Matrix Metals | Copper Production and Exploration

The Mt Isa region has a significant history for discovery and mining of uranium. The most notable uranium discovery in the Mt Isa region was the Mary Kathleen mine. A total of 9.2 million tonnes grading 0.13% U308 was treated at the mine.

Other major uranium occurrences that have been identified in the region, include the Skal and Valhalla deposits owned by Summit Resources Limited. These deposits are located approximately 40 kilometres south west of the Matrix’s Mt Cuthbert and Ewen tenement blocks.

During 2005, Matrix undertook an evaluation of past uranium exploration and mining that had been carried out in the region. This research identified 15 occurrences of uranium mineralisation or anomalism and an assessment of the uranium potential of the area.

Subsequent to the results of this research being analysed, Matrix formed the NorthWest Uranium Joint Venture (“NWUJV”) with Deep Yellow Limited. Below is a summary of the major terms of the joint venture:

• Deep Yellow must spend $3,000,000 in total by February 2009 to earn its 51% position in the joint venture.
• After earning the 51% position, Deep Yellow can acquire an additional 29% at any time up until the commencement of a bankable feasibility study (“BFS”) on any specific resource, for an additional $3,000,000.
• After completion of any individual BFS on any particular resource, Deep Yellow may buy out Matrix’s residual 20 position (assuming Deep Yellow had already acquired the 29% referred to immediately above) in that specific resource for a value equal to 15% of the inground value of Matrix’s 20% holding in the resource. Each separate resource subject to a BFS, is subject to this buyout provision.
• The greater NWUJV continues at the respective ownership positions as may dictated at any point in time, with Matrix maintaining a minimum 20% holding, subject to it meeting expenditure calls from the NWUJA.