Matsa Resources Limited ('Matsa' or 'the Company' ASX: MAT) is pleased to announce results from its February 2020 RC drilling at Hill East, which is located within 2km of Matsa's Devon gold mine and 10km SSE of Matsa's Red October gold mine.

Hill East is located 2km SE of the Devon gold mine, 6km west of Fortitude gold mine, 9km SW of Fortitude North and 10km S of Red October gold mine which emphasises the significant number of nearby gold deposits at Matsa's Lake Carey project.

Results from this drilling programme provide strong encouragement, both to continue to evaluate near-term development potential of shallow gold mineralisation, as well as to continue exploration for associated deeper gold mineralisation. These targets are well located for consideration as potential satellite operations, which could take advantage of Matsa's existing Red October infrastructure and ore treatment options.

Each of the exploration targets at Hill East, are typically 200m long and comparatively close spaced (20 - 30m hole spacing's). RC drilling was carried out with the objective of determining continuity and extents of shallow mineralisation outlined by previous drilling and which are intermittently exposed in historic workings. It is noteworthy that the four eastern targets tested, namely HE 1 - HE 4 are located within a well defined auger soil gold anomaly with maximum values in soil of up to 0.5 g/t Au.

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 with the near-term commencement of Stage 2 open-pit gold mining at Fortitude gold mine. 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 as 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

Email: reception@matsa.com.au

Web: www.matsa.com.au

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