MATSA RESOURCES LIMITED - Capital/Financing Update 2021

==> picture [596 x 55] intentionally omitted <==

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

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

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

ASX Announcement

9[th] March 2021

Magnetic (SAM) Survey Highlights New Targets at Devon – Lake Carey Gold Project

Highlights

38 structural targets identified by a recent Sub-Audio Magnetic (SAM) Survey at Devon provides new drilling targets

CORPORATE SUMMARY

Executive Chairman

The survey was designed to cover a structurally complex and strongly gold mineralised area SE of Devon, including Hill East. Previously reported drilling results intersected mineralisation at shallow depth including[1] :
5m @ 4.01 g/t Au from 6m (20HERC001)
9m @ 3.04 g/t Au from surface (20HERC002)
6m @ 3.43 g/t Au from 15m (20HERC005)
27m @ 2.04 g/t Au from 2m (20HERC032)
4m @ 6.3 g/t Au from 13m (20LBRC003)
13m @ 1.86 g/t Au from surface (20LBRC004)
Matsa has selected 3 targets which have been prioritised for immediate follow up drilling:
EM_LIN1 - a strong electromagnetic anomaly coincident with a zone of extensively developed stockwork quartz veining in sheared and brecciated metasediments 300m SE of the Devon pit. No previous drilling has been recorded on this target which is covered by a soil gold anomaly >1km long
MMC_HE1 - an ESE trending strong magnetometric conductivity zone linking the HE1 and HE2 prospects at Hill East, where Matsa announced strong drilling results in early 2020
MMC_HE5 - an ESE trending strong magnetometric conductivity zone, which is adjacent to Hill East Target HE5 where high grade gold mineralisation was intersected by Matsa at shallow depth in early 2020

Paul Poli

Directors

Frank Sibbel

Pascal Blampain

Director & Company Secretary

Andrew Chapman

Shares on Issue

271.14 million

Unlisted Options

77.48 million @ $0.17 - $0.35

Top 20 shareholders

Hold 56.86%

Share Price on 8[th] March 2021

8.5 cents

Market Capitalisation

$23.05 million

Further targets identified in the survey are currently being evaluated and will continue to be refined over the coming months through follow up field inspection, sampling and drilling

1 ASX Announcement 28 April 2020 - Further High Grade Gold near Devon Hill East - Lake Carey Gold Project

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]

==> picture [596 x 55] intentionally omitted <==

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

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

Matsa Resources Limited (“Matsa” or “the Company” ASX: MAT) is pleased to announce that the SubAudio Magnetic (SAM) survey completed at Devon has produced 38 targets favourable for gold mineralisation of which 3 have been selected for immediate drill testing.

Devon, within the Lake Carey Gold project (Figure 1), is located 7km south of Matsa’s Red October Mine and contains a significant number of historic gold workings. Recent successful drilling by Matsa has been focused on the Devon pit, Olympic, and Hill East prospects. Geological and resource models for Devon pit and Olympic are currently being updated based on the most recent drilling.

==> picture [384 x 542] intentionally omitted <==

Figure 1: Lake Carey Gold Project

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]

==> picture [596 x 55] intentionally omitted <==

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

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

SAM Survey Devon Area

The SAM survey was designed to cover Hill East, directly south of the Devon pit, where drilling by Matsa has identified significant gold at shallow depth at several prospects including HE1 – HE7 and new 1.1km soil gold anomaly LIN1 (Figure 2)[ 2] .

Hill East mineralisation is typically associated with high grade quartz veins which based on past drilling are mineralised over a strike extent of <200m and commonly associated with historic gold workings. Several workings on the eastern side of Hill East are closely associated with a 1.5km long NS trending soil gold anomaly defined by soil gold values >50 ppb Au.

The survey was intended to provide an improved structural framework for gold mineralisation at Hill East to guide further drilling expected to commence in April 2021. SAM has the potential to directly detect mineralised veins/faults, and to map fault intersections as possible off-sets or as vectors for deeper drilling.

