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31 January 2022

ASX:MM8

December 2021 Quarterly Activities Report

Ravensthorpe continues to develop as a district scale, strategic gold-copper deposit in

Western Australia

Highlights

Ravensthorpe Gold Project (RGP), Western Australia (100%)

  • 29,015m of diamond and reverse circulation drilling completed in 2021. During the quarter 11 diamond drill holes (2,569m) and 51 reverse circulation drill holes (8,246m) were completed - assays pending on approximately 8,500m of 2021 drilling
  • Multiple high-grade gold and copper results were reported from extensional drilling at the Kundip Mining Centre (KMC) during the quarter, highlights include;
    1. 20m @ 2.6 g/t Au, 0.1 % Cu, 2.2 g/t Ag from 38m (RC21KP1050) - Gem
    1. 34m @ 1.6 g/t Au, 0.2 % Cu, 2.1 g/t Ag from 91m (RC21KP1049) - Gem
    1. 1.0m @ 12.8 g/t Au, 1.0 % Cu, 13.9 g/t Ag from 218m (DD21KP959) - Harbour View
    1. 0.6m @ 14.1 g/t Au, 0.9 % Cu, 6.2 g/t Ag from 51.8m (DD21KP960) - Harbour View
    1. 2.4m @ 4.3 g/t Au, 7.2 % Cu, 37.35 g/t Ag from 231.2m (DD21KP997) - Harbour View
    1. 3m @ 9.2 g/t Au, 0.2 % Cu, 3.4 g/t Ag from 69m (RC21KP1001) - Harbour View
    1. 1.97m @ 5.1 g/t Au, 2.6 % Cu, 47.6 g/t Ag from 276.6m (DD21KP993) - Harbour View
    1. 2m @ 4.5 g/t Au, 1.3 % Cu, 15.0 g/t Ag from 29m (RC21KP990) - Harbour View
  • Global Mineral Resource Estimate (MRE) underway to incorporate ~ 30,000m of new drilling
  • Substantial mineralised system confirmed by first pass drilling at regional Meridian prospect, located 21km northwest of KMC, highlights include;
    1. 5m @ 11.4 g/t Au, 0.2 % Cu, 1.4 g/t Ag from 32m (RC21MR009)
    1. 2m @ 6.1 g/t Au, 0.2% Cu, 1.9 g/t Ag from 125m (RC21MR003)
  • Significant new gold discovery confirmed at regional Ariel prospect located 2km north of KMC which returned a drill intersection of 26m @ 1.6 g/t Au from surface
  • Camp revenue of $0.5M during the quarter

Corporate

  • Cash balance at quarter end $6.8 million
  • Placement undertaken to raise $4.8 million (before costs) to fund ongoing drilling at Ravensthorpe
  • Nickel tenure divestment to NickelSearch Ltd (NIS) completed and NIS successfully lists on the ASX. Medallion holds 15.1% of NIS shares on issue, with a market value of $2.6 million at quarter end

Medallion Metals Ltd

Suite 1/11 Ventnor Ave, West Perth WA 6005

www.medallionmetals.com.au

ABN 89 609 225 023

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Medallion Metals Limited

ASX Announcement

Medallion Metals Limited (ASX:MM8, the "Company" or "Medallion") is pleased to report on activities at its projects during the December 2021 quarter.

RAVENSTHORPE GOLD PROJECT (WESTERN AUSTRALIA) (ownership - 100%)

Kundip Mining Centre (KMC)

Medallion continued to advance its aggressive extensional drill programme at KMC during the quarter. KMC is host to the Company's high grade JORC 2012 gold Mineral Resource Estimate ("MRE") of approximately 674,000 oz1.

Figure 1: Plan of KMC showing historical and 2021 drill pierce points > 5 GxM Au, with 2021 results > 10 GxM Au annotated

1 8.8 Mt @ 2.4 g/t Au (7.0 Mt @ 2.3 g/t Au Indicated and 1.8 Mt @ 2.6 g/t Au Inferred). Refer to the Company's Prospectus announced on the ASX on 18 March 2021 for further details regarding the MRE, historical production and Competent Person's Statement.

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Medallion Metals Limited

ASX Announcement

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Figure 2: Plan of KMC showing historical and 2021 drill pierce points > 5 GxM Au, with 2021 results > 10 GxM Au annotated

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Medallion Metals Limited

ASX Announcement

Drilling completed during the quarter targeted depth and strike extensions of the known high-grade deposits at Gem (formerly Kaolin) and Harbour View in addition to near mine prospects at Gem Restored and Gift North (Figures 1 & 2).

