Medallion Metals : Significant New Gold Discovery 2km From Existing Resource

For personal use only

15 December 2021

ASX:MM8

Significant New Gold Discovery 2km to the North of the

674,000 Ounce Gold Resource at Kundip

Highlights

• Significant gold discovery at the Ariel Prospect located 2km to the north of the Kundip Mining Centre which already hosts a Mineral Resource Estimate of 674,000 ounces @ 2.4 g/t Au. All results reported are outside of the current MRE
• Only 6 holes were drilled returning shallow high-grade gold intersections including:
• • 26m @ 1.6 g/t Au from 0m(RC21AR006)
  • 1m @ 5.15 g/t Au from 6m (RC21AR004)
  • 1m @ 7.52 g/t Au from 11m (RC21AR004)
  • 4m @ 1.24 g/t Au from 16m (RC21AR005)
  • 3m @ 2.92 g/t Au, 1,230 ppm Cu from 47m (RC21AR002)
• The drilling at Ariel has demonstrated the presence of an 800m mineralised zone that remains open in all directions within the total geochemical and VTEM anomalism extending over 1.4km in strike
• Ariel is located approximately 200m west from the Ard Patrick Prospect, which has not been drilled since the late-1980's and contains historical high-grade drill results, including:
• • 5m @ 65.36g/t Au from 30m(APP004)
  • 2m @ 3.98 g/t Au from 44m (APP005)
• The highly prospective Ariel and Ard Patrick prospects continue to demonstrate the outstanding district scale potential of the Ravensthorpe Gold Project
• This follows the recent high-grade results at the Meridian Prospect (including 5m @ 11.4 g/t Au, 1,572 ppm Cu from 32m)1, 21km along strike from Kundip Mining Centre
• Limited drilling has been conducted historically at Ariel and Ard Patrick, step out drilling is planned in Q1 of 2022

Managing Director, Paul Bennett, commented:

"This is another extremely positive outcome for Medallion. Ariel is the second regional prospect to be tested after Meridian and has yielded another discovery and is a distinct target area that has the potential to add significant ounces to the Project Resource. Being located only 2 kilometres along strike from the Kundip Mining Centre significantly increases the potential for the area to support a stand-alone development. Just like the Meridian results, Ariel underlines the potential of Medallion's dominant landholding in the Annabelle volcanics which hosts numerous similar prospects that have yet to be

1 Refer ASX announcement 18 October 2021 for further details.

Medallion Metals Limited

S1/11 Ventnor Ave, West Perth WA 6005

www.medallionmetals.com.au

ABN 89 609 225 023

Medallion Metals Limited

ASX Announcement

adequately tested. We are ramping up exploration efforts to significantly grow the Resource, needless to say that we will have drilled circa 32,000m after the last Resource update so we envisage a substantial increase to the Resource inventory when we report in Q1 next year."

For personal use only

Overview

Medallion Metals Limited (ASX:MM8, the "Company" or "Medallion") is pleased to report significant gold mineralisation at Ariel has been intersected in wide spaced RC drilling. Ariel is situated 2km north-west of the Kundip Mining Centre ("KMC") (Figure 1), which hosts the Company's current JORC 2012 Mineral Resource Estimate ("MRE") of 674,000 oz2 at 2.4g/t Au. As part of Medallion's 32,000m drill programme at the Ravensthorpe Gold Project ("RGP") in 2021, the RC drill programme completed at Ariel consists of 6 holes for 740m targeting gold anomalism defined by surface geochemical and geophysical surveys and aircore drilling completed in 2018.

Figure 1: Plan view of the Ravensthorpe Gold Project highlighting Medallion's dominant ground holding over the Annabelle Volcanics. The Ariel Prospect is situated approximately 2km north-west of the Kundip Mining Centre in the south-east.

Ariel and Ard Patrick Prospects

The Ariel and Ard Patrick prospects are situated ~2km north-west of the KMC. The Ard Patrick historical workings produced approximately 550 tonnes for 606 ounces at 34 g/t Au between 1906-1939. Mineralisation consists of

2 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.

Page 2 of 16

Medallion Metals Limited

ASX Announcement

For personal use only

an east-west striking, moderate dipping quartz-sulphide vein considered analogous to the Kaolin mineralised system at KMC.

