Matrix Metals | Copper Production and Exploration

Matrix Metals Limited is pleased to announce that after a period of office based interpretation and analysis work, exploration activities at the Mt Watson site have recommenced today.

Initial field activities will include mapping and soil sampling of the strike extension areas that have been identified around the existing Mt Watson resource, with the aim of firming up the targets for the next round of scout and resource definition drilling. Particular focus will be given to the new mineralised zone directly to the south of Mt Watson that was identified in the successful March 2002 drilling program.

Following this initial work, drilling at Mt Watson is programmed to commence following completion of the current Rights Issue.

The initiation of this phase of the exploration program signifies the commencement of the concerted exploration effort to be undertaken by Matrix. Matrix is targeting to achieve a major increase in the Company's oxide copper resource inventory to facilitate a significant increase in the economies of scale at Mt Cuthbert.

Yours sincerely,

Andrew Chapman
Chief Executive Officer