Medallion Metals : Significant Visible Gold Intersected in Extensional Drilling

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21 December 2021

ASX:MM8

Significant Visible Gold Intersected at Gem Deposit

Highlights

• Significant visible gold identified in resource extensional drilling at the Gem Deposit (formerly the Kaolin Deposit)
• DD21KP1033 intersected numerous occurrences of visible gold approximately 102m down hole, in drilling targeting down dip extensions to Gem from the historical Beryl shaft and underground workings. Assays expected to be received in February 2022
• Historical drilling at the Beryl workings have recorded some of the highest gold and copper grades from the Kundip Mining Centre
• Logging of DD21KP1033 is indicative of the Beryl lodes remaining open at depth, which are well outside the current pit design and within approximately 130m of surface

Medallion Metals Limited

S1/11 Ventnor Ave, West Perth WA 6005

www.medallionmetals.com.au

ABN 89 609 225 023

Medallion Metals Limited

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• Follows on from other high grade resource extensional drilling results at Gem in 2021 including:
• • 3.3m @ 10.1g/t Au, 3.1% Cu, 38.6g/t Ag from 54m (DD21KP962)
  • 12m @ 3.4g/t Au, 0.2% Cu, 1.5g/t Ag from 78m (RC21KP977)
  • 20m @ 2.6 g/t Au, 0.1 % Cu, 2.3 g/t Ag from 71m (RC21KP1050)
  • 34m @ 1.56 g/t Au, 0.2 % Cu, 2.06 g/t Ag from 91m (RC21KP1049)

Managing Director, Paul Bennett, commented:

"We know there is coarse gold at Kundip from gravity gold recovery testwork and previous sightings of visible gold in drill core and chips, however this is the largest and most significant occurrence observed during our 2021 drill programme. The multiple occurrences within a short interval suggest we are drilling a potentially high-grade zone of the orebody. We have confidence that the Beryl lodes are open down dip and down plunge and given the proximity to the base of the current Gem pit design, we'd expect to see high grade additions to the mine plan come from this area."

Overview

Medallion Metals Limited (ASX:MM8, the "Company" or "Medallion") is pleased to report significant visible gold in extensional diamond drilling targeting down dip extensions to the Beryl lodes. The Beryl lodes are situated within the central section of the Gem deposit (formerly known as the Kaolin Deposit) in the northern half of the Kundip Mining Centre ("KMC") (Figure 2). KMC is host to a JORC 2012 Mineral Resource Estimate ("MRE") of 674,000 oz at 2.4g/t Au1.

Figure 2: Isometric view of the Gem deposit location within the Kundip Mining Centre1

1 Total Mineral Resources of 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), Probable Ore Reserves of 4.1Mt @ 2.1 g/t Au. Refer to the Company's Prospectus announced on the ASX on 18 March 2021 for further details regarding the MRE, Ore Reserves and Competent Person's Statement.

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Beryl historical workings

During 1934, Beryl Gold Mines Ltd conducted a 12-hole diamond program across the length of the Gem deposit area targeting the east-west shallow south dipping Gem, Two Boys and Hillsborough lodes. A number of high- grade intersections led to a shaft being sunk on bore hole 11 in 1938. Mining occurred intermittently until 1989 when Norseman Gold Mines N.L. ceased operations. The original three compartment timber lined shaft extends to a depth of 130m below surface and remains in good condition with mining completed on three levels. Total production recorded from the Beryl shaft was 10,476 tonnes at 11.85 g/t Au for 3,991 ounces of contained gold (Lea, 1989).

Figure 3: Beryl main lode at 5 sub level, southern face of pillar between surveys 507 and 541

Figure 4: Plan of Beryl workings, proximal drill hole results > 10 GxM and DD21KP1033 drill collar and trace to end of hole. Small spheres are pre 2021 drilling, for further information refer to the Company's Prospectus announced on the ASX on 18 March 2021.

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Historically, the Beryl lodes have yielded some of the highest grades recorded in drilling at KMC (Figure 4). The position of the visual gold occurrences in DD21KP1033 within massive sulphide mineralisation is interpreted to represent down dip extensions of the Beryl lodes to the south-west.

