Midas Minerals : enters Option to acquire gold and lithium prospects

Midas enters Option Agreement to expand Yilgarn footprint with gold and lithium prospects

Highlights

• ▪ Midas enters option agreement with DiscovEx over the Newington Projects, covering the northern extent of the Southern Cross and Westonia Greenstone belts in WA

• ▪ The project comprises 12 tenements totalling 311 sq km - considered prospective for gold and possibly lithium-bearing pegmatites

• ▪ Midas is assessing the gold potential at the Mt Correll/Hawthorn, Newfield and Dawson's areas

• ▪ Midas will also assess the potential of numerous mapped (untested) pegmatites for lithium bearing minerals in the Newfield and Kawana areas

• ▪ Prior auger geochemistry in these areas returned anomalous lithium, caesium and tantalum.

Midas Minerals Ltd ("Midas" or "the Company") (ASX: MM1) is pleased to advise it has entered into an option agreement with DiscovEx Resources Limited (ASX: DCX) ("DCX") to acquire the Newington Project in WA's Goldfields region, which is prospective for gold and lithium.

The main DCX Newington Project area totals about 210 sq km and is located 90km north of Southern Cross. Tenements cover a 33km strike of the northern extent of the Southern Cross Greenstone Belt.

The project comprises four exploration licences totalling 153.6 sq km which are 100% owned by DCX, four exploration licences and a prospecting licence totalling 55.7 sq km in which DCX can earn 80% interest and two mining leases totalling 1.2 sq km in which DCX has 70% equity.

In addition, the project includes a single exploration licence of 100.6 sq km, in which DCX holds 100%, located 3km to the north of the Edna May Gold Mine, located 60km west of Southern Cross.

The Southern Cross Greenstone Belt hosts numerous gold deposits and is considered highly prospective. The belt also contains the Mt Holland pegmatite hosted lithium deposit being developed by the Wesfarmer and SQM Covalent JV, and several significant nickel deposits.

Exploration Manager Mark Calderwood commented:

"Midas will undertake a detailed review of existing data and ground truthing to understand the gold and lithium potential.

Our initial focus will be on two prospective areas; Mt Correll - Newfield for gold and lithium and Kawana for lithium.

We are encouraged by the presence of pegmatites associated with late-stage granites and evidence for extensive lithium, caesium and tantalum anomalism in limited prior multi-element auger geochemistry."

Midas Minerals Limited | Ground Floor, 24 Outram St, West Perth WA 6005

P: [phone] | E:[e-mail]

www.midasminerals.com

Figure 1: Location of the Newington Project, proximal to Midas' existing projects as at 4th April 2022

Gold Potential

Midas will review the gold potential over a 5km strike in the Hawthorn to Newfield - Dawsons area which has potential for high-grade gold mineralisation associated within structurally controlled quartz veins and folded banded iron formations (BIFs).

The Company will conduct a full review of all the existing data to determine the potential for gold. Prior recorded gold production at Newfield Central was 32,366 ounces at an exceptionally high-grade of 24.5 g/t Au, of which 70% was produced below a sub-horizontal dolerite dyke between 2001 and 2005.

Midas believes further potential exists in several areas including; Newfield East, Dawson's, Hawthorn, and Sweet William. Drilling by DCX at Dawson's has returned significant intercepts including 4m at 16.6 g/t Au, 3m at 11.0 g/t Au, 2m at 13.0 g/t Au and 1m at 20.0 g/t Au (refer to DCX ASX announcements 19 November 2019 and 24 February 2022), below the same sub-horizontal dolerite dyke that occurs at Newfield Central, 700m to the south.

Lithium Potential - Lithium Caesium, Tantalum (LCT) Pegmatites

Though no specific exploration for pegmatite minerals is documented, following a review of available data, Midas has identified two areas for their potential to host LCT pegmatites;

Newfield

• • Several pegmatites have been mapped or intercepted in historic gold and nickel exploration, located immediately north of a possible source intrusion, the late-stage Mt Correll leucogranite.

• • Limited multi-element soil and auger datasets (requiring verification) indicate the presence of anomalous Tantalum (Ta), Lithium (Li), Caesium (Cs), Tin (Sn) and Tungsten (W).

• • Based on the documented presence of pegmatites and limited geochemistry an area of at least 10km² north and east of the Mt Correll leucogranite is considered highly prospective for LCT pegmatites. Significantly, this area also contains the most prospective known gold targets on the project.

Kawana

• • Numerous pegmatites and late-stage granites were mapped or intercepted in limited gold and nickel exploration over a 9km strike of the northern extent of the Southern Cross greenstone belt, particularly along the Copperhead fault.

• • The widest recorded pegmatite drill intercept was 29m intersected during historic nickel exploration.

• • Limited auger multi-element geochemistry highlighted anomalous Ta and Li over an open 2.4km strike with strong anomalism over 700m strike, with one geochemical sample assaying highly encouraging grades of 1.26% Li2O, 675ppm Cs2O, 60ppm Ta2O5 and 155ppm SnO2 (refer Appendix B)

• • The 28km2 area is considered by Midas to be highly prospective for LCT pegmatites.

Figure 2: Location of the Newington Project as at 4th April 2022

Potential Acquisition Terms

The Company has entered into a binding Heads of Agreement pursuant to which DiscovEx Resources Limited (ASX: DCX) has granted the Company an option to acquire the Newington Project which comprises of five Exploration Licences (100% interest), five Exploration Licences (51% interest with right to earn up to 80%), and two Mining Leases (70%) (Option Agreement).

• • Material Terms and Conditions of the Option Agreement are as follows:

  •  Midas will pay $30,000 for a 90 day option commencing on 1 April 2022;

  •  During the Option period, Midas intends to conduct due diligence on the Newington Project;

  •  Consideration is payable within 5 business days of exercise of the Option of $70,000 cash and 2,693,639 Midas shares. The consideration shares will be issued without shareholder approval using the Company's placement capacity under Listing Rule 7.1;

  •  Exercise of the Option is subject to customary conditions precedent including due diligence and obtaining any necessary third-party consents; and

  •  Standard representations and warranties.

Funding for exploration activities on the acquired projects will come from Midas's existing cash reserves included in future acquisition costs and working capital in the Company's Replacement Prospectus dated 3 September 2021.

Figure 3: Interpreted Geology Newington Project - Main Area as at 4th April 2022

Figure 4: Pegmatite and Geochemical Anomalies Newfield - Hawthorn as at 4th April 2022