Matsa Resources Limited ('Matsa' or 'the Company' (ASX: MAT) is pleased to announce assay results from recent Reverse Circulation (RC) drilling at the Company's Olympic Prospect, which forms part of the Devon gold mine project area, and is located 800m west of the Devon pit within the Lake Cary Gold Project in the Eastern Goldfields of Western Australia.

Olympic RC Drilling Program October 2020

The RC drilling program at Olympic comprised a total of 12 holes (20ODRC009-20ODRC020) for 1,437m of drilling. Drilling was designed to follow up higher grade mineralisation interpreted from RC drilling carried out late 20192 .

This drilling program was carried out as part of Matsa's stated objective of increasing the Company's resource base within the Lake Carey gold project through the discovery of new gold mineralisation. Drilling was designed to further test the resource potential at Olympic in terms of the continuity and strike extent of gold mineralisation and the distribution of thicker and higher grade mineralisation. New drill results which include further high grade intersections, have confirmed continuity of gold mineralisation over a distance of 500m which remains open along strike and at depth.

Olympic RC Drilling Results

20ODRC012: 5m of 23.84 g/t Au from 63m, incl 1m of 114.5 from 63m

20ODRC013: 2m of 5.19 g/t Au from 38 m

20ODRC015: 1m of 13.9 g/t Au from 71m

20ODRC017: 2m of 3.78 g/t Au from 84m

20ODRC019: 2m of 6.35 g/t Au from 169m

20ODRC020: 1m of 4.72 g/t Au from 22m

Interpretation and comments on drilling results can be summarised as follows: Gold mineralisation occurs in a zone of steeply ENE dipping quartz sulphide lodes along a NNE trending shear zone. Mineralisation is typically < 1m thick, over a strike extent of 500m and is developed in a basaltic volcanic sequence containing interflow iron rich chert units. Lenticular felsic porphyry intrusives are associated with the mineralization

Most drilling to date has intersected mineralisation to a depth of 75m below surface, and has confirmed multiple mineralised shoots of thicker and/or higher grade gold mineralisation which coincide broadly with the historic workings. Further drilling is required to define the geometry and extent of the higher grade and thicker mineralisation

Recent deeper drilling below the historic Olympic workings (20ODRC019 2m @ 6.35 g/t Au from 169m) has demonstrated that this mineralised shoot continues at depth and remains open. This may also apply to the mineralised shoot adjacent to the Danube workings

Much of the mineralised trend is concealed beneath a waste dump from recent mining (2015/2016) at the Devon pit which is not expected to impede development

Geological mapping by previous explorers prior to the waste dump recorded minor displacements of the host sequence and the quartz sulphide lodes by EW faults, which have resulted in progressive displacement of the lode towards the west in the southern part of the lode zone3

Drilling at the southern end of the lode (20ODRC009, 20ODRC010 and 20ODRC011) intersected weak mineralisation in sheared basaltic volcanics. Given the interpreted displacement of the lode zone towards the west, these drill holes may have been stopped short or are located between high grade shoots.

Significance of the new Olympic RC drilling results

High grade intercepts from recent drilling at Olympic have the capacity to enhance the development potential of a combined mining project based around the Devon pit, Olympic, Hill East and a number of early stage exploration targets. High grade drilling results from Devon4 and Hill East5 have been previously announced, as has the discovery of a number of strong gold in soil anomalies6 . The anomalies include LIN1, which is between Devon and Olympic in an area with no previous drilling and/or sampling recorded. Olympic is being assessed within the framework of this potential combined development opportunity, which will now be known as the Devon Gold Mine project.

Sampling and Assay Procedures

All assay results have been received from the 12 RC drill holes completed in the most recent round of drilling. These assays were subject to ongoing industry-wide delays caused by the substantial increase in drilling activity seen in Western Australia in recent months. Sampling and assay procedures and protocols are documented in Appendix 1, assays >0.1g/t Au are listed in Appendix 2 - Part 2.

Matsa's sampling protocols as noted in Appendix 1, specify that: first pass assays are carried out on 3m composite samples

1m split samples are submitted for composite intervals returning >0.1 g/t Au

Contact:

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