MATSA RESOURCES LIMITED — Capital/Financing Update 2012

Aug 16, 2012

Mt Henry Gold Project Acquisition

17 August 2012

ASX: PAN

Completion of Mt Henry Gold Project Acquisition

Highlights

Panoramic Resources Limited ( “Panoramic” ) is pleased to announce that its wholly owned subsidiary, Mt Henry Gold Pty Ltd, has completed the 70% purchase of the Mt Henry Gold Project from Matsa Resources Limited (“ Matsa ”).

Details

• Panoramic has acquired a 70% equity interest in the Mt Henry Gold Project.

• At completion, Panoramic paid the $3.5 million balance owing on the $5 million cash consideration and issued 14 million new Panoramic shares to Matsa.

• Matsa has entered into a voluntary escrow agreement over two-thirds of the issued shares in Panoramic. One-third of the shares are subject to escrow restrictions until 16 November 2012, with the other one-third to remain in escrow until 15 February 2013.

Investment Rationale

The acquisition of the Mt Henry project has a number of benefits for Panoramic, including:

• Adds a significant resource base of >1.0Moz Au with exploration upside

• Potential production profile of ~100,000oz pa for seven years (excluding production from North Scotia)¹

• Advances Panoramic’s stated diversification strategy of building a significant gold business

Mt Henry Resources (70% Equity Basis)

Mt Henry Project 70%	Mt Henry Project 70%	Mt Henry Project 70%	Mt Henry Project 70%	Mt Henry Project 70%	Mt Henry Project 70%	Mt Henry Project 70%	Mt Henry Project 70%	Mt Henry Project 70%	Mt Henry Project 70%	Mt Henry Project 70%	Mt Henry Project 70%
Selene		Feb-08	-	-	8,243,000	1.59	2,183,000	1.44	10,426,000	1.56	522,500
Mt Henry		Sep-09	-	-	4,112,000	1.93	3,569,000	1.76	7,680,000	1.85	457,100
North Scotia		Feb-09	-	-	150,000	5.2	241,000	2.17	391,000	3.33	42,000
Sub total			-	-	12,505,000	1.75	5,993,000	1.66	18,497,000	1.72	1,021,600
Total*			-	-	18,710,000	2.36	9,429,000	2.14	28,139,000	2.29	2,070,200

*Note: Totals may not add due to rounding.

1. Refer to Kalgoorlie-Boulder Resources (ASX: KAL) announcement dated 17 April 2008

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Panoramic’s Pipeline of Projects

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Competent Persons Disclosure

Mt Henry Project

• Mt Henry Project resource cutoff grades are 1.0 g/t

• Individual Project Resources are stated on an equity basis

The information in this report that relates to the Mt Henry Project Mineral Resources is based on information compiled by or reviewed by Richard Breyley (MAusIMM). Richard Breyley is a full time employee of Matsa Resources Ltd. Richard Breyley has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australian 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 their information in the form and context in which it appears

About the Company

Panoramic Resources Limited (ASX Code PAN , ABN 47 095 792 288) is an established Western Australian mining company operating two 100% owned underground nickel sulphide mines, the Savannah Project in East Kimberley, and the Lanfranchi Project near Kambalda, Western Australia. On a Group basis, Panoramic produced a record 19,791t of nickel contained in FY2012 and is forecasting to produce between 18,000 and 19,000t of nickel in FY2013. Panoramic is an S&P/ASX Top 200 Company with a strong balance sheet, minimal bank debt and a growing nickel, gold and PGMs resource base, employing more than 500 people.

Panoramic’s Gold Resources now contain 2.07M oz of gold. Panoramic recently released a Scoping Study on the recommencement of gold production from Gidgee and will now commence a Bankable Feasibility Study on the Mt Henry Gold Project.

The Company has recently expanded into Platinum Group Metals (PGMs) with the purchase of the Panton PGM Project located approximately 60km south of the Savannah Project in the East Kimberley, which contains approximately 1.0Moz of Pt and 1.1Moz of Pd in Resource. Following the takeover of Magma Metals, Panoramic also owns the Thunder Bay North PGM Project in northern Ontario, Canada which contains approximately 0.4Moz Pt and 0.4Moz Pd and a suite of exploration projects for gold and base metals in Western Australia.

The Company’s vision is to broaden its exploration and production base, with the aim of becoming a major, diversified mining house in the S&P/ASX Top 100 Index.

For further information contact: Peter Harold Managing Director +61 8 9225 0999

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