CULLEN RESOURCES LIMITED — Capital/Financing Update 2014

Sep 29, 2014

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ABN 46 006 045 790
www.cullenresources.com.au ASX Symbol: CUL 30 September 2014
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ASX ANNOUNCEMENT

KILLALOE JOINT VENTURE

KILLALOE JV– EL63/1018, 1199 and PLs 63/1331-1333,1672: Matsa Resources Limited 80%; Cullen 20% free carried interest to Decision to Mine

Please find herewith a copy of an announcement made by the Manager of the Joint Venture, Matsa Resources Limited (ASX: MAT, 30 September 2014) in relation to nickel sulphide exploration at the Killaoe Project.

Matsa’s announcement contains the full extent of information provided to Cullen at this time and in the format provided.

.

REGISTERED OFFICE : Unit 4, 7 Hardy Street, South Perth WA 6151 Telephone : 089 474 5511; FAX : 089 474 5588 Contact : Dr Chris Ringrose, Managing Director; email: cringrose@cullenresources.com.au

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Matsa Resources Limited
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LIMITED ABN 48 106 732 487

ASX Announcement

30th September 2014

Ni Sulphides Confirmed at Killaloe JV Project

Highlights

• Recent drilling results from the Hanging Wall Gossan (HWG) prospect confirm emergence of new Ni sulphide belt at Killaloe significantly increasing the priority of the Killaloe JV Project.

CORPORATE SUMMARY

Executive Chairman

Paul Poli

Director

• Elevated Ni values in conjunction with Ni sulphides seen from diamond drillholes at HWG.

• Diamond drillhole 14KLDH02 did not intersect the basal contact between ultramafic komatiitic lavas and underlying basalt. It is this basal contact where the best mineralisation is expected. Matsa will now deepen 14KLDH02 to test this zone.

• Ni sulphide mineral, violarite together with chalcopyrite petrographically identified in 14KLDH01 core as the source of anomalous Ni. Further petrography results waited.

• Assays and geological interpretation from Phase 2 diamond drillhole programme at HWG confirm potential for Kambalda style Ni sulphide mineralisation at Killaloe.

• Downhole EM survey of Stage 2 diamond drillholes at HWG has been completed with analysis underway.

• High priority diamond and RC drill programme to commence.

• Several high priority targets along footwall contact of the Eastern Ultramafic Belt have been interpreted as further favorable sites for Ni sulphide mineralisation.

Frank Sibbel

Director & Company Secretary

Andrew Chapman

Shares on Issue

144.15 million

Unlisted Options

7.95 million @ $0.40 - $0.43

Top 20 shareholders

Hold 50.36%

Share Price on 29 September 2014

20 cents

Market Capitalisation

$28.83 million

Head Office: Suite 11, 139 Newcastle Street, Perth Western Australia 6000 Tel : +61 8 9230 3555 Fax: +61 8 9227 0370 Bangkok Office: Unit 1808, Pacific Place 2, 142 Sukhumvit Road, Klongtoey, Bangkok 10110 Tel : +66 0 2653 0258 Fax : +66 0 2653 0258 reception@matsa.com.au www.matsa.com.au

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Matsa Resources Limited
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Killaloe Project (Matsa Resources 80%, Cullen Resources 20%)

This report provides an update on Matsa’s exploration programme to discover komatiite hosted nickel sulphide mineralisation at Killaloe and confirm commencement of new drilling programme.

The geology in recent drilling on the Hanging Wall Gossan (HWG) prospect at Killaloe has similarities with the Kambalda nickel district and strongly supports the target concept as described for Kambalda below.

“Ni sulphide ores of the Kambalda district are typical of basal contact deposits associated with ultramafic flows in greenstone belts. They occur in a package of ultramafic flows overlying a basaltic footwall sequence. The flows that contain ore are channel flows in the lower part of the pile and may be up to 15km long and 100m thick. These flows are commonly interspersed with sulphidic interflow sediments from which the sulphur that formed the ores was probably derived. Most of the orebodies are at the basal contact of the lowermost channel flows although some do occur in overlying flows in the lower part of the flow sequence. The orebodies typically form long tabular or lenticular bodies up to 3km long and 5m thick. The ores generally consist of massive and breccia sulphides at the base overlain successively by matrix textured and disseminated sulphides”. (Eckstrand, O.R, and Hulbert, L.J., 2007; Magmatic nickel-copper-platinum group element deposits, in Goodfellow, W.D., ed., Mineral Deposits of Canada: A Synthesis of Major Deposit Types, District Metallogeny, the Evolution of Geological Provinces, and Exploration Methods: Geological Association of Canada, Mineral Deposits Division, Special Publication No. 5, p. 205-222.)

