MATSA RESOURCES LIMITED — Capital/Financing Update 2010

Apr 22, 2010

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ABN 48 106 732 487

ASX Announcement

23 April 2010

Norseman Project Update

Matsa Resources Limited (ASX:MAT, “ Matsa ” or the “Company”) announces that due to the positive progression of discussions with interested parties with respect to the Norseman Gold and Iron Project, the Company has decided to defer a decision to commence small scale mining activities until such time that these discussions are completed, which is expected to be within the next twelve weeks.

The Company has been working to commence small scale mining of its high grade gold resources at Mt Henry and North Scotia deposits. This work is almost complete and will allow the commencement of mining activities at short notice at those deposits in accordance with the ASX Announcements made on the 31st March, 10th June and 12[th] August 2009. The planned operations were being brought about to enable the Company to realise a positive cash flow which would enable the Company to continue its operations without the need of raising funds via debt or further issues of shares at low and unattractive share prices which would have a dilutive effect to existing shareholders.

As a result of the significant share placement at a very attractive price to The Shandong Provincial Bureau of Geology and Mineral Resources (“SDGM”) made in January 2010, and approved by FIRB as announced on the 25 March 2010, the Company is now in a financial position to determine its development strategy and to give all options available to it full consideration in a more detailed and structured way. These options include a potential joint venture of its large scale Norseman Gold Project and commencement of a new scoping study and /or feasibility study concerning separate or combined large scale gold and magnetite operations.

The Company has recently welcomed Mr Frank Sibbel to the Company as Project Manager and Mr Dave Fielding as Exploration Manager – Iron Ore. Both are highly credentialed professionals with over 30 years Industry experience and will help drive reviews of all available options and manage future activities for both Gold and Iron development at the Norseman Project.

Paul Poli

Executive Chairman

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

Head Office: Suite 11, 139 Newcastle Street, Perth Western Australia 6000 Kalgoorlie Office: Suite 1, Vosper House, 31-33 Dugan Street, Kalgoorlie 6430 Bangkok Office: Unit 1808, 2 Pacific Place, Sukhumvit Road, Sukhumvit Bangkok reception@matsa.com.au www.matsa.com.au

Tel : +61 8 9230 3555 Fax : +61 8 9227 0370 Tel: +61 8 9021 7200 Fax: +61 8 9021 7277 Tel: +66 0 2653 0258 Fax: +66 0 2653 0258

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PROJECT BACKGROUND

The Norseman Project covers 124km[2 ] of the southern Norseman-Wiluna Greenstone belt in Western Australia. In February 2009 the Company reported a total Resource of 26.5 Mt for 1.47 million ounces of gold. During 2009 the Company has progressed a small scale, high-grade mining strategy and is currently finalising mining approval with stakeholders, including relevant government departments. The Company is reassessing its commitment to small scale mining depending on the outcome of discussions with SDGM.

Norseman Gold Project Resources(>1g/t Au)				A limited amount of work within the NorsemanProjectareahasincludedsomepreliminaryassessment of the Iron Ore potential. Following initialsurface sampling and mapping the Company engagedHematite Consultants Pty Ltd to conduct a preliminaryreport on the potential of Iron Ore within the area.This study said that the project contains a typicalArchaean Banded Iron Formation which is generallyvery fine-grained and finely laminated except in thesouthern areas near Selene where metamorphismappears to have increased grain size of magnetite. Thestudy has further concluded that potential does existfor a magnetite resource and a limited hematiteresource. Several recommendations were made by theconsultant to commence the evaluation of a projectwith a magnetite exploration target of between 350million to 700million tonnes.As the Gold Resource at Norseman is largely hosted inmagnetite rich rocks, the Company is also evaluatingthe concept of a mining and processing operation thatrecovers both gold and magnetite.
	Tonnes(Million)	Grade(g/t)	Ounces
Indicated
Mt HenrySeleneNorth ScotiaTotal	5.611.80.217.6	1.9 1.6 5.21.8	350,000 600,000 36,000990,000
Inferred
Mt HenrySeleneNorth ScotiaAbbotshallTotal	4.93.10.30.58.9	1.8 1.4 2.2 2.01.7	280,000 140,000 24,000 30,000480,000
Grand Total	26.5	1.7	1,470,000

Competent Persons Statement

Exploration Target

Under Clause 18 of the JORC Code the exploration targets (excluding the portion already classified into JORC resource) outlined in this report are conceptual in nature as there has been insufficient exploration to define additional mineral resources; it is uncertain if further exploration will result in the determination of any additional mineral resources.

Exploration results, mineral resources and reserves

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves 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. 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 2004 Edition of the ‘Australasian Code for Reporting of 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

ASX 23 April 2010

MATSA RESOURCES LIMITED

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