Medallion Metals : Outstanding Drilling Results at Gem

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10 January 2022

ASX:MM8

Outstanding Drilling Results at Gem

• Outstanding new extensional drill results at the Gem deposit (formerly Kaolin)
• Drilling extends a broad zone of mineralisation with some of the widest intersections recorded to date and with strong continuity to surrounding drilling
• Highlights include;

1. 11m @ 10.2 g/t Au, 0.03 % Cu, 0.5 g/t Ag from 36m (RC21KP1056) including
2. • 3m @ 35.9 g/t Au, 0.15 % Cu, 3.6 g/t Ag from 36m

1. 24m @ 3.8 g/t Au, 0.01 % Cu, 0.3 g/t Ag from 127m (RC21KP1056) including

• 5m @ 10.7 g/t Au, 0.03 % Cu, 0.4 g/t Ag from 139m

1. 19m @ 1.6 g/t Au, 0.1 % Cu, 1.0 g/t Ag from 157m (RC21KP1056) o 8m @ 4.0 g/t Au, 0.09 % Cu, 0.9 g/t Ag from 134m (RC21KP1047) o 11m @ 1.2 g/t Au, 0.04 % Cu, 0.5 g/t Ag from 168m (RC21KP1047)
   o 21m @ 1.9 g/t Au, 0.05 % Cu, 0.3 g/t Ag from 128m (RC21KP1055) including
2. • 3m @ 5.4 g/t Au, 0.12 % Cu, 0.4 g/t Ag from 142m

• 1. 8m @ 2.8 g/t Au, 0.3 % Cu, 1.0 g/t Ag from 166m (RC21KP1055) including
  2. • 1m @ 15.6 g/t Au, 1.2 % Cu, 3.3 g/t Ag from 170m
• Mineralisation remains open down-dip to the south and down-plunge to the southwest
• Significant down hole electromagnetic (DHEM) anomalism down-dip from reported drilling supports mineralisation being open at the western end of Gem
• 2022 drill programme has commenced, targeting of Gem extensions to be prioritised
• Mineral Resource Estimate (MRE) update targeted in the March quarter with approximately 30,000m of new drilling to be incorporated in the upgrade

Managing Director, Paul Bennett, commented:

"This is a great start to 2022, which will be a defining year for Medallion. These results continue to demonstrate the continuity of broad zones of mineralisation at the western end of Gem at shallow depths. The combination of grade and width demonstrate the potential for this area to deliver material additions to the existing 674koz gold resource at Kundip. From what we are observing in the drilling and geophysics, the trend appears open and therefore Gem is a high priority target as we start the year."

Medallion Metals Limited

S1/11 Ventnor Ave, West Perth WA 6005

www.medallionmetals.com.au

ABN 89 609 225 023

Medallion Metals Limited

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Overview

Medallion Metals Limited (ASX:MM8, the "Company" or "Medallion") is pleased to report additional results from drilling at the Gem deposit (formerly Kaolin). Gem is part of the Kundip Mining Centre (KMC) which hosts the Company's current JORC 2012 MRE of 674,000 oz1. The Gem prospect is located at the northern end of KMC within the greater Ravensthorpe Gold Project (RGP) (Figure 1).

Drilling resumed at KMC in early January 2022. Medallion intends to target the KMC deposits in the coming months, in conjunction with the regional programme which includes follow up drilling at Meridian and Ariel. A global MRE update is expected to be announced in the March quarter of 2022.

Figure 1: Location of Ravensthorpe Gold Project showing Gem deposit location within the Kundip Mining Centre

Hillsborough drilling

The Hillsborough workings are situated at the western end of the Gem deposit (Figure 2) where an extensive line of historical shafts can be observed. Mineralisation at this end of Gem is characterised by en-echelon pyrite- chalcopyrite-quartz lodes dipping to the south at ~60° and plunging to the southwest. Ongoing drilling along strike and beneath the Hillsborough workings is being undertaken with the objective of improving confidence in, as well as extending the known resources at Gem. The 2020 Feasibility Study (FS)2 demonstrated a substantial pit would optimise at the western end of Gem (Figure 4). The Company views potential strike and depth extensions of the deposit in this area as a compelling opportunity to add high margin ounces to the mine plan.

1. Total Mineral Resources of 8.8 Mt @ 2.4 g/t Au (7.0 Mt @ 2.3 g/t Au Indicated and 1.8 Mt @ 2.6 g/t Au Inferred), Probable Ore Reserves of 4.1Mt @ 2.1 g/t Au. Refer to the Company's Prospectus announced on the ASX on 18 March 2021 for further details regarding the MRE, Ore Reserves and Competent Person's Statement.
2. Refer to the Company's Prospectus announced on the ASX on 18 March 2021 for further details regarding the FS.

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Figure 2: Plan view of Gem showing reported drillhole collar positions with FS Gem open pit outline.

Figure 3: Long section of the Gem deposit looking north with drill intercepts highlighted in gram x metres (greater than 0.5g/t cut-off) with reported drill hole intercepts annotated in yellow.

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Figure 4: Cross section at Hillsborough looking east with drill intercepts highlighted (greater than 0.5g/t cut-off).

Geology

The geology at the western end of the Gem deposit consists of an intermediate to mafic package of andesitic lava's and volcanoclastics with basalts and dolerite intrusions. The predominant host to mineralisation is a coherent, fine-grained andesite lava. Mineralisation in all three down-dip holes (RC21KP1047, RC21KP1055 and RC21KP1056) principally occurs in two moderately dipping (~45° - 50°), broad zones of low-level gold anomalism (>0.5 g/t Au) associated with trace to minor (0.5% - 2%) fine-grained disseminated pyrite with moderate chlorite alteration.

Within each zone are high-gradequartz-sulphide(pyrite-chalcopyrite-pyrrhotite) veins as evidenced by the following intersections;

• 1m @ 8.07 g/t Au, 0.23 % Cu, 0.6 g/t Au from 142m in RC21KP1055
• 1m @ 15.6 g/t Au, 1.2% Cu, 3.3 g/t Ag from 170m in RC21KP1055
• 1m @ 25.3 g/t Au, 0.09% Cu, 0.8 g/t Ag from 143m in RC21KP1056
• 1m @ 25.6 g/t Au, 0.2% Cu, 2.7 g/t Ag from 140m in RC21KP1047

RC21KP1056 is host to a significant intersection of 3m @ 35.9 g/t Au and 1.2 g/t Ag from 36m situated within the transitional weathered profile displaying hematite-limonite gossanous textures oxidised from sulphides. The interval is the beginning of a broader zone of 11m @ 10.2 g/t Au and 0.5 g/t Ag between 36m - 47m. The shallow anomalism is also observed in RC21KP1055 (6m @ 0.4 g/t Au from 34m) and RC21KP1047 (4m @ 0.95 g/t Au from 23m). Drilling in 2022 has been planned to further delineate the potential of the area.

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Figure 5: Cross section at Hillsborough looking east with drill intercepts highlighted (greater than 0.5g/t cut-off).

Figure 6: Mineralisation within RC21KP1055 with 0.5% - 1% pyrite surrounding quartz-sulphide(pyrite-chalcopyrite) vein with 1m @ 15.6 g/t Au, 1.2% Cu, 3.3 g/t Ag from 170m.

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