Matrix Metals | Copper Production and Exploration

Matrix Metals Limited is pleased to announce the issue of a free loyalty option "Option" to shareholders holding ordinary shares on a 1 for 5 non-renounceable pro rata basis. It is anticipated this will result in up to 20 million options being issued with entitlements to be determined based on registered shareholdings as at 15 February 2002. The Option will be exercisable at 20 cents on or before 14 February 2003.

The Company considers the issue of the Option at this time to be prudent in consideration of the events and circumstances that have prevailed in the past year and the desire of the Company to enhance shareholder loyalty at this important time in the progression of the Company and its mining operations, exploration activities and development studies.

Details of the free loyalty Option to be issued will be presented in a Prospectus and an Appendix 3B document to be issued at a later date.

In an announcement to be released immediately after this Loyalty Option announcement, the Company will advise the ASX that it has concluded a placement of shares, which has raised $2.5 million at 7 cents per share.

Yours sincerely,

Andrew Chapman
Chief Executive Officer