AuMEGA Metals Limited — Capital/Financing Update 2017

Aug 29, 2017

ASX Announcement 30 August 2017

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Multiple High Grade Copper, Gold, Cobalt Results: Copper Hills Project

HIGHLIGHTS

• Multiple high-grade rock chip results received from sampling conducted across Copper Hills Project

• Best results include:

• Sample 134: 17.2% Cu , 2.36 g/t Au

• Sample 141: 14.1% Cu , 1.99 g/t Au

• Sample 131: 13.2% Cu

• Sample 148: 9.13% Cu, 11.7 g/t Au

• Sample 149: 6.11% Cu, 0.11% Co

• Sample 150: 6.76% Cu, 0.13% Co

Matador Mining Limited (ASX: MZZ) is pleased to present the results of a successful rock chip sampling campaign completed at the Company’s 100%-owned Copper Hills Project. The Project is located 42km south of Meekatharra, near the historic Gabanitha Gold Mine.

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Twenty-seven of the 28 reconnaissance samples taken reported copper grades >1% with a peak value of 17.2% Cu (Sample 134). The same sample, taken near the historic Copper Hill workings, reported a gold value of 2.36g/t Au. Most copper values ranged between 3% and 10% Cu, with only one sample returning a value of less than 1% Cu.

The high-grade copper results are distributed along the three-kilometre length sampled. Malachite with lesser azurite represent the dominant copper species in all samples.

Matador Mining Limited Suite 23 513 Hay Street Subiaco WA 6008 T: 08 6143 6710 www.matadormining.com.au info@matadormining.com.au

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Table 1: Rock Chip Results with >5% Cu

Sample No. Easting MGA 50J	Northing MGA 50J	Cu %	Au g/t	Ag g/t	Co **ppm **
127 0666593	7017670	7.54	2.45	1.5	344
131 0666608	7017701	13.2	0.52	5	110
133 0667236	7017060	9.12	0.92	6.7	257
134 0668179	7015338	17.2	2.36	2.8	34
136 0668170	7015342	6.85	1.82	7.2	43
139 0668196	7015502	11.4	3.08	7.6	97
141 0668143	7015497	14.1	1.99	11.4	99
148 0666967	7017512	9.13	11.7	6.7	922
149 0666960	7017513	6.11	0.42	7.6	1060
150 0666970	7017566	6.76	0.6	4.5	1270
154 0666633	7017703	7.49	0.76	4.2	56
157 0666593	7017670	10.9	0.49	9.8	314

Fourteen of the 29 reconnaissance samples reported promising gold values exceeding 1g/t Au with a peak value of 11.7g/t Au (Sample 148). Five samples reported gold values exceeding 3g/t Au. As with copper, the enriched gold numbers are distributed along the three-kilometre length sampled. Most gold values ranged between 0.1 and 3 g/t Au.

Additionally, promising anomalous cobalt results were returned in two samples, 149 and 150, with 1060 and 1270 ppm Co, respectively.

The samples were mostly collected along the two northwest-trending, subparallel shear zones that partition the eastern ultramafic unit and the tenement. The mineralisation in the area can be likened to that found nearby at Gabanintha although with a lower gold/copper ratio.

Next Steps

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The Company will now consider the expansion of the rock chip program to include similar sub-parallel shear zones in the west and east of the Project area.

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Figure 1: Copper geochemistry with sample location

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About the Copper Hills Project:

The Copper Hills Project is located 42km south of Meekatharra in Western Australia in the Meekatharra-Wydgee Greenstone Belt of the north-eastern Murchison Province. The Project lies immediately southeast of the historic Gabanintha Gold Mine.

Access to Copper Hills from Meekatharra is via the Meekatharra-Sandstone Road and station tracks. The topography is relatively subdued, and sparse vegetation allows for easy access.

The ultramafic dominant Lady Alma Igneous Complex underlies most of the Copper Hills tenure and hosts the Copper Hills and Lady Alma copper gold mineralisation. The Lady Alma Intrusive Complex was assigned to the Meeline Intrusive Suite which also hosts the Windimurra, Barrambie and Youanmi Igneous Complexes.

The mineralisation at Copper Hills is controlled by a north-northwest trending shear zone, dipping moderately to steeply to the east. To the north, the shear rotates towards the northwest. The lithologies of Copper Hills consist of a western gabbro unit and eastern ultramafic unit. The mineralisation is present in both lithologies; it is, however, best developed within the mafic lithologies.

The copper mineralisation is interpreted to be hydrothermal/ structural and consists of predominantly chalcopyrite with lesser pyrite ± pyrrhotite associated with quartz veining and as anastomosing thin veinlets. To a lesser extent, small vein breccias are additionally associated with mineralisation. Individual veinlets are interpreted as being relatively discontinuous within the structure, and higher-grade zones within the historical drilling represent zones of greater vein density within zones of localised dilation.