==> picture [357 x 458] intentionally omitted <==

Figure 2: Devon area location of SAM Survey, soil gold anomalies

2 ASX Announcement 28 April 2020 - Further High Grade Gold near Devon Hill East - Lake Carey Gold Project

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]

==> picture [596 x 55] intentionally omitted <==

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

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

LIN1 Target Enhanced by SAM Survey

The LIN1 prospect is characterised by a 1.1km long soil gold anomaly associated with strongly anomalous pathfinder elements Tellurium and Arsenic. LIN1 also coincides with a strong late channel EM anomaly EM_LIN1, which was detected by the SAM survey (Figure 3).

==> picture [448 x 237] intentionally omitted <==

Figure 3: LIN1 prospect highlighting coincident gold soil (orange and red contours), Arsenic, Tellurium and TFEM anomaly

The LIN1 TFEM anomaly (Total Field Electromagnetic) is underlain by strongly sheared and brecciated metasediments at its northern end which passes under colluvium cover to the south. The sheared and brecciated metasediments at LIN1 form outcrops up to 30m wide with strongly developed stockwork quartz veining, brecciation and secondary iron oxides probably after pyrite (Figure 5). LIN1 is interpreted to be an interflow sedimentary horizon within a basaltic volcanic sequence and appears to dip moderately towards the NE at an angle of ~60[o] (Figure 4). Textural features at LIN1 are strongly suggestive of extensive hydrothermal alteration.

Two lines of historical aircore drilling immediately east of LIN1 include two holes which intersected significant gold mineralisation at shallow depth - 4m at 1.54 g/t Au from 26m to EOH (EXAC047) and 1m of 3.04 g/t Au from 8m (EXAC049)[3] . All drill holes were angled towards the east and Matsa considers this drilling unlikely to have tested LIN1. As such the LIN 1 anomaly represents a high priority drilling target.

Rock chip sampling of LIN1 has been completed and assays are awaited.

LIN1 represents an exciting walk-up target and initial drill testing has been designed and planned to commence in the coming weeks.

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

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]

==> picture [596 x 55] intentionally omitted <==

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

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

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

Figure 4: LIN 1 prospect view along strike towards SE, strongly sheared and brecciated metasediment with stockwork quartz veining. Contrasting vegetation types between LIN1 and enclosing basaltic volcanics

Hill East prospects

The Hill East prospects are partly contained within a strong 1.5km long soil/auger gold geochemical anomaly with values up to 0.35 g/t Au. In April 2020, Matsa conducted an initial drilling campaign at Hill East that returned excellent results[4] (Figure 5). Drilling to date has been focused on mineralisation at shallow depth, in and adjacent to, high grade quartz veins mostly with associated historic workings. Individual targets appeared to be discrete ~EW trending veins with limited strike extent and with no clear common link between individual prospects and the NS trending soil gold anomaly.

Recent fieldwork has identified a pattern of consistent NW and ESE quartz lode trends which are apparent at a number of the Hill East prospects. These lode trend directions can also be observed regionally with key gold deposits such as at Red October, Gallant, LIN 1 and Olympic located along similar structural trends.

An examination of results of the recent SAM survey identified two well-defined ESE trending structural features named MMC_HE1 and MMC-HE5:

Target MMC_HE1 appears to link previously isolated HE1 and HE2 prospects
• Target MMC_HE5 may be an ESE extension of HE5 (target corresponds with SGC Target 38 – Figure 6).

4 ASX Announcement 28 April 2020 – Further High Grade Gold near Devon, Hill East - Lake Carey Gold Project

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]

==> picture [596 x 55] intentionally omitted <==

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

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

These two SAM targets significantly increase the exploration space associated with HE1 and HE5. Importantly the ESE strike direction of these two SAM targets mimics the strike of LIN1.

==> picture [421 x 563] intentionally omitted <==

Figure 5: Hill East with distribution of historical workings, recent Matsa drilling, regional rock chip sampling and priority SAM geophysical targets (purple outline)

Near HE5 and HE6, another strong geophysical response with a similar orientation has been identified in an area characterised by numerous historical workings (refer Figure 6).

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]

==> picture [596 x 55] intentionally omitted <==

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

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

Devon SAM Survey

Southern Geoscience Consultants (SGC) were commissioned to process, interpret and report on the SAM survey results and selected targets are Tabulated in Appendix 2. The survey was carried out by Gap Geophysics in October 2021, the survey operations report which provides background on the SAM technique, survey details and results is included as Appendix 3.

==> picture [450 x 529] intentionally omitted <==

Figure 6: SGC Target areas labelled with target ID’s (numbers) and priority (red-high, orangemoderate and green-low) overlaying MMC and RTP1VD greyscale image.

