Matador Mining : New Data Doubles Gold Target at Window Glass Hill Granite

ASX Announcement

16 February 2022 ǀ ASX: MZZ; OTCQX: MZZMF; FSE: MA3

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New Data Doubles Gold Target at Window Glass Hill

Granite to Six Kilometres of Strike Length

Matador Mining Limited (ASX: MZZ; OTCQX: MZZMF; FSE: MA3) ("Matador" or the "Company") is pleased to announce that interpretation of detailed magnetics, lithogeochemistry and historic data has doubled the known strike length of the highly prospective Window Glass Hill Granite ("WGHG") Intrusion to over six kilometres at the Cape Ray Gold Project (the "Project") Newfoundland, Canada.

Highlights:

• Highly prospective WGHG intrusion defined over six kilometres strike length (hosting the 232Koz Au WGH and the 80Koz Au Central-PW Mineral Resources) (Figure 1);
• New detailed magnetics and bottom of hole ("BOH") lithogeochemistry data demonstrate that an untested sheared wedge of the WGHG extends three kilometres further north-east along the Cape Ray Shear Zone ("CRSZ") than previously interpreted, immediately north of the 519Koz Au Central Zone Mineral Resources (which are hosted in sheared sediments);
• WGHG extension is hosted entirely within the CRSZ and buried under a shallow veneer of till, so has not been rock chip sampled, nor has it been targeted by diamond drilling, representing an exceptional untested structural target for gold mineralization;
• Less than 15% of the six-kilometre strike length of the WGHG has been drill tested near surface, with most drilling to date limited to less than 120 vertical metres below surface, leaving significant discovery potential at depth;
• Power auger sampling through till cover, and abundant surface rock chips with >1g/t Au in areas of outcrop (Figure 2), demonstrate the potential for vein-hosted gold mineralisation across the entirety of the highly altered and quartz-veined WGHG;
• Recent WGHG Margin discovery 1, achieved by using magnetics and geochemistry to "see through" the till cover, highlights the potential for multiple structurally-controlled gold mineralisation shoots to exist across the large but under-explored WGHG; and
• To date there has been no drilling specifically targeting shear hosted mineralisation in sediments adjacent to the WGHG, which is considered an important mineralized zone in similar granite-hosted gold deposits (such as Red 5 Limited's (ASX: RED) 6.1Moz King of the Hills Deposit in Western Australia).

1 ASX announcement 26 August 2021

Matador Mining Limited	Level 20, 140 St George's Terrace	www.matadormining.com.au
ABN 45 612 912 393	Perth, WA, 6000
[e-mail]
ASX:MZZ; OTCQX: MZZMF; FSE: MA3	T: [phone]

1

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Figure 1: WGHG footprint extended to >6 kilometres of strike length north of Central Zone

Figure 2: Gold in rock chips across the WGHG (sample distribution limited by outcrop exposure)

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Executive Chair Ian Murray commented:

"The opportunity presented by the large WGHG system to support significant mineral resource growth within a stone's-throw of the proposed processing facility at Central Zone is extremely exciting. To find that the WGHG extends a further three kilometres to the north-east, immediately adjacent to the existing 519Koz Au Central Zone Mineral Resource, in an area almost completely devoid of previous drilling, represents a great opportunity for Matador to test through 2022.

For characterising and mapping the critical attributes controlling mineralisation hidden beneath the shallow till cover, this outcome has once again demonstrated the value of:

• collecting and interpreting detailed magnetics;
• collecting quantitative basement lithogeochemistry data;
• questioning historic logging; and
• revisiting faded historic map interpretations.

Matador will dedicate at least one diamond drill rig throughout the 2022 summer drilling season aiming to grow the WGHG-hosted resources footprint and continue to make new discoveries across the 85% of WGHG area and granite contact zones that are still to be effectively drill tested. We will also concurrently advance the broader greenfield discovery efforts and exploration target pipeline."

WGHG upside potential compared to other significant granite/intrusion hosted gold systems

Gold mineralisation within the WGHG system is related to quartz-sulphide-gold veining and brecciation of the brittle granite host during the gold event(s). The tenor and volume of gold mineralisation is directly related to the intensity of quartz-sulphide-gold vein development which is controlled by fault/shear structures and brittle damage zones relating to rheological (rock strength) contrasts. These rheological competency contrasts occur both within the WGHG and between the WGHG and the weaker adjacent Windsor Point Group ("WPG") sedimentary rocks. Both locations provide excellent focal points for gold mineralisation.

Gold mineralisation is often obscured by shallow till cover requiring effective auger sampling and structural targeting using the detailed magnetics, to discover new gold zones like the WGHG Margin Target within the WGHG.

