MATSA RESOURCES LIMITED — Investor Presentation 2020

Nov 10, 2020

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Matsa Resources Limited
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ASX Announcement

11 November 2020

Investor Presentation Noosa Mining Conference

Matsa Resources Limited (ASX:MAT) advises that Executive Chairman Paul Poli will be presenting at the 2020 Noosa Mining and Exploration Investor Conference (11-13 November).

CORPORATE SUMMARY

Executive Chairman

Paul Poli

A copy of the presentation is attached.

Director

Frank Sibbel

Director & Company Secretary

Andrew Chapman

Shares on Issue

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

271.14 million Unlisted Options

25.6 million @ $0.17 - $0.35

Top 20 shareholders

Hold 51.68%

For further information please contact:

Paul Poli

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

Share Price on 10[th] November 2020

13 cents

Market Capitalisation

$35.25 million

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

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An Emerging Gold Producer with Substantial Exploration Potential

November 20 20 Presentation Paul Poli, Executive Chairman

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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 and Mineral Resource estimates. 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 forwardlooking 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 publicly available reports on the ASX website and seek independent advice before considering investing in the Company.

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Competent Persons Statements

Exploration Results

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 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. 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 October

The information in the report to which this statement is attached that relates to Exploration Results and Mineral Resources related to the Red October Resource Estimate 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 2012 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.

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CORPORATE OVERVIEW

CORPORATE SNAPSHOT

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TICKER ASX:MAT

SHARES ON ISSUE UNLISTED OPTIONS MARKET CAPITALISATION 271.14M 25.60 M A$36.60 M @ $0 .17 - $0 .35 @ $0 .135 (9 Nov. 20 20 )

SIGNIFICANT SHAREHOLDERS

MAT: TW ELVE MONTH SHAREPRICE

(as at 9 Nov 20 20 )

JP Morgan Ltd 16.77 % BNP Paribas Nominees 12.49 % Deutsche Balaton AG 8.0 0 % HF Resources Pty Ltd 4.78 % Paul Poli 4.41 % Top 20 Shareholders 56.0 9 %

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DIRECTORS

Executive Chairman, Managing Paul Poli Director Frank Sibbel Non-Executive Director Non-Executive Director & Andrew Chapman Company Secretary

Source: ASX

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W hy invest in Matsa?

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LAKE CAREY GOLD PROJECT

W ORLD CLASS GOLD MINES NEARBY

• Sunrise Dam >10 Moz

• W allaby >7Moz

• Granny Smith >2Moz

PATHW AY FOR 20 20 AND BEYOND

• Red October underground mining continuing on a longterm basis

• Fortitude Stage 2 mining, forecast positive cashflow of approximately A$21.9M* in 22 months at A$2,150 / oz gold. Current gold price would have a dramatic positive effect.

• Increasing gold resources through drilling Fortitude North, Devon and Red October

Ongoing extensive drilling program

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Producer

• Exp osure t o Prod uct ion Grow t h

• Red Oct ober underground

• Fort it ude open pit

• Devon open pit and

• underground

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Explorer

Exp osure t o Exp lorat ion Success

• Red Oct ober

• Fort it ude Nort h

• Devon and Surrounds

• Olympic

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• Hill East

• BE1 – BE4

• Naut ilus

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PROVEN CAPACITY TO MINE SUCCESSFULLY

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PROVEN DEVELOPMENT CAPABILITY

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• Red October underground mining becoming long-term and cashflow positive

• Fortitude trial mine, excellent knowledge base for larger Stage 2 mine

• Mining Studies on Devon commencing

ANGLOGOLD ASHANTI RELATIONSHIP

• Excellent working relationship underpins MOU at Lake Carey

• 5-year ore purchase agreement in place

• Sunrise Dam ore treatment plant is ideally located for Matsa’s Lake Carey project

BUILDING ON SUCCESS

• Becoming recognised as a regional player and able to take advantage of opportunities as they arise

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RED OCTOBER GOLD MINE

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• Underground resource 85,0 0 0 oz @ 13.6 g/ t Au

• 10 0 % Matsa owned and op erated

• Red Octob er is a hig h-g rad e structurally controlled narrow vein g old d ep osit with sig nificant exp loration p otential

• Historical p rod uction of 34 2,0 0 0 oz g old at an averag e g rad e of 6.1g / t

• Mine is fully accessib le with all ventilation, e m e rg e ncy access and d ewatering infrastructure in p lace and op erating efficiently to the full extents of the m ine

