MATSA RESOURCES LIMITED — Capital/Financing Update 2019

Jul 25, 2019

==> picture [595 x 56] intentionally omitted <==

----- Start of picture text -----

Matsa Resources Limited
----- End of picture text -----

==> picture [132 x 117] intentionally omitted <==

LIMITED ABN 48 106 732 487

ASX Announcement

26[th] July 2019

First Gold Ore Haulage Commenced

Red October Gold Mine

Highlights

• Haulage of gold ore from the Red October gold mine to Anglogold’s Sunrise Dam gold treatment plant has now commenced

CORPORATE SUMMARY

Executive Chairman

Paul Poli

Director

• It is expected that regular ore deliveries will now occur under the 5 year Ore Purchase Agreement with AngloGold

Frank Sibbel

Director & Company Secretary

Andrew Chapman

Shares on Issue

176.93 million

Unlisted Options

~22 million @ $0.17 - $0.30

Top 20 shareholders

Hold 53.42%

Share Price on 25[th] July 2019

16 cents

Market Capitalisation

$28.31 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 1801, 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

==> picture [596 x 60] intentionally omitted <==

----- Start of picture text -----

Matsa Resources Limited
----- End of picture text -----

Matsa Resources Limited (“Matsa” or “the Company” ASX: MAT) is pleased to advise that delivery of its first ore from the Red October gold mine to the Sunrise Dam gold treatment plant owned by AngloGold Ashanti Australia Limited (“AGAA”) has commenced with haulage trucks arriving on site Thursday afternoon.

As previously advised, Matsa executed a 5 years Ore Purchase Agreement (Agreement) with AGAA for the purchase of gold ore from the Red October gold mine which is to be treated at the AGAAowned Sunrise Dam gold mine.

AnlgoGold Ashanti’s Sunrise Dam treatment plant situated at the Sunrise Dam Gold mine, is a 3.8 million tonne per annum mill and is located approximately 10 kms north of the Red October gold mine and provides Matsa with access to a substantial and modern nearby milling facility. The haulage route is a predominately Matsa owned and maintained road around Lake Carey with a distance of 60 kms between Red October and Sunrise Dam. Matsa has previously successfully delivered ore from its Fortitude and Red Dog gold mines to Sunrise Dam.

Matsa’s Executive Chairman, Mr Paul Poli said “The delivery of first ore from the Red October gold mine is another significant milestone for both Matsa and its shareholders. It is expected that this will be the start of regular, continuous ore deliveries to Sunrise Dam for the foreseeable future generating a regular income stream in the process.

Under the previously announced ore purchase agreement, AngloGold are keen to accept potentially all ore from Red October for up to 5 years allowing us to focus on developing a long term production profile.

We remain committed and are confident that we can build a long term profitable mine at Red October.”

==> picture [452 x 339] intentionally omitted <==

Figure 1: Red October ore bound for Sunrise Dam treatment plant

Page 2

==> picture [596 x 60] intentionally omitted <==

----- Start of picture text -----

Matsa Resources Limited
----- End of picture text -----

==> picture [452 x 340] intentionally omitted <==

Figure 2: High grade ore within Red October Shear Zone (ROSZ) North 1260 Level

==> picture [470 x 229] intentionally omitted <==

Figure 3: High grade ore from ROSZ with visible gold

Page 3

==> picture [596 x 60] intentionally omitted <==

----- Start of picture text -----

Matsa Resources Limited
----- End of picture text -----

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

Page 4