MATSA RESOURCES LIMITED — Interim / Quarterly Report 2024

Oct 29, 2023

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ASX Announcement

30[th] October 2023

Quarterly Activities Report to 30th September 2023

HIGHLIGHTS

• Execution of an agreement to give AngloGold a three-month exclusivity period to conduct due diligence on the Company’s Lake Carey Gold Project

• Matsa issued Default Notices to Linden Gold Alliance Limited, its joint venture partner in the Devon Gold Project, for failure to comply with certain obligations and to meet specific milestones as required by the Mine Management and Profit Sharing Joint Venture Agreement (”MMPSA”)

CORPORATE SUMMARY

Executive Chairman

Paul Poli

Directors

Pascal Blampain Andrew Chapman

Shares on Issue

• Matsa, as required by the MMPSA, issued a Dispute Notice to Linden in relation to obligations and milestones not met

• Matsa and Linden are currently in discussions in order to seek a commercial resolution to the ongoing disputes within the MMSPA Matsa raised $2M via a placement to institutional and sophisticated investors via the issue of 66.67M shares at $0.03 each along with a free attaching option for every two shares issued

• 56 holes for 3,101m RC drilling completed at the Devon Pit

• New lepidolite pegmatite discoveries in western Thailand resulting in registration of new applications for Exploration Prospecting Licences

475.67 million

Unlisted Options

58.98 million @ $0.07 - $0.21

Top 20 shareholders

Hold 58.41%

Share Price on 30[th] October 2023

3.6 cents

Market Capitalisation

• Progress continues to be made on select tenements for granting and drilling approvals in Thailand for lithium exploration

A$17.12 million

• Matsa notes the significant M&A activity in the Laverton – Leonora region and that Matsa has a significant tenement position with close to 1Moz in resources

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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OVERVIEW

Matsa Resources Limited (“Matsa” or “the Company” ASX: MAT) is pleased to report on its exploration and corporate activities for the quarter ended 30[th] September 2023. Exploration activities were focused on the Company’s flagship Lake Carey Gold Project in Western Australia and Matsa’s lithium projects in western Thailand. Matsa’s lithium projects are located within Thailand’s highly prospective western granite belt where Matsa continues to add new lithium discoveries to the project.

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Figure 1: Matsa’s Lake Carey gold project and lithium and base metals projects

Exploration during the quarter comprised the following:

Lake Carey

• RC drilling of 56 holes for 3,101m was completed at the Devon Pit (Figure 2) for infill and resource expansion. Results are awaited

• Analysis of the multi element data from Fortitude North demonstrates a stratigraphic setting, as well as a structural setting, that has influenced the style and magnitude of mineralisation intersected in recent drilling

• During the quarter, Matsa assisted AngloGold Ashanti Australia Limited (“AGAA”) to review and analyse all previous exploration works at the Lake Carey Gold Project, and conduct a detailed due diligence program with a view to undertake discussions as to the possibility of negotiating a potential transaction on Matsa’s ground to the mutual benefit of both companies. At the time of writing this report, discussions are ongoing with no reportable outcome.

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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Figure 2: Lake Carey Gold Project showing Matsa tenements

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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Thailand

• Discussions with The Department of Primary Industries and Mining (“DPIM”) for the granting of Special Prospecting Licences (“SPL”) which would allow drilling at Matsa’s lithium prospects have slowed whilst waiting for the appointment of a new Director General of DPIM to be announced in early November, as a result of the retirement of the current Director General

• New lepidolite (Chokdee Panther – Photo 1) bearing pegmatite discoveries have been made north of Matsa’s Pink Panther project in western Thailand (Figure 3)

• 20 rock samples collected for assay with LIBs readings returning a peak 3.28% Li (7.05% Li2O)

• A number of new applications for Exploration Prospecting Licences have been made as a result

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Photo 1: Outcropping lithium pegmatite Chokdee Panther at Kanchanaburi

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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Figure 3: Matsa’s EPLA/SPLA coverage with new lithium discoveries in western Thailand

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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EXPLORATION AND DEVELOPMENT

LAKE CAREY

Devon Pit Drilling

Matsa was advised by the MMPSA manager that a resource extension and infill program of 56 reverse circulation (RC) drill holes for 3,101m was completed at the Devon Pit Gold Mine. Matsa awaits the results of this drilling program.

