MATSA RESOURCES LIMITED — Investor Presentation 2018

Feb 20, 2018

RIU Presentation Wednesday February 21[st] 2018

Paul Poli Executive Chairman

Important Notice

Disclaimer and Forward Looking Statements

This presentation has been prepared by Matsa Resources Limited (“Matsa” or the “Company”). It should not be considered as an offer or invitation or inducement to subscribe for or the purchase of any securities in the Company. This presentation may contain certain “forward-looking statements” which may not have been based solely on historical facts, but rather may be based on Matsa’s current expectations about future events and results. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. Actual results and developments may differ materially from those expressed or implied.

The material in this presentation is intended to be a summary of current and proposed activities, selected geological data, as well as Mineral Resource estimates and Ore Reserves. This data is based on information available to at the time.

It does not include all available information and should not be used in isolation as a basis to invest in the Company. This overview of Matsa does not purport to be all-inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision.

This presentation includes information and graphics relating to a conceptual mining study, completed Mineral Resource estimate and a scoping study and includes “forward looking statements” which include, without limitation, estimates of gold production based on mineral resources that are currently being evaluated.

While the Company has a reasonable basis on which to express these estimates, any forward looking statement is subject to risks, uncertainties, assumptions and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements.

Risks include, without limitation, gold metal prices, foreign exchange rate movements, project funding capacity and estimates of future capital and operating costs.

The Company does not undertake to release publicly any revisions to forward looking statements included in this report to reflect events or results after the date of this presentation, except as may be required under applicable securities regulations.

Any potential investor should refer to publically available reports on the ASX website and seek independent advice before considering investing in the Company.

Competent Persons Statements

Exploration Results Fortitude

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.

Mineral Resources Fortitude

The information in this report that relates to Mineral Resources has been compiled by Matthew Cobb, who is a full-time employee of CSA Global Pty Ltd, and Richard Breyley who is a full time employee of Matsa Resource Ltd. Dr Cobb is a Member of both the Australian Institute of Geoscientists and the Australian Institute of Mining and Metallurgy. Mr Breyley is a member of the Australian Institute of Mining and Metallurgy. Both Dr Cobb and Mr Breyley have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activities which they are undertaking to qualify as a Competent Persons as defined in the JORC Code (2012). Dr Cobb and Mr Breyley consent to the disclosure of this information in this report in the form and context in which it appears.

Mineral Resources Red Dog

The information relating to Mineral Resources at Red Dog has been compiled by Susan Havlin of Optiro Ltd. Susan Havlin is a Member of The Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she 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”. Susan Havlin consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

Mineral Resources Red October

The information in the report to which this statement is attached that relates to Exploration Results and Mineral Resources related to Gold is based upon information compiled by Mr Daniel Howe, a Competent Person who is a member of the Australian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Daniel Howe is a full-time employee of Saracen Resources. Daniel Howe has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and the activity being undertaken to qualify as a Competent Person as defined in the 2102 Edition of the “Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Daniel Howe consents to the inclusion in the report of matters based on his information in the form and context in which it appears.

Ore Reserves Fortitude

The information in this report that relates to Ore Reserves has been compiled by Jon Pluckhahn who is a full time employee of Matsa Resource Ltd. Mr Pluckhahn is a Member of the Australian Institute of Mining and Metallurgy. Mr Pluckhahn has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activities which they are undertaking to qualify as a Competent Persons as defined in the JORC Code (2012). Mr Pluckhahn consents to the disclosure of this information in this report in the form and context in which it appears.

