MATSA RESOURCES LIMITED — Capital/Financing Update 2021

Aug 1, 2021

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Matsa Resources Limited
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ASX Announcement

2[nd] August 2021

Matsa’s Gold Resource Grows to 727,000oz Lake Carey Gold Project

Highlights

CORPORATE SUMMARY

Executive Chairman

• The Lake Carey Mineral Resource grows to 727,000oz @ 2.63g/t Au following an upgrade of the Lionfish prospect at Red October

• The upgrade in Lionfish Mineral Resource Estimate to 54koz @ 7.4g/t Au (2g/t cut-off) represents a 159% increase against previous estimates of 21koz @ 5.6g/t Au

• The Red October Mineral Resource now stands at 206koz @ 6.1g/t Au , which compares favourably against the previous estimate of 173koz @ 5.8g/t Au

• Encouragingly, the 32% increase in grade at Lionfish from 5.58g/t to 7.36g/t demonstrates the high grade nature of the prospect and value gained from additional drilling

• The Lionfish mineral resource now covers an area of 400m by 400m and remains open along strike and at depth and comprises multiple lodes

• Modelling suggests strong exploration potential exists where the Lionfish structure is interpreted to intersect the new Western target interpreted from seismic and SAM data as announced in December 2020[1]

• Further exploration drilling at Red October is planned for Lionfish as well as testing the new Western and Eastern targets and potential extensions at Nemo

• The exploration drilling is planned to commence in the coming months

Matsa Executive Chairman Mr Paul Poli commented:

“Another great achievement from the Matsa team as we continue to grow our mineral resource at Lake Carey and build towards a significant project of scale that gets us closer to Matsa establishing our own processing plant.

Paul Poli

Directors

Frank Sibbel Pascal Blampain

Director & Company Secretary

Andrew Chapman

Shares on Issue

358.15 million

Listed Options

28.12 million @ $0.17

Unlisted Options

65.38 million @ $0.17 - $0.35

Top 20 shareholders

Hold 55.41%

Share Price on 30[th] July 2021

6.6 cents

Market Capitalisation

$23.64 million

There still remains significant exploration potential across the mining hubs at Lake Carey and with further drilling already planned we look forward to providing results to market and growing Lake Carey further.

1 ASX Announcement 14 December 2020 - High Grade Results and Resource Review Red October

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | reception@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 announce a Mineral Resource Estimate (MRE) update at Matsa’s Red October underground operation following completion of modelling of the exploration drilling at Lionfish.

The Red October MRE now stands at 1,045,000t @ 6.1g/t Au for 206,000oz and represents a 19% increase in resource ounces and a 6% increase in overall resource grade.

Lionfish Resource Model

Matsa previously completed 19 diamond drill holes for 1,919m to test the grade and continuity of mineralisation within the Lionfish prospect at the Red October underground mine. Select highlights of the drilling results[2,3,4] listed below illustrate the high grade potential of the Lionfish prospect:

ROGC747 1.7m @ 68.3g/t Au from 28.5m (Lionfish HW 357) ROGC749 2.0m @ 16.1g/t Au from 56m (Lionfish HW 356) ROGC751 0.3m @ 161.5g/t Au from 37.5m (Lionfish HW 357) ROGC767 5.50m @ 5.60g/t Au from 70.0m (Lionfish HW 356) ROGC768 2.02m @ 9.30g/t Au from 45.0m (Lionfish HW 356) ROGC769 0.38m @ 15.05g/t Au from 20.22m (Lionfish HW 357) ROGC770 5.7m @ 27.94g/t Au from 50.3m (Lionfish Splay 555) ROGC771 0.6m @ 25.7g/t Au from 23.57m (Lionfish HW 357) ROGC794 1.0m @ 17.45g/t Au from 48.1m (Lionfish Splay 555) ROGC796 2.7m @ 5.2g/t Au from 78.9m (Lionfish new lode)

The Lionfish lodes are located less than 200m west of the main Red October Shear Zone (ROSZ) and Marlin development (refer Figure 1) which have been the focus of underground production at Red October. Late during Saracen’s tenure the Lionfish lode was briefly accessed prior to Saracen’s divestment of the Red October mine, associated infrastructure and exploration tenure to Matsa.

The Lionfish lode(s) present a significant opportunity to provide Matsa with another mining front to the established ROSZ and Marlin mining areas that should provide improved operational flexibility and efficiencies. Further drilling is required to establish sufficient mineral resources that could lead to establishing ore reserves upon which a long term mine plan can be designed.

Modelling was completed in Leapfrog (geological wireframing) and Surpac (grade interpolation) 3D software. Ore lodes and grades are well constrained with sharp boundaries between ore and waste noted in the modelling and logging. The Lionfish area has been modelled as 2 main lodes (356 and 357) and a further 3 splay structures (555, 556 and 562) have been modelled as linking for the main 2 lodes. All 5 modelled lodes are striking ~grid north and dipping ~70 degrees to the west within ultramafic rock.

2 ASX Announcement 7 October 2020 - Excellent Early Results Red October Gold Project

3 ASX Announcement 9 November 2020 - Further Outstanding High Grade Results at Red October 4 ASX Announcement 14 December 2020 - High Grade Results and Resource Review Red October

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Matsa Resources Limited
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Figure 1: Plan view Red October ROSZ & Marlin mine development (brown) and Lionfish lodes (in blue) to the left (mine grid west)

	Lionfish July 2021 Mineral Resource Estimate(2g/t Au cut-off)	Lionfish July 2021 Mineral Resource Estimate(2g/t Au cut-off)	Lionfish July 2021 Mineral Resource Estimate(2g/t Au cut-off)	Lionfish July 2021 Mineral Resource Estimate(2g/t Au cut-off)	Lionfish July 2021 Mineral Resource Estimate(2g/t Au cut-off)	Lionfish July 2021 Mineral Resource Estimate(2g/t Au cut-off)	Lionfish July 2021 Mineral Resource Estimate(2g/t Au cut-off)
			Resource Classification
Domain	Measured		Indicated		Inferred			Total
	kT	**Aug/t **	kT	**Aug/t **	kT	**Aug/t **	kT	**Aug/t **	k Oz
356 357 555 556 562	12 7 11 3 1	11.04 8.31 4.17 4.62 8.93	80 44 10 0 3	6.35 8.29 6.59 2.85 4.06	24 20 1 0 11	5.83 10.33 3.21 2.37 9.95	116 71 22 3 15	6.71 8.86 5.26 4.44 8.87	25 20 4 0.5 4
TOTAL	34	7.65	137	6.96	57	8.17	228	7.36	54

Table 1 : Lionfish Mineral Resource Estimate

Resource Statement Notes:

• The geographic region for the Mineral Resource Estimate is Australia.

