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

Sampling

techniques

Nature and quality of sampling (eg cut channels, random chips, or specific

specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

Thailand

Sampling carried out according to well established procedure. Soil samples are taken as close as possible to the top of the weathered rock profile rather than in overlying vegetation rich A horizon material. Stream sediments samples represent active bedload in defined drainage channels

Sampling

techniques

Measures taken to ensure sample representivity and the appropriate calibration

of any measurement tools or systems used.

Soils and streams: Sufficient sample bagged in the field to enable selection of duplicates to be run for QA QC purposes.

Rocks, typically 1-2kg collected, and submitted for crushing and grinding at lab.

Sampling

techniques

Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other

cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

Stream Sediment Samples and soil samples

-2mm samples of active stream silt and B horizon soils were submitted for assay where samples were dried and further reduced by screening with assays carried out on the -80# fraction.

Rock Samples

Rock samples comprise 1-3 kg of visually interesting material were submitted for drying, crushing to 2mm size and then pulverized down to 106 microns or -150# to MAS laboratory in Bangkok.

Limited hand held XRF analysis carried out on rock samples as a semi quantitative way to confirm their copper bearing character.

Drilling

techniques

Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger,

Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

Drill sample

recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

Drill sample

recovery

Measures taken to maximise sample recovery and ensure representative nature of the samples.

Criteria

JORC Code explanation

Commentary

Whether a relationship exists between sample recovery and grade and whether

sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Logging

Whether core and chip samples have been geologically and geotechnically

logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

Logging

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

Logging

The total length and percentage of the relevant intersections logged.

Sub-sampling

techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

Not applicable

Sub-sampling

techniques and sample preparation

If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled

wet or dry.

Sub-sampling

techniques and sample preparation

For all sample types, the nature, quality and appropriateness of the sample

preparation technique.

Standard lab sample preparation process includes drying, crushing and pulverizing.

Standard lab sample preparation process includes drying, screening to -80# for soil and stream sediment samples. Rock samples undergoes drying, crushing to nominal -2mm size and pulverized to 106 microns/-150#. Rock samples with Cu grades of >1% were screened to 75microns/-200#.

Sub-sampling

techniques and sample preparation

Quality control procedures adopted for all sub-sampling stages to maximise

representivity of samples.

Sub-sampling

techniques and sample preparation

Measures taken to ensure that the sampling is representative of the in situ

material collected, including for instance results for field duplicate/second-half sampling.

Sub-sampling

techniques and sample preparation

Whether sample sizes are appropriate to the grain size of the material being sampled.

Sample size is appropriate for the targeted mineralization style.

Quality of

assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory

procedures used and whether the technique is considered partial or total.

Thailand

Assaying of soil samples, stream sediments and rock samples were carried out at Mineral Assay and Services (MAS) laboratories in Bangkok, Thailand, Soil samples: Sample preparation dry and screen to -80#, A 0.5gram sample of the -

80# fraction digested by Aqua regia acid digest (Digest GEO23) and 23 elements

including Cu were read by ICP OES to a reported detection limit of 1ppm Cu and upper detection limit of 1% Cu. Rock samples with assays over 1% Cu were subjected a sodium peroxide fusion and measured with AAS for Cu only. Rock

Criteria

JORC Code explanation

Commentary

samples with Ag values over the 100 ppm upper detection limit were re assayed using a 4 acid digest and read by AAS (Method code Ag4AD/AAS)

A table of elements with lower and upper detection limits is attached as Appendix

2. Some elements are only partially leached by the GEO23 digest leading to incorrect assays for some elements e.g., Al, Cr, Fe, etc.

Sample S1W_V1 was assayed by ALS Global Perth WA (Appendix 2)

For geophysical tools, spectrometers, handheld XRF instruments, etc, the

parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

Olympus Innovx Delta Premium (DP4000C model) handheld XRF analyser. Reading times employed was 45 sec/beam for a total of 145 sec using Soil

Mode.

Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

Not carried out because laboratory QA QC procedures are regarded as sufficient at this stage.

Handheld XRF QAQC includes use of duplicates, standards and blanks.

Verification of

sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

Matsa Group Exploration Manager verified all significant intersection results.

Verification of

sampling and assaying

The use of twinned holes.

Verification of

sampling and assaying

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

Data entry carried out by field personnel thus minimizing transcription or other errors. Trial plots in field and rigorous database procedures ensure that field and assay data are merged accurately.

