MEGADO MINERALS LTD — Capital/Financing Update 2021

Apr 21, 2021

UPDATED: VISIBLE MINERALISATION INTERSECTED

AT THE CHAKATA GOLD PROJECT

HIGHLIGHTS

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• Visual mineralisation intersected, including copper (chalcopyrite, bornite) and quartz-tourmaline veining

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Diamond drilling program at Chakata has been doubled to 3,000m

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• Additional drill rig expected on site in early May

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• 220m of 2,400m trenching completed at newly identified Dragon Target with visible gold evidenced in first trench

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• New Elle Target in west of tenement identified, with first pass trenching and rock

sampling completed

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First drill and rock chip samples from Chakata have arrived for assay in Perth

Ethiopian-focused gold explorer Megado Gold (ASX:MEG) ( Megado or the Company ) provides further information with respect to the update on progress across the Company’s Chakata Gold Project, located in the Adola Gold Belt in southern Ethiopia.

Maiden Drill Program: Chakata Gold Project

Drilling and trenching continue at the Chakata Gold Project (Figure 1). Holes completed as part of the initial drilling program (Figure 2) have intercepted zones of several-metre-wide quartz veins with visible tourmaline-pyrite and disseminated chalcopyrite mineralisation visually estimated up to 3% (Figures 3 & 4; Appendices 1 & 2). The Company is encouraged by this as gold rich zones at the nearby Lega Dembi and Sakaro gold deposits (>3Moz) display a similar assemblage and mineralisation. Drilling will continue at the Contact Target (CT) and subsequently the GT Target (GT) (historical trench result of 25m @ 2.57g/t Au ). Further drilling at newly identified targets is anticipated shortly thereafter (refer to announcement 12 November 2020). The first samples from the work program at Chakata, including trenching and drilling, have now arrived in Perth for analysis as prepared pulps ready for final assaying.

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Megado Gold Ltd

Australian Registered Address

Directors

Issued Capital

T E W

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Figure 1 – Megado highly active at the Chakata Gold Project: initial drill program on the southern portion of the Chakata tenement; trenching in the west of the tenement; and, active fieldwork identifying new areas in the north and west of the tenement. Green dots active Megado trenching, CKTR001 &2 in the southwest, and CKTR003 in the northeast – see Appendix 1.

Megado Gold CEO and Managing Director, Michael Gumbley, commented:

“Our ambitious exploration program at Chakata is progressing briskly. We are seeing encouraging signs with visual mineralisation observed in drill core giving us confidence to double the meterage of the first phase drilling program. This is interesting in the context that Chakata is only five kilometres south along strike from the country’s largest producing gold mines, Lega Dembi and Sakaro.

Simultaneous trenching at Chakata’s Dragon Target has produced mineralised quartz and rocks with visible gold. Moreover, a new target in the west of the tenement has already been subjected to trenching and rock sampling. The Company is extremely pleased with the initial drilling activity and visual logging as it starts to establish a foundation for our exploration thesis that there is considerable discovery potential across our hand-picked projects in southern and western Ethiopia.”

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Figure 2 - Megado’s current drilling activities focused in the south-east corner, at the Contact and GT Targets, Chakata Gold Project – see Appendix 1 for more details.

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Figure 3 – Detail from CKDD003 (36m) exhibiting silicified metagranodiorite with up to 3% visually logged disseminated chalcopyrite

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Figure 4 – Detail from CKDD002 at 37m showing tourmaline-pyrite mineralisation within quartz vein zone

Dragon Target Update

An extensive trenching campaign is underway at Chakata’s Dragon Target (Figure 5). The first trench has revealed highly mineralised quartz veins and instances of rocks with visible gold (Figure 6). Nine trenches for a total of 2,400m over 1km strike length have been planned with the first trench already completed at 220m. As announced on 23 March 2021, field observations note sheared and highly altered metagranodiorite with amphibolite and mica schists hosting 20-30m wide shear zone related quartz veins with tourmaline-pyrite and disseminated chalcopyrite-(+/-bornite,+/-azurite)-galena mineralisation visually logged up to 3% (Figures 7 & 8). The Megado team’s expectation is that the Dragon Target sits on a structure identical to that which hosts the high-grade Sakaro deposit.