• Figures have been rounded in compliance with the JORC Code (2012).

• Rounding errors may cause a column to not add up precisely. Resources exclude recoveries.

• Resource is depleted for past mining

• No reserves have been estimated

• There are no Measured Resources

• Cut-off grades used in this report are not mining cut-off grades.

• No metallurgical or other modifying factors were used in this Resource statement

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Matsa Resources Limited
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The key changes since the last model (by Saracen in 2016) were driven by new drilling resulting and a revised interpretation that now includes three new lode structures interpreted to reflect potential linking structures for the 2 main lode structures. These potential link structures however, make up only a small proportion of the overall resource as can be noted in the above table. A long section of the Red October mine and Lionfish lode interpretation is shown in figure 2 below:

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Figure 2: Long Section (looking grid west) of Red October ROSZ & Marlin mine development (in brown) and Lionfish lodes (in blue, DOM 356 & 357 represent the main structures)

The Lionfish lodes are generally 20 - 50cm in true width as noted in the diamond drilling however due to drilling angles a significant variance in intersect lengths exists in the dataset. Composite lengths have therefore been set to 50cm+/- 50% using a “best fit” methodology. All assay composites were coded to their respective lode intercepts for estimation.

The Lionfish area has been partially drilled, with GC drilling focused between the 1200 and 1300m RL and exploration drilling further down dip. A single development drive at the 1255m RL also provides close spaced mapping, face sample and airleg rising data.

The model was completed in 2 passes, with the minimum samples required parameter, changing between pass 1 and pass 2, which allows the grade interpolation process to broadly fill much of the sparsely drilled areas and subsequent lower confidence parts of the model, whilst retaining a higher degree of confidence in the first pass estimate in the area of highest data density.

Pass 1 interpolation provided a default of Indicated Resource category and Measured Resources were only allocated where blocks were within ~5m of development, detailed grade control drilling and/or airleg rise development. All other estimated blocks were assigned to the Inferred Resource category.

Estimation was completed using both Inverse Distance Squared (ID2) and Ordinary Kriging methods. Variography was completed using Snowden Supervisor and in Surpac, however the variograms proved to be inconclusive leading to a low confidence in the conclusions drawn. As such ID2 (Table 2) was selected as the most appropriate estimation method as a well understood technique, rather than risk biasing the estimate by assigning low confidence variogram parameters. Upon completion of further drilling, the variography for Lionfish will be revisited.

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Matsa Resources Limited
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Pass	Pass 1	Pass 2
Estimation Method	ID2	ID2
Min Samples	6	1
Max Samples	14	14
Search Radius(m)	30	30
Block Resolution(m)	10x10x10	10x10x10
Min block size(m)	0.3125x0.3125x0.3125	0.3125x0.3125x0.3125

Table 2 : Lionfish ID2 search parameters used in the MRE

New data has raised the topcut used from 13g/t to 45g/t in lode Dom356 and from 38g/t to 40g/t in lode DOM357. The minor lodes 555 & 556 were given a topcut of 20g/t and 10g/t respectively. The 562 lode was not given a topcut and is largely an Inferred Resource.

Exploration Potential

Significant exploration potential (refer Figure 3) at Lionfish remains and is centred on:

• Potential strike extensions to (grid) north and south (Zone A)

• Downdip between the main resource area around the 1255m RL development and historical exploration intercept at the 1030m RL (Zone B in Figure 3)

• An interpreted juncture/intersection at depth of the Lionfish lode and Matsa’s newly identified Western target (Zone C in Figure 3)

• Resource infill of inferred material leveraging off the grade increase in the updated model which has largely been attributed to new drilling data

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Figure 3: Oblique view looking grid north of Red October and exploration target areas for Lionfish

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Matsa Resources Limited
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Red October Background

The Red October deposit (including the Red October Shear Zone [ROSZ] and Marlin lodes) is hosted within a lithology package that dips steeply to the northwest and interpreted to be the northern limb of a district scale NE-trending antiform. The deposit is centred on a shale unit that separates a footwall of tholeiitic pillowed basalts and a hanging wall succession of talc-carbonate to serpentinised ultramafic and high-Mg basalt with sparse interflow sediments. Near the top of the ultramafic-high Mg basalt sequence are thinly bedded iron-rich chert sedimentary units with variable sulphide content. The Lionfish lode(s) are a subparallel ore system less than 200m grid west of the Marlin and ROSZ mine development.

The ore system throughout Red October gold mine is structurally-hosted, with mineralised moderatesteeply dipping structures present in three main orientations (RO Local grid); north striking, north-east striking, north-west striking.

Mineralisation occurs as shear-hosted lodes or shear vein/breccia style lodes, with both styles quite visible in contrast to the host rock. Mineralisation is associated with moderate-strong wall-rock hydrothermal alteration assemblages and sulphides, with biotite, muscovite, sericite, quartzcarbonate-calcite and pyrite commonly observed. Rheology contrasts, structural junctions and dilational zones have provided fluid pathways and opportunities for deposition of gold-bearing sulphides and coarse gold.

TOTAL MINERAL RESOURCES – JULY 2021

As of 30 July 2021, Matsa’s global Mineral Resources are 727,000oz (only Red October resources have changed since release of Matsa’s quarterly report for June 2021).

Project	Cutoff	Measured		Indicated		Inferred		Total Resource
	g/t Au	(‘000t) g/t Au		(‘000t) g/t Au		(‘000t) g/t Au		(‘000t) g/t Au (‘000 oz)
LAKE CAREY
Red October Red October UG	2.0	105	8.4	519	5.6	421	6.3	1045	6.1	206
Red October Subtotal		105 8.4 519 5.6 421 6.3 1045 6.1 206
Devon Devon Pit Olympic Hill East	1.0 1.0 1.0	- - -	- - -	341 - -	4.8 - -	102 171 633	3.6 2.8 1.7	443 171 633	4.6 2.8 1.7	65 15 35
Devon Subtotal		- - 341 4.8 906 2.1 1247 2.9 115
Fortitude Fortitude Stage 2 Gallant Bindah	1.0 1.0 1.0	- - -	- - -	2,945 - 43	1.8 - 3.3	2,503 341 483	2.1 2.1 2.3	5,449 341 526	2.0 2.1 2.4	343 23 40
Fortitude Subtotal		- 2,988 1.8 3,328 2.1 6,316 2.0 406
Total		105 8.4 3,848 2.6 4,654 3.1 8,608 2.6 727

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Matsa Resources Limited
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Figure 35: Lake Carey Gold Project and Tenement package colour coded by hubs

Hubs:

Red October (red) Fortitude (yellow) Lake Carey North (pink) Devon (blue) Lake Carey South (orange) Lake Carey Central (green)

This ASX announcement is authorised for release by the Board of Matsa Resources Limited.

