MATSA RESOURCES LIMITED — Capital/Financing Update 2019

May 19, 2019

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Matsa Resources Limited
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LIMITED ABN 48 106 732 487

ASX Announcement

20[th] May 2019

5 Year Ore Purchase Agreement

Red October Gold Mine

Highlights

• An Ore Purchase Agreement with AngloGold Ashanti Australia Limited has been executed for ore produced from the Red October gold mine for a period of up to 5 years

CORPORATE SUMMARY

Executive Chairman

Paul Poli

Director

• Ore produced from the Red October gold mine to be processed at the Sunrise Dam gold mine

Frank Sibbel

Director & Company Secretary

• The Ore Purchase Agreement is based on previous successful relationship between Matsa and AngloGold Ashanti Australia Limitedand underpins the detailed MOU between the companies

Andrew Chapman

Shares on Issue

176.93 million

• This agreement provides Matsa with a long term processing option for Red October ore

Unlisted Options

~22.4 million @ $0.17 - $0.30

Top 20 shareholders

Hold 53.42%

Share Price on 17[th] May 2019

13.5 cents

Market Capitalisation

$23.88 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

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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 it has executed an Ore Purchase Agreement (Agreement) with AngloGold Ashanti Australia Limited (AGAA) for the purchase of ore from the Red October mine which is to be treated at the AGAA-owned Sunrise Dam gold mine, for up to 5 years.

Whilst the terms of the agreement remain confidential, the costs and revenues of the ore purchase agreement are entirely consistent with the parameters applied in the previously published mining studies.

The 3.8 million tonne per annum mill at the Sunrise Dam gold mine is located approximately 60 kms from the Red October gold mine and provides Matsa with access to a nearby milling solution for its Stage 1 production ore and for a further 4.5 years thereafter. Matsa has previously successfully delivered ore from its Fortitude and Red Dog gold mines to Sunrise Dam and is therefore confident in the outcomes of the ore processed there.

Matsa will be responsible for mining and transporting the ore to Sunrise Dam with AGAA taking possession of ore once delivered.

The execution of the Agreement will allow Matsa to continue to progress mining at the Red October gold mine at a relatively low capital cost.

Matsa’s Executive Chairman, Mr Paul Poli said “The execution of the Agreement with AngloGold Ashanti continues our strong relationship and builds on the MOU both parties entered into in mid2018. Previous mining campaigns at Fortitude and Red Dog have been successfully processed at Sunrise Dam with minimal fuss and we expect this to be no different. The fact that AngloGold are prepared to potentially accept all ore from Red October for up to 5 years is testament to this as Matsa looks to develop a longer term mine plan in the future.”

While production has commenced at Red October as previously advised there has been a methodical build up to bringing ore to surface as finalisation of a number of items is completed and to ensure that an ore purchase agreement was in place to ensure an orderly transition into full scale mining. It is expected that first delivery of ore to Sunrise Dam will occur by the end of June 2019.

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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