Matrix Metals | Copper Production and Exploration

Matrix Metals Limited is pleased to announce that under a mandate agreement with stock broking firm Patterson Ord Minnett, a placement of 35,808,504 shares to raise $2,506,595 has been concluded.

The issue of the ordinary fully paid shares will be at 7 cents per share and will be processed as two separate tranches, the first issued under the director's 15% authority and the second tranche will be put to an extraordinary meeting of shareholders, to be held in mid-January 2002.

Details of the securities to be placed are:

• The securities to be issued are ordinary fully paid shares.
• Maximum number which may be issued is up to 35,808,504
• The shares will rank pari passu with ordinary fully paid shares currently on issue.
• The funds from the issue will be used for exploration activities including drilling at the Mt Watson Prospect and for working capital purposes.
• The Company will seek security holder ratification in relation to tranche 1 of the proposed issue of securities, which will be for 7,681,500 shares. The Company will seek security holder approval in relation to tranche 2 being the remainder of the shares to be issued.
• The issue will not be to a class of security holders

The Company also announced today the issue of a Loyalty Option to Shareholders on a 1 for 5 non-renounceable pro-rata basis. The Option will be exercisable at 20 cents on or before 14 February 2003. Entitlements for the Option will determined based on registered shareholdings as at 15 February 2002.

Yours sincerely,

Andrew Chapman
Chief Executive Officer