For further information please contact:

Paul Poli Executive Chairman T 08 9230 3555 E reception@matsa.com.au

Competent Person

The information in this report that relates to Exploration results, is based on information compiled by Pascal Blampain, who is a Member of the Australasian Institute of Mining and Metallurgy and Australian Institute of Geoscientists. Pascal Blampain is a full-time employee, and serves on the Board, of Matsa Resources Limited and 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’. Mr Blampain 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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Matsa Resources Limited
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Appendix 1

Table 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

• Criteria JORC Code explanation Commentary Sampling • Nature and quality of sampling (eg cut channels, • Sampling activities conducted at Red October by Saracen included reverse circulation (RC), techniques random chips, or specific specialised industry surface and underground diamond drilling (DD) and underground face chip sampling. Historic standard measurement tools appropriate to the sampling methods conducted since 1989 have included aircore (AC), rotary air blast (RAB), RC minerals under investigation, such as down hole and surface and underground DD holes. gamma sondes, or handheld XRF instruments, etc). • Sampling for RC, DD and face chip sampling is carried out as specified within Saracen sampling These examples should not be taken as limiting the and QAQC procedures as per industry standard. RC chips and NQ diamond core provide high broad meaning of sampling. quality representative samples for analysis. RC, RAB, AC and surface DD drilling completed by

• • Include reference to measures taken to ensure previous holders is assumed to adhere to industry standard at that time 1989- 2004. sample representivity and the appropriate • Saracen sampling activities were carried out to industry standard. Reverse circulation drilling is calibration of any measurement tools or systems used to obtain 1 m samples, diamond core is sampled to geological intervals (0.2m to 1.2m) and used. cut into half core and UG faces are chip sampled to geological intervals (0.2 to 1m), with all

• • Aspects of the determination of mineralisation that methods producing representative samples weighing less than 3kg. Samples are selected to are Material to the Public Report. weigh less than 3 kg to ensure total sample inclusion at the pulverisation stage. Saracen core

• • In cases where ‘industry standard’ work has been and chip samples were crushed, dried and pulverised to a nominal 90o/o passing 75μm to done this would be relatively simple (eg ‘reverse produce a 40 g sub sample for analysis by FA/AAS. Visible gold is occasionally encountered in circulation drilling was used to obtain 1 m samples drill core and face samples. Historical AC, RAB, RC and diamond sampling are assumed to have from which 3 kg was pulverised to produce a 30 g been carried out to industry standard at that time. Analysis methods include fire assay, aqua charge for fire assay’). In other cases more regia and unspecified methods.

• In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

• Matsa sampling activities for diamond core; a mixture of whole-core and half-core sampling. Core cut in half and sampled to geological intervals (0.2 – 1.3m) resulted in most samples weighing =<3 kg. Core that was whole-core sampled and weighed >3kg was crushed and split at the laboratory. Samples were crushed, dried and pulverised to a nominal 85% passing 75μm to produce a 50g sub sample for analysis by FA/AAS. FA results >100g/t trigger a Gravimetric Finish to achieve an accurate result. Visible gold samples’ pulp residue are later assayed again via Leachwell Bottle Roll. Standard QAQC practices are utilised to detect sample preparation errors and grade smearing (blanks and quartz flushes). All historical methods are as described above.

Matsa Resources Limited	Matsa Resources Limited	Matsa Resources Limited
	Criteria	JORC Code explanation	Commentary
	Drilling	• Drill type (eg core, reverse circulation, open-hole	• The deposit was initially sampled by 495 AC holes, 73 RAB holes, 391 RC holes (assumed
	techniques	hammer, rotary air blast, auger, Bangka, sonic, etc)	standard 5 %" bit size) and 159 surface diamond NQ and HQ core holes. 5 RC holes were drilled
		and details (eg core diameter, triple or standard	using a 143mm diameter bit with a face sampling hammer. The rig was equipped with an
		tube, depth of diamond tails, face-sampling bit or	external auxiliary/ booster. Saracen has previously completed 6 reverse circulation drill holes,
		other type, whether core is oriented and if so, by	9 surface HQ and NQ diamond drill holes, 839 underground NQ diamond drill holes and sampled
		what method, etc).	2931 underground faces. Diamond drill core has been oriented using several different methods
			which include Ezi-Mark, ACT, Ori-Finder, and more recently Reflex ACTII and Reflex ACTIII . Some
			historic surface diamond drill core appears to have been oriented byunknown methods.
	Drill sample	• Method of recording and assessing core and chip	• RC chip recoveries are recorded in the database as a percentage based on a visual weight
	recovery	sample recoveries and results assessed.	estimate. Underground and surface diamond core recoveries are recorded as percentages
		• Measures taken to maximise sample recovery and	calculated from measured core versus drilled metres, and intervals are logged and recorded in
		ensure representative nature of the samples.	the database. Diamond core recoveries average >90%. Limited historic surface sampling and
		• Whether a relationship exists between sample	surface diamond recoveries have been recorded.
		recovery and grade and whether sample bias may	• During RC drilling daily rig inspections are carried out to check splitter condition, general site
		have occurred due to preferential loss/gain of	and address general issues. Ground condition concerns led to extensive hole conditioning
		fine/coarse material.	meaning contamination was minimised and particular attention was paid to sample recovery.
			Diamond core is reconstructed into continuous runs on an angle iron cradle for orientation
			marking. Depths are checked against depth given on the core blocks. UG faces are sampled left
			to right across the face allowing a representative sample to be taken due to the vertical nature
			of the orebody. Historical AC, RAB, RC and diamond drilling to industry standard at that time.
			• There is no known relationship between sample recovery and grade for RC drilling. Diamond
			drilling has high recoveries due to the competent nature of the ground meaning loss of material
			is minimal. Anyhistorical relationshipis not known.
	Logging	• Whether core and chip samples have been	• Logging of all RC chips and diamond drill core is carried out. Logging records lithology,
		geologically and geotechnically logged to a level of	mineralogy, texture, mineralisation, weathering, alteration and veining.
		detail to support appropriate Mineral Resource	• Logging is both qualitative and quantitative in nature. Geotechnical and structural logging is
		estimation, mining studies and metallurgical	carried out on resource definition and exploration diamond core holes to record recovery, RQD,
		studies.	defect number, type, fill material, shape and roughness and alpha and beta angles. Core is
		• Whether logging is qualitative or quantitative in	photographed in both dry and wet state. All faces are photographed and mapped. Qualitative
		nature. Core (or costean, channel, etc)	and quantitative logging of historic data varies in its completeness. Some surface diamond drill
		photography.	photography has been preserved.
		• The total length and percentage of the relevant	• All RC and diamond drill holes are logged and all faces are mapped. Historical logging is
		intersections logged.	approximately95% complete,some AC,RAB and RCpre-collar information is unavailable.

