Medallion Metals : Conventional Process to Yield High Gold & Copper Recoveries

28 March 2022

ASX:MM8

Conventional Process to Yield High Gold and Copper

Recoveries at Ravensthorpe Gold Project

Key Points

• • GR Engineering Services Limited (GRES, ASX: GNG) confirms consistent, high metallurgical recoveries achievable for gold, copper and silver by industry standard process route for Ravensthorpe Gold Project ores

• • Extensive metallurgical testwork programmes inform GRES findings

• • Gravity-Flotation-Carbon in Leach (CIL) preferred process route to produce gold dore and copper/precious metal concentrates

• • Overall RGP metal recovery to saleable product estimated as follows;

  • o Gold (Au): 94.6%

  • o Copper (Cu): 86.1%

  • o Silver (Ag): 73.3%

• • High copper and silver recoveries to enhance RGP economics

Medallion Metals Limited (ASX:MM8, the Company or Medallion) provides the following update in relation to ongoing metallurgical studies at the Company's flagship Ravensthorpe Gold Project (RGP or Project).

Managing Director, Paul Bennett, commented:

"The completion of the metallurgy review is an important step for Medallion to both consolidate the significant amount of work done, and to plan for the future. We're pleased to have an industry leader in GR Engineering assist us in this regard. The outcomes of their work demonstrates high gold and copper recoveries can be consistently achieved using industry standard processes across lithologies and deposits which has the potential to improve Project returns by unlocking the value of the by-products. The review findings will assist us in planning the next and final round of metallurgical testwork for RGP, in addition to supporting the upcoming resource update expected in April."

Scope of Review

Medallion engaged GRES to undertake a review of all metallurgical testwork undertaken on RGP ores1. This testwork provided a substantial database for the GRES metallurgical review. The review was tasked to confirm the preferred process route to maximise gold, copper and silver recovery from RGP ores. Estimates of metal recoveries, concentrate grades and reagent consumptions under the preferred process route are other key

1 For further information about RGP historical testwork and the background to the GRES review, please refer to the Company's ASX announcement dated 13 October 2021.

Medallion Metals Limited

Suite 1/11 Ventnor Ave, West Perth WA 6005

www.medallionmetals.com.au

ABN 89 609 225 023

outcomes of the review. The scope also included a gap analysis to identify any additional metallurgical testwork which may be required to support a Definitive Feasibility Study (DFS) level of assessment of the technical and commercial viability of RGP in the future.

Summary Findings

GRES concluded that an industry standard gravity-flotation-leach process route is the preferred option to maximise gold, copper and silver recovery from RGP ores to saleable products, in the form of gold dore and copper/precious metal concentrates. Estimates of metal recoveries and deportment to saleable products are provided in Table 1.

Dore (%)	Concentrate (%)	Total (%)
Gold	62.8	31.7	94.6
Copper	-	86.1	86.1
Silver	28.6	44.8	73.3

Table 1: Forecast recoveries to saleable products

Sequential flotation and leach processing is a widely used and conventional process route utilised globally for the processing of gold ore bodies which contain significant copper and silver by-product credits, in Australia of note this includes the Deflector project owned and operated by Silver Lake Resources Limited. Low copper ore from the oxide and transitional zones will by-pass the flotation stage and progress to direct leaching following the gravity concentration stage.

GRES recommended additional testwork be performed to confirm the potential for use of a coarser grind size and to ensure representivity from areas of expected resource growth in future metallurgical testwork performed.

Next Steps

As a result of the GRES review confirming the potential for high recoveries of gold, copper and silver to saleable products, Medallion will estimate gold, copper and silver as part of the Mineral Resource Estimate (MRE) update for RGP. The MRE update is expected to be announced in April 2022. While gold is the dominant driver of Project economics, unlocking the value of copper as a significant by-product credit has the potential to materially enhance Project returns.

The Company has commenced a sighter round of exhaustive leach tests on 19 samples from the Gem Restored deposit and the Ariel and Meridian prospects. Preparations are also underway for the collection of samples for the additional test work recommended by GRES.

Further information regarding the GRES review and findings is provided at Appendix 1 of this announcement.

This announcement is authorised for release by the Board of Medallion Metals Limited.

-ENDS-

For further information, please visit the Company's websitewww.medallionmetals.com.au or contact:

Paul Bennett

Managing Director Medallion Metals Limited Phone: [phone]

Email:[e-mail]

Suite 1, 11 Ventnor Avenue, West Perth WA 6005

DISCLAIMER

References in this announcement may have been made to certain ASX announcements, including exploration results, Mineral Resources and Ore Reserves. For full details, refer said announcement on said date. The Company is not aware of any new information or data that materially affects this information. Other than as specified in this announcement and mentioned announcements, the

Company confirms it is not aware of any new information or data that materially affects the information included in the original market announcement(s), and in the case of estimates of Mineral Resources and Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original announcement.