2021 DD drilling at Gem

The 2021 drill program has systematically tested the southern down-dip and down-plunge extents of the Gem deposit lodes including the Beryl structures. Highlights from the 2021 drilling campaign at Gem include;

• 3.3m @ 10.1g/t Au, 3.1% Cu, 38.6g/t Ag from 54m (DD21KP962) including
  o 1.2m @ 19.5g/t Au, 4.6% Cu, 40.6g/t Ag from 54m
• 12m @ 3.4g/t Au, 0.2% Cu, 1.5g/t Ag from 78m (RC21KP977) including
  o 2m @ 10.4g/t Au, 1.0% Cu, 5.1g/t Ag from 83m
• 1m @ 23g/t Au, 0.03% Cu, 3.0g/t Ag from 133m (RC21KP973)
• 2m @ 6.5g/t Au, 0.4% Cu, 5.7g/t Ag from 72m (RC21KP979)
• 20m @ 2.6 g/t Au, 0.1 % Cu, 2.3 g/t Ag from 71m (RC21KP1050) including o 9m @ 2.6 g/t Au, 0.03 % Cu, 0.9 g/t Ag from 71m
  o 8m @ 3.4 g/t Au, 0.3% Cu, 4.5 g/t Ag from 83m
• 34m @ 1.56 g/t Au, 0.2 % Cu, 2.06 g/t Ag from 91m (RC21KP1049) including o 21m @ 1.5 g/t Au, 0.1 % Cu, 0.8 g/t Ag from 91m
  o 11m @ 2.0 g/t Au, 0.4% Cu, 4.9 g/t Ag from 114m
• 1m @ 12.8 g/t Au, 0.96 % Cu, 13.9 g/t Ag from 218m (DD21KP959)
• 0.63m @ 14.1 g/t Au, 0.87% Cu, 6.2 g/t Ag from 51.82m (DD21KP960)

For further details relating to these intersections, refer the Company's ASX announcements dated 2 August 2021 and 11 November 2021.

DD21KP1033 was drilled targeting the down-dip extensions of the Beryl underground workings (Figure 6) and intersected visible gold at approximately 102m down hole (Figure 5). The visible gold is situated within a 2.5m mineralised zone comprised of a ~50cm quartz-sulphide vein with 15% chalcopyrite and 5% pyrite abundance following a stringer sulphide (pyrite-chalcopyrite) zone. Additionally, there are several small (<1mm) specks of gold hosted within the quartz-sulphide vein. The mineralised zone is hosted within a fine-grained andesitic volcanoclastic rock of the Annabelle Volcanics with several other mineralised zones observed including;

138.3m: ~10cm quartz-chalcopyrite (40%), pyrite (10%) vein within the Andesitic volcanoclastic

142.9m: ~15cm sulphide (chalcopyrite 75%, pyrite 20%) vein within the Andesitic volcanoclastic

147.6m-155.5m: 5% blebby pyrite hosted in brecciated and strongly silicified tonalite beneath the Andesite

171.5m: ~10cm Quartz-sulphide (15 % pyrite) vein hosted within the tonalite

Figure 5: DD21KP1033 showing multiple fine gold particles of visible gold (circled red) at ~ 102m down hole.

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Figure 6: Isometric view looking north-east of the planned Gem open pit from the 2020 Feasibility Study2. Beryl historical workings (surveyed workings in red) are situated beneath the planned pit with the drill trace of DD21KP1033 shown down- dip of the workings. Historical and 2021 drill intercepts greater than 10 Gram x Metres (GxM) are highlighted. Smaller spheres are pre 2021 drilling.

Next Steps

DD21KP1033 will be logged and sampled in coming weeks. Assay results from the zone where visible gold was observed are not expected until February 2022. Planning for the Company's 2022 drill programme at KMC is currently underway.

Drill Programme Update

Medallion's initial 2021 drill programme is nearing completion with approximately 29,000m of RC & DDH drilling completed to date. The Company currently has a single RC rig deployed at KMC in the lead up to Christmas. A single 300m diamond hole is being drilled at the Old Gregg prospect located approximately 10 kilometres north of KMC. The Company will pause all drilling activity at the Ravensthorpe Gold Project on 21 December 2021. RC drilling at KMC and DDH drilling at Old Gregg will recommence on or around 5 January 2022. A second diamond rig will mobilise to the Meridian prospect on or around 9 January 2022.

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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