Matsa Resources Limited	Matsa Resources Limited	Matsa Resources Limited
	Criteria	JORC Code explanation	Commentary
	Sub-sampling	• If core, whether cut or sawn and whether quarter,	• Resource definition and exploration diamond core is cut in half on-site using an automatic core
	techniques	half or all core taken.	saw. Samples are always collected from the same side. Grade control core is either whole core
	and sample	• If non-core, whether riffled, tube sampled, rotary	sampled or cut in half on-site using an automatic core saw.
	preparation	split, etc and whether sampled wet or dry.	• RC drilling has been cone split and was dry sampled. UG faces are chip sampled using a hammer.
		• For all sample types, the nature, quality and	AC, RAB and RC drilling has been sampled using spear, grab, riffle and unknown methods.
		appropriateness of the sample preparation	• The sample preparation of RC chips, diamond core and UG face chips adhere to industry best
		technique.	practice. It is conducted by a commercial laboratory and involves oven drying, coarse crushing
		• Quality control procedures adopted for all sub-	then total grinding using an LM5 to a grind size of 85% passing 75 microns. Best practice is
		sampling stages to maximise representivity of	assumed at the time of historic sampling.
		samples.	• All subsampling activities are carried out by commercial laboratory and are considered to be
		• Measures taken to ensure that the sampling is	satisfactory. Sampling by previous holders is assumed to adhere to industry standard at the
		representative of the in situ material collected,	time.
		including for instance results for field	• RC field duplicate samples are carried out at a rate of 1:20 and are sampled directly from the
		duplicate/second-half sampling.	on-board splitter on the rig. These are submitted for the same assay process as the original
		• Whether sample sizes are appropriate to the grain	samples and the laboratory are unaware of such submissions. No duplicates have been taken
		size of the material being sampled.	of UG diamond core; face samples are duplicated on ore structures. Sampling by previous
			holders assumed to be industry standard at the time.
			• Sample sizes of 3kg are considered to be appropriate given the grain size (85% passing 75
			microns)of size of the material of the material sampled.
	Quality of	• The nature, quality and appropriateness of the	• A 50 gram fire assay with AA finish is used to determine the gold concentration for UG diamond
	assay data and	assaying and laboratory procedures used and	core and face chip samples and a gravimetric finish for assays >100g/t. For samples with visible
	laboratory	whether the technique is considered partial or	gold, Screen Fire Assay or Leachwell Bottle Roll may be used to gain a more accurate and precise
	tests	total.	assay. These methods are considered the most suitable for determining gold concentrations in
		• For geophysical tools, spectrometers, handheld XRF	rock and are total digest methods. Historic sampling includes fire assay, aqua regia and
		instruments, etc, the parameters used in	unknown methods.
		determining the analysis including instrument	• No geophysical tools were utilised for reporting gold mineralisation.
		make and model, reading times, calibrations	• Certified reference material (standards and blanks) with a wide range of values are inserted into
		factors applied and their derivation, etc.	every RC, diamond drill hole (1 in 30) and UG face jobs to assess laboratory accuracy and
		• Nature of quality control procedures adopted (eg	precision and possible contamination. These are not identifiable to the laboratory. Blanks are
		standards, blanks, duplicates, external laboratory	also included at a rate of 1 in 30 for diamond drill core and one per lab dispatch for face samples.
		checks) and whether acceptable levels of accuracy	Quartz flush samples are requested after each sample with visible gold, or estimated high grade.
		(ie lack of bias) and precision have been	QAQC data returned are checked against pass/fail limits and are passed or failed on import. A
		established.	report is generated and reviewed by the geologist as necessary upon failure to determine
			further action.QAQC data is reportedper campaign and demonstrates sufficient levels of

Matsa Resources Limited	Matsa Resources Limited	Matsa Resources Limited
	Criteria	JORC Code explanation			Commentary
					accuracy and precision. Sample preparation checks for fineness are carried out to ensure a grind
					size of 85o/o passing 75 microns. The laboratory performs a number of internal processes
					including standards, blanks, repeats and checks. Industry best practice is assumed for previous
					holders. HistoricQAQC data is stored in the database but not reviewed.
	Verification of	• The verification of significant intersections by either			• Significant intercepts are verified by the Geology Manager and corporate personnel.
	sampling and	independent or alternative company personnel.			• No specific twinned holes have been drilled at Red October but underground diamond drilling
	assaying	• The use of twinned holes.			has confirmed the width and grade of previous exploration drilling.
		• Documentation of	primary data, data entry		• Primary data is collated in a set of excel templates. This data is forwarded to the Database
		procedures, data	verification,	data storage	Administrator for entry into a secure SQL database with inbuilt validation functions. Chips from
		(physical and electronic) protocols.			RC drill holes are stored in chip trays for future reference. Remaining half core is stored in core
		• Discuss any adjustment to assay data.			trays and archived on site. Hard copies of face mapping, backs mapping and sampling records
					are kept on site. Digital scans are also kept on the corporate server. Data from previous owners
					was taken from a database compilation and was validated as much as practicable before entry
					into the Matsa database.
					• No adjustments have been made to assay data. First gold assay has been utilised by Saracen
					for resource estimation. Re-assays carried out due to failed QAQC will replace original results,
					though both are stored in the database.
	Location of	• Accuracy and quality of surveys used to locate drill			• All drill hole collars are picked up by certified surveyors using a Leica Theodolite with an
	data points	holes (collar and down-hole surveys), trenches,			expected accuracy of +/~2mm. A DHS DeviGyro OX Kit was used for rig setups in addition to
		mine workings and other locations used in Mineral			surveyed collar positions. Underground faces are located using a Leica Disto with an accuracy
		Resource estimation.			of+/-1mm from a known survey point. Surveys are carried out downhole during diamond
		• Specification of the grid system used.			drilling using a DHS DeviGyro OX Kit. Previous holders' survey accuracy and quality is generally
		• Quality and adequacy of topographic control.			unknown.
					• Saracen’s surface exploration campaigns involved RC holes being gyroscopically downhole
					surveyed by ABIMS where possible once drilling was completed.
					• A local grid system (Red October) is used. It is rotated 44.19 degrees east of MGA_GDA94.The
					two-point conversion to MGA_GDA94 zone 51 is:
					ROEast RONorth RL MGAEast MGANorth RL
					Point 1 5890.71 10826.86 0 444223.25 6767834.66 0
					Point2 3969.83 9946.71 0 442233.31 6768542.17 0
					Historic data is converted to Red October local grid on export from the database
					• DGPS survey has been used to establish topographic surface

