Matsa Resources : Grows Thailand Presence via New Lithium Applications

Matsa Resources Limited

ASX Announcement	7th February 2022
only	Matsa Grows Thailand Presence Through New Lithium Applications
HIGHLIGHTS
CORPORATE SUMMARY
• Matsa has acquired 65 strategic SPLAs (Special Prospecting Licence	Executive Chairman
	Applications) comprising 942km2 which have been accepted by the Thailand	Paul Poli
	government
use		Directors
•	The new SPLAs host lithium occurrences reported in Thailand's Department	Frank Sibbel
	of Minerals and Resources (DMR) records and lie along the lithium bearing
	western granite/pegmatite belt where Pan Asia Limited (ASX:PAM) is	Pascal Blampain
	reporting exploration successes at Reung Kiet and Bang I Tum prospects	Andrew Chapman
• Planning is underway to sample the new licences with the goal of identifying	Shares on Issue
	lithium bearing pegmatites for drill testing	358.95 million
• The acquisition of the SPLAs in Thailand follows positive recent developments
Listed Options
	including:
	49.22 million @ $0.17
personal	o Kingsgate Consolidated Limited (ASX:KCN) announcing1 expected
Unlisted Options
recommencement of operations at the world class Chatree mine
o The recent success of PAM's lithium exploration2 and government	59.08 million @ $0.17 - $0.35
support	Top 20 shareholders
o Positive sentiment for exploration building in recent government	Hold 53.29%
policy and dialogue	Share Price on 4th Feb 2022
•	The new SPLAs add to Matsa's existing Thailand tenement applications,	5.3 cents
	including the Chang and Siam copper projects, with historical results of:
	Market Capitalisation
For	o 22m @ 0.55% Cu from 106m
A$19.02 million
o 158m @ 0.2% Cu from 18m; and
o Rock chip sampling values up to 54% Cu and 180g/t Ag

1. ASX Announcement 19th January 2022 KCN: Licences now approved paving the way for a Chatree Gold Mine restart
2. ASX Announcement 16th August 2021 PAM: Investor-Presentation---27-August-2021

Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487

Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [e-mail]

Matsa Resources Limited

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Matsa Resources Limited ("Matsa" or "the Company" ASX: MAT) is pleased to announce that the Company has recommenced active exploration in Thailand.

Alongside the Company's active exploration at its flagship Lake Carey Gold Project, Matsa has applied for 65 new Special Prospecting Licence Applications (SPLAs) for 942km2 in key granite/pegmatite belts (refer Figure 1). The SPLAs cover ground known by Thailand's Department of Minerals and Resources to host lithium occurrences. Matsa has a fully functional office, staff and skills in the country and is well positioned to actively grow its portfolio.

Matsa is ramping up its activities in Thailand because there have been a number of significant recent developments which strongly encourage mineral exploration, including:

• Regular Matsa dialogue with the Department of Forestry and the Agricultural Land Reform Office (ALRO) confirms steps are being put in place to allow for exploration activities where previous impediments existed
• Announcements by KCN regarding recommencement of operations at their Chatree Gold Mine3 following renewal of all applicable licences
• Exploration successes announced by PAM4 in regard to its lithium projects

The SPLAs are located in the western granite belt, which extends over ~800km along Thailand's western border with Myanmar and Malaysia. This belt has historically been a prolific source of tin.

The new lithium tenements have been selected using at least two of the following criteria:

1. lying within the Western granite/pegmatite belt
2. being either contiguous or in close proximity to PAM's licences where recent drilling produced drilling intersections of up to 1.44% Li20
3. Thailand Department of Minerals and Resources reports have recorded Lithium and/or pegmatite
4. recorded occurrences of tin, tungsten or tantalum

Prior to these new applications, the company discovered and explored a number of significant copper targets (Siam 1, Siam 2 and Chang 1 projects) prior to scaling back activities in 20165 due to low political support for mining and exploration activities. These projects have all been retained under SPLA/EPLAs (Appendix 2) due to their strong potential.

Matsa will build upon past exploration in the country and seek to establish a strategic landholding targeting lithium, copper, lead, zinc, silver and gold in Thailand's rich metalliferous and geological setting.

1. ASX Announcement 19th January 2022 KCN: Licences now approved paving the way for a Chatree Gold Mine restart
2. ASX Announcement 16th August 2021 PAM: Reung Kiet Lithium Project Drilling Update
3. ASX Announcement 30th September 2016 MAT: ANNUAL REPORT For the Year Ended 30 June 2016

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Figure 1: Matsa Lithium Projects in Thailand

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Matsa's chairman Mr Paul Poli commented:

"Thailand has always been a place of special interest to Matsa and we always understood its excellent geological prospectivity, but had to be patient whilst the country matured their mining legislation and consent processes. We have observed substantial progress in this area over the last 6 months and authorities have now been positively engaging with miners. This is clearly evident through Kingsgate recommencing mining at their Chatree Gold Mine and even further afield, the success of Pan Asia with their lithium discoveries.

Matsa sees enormous opportunities in exploration for lithium, gold and base metals, not only because of the highly prospective geology, but also the economic ramifications of Thailand's close location to China. The two countries are now directly linked by rail which could have positive economic benefits to any mine development within the region.

I see Thailand as an emerging mining frontier where tier one discoveries are bound to be made and with the change of attitude to mining it will be a great exploration destination. Our Thailand office, led by our Thailand Managing Director Mr Ratha Kheowhamseang, is taking advantage of this changing environment and using Matsa's extensive Thailand experience and knowledge to build a high value exploration portfolio that will complement Matsa's highly regarded Lake Carey Gold Project.

Matsa intends to use some of the funds from the recently announced $20M sale of Red October and Devon to advance the projects".

LITHIUM EXPLORATION

Matsa's new 65 SPLAs (Appendix 1) are located in western Thailand with almost half (433km2) in the Phang Nga province, which hosts PAM's flagship lithium project of Reung Kiet. The area is the most prolific tin district in Thailand whose granite composition is considered fertile for lithium. In historic literature6, the pegmatite at Khao Po (Figure 2) has been reported as the "largest unzoned lepidolite (lithium mica) pegmatite in the world".

The literature suggests "these bodies and the numerous other parallel lepidolite pegmatites trend about 218-220o parallel to the Phangnga Fault zone and dips generally to the south east". As such, this pegmatite swarm is expected to trend into Matsa's tenements to the southwest and provides high priority exploration opportunities to identify and sample potential lithium occurrences very early in the exploration program.

Lithium exploration is in its infancy in Thailand and it is clear there is an untapped opportunity to explore and potentially identify the preferred "zoned pegmatite" that are expected to host the higher lithium grades as the geological setting moves away from the pegmatite/granite core to the margins of the intrusive system (Figure 3).

6 The geology of the tin belt in Peninsular Thailand around Phuket, Phangnga and Takua Pa, by Garson,Young, Mitchell and Tait, Institute of Geological Sciences, Overseas Memior No.1, 1975

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personalFor Figure 2: Khao Po pegmatite region with Matsa tenements (after British Geological Survey, 1990) with priority first pass targets outlined in blue