Matsa Resources Limited ('Matsa' or 'the Company' ASX: MAT) is pleased to advise that an underground drilling program is due to commence at Red October aimed at providing grade control around the current production area and provide infill to existing resources to define and de-risk potential future mining areas.

Successful drilling results are expected to lead to additional gold ounces to the current mine plan with a view to increasing the production profile at Red October. It is expected that further drilling programs will occur upon receipt of successful results from this initial program.

It is the aim at Red October to increase the production profile in the medium term and build on the steady increase in production achieved in the June 2020 quarter (MAT announcement to ASX 30/7/2020). Ongoing drilling and development is the key to expanding production.

Marlin 410

The Marlin 410 lode is sub-parallel to the ROSZ, and consists of stockwork veining and brecciated textures along the boundary of tholeiitic basalt units. The Marlin 410 (along with the ROSZ lode) was mined extensively by Saracen, and provided a significant proportion of Red October's historic underground production. The Marlin 410 lode presents an opportunity for mining two levels below the current Saracen-mined workings at the 842mRL, which have previously never been mined. Further definition of the existing resource is required to improve confidence in the down-plunge continuity of the grade shoots.

Lionfish

Lionfish consists of narrow, anastomosing lodes within an ultramafic lithology sequence, situated in the hangingwall of the Red October Shear Zone. The program consists of an initial five holes to test for down-plunge continuity of high-grade shoots Saracen mined on the N-1255 Level.

It is expected that the results of this drilling campaign will enable better planning for mine design and, open additional areas for mining as part of the longer-term aim to extend the mine life of the Red October Gold mine. This ASX report is authorised for release by the Board of Matsa Resources Limited.

Contact:

Tel: +61 8 9230 3555

Fax: +61 8 9227 0370

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