Australian gold explorer and developer, Matsa Resources Limited ('Matsa' or 'the Company') (ASX: MAT) is pleased to announce a Mineral Resource Estimate (MRE) for the Bindah deposit located in the Fortitude hub of the Company's Lake Carey Gold Project.

The new Bindah MRE stands at 526,000t @ 2.4g/t Au for 40,000oz using a 1g/t cut-off. Recently, the Company announced new MRE's for the Hill East and Gallant prospects. The Bindah model delivers additional Mineral Resources to the Lake Carey Gold Project which now totals 694,000oz gold.

Lake Carey Gold Project Mineral Resource Estimate Lake Carey Mineral Resource Estimate notes: The geographic region for the Mineral Resource Estimate is Western Australia

Rounding errors may cause a column to not add up precisely

All Mineral Resources are depleted for past mining (both underground and open pit)

Mineral Resources are inclusive of Ore Reserves and there is no update to stated Ore Reserves

Cut-off grades used in this report are not mining cut-off grades

A cut-off grade of 2 g/t Au has been used for underground Mineral Resources and 1 g/t Au for open pit

Matsa Executive Chairman Mr Paul Poli commented: 'Bindah makes a very tidy addition to our Fortitude hub, which now stands at over 400,000 oz at an attractive grade of 2g/t. Fortitude Stage 2, Bindah and Gallant are within 2km from each other and these will make a great mining hub. The entire Lake Carey Project now stands at 694,000oz, including the Devon and Red October hubs. Exploration potential remains strong and we will be planning an exploration campaign for Bindah after we've assessed potential for a cutback.

The area has a great history and we continue to identify opportunities that have had little recent exploration where previous operators were focussed on easy mining oxide ores due to lower gold prices. It is interesting folklore that Bindah was discovered by an old time prospector who shot at some ducks sitting on a low mound in the lake in his search for food. When he went to retrieve the ducks, he stumbled upon the Bindah outcrop. Bindah became a small mining settlement and was mined by WMC in the mid 1980's for its high grade oxide ores. Since then, there has been minimal drilling completed and we believe significant potential remains to be discovered. At Fortitude Stage 2, we are also expecting a model upgrade using the grade control drilling and pit mapping completed just prior to the end of trial mining.

A market update is planned for July. I'm very confident that with further drilling, we will continue to find and develop more resources at both Bindah and our Lake Carey Gold Project in general.'

Bindah Mineral Resource Model

Matsa acquired the project in 2016 when it acquired the Fortitude project. The Bindah Gold Mine is on the southern lake bed of the Lake Carey salt-pan approximately 100 kilometres south of Laverton passing the Sunrise Dam Gold Mine and sits less than 2km south of Matsa's Fortitude Stage 2 planned mining operation.

Drill hole data was extracted from the Matsa Datashed 5 database and validated prior to interpretation. Files used for input into the block model are listed below. The data is of sufficient quality to prepare a MRE which will be reported in accordance with the JORC Code 2012 Lode wireframing was completed in Leap Frog software (geological wireframing) and Surpac (grade interpolation) 3D software was used for the grade interpolation. Ore lodes and grades are well constrained with sharp boundaries between ore and waste noted in the modelling. Lode wireframes were developed on a 3-dimensional basis with 'anomalous' mineralisation included in lode interpretations rather than using a static minimum grade approach. This allows for the natural grade variability of the ore to be captured in a mineralised model as well as accounting for thinning of ore not picked up during drilling due to the nature of RC sampling.

Points were inserted in 3D space to ensure Leapfrog implicit modelling did not create 'balloons' and produced reasonable shapes. A single lode has been interpreted for Bindah and mineralisation is fairly consistent along strike in respect of the continuity of mineralisation. There appears to be a thickened supergene cap and then the ore structure thins and steepens, plunging to the NE.

The lode dips steeply to the north east and from the RC drilling, the mineralisation was up to 15 metres wide in places. WMC records indicate that the open pit mining was terminated at the base of the oxidised zone at a depth of 48m when fresh sulphide ore was intersected. WMC reported that the mineralisation at Bindah is hosted by sub-parallel, ferruginous quartz - infilled shear zones, within a tholeiitic basalt, adjacent to an ultramafic contact.

The geology of the Bindah Deposit was reviewed by SRK Consulting in 2000 who concluded the mineralisation consisted of quartz + pyrite + chalcopyrite hosted by a chert unit in a sediment - ultramafic schist, forming the Bindah Shear. Mineralisation at Bindah appears well constrained and has been pinned by drilling at depth, approximately 300m below surface. Shallow drilling along strike is likely to be inadequate to have thoroughly tested for the presence of potential high grade shoots.

Exploration potential along the Bindah Shear is substantial and also hosts the Gallant and Intrepid prospects to the northwest along strike. The Bindah Shear Zone (BSZ) follows the western margin of intermediate Volcanic package that comprises the Lake Carey Gold Project area. It tends to follow ferruginous, cherty, sulphidic (quartz, pyrite and chalcopyrite) interflow sediments along a sheared Intermediate/mafic-ultramafic lithological contact.

Elevated Cu and Zn in the sediments has been noted by previous explorers suggesting a VHMS affinity, while constituent magnetite in places provides a magnetic target signature. The BSZ is a discrete mylonite zone up to 15m wide. Being significantly narrower and more closely defined than the Fortitude Shear Zone, closer spaced drilling is necessary to adequately test and explore the BSZ than the Fortitude-Fortitude North trend.

Contact:

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Fax: +61 (08) 9227 0370

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