Results to date have given Matsa great confidence that there is high prospectivity for a Kambalda style nickel ore body at Killaloe. As noted above, the most prospective setting for nickel sulphide orebodies is at the base of the ultramafic sequence/basal contact. Diamond drilling is planned to recommence at Killaloe on the 6[th] October 2014 targeted on interpreted basal contact positions which remain highly prospective for economic sulphide mineralisation.

Executive Chairman Mr Paul Poli said “Killaloe is shaping up to be a highly prospective nickel project, which is enhanced by its proximity to the Taipan nickel sulphide project just to our north. Our previous nickel hits are extremely exciting and the abundance of sulphides really proves this project to be a first class opportunity for a discovery.

A recent article by Carey Smith from Alto Capital in Mining News predicted more discoveries in the Fraser Range and Kambalda, it just needs time. How lucky is Matsa that we have high quality projects in both of these areas. As the article stated, we just need time, I am sure we will deliver to the patient shareholder.”

Mr Poli added, “I have read many articles and examined model after model of nickel geology in the region and elsewhere, and Killaloe just keeps looking good to me. We commence drilling soon, let’s see!”

Petrography on Stage 1 Diamond Drillhole 14KLDH01

Petrography carried out on semi-massive sulphides intersected in 14KLDH01 (93.15 – 93.35m) shows sulphides consist of pyrite marcasite, violarite (oxidised Ni sulphide) and chalcopyrite (Photo 1 and Photo 2).

The Company’s consultant, Townend Mineralogy, note:

“The pyrite marcasite and violarite are secondary sulphides from the supergene zone that are the alteration products of underlying primary pyrrhotite and pentlandite. The chalcopyrite remains as an unaltered primary sulphide. The iron nickel sulphide assemblage plus some primary chalcopyrite is typical of WA komatiite ores above 120m”.

This provides confirmation of classic Kambalda type sulphide mineralogy and the prospectivity of the HWG prospect.

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Photo 1: Polished slide photo of 14KLDH01; 93.15 –93.5m

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Photo 2: Polished slide photo of 14KLDH01; 93.15 – 93.5m

Matsa’s recently completed diamond drillhole 14KLDH01 at HWG was designed to follow up a nickel sulphide intercept drilled by Sipa Resources in 2004 ( KLC21: 3m @ 0.49% Ni and 0.15% Cu) . 14KLDH01 was targeted on a strong conductor defined by a surface FLEM survey carried out by Matsa in 2013 which was interpreted to be a continuation of the

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sulphide intercept in KLC21 located 40m away. 14KLDH01 intersected variably disseminated to semi-massive sulphide (mostly pyrrhotite with lesser chalcopyrite and pyrite) over a downhole width of 14.65m, close to the contact between komatiite volcanics and underlying basalts. A 20cm band of Semi massive sulphides was confirmed by downhole EM surveys to be the target EM conductor and is included in the best Ni intercept of 1.35m @ 0.54% Ni from 93.15m downhole. (Refer MAT announcements to ASX; 16/6/2014, 20/6/2014, 31/7/2014).

Petrography has confirmed nickel sulphides as the source of this highly anomalous Ni intercept. The presence of Ni sulphides emphasises the potential for economic sulphide nickel mineralisation at Killaloe.

FLEM Survey 2014 (Refer MAT announcement to ASX 31/7/2014)

This survey was carried out to explore for potential extensions to conductors identified by earlier surface and DHEM surveys and associated nickel sulphide mineralisation at the HWG prospect. It also covered previously untested komatiites which are interpreted to extend towards the SE beneath overlying barren dolerite/gabbro (Figures 1 and 2). As previously announced, 3 target conductor plates were detected by this survey at modelled depths between 75m and 300m. The Stage 2 diamond drilling programme comprising 3 diamond drillholes was designed to test these.

Stage 2 Diamond Drilling

Stage 2 diamond drilling comprised 3 NQ diamond drillholes (14KLDH02 – 14KLDH04) which were completed for a total of 1,027m (Table 1, Figures 2 and 3).

