AuMEGA Metals Limited — Capital/Financing Update 2021

Mar 29, 2021

ASX Announcement 30 March 2021 | ASX: MZZ

New Gold Discoveries and Expanded Mineralisation Highlights 2020 Drill Program

Highlights

• 2020 drilling program at the Cape Ray Gold Project achieved multiple major milestones

• First new gold discovery at the Project in over 20 years (Angus) and increased gold footprint at Window Glass Hill and Isle aux Morts

• Angus discovery hole – 20 metres at 2.4 g/t Au (CDR126)

• Mineralisation to date intersected over 450 x 300 metre area, and remains open

• Best intercept[1] drilled by Matador at the Cape Ray Gold Project

• 18 metres at 11.0 g/t Au from 7 metres (197g.m Au) (CRD162 – Isle aux Morts )

• Discovery of new high-grade zone below current mineral resource model at Window Glass Hill – 2 metres at 6.9 g/t Au from 154.1 metres (CRD151) – remains open at depth

• New drilling supports shallow, open pit mining potential

• 80% of all gold contained in significant intercepts is < 80 vertical metres from surface

• Excellent success rate hitting mineralisation in drilling

• 75 holes drilled (10,768m), 76% of holes reported significant intercepts (>0.5g/t Au cut off)

• On track to mobilise to site in April 2021 in preparation for the new exploration season

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Figure 1: Best significant intercepts from each drill target in 2020

1 Best single intercept (grams x metres) drilled by Matador

Matador Mining Limited

www.matadormining.com.au info@matadormining.com.au

Emerald House,1202 Hay Street, West Perth, WA, 6005 T: 08 6117 0478

ABN 45 612 912 393

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Executive Chairman Ian Murray commented:

“The 2020 drill program set the benchmark for the Company. We achieved multiple records and milestones, highlighted by the first new gold discovery at the Cape Ray Gold Project in more than 20 years and the expansion of gold mineralisation around existing Mineral Resources.

One of the more impressive 2020 drilling statistics is that 80% of all gold[2] is contained in significant intercepts[3] drilled within 80 vertical metres of surface. This demonstrates the potential of the Cape Ray Gold Project and supports the ongoing Company strategy of targeting shallow, open-pittable gold deposits in an immature exploration environment, as we look to expand upon the already robust platform that was set in the May 2020 Scoping Study[4] .

With the foundations now established, we look forward to providing additional information shortly on what will be one of the most ambitious exploration programs undertaken at the Cape Ray Gold Project. With preparations well advanced, we are looking to hit the ground running early next quarter”.

Table 1: 2020 drilling program statistics (compared to key metrics from 2018 & 2019)[3, 5]

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2 80% of all contained gold (weighted sum of down-hole Au g.m)5 contained within significant intercepts3.

3 The Significant Intercept calculation is based on 0.2g/t Au cut-off with maximum 4 metres consecutive internal waste, there can be multiple significant intercepts in one drill hole. The estimate of contained gold (in the drill hole) is based on the Sum of Au g.m (grams x metres) within the Significant Intercept(s).

4 ASX announcement 6 May 2020.

5 Au g.m = Au grams x metres for each individual assay interval. Sum Au g.m = the weighted sum of the Au g.m intervals within a single Significant Intercept, or within combined Significant Intercept intervals.

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Matador Mining Limited (ASX: MZZ ) (“ Matador ” or the “ Company ”) is pleased to provide a review of the 2020 drilling program at the Company’s 100% owned Cape Ray Gold Project (the “ Project ”) in Newfoundland, Canada. The Cape Ray Gold Project comprises of 120 kilometres of continuous strike in the proven, yet under-explored multi-million-ounce Cape Ray Shear gold corridor. Matador is the largest continuous land holder along this highly prospective shear zone.

Matador’s 2020 drilling program yielded some of the best drilling results ever reported from the Cape Ray Gold Project (Figure 1) despite a delayed start to the 2020 field season due to COVID-19. A total of 10,768 metres of exploration drilling (all diamond drill holes) was completed between JulyNovember 2020, comprising a combination of greenfields (41%), extensional (40%) and Mineral Resource infill (19%) drilling (TABLE 1).