• Mining fle e t, surface and und erg round eq uip m ent 10 0 % owned

• Mod ern 68-p erson cam p with full accom m od ation, m essing , workshop and ad m in facilities

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RED OCTOBER GOLD MINE

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MINING OPERATIONS IMPROVING

• W aste mining started April 20 19

• Ore mining started June 20 19

• Ore delivery commenced July 20 19

• Mining rate of 1,0 0 0 oz of gold per month to increase as the mine ramps up

NEW DRILL PROGRAM IN PROGRESS

• Exciting results received, more to come

• Targeting new high-grade shoots

• Proving up new areas of mineralisation

• Proving up potential for long term underground mining

• Increasing gold resources and reserves

• +4,0 0 0 m diamond drilling campaign completed (being phase 1 of a continuous exploration program that will extend well into 20 21)

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RED OCTOBER GOLD MINE

Early Drill Results

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• Phase 1 underground drilling completed

• Multiple intersections of high-grade gold, further assays pending

• Lionfish Phase 1 infill drilling

• 0 .70 m @ 137.50 g/ t Au ROGC747

• 1.59m @ 5.0 4 g/ t Au ROGC749

• and 2.0 0 m @ 16.14 g/ t Au ROGC749

• 3.0 0 m @ 3.50 g/ t Au ROGC750

• 0 .28m @ 161.50 g/ t Au ROGC751

• Marlin 410 :

• 2.0 0 m @ 28.97g/ t Au ROGC762

• incl. 0 .50 m @ 10 5.50 g/ t Au

• 1.30 m @ 8.14g/ t Au ROGC757

• 1.70 m @ 51.68g/ t Au ROGC758

• Dory & Smurfette 320 :

• 0 .81m @ 22.0 0 g/ t Au ROGC735

• 7.0 0 m @ 5.24g/ t Au

• and 4.0 4m @ 4.62g/ t Au ROGC738

• MH Fault :

Drill Target Areas

• 3.80 m @ 30 .98g/ t Au ROGC741

• 1.60 m @ 5.94g/ t Au ROGC742 (previously unidentified lode)

• Results demonstrate strong potential for adding new ounces into the mine plan

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DEVELOPMENT OPPORTUNITY: FORTITUDE STAGE 2 GOLD MINE

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• Trial Mine result provides high confidence of gold resource and metallurgical recoveries

• Mine life has strong potential to grow from new optimisations

• Ore treatment options being evaluated

• All mining permits and approvals in place allowing for immediate start

• Potential for future underground mining to be assessed

• Excellent exposure to rising gold price

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Fortitude has all permits in place

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FORTITUDE STAGE 2 GOLD MINE STUDIES

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STAGE 2 MINE STUDY RESULTS*

• The current gold price (A$2,650 oz) would have a substantial positive effect on the project

• Expected 22-month mine life

• Production of 54,40 0 oz gold at 93% recovery, can increase

• Capital outlay of A$6.6M which includes pre-stripping

• Maximum cash exposure A$9.1M

• Operating cash cost of A$1,628oz gold

• Cash surplus of A$21.9M at Feasibility average gold price of A$2,150 / oz

• Further improvements expected

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Month surplus and cash flow
$7,000,000 $25,000,000
$6,000,000
$20,000,000
$5,000,000
$15,000,000
$4,000,000
$10,000,000
$3,000,000
$2,000,000 $5,000,000
$1,000,000
$0
$0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 -$5,000,000
-$1,000,000
-$10,000,000
-$2,000,000
-$3,000,000 -$15,000,000
MONTH
SURPLUS CASH FLOW
CASH FLOW
MONTH SURPLUS
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Significant upside potential exists

* Matsa ASX Announcement dated 21 August 2019. The information contained within that announcement has not materially changed

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We are an Explorer

LAKE CAREY - EXPLORATION UPSIDE

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563km[2 ] HIGHLY PROSPECTIVE TENEMENT PACKAGE

• In the Laverton tectonic zone near world class gold mines

• Considerable scope for regional exploration success, with 20 20 drilling demonstrating opportunities

• Areas covered by salt lakes with little or no exploration now more accessible due to better equipment

• Favourable structural locations along major faults have been targeted and are yielding outstanding results

• Targeting program continually growing and expanding exploration targets

• Significant aircore, RC and diamond drilling set to commence

Drilling programs continuing through 2020-21

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RECENT DRILLING HIGHLIGHTS

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FORTITUDE NORTH DISCOVERY

• Only 80 0 m of 1,50 0 m long target drilled so far

• Gold seen in 7 of 8 diamond drill holes incl. 4m @ 13.63 g/ t Au and 10 .3m @ 3.48 g/ t Au