COMPETENT PERSONS STATEMENT

The information in this announcement that relates to exploration results is based on information compiled by Mr Paul Bennett, a

Competent Person who is a Member the Australasian Institute of Mining and Metallurgy ("AusIMM") (201424). Mr Bennett is a director of the Company and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Mineral Resources and Ore Reserves' (the "JORC Code"). Mr Bennett consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

FORWARD LOOKING STATEMENTS

This announcement may contain forward-looking information about the Company and its operations. In certain cases, forward-looking information may be identified by such terms as "anticipates", "believes", "should", "could", "estimates", "target", "likely", "plan", "expects", "may", "intend", "shall", "will", or "would". These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements are subject to risk factors associated with the Company's business, many of which are beyond the control of the Company. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements.

APPENDIX 1

Historical Testwork Summary

Three substantial phases of metallurgical testwork have been undertaken on RGP ores, the first in 2005, followed by more recent programmes in 2018 & 2019 (Table 2). Drill holes sampled to form metallurgical testwork composites are shown in Figure 1, with collar details provided as Annexure 1 and sampling details provided as Annexure 2. The samples are a representative spread across the lithologies and deposits that comprise the Company's current MRE.

Testwork programme	2005	2018	2019
Laboratory	Ammtec/IML/Optimet	ALS	Bureau Veritas
Aggregate sample	1,613kg	658kg	306kg

Table 2: Laboratory & sample mass submitted for historical RGP metallurgical testwork programmes

Figure 1: Collar locations for drill holes used in 2005, 2018 and 2019 metallurgical testwork

Process Route Selection

The extraction of gold by cyanidation from RGP deposits will be influenced by the presence of cyanide soluble copper present mainly in the transitional weathering profile. Secondary copper minerals which are a product of the weathering process of chalcopyrite, the dominant primary copper mineral at RGP, have the potential to increase operating costs due to the consumption of sodium cyanide and the subsequent destruction of cyanide in leach tailing prior to discharge to tailings storage.

The 2020 Feasibility Study2 (FS) mill feed schedule broken down by weathering profile and high/low copper is shown in Table 3. Transition ore comprises approximately 11% of the current mill feed schedule. Other material types are considered low risk with respect to copper interference due to low overall copper grades (oxide) or low levels of soluble copper (sulphide). The proportion of transition ore as part of the overall processing schedule is expected to diminish over time as the resource grows at depth with the addition of sulphide material and regionally with the potential addition of oxide and sulphide discoveries.

Oxide Low Cu	Oxide High Cu	Transition Low Cu	Transition High Cu	Sulphide Low Cu	Sulphide High Cu	Total
Tonnes	t	591,321	800,936	167,482	299,179	331,497	2,170,292	4,360,708
Au	g/t	0.94	1.94	0.91	2.43	0.94	3.30	2.40
Ag	g/t	0.77	1.01	1.09	2.17	1.12	3.15	2.13
Cu	%	0.04	0.08	0.06	0.21	0.08	0.40	0.24

Proportion of FS mill feed by tonnes, gold and copper metal
Tonnes	%	13.6	18.4	3.8	6.9	7.6	49.8
Au metal	%t	5.3	14.9	1.5	6.9	3.0	68.4
Cu metal	%	2.5	6.3	1.0	6.0	2.6	81.6

Table 3: RGP FS (June 2020) mill feed schedule by weathering profile and high/low copper (0.4% Cu threshold)

When taking into consideration test work results and factoring for operational considerations and cost, GRES has recommended a strategy to apply leaching to low copper (<0.4% Cu) oxide and transition ores and incorporate flotation (ahead of leaching) for all high copper and sulphide ores. The proposed process flow for RGP is shown as a block diagram in Figure 2 below.

Ore segregation (by weathering profile and copper grade) through ongoing grade control practices at the mining stage will be necessary to enable management of mill feed scheduling and blending.

Gravity recovery of gold will be applied for all ore types. Low copper oxide and transition ore will by-pass flotation to direct leach to produce dore. All other material types will be subject to flotation to recover a copper/precious metal concentrate followed by leaching of the flotation tail to produce dore. A tailing detoxification process (ReCYN) using resin will be applied to recover and recycle cyanide. This process is also expected to yield relatively small amounts of copper precipitate. Cyanide consumption at the leach stage is estimated at 1.65 kg per tonne of ore processed basis the FS mill feed schedule. Cyanide consumption rates will change as the composition of the mill feed schedule changes with expected growth in resources.

The significant bank of historical test work demonstrates consistently high recoveries of gold, copper and silver from RGP ores can be achieved through the application of these industry standard process routes. Further test work will be required to inform and optimise engineering designs.

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