An additional 1,528 metres of geotechnical and hydrological drilling was also completed to support ongoing mining and environmental studies.

The 2020 drilling season yielded numerous successes for Matador:

• The highest-grade assay ever drilled by Matador at the Project 1 metre at 79.9g/t Au[6] ;

• The best intercept ever drilled by Matador at the Project 18 metres at 11 g/t Au (197g.m Au)[6]

• The first new discovery on the Project in more than 20 years – Angus discovery hole ( 20 metres at 2.4 g/t Au )[4, 7] approximately one kilometre south-west of Window Glass Hill Mineral Resource;

• Of the 75 holes drilled (10,768m), 76% reported significant intercepts (>0.5g/t Au cut off); and

• 80% of all gold contained in significant intercepts[3] for 2020 drilling is within 80 (vertical) metres of surface (All reported significant intercepts for 2020 are within 150 vertical metres of surface).

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Figure 2: Drilling during 2020 exploration program

6 ASX announcement 1 February 2021. 7 ASX announcement 11 November 2020.

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Isle aux Morts 2020 Infill and Extension Drilling

Successful infill and extensional drilling completed at Matador’s Isle aux Morts deposit (current Mineral Resource: 60Koz at 2.4 g/t Au)[8] . Many of the infill and extensional drill holes intersected higher grades and/or greater widths than predicted from the existing broader-spaced drilling (Figure 3).

Table 2: Significant intercepts from Isle aux Morts infill and extensional drilling (2020)[9]

HoleID	Significant Intercept Width (metres)	Significant Intercept average Au grade (g/t)	From (metres)	Significant Intercept Sum Au g.m (grams x metres)
CRD162 18 11.0 7 197.3
CRD160 18 5.6 10 101.0
CRD161 19 4.6 8 87.4
CRD165 15 2.5 12 37.4 AND 5 2.3 90 11.6 AND 4 1.1 40 4.5
CRD166 10.5 2.6 7 27.7
CRD163 7.4 3.0 8 22.1 AND 5.5 1.6 41.5 8.7 AND 1 2.7 28 2.7
CRD156 2.5 3.8 49 9.5 AND 1 1.1 56 1.1 AND 1 2.0 79 2.0
CRD152 1.3 4.8 94.7 6.1
CRD158 2 2.0 36 4.0
CRD153 1.6 2.2 73.4 3.5

Drilling also demonstrated that gold mineralisation extends beyond the existing Mineral Resource wireframes to the north-east and appears to be open down-plunge, and near surface to the southwest (Figure 4).

Figure 4 also highlights two separate (interpreted) plunge controls on high-grade gold mineralisation. The plunge of the main mineralisation envelope is approximately 50-60 degrees towards the southwest. Within this mineralised envelope there appears to be a second high-grade shoot control which has a shallow plunge to the east. These mineralised trends remain open and untested down-plunge of the main south-west plunging shoot control. To date, the depth extensions of Isle aux Morts mineralisation have not been tested below 130 vertical metres from surface.

8 ASX announcement 6 May 2020.

9 Significant intercepts for IAM calculated using 0.5 g/t Au cut-off

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Figure 3: Representative cross section through Isle aux Morts mineralisation demonstrating increased grade and/or widths from 2020 significant intercepts in comparison to nearby historic drill holes (cross section location depicted in Figure 4).

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Figure 4: Isle aux Morts long section (section plane oriented approximately 50[o] dip towards the southeast). Drill hole pierce points through the mineralisation are coloured by the sum of Au g.m (grams x metres) for all significant intercepts >0.5g/t Au cutoff.

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Window Glass Hill Granite Area 2020 Drilling (Window Glass Hill and Angus Deposits)

Window Glass Hill ( WGH ) extension drilling in 2020 focused on the area to the south-west of the WGH Mineral Resource area, and the first testing for possible depth extensions to the stacked vein system below the existing Mineral Resource envelope (Figure 5). The WGH Mineral Resource currently stands at 232 Koz Au at 1.6 g/t Au[10] , with all current WGH Mineral Resources located within 150 vertical metres of surface.

Drilling in 2020 successfully delineated material extensions to WGH gold mineralisation, including multiple new mineralised horizons which remain open to the south and west of the WGH deposit, and a new lode at depth beneath the existing higher-grade core of the WGH system, which also remains open at depth (Table 3, Figure 6, Figure 7).

