PR Newswire | Jun 17, 2021 09:35AM EDT

Initial HeliMag Results

06/17 08:34 CDT

Matador Acquires Further Gold Ground in Newfoundland Following Excellent Initial HeliMag Results PERTH, Australia, June 17, 2021

PERTH, Australia, June 17, 2021 /PRNewswire/ -- Matador Mining Limited (ASX: MZZ; OTCQX: MZZMF; FSE: MA3) ("Matador" or the "Company") is pleased to announce that Phase One of the Company's high-resolution, heli-mag geophysics program is nearing completion at the Cape Ray Gold Project (the "Project"). Phase One of the program targeted 40 kilometres of strike within the central part of the Project which includes all of the Company's existing Mineral Resources and the majority of the priority exploration targets.

Highlights

* Phase One of the high resolution 30 metre line spacing heli-mag geophysics program, which covers an area of 448km2 or 40 kilometres of strike along the central part of the Company's holdings, is nearing completion * 16,500 line-kilometres were flown as part of this phase, which has targeted the central 40 kilometres of the tenement package between the Big Pond deposit (in south-west) to Benton Five prospect (in north-east)

* Review of preliminary magnetic data has resulted in Matador identifying and staking five additional prospective areas (320km2)1 adjacent to the existing Project tenements * The review has identified a number of new priority areas that will be tested with power auger drilling during the 2021 exploration season

* The exceptionally high-resolution dataset provides Matador with unprecedented detail of the geology and structural controls on mineralisation below the shallow till cover, allowing more targeted power auger and diamond drilling on the high priority targets * Data processing is scheduled to commence shortly, with results during September 2021 quarter

Exploration Manager Warren Potma commented:

"We are very fortunate that the rock types across the Cape Ray Gold Project exhibit significant magnetic contrast. This enables the geometry of different rock units to be mapped through the shallow till cover. Where these rock units are cut by faults, shear zones and other structures known to concentrate gold across the Project, the structures are highly visible in the magnetic maps.

The known deposits at Central Zone, Isle aux Morts, Big Pond and Window Glass Hill are all related to key shear zones, cross faults and granite intrusions that are clearly visible in the new detailed magnetics. It is now evident from these new data that this structural complexity, a key ingredient in world-class orogenic gold systems, persists throughout the length of Matador's Cape Ray Gold Project area. These structures were effectively invisible in the less detailed historical magnetics data.

This new ultra-detailed heli-mag dataset will facilitate a step-change in structural targeting for Matador and has already resulted in Matador staking new ground adjacent to our existing Cape Ray Gold Project tenements".

High resolution Heli-magnetics and VLF program covering 448km2

Following the success of the detailed ground magnetics survey conducted over the Window Glass Hill Granite and Big Pond areas in 2020, the Company commenced a high-resolution Heli-magnetic and Digital Matrix VLF-EM (very low frequency electromagnetic) survey across the central portion of the Project (Appendix 1).

Phase One of the program is nearing completion, with 16,500 line-kilometres of data acquired at 30 metre flight line spacing and 25 metre flight height, over 448km2. The survey covers the area between the Big Pond deposit in the south-west to Benton Five prospect in the north-east. This is approximately 40 kilometres of strike across the total 120 kilometre long tenement package. This area includes all of the Company's existing Mineral Resources and 23 of the 33 priority exploration targets identified in 2020 from existing historical data (ASX announcement 29 October 2020).

Phase Two of the heli-mag program is planned to extend the geophysical survey area a further 35km north-east to cover the remaining high priority exploration targets later in 2021 or in 2022.

New magnetic data results in further ground being acquired at the Cape Ray Gold Project

Review of preliminary heli-mag data has already resulted in Matador identifying and staking five additional target areas adjacent to the existing Project tenements (for a total of 320km2 of highly prospective new ground)[3]. This new detailed dataset has highlighted previously unrecognized splays off the Cape Ray Shear Zone and other magnetic features considered highly prospective by the Matador geology team.

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 Adam Kiley - Corporate Development

Phone: +61 8 6117 0478 Phone: +61 8 6117 0478

Email: info@matadormining.com.au Email: info@matadormining.com.au

About the Company

Matador Mining Limited (ASX: MZZ; OTCQX: MZZMF; FSE: MA3) 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 May 2020). The Company is currently undertaking the largest exploration program carried out at Cape Ray, with upwards of 20,000 metres of drilling, targeting brownfield expansion and greenfields exploration. Matador acknowledges the financial support of the Junior Exploration Assistance Program, Department of Industry, Energy and Technology, Provincial Government of Newfoundland and Labrador, Canada.