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Figure 5 – Trenching begins at the Dragon Target

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Figure 6 – Mineralised quartz from Dragon Target’s first trench, CKTR003

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Figure 7 – Visible gold from Dragon Target’s first trench, CKTR003

Figure 8 – Close-up of vein from CKTR003 – tourmaline and chalcopyrite, bornite, azurite bearing quartz vein with relicts of host rock

New Target: Elle

The Megado field team continues its extensive canvassing of the Chakata tenement. Two trenches totalling 221m have been excavated at Elle and 136 rock chips have been sampled and are now en route to Perth for testing.

Related ASX Announcements

20210323	Megado Accelerates Exploration Activities at Chakata Gold Project
20210217	Drilling Commences at the Chakata Gold Project
20201217	Quartz Veining with Visible Sulphides Intersected at Babicho
20201201	Maiden Drilling Program Underway at Babicho Gold Project
20201112	High-Grade Gold Indicated at Chakata Gold Project Ethiopia

-ENDS-

Authorised for release by: Michael Gumbley, MD and CEO.

For further information on the Company and our projects, please visit: www.megadogold.com

Contact:

Michael Gumbley Mark Flynn Managing Director and CEO Investor Relations and Media +61 8 6141 3260 +61 416 068 733 mgumbley@megadogold.com mflynn@megadogold.com

About Megado Gold

Megado Gold Ltd is an ASX listed company with five high-quality gold exploration assets covering 511km[2] and one licence application covering 227km[2] in southern and western Ethiopia with the geological potential to host gold deposits of significant scale.

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Ethiopia contains a world-class greenstone geological terrane and hosts part of the prolific Arabian-Nubian Shield (ANS). The Megado Belt in southern Ethiopia is hosted within the broader Adola Belt, a granitegreenstone terrane that is part of the ANS, and is characterised by a dominant N-S trending suite of metamorphosed rocks hosting significant occurrences of gold mineralisation, including Ethiopia’s only modern gold mines, Lega Dembi and Sakaro (+3.0Moz Au).

Megado has premium land position immediately along strike to the north and south of the Lega Dembi and Sakaro deposits covering the same fertile greenstone host rocks and structural setting, in addition to an asset located proximal to Ethiopia’s next gold mine, the +1.5Moz Tulu Kapi deposit (AIM-listed KEFI Minerals).

Megado has assembled a strong technical team with specific Ethiopian and gold exploration experience, led

by Dr Chris Bowden, Executive Director, who has spent 5 years living in Ethiopia as General Manager for ASCOM Precious Metals Mining, where he was responsible for the discovery and subsequent drill out of the initial 1.5Moz Dish Mountain Gold deposit in western Ethiopia, a virgin greenfields discovery.

Minimal modern exploration has been conducted in Ethiopia, in comparison to similar greenstone belts in West Africa, Canada and Western Australia where modern techniques have successfully delineated numerous gold deposits.

Forward Looking Statements

This announcement contains ‘forward-looking information’ that is based on the Company’s expectations, estimates and projections as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to the Company’s business strategy, plans, development, objectives, performance, outlook, growth, cash flow, projections, targets and expectations, mineral reserves and resources, results of exploration and related expenses. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as ‘outlook’, ‘anticipate’, ‘project’, ‘target’, ‘potential’, ‘likely’, ‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘may’, ‘would’, ‘could’, ‘should’, ‘scheduled’, ‘will’, ‘plan’, ‘forecast’, ‘evolve’ and similar expressions. Persons reading this announcement are cautioned that such statements are only predictions, and that the Company’s actual future results or performance may be materially different. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information.

Visual Estimates

Visual estimates of sulphide abundance in this release are based on field geologists’ observations and estimates. Visual estimates should never be considered a proxy or substitute for laboratory analyses where metal concentrations or grades are the factor of principle economic interest; nor do visual estimates provide information regarding impurities or possible deleterious physical properties. More substantive and reliable data in the form of laboratory analyses will be available once final sample analysis has been completed.

Competent Person Statement

Information in this “ASX Announcement” relating to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves has been compiled by Dr Chris Bowden who is a Fellow and Chartered Professional of the Australian Institute of Mining and Metallurgy and is an Executive Director of Megado Gold Ltd.

He has sufficient experience that is relevant to the types of deposits being explored for and qualifies as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code 2012 Edition). Dr Bowden has consented to the release of the announcement.

