MATSA RESOURCES LIMITED

Matsa Resources Limited

==> picture [118 x 104] intentionally omitted <==

ASX Announcement

13[th] July 2021

New High Grade Gold Results Boosts Devon Hub Lake Carey Gold Project

Highlights

High grade gold results received from recent 42 hole (3,677m) Reverse Circulation (RC) drilling program at Devon Hub
Matsa has a global Mineral Resource of 694,000oz, of which 115,000oz has been defined at the Devon Hub
Drilling was designed to test exploration targets defined from gold in soil and geophysical anomalism as well as test for extensions to existing resources
New high grade intercepts at LIN5, HE1, HE2 and HE5 prospects combined with widespread lower tenor mineralisation reinforces the concept that extensive surface gold anomalism reflects significant mineralised potential at depth yet to be fully explored
Significant new intercepts* include:
3m of 16.8 g/t Au from 123m
3m of 6.88 g/t Au from 84m
3m of 3.07g/t Au from 9m
6m of 2.33 g/t Au from 69m
9m of 1.99 g/t Au from 63m
3m of 6.91 g/t Au from 15m
3m of 7.20 g/t Au from 63m
The deepest Hill East intercept is also the highest grade intersected to date, suggesting grades potentially increase with depth

CORPORATE SUMMARY

Executive Chairman

Paul Poli

Directors

Frank Sibbel

Pascal Blampain

Director & Company Secretary

Andrew Chapman

Shares on Issue

315.96 million

Listed Options

28.12 million @ $0.17

Unlisted Options

65.38 million @ $0.17 - $0.35

Top 20 shareholders

Hold 54.44%

Share Price on 12[th] July 2021

9.5 cents

Market Capitalisation

$30.02 million

Extensive mapped surface gold anomalism coupled with defined gold mineralisation in drilling highlights the significant exploration upside at Devon

*Note all intercepts in this announcement relate to initial assaying of 3m composites. 1m samples from anomalous 3m composites have been sent for further gold determination. Final 1m results are expected by end of July 2021.

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 | [email protected]

Matsa Resources Limited

Matsa Resources Limited (“Matsa” or “the Company” ( ASX: MAT ) is pleased to announce assay results from recent RC drilling (Figure 1) at the Company’s Devon Pit, Hill East and LIN targets which form part of the Devon Hub of Matsa’s Lake Cary Gold Project in the Eastern Goldfields of Western Australia. Matsa has an existing Mineral Resource of 694,000oz gold at Lake Carey.

==> picture [450 x 575] intentionally omitted <==

Figure 1: Devon RC Drilling May 2021 showing new drilling and existing resource outlines

Matsa Resources Limited

Devon Hub RC Drilling Program May 2021

Exploration drilling was designed to focus on the discovery of new shallow gold mineralisation at the Devon Hub[1, 2] and in particular:

Targets identified in recent soil geochemistry (LIN1, LIN2, LIN5 and LIN6)
Test for extensions to recently announced resources at Hill East (HE1, HE2 and HE5) based on targets from recent Sub Audio Magnetic (SAM) survey and strongly anomalous soil gold values
Test new targets at Devon South and LIN6 based on anomalous soil geochemistry and SAM features
The Hanging Wall Lode at Devon Pit has been targeted to explore for potential extensions of high grade near surface mineralisation

The RC drilling program at the Devon Hub comprised a total of 42 holes (21DVRC052-21DVRC064 and 21HERC033-21HERC062) for 3,677m of drilling (Figure 2).

==> picture [435 x 386] intentionally omitted <==

Figure 2: Key target prospects at Devon Hub and new drilling

1 ASX Announcement 10 May 2021 – RC Drilling Commences at Devon, Lake Carey Gold Project
2 ASX Announcement 2 June 2021 – RC Drilling at Devon Completed, Lake Carey Gold Project

Matsa Resources Limited

Matsa Executive Chairman Mr Paul Poli commented:

“With grades like 3m of 17 grams per tonne and a number of 3m seven gram intercepts, it is clear there is some real potential to increase the outlook at the Devon Hub from the current 115,000oz mineral resource. The widespread extent of lower tenor mineralisation in the drilling, coupled with extensive surface gold anomalism supports our feeling that the Devon Hub offers tremendous opportunity. As the old saying goes, where there’s smoke there’s fire, and we have a lot of smoke.