Competent Person's Statement

The information contained in this announcement that relates to exploration results is based upon information compiled by Mr Warren Potma, who is an employee of Matador Mining Limited in the position of Exploration Manager. Mr Potma is a Member of the AUSIMM and a Member of the AIG and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC Code 2012. Mr Potma consents to the inclusion in the announcement of the matters based upon the information in the form and context in which it appears.

Reference to previous ASX announcements

In relation to the results of the Scoping Study 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 previously reported exploration results, the dates of which are referenced, Matador confirms that it is not aware of any new information or data that materially affects the information included in the relevant announcement.

Appendix 1. JORC Code 2012 Table 1 Reporting

Section 1. Sampling Techniques and Data

Criteria Explanation Commentary

Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry Sampling standard measurement tools Techniques 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.

Aspects of the determination of mineralisation that are Material N/A to the Public Report.

Drill type (eg core, reverse circulation, open-hole hammer, Drilling rotary air blast, auger, Bangka, techniques sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if N/A so, by what method, etc).

Drill SampleMethod of recording and assessing Recovery core and chip sample recoveries N/A and results assessed.

Measures taken to maximise sample recovery and ensure representative nature of the samples. Drill Sample Recovery Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/N/A gain of fine/coarse material.

Whether core and chip samples have been geologically and geotechnically logged to a level Logging of detail to support appropriate Mineral Resource estimation, N/A mining studies and metallurgical studies.

Whether logging is qualitative or quantitative in nature. Core (or N/A costean, channel, etc) photography. The total length and percentage ofN/A the relevant intersections logged.

Sub-SamplingIf core, whether cut or sawn and techniques whether quarter, half or all core N/A and sample taken. preparation

If non-core, whether riffled, tube sampled, rotary split, etc and N/A whether sampled wet or dry.

For all sample types, the nature, quality and appropriateness of theN/A sample preparation technique.

Sub-SamplingQuality control procedures adopted techniques for all sub-sampling stages to N/A and sample maximise representivity of preparation samples.

Measures taken to ensure that the sampling is representative of the in-situ material collected, N/A including for instance results for field duplicate/second-half sampling.

Quality of The nature, quality and assay data appropriateness of the assaying and and laboratory procedures used and laboratory whether the technique is N/A tests considered partial or total.

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.

Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

All survey data was Quality The verification of significant Controlled and verified for Verificationintersections by either compliance with survey of sampling independent or alternative companyparameters by Terra and assayingpersonnel. Resources, independent geophysical consultants to Matador Mining.

The use of twinned holes. N/A

Documentation of primary data, All data was provided by Verificationdata entry procedures, data Terraquest to Terra Resourcesof sampling verification, data storage in digital format along with and assaying(physical and electronic) daily and weekly production protocols. reporting and Terraquests own internal QA/QC reporting.

Discuss any adjustment to assay N/A data.

Accuracy and quality of surveys Location of used to locate drill holes (collar data points and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

Specification of the grid system UTM NAD 83 Zone 21N. used

Onboard Radar Altimeter (+/- 1m accuracy) validated against onboard Differential Quality and adequacy of GPS (+/- 1m accuracy) and topographic control existing SRTM (satellite) DEM data which provides approximately 5m topographic elevation precision across the entire project.

Helimag survey lines were spaced at 30 metre intervals Data spacingData spacing for reporting of with data collected at an and Exploration Results. average 25m flight (sensor) distribution height with 300m spaced tie lines orthogonal to main survey lines.

30 metre line spacing Whether the data spacing and provides very high resolution distribution is sufficient to airborne magnetic data, Data spacingestablish the degree of geologicalsignificantly more detailed and and grade continuity appropriate than the industry average fordistributionfor the Mineral Resource and Ore high resolution Reserve estimation procedure(s) helicopter-borne magnetic and classifications applied. surveys (typically 50-100m line spacing)

Whether sample compositing has N/A been applied.

Main survey lines were Orientation Whether the orientation of oriented north-north-west to of data in sampling achieves unbiased south-south-east generally relation to sampling of possible structures orthogonal to the main geological and the extent to which this is structural trends along the structure known, considering the deposit Cape Ray Shear Zone. Tie type. lines were orthogonal to main survey line orientation.

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have N/A introduced a sampling bias, this should be assessed and reported if material.