Hole_ID	**Stage **	East	North	Depth	RL	Dip	Azimuth
14KLDH02	2	395163	6460218	230	312	-57.3	63.3
14KLDH03	2	395552	6460086	349	307	-72.9	259.8
14KLDH04	2	395533	6460421	447.7	297	-66	231.1

Table 1: Diamond Drill Hole Location, depth and orientation

Drillhole and assay parameters and methods are described in Appendix 1.

14KLDH02 (Refer MAT announcement to the ASX 4th September 2014)

Highly anomalous Ni results in drillhole 14KLDH02, represent mineralisation within a shear zone at the base of a cumulate ultramafic layer within a thick sequence of several ultramafic flows. The highest grade intersection ( 0.55m @ 0.91% Ni ) coincides with elevated Cu (1536ppm) and elevated Co (822ppm) at the base of a cloud of disseminated, laminated and blebby sulphide mineralisation dominated by pyrrhotite, pyrite and possible pentlandite that extends for 5m downhole from 106.3m. Key points regarding the intercept in this hole:

• A significant part of the mineralised intersection was unable to be tested because it includes a 1.8m interval of unrecovered core between 107.9 -109.7m. The core was not recovered because of geological conditions;

• The mineralised intercept corresponds to the modelled depth of the EM conductor; and

• Importantly drillhole 14KLDH02 did not intersect the basal contact between ultramafic komatiitic lavas and underlying basalt. It is this basal contact where the best mineralisation is expected. Matsa will deepen 14KLDH02 to test this key contact as shown in figure 2.

Drillholes 14KLDH03 and 14KLDH04

Diamond holes 14KLDH03 and 14KLDH04 targeted two deeper EM plates in the HW Gossan area which were interpreted as representing massive sulphides at the base of the ultramafic sequence. Both holes were collared in gabbro which overlies the HWG komatiite in the target area.

14KLDH03 intersected a metasomatised, brecciated and strongly sulphidic contact between gabbro and ultramafic komatiites at 199.4m which corresponds to the modelled depth of the EM Conductor. Highest nickel values (up to

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4148ppm Ni) were obtained below the modelled conductor in a sulphidic shale unit within the komatiite sequence at a depth of 274.8m (Table 2).

14KLDH04 passed through gabbro with intermittent komatiite bands to a depth of 400m which coincides with the modelled depth of the target conductor. At this depth the drillhole passed into komatiites with minor sulphidic shales to a final depth of 447m. A brecciated variably sulphide rich komatiite unit containing disseminated pyrrhotite, sphalerite and chalcopyrite was intersected between 191.65 to 221.1m which coincides with elevated Ni values up to 0.32%Ni as shown in Table 2.

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Figure 1: HWG Prospect Geological and Target Summary

Figure 2: Killaloe HWG conceptual geological target

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Hole ID	m from	m to	Ni_ppm	Cu_ppm	Co_ppm	Zn_ppm
14KLDH03	189	190	2027	214	136	198
14KLDH03	190	191	2391	432	195	99
14KLDH03	191	192	2196	272	152	51
14KLDH03	192	192.5	2185	201	138	44
14KLDH03	194.7	195.75	2285	531	285	194
14KLDH03	197.8	198	3198	291	489	352
14KLDH03	209.1	209.3	2031	134	304	147
14KLDH03	210.5	211.5	2188	1001	276	94
14KLDH03	213.95	214.55	2070	415	198	75
14KLDH03	277.8	282	2283	108	124	182
14KLDH03	282	286	4148	90	200	124
14KLDH03	286	287.6	2707	124	119	107
14KLDH03	319.2	321.05	2070	27	86	100
14KLDH04	172	174	2157	63	105	69
14KLDH04	176	180	2031	62	110	66
14KLDH04	200.8	203.85	3200	124	167	61
14KLDH04	205	207	2079	98	137	63
14KLDH04	207	209	2234	104	152	69
14KLDH04	213	215	2935	170	162	136
14KLDH04	215	216.85	2285	112	134	207
14KLDH04	422.65	423.2	2078	67	137	169

Table 2: HWG Prospect, Diamond Drill Programme significant assay results

Current Work Programme

Strongly elevated Ni results >0.4%Ni in three of the four diamond drillholes completed to date confirm the presence of nickel sulphides and provide strong encouragement for further exploration at HWG prospect. Furthermore the recent discovery of nickel sulphides along strike of Killaloe at Taipan by Sirius Resources Ltd provides additional encouragement and raises the prospectivity of the Eastern Ultramafic Belt (EUB).