The interpretation by SGC, returned 19 high priority structural targets, mostly structural intersections, from a total of 38 targets identified (refer Appendix 2).

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]

==> picture [596 x 55] intentionally omitted <==

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

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

Matsa is continuing to refine and follow up SAM targets in conjunction with sampling and drilling data. It is expected that drill testing of the geophysical anomalies at LIN1. MMC_HE1 and MMC_HE5 will provide data that will assist in prioritising follow up of the remaining SAM targets and potentially identifying new SAM targets.

Positive drilling results are expected to warrant further SAM surveys to cover areas of significant gold mineralisation elsewhere in Matsa’s Lake Carey project. There is excellent potential to develop additional new targets for future drilling using this technique.

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

The information in this report that relates to Exploration results, is based on information compiled by David Fielding, who is a Fellow of the Australasian Institute of Mining and Metallurgy. David Fielding is a full time employee of Matsa Resources Limited. David Fielding has sufficient experience which is relevant to the style of mineralisation and the type of ore deposit under consideration and the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. David Fielding consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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]

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

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

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

Appendix 1 - Matsa Resources Limited – Devon

Section 1 Sampling Techniques and Data

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

Criteria	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. Reference cited for quoted Hill East drilling (MAT Announcement to ASX 28th April 2020 Further High Grade Gold near Devon, Hill East - Lake Carey Gold Project) includes details of sampling techniques • Measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • 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.
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.). Reference cited for quoted Hill East drilling (MAT Announcement to ASX 28th April 2020 Further High Grade Gold near Devon, Hill East - Lake Carey Gold Project) includes details of Drilling techniques
Drill sample recovery	• Method of recording and assessing core and chip sample recoveries and results assessed. Reference cited for quoted Hill East drilling (MAT Announcement to ASX 28th April 2020 Further High Grade Gold near Devon, Hill East - Lake Carey Gold Project)includes details of Drill Sample recovery
	• Measures taken to maximise sample recovery and ensure representative nature of the samples.
	• 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.

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

==> picture [842 x 55] intentionally omitted <==

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

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

Criteria	JORC Code explanation Commentary
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. Reference cited for quoted Hill East drilling (MAT Announcement to ASX 28th April 2020 Further High Grade Gold near Devon, Hill East - Lake Carey Gold Project) includes details of Logging procedures • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography. • The total length and percentage of the relevant intersections logged.
Sub-sampling techniques and sample preparation	• If core, whether cut or sawn and whether quarter, half or all core taken. Reference cited for quoted Hill East drilling (MAT Announcement to ASX 28th April 2020 Further High Grade Gold near Devon, Hill East - Lake Carey Gold Project) includes details of sub sampling techniques/sample preparation on RC drilling. • 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 • Whether sample sizes are appropriate to the grain size of the material being sampled.
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. Reference cited for quoted Hill East drilling (MAT Announcement to ASX 28th April 2020 Further High Grade Gold near Devon, Hill East - Lake Carey Gold Project) includes commentary on assay data quality and laboratory tests
	• 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.

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]

==> picture [842 x 55] intentionally omitted <==

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

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

Criteria	JORC Code explanation Commentary
	• Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie. lack of bias) andprecision have been established.
Verification of sampling and assaying	• The verification of significant intersections by either independent or alternative company personnel. Reference cited for quoted Hill East drilling (MAT Announcement to ASX 28th April 2020 Further High Grade Gold near Devon, Hill East - Lake Carey Gold Project) includes details of Verification of sampling and assaying • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data.
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. Reference cited for quoted Hill East drilling (MAT Announcement to ASX 28th April 2020 Further High Grade Gold near Devon, Hill East - Lake Carey Gold Project) includes details drill hole locations and data points • Specification of the grid system used. • Quality and adequacy of topographic control.
Data spacing and distribution	• Data spacing for reporting of Exploration Results. Reference cited for quoted Hill East drilling (MAT Announcement to ASX 28th April 2020 Further High Grade Gold near Devon, Hill East - Lake Carey Gold Project)includes comments on Data spacingand distribution
	• 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.
Orientation of data in relation	• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. Reference cited for quoted Hill East drilling (MAT Announcement to ASX 28th April 2020 Further High Grade Gold near Devon, Hill East - Lake Carey Gold Project) includes description of drill hole orientations in respect to mineralisation

