 hectares for the project area.

View Larger Map

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Map of the Regional Hotagen Area with Airborne Radiometric (Uranium) Grid

History

Kläppibäcken was discovered by the Swedish Geological Survey during a five year program initiated in 1977 to evaluate Sweden's self-sufficiency with respect to uranium, financed by the Svensk Kärnbränsleförsorjning AB or Swedish Nuclear Fuel Supply Company ("SKBF").

Property Geology

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Kläppibäcken radon caps and uranium radiometric anomalies over a much greater area than the current drilled area.

Mineralization

The resource at Klappibacken , using a 0.025% uranium lower cut-off grade, is:

CATEGORY	Million Tonnes (Mt)	GRADE % U3O8	>Contained U3O8 (t)	Contained U3O8 Million lbs
Measured	0.09	0.064	56	0.12
Indicated	1.85	0.077	1,429	3.15
TOTAL	1.94	0.077	1,485	3.27

The resource at Kläppibäcken occurs as a single block of mineralization and, to date, extends from surface to a maximum depth of 200 metres, 150 metres in strike and up to 105 metres in thickness. The deposit remains open in all directions. Kläppibäcken is an intrusive-related uranium deposit, hosted by brecciated and cataclastic granite which is strongly enriched in fluorite or hematite.

Basic metallurgical testing undertaken on Kläppibäcken samples has shown the mineralization to be easily liberated with conventional processing. Testing of two samples carried out by the Luleå Technological University in Sweden in 1983 showed excellent grindability and leachability. Kläppibäcken samples were reduced in a rod mill within 15 minutes to 175 micron size. Recovery of 97% uranium with low oxygen consumption by acid leach was achieved which is considered very promising.

Michael Hudson states "Mawson's first drilling program at Kläppibäcken has increased the measured plus indicated resource base by more than 50% over the previously reported resource. Mineralization remains open with strong potential for expansion and future work will be directed at defining the immediate extensions to mineralization and testing near surface targets. Kläppibäcken forms part of Mawson's Hotagen project, where 19 drill-tested or surface sampled uranium mineralized prospects have been discovered within a five kilometre radius of Kläppibäcken. A summer field program is now underway and we look forward to continuing to build our knowledge of this highly prospective area."

The resource was estimated within a geologically constrained mineralized envelope; with a lower cut off of 0.025% uranium applied to resource blocks populated using the inverse distance squared method within Maptek Vulcan software. The model utilized a total of 56 holes for 8,943 metres which included 32 drill holes completed by the Swedish Geological Survey between 1983 and 1984 and 22 drill holes completed by Mawson during 2007 and 2008. Resource category classifications were defined using criteria determined during the validation of the grade estimates, with detailed consideration of the NI 43-101 and CIM categorization guidelines as shown below:

• Measured resource: blocks less than 12.5 metres from the weighted average Cartesian distance from a drill hole composite;
• Indicated resources: blocks less than 40 metres from the weighted average Cartesian distance from a drill hole composite.

Uranium from Mawson's drill holes was analyzed by the ME-XRF05 technique by ALS Chemex Ltd's laboratories in Piteå, Sweden and Vancouver, Canada, where duplicates, repeats, blanks and known standards were inserted according to standard industry practice. The resource calculation was undertaken by the consulting firm ReedLeyton Consulting Ltd of Edinburgh. The qualified person for the Kläppibäcken project, Mark Saxon, Director and Vice-President of Exploration for Mawson, and a member of the Australasian Institute of Mining and Metallurgy, has reviewed and verified the contents of this release.

History

World Nuclear Association Brief on Sweden

Sweden has an estimated 15% of the world's uranium deposits. Ten nuclear power reactors provide approximately 50% of its electricity.

Ten nuclear power reactors provide approximately 50% of its electricity.

Swedish mining legislation allows exploration for uranium and places no special restriction on mining where the uranium grade is less than 200 ppm or the production is less than 5 kg. When higher uranium grades are present, permitting will follow a process concerning "nuclear technical activity". Such permitting must pass before the Swedish government for decision making.

Sweden has been an enthusiastic supporter of measures to improve world environmental quality. Among many others, Sweden in 1992 committed itself to stabilise carbon dioxide emissions at 1990 levels by 2000, and this was reaffirmed in Berlin in 1995. The fact that those levels in 1990 were only 60% of 1970's was due to nuclear energy replacing most oil for electricity generation.

Both the Energy Commission report and that of an independent economist, W.D.Nordhaus, project that a full nuclear phase-out would increase Sweden's carbon dioxide emissions by about 50% above the 1990 level. This is why European Union proposals for 1997 climate change negotiations allowed for a 5% increase in Sweden's emission levels due simply to the proposed Barsebäck reactor closure.

One problem with closing any reactor is that in the short run the replacement generation or imports would be fossil fuelled. Local back-up capacity is mostly oil-fired, as indicated in the 1996 figures when hydro production was much less than normal.

Sweden has its nuclear waste management well in hand. A dedicated ship moves the wastes from power plants to repositories. Some low-level waste is disposed of at reactor sites, some is incinerated at Studsvik. A final underground repository for intermediate-level waste (SFR) has been operating near Forsmark since 1988. The CLAB interim repository for spent fuel (treated as high level waste) has been operating since 1985 at Oskarshamn, and its 5000 tonne capacity is being expanded to 8000 tonnes to cater for all the fuel from all the present reactors. The spent fuel is stored under water in an underground rock cavern for some 40 years. It will then be encapsulated in copper and stainless steel canisters for final emplacement packed with bentonite clay in a 500 metre deep repository in granite.

Conclusion

Klappibacken is a quality project with thick, moderate grade zones from surface and favourable metallurgical characteristics. The indicated and measured NI43-101 uranium resources can regarded as a minimum, since the mineralization is still open laterally and at depth.

Importantly, Kläppibäcken forms part of Mawson's Hotagen project, where 19 drill-tested or surface sampled uranium mineralized prospects have been discovered within a five kilometre radius of Kläppibäcken.

The Company will continue to focus its efforts in Sweden towards this project.