Matrix Metals | Copper Production and Exploration

Matrix Metals Limited is pleased to announce a 55% increase in the copper resource at the Company's Mt Watson Prospect. The increased resource follows the drilling results announced on 15 January 2002 and now totals:

1.3 million tonnes @ 1.3 % copper, at 0.5% cut-off.

The previous resource was 837,000t @ 1.3 % Copper. The resource is categorised as indicated and inferred and relates to holes drilled to a maximum vertical depth of only 22m.

The Company considers this resource increase highly significant in terms of Mt Watson continuing to demonstrate quantified performance, together with offering uncapped potential for further resource increases. The resource area remains open to the east, west and at depth and now extends over a strike length of 1,100 metres.

Diamond drilling during the late 1960's demonstrated oxidation extending to a depth of 90 metres below the surface. Malachite (copper carbonate) and native copper were observed in the core to this depth but the records indicate the samples were not assayed. This highlights the potential for discovering substantial resources below the 22 metres depth, drill tested by Matrix to date.

A program of deeper reverse circulation and diamond drilling to test for depth extensions of the mineralisation down to 100m has been designed and is scheduled to commence in February 2002. This drilling is designed to provide the data to further increase the resource tonnes and to upgrade the resource to the measured and indicated categories and enable reserve estimations and pit design studies to be undertaken.

Criteria applied to the current resource estimations are consistent with that used for the previous estimation detailed in an announcement dated 3 July 2001.

RESOURCE TABLE

Indicated Resource:
Location	Tonnes	Copper Grade %
Western Zone	332,000	1.1
Eastern Zone	546,000	1.5
Sub total	878,000	1.3

Inferred Resource:
Location	Tonnes	Copper Grade %
Western Zone	59,000	0.9
Central Zone	248,000	1.3
Eastern Zone	109,000	1.3
Sub total	416,000	1.2
Total	1,294,000	1.3

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.