Historical drilling has confirmed the presence of significant copper and gold mineralisation over a strike length of at least 2.2km and is open to the northwest. A shallow northerly plunge component to the mineralisation is evident.

Please direct enquiries to:

Scott Patrizi (Executive Director) +61 8 6143 6710

Competent Persons Statement

The information in this announcement that relates to the Exploration Results is based on information compiled and fairly represented by Mr Jonathan King who is a Member of the Australian Institute of Geoscientists and consultant to Matador Mining Ltd. Mr King has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he has undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr King consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

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Lady Alma
Cu-Au Prospect
Copper Hills
Cu-Au Prospect
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Figure 2: Location of Copper Hills

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APPENDIX 1: Table of Results for Rock Chip Sampling, Copper Hills Project

Sample No.	Easting MGA 50J	Northing MGA 50J	Cu %	Au g/t	Ag g/t	Co ppm	Ni ppm	Pb ppm	S ppm	Zn ppm
127	0666593	7017670	7.54	2.45	1.5	344	2310	48	110	960
128	0666557	7017595	3.36	0.22	4.3	88	684	114	120	38
129	0666576	7017624	1.98	0.51	1.1	154	518	12	120	405
130	0666618	7017599	5.08	1.02	6.4	205	1760	34	515	507
131	0666608	7017701	13.2	0.52	5	110	758	70	6160	63
132	0667127	7017059	2.7	1.04	8.6	394	908	29	1410	702
133	0667236	7017060	9.12	0.92	6.7	257	2270	47	205	109
134	0668179	7015338	17.2	2.36	2.8	34	344	90	40	13
135	0668169	7015339	2.82	3.05	1.2	36	137	19	90	7
136	0668170	7015342	6.85	1.82	7.2	43	423	44	210	15
137	0668172	7015345	5.57	6.78	1.3	47	480	38	85	20
138	0668166	7015342	4.87	1.38	2.1	23	210	33	70	10
139	0668196	7015502	11.4	3.08	7.6	97	453	66	195	39
140	0668173	7015347	3.54	1.53	1.2	59	618	21	30	34
141	0668143	7015497	14.1	1.99	11.4	99	772	97	695	22
142	0667363	7016912	2.57	15	3.5	51	243	21	110	72
143	0667020	7017335	0.98	0.01	X	151	1500	14	25	1180
144	0666994	7017357	4.28	0.03	9.2	104	1180	52	2490	1640
145	0667934	7017283	5.4	2.04	1.6	80	2100	79	85	805
146	0667032	7017268	4.25	0.46	0.6	202	2050	29	235	697
147	0667031	7017260	3.88	3.41	0.8	225	2050	38	50	424
148	0666967	7017512	9.13	11.7	6.7	922	3900	68	880	909
149	0666960	7017513	6.11	0.42	7.6	1060	3010	43	930	406
150	0666970	7017566	6.76	0.6	4.5	1270	2950	49	390	359
151	0666662	7017667	5.02	0.1	1.4	241	657	61	240	78
152	0666654	7017685	2.69	0.02	X	85	428	56	60	23
153	0666629	7017703	4.82	0.18	1.2	86	686	47	155	72
154	0666633	7017703	7.49	0.76	4.2	56	553	116	145	309
156	0668179	7015338	2.51	0.38	X	101	544	18	50	45
157	0666593	7017670	10.9	0.49	9.8	314	1230	95	830	5010

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APPENDIX 2: JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Comments
Sampling techniques	· Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.	Reconnaissance rock chip sampling conducted by visual identification of mineralised material to gain an understanding of the tenor of mineralisation.
	· Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	Samples taken typically weighed in the range of 3 to 4kg
	· Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	Standard approaches adopted
Drilling techniques	· Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	No drilling reported
Drill sample recovery	· Method of recording and assessing core and chip sample recoveries and results assessed.	No drilling reported
	· Measures taken to maximise sample recovery and ensure representative nature of the samples.	No drilling reported
	· Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	No drilling reported