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Photo 2: Orlando RC drilling rig in operation

The drilling was aimed at extending and infilling the existing 69koz Au resource established at the Devon Pit Gold Mine. Once Matsa obtains the assay results it is expected an updated model will be produced that will lead to new optimisation and mine design work with a potentially new mining plan. This new work will likely start in 2024, with planning for mining of the Devon Pit Gold Mine to be established once an ore treatment option has been established and funding confirmed which is expect to be sometime in 2024.

THAILAND

Matsa has discovered new outcropping lithium mineralisation (Chokdee Panther) at Kanchanaburi, north of Matsa’s Pink Panther discovery (Figure 5).

22 samples were collected at Chokdee Panther and analysed in the field using handheld LIBS analyser (laser induced breakdown spectroscopy). The results for lithium using the LIBS analyser are highly encouraging and support visual interpretation of lepidolite mineralisation associated with the pegmatite field. The results of the LIBS analysis are shown in Table 1.

The preliminary LIBS analysis of this new discovery is in line with results previously obtained at Rose Panther and Pink Panther where metallurgical testwork was able to produce commercial lithium oxide concentrates of 5.91% and 4.04% respectively.

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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Photo 3: Matsa director, Pascal Blampain with the Matsa Thai geological staff undertaking field assessment of rock sample using SCIAPPS LIBS (laser induced breakdown spectroscopy)

SampleID	Sample_Type	Orig_Grid_ID	Orig_North	Orig_East	Orig_RL	Sample_Description	Li%(LIBs)	Li2O%
KANRK055	ROCK	WGS84_47	1543787	504268	291	*LP OUTCROP	2.33	5.01
KANRK056	ROCK	WGS84_47	1543801	504277	289	*LP OUTCROP	1.3	2.80
KANRK057	ROCK	WGS84_47	1543807	504286	288	*LP OUTCROP	1.92	4.13
KANRK058	ROCK	WGS84_47	1545445	502922	307	QTZ FELD+GRN PEG OUTCROP	1.19	2.56
KANRK059	ROCK	WGS84_47	1543982	504722	216	*LP OUTCROP	2.01	4.32
KANRK060	ROCK	WGS84_47	1543967	504722	220	*LP OUTCROP	2.83	6.08
KANRK061	ROCK	WGS84_47	1544289	504763	241	PEG APLITE OUTCROP	1.31	2.82
KANRK062	ROCK	WGS84_47	1544838	504036	207	PEG MICAQTZ FLOAT	3.28	7.05
KANRK063	ROCK	WGS84_47	1544695	504207	227	*150SE,LP VN OUTCROP	1.04	2.24
KANRK064	ROCK	WGS84_47	1544832	504264	208	*LP OUTCROP	2.54	5.46
KANRK065	ROCK	WGS84_47	1548854	504491	198	FLD PEG POLYLITHIONITE OUTCROP	0.52	1.12
KANRK070	ROCK	WGS84_47	1543675	503933	326	PEG IN GRN OUTCROP	1.01	2.17
KANRK071	ROCK	WGS84_47	1544161	503423	390	PEG OUTCROP	1.19	2.56
KANRK075	FLOAT ROCK	WGS84_47	1550242	504704	272	*LP FLOAT	2.99	6.43
KANRK068	FLOAT ROCK	WGS84_47	1548438	504912	184	ROSEQTZ??,PEG-GRN OUTCROP	1.38	2.97
KANRK069	ROCK	WGS84_47	1550310	504721	293	*LPVN OUTCROP	2.41	5.18
KANRK081	ROCK	WGS84_47	1550330	504713	301	*LPVN OUTCROP	1.64	3.53
KANRK074	FLOAT ROCK	WGS84_47	1544375	504503	260	*LP FLOAT	2.3	4.95
KANRK066	ROCK	WGS84_47	1544461	504443	271	PEG OUTCROP	1.6	3.44
KANRK067	ROCK	WGS84_47	1544202	504185	230	PEG OUTCROP	1.09	2.34

Table 1: Chokdee rock sample LIBS analyser results for lithium content

Further work is planned to map the area in detail and establish the level of continuity between the various outcrop, subcrop and samples collected. Matsa is confident that further work will lead to more new lithium discoveries in this highly fertile and underexplored region.