Sample All data was independently Security The measures taken to ensure verified and processed by sample security. Terra Resources (Consultants to Matador Mining)

All data has been quality The results of any audits or control checked for Matador Audits or reviews of sampling techniques andMining by Terra Resources reviews data. with any non-compliant data rejected to be reflown by the contractor (Terraquest)

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria JORC Code Commentary explanation

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title Matador owns 100% of all tenements on the Cape Ray Mineral interests, Gold Project, which is located approximately 20km tenement and historical northeast of Port aux Basques, and 100% of all land tenure sites, tenements on the Hermitage Project located status wilderness or approximately 50km North of Grey River, national park Newfoundland, Canada. All tenements are in good and standing at the time of reporting. environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.



LicenceProject No. ofArea Comments No. Claims(km2)

025560MCape Ray 20 5.00

025855MCape Ray 32 8.00 Royalty (d)

025856MCape Ray 11 2.75 Royalty (d)

025857MCape Ray 5 1.25 Royalty (d)

025858MCape Ray 30 7.50 Royalty (d)

026125MCape Ray 190 47.50

030881MCape Ray 255 63.75

030884MCape Ray 255 63.75

030889MCape Ray 50 12.50

030890MCape Ray 118 29.50

030893MCape Ray 107 26.75

030996MCape Ray 205 51.25

030997MCape Ray 60 15.00Royalty (d)

031557MCape Ray 154 38.5

031558MCape Ray 96 24

031559MCape Ray 32 8

031562MCape Ray 37 9.25

Royalties 032060MCape Ray 81 20.25 (a) (b) (c)

Royalties 032061MCape Ray 76 19 (a) (b) (c)

Royalties 032062MCape Ray 72 18 (a) (b) (c)

032764MHermitage256 64 Pegged 20 May 2021

032770MHermitage252 63 Pegged 20 May 2021

032818MHermitage95 23.75Pegged 22 May 2021

032940MCape Ray 255 63.75Pegged 28 May 2021

032941MCape Ray 256 64 Pegged 28 May 2021

033080MCape Ray 190 47.5 Pegged 14 June 2021

033083MCape Ray 256 64 Pegged 14 June 2021

033085MCape Ray 256 64 Pegged 14 June 2021

Total 3,702 925.5



The most proximate Aboriginal community to the Project site is the Miawpukek community in Bay d'Espoir, formerly known as "Conne River". It is approximately 230 kilometres to the east of the Project site. It is not known at this time if the Project site is proximate to any traditional territories, archaeological sites, lands or resources currently being used for traditional purposes by Indigenous Peoples. This information will be acquired as part of future environmental baseline studies. The Crown holds all surface rights in the Project area. None of the property or adjacent areas are encumbered in any way. The area is not in an environmentally or archeologically sensitive zone and there are no aboriginal land claims or entitlements in this region of the province. There has been no commercial production at the property as of the time of this report.

The claims are in good standing The security of the tenure held Permits that will potentially be required for at the time of exploration work include a Surface Lease and reporting along Mineral Exploration Approval both issued by the with any known Newfoundland Department of Natural Resources, impediments to Mineral Development Division. A Water Use Licence obtaining a has been acquired from the Newfoundland licence to Department of the Environment and Conservation, operate in the Water Resources Division, as well as a area. Certificate of Approval for Septic System for water use and disposal for project site facilities.

The Cape Ray Gold Deposit was initially discovered in 1977 by Rio Canada Exploration Exploration Acknowledgment Limited (Riocanex). Since that period the area done by other and appraisal ofhas been the subject of numerous academic and parties exploration by government geological studies, and exploration by other parties. various mining companies. Historical work is summarised in Matador Announcement 19^th July 2018.