Encouragingly, the new results at Hill East’s HE1 drilling have returned the best hits in that area so far. It’s the deepest intercept but still only about 120m deep, so there’s a long way to go. What this tells me is it does suggest increasing grade with depth, which is really exciting.

We’re expecting the final results of the 1m samples over the coming weeks and in the meantime our geologists are busy preparing to update some of the resource models, and I’m looking forward to seeing what impacts these high grades will have.

All in all, these are very encouraging results, we’ll go back for some more drilling in the very near future and I firmly believe we’re only just starting to scratch the surface here at Devon.

I will add that we’re also planning for some new drilling at Fortitude North, Red October, CardinalJubilee, which is near Sunrise Dam, and perhaps even Bindah, Gallant and Mirage. Over the last six months we’ve increased our resources to just shy of 700,000oz and I’m very keen to keep the momentum going.”

HE1, HE2 & HE5 drilling results

Significant intercepts are listed below:

(for full list of assay results >0.1 g/t Au refer Appendix 2 – Part 2)

3m of 16.8 g/t Au from 123m (21HERC042) between HE1 and HE2
3m of 6.88 g/t Au from 84m (HERC046) at HE1
3m of 1.99 g/t Au from 63m (21HERC045) at HE1
3m of 1.96 g/t Au from 21m (21HERC039) at HE5
3m of 3.07 g/t Au from 9m (21HERC035) at HE5

HE1 & 2 results and interpretation

Drilling at HE1-HE2 (refer Figure 3) was aimed at targeting a potential linkage structure between the resources of HE1 and HE2 and the drilling at LIN5 has returned a very exciting intercept of 3m of 16.88 g/t Au in hole 21HERC042 and 3m of 6.88 g/t Au in hole 21HERC046. These intercepts represent the highest and deepest grading intercepts for the HE1 & HE2 prospects and highlight the depth potential for these resources (refer Figure 4). Importantly, in terms of defining a linking structure as postulated from the SAM geophysical data, the limited drilling so far is very encouraging.

Of the eight holes drilled at HE1-HE2, six returned anomalous results and four holes returned intercepts of economic significance. It is clear that further drilling is necessary to test for resource extensions at depth and infill the potential linkage structure exploration space between HE1 and HE2.

Matsa Resources Limited

==> picture [452 x 376] intentionally omitted <==

Figure 3: Hill East 1 & 2 drilling and results and nearby Hill East resource outlines

==> picture [454 x 242] intentionally omitted <==

Figure 4: HE1 drilling and HE1 existing resource outlines, note the two new high grade intercepts that is expected to result in adjustments to the resource shape at depth once final 1m composite assays are returned.

Matsa Resources Limited

HE5 results and interpretation

HE5 comprises an existing resource and drilling (refer Figure 5) was aimed at targeting potential resource extensions to the south east with SAM geophysical responses suggest a potential structure extending in that orientation.

Past historical costean sampling in the drilling area returned peak grades of 1m of 4.18g/t Au. The new drilling returned anomalous gold along a trend in excess of 500m with a best intercept of 3m of 3.07g/t Au at a depth of only 9m (downhole) in 21HERC035 from surface. The deepest drill intercept in this round of drilling returned an encouraging 3m of 1.59 g/t Au from 54m (downhole) in hole 21HERC038.

==> picture [452 x 362] intentionally omitted <==

Figure 5: HE5 drilling and HE5 existing resource outline

Of the nine holes drilled at HE5, five returned anomalous results and three holes returned intercepts of economic significance.

LIN1, LIN2, LIN 5 & LIN6 drilling results

Significant intercepts are listed below:

(for full list of assay results >0.1 g/t Au refer Appendix 2 – Part 2)

12m of 0.51 g/t Au from 20m (21HERC052) at LIN1
6m of 0.47 g/t Au from 24m and 6m of 0.44 g/t Au from 36m (HERC057) at LIN1
3m of 0.75 g/t Au from 33m (21HERC058) at LIN2

Matsa Resources Limited

 3m of 6.91 g/t Au from 15m (21HERC061) at LIN5  3m of 1.31 g/t Au from 21m (21HERC062) at LIN5

LIN1 results and interpretation

Drilling at LIN1 targeted a >1km long x 100-200m coincident gold in soil, Arsenic, Tellurium and SAM geophysical anomaly (refer Figure 6). Drilling has confirmed the presence of a widespread low tenor gold anomaly at shallow depth (to 50m) that explains the extensive surface gold anomalism. Best drilling result includes 6m of 0.47g/t Au from 24m and a further 3m of 0.51g/t Au from 36m in hole 21HERC057. Current interpretation would suggest a gold system in excess of 1km strike, up to 15m wide to a minimum depth of 40m exists at LIN1.

