MATSA RESOURCES LIMITED — Capital/Financing Update 2017

Dec 7, 2017

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LIMITED ABN 48 106 732 487

ASX Announcement

8 December 2017

Share Placement to Advance the Red Dog

and Red October Gold Projects

Highlights

• As a result of approaches from clients principally of Mr Sung Yoon Chon who is a trading representative of UOB Kay Hian in Singapore, Matsa has undertaken a placement of 11 million shares. The placement is expected to:

  • introduce new sophisticated investors to the Company

  • generate further investor interest in Matsa whilst it develops its exciting portfolio of quality projects

  • Raise $2,475,000 which will be used to advance the Red Dog and Red October gold projects towards production

CORPORATE SUMMARY

Executive Chairman

Paul Poli

Director

Frank Sibbel

Director & Company Secretary

Andrew Chapman

Shares on Issue

161.05 million

• The placement is via the issue of 11 million shares at $0.225 per share (incl. a free 1 for 3 unlisted option)

Unlisted Options

9.925 million @ $0.25 Top 20 shareholders Hold 54.62%

Share Price on 5[th] December 2017

23 cents

Market Capitalisation

$37.04 million

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Matsa Resources Limited (“Matsa” or “the Company” ASX: MAT) is pleased to advise that it has received firm commitments principally from Mr Sung Yoon Chon who is a trading representative of UOB Kay Hian in Singapore for a placement to sophisticated and professional investors to raise $2.48M.

UOB Kay Hian is one of Asia’s largest brokerage firms. Headquartered in Singapore, they are supported by more than 80 branches worldwide including a growing network of offices across Southeast Asia, Greater China, the United Kingdom and North America.

Matsa Executive Chairman, Mr Paul Poli said “I am delighted with the introduction of new and key investors into the Company who have demonstrated a strong interest in Matsa and who understand what Matsa is about. The issue was intended to attract a high calibre of investor, who I am sure will keenly follow through with their interest in Matsa. The funds raised from this placement will go into mining studies on the Red Dog and Red October gold projects with a view to assessing the opportunity to commence mining there in the 2018 calendar year.”

Mr Poli added “ This is the first capital raising Matsa has conducted in over four years and was done to principally introduce new key investors onto our share register and who share our objectives. I am extremely satisfied with the outcome and welcome the new investors aboard.”

The Company will issue 11M fully paid ordinary shares at an issue price of $0.225 each for a total consideration of $2.48M before costs. In addition allottees will receive one free unlisted option for every three shares subscribed for with an exercise price of $0.30 each and expiring 30 November 2019.

This placement will be completed pursuant to the Company’s issuing capacity under Listing Rule 7.1 at the upcoming allotment date next week.

The funds raised will be used as follows:

• Red Dog gold project – conduct mining studies and complete approvals for the potential mining scenario of the project;

• Red October gold project – assessment of exploration opportunities both within the Red October mine and exploration ground as well as assess the opportunity to potentially recommence mining at Red October;

• General working capital – the funds will also be used as general working capital to advance the overall exploration and development of the Lake Carey project, company administration and corporate requirements.

The Company would like to thank Mr Sung Yoon Chon in Singapore for his support.

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

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