Significant new drilling results (>10 g/t Au x metres) reported from KMC during the quarter include:

  • 20m @ 2.6 g/t Au, 0.1 % Cu, 2.2 g/t Ag from 38m (RC21KP1050) - Gem
  • 34m @ 1.6 g/t Au, 0.2 % Cu, 2.1 g/t Ag from 91m (RC21KP1049) - Gem
  • 1.0m @ 12.8 g/t Au, 1.0 % Cu, 13.9 g/t Ag from 218m (DD21KP959) - Harbour View
  • 0.6m @ 14.1 g/t Au, 0.9 % Cu, 6.2 g/t Ag from 51.8m (DD21KP960) - Harbour View
  • 2.4m @ 4.3 g/t Au, 7.2 % Cu, 37.35 g/t Ag from 231.2m (DD21KP997) - Harbour View
  • 3m @ 9.2 g/t Au, 0.2 % Cu, 3.4 g/t Ag from 69m (RC21KP1001) - Harbour View
  • 1.97m @ 5.1 g/t Au, 2.6 % Cu, 47.6 g/t Ag from 276.6m (DD21KP993) - Harbour View
  • 2m @ 4.5 g/t Au, 1.3 % Cu, 15.0 g/t Ag from 29m (RC21KP990) - Harbour View

All drilling results reported above 10 g/t Au x metre are labelled in Figures 1 & 2. Figure 1 is a plan of KMC. Figure 2 is a section through KMC looking west. Drill pierce points above 10 g/t Au x metres are shown overlain on Feasibility Study2 open pit designs and underground development designs, demonstrating the open nature of the mineralised structures at depth, down plunge and to where they are projected to intersect. All drilling at Gem Restored is outside the current MRE. For further information about the drilling results, please refer to the Company's ASX announcements dated 11 November 2021 and 18 November 2021.

Both RC and DDH drilling has been undertaken on an approximate 40m x 40m pattern, extending to an 80m x 40m pattern at deposit extremities. In combination with historical drilling, the expanded and enhanced dataset will support a global update of the MRE at KMC.

In December 2021, the Company reported multiple occurrences of visible gold from diamond drill hole DD21KP1033 at approximately 102m down hole. The position of the visual gold occurrences in DD21KP1033 within massive sulphide mineralisation is interpreted to represent down dip extensions of the historically mined Beryl lodes. Historical drilling proximal to the Beryl workings have recorded some of the highest gold and copper grades recorded from KMC. Assay results from DD21KP1033 are expected in February 2022. For more information about hole DD21KP1033, please refer to the ASX announcement dated 21 December 2021.

Figure 3: DD21KP1033: quartz-pyrrhotite-chalcopyrite mineralisation with visible gold approximately 102m downhole

2 Refer to the Company's Prospectus announced on the ASX on 18 March 2021 for further details regarding the Feasibility Study.

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Medallion Metals Limited

ASX Announcement

Meridian

During the period the Company reported results from a preliminary RC drill programme conducted at the regional Meridian prospect, located approximately 4km west of the Ravensthorpe townsite (Figure 5). Drilling was conducted on 40m to 80m spaced lines along a strike of 700m. A total of 11 holes for 1,224m of drilling was carried out to test beneath historical workings and validate historical workings and drilling (Figure 4).

Figure 4: Long section of Meridian looking northwest with Medallion and historical drill intercepts and DHEM plates annotated.

  • 5m @ 11.4 g/t Au, 0.16 % Cu, 1.4 g/t Ag from 32m (RC21MR009) including; o 2m @ 26.7 g/t Au, 0.18 % Cu, 2.1 g/t Ag from 32m
  • 2m @ 6.12 g/t Au, 0.15 %, Cu, 1.9 g/t Ag from 125m (RC21MR003)
  • 4m @ 2.89 g/t Au, 0.04 % Cu, 0.1 g/t Ag from 58m (RC21MR003)

The results support the presence of steeply south-east dipping (80°) mineralised structures that strike 30° within the overall north-east trending Meridian mineralised zone. In addition to confirming historical mineralisation, drilling intersected two additional massive sulphide lodes situated at 30m intervals within the footwall to the historically mined lodes. The identification of multiple parallel lodes at Meridian significantly increases the prospectivity of the area.

Follow up geophysics has defined multiple strong downhole electro-magnetic (DHEM) conductors from surveys of three of the Meridian holes (Figure 4).

Identification of a significant mineralised system located 21km along strike from KMC confirms the district scale opportunity the Annabelle Volcanics represent of which Medallion is the dominant landholder. Follow up drilling at Meridian will be carried out in early 2022. For further information relating to Meridian, please refer to ASX announcements dated 18 October 2021 and 8 December 2021.

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Medallion Metals Ltd. published this content on 30 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 January 2022 21:30:05 UTC.