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Corporate Overview

Corporate Structure

Stock Code ASX: MAT

Shares on Issue 172.38 M

Unlisted Options 13.7 M @ $0.20 - $0.30 Market Capitalisation A$31.03 M @ $0.18 Cash and Liquids ~A$6.3M (31[st] Dec 2017)

Significant Shareholders (as at 1 Feb 2018)	Shareholding %
JP Morgan Ltd	11.3
HF Resources Pty Ltd	7.5
BNP Paribas Nominees	7.5
Paul Poli	6.9
Top 20 Shareholders	~51.9

Directors

Paul Poli Executive Chairman, Managing Director

Frank Sibbel

Non-Executive Director

Non-Executive Director & Company Secretary

Andrew Chapman

MAT: Twelve month share price/volume

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Source: ASX
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Corporate Overview

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Corporate Overview

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Red October Project
Acquired Project
Occupied Camp and
Infrastructure
Commenced Mining
Studies
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Corporate
Build Cash and Liquid
Assets
Formed Critical
Relationships
Transition to Gold Producer
Created a Bright Future
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Fortitude Lake Carey Acquired Project (Sept. 2016) Drilled / Updated Resource Fast Tracked Mining Approvals Commenced Trial Mining Discovered 4 Priority Gold Targets

Red Dog Project Acquired Project (Nov. 2017) Drilled / Maiden Resource Fast Tracked Approvals Mining Studies

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Corporate Overview

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• Complete Trial Mining at Fortitude

• Transition Fortitude to Full Scale Open Pit mine

• Commence Mining at Red Dog

• Commence Mining at Red October

• EXPLORE, EXPLORE and more EXPLORE

• Strengthen Balance Sheet

• Enhance Shareholder Value

 And EXPLORE Some MORE

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Pathway to success

Well Funded

~$6.35M cash and liquid assets (31 Dec 2017)

Continue to Mine

Develop:

Fortitude Stage 2 Red Dog

Red October

Build cashflow through mining

Grow resources by exploration and acquisition

Quality Exploration Projects

Enviable location with world-class nearby operating mines with available infrastructure

Experienced Management

Experienced team with proven track record, determined to succeed

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Diverse Project Portfolio

Western Australian Projects

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Fortitude Gold Resource 354,600 oz Au* Red October Gold Resource 99,000 oz Au Red Dog Gold Resource 26,300 oz Au Symons Hill Nickel Exploration Killaloe Gold Exploration

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Thailand Projects

Diamond Drilling Drilling

Paisali Copper Siam Copper KT Gold

Applications

• Prior to Trial Mining

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Matsa’s Gold Resources

	Indicated	Indicated	Inferred	Inferred	Total Resource	Total Resource	Total Resource
	Tonnes	Au	Tonnes	Au	Tonnes	Au	Au
	(t)	(g/t)	(t)	(g/t)	(t)	(g/t)	(Oz)
Fortitude	3,084	1.9	2,505	2.1	5,589	2	354,600*
Red October	340	4.5	106	14.7	446	6.9	99,000
Red Dog	333	2.3	35	1.4	368	2.2	26,300
Total	3,757	2.2	2,646	2.7	6,403	2.4	479,900

Fortitude: MAT ASX release 22 Feb 2017; Red October: SAR ASX release 2 Jul 2017; Red Dog: MAT ASX release 18 Jan 2018 *Prior to Trial Mining

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Lake Carey Gold Project

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• Near world class gold mines

Sunrise Dam >10Moz, Wallaby >7Moz Granny Smith >2Moz

• Trial Mining ongoing at

• Fortitude with full-scale mine planned for mid 2018

• Commencement of mining at Red Dog and Red October planned

• Looking for new mines with exploration ongoing in over 600km[2 ] area

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Fortitude Trial Mine

• Approvals granted in only 5 months

• Ore Purchase Agreement executed with AngloGold Ashanti Limited “SDGM” (world class producer)

• Mining started 25[th] July 2017, completion April 2018

• 1[st] ore to SDGM in Sept 2017, 66,000 tonnes gold ore delivered to date, ~21,000 tonnes on ROM being delivered now