The WGHG is interpreted to host two distinctly different gold mineralisation styles:

• Granite-hosted,stacked, quartz-sulphide-gold (ladder) veins with subordinate finer stockwork quartz- sulphide-gold veins and breccias:
• • The WGH Mineral Resource (232Koz Au), the Central-PW Mineral Resource (80Koz Au) and the recent WGHG Margin discovery are type examples of the granite hosted ladder and stockwork vein mineralisation style within the WGHG
  • Brittle veining and brecciation of the granite/intrusion is localized by the competency contrast between the strong brittle granite and the relatively weaker surrounding sediments. At the time of mineralisation, increasing pressure, associated with the injection of gold bearing hydrothermal fluids, has fractured the brittle host granite forming the gold bearing vein assemblages. The intensity of quartz-sulphide-gold veining is further enhanced where fault/shear structures cut across the granite forming distinct zones of increased veining, delivering significantly higher grade and thicker gold mineralisation (e.g. 19m at 4.2 g/t Au (CRD214), 32m at 2.6 g/t Au (CRD277), 45m at 1.2 g/t Au incl. 8m at 5.1 g/t Au and 22m at 1.2 g/t Au (CRD212) at the recent WGHG Margin discovery2

2 ASX announcements 26 August 2021, 21 September 2021, 30 November 2021 and 14 December 2021

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• • To offer a potential analogue, this is a similar veining and mineralisation process reported at Marathon Gold Corporation's (TSXV: MOZ) 4.8Moz Au Valentine Lake gold mineral system (Figure 3), where at least 4 significant gold deposits have been defined within a 10-kilometre-long intrusion in faulted contact with a weaker sequence of sedimentary rocks 3 approximately 50 kilometres northeast along strike from Matador's Cape Ray Gold Project
  • In general, the granite hosted mineralisation style generates larger (bulk) tonnages of lower grade (1-2 g/t Au) mineralisation ideally suited to open pit extraction, with almost all of the current WGHG- hosted Mineral Resources and ongoing exploration focused within 120 vertical metres of surface
• Sediment-hostedgold mineralisation controlled by fault/shear zones focused in the weaker sediments surrounding the strong WGHG:
• • The Isle aux Morts deposit (60Koz at 2.4 g/t Au4), located approximately 10 kilometres north-east of the WGH deposit along the CRSZ, is a good example of gold mineralisation related to the strain partitioning between a relatively thin granite intrusion and weaker sedimentary host rocks. Shear strain is localised in the weaker sediments producing discrete higher-grade plunging gold shoots associated with gold bearing quartz veins within or parallel to the shear zone (e.g.: 18m at 11 g/t Au (CRD162), 19m at 4.6 g/t Au (CRD161)5)
  • Offering another analogue, the upside potential of competency related shear-hosted gold mineralisation is demonstrated at Red 5 Limited's 6.1Moz Au6 King of the Hills deposit on the margin of the three-kilometre long Tarmoola Granodiorite in Western Australia's Eastern Goldfields (Figure 3). At King of the Hills, the bulk of the Mineral Resource is localized in multiple high-grade shoots in weaker host rocks immediately adjacent to the Tarmoola Granodiorite contact. Irregularities in the shape of the granite contact focus the deformation and gold mineralizing hydrothermal fluids and control the orientation of the plunging shoots. Subordinate gold mineralisation is also hosted by brittle veining within the Tarmoola Granodiorite (similar to the WGHG)
  • The recent recognition that a sheared wedge of the WGHG extends three kilometres along the northern edge of the string of Central Zone mineral resources, raises the possibility that the WGHG might also be responsible for localising the quartz-sulphide-gold shear veins associated with the sediment-hosted 519Koz Au Central Zone Mineral Resources4, which also exhibit plunging shoot geometries. If this is the case, the sediments in close contact with the entire 14-kilometre-long circumference of the WGHG present a compelling (and untested) discovery opportunity

1. Marathon Gold Corporate Update Presentation January 2022 (www.marathon-gold.com)
2. ASX announcement 6 May 2020
3. ASX announcement 1 February 2021
4. Resources plus past production - Red 5 ASX announcement 25 January 2022

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Figure 3: Comparison of the WGHG gold mineral system to Marathon Gold Corporation's

intrusion-hosted 4.8Moz Au Valentine Lake Project and Red 5 Limited's 6.1Moz Au Granite margin

hosted King of the Hills Project

Similar (untested) structurally controlled gold mineralisation targets have been identified in the magnetic data along the entire 120 kilometre strike length of the Company's claims covering the Cape Ray Shear Zone. The high priority Benton target area (Figure 6), with unexplained historic rock chip samples up to 191 g/t Au, is located on a sheared granodiorite-sediment contact.

The regional till sampling survey completed at the 50km2 Malachite Lake area (assays pending) targets a large area with no historic exploration where a multitude of intrusions are cross-cut by a complex second-order fault/shear zone array splaying off a prominent regional bend in the Cape Ray Shear Zone. The PW-East target currently being drilled as part of Matador's winter drilling program is targeting part of the previously untested eastern extension of the WGHG granite north of the Central Zone deposits (Figure 6).

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