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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Figure 4: New Chokdee Panther lithium discovery in western Thailand

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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EXPLORATION WORK FOR THE COMING QUARTER

Lake Carey

• Review and assess the results of the RC drilling completed at Devon Pit

• Preparation and review of data for the optimisation and Definitive Feasibility Studies for the Devon Pit Gold Mine incorporating new assay results from recent drilling

• Ongoing permitting for the Devon Pit mining project

• Drill designs, POW submission and drill preparation at Fortitude North

• Completion of review of potential mineable inventory at Red October

Thailand

• Progress applications for grant of Special Prospecting Leases (SPL) and Exploration Prospecting Licences (EPL) that will enable Matsa to conduct drilling operations at Phang Nga and Kanchanaburi

• Follow up activities associated with results of the ground geophysical surveys including collecting additional magnetic susceptibility data from regional rock outcrops, field inspection of potential outcrop associated with modelled geophysical responses and site planning for drilling operations

• Preparation of drilling programs to define lateral extent of mapped lithium pegmatites at Pink Panther, Chokdee Panther and Rose Panther once SPL/EPL has been granted

• Consider collection of additional bulk metallurgical testwork samples to establish commercial application of lepidolite processing and recovery specifications to supplement the work already completed at Pink, Spotted and Rose Panther projects

• Continuation of scouting for new lithium prospective areas and interpretation of historical and exploration data throughout Thailand

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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CORPORATE

During the quarter Matsa conducted a $2M capital raising before costs. which was oversubscribed. The placement was comprised of an immediate $1.91M to institutional and sophisticated investors and $90,000 from Matsa’s directors which is subject to shareholder approval at the Company’s upcoming AGM.

The Placement was well supported by major shareholder, Deutsche Balaton, and several new high quality institutional and sophisticated investors. The funds raised will be used for:

• Holding and transaction costs associated with the Lake Carey Gold Project during discussions with AGAA

• Finalisation of the grant process of several lithium prospective SPLs including five new lithium discoveries at Rose Panther, Spotted Panther, Poly Panther, Pink Panther and Black Panther

• Maiden drilling program of the highly prospective SPL’s to assess the lithium bearing pegmatites identified, mapped and sampled

• General working capital requirements

The $2M has been raised (before costs) via the issue of 66,666,667 fully paid ordinary shares at $0.03 per share. In addition to the shares being issued under the placement, each participant will receive 1 free attaching unlisted option for every 2 shares taken up in the placement which will have an exercise price of $0.07 each expiring two (2) years from the date of issue.

Devon Pit Joint Venture

The Devon JV is a 50/50 split Mine Management and Profit Sharing Joint Venture Agreement (”MMPSA”) between Matsa and Linden Gold Alliance Limited (“Linden”) with Linden being appointed the MMPSA manager. Under the terms of the MMPSA, Matsa is free carried on a non-recourse basis for all costs associated with permitting, financing, development and mining of the Devon Pit with Linden required to meet certain milestones.

Joint Venture Progress

During the quarter Matsa issued a notice of Default Events (“Notice”) to Linden. Matsa previously announced on 8 May 2023, that Linden did not meet Milestone 1 by 31 March 2023. Despite numerous discussions between the parties, including an extension to meet Milestone 1 to 30 June 2023, Matsa considers that Linden has still not met Milestone 1. In addition, Linden has failed to implement approved budgets, drilling programs and other works and failed to provide a 2024 financial year proposed program and budget satisfactory to Matsa as obligated as the Manager of the MMPSA.