A conceptual target zone for mineralisation at HWG based on drilling to date is presented as a longitudinal (along strike) projection in Figure 2. The conceptual target represents a classic Kambalda style nickel sulphide accumulation on the basal contact of the komatiite sequence.

Downhole EM survey of the Stage 2 diamond drillholes is now completed. A review and interpretation of the DHEM is underway to identify off-hole conductors which may indicate the presence of significant nickel sulphide mineralisation.

A recognised specialist nickel consultant has been engaged to carry out a detailed review of Matsa’s recent drilling and exploration database to assist with target definition at Killaloe.

Reprocessing and interpretation of high resolution aeromagnetic data over the Killaloe tenement is in progress. Results to date have highlighted a number of potential embayments along the basal contact of the EUB komatiite sequence which Matsa considers to be high priority exploration target areas for komatiite hosted nickel deposits.

Infill soil sampling program over interpreted basal contact locations is in progress.

A stratigraphic drilling programme is proposed based on results of the soil sampling and aeromagnetic interpretation.

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Project Background

Nickel sulphide exploration at Killaloe has been focused on 2 belts of ultramafic rocks, namely the Western Ultramafic Belt (WUB) and the Eastern Ultramafic Belt (EUB). Documented past exploration for nickel over the Killaloe project commenced in the 1960’s and 1970’s by companies including Anaconda, Union Oil and Western Mining.

More recent nickel exploration commencing in the early 2000’s was carried out by Cullen Resources via joint ventures with Sipa Resources and Australian Nickel. Results from this work have been compiled into a comprehensive database comprising aeromagnetic/radiometric surveys, geological mapping, sampling, ground electromagnetic surveys and drilling. Reports based on this work point to similarities between rock units making up the WUB and EUB at Killaloe with the mafic ultramafic sequence containing the Widgiemooltha and Kambalda nickel deposits some 60km and 100km respectively to the NW.

Drilling in the WUB by Sipa in 2004 achieved a sulphide nickel intercept of 3m @ 0.49% Ni and 0.15% Cu (RC drill hole KLC21) at the Hanging Wall Gossan (HWG) prospect. More recently, in July 2014, Ni sulphides were discovered by Sirius Resources at the Taipan prospect which is located 9km NW of the Killaloe project in ultramafic komatiite lavas which appear to be an extension of the Eastern Ultramafic Belt at Killaloe. (Figure 1) (SIR report to ASX 16/7/2014).

The Killaloe Project is a joint venture between Matsa 80% and Cullen Resources Limited 20%. Exploration under the joint venture is managed by Matsa.

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Figure 3: Killaloe Project over Regional Magnetic Image

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For further Information please contact: Paul Poli Executive Chairman

Phone +61 8 9230 3555 Fax +61 8 9227 0370 Email reception@matsa.com.au Web www.matsa.com.au

Exploration results

The information in this report that relates to Exploration results, is based on information compiled by Richard Breyley, who is a Member of the Australasian Institute of Mining and Metallurgy. Richard Breyley is a full time employee of Matsa Resources Limited. Richard Breyley has sufficient experience which is relevant to the style of mineralisation and the type of ore deposit under consideration and the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Richard Breyley consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Appendix 1 - Matsa Resources Limited - Killaloe JV Project