Matsa Resources Limited	Matsa Resources Limited	Matsa Resources Limited
	Criteria	JORC Code explanation	Commentary
	Data spacing	• Data spacing for reporting of Exploration Results.	• The nominal spacing for the reported results are not uniform and therefore a definitive drill
	and	• Whether the data spacing and distribution is	spacing will not be quoted.
	distribution	sufficient to establish the degree of geological and	• Not all data reported meets the required continuity measures to be considered for inclusion in
		grade continuity appropriate for the Mineral	a resource estimate. Holes reported inside or within 40m of the resource will be incorporated
		Resource and Ore Reserve estimation procedure(s)	into the resource model, or if sufficient density of data confirms continuity, it will be considered
		and classifications applied.	for inclusion in the resource.
		• Whether sample compositing has been applied.	• RC drill holes are sampled to 1 m intervals and underground core and faces are sampled to
			geological intervals; compositing is not applied until the estimation stage. Some historic RAB
			and RC sampling was composited into 3-4m samples with areas of interest resampled to 1 m
			intervals. It is unknown at what threshold this occurred.
	Orientation of	• Whether the orientation of sampling achieves	• RC drilling was carried out at the most appropriate angle possible. The mineralisation is
	data in	unbiased sampling of possible structures and the	intersected at closely as possible to perpendicular. The steeply dipping nature of the
	relation to	extent to which this is known, considering the	mineralisation means that most holes pass through mineralisation at lower angles than ideal.
	geological	deposit type.	Production reconciliation and underground observations indicate that there is limited sampling
	structure	• If the relationship between the drilling orientation	bias. Underground diamond drilling is designed to intersect the orebody in the best possible
		and the orientation of key mineralised structures is	orientation given the constraints of underground drill locations. UG faces are sampled left to
		considered to have introduced a sampling bias, this	right across the face allowing a representative sample to be taken due to the vertical nature of
		should be assessed and reported if material.	the orebody.
			• No significant sampling bias has been recognised due to orientation of drilling in regards to
			mineralised structures.
	Sample	• The measures taken to ensure sample security.	• Samples are prepared on site under supervision of company geological staff. Samples are
	security		selected, bagged into tied numbered calico bags then grouped into larger secured bags and
			delivered to the laboratorybyMatsapersonnel.
	Audits or	• The results of any audits or reviews of sampling	• An internal review of sampling methodologies was conducted to create the current sampling
	reviews	techniques and data.	and QAQC procedures. No external audits or reviews have been conducted.

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Matsa Resources Limited
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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral	• Type, reference name/number, location and	• Red October is wholly located within Mining Lease M39/412. Mining Lease M39/412 has a 21
tenement and	ownership including agreements or material issues	year life (held until 2019) and is renewable for a further 21 years on a continuing basis. There
land tenure	with third parties such as joint ventures,	is one Registered Native Title Claim over M39/412 for the Kurrku group (WC10/18), lodged
status	partnerships, overriding royalties, native title	December 2010. Mining Lease M39/412 was granted prior to registration of the Claim and is
	interests, historical sites, wilderness or national	not affected by the Claim. Aboriginal Heritage sites within the tenement (Site Numbers WO
	park and environmental settings.	2442, 2447, 2448, 2451, 2452 and 2457) are not affected by current mining practices. Third
	• The security of the tenure held at the time of	party royalties are payable on the tenement. A Royalty is payable under Royalty Deed
	reporting along with any known impediments to	M39/411, 412, 413 based on a percentage of deemed revenue (minus allowable costs) on gold
	obtaining a licence to operate in the area.	produced in excess of 160,000 ounces. A Royalty is payable based on a percentage of proceeds
		of sale or percentage of mineral value. All production is subject to a Western Australian state
		government NSR royalty of 2.5%.
		• The tenement is ingood standingand the licence to operate alreadyexists.
Exploration	• Acknowledgment and appraisal of exploration by	• Mount Martin carried out exploration including RAB and RC drilling in 1989. This along with
done by other	other parties.	ground magnetics was used to delineate a number of anomalies on islands to the immediate
parties		north and south of Red October. Mount Burgess Gold Mining identified a north east trending
		magnetic anomaly on Lake Carey between the islands considered analogous to Sunrise Dam
		in 1993. Aircore and RC drilling was carried out to define what would become the Red October
		pit. Sons of Gwalia entered into a joint venture with Mount Burgess, carrying out RC and
		diamond drilling to define a pittable reserve before purchasing Mount Burgess' remaining
		equity. Saracen conducted extension RC and diamond drilling from within and around the pit
		defined the potential underground resource. Saracen then further extended, defined and
		grade controlled via underground drilling.
Geology	• Deposit type, geological setting and style of	• Red October gold mine is situated within an Archaean greenstone belt of the Laverton
	mineralisation.	Tectonic Zone. The stratigraphic sequence consists of footwall tholeiitic basalts, mineralised
		shale (containing ductile textures defined by pyrite mineralisation) and a hanging wall
		dominated by ultramafic flows interbedded with high-Mg basalts. Prehnite- pumpellyite facies
		are evident within both the tholeiitic basalts and komatiite flows. Sulphide mineralisation is
		hypothesised to have been caused from interaction with an auriferous quartz vein, which has
		caused the intense pyrite-defined ductile textures of the shale in the upper levels. The fluid is
		believed to have been sourced from the intruding granitoid to the (grid) south of the deposit.