Subsequently, Matsa has issued the Notice of Dispute (“Dispute Notice”) to Linden under the MMPSA as the defaults under the Notice had not been rectified. Under the MMPSA, if Linden fails to remedy a Default Event within 14 days, Matsa has a right to terminate the MMPSA after a dispute resolution process has been undertaken. Matsa has met with Linden on several occasions to resolve these issues as required under the dispute resolution process without success thus far.

In accordance with the MMPSA and Milestone 2, Linden issued a purported Definitive Feasibility Study (“Study”) to Matsa to which Matsa requested a series of responses from Linden while also appointing an independent firm to review the Study. On 6 September 2023, Matsa became aware that Linden had issued a media release which disclosed the outcomes of the purported Study for the Devon Gold Pit Mine which Matsa had not yet been provided the opportunity to review and confirm the contents, assumptions and results of the Study despite notifying Linden that some errors had been immediately

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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observed. As a result, Matsa was required to issue a Take No Action ASX announcement as it had not approved the purported Study and had advised Linden of this fact. Subsequent to the Take No action announcement, Matsa then formally raised a number of concerns and questions with Linden as to the contents of the purported Study.

Linden did not and still has not provided adequate responses to the concerns and issues raised in the purported Study and subsequently on 20 September 2023, Matsa issued Linden a Notice stating that Linden had failed to meet Milestone 2. Despite ongoing discussions Linden have yet to provide satisfactory responses to Matsa’s queries in connection to the purported Study.

Linden was also required to meet the proof of funding Milestone 3 by 30 September 2023, which Matsa also advised Linden that it did not meet. Matsa has the right under the MMPSA to terminate the MMPSA should Linden not meet Milestone 3. Subsequent to the end of the quarter on 6 October 2023, Matsa advised the market that due to the various disputes between the parties to the MMPSA regarding the Devon Pit Gold Mine, it and Linden had entered into confidential without prejudice discussions to seek to reach a commercial resolution to the disputes and failures to meet milestones. At the date of this report an outcome has not been reached and Matsa has reserved all its legal rights under the MMPSA.

Financial Commentary

An overview of the Company’s financial activities for the quarter ending 30 September 2023 (Appendix 5B) notes that:

• There was a negative operating cashflow for the quarter of $486,000 after taking in to account care and maintenance costs at Red October, project review and evaluation expenditure and corporate and other overhead expenditure. Matsa received $550,000 (incl GST) from AngloGold during the quarter.

• Exploration expenditure for the quarter on the Company’s projects was $458,000. This covers expenditure in both Western Australia and Thailand.

• Project review and evaluation expenditure of $216,000 for the quarter includes predominantly exploration expenditure on the Thailand lithium SPLA’s as they are yet to be granted, along with project review expenditure in Australia.

• The Company was advanced $250,000 under a Deed of Additional Advance which is shown under Proceeds from borrowings which was repaid subsequent to the end of the quarter.

• The total amount paid to directors of the entity and their associates in the period (Item 6.1 of the Appendix 5B) was $245,000 and includes salary, director’s fees, consulting fees and superannuation.

• Cash on hand was approximately A$1,922,000 as at 30 September 2023.

Conferences and Marketing

During the quarter, the Company attended the Diggers & Dealers conference in Kalgoorlie. The Company conducted no formal presentations during the quarter. All presentations are available on the Company’s website.

2023 SEPTEMBER QUARTER - ASX ANNOUNCEMENTS

This Quarterly Activities Report contains information extracted from ASX market announcements reported in accordance with the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (“2012 JORC Code”). Further details (including 2012

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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JORC Code reporting tables where applicable) of exploration results referred to in this Quarterly Activities Report can be found in the following announcements lodged on the ASX:

Date	Announcement
25 July2023	Update re Devon Joint Venture
31 July2023	30 June 2023QuarterlyReport
31 July2023	Matsa and AngloGold Ashanti Enter Discussions re Lake Carey
17 August 2023	Devon Joint Venture Update
28 August 2023	TradingHalt
30 August 2023	$2M Placement Completed
30 August 2023	Proposed Issue of Securities - MAT
30 August 2023	Proposed Issue of Securities - MAT
6 September 2023	Pause in Trading
6 September 2023	TradingHalt
7 September 2023	Application forquotation of securities - MAT
7 September 2023	Notification regardingunquoted securities - MAT
8 September 2023	Devon Pit JV Linden Gold Media Release - TAKE NO ACTION
8 September 2023	SecondaryTradingNotice
8 September 2023	Change in substantial holding
19 September 2023	2023 AGM Notification
20 September 2023	Devon Project Joint Venture Update
29 September 2023	Appendix 4G and Corporate Governance Statement
29 September 2023	Full Year StatutoryAccounts

These announcements are available for viewing on the Company’s website under the Investors centre tab under ASX Announcements. The Company confirms that it is not aware of any new information or data that materially affects the information included in any original ASX announcement.

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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MINERAL RESOURCES

The global Mineral Resource Estimate for Lake Carey stands at 936,000oz @ 2.5g/t Au as outlined in Table 1 below.

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Table 1 : Lake Carey Resource*

* There have been no changes in the above table since the last release.

*Special note : The Resources of the Devon Pit project, representing 69koz, are subject to the profit share Joint Venture Agreement announced on 23 December 2022[1] .

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 Statement

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 the Australian Institute of Geoscientists. Mr Blampain serves on the Board and is a full-time employee, of Matsa Resources Limited. Mr Blampain has sufficient experience which is relevant to the style of mineralisation and the type of ore deposit under consideration and the activities undertaken 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. Geophysical targets quoted were determined from a recently completed ground magnetic and radiometric geophysical survey with Targets selected by Austhai Geophysical Consultants (Austhai) who processed and reported on the magnetic and radiometric data collected by Matsa. Industry standard processing techniques and QAQC processes were used by Austhai in the validation and processing of the data.

1 ASX Announcement 23rd December 2022-Settlement of Devon Pit JVA With Linden - Devon 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 | reception@matsa.com.au

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Appendix 1 - Matsa Resources Limited

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. _	Rock chipping – 2.5 – 3.5 kg samples taken from outcrop Float sampling – 2.5 – 3.5 kg lag sample collected from float. Float largely reflects subcrop material loosened during tilling of earth by farming operations.
	• Measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	Rock chip samples were selected based on visual inspection for representivity and assessment of indicative target mineralogy, Float sampled on broad grid pattern where available.
	• 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 not yet sent for laboratory analysis. Samples only assessed using handheld SCIAPPS LIBS (laser induced breakdown spectroscopy). LIBS unit routinely calibrated using industry CRMS.
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.). _	N/A, no drilling.
Drill sample recovery	• Method of recording and assessing core and chip sample recoveries and results assessed.	N/A, no drilling.
	• Measures taken to maximise sample recovery and ensure representative nature of the samples.	N/A, no drilling.
	• 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.	N/A, no drilling.

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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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. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography. • The total length andpercentage of the relevant intersections logged.	N/A, no drilling. Samples are described in the table. All samples are outcrop (or float). Data recorded as sample point and photographic records taken, the size and type of outcrop (or lag) and any, if any, adjacent rock units and their orientation (if any).
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 • Whether sample sizes are appropriate to the grain size of the material being sampled.	Sub sampling is completed at the lab. Samples are spilt down to 250gram. Standard sample preparation including, dry, crush, pulverise and scoop (50g) for pulp assays. No QA QC samples inserted at the field, assay integrity is based on laboratory QAQC protocols including lab standards, blanks and duplicates. Sample weights of ~3kg documented are adequate for lithium.
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.	LIBS analyser is adequate and appropriate for first pass assessment of lithium content of samples during first pass geochem sampling
	• 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) andprecision have been established.	Rock chip samples were tested using a SCIAPPS (Z3) laser induced breakdown spectrometer (LIBS) analyser to confirm the presence of lepidolite recorded in the field.
	• The verification of significant intersections by either independent or alternative company personnel.	N/A no drilling, these are chip samples. N/A no drilling.