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Figure 5: Window Glass Hill Granite area drilling including Angus Discovery and Window Glass Hill extension drilling. Drill hole collars are coloured by sum of Au g.m intercepts in hole (>0.2 g/t Au cutoff). Large collar markers are 2020 drilling, small collar markers are pre-2020 drilling.

A greenfields exploration targeting exercise conducted in August 2020 resulted in the drilling of the Angus discovery hole approximately one kilometre south-west of the WGH deposit (CRD126: 20 metres at 2.4 g/t Au, incl. 9 metres at 5.0 g/t Au)[11] (Figure 5). Angus is the first new discovery at the Cape Ray Gold Project in 20 years. Follow-up drilling has so far defined a 450 metre by 300 metre mineralisation footprint for Angus that remains open in all directions and at depth (Figure 8).

The targeting exercise identified Angus based on similar coincident geophysical, multi-element pathfinder geochemistry and surface gold anomalies to the WGH deposit. Subsequently, 33 new greenfields exploration targets have been identified across the 120 kilometre strike length of the Cape Ray Gold Project[12] using the same targeting methodology, with 12 high priority targets earmarked for detailed follow-up in 2021.

10 ASX announcement 6 May 2020.

11 ASX announcement 6 October 2020 and 11 November 2020.

12 ASX announcement 29 October 2020

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WGH Extension Drilling

Detailed structural analysis of oriented diamond drill core from 2020 extensional drilling has identified additional mineralised vein sets within the WGH deposit. The main high-grade gold veins are a stacked series of shallowly dipping quartz-sulphide-gold veins with four main veins currently interpreted in the existing Mineral Resource model. An additional high-grade vein has been identified below the current Mineral Resource envelope, with untested potential for the stacked vein system to continue at depth.

There is also a subordinate set of finer sub-vertical to moderately dipping stockwork veins which have the potential to contribute additional gold metal endowment within the current Mineral Resource volume between the main stacked vein array. These generally steeply dipping fine mineralised stockwork veins are locally abundant but have been under-represented in the historic Mineral Resource drilling at WGH (which predominantly comprised vertical drill holes).

Table 3: Significant intercepts from WGH Extension Drilling[3]

HoleID	Significant Intercept Width (metres)	Significant Intercept average Au grade (g/t)	From (metres)	Significant Intercept Sum Au_g.m (grams x metres)
CRD151 15.5 3.3 118.5 51 incl. 7.1 6.9 119.8 48 AND 10.5 2.4 58.5 25 AND 2 6.9 154.1 14 AND 1.1 5.0 77.3 5
CRD168 8 5.5 43 44 AND 2 1.9 15 4
CRD130 1.5 14.0 40.1 21 AND 2 4.8 46 10
WGT002 1 14.7 19 15 AND 21 1.0 92 21 incl. 1 13.2 92 13 AND 1 2.9 97 3 AND 1 4.5 122 5
CRD131 3.6 3.5 9.4 13
CRD170 13 1.0 86 12
WGT001 2 4.2 53.5 8 AND 1 3.4 30 3 AND 1 3.9 63.5 4
CRD150 18 0.9 34 15 AND 13 0.9 110 12
CRD145 22 0.7 39 15
CRD132 5 1.4 93 7

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Figure 6: WGH drill hole collar plot with significant intercepts from extensional drilling to the south-west and below the current WGH Mineral Resource.

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Figure 7: WGH cross section highlighting the intersection of an interpreted new lode at depth as well as broader and/or higher-grade intercepts within the existing Mineral Resource area than anticipated based on more broadly-spaced historic drilling.

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Angus Greenfields Discovery Drilling

Follow-up exploration drilling around the initial discovery hole at Angus (CRD126: 20 metres at 2.4 g/t Au including 9 metres at 5.0 g/t Au) has demonstrated that the Angus mineral system has a footprint of at least 450 x 300 metres and remains open in all directions.

