Matsa Resources Limited ('Matsa' or 'the Company') (ASX: MAT) is pleased to provide an update on the Red October resource and on the underground drilling program recently completed at the Red October gold mine.

Red October Resource and Mining Potential

In parallel with the recent drilling program Matsa is completing further work on the existing JORC 2012 resource base to define a 'mineable' resource based on a set of minimum mining design criteria. Matsa has previously reported a JORC compliant mineral resource of 96koz for Red October in its 30 June 2020 Annual Report - this resource is stated using a 5g/t Au resource cut-off. The resource was estimated by Saracen Mineral Holding Limited (Saracen) in 2016 and not been updated previously due to limited new information being available which would make a material impact on the resource.

In order to optimise the potential of the resource, Matsa completed a preliminary assessment of a potential mineable inventory using a 2g/t Au cut-off which could provide the Company with a pathway to developing a long-term mine plan underpinned by resource and exploration focus points for further drilling.

Key results from this review indicates

A Measured, Indicated & Inferred Resource (MI&I) of 173koz using a 2g/t Au resource cut-off offers an initial resource base

Additional potential of 143koz defined by sparse drilling has been identified that requires further drilling to establish a JORC compliant resource2

Between 200koz and 240koz in MSO3 potential that could form the basis of a long-term mine plan (note the results of MSO work is yet to undergo detailed mine designs, economic evaluation and scheduling to establish a Mine Plan and requires further drilling which may or may not lead to a revision to the Company's Mineral Resource).

Contact:

Paul Poli

Tel: 08 9230 3555

Email: reception@matsa.com.au

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