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]

==> picture [842 x 55] intentionally omitted <==

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

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

Criteria	JORC Code explanation	JORC Code explanation	Commentary
to geological	•	If the relationship between the drilling orientation and the orientation of key
structure		mineralised structures is considered to have introduced a sampling bias, this
		should be assessed and reported if material.
Sample	•	The measures taken to ensure sample security.	Reference cited for quoted Hill East drilling (MAT Announcement to ASX 28th
security			April 2020 Further High Grade Gold near Devon, Hill East - Lake Carey Gold
			Project)includes details of sample security
Audits or	•	The results of any audits or reviews of sampling techniques and data.	No audit carried out yet.
reviews

Section 2 Reporting of Exploration Results

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

Criteria JORC Code explanation	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 was	carried out over the followingtenements:				Units BL HA
	Tenement	Status	Holder	Expiry	Area	Units
	E39/11232 M39/500*	LIVE Live	Matsa Gold Ltd Matsa Gold PtyLtd	8/12/2021 19th Dec 2034	6 420.31	BL HA

*Exploration done* *by other parties* • Acknowledgment and appraisal of exploration by other parties. Drill Hole intercepts quoted in EXAC047 and EXAC048 were included in release by Anova Metals (AVW) Formerly Exterra Resources (EXC) to ASX - High Grade Results from Resampling confirms Potential New Near-Surface Gold Discovery at Linden (AVW, formerly Exterra Resources Ltd EXC) 20thOctober 2015

Exploration done • Acknowledgment and appraisal of exploration by other parties. by other parties

Drill Hole intercepts quoted in EXAC047 and EXAC048 were included in release by Anova Metals (AVW) Formerly Exterra Resources (EXC) to ASX - High Grade Results from Resampling confirms Potential New Near-Surface Gold Discovery at Linden (AVW, formerly Exterra Resources Ltd EXC) 20[th] October 2015

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]

==> picture [842 x 55] intentionally omitted <==

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

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

Criteria	JORC Code explanation	Commentary
*Geology*	• Deposit type, geological setting and style of mineralisation.	Targets which are the subject of this announcement, are located in a sequence
		of basaltic volcanics separated by siliceous interflow sedimentary units up to 30
		metres wide. Gold mineralisation principally in quartz veins appears to be
		controlled and focused byfaulting,typicallyENE,NS and WNW trendingfaults.
*Drill hole*	• A summary of all information material to the understanding of the	Reference cited for quoted Hill East drilling (MAT Announcement to ASX 28th
*Information*	exploration results including a tabulation of the following information for	April 2020 Further High Grade Gold near Devon, Hill East - Lake Carey Gold
	all material drill holes:	Project) includes a tabulation of drill collar locations and key assay data at Hill
	`o` easting and northing of the drill hole collar	east
	`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 averaging techniques,	Reference cited for quoted Hill East drilling (MAT Announcement to ASX 28th
*aggregation*	maximum and/or minimum grade truncations (eg. cutting of high grades)	April 2020 Further High Grade Gold near Devon, Hill East - Lake Carey Gold
*methods*	and cut-off grades are usually material and should be stated.	Project) includes details data aggregation methods.
	• 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 reporting of	All intercepts quoted are downhole widths, there has been no attempt to
*between*	Exploration Results.	convert these to true width of mineralisation
*mineralisation*	• If the geometry of the mineralisation with respect to the drill hole angle is
*widths and*	known, its nature should be reported.
*intercept lengths*	• 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’). _

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]

==> picture [842 x 55] intentionally omitted <==

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

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

Criteria	JORC Code explanation	Commentary
*Diagrams*	• Appropriate maps and sections (with scales) and tabulations of intercepts	Summary plans are shown in the report,
	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 Results is not	All available drilling information from the area under review was used.
*reporting*	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, should be reported	Targets quoted were determined from a recently completed SAM geophysical
*substantive*	including (but not limited to): geological observations; geophysical survey	survey with Targets selected by Southern Geoscience Consultants included as
*exploration data*	results; geochemical survey results; bulk samples – size and method of	Appendix 2., The Survey Operations report by GAP Geophysics who carried out
	treatment; metallurgical test results; bulk density, groundwater,	data acquisition provides details about the SAM technique and specific survey
	geotechnical and rock characteristics; potential deleterious or	details is included as Appendix 3.
	contaminating substances.
*Further work*	• The nature and scale of planned further work (eg tests for lateral	Drill testing of selected targets will be followed by a review of the final list of 38
	extensions or depth extensions or large-scale step-out drilling).	targets from the Southern Geoscience Consultants, in the light of drilling results.
	• Diagrams clearly highlighting the areas of possible extensions, including	Further drilling is proposed.
	the main geological interpretations and future drilling areas, provided this
	information is not commercially sensitive.

