Matador Acquires Further Gold Ground in Newfoundland Following Excellent Initial HeliMag Results

Criteria

Explanation

Commentary

Sampling Techniques

Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools 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 to the Public Report.

N/A

Drilling techniques

Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, 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 so, by what method, etc).

N/A

Drill Sample Recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

N/A

Drill Sample Recovery

Measures taken to maximise sample recovery and ensure representative nature of the samples.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

N/A

Logging

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

N/A

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

N/A

The total length and percentage of the relevant intersections logged.

N/A

Sub-Sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

N/A

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

N/A

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

N/A

Sub-Sampling techniques and sample preparation

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

N/A

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

N/A

Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

N/A

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.

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

All survey data was Quality Controlled and verified for compliance with survey parameters by Terra Resources, independent geophysical consultants to Matador Mining.

The use of twinned holes.

N/A

Verification of sampling and assaying

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

All data was provided by Terraquest to Terra Resources in digital format along with daily and weekly production reporting and Terraquests own internal QA/QC reporting.

Discuss any adjustment to assay data.

N/A

Location of data points

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

Specification of the grid system used

UTM NAD 83 Zone 21N.

Quality and adequacy of topographic control

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

Data spacing and distribution

Data spacing for reporting of Exploration Results.

Helimag survey lines were spaced at 30 metre intervals with data collected at an average 25m flight (sensor) height with 300m spaced tie lines orthogonal to main survey lines.

Data spacing and distribution

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

30 metre line spacing provides very high resolution airborne magnetic data, significantly more detailed than the industry average for high resolution helicopter-borne magnetic surveys (typically 50-100m line spacing)

Whether sample compositing has been applied.

N/A

Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

Main survey lines were oriented north-north-west to south-south-east generally orthogonal to the main structural trends along the Cape Ray Shear Zone. Tie 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 introduced a sampling bias, this should be assessed and reported if material.

N/A

Sample Security

The measures taken to ensure sample security.

All data was independently verified and processed by Terra Resources (Consultants to Matador Mining)

Audits or reviews

The results of any audits or reviews of sampling techniques and data.

All data has been quality control checked for Matador Mining by Terra Resources with any non-compliant data rejected to be reflown by the contractor (Terraquest)

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and 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.

Matador owns 100% of all tenements on the Cape Ray Gold Project, which is located approximately 20km northeast of Port aux Basques, and 100% of all tenements on the Hermitage Project located approximately 50km North of Grey River, Newfoundland, Canada. All tenements are in good standing at the time of reporting.

Licence No.

Project

No. of Claims

Area (km2)

Comments

025560M

Cape Ray

20

5.00

025855M

Cape Ray

32

8.00

Royalty (d)

025856M

Cape Ray

11

2.75

Royalty (d)

025857M

Cape Ray

5

1.25

Royalty (d)

025858M

Cape Ray

30

7.50

Royalty (d)

026125M

Cape Ray

190

47.50

030881M

Cape Ray

255

63.75

030884M

Cape Ray

255

63.75

030889M

Cape Ray

50

12.50

030890M

Cape Ray

118

29.50

030893M

Cape Ray

107

26.75

030996M

Cape Ray

205

51.25

030997M

Cape Ray

60

15.00

Royalty (d)

031557M

Cape Ray

154

38.5

031558M

Cape Ray

96

24

031559M

Cape Ray

32

8

031562M

Cape Ray

37

9.25

032060M

Cape Ray

81

20.25

Royalties

(a) (b) (c)

032061M

Cape Ray

76

19

Royalties

(a) (b) (c)

032062M

Cape Ray

72

18

Royalties

(a) (b) (c)

032764M

Hermitage

256

64

Pegged 20 May 2021

032770M

Hermitage

252

63

Pegged 20 May 2021

032818M

Hermitage

95

23.75

Pegged 22 May 2021

032940M

Cape Ray

255

63.75

Pegged 28 May 2021

032941M

Cape Ray

256

64

Pegged 28 May 2021

033080M

Cape Ray

190

47.5

Pegged 14 June 2021

033083M

Cape Ray

256

64

Pegged 14 June 2021

033085M

Cape 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 security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

The claims are in good standing

Permits that will potentially be required for exploration work include a Surface Lease and Mineral Exploration Approval both issued by the Newfoundland Department of Natural Resources, Mineral Development Division. A Water Use Licence has been acquired from the Newfoundland Department of the Environment and Conservation, Water Resources Division, as well as a Certificate of Approval for Septic System for water use and disposal for project site facilities.

Exploration done by other parties

Acknowledgment and appraisal of exploration by other parties.

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

Geology

Deposit type, geological setting and style of mineralisation.

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 mineralisation and forms the footwall of the CRFZ. Graphitic schist is in fault contact with highly strained chloritic schists and quartz-sericite mylonites farther up in the 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.

Drill hole Information

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
-- dip and azimuth of the hole
-- down hole 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.

N/A

Data aggregation methods

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 incorporate short lengths of high-grade results and longer lengths 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.

N/A

Relationship between mineralisation widths and intercept lengths

These relationships are particularly important in the reporting of Exploration Results.

If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

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').

N/A

Diagrams

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

See body of announcement for diagrams.

Balanced reporting

Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

All geophysical data has been reported

Other substantive exploration data

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

All relevant data reported

Further work

The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

All new geophysical data is yet to be processed. Derivative images will be interpreted assist with the identification of the structural and lithological controls on mineralisation. Followup mapping, power auger drilling and diamond drilling are critical next steps to assess and validate interpretation of geophysical data.