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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Criteria	JORC Code explanation Commentary	JORC Code explanation Commentary
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.	Sample locations are recorded on GPS and then recorded in Logchief and digitally uploaded to the database (Datashed).
	• Discuss any adjustment to assay data.	No data adjustments have been made to the assaydataset.
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.	Sample locations were recorded with a handheld GPS with +/- 3m accuracy. The grid used was WGS84_47.
	• Specification of the grid system used. • Quality and adequacy of topographic control.	WGS84 UTM co-ordinate system Zone 47N.
Data spacing and distribution	• Data spacing for reporting of Exploration Results.	Rock chip – sample density is dependent on volume and extent of outcrop accessible for sampling.
	• 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.	There is insufficient data to determine any economic parameters or mineral resources.
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.	Rock chip sampling is not representative of mineralisation and is only conducted to detect the presence of target element and/or minerals.
	• 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.	N/A no drilling.
Sample security	• The measures taken to ensure sample security.	Matsa Thailand staff assessed the sample in real time during the field survey
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	No audits have been completed.

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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Section 2 Reporting of Exploration Results

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

Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary	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 following Special Prospecting License Applications: EPLA4/2566 which is held by ThaiWest Metals Co., Ltd under Matsa Resources. Part sampling of EPLA subject to individual sub district exploration agreements in place.
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	Past exploration in the region has focused on alluvial tin and feldspar quarry mining
Geology	• Deposit type, geological setting and style of mineralisation.	The granites of the Western Tin Belt are Cretaceous in age and occur as elongated bodies aligned in a north-south direction. The targets for exploration are the associated pegmatites, which contain minor amounts of cassiterite and associated Li - Ta - Nb minerals. Matsa has discovered a number of LCT type pegmatites in the Kanchanaburi region.
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.	N/A, no drilling.
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.	Rock chip samples are single point data and are only used to provide an indication of the potential for the field to host lithium.

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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Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary
	• 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 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’). _	As above
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.	Maps have been provided in body of report.
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.	A description of results is outlined in Table 1 of the report.
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.	Rock chip samples are considered early stage confirmation that rocks bearing the target element/ore are present.
Further work	• The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	Further mapping, sampling and potential drilling is planned to progress the project and has been discussed in the body of the report.

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

MATSA RESOURCES LIMITED

SCHEDULE OF TENEMENTS HELD AT 30 SEPTEMBER 2023

Tenement	Project	Interest at Beginning ofQuarter	Interest at End of Quarter	Change During Quarter
E 52/3339	Glenburg	100%	100%
E 28/2600	Lake Rebecca3	20%	20%
E 28/2635		20%	20%
E38/2945	Lake Carey	100%	100%
E 39/1837		100%	100%
E 39/1863		100%	100%
E 39/1864		100%	100%
E 39/1957		100%	100%
E 39/1958		100%	100%
E 39/1980		100%	100%
E 39/1981		100%	100%
P 39/5652		100%	100%
E 39/1796		90%2	90%2
E 39/1752		100%	100%
E 39/1770		100%	100%
E 39/1803		100%	100%
E 39/1812		100%	100%
E 39/1819		100%	100%
E 39/1834		100%	100%
E 39/1840		100%	100%
E 39/1889		90%1	90%1
E 39/2015		100%	100%
E39/2128		100%	100%
L 39/247		100%	100%
L 39/260		100%	100%
L 39/267		100%	100%
L 39/268		100%	100%
L 39/291		100%	100%
L39/295		100%	100%
M 39/1		100%	100%
M 39/1065		100%	100%
M 39/1089		100%	100%
M 39/286		100%	100%
M 39/709		100%	100%
M 39/710		100%	100%
P 39/5669		100%	100%
P 39/5670		100%	100%
P 39/5694		100%	100%