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]

==> picture [596 x 56] intentionally omitted <==

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

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

Appendix 2: SGC Target Table for Hill East SAM Survey

SUMMARY TABLE OF TARGETS

Target ID	Priority	Description
1	1	Intersecting major structures associated with mod-high conductivity (MMC) trend
2	1	Intersecting major structures adjacent to mod-high conductivity (MMC) trend and late-time (Ch10-14)conductive zone(TFEM)
3	2	Intersecting major and minor structures associated with late-time (Ch10-14) conductive zone (TFEM)
4	2	Intersecting major and minor structures associated with late-time (Ch10-14) conductive zone (TFEM)
5	2	Intersecting major and minor structures associated with late-time (Ch10-14) conductive zone (TFEM)
6	1	Intersecting major structures adjacent to mod-high conductivity (MMC) trend and associated with late-time(Ch10-14)conductive zone(TFEM)
7	1	Intersecting major structures associated with high conductivity (MMC) trend
8	1	Intersecting major structures adjacent to mod-high conductivity (MMC) trend and late-time (Ch10-14)conductive zone(TFEM)
9	1	Intersecting major structures associated with mod-high conductivity (MMC) trend
10	2	Intersecting major structures adjacent to mod-high conductivity (MMC) trend.
11	1	Intersecting major structures associated with very high conductivity (MMC) trend
12	1	Intersecting major structures associated with very high conductivity (MMC) trend
13	1	Intersecting major and minor structures associated with very high conductivity (MMC) trend
14	1	Intersecting major and minor structures associated with mod-high conductivity (MMC) trend
15	1	Intersecting major structures with possible dilation and zone of alteration (demagnetisation response)
16	1	Intersecting major and minor structures.
17	1	Intersection of major faults with dextral strike-slip. Potential alteration zone (demagnetised response)
18	1	Intersection of major faults with dextral strike-slip. Associated with mod-high conductivity (MMC)N-S trend and late-time(Ch10-14)conductive zone(TFEM)
19	1	Intersecting major and minor structures near to mod-high conductivity (MMC) trends.
20	2	Intersecting major and minor structures near to mod-high conductivity (MMC) trends and associated with late-time(Ch10-14)conductive zone(TFEM)
21	1	Intersecting major and minor structures associated with mod conductivity (MMC) trend
22	3	Intersecting major and minor structures
23	3	Intersecting major and minor structures
24	3	Intersecting major and minor structures
25	1	Intersecting major and minor structures associated with mod-high conductivity (MMC) trend
26	1	Intersecting major and minor structures associated with mod-high conductivity (MMC) trend
27	2	Intersecting major and minor structures associated with mod conductivity (MMC) trend and late-time(Ch10-14)conductive zone(TFEM)
28	2	Intersecting major and minor structures. Close to mod conductivity (MMC) trend.

==> picture [596 x 56] intentionally omitted <==

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

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

29	1	Intersecting major and minor structures associated with mod-high conductivity (MMC) N-S trend
Target ID	Priority	Description
30	2	Intersecting major and minor structures associated with low-mod conductivity (MMC) N-S trend
31	2	Intersecting major and minor structures associated with mod conductivity (MMC) N-S trend
32	3	Intersecting major and minor structures adjacent to low-mod conductivity (MMC) trend
33	3	Intersecting major and minor structures adjacent to low-mod conductivity (MMC) trend
34	2	Intersecting major and minor structures associated with mod conductivity (MMC) N-S trend
35	2	Intersecting major and minor structures associated with mod conductivity (MMC) trend. Contains known Au zone Au mineralisation within.
36	1	Intersecting major and minor structures associated with very high conductivity (MMC) trend
37	3	Intersecting major and minor structures.
38	2	Intersecting minor structure associated with mod conductivity (MMC) trend, along strike from known Au mineralisation.