Whilst drilling was generally encouraging, the results to date do not explain the strong SAM geophysical response and this geophysical anomaly remains unresolved. Whilst the recent drilling program was designed as a shallow program, is expected that deeper drilling may provide better insights regarding this geophysical response and potential gold associated mineralisation. Gold mineralisation at the nearby Devon Pit is known to extend beyond 150m depth and at LIN1 exploration at this depth remains untested.

==> picture [452 x 364] intentionally omitted <==

Figure 6: LIN1 drilling and results, with Olympic and Devon Pit Resource outlines

Matsa Resources Limited

LIN2 results and interpretation

Drilling at LIN2 (Figure 7) comprised two holes testing a gold in soil anomaly with peak rock chip values up to 7.9g/t Au in discordant quartz veins. The 300m x 150m LIN2 anomaly is located adjacent to the Olympic prospect and northwest along strike of LIN1. As noted at LIN1, LIN2 drilling results suggest a discrete low tenor gold anomaly extends from surface to shallow depth with our deepest intercept only 36m below surface. Current interpretation would suggest a gold system in excess of 300m strike, up to 3m wide to a minimum depth of 40m exists at LIN2. It is thought deeper drilling could return more favourable intercepts.

==> picture [452 x 356] intentionally omitted <==

Figure 7: LIN2 drilling and results, with Olympic and Devon Pit Resource outlines

LIN5 results and interpretation

LIN5 represent a new target identified from surface gold anomalism with peak rock chip sample values up to 6.3g/t Au approximately 400m x 120m (refer Figure 8). The LIN5 anomaly does not contain any surface indications of historical workings. The gold in soil anomaly sits over a weak SAM geophysical response that may indicate a zone of dilation.

Drilling at LIN5 has returned a very exciting intercept of 3m of 6.91g/t Au at a depth of only 15m (downhole) in 21HERC061 from surface. Hole 21HERC062, drilled approximately 200m to the NE, returned a highly encouraging intercept of 6m of 1.31g/t from only 21m depth. A striking feature of the LIN5 anomaly is it’s NE orientation, which is known to be an important mineralisation trend at Hill

Matsa Resources Limited

East where historical underground mining followed a trend approximating 45[o] . In a regional context both Red October and Sunrise Dam are set on 45[o] structural trends.

==> picture [452 x 326] intentionally omitted <==

Figure 8: LIN5 drilling and results

LIN6 results and interpretation

The LIN6 target sits approximately 400m west of the HE2 resource and is located on a N-NE trending drainage channel that suggests the potential presence of a structure that has undergone preferential weathering. The anomaly is defined by a tight gold in soil anomaly and moderate SAM geophysical response with a relatively small footprint. There is no previous drilling at this anomaly.

Drilling at LIN6 (Figure 9) comprised two holes for 194m. The 3m composite 21DVRC060 sent for assay was contaminated and replacement 1m samples have now been sent. Drilling chips show moderate levels of alteration in hole 21DVRC060 however, no alteration was noted in hole 21DVRC059. Final assays are expected in the coming weeks.

Matsa Resources Limited

==> picture [446 x 283] intentionally omitted <==

Figure 9: LIN6 drilling and results and nearby Hill East resource outlines

Devon South drilling results

Significant intercepts are listed below:

(for full list of assay results >0.1 g/t Au refer Appendix 2 – Part 2)

3m of 0.84 g/t Au from 81m (21DVRC063) at Devon South
3m of 0.67 g/t Au from 24m (21DVRC061) at Devon South

Devon South results and interpretation

Devon South was defined by low order gold in soil geochemistry and a series of historical costean samples returning peak assays of 3.4m of 9.3 g/t Au. Historical drilling by Haoma returned a number of encouraging intercepts with a peak of 6m of 4.68 g/t Au in hole HLP36[3] (refer Figure 10).

Nine drill holes were completed and all returned low tenor gold mineralisation with a best intercept of 3m of 0.84 g/t Au (refer Figure 11). The drilling failed to define economic intercepts of significant continuity or replicate the type of grades recorded in the historical Haoma drilling. Final 1m composite assays are awaited to determine the next steps for this prospect area.

