MATSA RESOURCES LIMITED — Capital/Financing Update 2017

Mar 30, 2017

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Matsa Resources Limited
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LIMITED ABN 48 106 732 487

ASX Announcement

31st March 2017

New Acquisition Expands Lake Carey Gold Project

Highlights

• Matsa has acquired a 90% interest in 2 EL’s (E39/1796 and E38/2938) with a combined area of 43.32 km[2 ] at Lake Carey

• E39/1796 is contiguous with AngloGold Ashanti’s Sunrise Dam gold project and is located north of Matsa’s 354,600oz (JORC 2012) Fortitude gold deposit

• This JV significantly increases the Company’s exploration footprint in the highly prospective Laverton tectonic zone

• A review of past exploration within the new JV area is currently underway

CORPORATE SUMMARY

Executive Chairman

Paul Poli

Director

Frank Sibbel

Director & Company Secretary

Andrew Chapman

Shares on Issue

144.7 million

Unlisted Options

17.02 million @ $0.25 - $0.30

Top 20 shareholders

Hold 53.12%

Share Price on 31[st] March 2017

20 cents

Market Capitalisation

$28.94 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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Matsa Resources Limited (“Matsa” or “the Company” ASX: MAT) is pleased to advise that is has taken another significant step to expand the exploration area at Lake Carey gold project through acquisition of a 90% interest in two exploration licences (E39/1796 and E38/2938) as shown in Figure 1. The two licences have a combined area of 43.32 km[2] . The acquisition represents a significant expansion of Matsa’s Lake Carey gold project where an extensive aircore drilling programme is currently underway (assays pending) and commencement of trial mining of the Fortitude gold deposit expected mid-2017.

The acquisition has increased Matsa’s exploration footprint at Lake Carey to 425.2 km[2] in the highly prospective Laverton tectonic zone, close to a number of important gold mines including Red October (Saracen), Sunrise Dam (AngloGold Ashanti PLC), and the Granny Smith and Wallaby mines operated by Goldfields Ltd (Figure 1).

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Figure 1: Matsa’s Lake Carey Project and major company holdings on aeromagnetic image

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Matsa Resources Limited
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Both tenements are situated over major faults as interpreted from aeromagnetics and past drilling and Matsa believes both licences could be highly prospective for gold mineralisation. A review of past exploration within these licences is currently underway. Salient aspects of the two tenements are summarised in Table 1.

Tenemen	tType	**Status **	**Holders **	Holder 1	Granted	Area	**Unit **	Area(km2)
E39/1796	EXPLORATION LICENCE	LIVE	1	LEGENDRE, BRUCE ROBERT	23/02/2015	10	BL.	26.47
E38/2938	EXPLORATION LICENCE	LIVE	1	LEGENDRE, BRUCE ROBERT	23/02/2015	6	BL.	16.85

Table 2: Exploration Licences where Matsa has acquired a 90% interest

Terms of Agreement

Matsa to acquire 90% of E39/1796 and E38/2938 on the following terms:

• Payment of $20,000 on signing of term sheet (completed)

• Matsa to free carry vendor to completion of feasibility study for remaining 10%

• Vendor can dilute to a 1.5% NSR royalty if vendor decides not to contribute from completion of feasibility study

• A joint venture agreement to be negotiated together with deeds of cross charges and other documents customary for a production joint venture to be entered into in good faith by both parties.

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

Competent Person

The information in this report that relates to Exploration results, is based on information compiled by David Fielding, who is a Fellow of the Australasian Institute of Mining and Metallurgy. David Fielding is a full time employee of Matsa Resources Limited. David Fielding 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’. David Fielding 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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