Appendix 3 - Gap Geophysics SAM Survey Lake Carey Gold Project

==> picture [59 x 47] intentionally omitted <==

==> picture [102 x 43] intentionally omitted <==

Project 20071MAT Sub-Audio Ma netics Surve g y Lake Carey, Western Australia

Project reference:	20071MAT
Survey type:	Sub-Audio Magnetics (SAM)
Survey configuration:	Galvanic
Prospect(s):	Hill East
Location:	Lake Carey, Western Australia
Client:	Matsa Resources Limited
Conducted by:	Gap Geophysics Australia Pty Limited
Issuing office:	Brisbane
Date of issue:	December 2020

Gap GeoPhysics Australia Pty Limited T: +61 7 3846 0999 | F: +61 7 3844 0022 | GapGeo.com 2/16 Duncan Street | PO Box 5745 | West End QLD 4101 ABN: 67 116 407 580

==> picture [208 x 37] intentionally omitted <==

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

Project 20071MAT
Operations Report
----- End of picture text -----

DISCLAIMER AND COPYRIGHT NOTICE

GAP GEOPHYSICS AUSTRALIA PTY LIMITED

DISCLAIMER

This Disclaimer is an important legal document. The use of this report is governed by and subject to this Disclaimer.

Gap’s Client

The entity who commissioned this report, and who is Gap Geophysics Australia’s (Gap’s) Client is Matsa Resources Limited.

Purpose of This Report

The surveys described in this report were commissioned for the purpose of assisting sub-surface geophysical investigation to map geological structure.

Disclaimer

Gap accepts no responsibility or liability for any use of this report or any reliance upon this report by any person, other than the use of the whole of this report by the Client consistent with the Purpose.

Gap accepts no responsibility or liability to any person who relies upon a part of this report. This report must always be considered in its entirety.

COPYRIGHT

Gap is the owner of the copyright subsisting in this report.

License

Gap grants to the Client, a non-exclusive license for the full term of copyright throughout the world to use and reproduce this Report for any reason consistent with the Purpose.

Infringement

The reproduction of any part of this report by any person other than the Client, or for any reason not consistent with the Purpose is an infringement of copyright and will be prosecuted by Gap.

Page 2 of 31

==> picture [208 x 37] intentionally omitted <==

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

Project 20071MAT
Operations Report
----- End of picture text -----

Report Generation
Prepared by:	Mark Donaldson Senior Geophysicist

Document Control
Document ID	20071MAT_SAM_Operations_Report_v1.0.docx
Copy Number	Issued To
1	Matsa Resources Limited
2	Southern Geoscience Consultants

Page 3 of 31

==> picture [208 x 37] intentionally omitted <==

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

Project 20071MAT
Operations Report
----- End of picture text -----

List of Figures ....................................................................................................................................................................... 5 List of Tables ......................................................................................................................................................................... 5 Introduction .......................................................................................................................................................................... 6 Project Personnel ................................................................................................................................................................ 6 Scope ....................................................................................................................................................................................... 7 Survey Technique ............................................................................................................................................................... 8 SAM Receiver ................................................................................................................................................................... 8 SAM Transmitter............................................................................................................................................................. 9 Total Field Electromagnetics (TFEM) ..................................................................................................................... 10 Final Comments ................................................................................................................................................................ 11 Survey Results .................................................................................................................................................................... 12