APPENDIX 1: DRILL AND TRENCH COLLARS

Trenching:

HoleID	West End	West End	West End	Length	Azim_Mag	Dip
	Easting	Northing	RL
CKTR001	480786	617870	1657	141	90	0
CKTR002	480718	617780	1659	80	90	0
CKTR003	484781	623577	1547	In Progress	90	0

Drilling:

HoleID	**Easting **	Northing	RL	Depth	**Azim_Mag **	Dip
CKDD001	483857	616089	1559	156.6	102	-50
CKDD002	483857	616089	1559	147	102	-65
CKDD003	483797	615867	1527	168	102	-65
CKDD004	483797	615867	1527	213.5	82	-50
CKDD005	483905	616285	1585	163	102	-50
CKDD006	483905	616285	1585	In Progress	102	-65

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	Commentary
Sampling techniques	Nature and quality of sampling (e.g., 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.	The nature of the samples in the body of this ASX Release relate to rock, trench and drill core samples from the Chakata Project, Ethiopia, within tenements held by Megado Gold Ltd. Trench sampling was undertaken along excavated trenches dug perpendicular to the inferred strike of the structures, and sampled. Trenches were hand cleaned, mapped, and sample intervals were marked. A 10 cm channel was cut in the floor of the trench with a hammer and chisel to collect a continuous sample over the sample intervals. Drill core sampling was predominantly from HQ half core, otherwise from PQ half core. Samples were collected from the core trays after they had been transported to the camp at Adola, marked up, recovery recorded and core cut in half by a diamond saw. Sample intervals and sites were chosen selectively to reflect geological features relevant to the target style of mineralisation.
	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	Measures taken to ensure sample representivity include controls on sample quality and sample location, including for drilling, collar position; downhole survey; and, downhole depths. These are validated by GPS, compass; wireline DH survey tools; and, regular counting of drill rods downhole to verify reported core block depths. Core quality is checked by the geologist to ensure removal from core tube to core tray is done correctly, that drill core has not been re-drilled, and other checks, including core recovery measurements, to ensure drill core is representative of in-situ material drilled. Sample intervals are reviewed and selectively cut lengthwise (downhole) to represent an equal half of visually identified mineralisation. Otherwise, the core is cut near and along the downhole orientation line, and systematically sample the right-hand side (looking downhole), preserving the downhole orientation line on the left-hand side of core. Coarse and pulp duplicate samples are taken, as well as blanks and CRM samples inserted into analysis batches, to test for accuracy and precision in sample representivity.
	Aspects of the determination of mineralisation that are Material to the Public Report.	Assay results are still pending.
	In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverized 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 (e.g., submarine nodules) may warrant disclosure of detailed information.	All samples discussed in this ASX Release are derived from ‘industry standard’: trenching, wireline diamond core drilling (HQ or PQ diameter drill core), sampling methods, laboratory preparation and element analysis, QAQC, and data review. Core samples were cut in half lengthwise (downhole) with a core saw. Sample downhole intervals lengths ranged from 0.5m to 2.15m. Individual sample weights were in the range of 2kg maximum, to 3.5kg minimum, and an average of 3kg.

Criteria	JORC Code explanation	Commentary
		A suite of QAQC samples were used to test for accuracy, precision, and contamination. All samples were prepared by ALS and analysed by ALS laboratories for gold and a multi- element suite (including silver and base metals). QAQC and laboratory processes are discussed in further detail below.
Drilling techniques	Drill type (e.g. core, reverse circulation, open- hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. 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.).	Drilling was done by local contractor Orezone, utilising a customized track-mounted and purpose-built wireline diamond core drill rig. Drill holes were drilled from surface as angle holes (ranging from -55deg to -60deg) using inner/outer tube HQ/PQ diameter diamond core drill string. Drilling fluids were used to maximise cutting penetration, improve water circulation Drill core was oriented by downhole wireline ezimarker method every drill run (typically 3m), back-checked for consistency between orientation marks across multiple runs. The drilling contractor (Orezone) conducted downhole wireline survey of the drill holes every 20m by a Reflex Ezitrac precision instrument. The drilling program was supervised by experienced Megado Gold personnel.
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed.	Drill core recovery was calculated per run by measuring core length recovered against drill depth as reported on core blocks. Drilling depths were cross-checked by visually verifying the length and number of drill rods downhole, for example during bit changes and rods pulled out. Analysis of the measured core recovery data show recoveries for the drilling program averaged 95%.
	Measures taken to maximise sample recovery and ensure representative nature of the samples.	The ground conditions encountered to date have return high degrees of sample returns with good RQD. Half-core samples were double bagged (plastic inner with ticket book tag, calico outer), with both sample bags labeled with sample number, weighed and recorded in a hard-copy sample register and digital database.
	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.	Assay results are still pending. Once received, a plot of sample recovery to gold grade will be done to determine if there is an observable relationship, and therefore potential sample bias.
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.	Trenches were geologically logged using the company’s predefined logging codes for lithological, mineralogical, and physical characteristics. Drill core samples initially require mark-up of core boxes and RQD logging, structural logging, and core photography done. Drill core samples have been geologically logged. Cross section interpretations as well as geological logs were done to a level suitable to inform the selective sampling of this early-stage exploration drilling. No Mineral Resource estimation, mining studies or metallurgical studies have been conducted at this stage.
	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.	Geological logging was qualitative in nature. RQD and structural logging were quantitative in nature. Core tray photography has been done on all intervals of core, using a Canon DSLR camera, typically at 4Mb/each resolution.