• Average price of gold achieved $1,663 /oz

• Positive cashflow now achieved

Fortitude Ore Reserve Trial Mining Operation 2017(1 g/t Au cut off)	Fortitude Ore Reserve Trial Mining Operation 2017(1 g/t Au cut off)	Fortitude Ore Reserve Trial Mining Operation 2017(1 g/t Au cut off)	Fortitude Ore Reserve Trial Mining Operation 2017(1 g/t Au cut off)	Fortitude Ore Reserve Trial Mining Operation 2017(1 g/t Au cut off)	Fortitude Ore Reserve Trial Mining Operation 2017(1 g/t Au cut off)	Fortitude Ore Reserve Trial Mining Operation 2017(1 g/t Au cut off)	Fortitude Ore Reserve Trial Mining Operation 2017(1 g/t Au cut off)
	Proven		Probable		Total
Type	Tonnes(t)	Au (g/t)	Tonnes(t)	Au (g/t)	Tonnes	Au (g/t)	Au(Oz)
Oxide	0	0	185,000	2.2	185,000	2.2	12,900
Total	0	0	185,000	2.2	185,000	2.2	12,900

Refer to ASX Announcement 22 Feb 2017 for further detail

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Fortitude Transition to Stage 2 Open Pit

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Fortitude
Long Section
400mRL
Trial Pit Stage 2 Pit
300mRL
200mRL
Resource outline
100m
6757000mN 6757250mN
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“A Picture says a thousand words”

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Fortitude Transition to Sta e 2 O en Pit g p

Fortitude Stage 2

• Trial Mine completion expected April 2018

• Full Scale Mining Permits already in place

• Goal to produce 40,000 oz gold pa over 2 year period

• Feasibility and optimisations of Stage 2 expected 1[st] half 2018

• Board Approval to commence mining subject to favourable outcome, 2[nd] half 2018

• Exploring for underground potential

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Fortitude Deposit 2017 Mineral Resource Estimate (1 g/t Au cutoff)	Fortitude Deposit 2017 Mineral Resource Estimate (1 g/t Au cutoff)	Fortitude Deposit 2017 Mineral Resource Estimate (1 g/t Au cutoff)	Fortitude Deposit 2017 Mineral Resource Estimate (1 g/t Au cutoff)	Fortitude Deposit 2017 Mineral Resource Estimate (1 g/t Au cutoff)	Fortitude Deposit 2017 Mineral Resource Estimate (1 g/t Au cutoff)	Fortitude Deposit 2017 Mineral Resource Estimate (1 g/t Au cutoff)	Fortitude Deposit 2017 Mineral Resource Estimate (1 g/t Au cutoff)
Type	Indicated		Inferred		Total Resource
	Tonnes Au kt g/t		Tonnes Au kt g/t		Tonnes Au Au kt g/t Oz
Transported Oxide Transition Saprock Fresh	3 357 378 227 2,119	1.8 2.2 1.8 1.9 1.8	0 53 125 1 2326	0.0 2.1 2.0 2.1 2.1	3 410 503 228 4,445	1.8 2.2 1.8 1.9 2.0	200 28,300 29,800 14,100 282,200
Total	3,084 1.9		2,505 2.1		5,589 2.0 354,600

ASX MAT 22[nd] February 2017

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Red Dog Gold Project

• Located 25km SW of Fortitude gold mine and 28km south of Red October

• Gold resource of 368,000t at 2.2g/t Au for 26,300oz gold

• Close to existing haul road and other infrastructure

• Ore purchase agreement negotiations commenced

• Environmental and Native Title studies completed

• Metallurgical and Resource drilling completed, results coming to hand

• Mining targeted to commence in 2nd half of 2018

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Red Dog Gold Project

Red Dog

• 100% Matsa owned granted Mining Lease

• Mining is expected to be completed within 15 weeks from commencement

• Very shallow (from 2-10m depth) flat lying mineralisation 1 to 14m thick

• Visible gold associated with best intercept

6m at 155 g/t Au from 6m incl.