3 ASX Announcement “High Grade Results from Resampling confirms Potential New Near Surface Gold Discovery at Linden” (Anova Metals Ltd, formerly Exterra Resources Ltd EXC 20th October 2015

==> picture [447 x 253] intentionally omitted <==

Figure 10: Historical drilling and costeans at Devon South in the SE corner of M39/500 tenement (blue outline)

==> picture [452 x 381] intentionally omitted <==

Figure 11: Devon South drilling

Devon Pit drilling results

Significant intercepts are listed below:

(for full list of assay results >0.1 g/t Au refer Appendix 2 – Part 2)

6m of 2.33 g/t Au from 69m (21DVRC054) at Devon Pit
3m of 7.2 g/t Au from 63m (21DVRC053) at Devon Pit

Devon Pit results and interpretation

In April 2021 Matsa announced a Resource of 65,000oz[4] for the Devon Pit and in April 2021 a scoping study showed A$40M to be made[5]

A small program 6 drill holes (5 holes completed) was designed to test for extensions to the narrow but high grade Hangingwall lode of the Devon Pit Resource (refer Figure 12). Drilling returned mixed results at both the northern and southern extremities of the lode system. Historical mapping by past workers mapped a number of small SW-NE brittle fault structures across the region and it is thought these types of structures may have impacted the north and southern extent of the Devon Pit Resource resulting in only minor mineralisation being detected in the drilling.

==> picture [452 x 348] intentionally omitted <==

Figure 12: Devon Pit drilling and Devon Pit and Olympic existing resource outlines

4 ASX Announcement 8th April 2021 - Initial High Grade Resource at Devon Lake Carey Gold Project

5 ASX Announcement 14th April 2021 - Devon Pit Scoping Study Delivers Excellent Results

Matsa Resources Limited

Whilst final 1m composite sample assays are pending, it is expected that the strong intercepts of 6m of 2.33 g/t Au (21DVRC054) and 3m of 7.2 g/t Au (21DVRC053) will make a positive impact to an update of the Devon Pit Resource

Significance of the new RC drilling results

Exploration at Devon has identified widespread surface gold anomalism in both soil sampling and an abundance of historical workings. This anomalism covers a broad area in excess of 5km strike by 4km across strike. Matsa has previously reported a number of gold in soil anomalies and SAM geophysical responses that form the basis of drill targeting.

The drilling results demonstrate that the anomalous surface gold extends below surface to depths of at least 120m, which is the maximum depth of recent drilling. Whilst results returned a limited number of drill intercepts of significant “economic” type grades, it equally encouraging that a large number of thick lower grade “smoke” intercepts were recorded across the entire program. It is postulated that such a widespread distribution of both surface and below surface gold anomalism, could be associated with more substantial mineralisation at depth that is yet to be explored.

Drilling results at HE1 & HE2 are considered hugely encouraging suggesting significant exploration potential at depth remains with the deepest hole in this Resource area returning the highest grade for HE1 & HE2 being 3m @ 16.8g/t from 123m in hole 21HERC042. Importantly, drilling results at HE1 and HE2 are expected to result in an update of the resource models for these 2 prospects.

Results at HE5 hint at potential extensions to mineralisation and potential resource implications and new mineralisation at LIN5 demonstrates the potential of the Devon Hub to offer further new opportunities.

Whilst drilling at LIN1 did not return economic intercepts, the widespread thick low grade anomalous gold at relatively shallow depths supported by surface gold anomalism demonstrates gold presence is not restricted to the surface. Further drilling at depth at LIN1 may return more encouraging results in the future.

The widespread surface and near surface anomalism, coupled with unresolved SAM geophysical responses.

Next Steps

Model updates will be required for Devon Pit, HE1, 2 and 5 following receipt of the final assays for the 1m composite samples (expected July-August 2021). A comprehensive review of the drilling results in context of targeting SAM geophysical responses, will be completed to determine the suitability of using SAM geophysical techniques at other prospects in the future.

Matsa is now planning to undertake further drilling at the Devon Hub, particularly at HE1, HE2, HE5 and LIN5, as well as other prospects such as Fortitude North, Mirage, Bindah, Gallant and Red October underground in the second half of 2021.

