Matsa Resources Limited ('Matsa' or 'the Company' ASX: MAT) is pleased to provide an update on the underground drilling program currently underway at Red October.

The drilling program at Red October is aimed at providing grade control near the current production area and provide infill to existing resources to define and de-risk potential future mining areas. This initial 2,900m diamond drilling program commenced 26 August 2020 and is progressing well with the drilling contractor working ahead of schedule.

Drilling to date of the Lionfish lodes appears to be positive and seems promising with fine grains of visible gold being detected in drillhole ROGC751 with a 0.5m wide brecciated lode at 40m hole depth - confirming that there is an ore shoot. The Lionfish lodes are near to existing development which, could be brought into the mine plan relatively quickly.

Drilling of the Marlin 410 lode is aimed at infilling known mineralisation and proving up two more mining levels under the lowest current level in the Red October mine. The first drill hole had visibly strong gold mineralisation on the Marlin 410 which again is promising. Importantly, this zone was intersected at the expected location.

It must be cautioned that no assays have been received at this time. Further drilling programs will occur upon receipt of successful results from this initial program. Further updates will be provided as more information comes to hand and the drilling program continues.

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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