Page 4 of 31

==> picture [208 x 37] intentionally omitted <==

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

Project 20071MAT
Operations Report
----- End of picture text -----

List of Figures

Figure 1	Description of TFEM integration windows used in processing. ............................................... 10
Figure 2	Hill East survey area – SAM survey layout showing the grid extents, survey traverses and
current return wire path. ................................................................................................................................................ 12
Figure 3	Hill East – total magnetic intensity, reduced to the pole, collated data. .............................. 13
Figure 4	Hill East – magnetometric conductivity, stitched grids. .............................................................. 14
Figure 5	Hill East – magnetometric conductivity, tilt derivative, stitched grids. .................................. 15
Figure 6	Hill East – total field electromagnetics, channel 1, mosaic. ....................................................... 16
Figure 7	Hill East – total field electromagnetics, channel 2, mosaic. ....................................................... 17
Figure 8	Hill East – total field electromagnetics, channel 3, mosaic. ....................................................... 18
Figure 9	Hill East – total field electromagnetics, channel 4, mosaic. ....................................................... 19
Figure 10	Hill East – total field electromagnetics, channel 5, mosaic. .................................................. 20
Figure 11	Hill East – total field electromagnetics, channel 6, mosaic. .................................................. 21
Figure 12	Hill East – total field electromagnetics, channel 7, mosaic. .................................................. 22
Figure 13	Hill East – total field electromagnetics, channel 8, mosaic. .................................................. 23
Figure 14	Hill East – total field electromagnetics, channel 9, mosaic. .................................................. 24
Figure 15	Hill East – total field electromagnetics, channel 10, mosaic. ................................................ 25
Figure 16	Hill East – total field electromagnetics, channel 11, mosaic. ................................................ 26
Figure 17	Hill East – total field electromagnetics, channel 12, mosaic. ................................................ 27
Figure 18	Hill East – total field electromagnetics, channel 13, mosaic. ................................................ 28
Figure 19	Hill East – total field electromagnetics, channel 14, mosaic. ................................................ 29
Figure 20	Hill East – total field electromagnetics, channel 15, mosaic. ................................................ 30
Figure 21	Hill East – total field electromagnetics, channel 16, mosaic. ................................................ 31

List of Tables

Table 1: Key Personnel. ..................................................................................................................................................... 6 Table 2: SAM Survey Summary. .................................................................................................................................... 7 Table 3: Survey Instrument Parameters. .................................................................................................................... 8 Table 4: Data Processing Parameters. ......................................................................................................................... 9 Table 5: Transmitter System Specifications. ............................................................................................................. 9

Page 5 of 31

==> picture [208 x 37] intentionally omitted <==

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

Project 20071MAT
Operations Report
----- End of picture text -----

Project 20071MAT Sub-Audio Ma netics Surve g y

Hill East, Lake Carey, Western Australia

Introduction

Gap Geophysics Australia Pty Limited (Gap) was commissioned by Matsa Resources Limited to conduct Sub-Audio Magnetics (SAM) surveys at their Hill East prospect, near Lake Carey, 120 kilometres southeast of Leonora, Western Australia.

The objective of the survey was to map geological structures associated with mineralisation. The surveys were conducted in the period 1[st] to 14[th] November 2020.

Project Personnel

Key personnel associated with the survey described in this report are listed in Table 1.

Table 1: Key Personnel.

Role	Personnel	Organisation
Client representatives	Dave Fielding Russell Mortimer	Matsa Resources Southern Geoscience Consultants
Crew leader	Stefan Offhaus	Gap Geophysics Australia
Field crew	Alexia Vlahos Andrew Hall
Qualitycontrol manager	Mark Donaldson
Final dataprocessing, reporting	Mark Donaldson

Page 6 of 31

==> picture [208 x 37] intentionally omitted <==

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

Project 20071MAT
Operations Report
----- End of picture text -----

Scope

The survey area was defined by one polygon totalling approximately 4 square kilometres. The traverse line spacing was 50 m. Due to the proximity to Lake Carey and its highly conductive overburden, the area was split into 4 sub-blocks to minimise electromagnetic coupling. An extension to the northwest block was requested at the beginning of the field deployment. The total distance to be surveyed was nominally 91 line-kilometres using four energising dipoles.

Table 2: SAM Survey Summary.

Prospect	Grid Name	Current Source	Dipole Separation	Line Direction	Line Spacing	Area
Hill East	HE01	Galvanic	1.9 km	69°	50 m	1.3 km2
Hill East	HE02	Galvanic	1.9 km	69°	50 m	0.9 km2
Hill East	HE03	Galvanic	1.9 km	69°	50 m	0.9 km2
Hill East	HE04	Galvanic	1.9 km	69°	50 m	0.9 km2

Page 7 of 31

==> picture [208 x 37] intentionally omitted <==

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

Project 20071MAT
Operations Report
----- End of picture text -----

Survey Technique

The SAM technique, instrumentation, operating procedures, data processing strategies and data formats are described in detail in the attached document:

Gap Technical Reference Manual SAM Total B-Field Technologies_v1.2.pdf

SAM Receiver

The acquisition system and survey parameters are summarised in Table 3. Data processing parameters are shown in Table 4.