Upcoming news flow

	Matsa quarterly report	ETA end Jul 2021
	Final assay results of Devon RC drilling	ETA Jul-Aug 2021
	HE1 – Resource update	ETA Jul-Aug 2021

Matsa Resources Limited

HE5 – Resource update ETA Aug 2021
Lion Fish (Red October) - Resource update ETA Aug 2021  Fortitude Stage 2 – Resource update ETA Aug 2021

Sampling and Assay Procedures

Sampling and assay procedures and protocols are documented in Appendix 1, assays >0.1g/t Au are listed in Appendix 2 - Part 2. Assays are summarised together with previous drilling in Figures 2 - 5.

Matsa’s sampling protocols as noted in Appendix 1, specify that:

first pass assays are carried out on 3m composite samples
1m split samples are submitted for composite intervals returning >0.1 g/t Au

Drilling results presented in this announcement, unless otherwise indicated, are all 3m composite samples. Drill hole locations are summarised in Figure 1.

This ASX announcement includes references to past geochemical and geophysical results which form the basis of future drill targeting. Recent Resource announcements (Devon Pit, Olympic and Hill East) and also summarise previous drill hole results.

Lake Carey Background

The Lake Carey Gold Project comprises Matsa’s Red October, Fortitude and Devon Mines and contains a significant number of historic gold workings. Recent successful surface drilling by Matsa has been focused on the Devon Pit, Olympic and Hill East prospects. In 2020, Matsa announced high grade drilling results from its exploration at the underground Red October gold mine.

The Company has established Mineral Resources of 694koz and an Ore Reserve of 58koz at the Lake Carey Gold Project. Further exploration and mine planning is, in time, expected to grow this Mineral Resource and Ore Reserve base.

Early in 2021, the Company announced significant and positive economic implications to the Lake Carey Gold Project if it were to build and operate its own 600,000tpa processing plant[6] . The study identified cost savings to process Lake Carey ore compared to the current 3rd party toll treatment or other processing arrangements. A Matsa owned and operated processing plant is therefore considered important to unlock the development potential of a number of deposits that would return higher margins under this model where under previous processing options these deposits would otherwise be significantly hampered by high cost structures.

In light of recent successes, the Company announced[7] a refocused strategy which will enable Matsa to process Lake Carey ore through a Matsa owned processing plant.

6 ASX Announcement 22 January 2021 - Concept Study 600,000tpa Treatment Plant Lake Carey Project

7 ASX Announcement 29 January 2021 - Transformational Exploration Strategy Lake Carey Project

Matsa Resources Limited

==> picture [451 x 290] intentionally omitted <==

Figure 13: Lake Carey Gold Project and Tenement package colour coded by hubs

Hubs:

Red October (red) Fortitude (yellow) Devon (blue) Lake Carey South (orange)

Lake Carey North (pink) 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 [email protected]

Competent Person Statement

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves, is based on information compiled by Mr Pascal Blampain, who is a Member of the Australian Institute of Geoscientists (AIG) and a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Pascal Blampain is a Director 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.

==> picture [842 x 56] intentionally omitted <==

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

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

Appendix 1 - Matsa Resources Limited – Devon RC Drilling May 2021

Section 1 Sampling Techniques and Data

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

Criteria	JORC Code explanation Commentary	JORC Code explanation Commentary
*Sampling* *techniques*	 Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad _meaning of sampling. _	RC drill cuttings sampled at 1m intervals through cone splitter into numbered bag. Bulk residues stacked on the ground with one metre split sample on top. Composites samples ~3kg in weight representing 3m downhole intervals are hand scooped from bulk residue submitted for gold-only assay.
	 Measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	Composite samples are poorer quality samples than the cone split 1m samples, but are used to identify mineralised intervals. Consequently, 1m split samples in all composite intervals >0.1 g/t are assayed for final result. Where several composite samples return >0.1 g/t, any intermediate composited intervals which did not assay>0.1g/t Au within the “run” are also selected for assayof 1m splits.
	 Aspects of the determination of mineralisation that are Material to the Public Report. 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.	Samples of 2-3kg were collected for both composite and 1m split sample intervals. No special measures were taken for coarse gold. Both 3m composites and 1m split samples were assayed by ALS laboratories Kalgoorlie using the 30g fire assay technique.
*Drilling* *techniques*	 Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).	Drilling was carried out using a truck mounted RC rig. Drilling employed a high quality face sampling RC system with sampling carried out through a cyclone and cone splitter which was cleaned regularly. Drilling made use of a booster and overall sample quality was good despite strong water inflows, dry samples throughout.
*Drill sample* *recovery*	 Method of recording and assessing core and chip sample recoveries and results assessed.	Sample recovery as determined by bulk residue volume was reasonably to highly consistent and sufficient for an evaluation drilling program.