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Logging	· Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	Rock chip samples were visually logged and photographed
	· Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.	No drilling reported
	· The total length and percentage of the relevant intersections logged.	No drilling reported
Sub-sampling techniques and sample preparation	· If core, whether cut or sawn and whether quarter, half or all core taken.	No core drilling completed.
	· If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	No drilling reported
	· For all sample types, the nature, quality and appropriateness of the sample preparation technique.	Whole rock samples were submitted to SGS Perth Laboratories for crushing, grinding and assaying in accordance with industry best practices. No field preparation of samples was conducted
	· Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.	Quality Control for sub-sampling follows SGS procedures
	· Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.	One field duplicate chip sample was submitted and high grade samples were re-assayed to confirm validity.
	· Whether sample sizes are appropriate to the grain size of the material being sampled.	Sample sizes are considered appropriate to the grain size of the material being sampled
Quality of assay data and laboratory tests	· The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	50g Fire Assay was the selected method and considered total Four acid digestion with an ICP finish was used in the determination of the other metals
	· For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.	No geophysical instruments used
	· Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	One field duplicate sample was submitted for analysis. Other quality controls were those routinely practiced by the laboratory.
Verification of sampling and assaying	· The verification of significant intersections by either independent or alternative company personnel.	Samples were collected, visually inspected, logged and verified against assay results by consultant geologists of Krakatoa
	· The use of twinned holes.	No duplicate holes were drilled

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	· Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	All field data is manually captured in the field, entered into excel spreadsheets and then imported into validated access databases
	· Discuss any adjustment to assay data.	No adjustments were made to assay data presented in this report
Location of data points	· Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	The samples were located using a handheld GPS with an accuracy of +/- 4m.
	· Specification of the grid system used.	MGA 94 zone 51
	· Quality and adequacy of topographic control.	Topographic control using GPS is more than adequate for rock chip sampling.
Data spacing and distribution	· Data spacing for reporting of Exploration Results.	Sample points were selected on the basis of visual logging and thus were not collected on a regular grid or pattern
	· Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.	Sampling reported is of reconnaissance nature and not for the purposes of the delineation of a mineral resource.
	· Whether sample compositing has been applied.	No Sample compositing applied.
Orientation of data in relation to geological structure	· Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.	Sampling was conducted across specific points. Further systematic channel sampling is planned to be conducted.
	· If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	No drilling reported
Sample security	· The measures taken to ensure sample security.	Samples were transported from site to the labs secure facility by the company’s geological contractors
Audits or reviews	· The results of any audits or reviews of sampling techniques and data.	None conducted

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Section 2 Reporting of Exploration Results

Section 2 Reporting of Exploration Results	Section 2 Reporting of Exploration Results	Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	·Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.	Matador is the 100% owner of E51/1716.
	·The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	No known impediments exist with respect to the exploration or development of the tenement.
Exploration done by other parties	·Acknowledgment and appraisal of exploration by other parties.	Mithrill Resources Ltd explored the Copper Hills area as part of their larger Copper Hills Project. Prior to Mithrill, Silver Swan Group (2008-2013) conducted extensive geochemical sampling and drilling over a larger combined Meekatharra East Tenement Group (group reporting) which covered the Copper Hills prospect. Historical drilling at Copper Hills Prospect was by Union Oil-Homestake JV in the late 1960s to early 1970s reported the following broad shear hosted copper mineralisation in two diamond holes: • CD6: 101m @ 0.46% Cu from 63m o Including 16.1m @ 0.99% Cu from 64.5m & 17.8m @ 0.86% Cu from 145.7m • CD7: 13.7m @ 0.95% Cu from 9.1m & 12.5m @ 1.45% Cu from 39.9m .
Geology	·Deposit type, geological setting and style of mineralisation.	The copper and gold mineralisation at Copper Hills is controlled by a north-northwest trending shear zone, dipping moderately to steeply to the east. To the north the shear rotates towards more of a northwest orientation. The lithologies of Copper Hills consist of a gabbro unit to the east and an ultramafic unit to the west. The mineralisation is interpreted to be hydrothermal/ structural in nature and consists of predominantly chalcopyrite with lesser pyrite ± pyrrhotite associated with quartz veining and as anastomosing thin veinlets.
Drill hole Information	·A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:	No drilling reported
	o_easting and northing of the drill_ hole collar	No drilling reported
	o_elevation or RL (Reduced Level – _elevation above sea level in metres) of the drill hole collar

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	o_dip and azimuth of the hole_	No drilling reported
	o_down hole length and interception_ depth	No drilling reported
	o_hole length._	No drillingreported
	·If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	All available information has been released.
Data aggregation methods	·In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.	No modification of results was conducted.
	·Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.	No aggregation of data was conducted.
	·The assumptions used for any reporting of metal equivalent values should be clearly stated.	No metal equivalence are reported.
Relationship between mineralisation widths and intercept lengths	· These relationships are particularly important in the reporting of Exploration Results.	Further work to establish the key geological parameters is warranted
	· If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.	No drilling reported
	·If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).	No drilling reported

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Diagrams	·Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Maps and plans have been included in announcement.
Balanced reporting	·Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	All results including those with no significant results have been reported.
Other substantive exploration data	· Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	No other exploration data is considered meaningful and material to this announcement.
Further work	·The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).	Geological modelling is planned to define the optimal locations for further exploration.
	·Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	Diagrams will be provided upon completion of geological modelling.

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