Matsa Resources Limited ('Matsa' or 'the Company' ASX: MAT) is pleased to announce that an exploration and resource definition programme is being designed at Lake Carey for commencement as soon as practicable.

Matsa has identified Exploration Targets with potential for new discoveries of between 670,000 oz and 1,350,000 oz gold at Lake Carey through focused drilling campaigns.

Matsa's existing gold resource of 441,600 oz is contained within the Red October and Fortitude gold projects. Matsa continues to increase ore production at Red October, with production of 23,320 tonnes @ 4.22 g/t Au for 3,162 ounces in the quarter to June 2020 (MAT announcement to ASX 30/7/2020).

Targeted exploration is expected to increase the resource base at Red October and provide additional working areas which will allow increased production and boost the company's continued evolution towards becoming a mid-tier gold producer.

The Exploration Target is an important tool whereby available information can be used to guide exploration and prioritise drill hole planning. The potential quantity and grade of an Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

The programme will focus on discovery and definition of new gold resources within defined Exploration Targets at Red October, Fortitude North and Devon and surrounds. The company recognises the enormous potential for new discoveries within its 560km2 Lake Carey project in the gold-endowed Laverton Tectonic Zone (LTZ), the location of some of Australia's biggest gold mines at Sunrise Dam, Wallaby and Granny Smith.

Matsa's most recent drilling campaign achieved significant gold intersections at Fortitude North, Devon, Olympic and Hill East and included a new gold discovery at the FF1 prospect (MAT announcements 21/1/2020 (Devon), 28/1/2020 (Olympic), 19/2/2020 and 27/2/2020 (Fortitude North), 30/3/2020 (FF1 Discovery), 28/4/2020 (Hill East). Whilst each of these drill programmes were planned with success in mind, the company was delighted with the results from these drill programmes and believes they are paving the way to further significant gold intersections and an increases in the company's resource base.

Matsa's proposed exploration programme is aligned with the corporate strategy of increasing gold inventory by focusing on projects with the highest expectation for discovering new gold resources which can be brought into production in a three year time frame. For this purpose individual projects at Lake Carey have been ranked according to their progression through the 'Discovery Process' Pyramid whereby projects advance from Target Definition through Target Testing, Target Delineation and Resource Definition to the final stage of Ore Reserve Definition according to meeting the criteria as shown.

Exploration targets have been considered for higher ranked projects where there is sufficient available data to make a judgement on potential for discovery of significant new gold mineralisation and to achieve economic viability. These projects include Red October, Fortitude, Devon, Hill East, Olympic, Fortitude North and Gallant.

Red October Gold Mine

Exploration Target: Between 900kt @ 6.9 g/t Au for 200koz Au and 1.74Mt @ 6.1 g/t Au for 340koz 'The potential quantity and grade of an Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource'.

Contact:

Paul Poli

Tel: +61 8 9230 3555

Fax: +61 8 9227 0370

Email: reception@matsa.com.au

Web: www.matsa.com.au

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