The Cape Ray Gold Project lies within the Cape Ray Fault Zone (CRFZ), which acts as a major structural boundary and hosts the Cape Ray Gold Deposits; zones 04, 41 and 51 (Central Zone), Window Glass, Big pond and Isle Aux Morts. The CRFZ is approximately 100km long and up to 1km wide extending from Cape Ray in the southwest to Granite Lake to the Northeast. Areas along and adjacent to the southwest portion of the Cape Ray Fault Zone have been subdivided into three major geological domains. From northwest to southeast they include: The Cape Ray Igneous Complex (CRIC), the Windsor Point Group (WPG) and the Port aux Basques gneiss (PABG). These units are intruded by several pre-to late-tectonic granitoid intrusions. The CRIC comprises mainly large mafic to ultramafic intrusive bodies that are intruded by granitoid rocks. Unconformably overlying the CRIC is the WPG, which consists of bimodal volcanics and volcaniclastics with associated sedimentary rocks. The PABG is a series of high grade, kyanite-sillimanite-garnet, quartzofeldspathic pelitic and granitic rocks intercalated with hornblende schist or amphibolite. Hosted by the CRFZ are the Cape Ray Gold Deposits consisting of three main mineralised zones: the 04, the 41 and the 51 Zones, which have historically been referred to as the "Main Zone". These occur as quartz veins and vein arrays along a 1.8 km segment of the fault zone at or near the tectonic boundary between the WPB and the PABG. The gold bearing quartz veins are typically located at or near the southeast limit of a sequence of highly deformed and brecciated graphitic schist. Other veins are present in the structural footwall and represent secondary lodes hosted by more competent lithologies. Gold bearing quartz veins at the three locations are collectively known as the "A vein" and are typically located at (41 and 51 Zones) or near (04 Zone) the southeast limit of a sequence of highly deformed and brecciated graphitic schist of the WPG. The graphitic schists host the Deposit type, mineralisation and forms the footwall of the geological CRFZ. Graphitic schist is in fault contact with Geology setting and highly strained chloritic schists and style of quartz-sericite mylonites farther up in the mineralisation. hanging wall structural succession. The protolith of these mylonites is difficult to ascertain, but they appear to be partly or totally retrograded PABG lithologies. Other veins (C vein) are present in the structural footwall and represent secondary lodes hosted by more competent lithologies. In the CRGD area, a continuous sequence of banded, highly contorted, folded and locally brecciated graphitic schist with intercalations of chloritic and sericite-carbonate schists and banded mylonites constitutes the footwall and host of the mineralised A vein. The banded mylonites are characterized by cm-wide siderite-muscovite-quartz-rich bands within graphitic chlorite-quartz-muscovite schist. The mylonites are commonly spatially associated with local Au-mineralised quartz veins, vein breccias and stringer zones. The graphitic schist unit becomes strongly to moderately contorted and banded farther into the footwall of the fault zone, but cm- to m-wide graphitic and/or chloritic gouge is still common. The graphitic schist unit contains up to 60% quartz or quartz-carbonate veins. At least three mineralised quartz breccias veins or stockwork zones are present in the footwall of the 41 Zone and these are termed the C vein. The thickness of the graphitic-rich sequence ranges from 20-70m but averages 50-60 m in the CRGD area. The CRGD consists of electrum-sulphide mineralisation that occurs in boudinaged quartz veins within an auxiliary shear zone (the "Main Shear") of the CRFZ. The boudinaged veins and associated mineralisation are hosted by chlorite-sericite and interlayered graphitic schists of the WPG (Table 7.1), with sulphides and associated electrum occurring as stringers, disseminations and locally discrete massive layers within the quartz bodies. The style of lode gold mineralisation in the CRGD has a number of characteristics in common with mesothermal gold deposits. The relationship of the different mineral zones with a major ductile fault zone, the nature of quartz veins, grade of metamorphism, and alteration style are all generally compatible with classic mesothermal lode gold deposits.

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 metres) of the drill hole collar Drill hole -- dip and Information azimuth of the hole -- down hole N/A length and interception depth -- hole length. 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.

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts Data incorporate aggregation short lengths of methods high-grade results and longer lengths N/A 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. The assumptions used for any reporting of metal equivalent values should be clearly stated.

These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to Relationship the drill hole between angle is known, mineralisationits nature widths and should be intercept reported. lengths N/A If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant Diagrams discovery being reported These should include, but not be See body of announcement for diagrams. limited to a plan view of drill hole collar locations and appropriate sectional views.

Where comprehensive reporting of all Exploration Results is not practicable, representative Balanced reporting of reporting both low and high grades and/All geophysical data has been reported or widths should be practiced to avoid misleading reporting of Exploration Results.

Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; Other geochemical substantive survey results; exploration bulk samples - data size and method All relevant data reported of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). All new geophysical data is yet to be processed. Diagrams clearlyDerivative images will be interpreted assist withFurther work highlighting thethe identification of the structural and areas of lithological controls on mineralisation. Followup possible mapping, power auger drilling and diamond extensions, drilling are critical next steps to assess and including the validate interpretation of geophysical data. main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

1 Three new licenses pegged 14 June 2021 (additional 192km2) and two licences previously reported (ASX announcement 3 June 2021). 2 ASX announcement 29 October 2020 3 Three new licenses pegged 14 June 2021 (additional 192km2) and two licences previously reported (ASX announcement 3 June 2021) refer to Appendix 1 for license details.

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SOURCE Matador Mining Limited