Megado Gold : Quarterly Activities Report & Appendix 5B

operates

Megado continues to advance its exploration activities unhindered across its four gold projects in the Adola Gold Belt (Babicho, Chakata, Dawa, and Mormora).

ASX Announcement

24 January 2022

onlyHIGHLIGHTS

QUARTERLY ACTIVITIES AND CASHFLOW REPORT

FOR THE PERIOD ENDED 31 DECEMBER 2021

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Despite the recent State of Emergency announced by the government of Ethiopia, the Company continues its day-to-day operations

1. Megado's tenements are several days' drive from the principal points of

conflict

1. Megado's workforce is almost entirely made up of Ethiopian experts who are embedded in, and supported by, the communities where the Company

1. Megado continues to monitor the situation as it pertains to its operations

personal	while pursuing an uncompromising commitment to safety
	Cash at $1.24m as of 31 December 2021

Ethiopian-focused gold explorer Megado Gold (ASX:MEG) (Megado or the Company) is pleased to

provide the following commentary on its activities and an Appendix 5B for the quarter ended 31 December 2021.

ETHIOPIA TRAVEL

Megado Gold CEO and Managing Director, Michael Gumbley, travelled to Ethiopia several times during
the most recent quarter. He commented:
For	"It was great to be back on the ground in Ethiopia. The country continues to attract substantial investment

across industries, particularly in the mining sector. I was fortunate enough to be present at a ceremony celebrating several new mining projects, including the Kurmuk Gold Mine, a deposit originally discovered by Megado's Executive Director, Dr. Chris Bowden.

Megado Gold Ltd	Australian Registered Address	Directors
ACN 635 895 082	12/197 St Georges Terrace	Brad Drabsch (Non-Exec. Chair)
ASX: MEG	PERTH WA 6000 Australia	Michael Gumbley (MD and CEO)
Issued Capital		Chris Bowden (Exec. Tech. Director)
T [phone]	Marta Ortiz (Non-Exec. Director)
71.5m Shares	Aaron Bertolatti (Finance Director)
16.3m Options	E [e-mail]
	W www.megadogold.com

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The two key takeaways for me were the quality of our staff and the potential of our projects. In short, Megado's staff are excellent. They continually demonstrate profound knowledge of the region's geology, and their counsel is regularly sought from Ministry officials and other exploration companies in the Adola Gold Belt. The fact that almost all of them worked at nearby Lega Dembi or Sakaro, which have produced >3Moz Au, has proven extremely helpful in being able to identify similarities to those major systems and bodes extremely well for Megado's to optimise its portfolio's potential.

As important to the future growth of the company, Megado's land portfolio continues to exhibit tremendous promise. At Babicho and Chakata, systematic exploration continues. Given the visual observations in trenching and sampling activities, we expect to expand activities at both sites significantly in 2022. The presence of marked artisanal activity similarly confirms the presence of gold in the area. The team and I are extremely excited for Megado's outlook in 2022."

Figure 1: The Megado Gold team with local dignitaries in Ethiopia

Overall, harder than usual rains during the rainy season necessitated a reduction in activities at Megado's projects in the Adola Gold Belt. Instead, much of the quarter was applied to modelling structures based on previous activities and continued field reconnaissance. Megado also used this time to advance community

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development projects which were greatly welcomed by our local partners in the field.
For
Figure 2: Megado performed maintenance on access roads and other activities for

local communities surrounding the Babicho Gold Project

BABICHO GOLD PROJECT

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personal	Figure 3: Babicho Gold Project Overview - Silingo Shear in centre (coincident with soil anomaly),
	Biloya Shear to the east - both part of the tenement scale Babicho Shear Zone,
	which in turn is part of the belt-wide Lega Dembi-Sakaro Shear Zone.

Megado remains extremely confident of Babicho's potential. Encouraging trenching results, broad mineralisation, and similarities to Lega Dembi's lithology imbue confidence that Babicho has the capacity to host gold deposits of significant scale (see September 2021Quarterly Reportfor a summary). Focus at Babicho has been on the Roba Shakiso Prospect. Roba Shakiso hosts the highly altered Silingo Shear zone that trends north-south and dips primarily to the east with lineation measurements indicating a northly

Forplunge. This zone will be the target of future exploration work in 2022 with the expectation that gold mineralisation is hosted along the Silingo Shear.

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Table 1 - Significant Intercepts from trenching program at the Roba Shakiso Prospect, Babicho Gold Project

	Trench ID			From (m)			To (m)			Depth			Au
							(m)			(g/t)
	BBTR016	72		102		30		1.06
	inc.	96		102		6		3.03
	BBTR012	70		91		21		1.46
	inc.	80		91		11		2.55
	and	45		51		6		1.75
	BBTR015	123		137		14		1.09
	inc.	123		129		6		2.13
	BBTR011	55		85		30		0.84
	inc.	71		81		10		2.04

All reported widths are downhole and are not necessarily indicative of true widths.

Figure 4: Phase 2 trenching results at the Babicho Gold Project