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

	Criteria	JORC Code explanation	Commentary
	Sampling	 Nature and quality of sampling (eg cut channels, random chips,	XRF Analysis on HQ core using a handheld Olympus Innovx
	techniques	or specific specialised industry standard measurement tools	Delta Premium (DP4000C model) XRF analyser.
		appropriate to the minerals under investigation, such as down	Measurements were taken on surface of the core and depth
		hole gamma sondes, or handheld XRF instruments, etc). These	intervals recorded.
		examples should not be taken as limiting the broad meaning of	Core was quartered and sampled to lithological boundaries
		sampling.	within the areas of interest, otherwise 4m composites were
		 Include reference to measures taken to ensure sample	sampled and submitted to laboratory for analysis.
		representivity and the appropriate calibration of any
		measurement tools or systems used.
		 Aspects of the determination of mineralisation that are Material
		to the Public Report.
		 In cases where ‘industry standard’ work has been done this
		would be relatively simple (eg ‘reverse circulation drilling was
		used to obtain 1 m samples from which 3 kg was pulverised to
		produce a 30 g charge for fire assay’). In other cases more
		explanation may be required, such as where there is coarse
		gold that has inherent sampling problems. Unusual
		commodities or mineralisation types (eg submarine nodules)
		may warrant disclosure of detailed information.
	Drilling	 Drill type (eg core, reverse circulation, open-hole hammer,	Core drilling carried out by Frontline drilling using a track-
	techniques	rotary air blast, auger, Bangka, sonic, etc) and details (eg core	mounted Desco 7000 diamond drill rig. HQ triple tube was
		diameter, triple or standard tube, depth of diamond tails, face-	drilled from surface till competent rock was encountered, the
		sampling bit or other type, whether core is oriented and if so, by	the hole were completed with NQ. Core is oriented using Reflex
		what method, etc).	ACT II RD digital core orientation tool.
	Drill sample	 Method of recording and assessing core and chip sample	Core was lithologically and structurally logged.
	recovery	recoveries and results assessed.
		 Measures taken to maximise sample recovery and ensure
		representative nature of the samples.
		 Whether a relationship exists between sample recovery and
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	Criteria	JORC Code explanation	Commentary
		grade and whether sample bias may have occurred due to
		preferential loss/gainof fine/coarse material.
	Logging	 Whether core and chip samples have been geologically and	Geologic and geotechnical logging carried out on the core.
		geotechnically logged to a level of detail to support appropriate	Logging recorded as qualitative description of colour,
		Mineral Resource estimation, mining studies and metallurgical	lithological type, grain size, structures, minerals and alteration.
		studies.	All cores are photographed using a digital camera.
		 Whether logging is qualitative or quantitative in nature. Core (or
		costean, channel, etc) photography.
		 The total length and percentage of the relevant intersections
		_logged. _
	Sub-	 If core, whether cut or sawn and whether quarter, half or all	Cores were sawn and quarter split prior to sampling and
	sampling	core taken.	submitted to the lab.
	techniques	 If non-core, whether riffled, tube sampled, rotary split, etc and
	and sample preparation	whether sampled wet or dry.  For all sample types, the nature, quality and appropriateness of the sample preparation technique.
		 Quality control procedures adopted for all sub-sampling stages
		to maximise representivity of samples.
		 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.
		 Whether sample sizes are appropriate to the grain size of the
		material being sampled.
	Quality of	 The nature, quality and appropriateness of the assaying and	Olympus Innovx Delta Premium (DP4000C model) handheld
	assay data	laboratory procedures used and whether the technique is	XRF analyser.
	and laboratory tests	considered partial or total.  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.	Reading times employed was 90 sec/beam for a total of 270 sec using Soil Mode. Handheld XRF QAQC includes duplicates, standards and blanks.
		 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.
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	Criteria	JORC Code explanation	Commentary
	Verification	 The verification of significant intersections by either	Not carried out because laboratory QA QC procedures are
	of sampling	independent or alternative company personnel.	regarded as sufficient.
	and	 The use of twinned holes.	Data entry carried out by field personnel thus minimizing
	assaying	 Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	transcription or other errors. Trial plots in field and rigorous database procedures ensure that field and assay data are
		 Discuss any adjustment to assay data.	merged accurately.
	Location of	 Accuracy and quality of surveys used to locate drill holes (collar	Drill collars are surveyed by modern hand held GPS units	with
	data points	and down-hole surveys), trenches, mine workings and other	accuracy of 5m which is sufficient accuracy for the purpose of
		locations used in Mineral Resource estimation.	compiling and interpreting results.
		 Specification of the grid system used.	Topographic control 2-5m accuracy using published maps or
		 Quality and adequacy of topographic control.	Shuttle Radar data is sufficient to evaluate topographic effects
			on assay distribution.
	Data	 Data spacing for reporting of Exploration Results.	Not known at this stage.
	spacing and	 Whether the data spacing and distribution is sufficient to
	distribution	establish the degree of geological and grade continuity
		appropriate for the Mineral Resource and Ore Reserve
		estimation procedure(s) and classifications applied.
		 _Whether sample compositing has been applied. _
	Orientation	 Whether the orientation of sampling achieves unbiased	Diamond drill hole is oriented perpendicular to target and	at a
	of data in	sampling of possible structures and the extent to which this is	high angle to the modeled EM conductor.
	relation to	known, considering the deposit type.
	geological structure	 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.
	Sample	 The measures taken to ensure sample security.	Sampling intervals marked up on core accompanied by
	security		separate printed cutting interval sheet. Core trays to be
			secured with straps on a pallet for transport to the core cutting
			contractor.
	Audits or	 The results of any audits or reviews of sampling techniques	N/A
	reviews	and data.
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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