Exploration at Ard Patrick has consisted of 8 RC holes (totalling 345m) drilled by Metana Minerals N.L. in 1988 with significant intercepts including;

• 5m @ 65.36g/t Au from 30m (APP004) including 1m @ 301.7 g/t Au
• 2m @ 3.98 g/t Au from 44m (APP005)

In July 2018, Medallion completed a 52-hole aircore program (totalling 1,931m) targeting the Ariel Prospect situated 200m west of Ard Patrick. Ariel is a coincidental north-west striking gold anomaly from geochemical surveys and an airborne vertical-time domain electromagnetic ("VTEM") conductor (Figure 2). The aircore drilling was completed on 5 drill traverses with collars spaced at 40m centres on 200m spaced lines across a strike of 800m.

Significant results from the 2018 aircore program included3;

• 5m @ 1.60g/t Au and 0.66g/t Ag from 17m (AC18AP040)
• 4m @ 1.22 g/t Au from 6m (AC18AP048)
• 2m @ 1.23 g/t Au from 12m (AC18AP018)
• 1m @ 6.24g/t Au from 12m (AC18AP019)
• 1m @ 3.41 g/t Au, 980 ppm Cu from 4m (AC18AP001)
• 1m @ 1.36g/t Au, 1930ppm Cu and 2g/t Ag from 24m (AC18AP051).

All drill traverses returned a >1 g/t Au intercept along the entire 800m strike length of drilling with multiple hits > 1.5g/t Au. Drill hits were all coincident with, or adjacent to, the VTEM conductor with the highest concentration and thickness of gold intercept corresponding well with the strongest section on the conductor.

2021 RC drilling

In September 2021, the Company completed 6 holes (totalling 741m) of angled RC drilling on three traverses testing beneath the better intercepts identified from the aircore drilling results. RC holes were drilled at -60 degrees to a maximum downhole depth of 139m (approximately 120m vertical depth). The drilling was planned to confirm the aircore drilling results and to determine the bedrock source of gold anomalism beneath the regolith.

The gold mineralisation identified thus far is predominantly shallow: 5 holes of the 6 holes intersected reportable gold intercepts (>0.3 g/t Au) from less than 20m (vertically) below surface (Figure 3). Mineralisation within the regolith profile is situated within overlying ferruginous-quartz gravels and intensely weathered clays. Several bedrock zones of sulphide (pyrite-chalcopyrite) ± quartz veining (Figure 4) was also intercepted within a blue quartz granodiorite host rock unique to the Ariel system.

Significant intercepts include;

• 26m @ 1.6 g/t Au from 0m (RC21AR006)
• 1m @ 5.15 g/t Au from 6m (RC21AR004)
• 1m @ 7.52 g/t Au from 11m (RC21AR004)
• 3m @ 2.92 g/t Au, 1230 ppm Cu, 2.5 g/t Ag from 47m (RC21AR002).
• 4m @ 1.24 g/t Au from 16m (RC21AR005)
• 3m @ 1.07 g/t Au from 40m (RC21AR006)
• 8m @ 0.3 g/t Au from 63m (RC21AR005)
• 1m @ 0.58 g/t Au from 98m (RC21AR003)

3 Refer to the Company's Prospectus announced on the ASX on 18 March 2021 for further details.

Page 3 of 16

Medallion Metals Limited

ASX Announcement

For personal use only

Figure 2: Plan view of the Ariel prospect highlighting drill intercepts (Gram x Metres) from 2021 and historical drilling. Drilling is overlain on geology and CH20 VTEM response.

Page 4 of 16

Medallion Metals Limited

ASX Announcement

For personal use only

Figure 3: Long section of the Ariel prospect looking southwest with Medallion and historical drill intercepts annotated.

Next Steps

The Company is undertaking a review of the results at Ariel with down hole electro-magnetic surveys (DHEM) and additional Phase 1 RC drilling scheduled in Q1 2022. Design of Phase 2 drilling has already commenced, which will include additional aircore drilling to test the VTEM conductor along strike to the north-west of current drilling.

Figure 4: RC21MR002 RC chips between 49-50m highlighting pyrite-quartz veining within an interval grading 3m @ 2.92 g/t Au from 47m.

Page 5 of 16