Madison Metals Inc. Updates the Binding “Letter of Intent”

Madison Metals Inc., “Madison” or the “Company,” is happy to offer an update to the binding letter of intent (“LOI”) with Otjiwa Mining and Prospecting CC (“Otjiwa”) under which the Company would gain interest of 85% in Exclusive Prospecting Licences 8531 (“EPL-8531”) and 8115 (“EPL-8115”) (the “Transaction”).

EPL-8531 and EPL-8115 are situated in the well-known Erongo Uranium Province of Namibia, Africa. Here, the Company already has rights to Exclusive Prospecting License 7011 (“EPL-7011”) and holds an agreement to gain a direct interest of 24% in Mining Licence 121 (“ML121”).

Madison is trying to combine possession of land assets in the uranium province through the Transaction to construct upon minable uranium resources by expanding the known uranium zones and creating discoveries. The second-highest uranium-manufacturing country in the world is Namibia, and it has the fifth-largest total uranium resources among other countries.

An “intention to grant” letter for EPL-8531 and EPL-8115 from Namibia’s Ministry of Mines and Energy (“MME”) is currently held by Otjiwa. The license’s grant and approval are subject to an Environmental Clearance Certificate (“ECC”). The Environmental Management Plan Report to obtain an ECC and Environmental Impact Assessment scoping study has already been submitted to the respective authorities, and a response is expected shortly.

Madison is consolidating its different land possessions due to the continuous development in the uranium province and the high probability of common infrastructure. The company has designated that EPL-7011 and EPL-8531 (earlier Rössing North) will be merged under the property name Madison North. In addition, EPL-8115 and ML121 (earlier Rössing West) will be merged under the property name Madison West.

EPL-8531

EPL-8531 is situated 50 km northeast of Swakopmund city, surrounded by the townlands of Arandis. The Rössing Mine is around 50 km east of the property. The geology is built of Damaran Super Group lithologies covered around older Abbabis Metamorphic Complex units.

As is common within the Welwitschia magnetic lineament deformation corridor, north-northeast is the complete lithological trend. The area is defined structurally by several synforms, antiforms, and faults.

Former operators found 11 possible targets for added exploration, of which five fall within EPL-8531. Drilling more than two of the targets summed 3,720 m of reverse circulation (RC) when drilled from 50 drill holes in 2015.

Based on this drilling, SRK Consulting (UK) Limited, or “SRK,” made an initial Mineral Resource Estimate in agreement with the disclosure standards of JORC for the intersected uranium mineralization.

The estimate was titled “MINERAL RESOURCE ESTIMATE, EPLS3524 AND 3624, NAMIBIA,” and published in November 2015.

For a contained metal total of 9.0 Mlbs U₃O_8, SRK made an Inferred Mineral Resource Estimate of 15.6 Mt grading at 260 ppm U₃O₈. The company’s attributable proprietorship of the resource will aggregate to 7.65 million pounds (Mlbs) U₃O₈.

Under National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), the SRK estimate is regarded as a “historical estimate.” The company is not considering or treating it to be current. A qualified person has not conducted enough work to categorize the historical estimate as current mineral resources.

The company would be required to test and review the past drill-hole data and perform an exploration program to assess the historical estimate as a current mineral resource.

EPL-8115

Situated 42 km east of Swakopmund city, EPL-8115 covers an approximate area of 61 km². The property is situated 18 km southwest of the Rössing Uranium Mine, the longest-running open-pit uranium mine in the world, and 12 km west of the Husab Mine.

Ida Dome to the southeast and Etango project to the southwest are other properties in the proximity with resources compliant with NI 43-101.

EPL-8115 is yet to be explored, and the company plans to capitalize on this area’s capacity. Geographically, the project area includes Abbabis Metamorphic Complex units, interrupted by leucogranites.

On the northern parts, anomalous radiometric signatures of the license area are shown by airborne radiometric data acquired from MME.

EPL-8115 is considered as a potential for leucogranite-hosted uranium mineralization by Madison.