Matsa Resources Limited ('Matsa' or 'the Company' ASX: MAT) is pleased to announce additional results from its December 2019 RC drilling programme which was designed to test a number of exploration targets close to the Company's Red October gold mine.

The programme included 8 RC drill holes at the newly acquired Olympic target. This new target is located 800m west of the Devon project where strong results were recently announced (MAT Announcement to ASX 22/01/2020).

The Olympic target has not been previously explored by Matsa. These results reaffirm Matsa's view of the high prospectivity and potential of its Lake Carey gold project in the Eastern Goldfields of Western Australia.

Results from Olympic RC Drilling

Drilling was carried out at the Olympic target during December 2019. Drill holes completed were designed to test gold mineralisation below and along strike of historic drilling and underground workings.

Gold Mineralisation at Olympic

Olympic is located 8km south of Red October and 800m west of Devon. It is centred on a variable thickness (average 1m) quartz-sulphide bearing shear zone striking NNW and dipping 75-degree east over a current strike length of 500 metres. The shear is proximal and sub-parallel to the western contact of a felsic porphyry dyke within a sequence of metasediments and carbonated intermediate to mafic volcanics. Mineralised lodes appear as steeply plunging shoots within the Olympic shear zone and interpretation of historical assay data suggests mineralisation may also be present within subparallel hangingwall and footwall shears. A series of SE striking dextral faults cross the Olympic shear but their relationship to mineralisation is not yet understood. They may be linking faults between the Olympic shear and the Devon shear structure to the east. The Olympic and Danube mines were worked sporadically between 1897 and 1921. Available historical production reports total 1,436 tonnes @ 39 g/t for 1,805 ounces of gold.

RC Drilling Programme December 2019

Next Steps

Further drilling is planned to extend and better define high grade mineralisation trends and to test for potential mineralisation between Olympic and Devon. An IP survey test, covering the Olympic and Devon area, is planned to confirm whether high grade lodes can be detected by this technique and to assess the area between the two deposits where there is no previous drilling.

Background: Matsa's Lake Carey Gold Project

Matsa holds a significant ground position of 563km2 at Lake Carey which is highly prospective for new gold discoveries. The Company is committed to becoming a mid-tier gold mining company through its production at the Red October underground gold mine and planning nearing completion for commencement of Stage 2 open-pit gold mining at Fortitude. Matsa also sees substantial opportunities for further discoveries in favourable structural and stratigraphic settings within the Lake Carey Project area which remain relatively under-explored. Matsa's discovery at Fortitude North and earlier discoveries along the Bindah Fault and well as production history at Red October and Devon, provide strong support for Matsa's belief that there are significant areas which remain under-explored since the discovery of Sunrise Dam in 1988.

Contact:

Paul Poli

Tel: +61 8 9230 3555

Fax: +61 8 9227 0370

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