MATSA RESOURCES LIMITED

SCHEDULE OF TENEMENTS HELD AT 30 SEPTEMBER 2023

Tenement	Project	Interest at Beginning ofQuarter	Interest at End of Quarter	Change During Quarter
P 39/5841		100%	100%
E39/2311		0%	100%	Granted during the quarter
E 47/3518	Paraburdoo	100%	100%
E 39/1760	Devon	100%	100%
E 39/1232		100%	100%
L39/222		100%	100%
L 39/235		100%	100%
L 39/237		100%	100%
M 39/386		100%	100%
M 39/387		100%	100%
M 39/500		100%4	100%4
M 39/629		100%	100%
M 39/1077		100%4	100%4
M 39/1078		100%	100%
P 39/6116		100%	100%
P 39/6117		100%	100%
L 39/217	Red October	100%	100%
L 39/273		100%	100%
M 39/411		100%	100%
M 39/412		100%	100%
M 39/413		100%	100%
M 39/599		100%	100%
M 39/600		100%	100%
M 39/609		100%	100%
M 39/610		100%	100%
M 39/611		100%	100%
M 39/721		100%	100%
E52/4237	Four Corners	100%	100%

All tenements are located in Western Australia.

• 1 = Joint venture with Raven Resources Pty Ltd

• 2 = Joint venture with Bruce Legendre 3 = Joint venture with Bulletin Resources Limited

• 4 = Subject to a profit sharing joint venture with Linden Gold Alliance Limited

Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity

Name of entity	Name of entity	Name of entity
MATSA RESOURCES LIMITED
ABN 48 106 732 487	Quarter ended (“current quarter”)
	30 September 2023
Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs (f) care and maintenance costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (provide details if material) - Linden transaction costs - AngloGold exclusivity fee - Other income - Project review and evaluation 1.9 Net cash from / (used in) operating activities	- - - - (205) (109) (365) - 1 (181) - - (23) 550 62 (216)	- - - - (205) (109) (365) - 1 (181) - - (23) 550 62 (216)
	(486)	(486)
2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) tenements (c) property, plant and equipment	- - -	- - -

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
(d) exploration & evaluation (e) investments (f) other non-current assets 2.2 Proceeds from the disposal of: (a) entities (b) tenements (c) property, plant and equipment (d) investments (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	(456) - - - - 2 - - - - -	(456) - - - - 2 - - - - -
	(454)	(454)
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	1,910 - - (124) 313 (31) - - -	1,910 - - (124) 313 (31) - - -
	2,068	2,068
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above)	794 (486) (454)	789 (486) (454)

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	2,068 -	2,068 -
	1,922	1,922
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	1,872 50 - -	1,872 50 - -
	1,922	1,922
6. Payments to related parties of the entity and their associates		Current quarter $A'000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 245 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments. Payments to directors and related parties are included in Item 1		245
		-

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

7. 7.1 7.2 7.3 7.4 7.5 7.6	Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 Loan facilities 4,750 4,750 Credit standby arrangements - - Other (please specify) - - Total financing facilities 4,750 4,750 Unused financing facilities available at quarter end - Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		4,750	4,750
		-	-
		-	-
		4,750	4,750
	On 2 December 2022 Matsa announced that it has entered in to a new secured $4M loan facility split equally between two separate parties. The loan attracts a 12% per annum interest rate and is repayable by 30 November 2025. This new loan facility replaces the previous loan facility held with the same parties that expired 30 November 2022. On 28 June 2023 Matsa signed a Deed of Additional Advance with an unrelated party whereby an additional advance of $750,000 was provided of which $750,000 was drawn at 30 September 2023. The additional advance attracts an interest rate of 12% per annum with the repayment to be made by 31 December 2023.

8.	Estimated cash available for future operating activities	$A’000
8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8	Net cash from / (used in) operating activities (item 1.9) (486) (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) (456) Total relevant outgoings (item 8.1 + item 8.2) (942) Cash and cash equivalents at quarter end (item 4.6) 1,922 Unused finance facilities available at quarter end (item 7.5) - Total available funding (item 8.4 + item 8.5) 1,922 Estimated quarters of funding available (item 8.6 divided by item 8.3) 2.04 Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. If item 8.7 is less than 2 quarters, please provide answers to the following questions: 8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?	(486) (456) (942) 1,922 -
		1,922
	Answer: N/A
	8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
	Answer: N/A

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: N/A

Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Date: 30 October 2023

Authorised by: .......... By the Board...............................................................

(Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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