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 | [email protected]

Bangkok Office: Unit 1801, Pacific Place 2, 142 Sukhumvit Road, Klongtoey, Bangkok 10110 | T +66 0 2653 0258

Matsa Resources Limited

Criteria	JORC Code explanation Commentary	JORC Code explanation Commentary
	 Measures taken to maximise sample recovery and ensure representative nature of the samples.	Every effort made to clean sample system at the end of each 6m rod run. Hand sampling of composites was carried out carefully to avoid any contamination by soil.
	 Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	No significant change in volume of drill cuttings was observed in association with mineralisation.
*Logging*	 Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.  Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.  The total length and percentage of the relevant intersections logged.	Simple qualitative geological logs using standard geological coding sheets. Logging is qualitative in nature. Logging was carried out on all RC cuttings.
*Sub-sampling* *techniques* *and sample* *preparation*	 If core, whether cut or sawn and whether quarter, half or all core taken.  If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.  For all sample types, the nature, quality and appropriateness of the sample preparation technique.  Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples  Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second- half sampling	Non core. Composite samples were scooped from bulk residue piles. 1m samples bagged at cyclone through rotary splitter. Sample prep for 3m (or 1m) composites are dried and subject to conventional crushing and pulverizing appropriate for 30g fire assay. Appropriate QAQC samples (standard samples, blank samples and field duplicates) were included for both the original composite assay stream and for the 1m split samples reported here. Scooped composites can be biased but individual 1 metre samples are continuous rotary split samples and as such are expected to be highly representative of in situ mineralisation. Sample weights of ~3kg documented are adequate for fine gold.
	 Whether sample sizes are appropriate to the grain size of the material being sampled.

Matsa Resources Limited

Criteria	JORC Code explanation Commentary	JORC Code explanation Commentary
*Quality of* *assay data and* *laboratory* *tests*	 The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	Composite samples were assayed by Photon Assay, dried and crushed to nominal -3mm and ~500g linear split into photon assay jar for analysis. All excess sample retained. Assay accuracy determined by laboratory QACQ process. Very high grade gold assay values were subjected to appropriate determinations prior to reporting. All samples were assayed byconventional 30gfire assay
	 For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.  Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie. lack of bias) and precision have been established.	Not applicable. QAQC samples were submitted for 30g fire-assay as follow: 1,258m composite samples were accompanied by 60 duplicate samples, 60 standard samples and 50 blank samples Analysis of the QAQC samples shows acceptable variation around expected values. These were submitted by Matsa in addition to comprehensive suite of laboratory QA/QC samples.
*Verification of* *sampling and* *assaying*	 The verification of significant intersections by either independent or alternative company personnel.  The use of twinned holes.  Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	As noted, individual 1m splits were submitted for assay to more accurately define the 3m composite intercepts for reporting. All assay and sampling procedures have been verified by company personnel. All results reviewed and cross checked by Exploration Manager Dave Fielding. No twinned holes were completed. Geological and sampling data recorded on Toughbook in the field to minimise transcription errors. Hole locations recorded on GPS and compared prior to upload to database.
	 Discuss any adjustment to assay data.	Assays reported in this announcement are assays of 1m split samples for all drill holes 21DVRC052-21DVRC064 and 21HERC033-21HERC062 with the exception of 21DVRC055 which was not drilled.
*Location of* *data points*	 Accuracy and quality of surveys used to locate drill holes (collar and down- hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	Collar location surveyed by hand held GPS to an accuracy of <5m. RC drill holes were set up at surface using a compass and clinometer. Downhole measurements of azimuth, and dip were carried out using gyroscopic tool downloaded digitally. Downhole Surveys have been incorporated into the interpretive cross sections in the bodyof the report.