Verification of

sampling and assaying

Discuss any adjustment to assay data.

No adjustments were made to the assay data.

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.

Location of

data points

Specification of the grid system used.

UTM Grid system used namely Indian Thailand 1975 datum Zone 47.

Location of

data points

Quality and adequacy of topographic control.

Topographic control 2-5m accuracy using published maps or Shuttle Radar data is sufficient to evaluate topographic effects on assay distribution.

Data spacing

and distribution

Data spacing for reporting of Exploration Results.

For Thailand, typically between 4 and 12 samples per km2.

Data spacing

and distribution

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.

Not applicable at this stage.

Data spacing

and distribution

Whether sample compositing has been applied.

Criteria

JORC Code explanation

Commentary

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.

Orientation of data in relation to geological structure

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.

Sample

security

The measures taken to ensure sample security.

Not regarded as an issue for soil samples and first pass aircore samples beyond clear mark up and secure packaging to ensure safe arrival and accurate handling by personnel at assay facility. Assay Pulps retained until final results have been evaluated.

Audits or

reviews

The results of any audits or reviews of sampling techniques and data.

Not carried out at this stage.

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.

Thailand

Exploration tenements comprise more or less regular aggregates of square blocks to a maximum of 16km 2. Tenements are held by Siam Copper Ltd and PVK Mining Limited which are both wholly owned subsidiaries of Matsa

Resources Limited. Tenements have been granted for a period of 5 years subject to completion of agreed exploration programme.

Mineral tenement

and land tenure status

The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.

All Matsa tenements are in good standing and no known obstacle exists.

Exploration done

by other parties

Acknowledgment and appraisal of exploration by other parties.

Thailand

Past work in the Siam project area has included -80# stream sediment sampling carried out by the Department of Mineral Resources of Thailand (DMR) and made available to explorers. Other work includes a helicopter borne combined

electromagnetic and magnetic survey carried out mostly on EW lines nominally

400m apart.

Criteria

JORC Code explanation

Commentary

Geology

 Deposit type, geological setting and style of mineralisation.

Thailand

The target is volcanic hosted copper mineralisation associated with widespread altered boulders, in some cases containing visible Cu mineralisation. The project area is part of an arcuate paleo - island arc terrane which is more than 600km long and oriented approximately north - south. This terrane extends from Ko Chang Island on the Cambodian border in the south to the Laos border beyond Loei in the north.

The geological character of this belt results from subduction of oceanic crust towards the east beneath the Indo - Sinian plate during the Permian and early

Triassic periods through to the Tertiary. Volcanic rocks, comprising mostly andesites in the project area, were deposited in early Triassic times over

extensive Permian aged shelf limestones.

Drill hole

Information

A summary of all information material to the understanding of the exploration

results including a tabulation of the following information for all Material drill holes:

easting and northing of the drill hole collar

elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

dip and azimuth of the hole

down hole length and interception depth hole length.

If the exclusion of this information is justified on the basis that the information

is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

Data aggregation

methods

In reporting Exploration Results, weighting averaging techniques, maximum

and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

Data aggregation

methods

Where aggregate intercepts incorporate short lengths of high grade results

and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

Data aggregation

methods

The assumptions used for any reporting of metal equivalent values should be

clearly stated.

Relationship

between mineralisation

These relationships are particularly important in the reporting of Exploration

Results.

If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

Criteria

JORC Code explanation

Commentary

widths and

intercept lengths

If it is not known and only the down hole lengths are reported, there should be

a clear statement to this effect (eg 'down hole length, true width not known').

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 substantive

exploration data

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

All related exploration information are included in the main body of the report

Further work

The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this

information is not commercially sensitive.

Included in the main body of the report.

ALSCODE

OESCRIPTION

INSTRUMENT

Au- AA26

Ore Crade Au 50g FA AA fìnish

AAS

ME- OG62

Ore Grade Elements - Four Acid

ICP- AES

ME-ICP61

33 element four acid ICP- AES

ICP- AES

AçJ-0G62

Cu· OG62

Ore Crade A!! - Four Acid

Ore Grade Cu • Four Acid

VARIABLE VARAI BLE

PGM· ICP23

Pt, Pd, Au 30!! FA ICP

ICP·AES

ME-ICP61

ME-ICP61

Cu

Ag

ppm

ppm

>10000

>100

ME-OG62

ME-OG62

Cu

Ag

%

ppm

>40

123

ME-CON02

Cu

%

45