Matsa Resources Limited	Matsa Resources Limited	Matsa Resources Limited
	Criteria	JORC Code explanation	Commentary
	Drill hole	• A summary of all information material to the	• All material data is periodically released on the ASX: 20/12/2020, 07/11/2020, 09/10/2020,
	Information	understanding of the exploration results including	07/12/2016, 07/09/2016, 27/07/2016, 11/05/2016, 25/05/2015, 0/03/2015, 25/05/2015,
		a tabulation of the following information for all	16/01/2014, 14/10/2013, 23/07/2013, 17/04/2013, 25/01/2013, 14/06/2012, 27/04/2012,
		Material drill holes:	28/07/2011, 03/06/2011
		o easting and northing of the drill hole collar
		o elevation or RL (Reduced Level – elevation
		above sea level in metres) of the drill hole collar
		o dip and azimuth of the hole
		o down hole length and interception depth
		o hole length.
		• If the exclusion of this information is justified on the
		basis that the information is not Material and this
		exclusion does not detract from the understanding
		of the report, the Competent Person should clearly
		explain why this is the case.
	Data	• In reporting Exploration Results, weighting	• All significant intercepts have been length weighted. No high-grade or low-grade cut is
	aggregation	averaging techniques, maximum and/or minimum	applied.
	methods	grade truncations (eg cutting of high grades) and	• Intercepts are aggregated and include internal dilution. Where stand out higher grade zone
		cut-off grades are usually Material and should be	exist with in the broader mineralised zone, the higher-grade interval is reported also.
		stated.	• No metal equivalents are reported.
		• Where aggregate intercepts incorporate short
		lengths of high grade results and longer lengths of
		low grade results, the procedure used for such
		aggregation should be stated and some typical
		examples of such aggregations should be shown in
		detail.
		• The assumptions used for any reporting of metal
		equivalent values should be clearly stated.
	Relationship	• These relationships are particularly important in	• The geometry of the mineralisation is highly variable and the complex nature of the ore bodies
	between	the reporting of Exploration Results.	makes the definitive calculation of true thickness difficult. Drilling has been orientated to
	mineralisation	• If the geometry of the mineralisation with respect	intersect the various ore bodies at most optimum angle where possible. This has not always
	widths and	to the drill hole angle is known, its nature should be	been achieved. Where holes have drilled parallel to or within a lode, additional holes have
	intercept	reported.	been drilled at a more suitable orientation to account for the poor angle.
	lengths		• As such, downhole lengths are reported as true widths are difficult to calculate accurately.

Matsa Resources Limited	Matsa Resources Limited	Matsa Resources Limited
	Criteria	JORC Code explanation	Commentary
		• If it is not known and only the down hole lengths
		are reported, there should be a clear statement to
		this effect (e.g. ‘down hole length, true width not
		_known’). _
	Diagrams	• Appropriate maps and sections (with scales) and	• Diagrams are referenced in the body of the release
		tabulations of intercepts should be included for any
		significant discovery being reported These should
		include, but not be limited to a plan view of drill
		hole collar locations and appropriate sectional
		views.
	Balanced	• Where comprehensive reporting of all Exploration	• All results equal to and above 2g/t have been reported.
	reporting	Results is not practicable, representative reporting
		of both low and high grades and/or widths should
		be practiced to avoid misleading reporting of
		Exploration Results.
	Other	• Other exploration data, if meaningful and material,	• Dr John McLellan from GMEX Pty Ltd carried out a stress modelling study on the Red October
	substantive	should be reported including (but not limited to):	deposit in 2018.
	exploration	geological observations; geophysical survey	• Multi-element data continues to be collected from underground samples and core samples to
	data	results; geochemical survey results; bulk samples –	bolster the geochemistry dataset and for ongoing geo-metallurgical purposes.
		size and method of treatment; metallurgical test	• Red October ore is processed through the Sunrise Dam processing plant, with metallurgical
		results; bulk density, groundwater, geotechnical	recoveries in line with metal recovery assumptions of ~70% – 90%.
		and rock characteristics; potential deleterious or
		contaminating substances.
	Further work	• The nature and scale of planned further work (eg	• Red October is currently under review.
		tests for lateral extensions or depth extensions or	• Initial targets generated from the geomechanical study are included in previous ASX releases
		large-scale step-out drilling).	(MAT announcement to ASX 18thFebruary 2019).
		• Diagrams clearly highlighting the areas of possible
		extensions, including the main geological
		interpretations and future drilling areas, provided
		this information is not commercially sensitive.

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Matsa Resources Limited
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Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

Criteria	JORC Code explanation	Commentary
Database	• Measures taken to ensure that data has not been	• The Red October resource was last completed by Saracen Mineral Holdings Limited (Saracen) in
integrity	corrupted by, for example, transcription or keying	2016-2017 prior to the project’s acquisition by Matsa in 2018. No update to the resource has
	errors, between its initial collection and its use for	been made by Matsa.
	Mineral Resource estimation purposes.	• At the time of acquisition, Saracen used AcQuire software on an SQL server database to securely
	• Data validation procedures used.	store and manage all drillhole and sample information. Data integrity protocols are built into the
		system to ensure data validity and minimise errors are built into the data entry and import
		processes.
		• Data that is captured in the field is entered into Excel templates which are checked on import into
		the database for errors. Assay jobs are dispatched electronically to the lab to minimise the chance
		of data entry errors. Assay results from the lab are received in CSV format and are checked for
		errors on import into the database. Data is regularly validated using the mining software. The
		data validationprocess is overseen bythe Database Administrator.
Site visits	• Comment on any site visits undertaken by the	• Site visits were regularly undertaken by the CP. Under Matsa’s ownership the CP regularly works
	Competent Person and the outcome of those visits.	at site and the model is routinely used for exploration, mine planning and ongoing routine mine
	• If no site visits have been undertaken indicate why	geological activities
	this is the case.
Geological	• Confidence in (or conversely, the uncertainty of) the	• The resource categories assigned to the model directly reflect the confidence in the geological
interpretation	geological interpretation of the mineral deposit.	interpretation that is built using structural, mineral, and alteration geology obtained from UG
	• Nature of the data used and of any assumptions	mapping, core logging and drill results. Confidence in the interpretation improved with increased
	made.	data density from close-spaced grade control drilling at 20m X 20m and UG drive mapping.
	• The effect, if any, of alternative interpretations on	• The geological interpretation has considered all available geological information from drill core
	Mineral Resource estimation.	and UG mapping. It includes rock types, mineral association as well as alteration and veining
	• The use of geology in guiding and controlling	assemblage information gathered from all sources to help define the mineralised domains and
	Mineral Resource estimation.	regolith boundaries.
	• The factors affecting continuity both of grade and	• The geological wireframes defining the mineralised zones are considered to be robust. Alternative
	geology.	interpretations were trialled earlier and had a negative effect on the estimation process with
		zones becoming less robust.
		• The wireframed domains are estimated as hard boundaries during the Mineral Resource
		Estimation. They are constructed using all available geological information (as stated above) and
		terminate alongknown structures. Mineralisation styles, geological homogeneity,andgrade

