Matador Mining : 31 March 2022 Quarterly Activities & Cashflow Report

ASX Announcement

29 April 2022 | ASX: MZZ; OTCQX: MZZMF; FSE: MA3

Quarterly Activities Report

Quarter Ended 31 March 2022

Highlights

Brownfield Exploration

The final 2021 Window Glass Hill ("WGH") Mineral Resource infill drill hole assay results were received. Significant results reported1 include:

• • CRD318:

  • - 14 metres at 4.5 g/t Au from 88 metres (incl. 1 metre at 27.4 g/t Au from 90 metres and 1 metre at 17 g/t Au from 91 metres);

  • - 15 metres at 2.9 g/t Au from 10 metres (incl. 1 metre at 24.1 g/t Au from 18 metres); and

  • - 1 metre at 3.5 g/t Au from 72 metres.

• • CRD322:

  - 23 metres at 2.3 g/t Au from 22 metres (incl. 1 metre at 16.6 g/t Au from 38 metres); and - 7 metres at 0.9 g/t Au from 78 metres (incl. 1 metre at 2.1 g/t Au from 84 metres).

• • Gold mineralisation remains open to the south and south-west of the WGH Infill high-grade mineralisation intersected in CRD322.

Greenfields Exploration

CRD313 demonstrates near-surface gold potential of the previously undrilled Window Glass Hill Granite "WGHG" Heart Shaped Pond ("HSP") target adjacent to the north-west of the existing WGH Mineral Resource.

• • CRD313:

  - 0.9 metres at 13.2 g/t Au from 9.4 metres;

Interpretation of detailed magnetics, lithogeochemistry and historic data has doubled the known strike length of the highly prospective WGHG Intrusion to over six kilometres (Figure 2).

Winter Drilling

Matador commenced its inaugural winter season diamond drilling program, with work focusing on a corridor encompassing the PW East and Stag Hill prospects along the Cape Ray Shear Zone, which was estimated to comprise approximately 30 diamond drill holes for between 3,000 - 4,500 metres. The program was completed in mid-April 2022, with 5,924 metres drilled, due to the longer winter season and more efficient drilling than anticipated.

1 ASX Announcement 18 March 2022

Matador Mining Limited	Level 20, 140 St George's Terrace	www.matadormining.com.au
ABN 45 612 912 393	Perth WA 6000	[e-mail]
ASX: MZZ; OTCQX: MZZMF; FSE: MA3	T: [phone]

Figure 1: Location map of Matador tenements in south-west Newfoundland

Matador Mining Limited (ASX: MZZ; OTCQX: MZZMF; FSE: MA3) ("Matador" or the "Company") is pleased to provide its Quarterly Activities Report for the Quarter ended 31 March 2022. All dollar amounts are Australian dollars unless stated otherwise.

Matador is exploring and developing its 100% owned Cape Ray Gold Project ("Cape Ray Gold Project" or the "Project") in Newfoundland, Canada, located across 120 kilometres of continuous strike in a proven, yet under-explored multi-million ounce regional-scale gold structure.

Greenfields Exploration

WGHG Mineral System

Initial drill results from the previously untested WGHG-HSP area, north-west of the WGH Mineral Resource high-grade zone, returned a significant intercept of 0.9 metre at 13.2 g/t Au from 9.4 metres (CRD313). CRD313 redrilled (twinned) another hole (CRD313A) that had to be abandoned due to drilling conditions, however returned 4 metres at 3.0 g/t Au from 9 metres (incl. 2 metres at 3.9 g/t Au and 2 metres at 2.2 g/t Au) in two 2-metre sample intervals affected by core loss. Several other holes from the WGHG-HSP drilling returned significant gold intercepts >0.5 g/t Au cutoff.

During the quarter the Company also completed the interpretation of detailed magnetics, lithogeochemistry and historic data in the area, which doubled the known strike length of the highly prospective WGHG Intrusion to over six kilometres (Figure 2), immediately north of the 526koz Au Central Zone Mineral Resources (which are hosted in sheared sediments).

Less than 15% of the six-kilometre strike length of the WGHG has been drill tested near surface, with most drilling to date limited to less than 120 vertical metres below surface, leaving discovery potential at depth.

Power auger sampling through till cover, and abundant surface rock chips with >1g/t Au in areas of outcrop, demonstrate the potential for vein-hosted gold mineralisation across the highly altered and quartz-veined WGHG. This is similar to Marathon Gold Corporation's (TSXV: MOZ) 4.8Moz Au Valentine Lake gold mineral system.

The WGHG Margin discovery2, achieved by using magnetics and geochemistry to "see through" the till cover, highlights the potential for multiple structurally-controlled gold mineralisation shoots across the large but under-explored WGHG.

To date, there has been no drilling targeting shear-hosted mineralisation in sediments adjacent to the WGHG, which is considered an important mineralised zone in similar granite-hosted gold deposits (such as Red 5 Limited's (ASX: RED) 6.1Moz King of the Hills Deposit in Western Australia).

Figure 2: WGHG footprint extended to >6 kilometres of strike length north of Central Zone

Brownfields Exploration

The WGH Mineral Resource is in the south-western portion of the six-kilometre-long granite-hosted WGHG Mineral System.

WGH Mineral Resource Infill Drilling

The WGH Mineral Resource (currently 232,000 oz Au at 1.6 g/t Au) is one of the cornerstones of the Cape Ray Gold Project. During the March 2022 quarter, the final 2021 WGH infill drill hole assay results were received (Figure 3).

Infill drilling is designed to contribute to increased future Mineral Resource estimation confidence.

2 ASX Announcement 26 August 2021

Most of the new infill drill holes reported are on the margins of the higher-grade core of the WGH deposit in areas of discontinuous gold mineralisation. Better mineralisation appears to be directly related to the intensity of veining, which tends to decrease laterally away from the higher-grade core of the WGH deposit.

Figure 3: New WGH Mineral Resource infill drilling results

CRD318 intersected two broad mineralised corridors, which contained internal high grade gold intervals (15 metres at 2.9 g/t Au from 10 metres including 1 metre at 24.1 g/t Au, and 14 metres at 4.5 g/t Au from 88 metres including consecutive 1 metre at 27.4 g/t Au and 1 metre at 17 g/t Au intervals) (Figures 3 and 4).

These results reinforce Matador's confidence in the consistency of an interpreted higher-grade plunging shoot at the core of the WGH Mineral Resource associated with a higher frequency of mineralised veins.

Figure 4: Cross section A-A' containing WGH infill hole CRD318

CRD322 is particularly encouraging as this hole was drilled to the south and on the periphery of this same high-grade shoot and delivered a 23-metre intercept grading 2.3 g/t Au (Figure 5). Drilling south and west of CRD322 remains broadly spaced (Figure 3).