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1m at 921 g/t Au from 7m

Material	Indicated	Indicated	Indicated	Inferred	Inferred	Inferred	Total	Total	Total
	Tonnes t	Grade g/t	Gold ounces	Tonnes t	Grade g/t	Gold ounces	Tonnes t	Grade g/t	Gold ounces
Oxide	2,000	1.3	100	2,000	0.9	100	5,000	1.1	200
Transitional/Fresh	330,000	2.3	24,700	33,000	1.4	1,500	363,000	2.2	26,200
Total	333,000	2.3	24,800	35,000	1.4	1,500	368,000	2.2	26,300

Red Dog Resource ASX MAT 18[th] January 2018

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Red October Project

• 64km[2] of granted mining tenements contiguous to Matsa’s Lake Carey project, 15km south of world class Sunrise Dam gold mine

• Historical production of 342,000oz gold at an average of 6.1g/t

• Current mine in Care and Maintenance since June, with all equipment in - situ

• Modern 68 person camp with full accommodation and administration facilities

• Red October is a high-grade narrow veined gold deposit with significant exploration potential

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Red October Gold Project

• Excellent acquisition of 100% interest for cash and scrip valued at $2M

• 99,000 oz Au (JORC) increases Matsa’s resource to 479,900 oz gold

• Strategically increases Lake Carey footprint

• Goal to produce up to 20,000 oz of gold pa

• Potential for immediate restart where Saracen left off

• Red October camp and facilities also significantly enhance Fortitude and Red Dog

Red October Intercepts > 1 oz gold

	Indicated	Indicated	Indicated	Inferred	Inferred	Inferred	Total	Total	Total
June 30 2017	tonnes	g/t	Oz Au	tonnes	g/t	Oz Au	tonnes	g/t	Oz Au
Red October OP	251,000	17	14,000				251,000	1.7	14,000
Red October UG	89,000	12.1	35,000	106,000	14.6	50,000	195,000	13.6	85,000
Total	340,000	4.5	49,000	106,000	14.7	50,000	446,000	6.9	99,000

(ref ASX: SAR 02/08/2017)

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Lake Carey- Exploration Upside

• Large tenement package (>600km[2] )

• Considerable scope for regional exploration

• success

• 25,000m of aircore drilling programme defined 4 high priority gold targets (BE 1 – BE 4)

• Infill aircore and diamond drilling at BE 1 identify gold mineralised dacite porphyry

• Widespread anomalous gold values in altered dolerite at BE2 and BE3

• Several high priority targets to be explored

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Lake Carey- Exploration BE 1

• 700m long zone of gold mineralisation in dacite intrusion

• Significant gold assays include:

21m @ 1.84 g/t Au from 87

Incl. 7m @ 5.17 g/t Au Incl. 1m @ 17.2 g/t Au

2m @ 25.3 g/t Au from 93m

Incl. 1m @ 39 g/t Au

• Mineralisation open to the north and east

• Further diamond drilling planned

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Lake Carey- A great place to be

• Existing Gold resources in prolific gold mining district

 Very large neighbouring gold mines providing infrastructure and

• opportunities

• Nearology breeds confidence, “the best place to look for gold is near existing gold”

• Aggressive exploration drilling achieving encouraging results

• Current mining to fund project exploration and resource enhancement

• Strong likelihood that current mine life will be extended

 Excellent potential for additional resources

• Geological story is unfolding with potential for stand-alone gold discoveries

Paul Poli I LIKE IT, I LIKE IT A LOT

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Thailand Projects

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Not without its problems, but not impossible either !

Paisali Project

• Paisali tenements extension to the Siam Copper project

• Located in province with strong local support for mining

Siam Copper Project

• Copper targets up to 25km[2] , visible copper mineralisation

KT Gold Project

• 20kms east of world class Chatree gold Mine (KCL)

• Affected by current policy on gold exploration

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FY2018 Value Drivers

 A clear and committed growth plan

• Current gold mine and production fully funded

• Aggressive exploration and development program

• Portfolio of projects across gold, copper and nickel

• Experienced and committed board and management

• Strong balance sheet – cash and liquid assets

• Supportive and tight shareholder base

• Committed to creating shareholder value through targeted exploration success and near term news flow

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Contact

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Paul Poli
Executive Chairman
Suite 11, 139 Newcastle Street
Perth, Western Australia 6000
+61 8 9230 3555
reception@matsa.com.au
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