	Criteria	JORC Code explanation	Commentary
	Mineral	 Type, reference name/number, location and ownership	Cullen Exploration owns the tenements and Matsa has farmed
	tenement	including agreements or material issues with third parties such	in to the Killaloe Project and has earned 80% interest in the
	and land	as joint ventures, partnerships, overriding royalties, native title	project after spending $500,000 in exploration costs.
	tenure status	interests, historical sites, wilderness or national park and environmental settings.  The security of the tenure held at the time of reporting along	The project consists of 2 ELs and 4 Prospecting licenses. The Project is Located on Vacant Crown Land. The project is located within Native Title Claim No. 99/002 by
		with any known impediments to obtaining a license to operate	the Ngadju people.
		in the area.	A heritage agreement has been signed and exploration is
			carried out within the terms of that agreement.
			At the time of writing these licenses expire between 14thJune
			2013 and 8thJuly 2017.
	Exploration	 Acknowledgment and appraisal of exploration by other parties.	Significant past work has been carried out by other parties for
	done by		both Ni and Au exploration including, surface geochemical
	other parties		sampling, ground electromagnetic surveys, RAB, AC, RC and DD drilling.
	Geology	 Deposit type, geological setting and style of mineralisation.	Target is Kambalda style Ni hosted in ultramafic rocks within
			the project.
	Drill hole	 A summary of all information material to the understanding of	Co ordinates and other attributes of diamond drillholes are
	Information	the exploration results including a tabulation of the following	included in Table 1.
		information for all Material drill holes:
		o easting and northing of the drill hole collar
		o elevation or RL (Reduced Level – elevation above sea level
		in metres) of the drill hole collar
		o dip and azimuth of the hole
		o down hole length and interception depth
		o 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. _
	Data	 In reporting Exploration Results, weighting averaging	Exploration results are weight average where applicable,no
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	Criteria	JORC Code explanation	Commentary
	aggregation	techniques, maximum and/or minimum grade truncations (eg	cut-off grade applied.
	methods	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. _
	Relationship	 These relationships are particularly important in the reporting of	All intercepts reported are measured in down hole metres.
	between	Exploration Results.
	mineralisatio	 If the geometry of the mineralisation with respect to the drill
	n widths and	hole angle is known, its nature should be reported.
	intercept lengths	 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’).
	Diagrams	 Appropriate maps and sections (with scales) and tabulations of	Suitable summary plans have been included in the body	of the
		intercepts should be included for any significant discovery	report.
		being reported These should include, but not be limited to a
		plan view of drill hole collar locations and appropriate sectional
		_views. _
	Balanced	 Where comprehensive reporting of all Exploration Results is	Not required at this stage.
	reporting	not practicable, representative reporting of both low and high
		grades and/or widths should be practiced to avoid misleading
		_reporting of Exploration Results. _
	Other	 Other exploration data, if meaningful and material, should be	Ni sulphides (1.35m @ 0.54% Ni from 93.35m 14KLD01;	3m @
	substantive	reported including (but not limited to): geological observations;	0.49% Ni from 88m – includes 1m @ 0.65% Ni and 1m @
	exploration data	geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock	0.52% Ni from 99m) reported in previous RC drill hole (KLC21) nearby. No DHTEM reported.
		characteristics; potential deleterious or contaminating
		_substances. _
	Further work	 The nature and scale of planned further work (eg tests for	Down hole TEM (DHTEM) is proposed.
		lateral extensions or depth extensions or large-scale step-out	Further DDdrilling to define continuity of nickelsulphide
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Matsa Resources Limited
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Criteria	JORC Code explanation	Commentary
	drilling).	mineralization within the komatiite host rock pending results of
	 Diagrams clearly highlighting the areas of possible extensions,	the DHTEM.
	including the main geological interpretations and future drilling
	_areas, provided this information is not commercially sensitive. _

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