Matrix Metals | Copper Production and Exploration

The Company is pleased to announce the results of the re-estimation of the copper resource at the White Range Project "Greenmount" deposit following the drilling program completed in December 2002. The Company today reports a significant increase in the proportion of the resource presenting favourable leaching characteristics.

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Based on the results of the reverse circulation drilling program completed in December 2002, the details of which were released in January of this year, the leachable resource at Greenmount has increased by 80% from 4.0 million tonnes to 7.3 million tonnes. This represents an increase in the contained leachable in-ground copper from 40,000 tonnes to 71,600 tonnes.

Details of the Leachable Resource Upgrade

The Greenmount deposit is part of Matrix Metals' 100% owned White Range Project, an advanced project on which the Company will complete a Bankable Feasibility Study.

The reverse circulation drilling program, comprising 21 holes for 1700m, was designed to infill the existing drill data to seek an upgrade and reclassification of the copper resource, and to test along strike for extensions to the north and south of the existing resource.

The program has been successful in elevating both the size and tenor of the leachable resource. Mineralisation commences at surface with the resource shown to now continue down to a depth of 150m. The leachable resource has increased from 4.0 million tonnes to 7.3 million tonnes, an increase of over 80%, estimated pursuant to the "ordinary kriging" method. Further, the majority of the resource, now classified as "Indicated", will be elevated to the "Measured" category upon completion of an additional suite of specific gravity determinations. Samples for these SG determinations will be recovered in the drilling program to be carried out to recover core samples for metallurgical testwork from the Greenmount deposit.

Greenmount Deposit Leachable Resources

@ 0.5 % Cu Cut-off

Type	Category	Tonnage (Mt)	Cu (%)	Contained Cu (tonne)
Oxide	Indicated	2.5	1.0	25,400
	Inferred
	Total	2.5	1.0	25,400
Transitional	Indicated	4.2	1.0	40,800
	Inferred	0.6	0.9	5,300
	Total	4.8	1.0	46,200
Total	Indicated	6.7	1.0	66,300
	Inferred	0.6	0.9	5,300
	Total	7.3	1.0	71,600

* Apparent errors due to rounding.

The Greenmount deposit is a key component of the White Range Project. The increase in the size of the leachable resource and it's elevation to the measured category after completion of the SG determinations, will allow the reserve and mine design work to proceed as part of the White Range Project Bankable Feasibility Study.

The recent drilling program was successful in confirming the strong continuity of the copper mineralisation and has indicated further extensions are likely both at depth down the plunge of the major mineralised shoot and to the south side of a major cross cutting fault as depicted in the graphic below.

The program also tested extensions to the north of a second fault at the north end of the deposit, and although mineralistion was not encountered, the interpretation of the data retrieved indicates displacement of the mineralization further to the east than previously understood. Accordingly, the resource is considered to also remain open to the north.

The success of the drilling program has caused the Company to focus attention on the White Range Project Bankable Feasibility Study, and to move towards an intensification of drilling programs scheduled to commence at the end of the current wet season.

The copper resource "Iso-surface" graphic below demonstrates the continuity and homogeneous nature of the Greenmount copper resource.

Yours sincerely,

Andrew Chapman
Chief Executive Officer

The information in this report that relates to Mineral Resources and Ore Reserves is based on information compiled by Messrs Phil Frank and Bob Dennis. Mr Frank is a Fellow of the Australasian Institute of Mining and Metallurgy and is employed by PH Frank and Associates and Mr Bob Dennis is a Member of the Australasian Institute of Mining and Metallurgy and a full-time employee of the Company. Both Messrs Frank and Dennis have sufficient experience which is relevant to the style of mineralisation and the type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 1999 edition of the "Australasian Code for Reporting of Mineral Resources and Ore Reserves. Messrs Frank and Dennis, each consent to the inclusion in the report of the matters based on information in the form and context in which it appears.