DEVON MINE

• 4 of 5 RC holes intersected high grade gold incl. 3m@ 35.0 3 g/ t Au and 2m @ 94.4 g/ t Au

• Geological similarities with Red October

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• No drilling below 10 0 m, continuous mineralisation over 50 0 m open to north and south

HILL EAST

• Drilled 39 RC drill holes on 6 targets (HE 1 – HE 6)

• Gold mineralisation at shallow depth in 5 of 6 Targets incl. 6m @ 4.0 g/ t Au and 3m @ 6.82 g/ near surface

• Large gold target identified under HE 1 – HE 4

OLYMPIC

• 80 0 m west of Devon on parallel structure

• Gold intersected in 6 of 8 drill holes incl. 8m @ 6.94 g/ t Au

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MATSA’S EXPLORATION TARGETS

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12 MONTH EXPLORATION PROGRAM TIMELINE

EXPLORATION TARGET	Q3	Q3	Q3	Q4	Q4	Q4	Q1	Q1		Q2	Q2	Q2	Q3	Q3	Q3	Q3
	July	August	September	October	November	December	January	February	March	April	May	June	July	August	September
Red October
Devon
Olympic
Hill East
Fortitude North Supergene
Fortitude North Primary
Gallant

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MATSA’S EXPLORATION TARGETS

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Building Gold	Resources at Lake EXPLORATION TARGETS	Resources at Lake EXPLORATION TARGETS	Resources at Lake EXPLORATION TARGETS	Carey	Carey
		Lower Case Target			Upper Case Target
EXPLORATION TARGET
	Tonnes	Grade	Ounces Gold	Tonnes	Grade	Ounces Gold
Red October	900,000	6.9	200,000	1,740,000	6.1	340,000
Devon	1,040,000	3.0	100,000	2,600,000	3.0	250,000
Olympic	180,000	4	20,000	560,000	6	110,000
Fortitude North Supergene	1,130,000	4.7	170,000	2,020,000	4.7	310,000
Fortitude North Primary	1,350,000	3.2	140,000	2,810,000	3.2	290,000
Fortitude North Total	2,480,000	3.9	310,000	4,830,000	3.8	600,000
Hill East (HE 1)	60,000	1.7	3,000	120,000	1.7	6,000
Hill East Exploration Target	252,000	1.7	13,000	470,000	1.7	26,000
Gallant	280,000	2.2	20,000	350,000	2.2	25,000
TOTALS	7,670,000	2.7	670,000	15,500,000	2.7	1,350,000
		EXISTING RESOURCES
Fortitude	6,289,000	2.0	342,600	6,289,000	2.0	342,600
Red October	446,000	6.9	99,000	446,000	6.9	99,000
TOTAL EXISTING RESOURCES	6,735,000	2.3	441,600	6,735,000	2.3	441,600

The Exploration Target is an important tool whereby available information can be used to guide exploration and prioritise drill hole planning. The potential quantity and grade of an Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource .

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DEVON GOLD MINE

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DRILLING IN PROGRESS

• Main lode intersections confirm the continuation of high-grade gold mineralisation below previously mined open pit by GME Resources Ltd (47,30 2t at 5.3 g/ t Au).

• Phase 1campaign includes 4,50 0 m RC and 450 m diamond drilling

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New short term mining opportunity
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DEVON GOLD MINE

THE DEVON OPPORTUNITY

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• Matsa resolved previous boundary impediments which makes this opportunity possible

• All mining licences and permits in place and makes mining quick and easily restarted.

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New short term mining opportunity
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DEVON GOLD MINE

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OLYMPIC MINERALISED SHOOTS OPEN AT DEPTH

• Phase 1campaign includes 2,0 0 0 m RC and 30 0 m diamond drilling

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LAKE CAREY - FORTITUDE NORTH

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POTENTIAL FOR MAJOR STAND-ALONE DEPOSIT

Previous assays include:

• 4m @ 13.63 g/ t Au from 79m

• 10 .3m @ 3.48 g/ t Au from 124.6m

• 47m @ 2.55 g/ t Au

• Phase 1 campaign includes 10 ,0 0 0 m aircore and 3,150 m diamond drilling

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Gold mineralised zone open for 1.5km

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Success in Mining and Exploration will Deliver Shareholder Value

CONTACT

Paul Poli Executive Chairm an Suite 11, 139 Newcastle Stre e t Perth, Weste rn Australia 60 0 0 +61 8 9230 3555 recep tion@m atsa.co m .au

MATSA RESOURCES INVESTOR PRESENTATION

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