*****beauty****

ABN 42 082 593 235
Electronic delivery
No of pages: 8
ANNOUNCEMENT
Primary Sulphide Copper Intersection
at Mt Watson and Capital Raising
Summary
Matrix Metals Limited is delighted to announce the following:
• A primary sulphide copper drill hole intersection of high grade
chalcopyrite and chalcocite has been reported at Mt Watson. The drill
hole, MWRC 130, reported an intercept of 20m @ 3.03% Cu from
163m including 8m @ 4.89% Cu from 175m. Intersecting this
primary mineralisation, particularly at this high grade, greatly
exceeded expectations.
The drill hole was terminated in high grade mineralisation due to the
depth capacity of the drill rig being reached. This resource grade and
width primary copper mineralisation indicates that a sulphide copper
resource may be defined at Mt Watson.
• Further success has been recorded in the ongoing oxide copper
drilling program at Mt Watson.
• Matrix has reached in-principle agreement with Hartleys Limited
(“Hartleys”) to place $15 million to its international and domestic
institutional clients. The Company will also undertake a Shareholder
Purchase Plan for up to $5000 per shareholder, to all shareholders
registered with Matrix’s share registry as at Thursday 8 April 2004.
• The funds raised will be applied to expanded drilling programs in the
Mt Watson region, increased exploration at the White Range project
area and to proceed with a exploration program to assess the primary
sulphide potential over the Company’s Mt Isa inlier tenement holding.
Primary Sulphide Intercept
Drill hole MWRC130, in which the primary sulphide mineralisation has been
intercepted, is located in the Western Zone of the Mt Watson deposit and was
collared to intercept mineralisation 50m to 70m down dip of the previously
reported intersection of 70 metres @ 1.34% copper. The drill hole intersected
significantly higher grade chalcopyrite and chalcocite mineralisation in the target
area.
The drill hole was terminated in the high grade mineralisation at 183m due to
the depth capacity of the drill rig being reached. Drilling equipment appropriate
for further testing the mineralisation will be mobilised to site as soon as
practicable.
The partially complete intersection is highly significant as it is the first intercept
reporting primary sulphide copper mineralisation of grades and width which
indicate that a primary sulphide copper resource may be defined at Mt Watson.