Criteria	JORC Code explanation	Commentary
	The total length and percentage of the relevant intersections logged.	All trenches and drillholes have been logged, representing the total length for 100%.
Sub-sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken.	Drill core samples from PQ and HQ core were cut lengthwise (downhole) using a industry standard core saw and blades by trained personnel following cut line marked by the geologist.
	If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.	Trench sample intervals were marked by the geologist mapping the trenches with spray paint. Aluminum tags marking the sample number were placed to allow for any future follow up. All material from the channel for the sample interval was collected into a sample bag that was uniquely numbered.
	For all sample types, the nature, quality and appropriateness of the sample preparation technique.	All trench and drill core samples were sent to ALS laboratory in Addis Ababa, Ethiopia for sample preparation, and then ALS Perth for chemical analysis. ALS is an ISO/IEC 17025:2005 certified laboratory.
	Quality control procedures adopted for all sub- sampling stages to maximise representivity of samples.	An increased crush and grind preparation (higher % pass rate, increased split volume of material) has been adopted to minimize potential nugget affect of gold, and thus maximise representivity of samples. The crushing preparation code was CRU-31 (Prep 31Y) (Crush to 70% less than 2mm, riffle split off 1kg, pulverize split to better than 85% passing 75 microns. The pulverizing code used was PUL-31 (Prep 31) (Crush to 70% less than 2mm, riffle split off 1kg, pulverize split to better than 85% passing 75 microns Coarse and pulp rejects are retained for each sample. Assay results are still pending. Once assay results have been returned, an analysis of the reject tails and size pass rates for both the crush and grind circuits will indicate if the coarse and pulp split samples are considered representative of the primary sample.
	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.	Assay results are still pending. Once assay results have been returned, an analysis of course and pulp duplicate results will be done to determine if they are within acceptable variance thresholds (nominally 10%) and thus the sub- sampling techniques and sample preparation will then be considered representative and appropriate.
	Whether sample sizes are appropriate to the grain size of the material being sampled.	Sample size is considered appropriate for the target style of mineralisation, the requirements for laboratory sample preparation and analyses, and consideration reporting is for early-stage Exploration Results.
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.	Pulp samples (250gm) prepared in ALS Ethiopia are sent through registered airfreight (e.g., DHL) to ALS laboratory in Perth for Au and multielement analysis. ALS is an ISO/IEC 17025:2005 and ISO9001:2015 certified laboratory. The analyses code was Au-AA25-Fire Assay with ME-MS61 (multi-acid digestion with ICP-MS finish). The nature of the laboratory assay sampling techniques are considered ‘industry standard’ and appropriate.

