Matsa Resources : Initial High Grade Resource at Devon

Matsa Resources Limited

ASX Announcement

8th April 2021

Initial High Grade Resource at Devon

Lake Carey Gold Project

Highlights

• Initial Devon Mineral Resource Estimate of 80koz @ 4.1g/t Au (1g/t cut- off) confirmed
• The Devon Resource is shallow, high grade and amenable to open pit mining methods and mining feasibility studies have commenced
• The resource includes only the Devon Pit and the Olympic prospect with potential to increase as further exploration is conducted across at the Devon Project area
• Devon pit and Olympic prospects remain open at depth with potential for offset strike extensions to be found to the north and south
• Follow up extensional drilling will commence shortly, aimed at increasing the resource base at Devon
• Exploration drilling at Devon's LIN1, HE1 and HE5 prospects is scheduled to commence within the next 2 to 4 weeks
• Matsa has identified a large number of additional gold prospects at Devon and several interpreted Sub-Audio Magnetics (SAM) geophysical targets that require further exploration
• Additional SAM surveys are anticipated north of Devon pit to test for potential offset extensions to mineralisation and define new drill targets
• Recent field activities have confirmed a north - south striking fault which appears to be a linking structure between Devon pit and the new LIN1 target

CORPORATE SUMMARY

Executive Chairman

Paul Poli

Directors

Frank Sibbel

Pascal Blampain

Director & Company Secretary

Andrew Chapman

Shares on Issue

1. million
   Unlisted Options

1. million @ $0.17 - $0.35
   Top 20 shareholders Hold 58.24%
   Share Price on 7th April 2021

1. cents
   Market Capitalisation $20.61 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 | [e-mail]

Matsa Resources Limited

Matsa Resources Limited ("Matsa" or "the Company" ASX: MAT) is pleased to announce a Mineral

Resource Estimate at Devon comprising the Devon pit and Olympic prospects. Within 500m of these two prospects lie the Hill East and LIN1 gold and SAM geophysical anomalies that are subject to an upcoming drilling program recently announced1 by the Company.

Devon Resource Model

Matsa completed 71 RC drill holes for 8,077m during 2019 and 2020 to test the grade and continuity of mineralisation at depth and along strike at Devon pit and Olympic prospects. Select highlights of recent drilling results2 listed below illustrate the high grade potential of these prospects:

19ODRC005	8m	@ 6.94 g/t Au from 80m
	Incl. 3m @ 16.3 g/t Au
19ODRC001	2m	@ 16.6 g/t Au from 74m
	Incl. 1m @ 28.6 g/t Au
20DVRC016	5m	@ 2.13 g/t Au from 75m
	incl. 1m @ 8.43 g/t Au
20DVRC028	1m	@ 22.07 g/t Au from 70m
20DVRC031	4m	@ 15.5 g/t Au from 71m
	incl. 3m @ 19.6 g/t Au
20DVRC033	2m	@ 8.23 g/t Au from 65m
	incl. 1m @ 15.19 g/t Au
20DVRC034	3m	@ 6.33 g/t Au from 59m
20DVRC036	3m	@ 10.56 g/t Au from 119m
	incl.	1m @ 25.93 g/t Au

Following receipt of final assays early in 2021, models have been prepared for both Olympic and Devon pit prospects. Whilst the drilling is sufficient to establish a Mineral Resource Estimate, mineralisation at both prospects remains open at depth and potential for offset extensions to the north and south also exist.

Modelling was completed in Leapfrog (geological wireframing) and Surpac (grade interpolation) 3D software. Ore lodes and grades are well constrained with sharp boundaries between ore and waste noted in the modelling.

1. ASX Announcement 9 March 2021 - SAM Survey Highlights New Targets Devon Gold Project
2. ASX Announcements 28 April 2020 - Further High Grade Gold near Devon Hill East - Lake Carey Gold Project, 7 December 2020 - High Grade Gold Results Enhances Devon, 20 January 2021 - Olympic High Grade Results Enhances Devon Gold Project

Matsa Resources Limited

The 2021 Mineral Resource Estimate is tabulated below:

Devon 2021 Mineral Resource Estimate (1g/t Au cut off)

	Indicated	Inferred			Total Resource
Prospect	Tonnes	Au	Tonnes	Au			Tonnes	Au		Au
kt	g/t	kt	g/t			kt	g/t		koz
Devon pit	341	4.8	102	3.6	443	4.6		65
Olympic	-	-	171	2.8		171	2.8		15
Total	341	4.8	273	3.1	614	4.1		80

Resource Statement Notes:

• The geographic region for the Mineral Resource Estimate is Australia.
• Figures have been rounded in compliance with the JORC Code (2012).
• Rounding errors may cause a column to not add up precisely. Resources exclude recoveries.
• Resource is depleted for past mining
• No reserves have been estimated
• There are no Measured Resources
• Cut-offgrades used in this report are not mining cut-off grades.
• No metallurgical or other modifying factors were used in this Resource statement

The shallow high grade nature of mineralisation at Devon pit (Figure 1) in particular, lends itself to a potential cutback mining scenario with minimal pre strip requirements, early access to ore and mining studies have commenced. The grade and mineralisation are expected to be amenable to both open pit and underground mining methods and may provide a logical add-on to the established mining plan at Fortitude Stage 2.

Figure 1: Devon pit prospect and adjacent gold in soil anomalism

Matsa Resources Limited

Exploration Potential

Both Devon pit and Olympic resources remain open at depth and potential for offset / strike extensions to the north and south remain. Historical mapping for the region has highlighted brittle deformation pointing to potential offsets of the lode structures.

In addition to known structural offsets, the soil sampling conducted by Matsa over the past 6 months has highlighted a number of gold in soil anomalies that are yet to be drill tested.

In the near future, the Company expects to extend its SAM coverage to the north of previously completed surveys, encompassing the Olympic and Devon pit prospects that could assist in defining further drill targets.

Devon Project Background

Devon, within the Lake Carey Gold project (Figures 2 and 3), is located 7km south of Matsa's Red October Mine and contains a significant number of historic gold workings. Recent successful drilling by Matsa has been focused on the Devon pit, Olympic, and Hill East prospects.

The Devon pit and Olympic prospects were both mined in the early 1900s via shaft and level development. It was also mined during 2015 and 2016 by GME Resources who reported production of approximately 61kt @ 5.3g/t for 10.4koz from the Devon pit.

Devon was acquired by Matsa in November 20183 which removed multiple tenement ownership impediments to exploration and at the time of acquisition, no resource was reported.

3 ASX Announcement 14 November 2018 - Matsa Expands Lake Carey Gold Project

Matsa Resources Limited

Figure 2: Lake Carey Gold Project showing Devon Tenement package