Matsa Resources Limited	Matsa Resources Limited	Matsa Resources Limited
	Criteria	JORC Code explanation	Commentary
			distributions for each domain (used to highlight any potential for bimodal populations) are all
			assessed to ensure effective estimation of the domains.
			• "Grade continuity is affected by both structural and lithological controls. Higher grades (nuggety
			gold) are associated with vertical N-S striking (mine) quartz breccia structures plunging along the
			northern contacts of NE (mine) dipping fault zones. Where these zones interact with the main
			Shale contact, high grade shoots tend to occur with steep northerly plunges internal of the shale
			contact.
			• Structurally the quartz breccia and shale units are offset by the NE dipping fault zones."
	Dimensions	• The extent and variability of the Mineral Resource	• Mineralisation at Red October occurs over 900m along strike and to a depth of 700m.
		expressed as length (along strike or otherwise),	Mineralisation is hosted in vertical quartz breccia zones as well as where they intersect the
		plan width, and depth below surface to the upper	primary host of graphitic black shales sitting on a Mafic/ultramafic contact. Inside the primary ore
		and lower limits of the Mineral Resource.	zone ore is seen as nuggetty visible gold and moving away from these zones mineralization is
			patchy with continuity along strike of between 5-20m and sub mineralisation outside zones of
			silica flooding/brecciation.
	Estimation and	• The nature and appropriateness of the estimation	• The mineralised ore domains were wireframed based on geological homogeneity, grade
	modelling	technique(s) applied and key assumptions,	populations, mineralisation styles and orientation of grade continuity. The domain wireframes
	techniques	including treatment of extreme grade values,	were estimated as hard boundaries during the estimation process. RAB, Air-core and grab samples
		domaining, interpolation parameters and	were excluded from the estimation process due to the unreliability of results. Negative gold
		maximum distance of extrapolation from data	grades were replaced with a grade of 0.001 g/t and null gold grades were excluded from the
		points. If a computer assisted estimation method	estimation process. Drillhole assays were composited to 1m intervals with a minimum length of
		was chosen include a description of computer	0.3m that best conformed to the sample length of the majority of the RC/DD data. High grades
		software and parameters used.	within each domain were identified and top cuts were applied where necessary. Variograms were
		• The availability of check estimates, previous	produced to determine the directional influence of each sample during the estimation process.
		estimates and/or mine production records and	The Mineral Resource Estimate was interpolated using Ordinary Kriging and inverse Distance
		whether the Mineral Resource estimate takes	squared in Surpac (note Saracen used Micromine).
		appropriate account of such data.	• The Mineral Resource Estimation is checked against the previous block model estimations and
		• The assumptions made regarding recovery of by-	reconciled production numbers.
		products.	• No assumptions have been made regarding the recovery of by-products for this Mineral Resource
		• Estimation of deleterious elements or other non-	Estimation.
		grade variables of economic significance (eg	• No estimation of deleterious elements or non-grade variables is required
		sulphur for acid mine drainage characterisation).	• The model has been created using a parent cell size of 2.5m (East- West) x 10m (North-South) x
		• In the case of block model interpolation, the block	10m (vertical). Sub-cells have been used to a resolution of 0.25m x 1m x 1m to ensure high
		size in relation to the average sample spacing and	resolution at ore boundaries. The search distances are variable and are adjusted accordingto the

Matsa Resources Limited	Matsa Resources Limited	Matsa Resources Limited
	Criteria	JORC Code explanation	Commentary
		the search employed.		directional ranges calculated from the variograms, and the geological understanding of Au and
		• Any assumptions behind modelling of selective		geometry continuity for each domain. Search ellipsoids are variable and reflect individual domain
		mining units.		conditions and are extended in later search passes with a decreased number of minimum samples
		• Any assumptions about correlation between		where data is spares.
		variables.	•	No assumptions have been made regarding the modelling of selective mining units for this Mineral
		• Description of how the geological interpretation		Resource Estimation.
		was used to control the resource estimates.	•	No assumptions have been made regarding the correlation between variables for this Mineral
		• Discussion of basis for using or not using grade		Resource Estimation.
		cutting or capping.	•	Mineralised domains were wireframed within the context of the known local and structural
		• The process of validation, the checking process		geology which was supported by the geological mapping UG and the geology logging of drillholes.
		used, the comparison of model data to drill hole		Correlations between rock type, texture, alteration, and gold mineralisation were investigated.
		data, and use of reconciliation data if available.		Individual lode top cuts were applied prior to compositing the sample data.
			•	Samples with extreme high grades that bias the mean grade and positively skew the grade
				population within each mineralised domains are top cut to reduce the influence high grade
				outliers. The geostatistical analysis to determine top cuts includes log probability plots and the
				coefficient of variation.
			•	A number of statistical and visual measures are used to validate the accuracy of the estimation.
				The mean grade of the block model is compared to the mean grade of composites by domain.
				These are then further investigated by appropriate northing, easting and bench intervals in the
				form of swathe plots. The volume variance between the wireframed domains and block model
				domains are assessed. Kriging efficiency, and slope results give an indication of the quality of the
				estimate. A visual inspection of the drillhole assay results is compared to the estimated block
				model in section.
	Moisture	• Whether the tonnages are estimated on a dry basis	•	Tonnages are estimated on a dry basis.
		or with natural moisture, and the method of
		determination of the moisture content.
	Cut-off	• The basis of the adopted cut-off grade(s) or quality	•	The Resource is reported at a cut-off grade of 2 g/t which is common for underground mines
	parameters	parameters applied.
	Mining factors	• Assumptions made regarding possible mining	•	No assumptions have been made as to possible mining methods or dilution factors due to the
	or assumptions	methods, minimum mining dimensions and internal		variable nature of the dip and thickness of the ore body. Current mining methods employed at
		(or, if applicable, external) mining dilution. It is		Red October utilize both air legging and long hole production rigs and is determined by ore body
		always necessary as part of the process of		dimensions.
		determining reasonable prospects for eventual	•	Dilution is calculated using a low grade wireframe encompassing the ore domains which typically