Table 3: Survey Instrument Parameters.

RovingMagnetometer Acquisition System	RovingMagnetometer Acquisition System
Instrument	GapGeophysics TM-7B SAM receiver
Sensor	Geometrics G-822 Cs vapour
Software	SAMui v20.6
Sample rate	2400 Hz
Components	Total B-field
Powerline frequency	50 Hz
Magnetometer Base Station
Magnetometer	Geometrics G857
Sample rate	0.1 Hz
Sample resolution	0.1 nT
Navigation and Positioning
GPS	Trimble Ag114
Corrections	Differential – VBS
Sample rate	1 Hz
Datum, co-ordinate system	GDA94, MGA zone 51

Page 8 of 31

Table 4: Data Processing Parameters.

==> picture [208 x 37] intentionally omitted <==

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

Project 20071MAT
Operations Report
----- End of picture text -----

Data ProcessingParameters	Data ProcessingParameters
TMI sample interval	~0.75 m after stacking
TFMMC sample interval	~1.5 m after stacking
TFEM sample interval	~3.0 m after stacking
Gridding	Minimum curvature
Grid cell size	3.125 m
TFMMC / TFEM filtering	Combination of non-linear and lowpass filtering.
TMI filtering	Diurnal corrections applied.
Magnetic inclination	-62.6°
Magnetic declination	1.4°

SAM Transmitter

The full range of Gap GeoPak transmitters, wire specifications, loop deployment techniques and electrode preparation are described in the attached document:

Gap Technical Reference Manual Gap GeoPak Transmitters_v1.5.pdf

The transmitter and operating specifications used for this survey are listed below. Table 5: Transmitter System Specifications.

Transmitter System	Transmitter System
Transmitter	Gap GeoPak IPTX-2500
Controller	Internal
Power supply	Gap GeoPak DC14-HV
Timing	GPS synchronisation
Current	HE01: 12.0 A HE02: 13.0 A HE03: 9.0 A HE04: 12.5 A
Transmit frequency	6.25 Hz
Duty cycle	50 %

Page 9 of 31

==> picture [208 x 37] intentionally omitted <==

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

Project 20071MAT
Operations Report
----- End of picture text -----

Total Field Electromagnetics (TFEM)

Discrete channels of TFEM were extracted from the data during processing. A description of the integration windows used are shown in Figure 1. Integration times used are from the top of the ramp, so channel 1 could include some ramp response. Colour images of representative TFEM channels were generated for each grid and are shown in the results section.

==> picture [479 x 245] intentionally omitted <==

==> picture [479 x 244] intentionally omitted <==

Figure 1 Description of TFEM integration windows used in processing.

==> picture [208 x 37] intentionally omitted <==

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

Project 20071MAT
Operations Report
----- End of picture text -----

Final Comments

The tilt derivative (TDR) of the magnetometric conductivity has been included both as a sharpening filter as would a first vertical derivative, but also for its function as an automatic gain correction filter to promote the relative amplitude of weaker, more subtle linear features. It promotes noise equally so should be interpreted with care.
The overburden allowed a higher transmit frequency to be used than usual near salt lakes, without suffering significant electromagnetic coupling. This indicates the on-shore ground is relatively resistive compared, say, to the eastern shore of Lake Carey. This frequency provided improved spectral separation of the SAM components where intense, near-surface magnetic minerals existed, as well as a greater number of readings per metre that aided signal strength through stacking.

Page 11 of 31

==> picture [208 x 37] intentionally omitted <==

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

Project 20071MAT
Operations Report
----- End of picture text -----

Survey Results

==> picture [479 x 76] intentionally omitted <==

==> picture [479 x 77] intentionally omitted <==

==> picture [479 x 76] intentionally omitted <==

==> picture [479 x 77] intentionally omitted <==

==> picture [479 x 76] intentionally omitted <==

==> picture [479 x 77] intentionally omitted <==

==> picture [479 x 76] intentionally omitted <==

Figure 2 Hill East survey area – SAM survey layout showing the grid extents, survey traverses and current return wire path.

Page 12 of 31

==> picture [208 x 37] intentionally omitted <==

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

Project 20071MAT
Operations Report
----- End of picture text -----