Angus gold mineralisation is hosted by the WGH Granite approximately one kilometre south-west of the WGH deposit (also hosted within the same granite). Both deposits have similar geophysical, multielement geochemistry and alteration signatures, however, mineralisation at Angus appears to be dominantly controlled by the more abundant finer stockwork vein array (with 2-3 mineralised vein orientations at high angles to each other). Angus has limited flat-lying veins which are a hallmark of the WGH deposit. As a result, Angus delivers much wider intercepts of lower grade mineralisation, compared with WGH’s discrete stacked higher-grade veins, although CRD126, CRD174 and CRD184 demonstrate the potential for significant widths of higher-grade mineralisation at Angus (TABLE 4).

To date, only 23 broad-spaced exploration holes have been drilled into the Angus discovery by Matador, presenting a high priority target for follow-up drilling in 2021.

Table 4: Significant intercepts from the Angus discovery (2020)[3]

HoleID	Significant Intercept Width (metres)	Significant Intercept average Au grade (g/t)	From (metres)	Significant Intercept Sum Au_g.m (grams x metres)
CRD126 20 2.4 82 48
CRD174 10 1.4 58 14
CRD171 30 0.7 19 22 incl. 7 2.0 19 14 AND 2 1.4 92 3
CRD184 12 0.4 3 5 AND 6 2.2 43 13 AND 15 0.5 78 7 AND 18 0.5 109 8
CRD172 7 1.1 116 8 AND 11 0.9 98 10
CRD128 35 0.5 34 18 AND 10 0.7 15 7
CRD143 18 0.7 49 13 AND 2 2.5 21 5
CRD182 14 0.7 76 10
CRD141 9 0.9 109 8 AND 17 0.4 136 8
CRD149 3 2.0 48 6
CRD127 2 1.8 30 4
CRD144 2 1.1 136 2
CRD143 18 0.7 49 13 AND 6 0.7 87 4 AND 2 2.5 21 5
CRD183 10 0.6 83 6
CRD139 16 0.4 144 7
CRD140 13.9 0.4 56.1 5

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Figure 8: Spatial distribution of significant intercepts across the Angus discovery area (450 x 300 metres)

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Figure 9: Collar plot showing drill hole orientation (azimuth) contoured interpretation of mineralisation intensity projected to surface and areas requiring priority follow-up in 2021.

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Figure 10: 3D view looking north-northeast through all drilling at Angus (note: 300 metre deep field of view). Two different drill hole orientations have been employed. The majority of holes are drilled at between 50-60 degrees towards the north (the steeper holes in this 3D view) with one fence of holes drilled towards the East. Drill hole collar points are coloured by the Sum Au g.m of all significant intercepts[3] in the hole. Down-hole significant intercepts are represented by their weighted average grade over the interval (g/t Au). Contoured significant intercepts provide an approximate interpretation of the trend of mineralisation. Note the moderately west-dipping trend of higher-grade significant intercepts, and the scarcity of drilling at the eastern and western end of the Angus system.

Reference to Previous ASX Announcements

In relation to the results of the Scoping Study which were announced on 6 May 2020, Matador confirms that all material assumptions underpinning the production target and forecast financial information included in that announcement continue to apply and have not materially changed.

In relation to the Window Glass Hill Mineral Resource estimate and the Isle aux Morts Mineral Resource estimate announced on 6 May 2020, the Company confirms that all material assumptions and technical parameters underpinning the estimates in that announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

In relation to the exploration results included in this announcement, the dates of which are referenced, the Company confirms that it is not aware of any new information or data that materially affects the information included in those announcements.

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About the Company

Matador Mining Limited (ASX: MZZ) is a gold exploration company with tenure covering 120 kilometres of continuous strike along the highly prospective, yet largely under-explored Cape Ray Shear in Newfoundland, Canada. The Company released a Scoping Study which outlined an initial potential seven year mine life, with a forecast strong IRR (51% post Tax), rapid payback (1.75 year) and LOM AISC of US$776/oz Au (ASX announcement 6[th] May 2020). The Company has recently completed a 10,000 metre drill program targeting brownfield expansion and greenfields exploration.

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This announcement has been authorised for release by the Company’s Board of Directors.

To learn more about the Company, please visit www.matadormining.com.au , or contact:

Ian Murray – Executive Chairman +61 8 6117 0478 – email: info@matadormining.com.au Adam Kiley – Corporate Development +61 8 6117 0478 – email: info@matadormining.com.au

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