Matsa Resources Limited	Matsa Resources Limited	Matsa Resources Limited
	Criteria	JORC Code explanation	Commentary
		economic extraction to consider potential mining		grades at 0.01g/t. "
		methods, but the assumptions made regarding
		mining methods and parameters when estimating
		Mineral Resources may not always be rigorous.
		Where this is the case, this should be reported with
		an explanation of the basis of the mining
		assumptions made.
	Metallurgical	• The basis for assumptions or predictions regarding	•	Red October has a variable recovery in certain zones dependant on the mineralized host. The
	factors or	metallurgical amenability. It is always necessary as		lowest recoveries are in domain 110, which has a high refractory component with most ore locked
	assumptions	part of the process of determining reasonable		in arsenopyrite, and in the unbrecciated primary shale unit which has recorded up to 2% active
		prospects for eventual economic extraction to		carbon causing it to have a preg robbing nature. Both are between 45-65% recovery. The quartz
		consider potential metallurgical methods, but the		breccia has a high gravity gold component and most mineralization hosted in pyrite with
		assumptions regarding metallurgical treatment		recoveries varying between 80-93%.
		processes and parameters made when reporting	•	The average recovery applied to Red October and seen through the mill is 84%.
		Mineral Resources may not always be rigorous.	•	No specific assumptions or modifying factors were used for grade interpolation during Resource
		Where this is the case, this should be reported with		estimations
		an explanation of the basis of the metallurgical
		assumptions made.
	Environmental	• Assumptions made regarding possible waste and	•	Waste rock characterisation has been conducted on the deposit with no environmental issues
	factors or	process residue disposal options. It is always		identified except dispersive oxidised material and waste dump construction plan in place to
	assumptions	necessary as part of the process of determining		manage.
		reasonable prospects for eventual economic	•	Tailings from the deposit were traditionally stored in an appropriate licensed tailings facility and
		extraction to consider the potential environmental		closure plan in place at Carosue Dam when owned and operated by Saracen. Matsa sends its ore
		impacts of the mining and processing operation.		to Anglo Ashanti Gold Australia (AAGA) for processing. Tailings are subsequently stored on
		While at this stage the determination of potential		AAGA’s tailings facilities.
		environmental impacts, particularly for a
		greenfields project, may not always be well
		advanced, the status of early consideration of these
		potential environmental impacts should be
		reported. Where these aspects have not been
		considered this should be reported with an
		explanation of the environmental assumptions
		made.
	Bulk density	• Whether assumed or determined. If assumed, the	•	The bulk densities for Red October were determined via testing of representative intervals from

Matsa Resources Limited	Matsa Resources Limited	Matsa Resources Limited
	Criteria	JORC Code explanation		Commentary
		basis for the assumptions. If determined,	the	diamond drillholes, regular sampling via grab samples from the pit development. The sample size
		method used, whether wet or dry, the frequency of		is generally between 0.5 and 1.5kg and the method of calculation is the water displacement
		the measurements, the nature, size	and	technique. Measurements have been recorded in the acquire database and extraction schemes
		representativeness of the samples.		pair this data with the major lithology code for statistical analysis.
		• The bulk density for bulk material must have been		• Ore zones predominantly exist in fresh non porous material, so additional measures to reduce
		measured by methods that adequately account for		moisture intake during the water displacement method is unnecessary at this stage. Coating more
		void spaces (vugs, porosity, etc), moisture	and	friable oxides and sediments (to reduce moisture loss or moisture gain during the process) is
		differences between rock and alteration zones		considered on a deposit by deposit basis.
		within the deposit.		• An average mean of densities collected for each lithological type has been uniformly applied to
		• Discuss assumptions for bulk density estimates		the modelled geological units. The oxide and transitional zones have an assumed density based
		used in the evaluation process of the different		on regional work in similar deposits and general goldfields region.
		materials.		• As new drilling is completed by Matsa, samples are routinely collected, sent offsite to 3rd party
				assaying laboratories such as ALS Global and assessed for specific gravity. New data is
				progressively used in subsequent model updates.
	Classification	• The basis for the classification of the Mineral		• Resource classifications were defined by a combination of data; drill hole spacing, estimation
		Resources into varying confidence categories.		quality (search pass, Kriging Efficiency and Slope results), geological confidence and Au continuity
		• Whether appropriate account has been taken of all		of domains. Based on these factors hard boundaries were wireframed for measured, indicated
		relevant factors (ie relative confidence	in	and inferred material. Measured material exhibits high confidence defined by development drives
		tonnage/grade estimations, reliability of input		and closed spaced GC drilling, with estimates in the first search and Kriging Efficiency and Slope
		data, confidence in continuity of geology and metal		results >80%. Indicated material is defined by close spaced drilling, having good geological
		values, quality, quantity and distribution of	the	continuity along strike and down dip and in such is reflected with good KE and Slope results.
		data).		Inferred classification is given to the estimate outside the mineable area with more sparse drill
		• Whether the result appropriately reflects	the	intercepts (>25m X 25m) and having poorer estimation quality.
		Competent Person’s view of the deposit.		• All relevant factors have been taken into account and are validated through thorough QAQC of
				the drill hole database and geological knowledge and interpretation of the Red October deposit.
				Thorough model validations and reviews ensure the integrity of the final estimation and the grade
				and tonnage numbers.
				• The reviewing process allows the Competent Person's to assess and sign off on the model.
	Audits or	• The results of any audits or reviews of Mineral		• At the completion of resource estimation Saracen Gold Mines undertook an extensive review of
	reviews	Resource estimates.		the model that covers model inventory and comparisons to previous models. Geological
				interpretation, wireframing, domain selection, statistics by domain, assay evaluation, parent cell
				sizes, data compositing, variography, search strategy, estimation and Kriging Neighbourhood
				Analysis and finallymodel validation and resource categorisation are all discussed and scrutinised

Matsa Resources Limited	Matsa Resources Limited	Matsa Resources Limited
	Criteria	JORC Code explanation	Commentary
			by the geological and mine planning teams.
			• During the acquisition process Matsa undertook its own due diligence.
			• Since acquisition Matsa has not commissioned any 3rdparty audits of the Red October Resource
			however models are peer reviewed by the geology team for geological interpretation and
			appropriate geometry and then again following grade interpolation
	Discussion of	• Where appropriate a statement of the relative	• The Mineral Resource has been reported in accordance with the guidelines of the 2012 edition of
	relative	accuracy and confidence level in the Mineral	the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.
	accuracy/	Resource estimate using an approach or procedure	Saracen Gold Mine uses a standard approach to resource estimation and the procedure requires
	confidence	deemed appropriate by the Competent Person. For	the systematic completion of the Saracen Resource Estimation Document that is thoroughly
		example, the application of statistical or	investigated and assessed in the Model review process, as stated above.
		geostatistical procedures to quantify the relative	• The statement relates to global estimates.
		accuracy of the resource within stated confidence	• Previous Mineral Resource estimates have had on average a positive reconciliation against mill
		limits, or, if such an approach is not deemed	figures.
		appropriate, a qualitative discussion of the factors	• Matsa has found that mill to mining reconciliations has returned slightly positive in the 24 month
		that could affect the relative accuracy and	mining period since restarting the operation.
		confidence of the estimate.
		• The statement should specify whether it relates to
		global or local estimates, and, if local, state the
		relevant tonnages, which should be relevant to
		technical and economic evaluation. Documentation
		should include assumptions made and the
		procedures used.
		• These statements of relative accuracy and
		confidence of the estimate should be compared
		withproduction data, where available.