Head Office:

Suite 11, 139 Newcastle Street, Perth Western Australia 6000

Tel: +61 8 9230 3555 Fax: +61 8 9227 0370

Bangkok Office:

Unit 1808, Pacific Place 2, 142 Sukhumvit Road, Klongtoey, Bangkok 10110

Tel: +66 0 2653 0258 Fax: +66 0 2653 0258

Criteria

JORC Code explanation

Commentary

Location of

data points

 Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other

locations used in Mineral Resource estimation.

 Specification of the grid system used.

 Quality and adequacy of topographic control.

 EM survey loops and receiver data points are laid out using handheld GPS units to an accuracy of 3-5m

 Topographic control 2-5m accuracy using published maps or

Shuttle Radar data is considered to be sufficient for modelling

of EM survey results.

Data

spacing and distribution

 Data spacing for reporting of Exploration Results.

 Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity

appropriate for the Mineral Resource and Ore Reserve

estimation procedure(s) and classifications applied.

 Whether sample compositing has been applied.

 Loops are laid out as rectangles measuring approximately

1200x800m in a NS and EW direction.

 Receiver data is acquired at 50m intervals along lines spaced at 150m

 Survey lines are typically run parallel to the short electrode direction

Orientation

of data in relation to geological structure

 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is

known, considering the deposit type.

 If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have

introduced a sampling bias, this should be assessed and

reported if material.

 The Transmitter loops and survey lines are carried out NS and

EW.

 Geological strike is highly variable but dominated by a NNE "grain" which means that in most cases EM data is acquired at a high angle to geological strike.

Criteria

JORC Code explanation

Commentary

Mineral

tenement and land tenure status

 Type, reference name/number, location and ownership including agreements or material issues with third parties such

as joint ventures, partnerships, overriding royalties, native title

interests, historical sites, wilderness or national park and environmental settings.

 The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate

in the area.

 EL69/3070 which is owned 100% by Matsa Resources Ltd.

 Located on Vacant Crown Land

 The License intersects the buffer zones of the Fraser Range

and Southern Hills PEC's Exploration to be managed in

accordance with a Conservation Management Plan.

 The project is located within Native Title Claim by the Ngadju people.

 A heritage agreement has been signed and exploration is carried out within the terms of that agreement.

 At the time of writing the licence is granted for a 5 year period expiring on 6th March 2018

Exploration

done by other parties

 Acknowledgment and appraisal of exploration by other parties.

 Prior work carried out by GSWA in the form of wide spaced helicopter based soil sampling and acquisition of 400m line

spacing magnetic and radiometric data.

 In the late 90s, Gold Partners NL has carried out few wide- spaced aircore drilling on one line along the southeast portion

of the tenement. No anomalous assay results have been

reported.

Geology

 Deposit type, geological setting and style of mineralisation.

 The target is Nova style Ni Cu mineralization hosted in high grade mafic granulites of the Fraser Complex.

 Recent results also support potential for magmatic copper only mineralisation in Felsic granulites

Diagrams

 Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery

being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional

views.

 Suitable summary plans have been included in the body of the report.

Balanced

reporting

 Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high

grades and/or widths should be practiced to avoid misleading

reporting of Exploration Results.

 Not required at this stage

Other

 Other exploration data, if meaningful and material, should be

 Airborne VTEM (combined magnetic and electromagnetic)

Criteria

JORC Code explanation

Commentary

substantive

exploration data

reported including (but not limited to): geological observations;

geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

carried out in December 2012 by Geotech Airborne Pty Limited. A total of 6 priority targets and 15 second order targets

identified and reported on by Southern Geoscience Consultants

Ltd. VTEM survey carried out over entire tenement on 200m lines.

 Prior to December 2012, Comprehensive geochemical survey carried out by Matsa Resources comprising 614 samples

mostly at 400m centres on a staggered grid identified targets

SH01 to SH05. Infill at 200m x 200m completed over targets

SH01 to SH05 in May 2013 for a total of 638 samples.

 Ground EM 2013, (See Location Plan below) carried out by Bushgum Holdings Pty Ltd, under supervision by Newexco consultants, consisting of both moving-loop (MLEM) and fixed- loop (FLEM) surveys. Data acquisition was achieved using a SMARTem24 8-channel geophysical receiver manufactured by ElectroMagnetic Imaging Technology (EMIT), Bartington 3- component magnetic field sensor (up to 1Hz frequency response) and a Zonge ZT-30 Loop Driver transmitter to power the loop with up to 30A. The MLEM and FLEM surveys are

both 400m wide. In the MLEM, the survey lines are spaced

400m apart with receiving stations every 100m inside the loop along an E-W direction. In the FLEM, the receiving stations are

50m apart across 1 km traverse in an E-W direction.

 Fixed Loop TEM Surveys carried out in February March 2014 by Outer Rim, (See Location Plan below) SURVEY

PARAMETERS Configuration : Fixed Loop, Station Spacing :

50 m; Receiver : SMARTem24, Frequency : 2.0833, Component Z,X,Y, Rx Coil : Fluxgate, Rx Area : 10000m2

turn-m; Transmitter : Crone-Ext, Tx Moment : Unknown turn-m,

Tx Current : 20 A Turn Off : 0.5 ms

Survey Location Plan Attached

FLTEM loop sizes ranged from 300x500m to 400x600m, single loop turn. Multiple E-W survey lines were utilised (3) per line at

150m line spacing in order to adequately resolve potential bedrock conductors. All FLTEM surveying was completed with

50m station spacing.

Criteria

JORC Code explanation

Commentary

 Induced polarization (IP) geophysical surveys over

geochemical targets SHG01, SHG02 and SHG03. Survey type: Pole/Dipole-dipole (2D) at 100-200m spacing; Receiver: GDD

GRX-32 IP receiver; Transmitter: zonge GGT-30; Frequency

0.125 Hz; Data coverage: N=12-16 ~300 to 500m depth of investigation.

 Current HPFLEM See location plan for current progress. - high powered fixed loop TEM 800x1200m loops, 100m stations,

150m line spacing, ORE HP transmitter producing ~120-150A,

Base Frequency for initial surveys (will change) - 0.5Hz, ZXY

components (Z+Up, X+East, Y+North), EMIT SMARTfluxgate

B-field sensor Each loop currently consists of 12 survey lines,

192stns and 18.0kms coverage.