Megado Gold : Trenching Completed at the Babicho Gold Project

ASX Announcement

17 February 2022

TRENCHING COMPLETED AT THE BABICHO GOLD PROJECT

HIGHLIGHTS

only	Babicho Gold Project's second phase trenching program has been completed
Trenching results confirm >3km of continuous mineralisation along strike at the Roba
	Shakiso prospect (details below)
	Trenching results returned indicate broad gold mineralisation:

use	o BBTR025: 1m @ 13.75g/t Au (within 4m @ 3.67g/t Au)
o BBTR018: 4m @ 1.67g/t Au (within 21m @ 0.63g/t Au)
o BBTR017: 1m @ 2.44g/t Au (within 24m	@ 0.32g/t Au) & 1m @ 1.25g/t Au
o BBTR019: 1m @ 2.39g/t Au (within 21m	@ 0.31g/t Au)
	o BBTR021: 2m @ 1.54g/t Au (within 12m	@ 0.42g/t Au)
	o BBTR035: 1m @ 2.10g/t Au (within 15m	@ 0.55g/t Au)

personal Geological observations from drill holes and trenching indicate similar alteration and mineralisation to that observed at nearby Lega Dembi and Sakaro deposits (>3Moz Au)

Quartz veining with visible sulphides (pyrite) up to 7m wide within broad alteration zones 20-30m wide observed across trenching and drilling programs thus far

Trenching proximal to peak drilling result BBDD001 which ran 4.1m @ 1.97g/t Au (within 11m @ 0.79g/t Au) from 98m under trench BBTR001 (11.1m @ 3.21g/t Au) (previously announced)

Ethiopian-focused gold explorer Megado Gold (ASX:MEG) (Megado or the Company) is pleased to provide updates from the Company's Babicho Gold Project (Figure 2), located in the Adola Gold Belt in Ethiopia.

Megado Gold CEO and Managing Director, Michael Gumbley, commented:

For	"A strike length exceeding 3km is a strong indication of the Babicho Gold Project's potential. This surpasses
that of Lega Dembi, which has produced >3Moz gold. Throughout Babicho's trenching and drilling programs,
	wide zones of quartz veining upwards of 10-20m have been consistently intersected. There is another four
	kilometres along the Silingo Shear - in areas of known artisanal activity - yet to be tested. These results and
	Babicho's evident potential bode well for future exploration."

Megado Gold Ltd	Australian Registered Address	Directors
ACN 635 895 082	12/197 St Georges Terrace	Brad Drabsch (Non-Exec. Chair)
ASX: MEG	PERTH WA 6000 Australia	Michael Gumbley (MD and CEO)
Issued Capital		Chris Bowden (Exec. Tech. Director)
T [phone]	Marta Ortiz (Non-Exec. Director)
71.5m Shares	Aaron Bertolatti (Finance Director)
16.3m Options	E [e-mail]
	W www.megadogold.com

For personal use only

Figure 1 - Phase 2 trenching results at the Babicho Gold Project

Trenching Results at the Babicho Gold Project
Megado's trenching at the Babicho Gold Project has thus far produced results indicative of a system capable
only
of hosting gold deposits of significant size (see Table 1). Encouraging for the Company is that these recent
trenching results reflect broad gold mineralisation. Notably,	this and previous trenching and drilling
programs, have intersected wide zones of quartz veining upwards of 10-20m consistently intersected along
a strike length which now exceeds 3km (see Figure 1).
	Table 1 - Significant Intercepts from trenching program at the Roba Shakisso Prospect, Babicho Gold Project
use			Trench ID	From (m)			To (m)			Width (m)		Au (g/t)
		BBTR002	44			74			30		1.27
		inc.	59			70.1			11.1		3.21
			BBTR005	89			93			4		0.31
			BBTR006	93			104			11		0.12
			and ^	130			143			13		0.19
			BBTR007	23.2			31			7.8		0.41
personal			BBTR009	46			62			16		0.11
		BBTR010	2			8			6		0.30
		and	37			38			1		2.09
			BBTR011	55			85			30		0.84
			inc.	71			81			10		2.04
			BBTR012	70			91			21		1.46
			inc.	80			91			11		2.55
			and	45			51			6		1.75
			BBTR013	70			74			4		0.83
			BBTR014	75			82			7		0.41
				97			107			10		0.48
			BBTR015	123			137			14		1.09
			inc.	123			129			6		2.13
			BBTR016	72			102			30		1.06
			inc.	96			102			6		3.03
			BBTR017	34			48			14		0.20
For			BBTR017	61			71			10		0.23
		BBTR017	87			111			24		0.32
		inc.	102			103			1		2.44
			BBTR018	22			43			21		0.63
			inc.	38			42			4		1.67
			BBTR019	31			52			21		0.31
			inc.	41			42			1		2.39
			BBTR020	27			48			21		0.28
			BBTR021	94			106			12		0.42
			inc.	103			105			2		1.54
			BBTR023	54			63			9		0.59

	BBTR025	71	75	4	3.67
only	inc.	72	73	1	13.75
BBTR027	108	132	24	0.19
BBTR035	8	23	15	0.55
	inc.	21	22	1	2.10
	BBTR036	30	40	10	0.34
	BBTR037	6	20	14	0.19

^ BBTR006: 143m end of trench, intercept ends in mineralisation - 1m @ 0.61g/t Au

All reported widths are downhole/along trench and are not necessarily indicative of true widths.

usepersonalFigure 2- Babicho Gold Project Overview. Silingo Shear in centre (coincident with soil anomaly), Biloya Shear to east - both part of the tenement scale Babicho Shear Zone, of which is part of the belt-wide Lega Dembi-Sakaro shear zone.

ForResults of all trenching and drilling (see Table 2, and Appendices 1 & 2) at Babicho have demonstrated broad mineralisation. In particular, Megado's geologists have noted wide zones of sericite altered, meta- granodiorite, hosting quartz veining with heavily oxidised sulphides (pyrite). This is noteworthy because it compares favourably to that of the attributes noted in the lithology, alteration, and mineralisation of Lega Dembi and Sakaro which have produced >3Moz Au and are situated 50km along strike to the south. As an example, the gold mineralisation from hole BBDD001 (11m @ 0.79g/t Au, from 98m) is located within intervals of highly silicified schist (from 101m to 120m) hosting quartz veins with pyrite (3%) and chalcopyrite (<1%), similar to Lega Dembi. This result at BBDD001 also showed a strong indication of a mineralised zone dipping moderately east and plunging to the north.

Table 2 - Significant Intercepts from initial drilling program at the Roba Shakisso Prospect, Babicho Gold Project

only		Drillhole ID			From (m)			To (m)			Depth (m)			Au (g/t)
	BBDD001	98		109		11		0.79
	and	137		145		8		0.44
		inc.	100.9		105		4.1		1.97
		BBDD002	131.2		141.2		10		0.24
		BBDD003	46.5		56		9.5		0.14
		BBDD004	96		111		15		0.33
		BBDD005	26.4		28		1.6		0.43

All reported widths are downhole and are not necessarily indicative of true widths.

Ongoing Activities at the Babicho Gold Project

In view of the strong trenching results, broad mineralisation, and Lega Dembi similarities, Megado remains
confident of Babicho's potential. Future work will test the greater than 3km of strike and the depth
extensions at the Roba Shakiso Prospect.
personaluse
For
Figure 3 - Overview of Phase 2 trenching at the Babicho Gold Project