Matrix Metals | Copper Production and Exploration

The Company is pleased to announce that a Feasibility Study for a production upgrade at the Company's Mt Cuthbert Operation has been commissioned.

The decision to proceed with the Feasibility Study is based on the ongoing exploration success being achieved at the Mt Watson Deposit and the demonstrated potential for the resource inventory to continue to increase.

It is envisaged that the Mt Watson Deposit will supply ore to the Mt Cuthbert plant on an ongoing basis, commencing late 2002 or early 2003.

The Study will be conducted by engineering consultancy Sinclair Knight Merz (SKM) and will study upgrading the Mt Cuthbert production rate from its current nameplate capacity of 5,500 tonnes per annum (tpa), to approximately 8,500 tpa. This represents a 55% increase to the current production rate.

Results of the Study are due to be received from SKM in April/May 2002.

Yours sincerely,

Andrew Chapman
Chief Executive Officer

The geological information in this report is based on information compiled by the Company's Senior project Geologist, Mr Phil Frank and the Company's Operations Manager, Mr Bob Dennis both of whom are employees of Matrix Metals Limited. Messrs Frank and Dennis each have a minimum of 5 years experience in estimation, assessment of, and evaluation of Mineral Resources and Ore Reserves, which are relevant to the style of mineralisation under consideration.