Criteria	JORC Code explanation	Commentary
	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.	Not applicable - no data from geophysical tools were used to determine analytical results in this ASX Release.
	Nature of quality control procedures adopted (e.g., standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	QA/QC procedures implemented include: one coarse duplicate, one laboratory-prepared pulp duplicate, one Certified Reference Material (CRM) standard, and one blank for every 16 regular samples, making a batch of 20. Sample dispatched were done aggregating these 20 sample batches up to 60 samples. 60 samples are run in the same fire assay, thus 3 lots of each QAQC samples were exposed in every fire assay run of 60 samples. Given the nature of the rock sampling, internal lab standards were considered appropriate for reconnaissance rock samples.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel.	Assay results are still pending. Once assay data is received, it will be verified by the database manager responsible for importing laboratory results into the database. Logging data and core sample intervals have been compiled by the senior geologists directly involved in the drilling program, under guidance of the Exploration Manager. No Significant Intersections have been released.
	The use of twinned holes.	No twinned holes have been completed as part of this ASX Release, as the program is at an early stage.
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	Primary data is recorded preferentially into proprietary data capture software or otherwise into digital spreadsheets or hand-written documents. All original hardcopy logs and sample reference sheets are kept for reference. Digital data entry is validated through the application of database validation rules and is also visually verified by the responsible geologist through GIS and other software. Any failures are sent back to the responsible geologist for correction and re-submission. Data is stored in an SQL database managed through proprietary software. The database is backed up as part of the Company server backup protocol.
	Discuss any adjustment to assay data.	Assay data is imported into the Company database from original lab files via automated queries, thus minimising error in tagging samples with results. No adjustments are made to the assay data.
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.	Preliminary collar XYZ locations are determined with a hand held Garmin GPS, using an averaging waypoint method (3 minutes) producing levels of accuracy +/- 3m. At the end of a drilling campaign (or as required), collar XYZ locations are subsequently picked up by local surveyors using GPS units to sub cm-scale XYZ accuracy. Both location datasets are preserved in the database. The drilling contractor (Orezone) conducted downhole surveys every 20m (producing dip and azimuth data) using a Reflex Ezitrac Orientationprecision instrumentation.
	Specification of the grid system used.	The grid system used is Universal Transverse Mercator (Adindan),Zone 37 Northern Hemisphere.
	Quality and adequacy of topographic control.	Topographic control to date has used GPS data,which is

Criteria	JORC Code explanation	Commentary
		adequate consideringthe small relief(100m)in the area
Data spacing and distribution	Data spacing for reporting of Exploration Results.	Trench spacing is variable, with closer spacing on zones where surface sampling has given encouraging results (30- 40m along strike) and some scout trenches testing conceptual targets hundreds of meters from the mapped veins. Drill holes have been completed up to 220m apart (see plan map in main body of this release). Drill core sample intervals within each drillhole range from 0.5m to 1.0m, selectively sampled to end of hole depths. Drill collars vary within each pad in azimuth and dip targeting down dip mineralisation of surface mineralisation. Sampling intervals were based on geological boundary and alteration/veiningwherepossible.
	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.	No Mineral Resource or Ore Reserve have been estimated in this ASX Release.
	Whether sample compositing has been applied.	No sample compositinghas been 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.	Orientation of sampling is deemed to be appropriate to maximise boundaries and structural trends. The sampling undertaken targeted all rock types present. Structural recordings have been integrated into the conceptual mode and database.
	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.	Trench and drilling orientation is at a high enough angle to lithological boundaries and structural trends to indicate the sampling is minimised and unbiased by the direction of trenching/drilling.
Sample security	The measures taken to ensure sample security.	From the point of sample generation to laboratory, samples (and reject returns) are under the full security and Chain of Custody of the Company. This is done by the following procedures: Drill core produced at the rig is inspected regularly (multiple times daily) and collected by the Company at end of dayshift. Core and samples are securely locked overnight in an on-site secure facility. Post on-site logging and processing, core is transported to the Company’s long-term core storage facility under the direct supervision of a Company representative. Core is securely locked at the long- term storage. Core is further processed for sampling by Company representatives under guidance of the Exploration Manager. Bagged samples are secured by tags and delivered by a Company representative to a courier service to deliver to the sample preparation laboratory. The preparation laboratory sends pulp samples directly to the assay laboratory for analysis via door-to-door courier service. All rejects are returned under courier service and stored in the Company’s secure lock-uplong-term core storage facility.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	No audits or reviews of sampling techniques and data have been undertaken at this time.

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 theprecedingsection also applyto this section.)
Criteria	JORC Code explanation	Commentary
Mineral tenement and	Type, reference name/number, location and ownership including agreements or material	Information regarding tenure is included in the company’s September 2020quarterlyactivities report released to the