Matsa Resources Limited

Criteria	JORC Code explanation Commentary	JORC Code explanation Commentary
	 Specification of the grid system used.  Quality and adequacy of topographic control.	GDA94 UTM co-ordinate system Zone 51. Collar locations subject to accuracy of hand held GPS and likely <3m accuracy in xy and 5m in RL
*Data spacing* *and* *distribution*	 Data spacing for reporting of Exploration Results.	RC drilling was to test identified Geochem and geophysical anomalies recently identified and reported as ASX announcements. Drill holes spacing was variable and not less than 40m centres at their closest.
	 Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.  Whether sample compositing has been applied.	This drilling was exploratory drilling with general hole spacing set between 40 and 200m to test mineralised distribution or general extent of mineralisation. Follow up infill drilling would be planned for the purpose of defining any resource Compositing of samples from 1m to a maximum of 3m was carried out for first pass assay.
*Orientation of* *data in* *relation to* *geological* *structure*	 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.	Angled drilling was oriented to take into account the structural interpretation of the known orientation of lodes which is interpreted to dip around -45 to 60 degrees towards the SW.
	 If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	Unlikely to be biased. Drilling designed to be as closely as possible, normal to interpreted strike of the lode/target
*Sample* *security*	 The measures taken to ensure sample security.	Samples are delivered to the laboratory by Matsa Staff. No special security procedures are carried out in the field.
*Audits or* *reviews*	 The results of any audits or reviews of sampling techniques and data.	No audit carried out yet.

Matsa Resources Limited

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	Commentary	Commentary	Commentary	Commentary	Commentary
*Mineral* *tenement and* *land tenure* *status*	 Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.  The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.	Exploration w	as carried out over the followingtenements:				Units HA BL
		Tenement	Status	Holder	Granted	Area	Units
		M39/500 E30/1232	LIVE Live	Matsa Gold Ltd Matsa Gold Ltd	20/12/2013 8/12/2009	419 6	HA BL
*Exploration done* *by other parties*	 Acknowledgment and appraisal of exploration by other parties.	RC drilling was completed in the 1980s. Previous drilling was carried out by a variety of companies, mainly Haoma Resources and later GME Resources
*Geology*	 Deposit type, geological setting and style of mineralisation.	The deposit comprises high grade sulphide quartz stringers in a mineralised zone dipping steeply towards the NE. There are additional related mineralised structures which occur as splays or adjacent bodies of mineralisation. Mineralisation occurs in a steeply dipping quartz sulphide lode within a basaltic volcanic sequence including fine grained interflow sediments and intrusive porphyrybodies.
*Drill hole* *Information*	 A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all material drill holes: `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.	Drill hole information is summarized in the report, with collar location setup information and diagrams in the body of the report, assays 1 g/t Au are included as Appendix 2. Significant assays are presented in the body of the report. Reference is made to historic drilling, which has been summarized in the body of the report. No significant information was excluded deliberately.

Matsa Resources Limited

Criteria	JORC Code explanation Commentary	JORC Code explanation Commentary
*Data* *aggregation* *methods*	 In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg. cutting of high grades) and cut-off grades are usually material and should be stated.  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.	Quoted intercepts are based on amalgamations of individual 1m split or 3m composite samples sometimes. Aggregates are reported as simple averages of individual assay results all quoted intercepts include bounding samples returning >1 g/t Au and contains less than 3m of mineralized waste material <1 g/t Au, within the quoted intercept. No metal equivalents have been used
*Relationship* *between* *mineralisation* *widths and* *intercept lengths*	 These relationships are particularly important in the reporting of Exploration Results.  If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.  If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).	All intercepts quoted relate to downhole depth and true widths have not been quoted. Current interpretation suggests that drill holes need to be oriented towards the NE to test moderately SW dipping main lode and potentially subvertical hanging wall structures. Intercepts are expressed in downhole metres.
*Diagrams*	 Appropriate maps and sections (with scales) and 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.	A drill hole location plan, longitudinal projections of the of the various lodes (where modelled) and summary cross sections have been used to illustrate the results in a meaningful way.
*Balanced* *reporting*	 Where comprehensive reporting of all Exploration 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.	All exploration results for each key target area have been discussed to provide context of both low and high grade results. A full list of all drill intercepts greater than 0.1g /t Au has been included in Appendices.
*Other* *substantive* *exploration data*	 Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	The review made use of publicly available aeromagnetics and gravity. Past drilling by a number of companies on the project as compiled by GME Resources was acquired upon acquisition of the project. The report refers to recent reporting by Matsa regarding gold in soil and SAM geophysical results used to generate drill targets the subject of this program and announcement.