Criteria	JORC Code explanation		Commentary
land tenure status	issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.		ASX on 20 October 2020.
	The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.		The Concessions are believed to be in good standing with the governing authority and there is no known impediment to operating in the area.
Exploration done by other parties	Acknowledgment and appraisal of exploration by other parties.		Limited and historical exploration works have been done on the area, which included regional soil geochemistry, ground geophysics, geological mapping and few rockchip sampling by Canyon Resources (1995-99). Further detailed mapping, rock chip sampling and trenching, followed by 8 known diamond drillholes byMidroc(2004-11).
Geology	Deposit type, geological setting and style of mineralisation.		The target area is underlain by rocks of metavolcanic sediments that include quartzite, graphitic quartzite, metavolcanics, chlorite schist, amphibolites, amphibole- biotite schist, and metagranodiorite. The rock units generally strike north-south dipping subvertical towards west. The quartz veins occur as fracture filling in quartzite/graphitic quartzite and metagranodiorite, and concordant to the foliation in others. Gold mineralisation is interpreted to be hosted within orogenic and mesothermal quartz veins/stockworks and their selvedges.
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: • easting and northing of the drill hole collar • elevation or RL (Reduced Level – elevation above sea level in meters) of the drill hole collar • dip and azimuth of the hole • down hole length and interception depth • hole length.		Trenching:
			HoleID	West End					Length	Azim_Mag	Dip
				Easting		Northing	RL
			CKTR001	480786		617870	1657		141	90	0
			CKTR002	480718		617780	1659		80	90	0
			CKTR003	484781		623577	1547		In Progress	90	0
			Drilling:
			HoleID		**Easting **	Northing	RL	Depth		**Azim_Mag **	Dip
			CKDD001		483857	616089	1559	156.6		102	-50
			CKDD002		483857	616089	1559	147		102	-65
			CKDD003		483797	615867	1527	168		102	-65
			CKDD004		483797	615867	1527	213.5		82	-50
			CKDD005		483905	616285	1585	163		102	-50
			CKDD006		483905	616285	1585	In Progress		102	-65
	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.		No sample assay results have been provided as final assay results are still pending.
Data aggregation methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g., cutting of high grades) and cut-off grades are usually Material and should be stated.		Assay results are still pending. Once received, weighted average sample assay intercepts will be calculated from individual sample interval downhole widths and related assay results. The weighted average intercepts will be calculated by multiplying the assay of each drill sample by the length of each sample, adding those products and dividing the product sum by the entire downhole length of the mineralised interval.
	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.		Assay results are still pending.
	The assumptions usedfor any reporting of metal		No metal equivalent values have been reported in this ASX

	Criteria	JORC Code explanation	Commentary
		equivalent values should be clearly stated.	Release.
	Relationship	These relationships are particularly important in	The results reported in this announcement are considered to
	between	the reporting of Exploration Results.	be of an earlystage in the exploration of theproject.
	mineralisation	If the geometry of the mineralisation with	Mineralisation geometry is not accurately known as the
	widths and	respect to the drill hole angle is known, its nature	exact orientation and extend of the known mineralised are
	intercept	should be reported.	notyet determined.
	lengths	If it is not known and only the down hole lengths	All drillhole depths and sample intervals are reported as
		are reported, there should be a clear statement	downhole measurements, as also noted in the body of this
		to this effect (e.g. ‘down hole length, true width	ASX Release. More drilling and analysis of structural data is
		not known’).	required to more accurately determine true widths of
			mineralisation from downhole widths.
	Diagrams	Appropriate maps and sections (with scales) and	Appropriate maps, sections, and tables have been included
		tabulations of intercepts should be included for	in this ASX Release.
		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.
	Balanced	Where comprehensive reporting of all	Assay results are still pending.
	reporting	Exploration Results is not practicable,	Visual Estimates: visual estimates of sulphide abundance in
		representative reporting of both low and high	this release are based on field geologists observations and
		grades and/or widths should be practiced to	estimates. Visual estimates should never be considered a
		avoid misleading reporting of Exploration	proxy or substitute for laboratory analyses where metal
		Results.	concentrations or grades are the factor of principle
			economic interest; nor do visual estimates provide
			information regarding impurities or deleterious physical
			properties. More substantive and reliable data in the form
			of laboratory analyses will be available once final sample
			analysis has been completed.
	Other	Other exploration data, if meaningful and	To the best of our knowledge, no meaningful and material
	substantive	material, should be reported including (but not	exploration data have been omitted from this ASX Release.
	exploration	limited to): geological observations; geophysical
	data	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.
	Further work	The nature and scale of planned further work	Megado Gold is reviewing the data to determine the best
		(e.g., tests for lateral extensions or depth	way to advance the projects and will notify such plans once
		_extensions or large-scale step-out drilling). _	confirmed.
		Diagrams clearly highlighting the areas of	Assay results are still pending. Once results have been
		possible extensions, including the main	returned, Megado Gold will review the data and determine
		geological interpretations and future drilling	the best way to advance the projects and will notify such
		areas, provided this information is not	plans once confirmed.
		commercially sensitive.