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Embarks on Significant Growth Program


    HOMEX - Perth

    Matrix Metals Limited today lodged a prospectus for a 2 for 1
    renounceable pro rata offer to shareholders of 183,394,054 shares at
    an issue price of 4.5 cents per share, to raise in excess of $8
    million (the "Issue"). The Issue is fully underwritten by Hartleys
    Limited. Summo Minerals Corporation, the Company's major shareholder
    will, following the Issue, convert its $3.25 million loan to Matrix
    into equity at a conversion price of 16 cents per share, leaving the
    Company debt free. Summo will also subscribe $3 million pursuant to
    the Issue.

    While Matrix has proven its ability to produce premium quality copper
    cathode from its Mt Cuthbert Operation, the project's relatively
    limited economy of scale, combined with the weak copper price, has
    resulted in the achievement of limited operational returns. Matrix
    has had to service significant debt and accordingly has had minimal
    funds to apply towards exploration and development activities.

    Matrix is delighted to announce that following the Issue it will
    commence an extensive and principally brownfields exploration program
    aimed at substantially increasing its oxide copper resources at Mt
    Watson and at other known copper deposits in the region. Achieving
    the resultant increase in resource inventory, and a simultaneous
    upgrade of the Mt Cuthbert plant, will allow the Company to
    significantly enhance the project's economics, targeting a profitable
    and sustainable long-term copper production profile.

    It is also intended that the funds raised will be applied to
    exploration and pre-development activities including finalising the
    feasibility study at the Company's White Range Project at a copper
    cathode production capacity greater than previously envisaged.

    Matrix's copper reserves are unhedged, and the Company is well
    positioned to take advantage of the anticipated upturn in the world
    copper price.

    Summo CEO Greg Hahn said today "Our initial investment in Matrix was
    based on our view that the Company had outstanding production
    capability and tremendous potential for growing its copper resources.
    Since that time our vision has been confirmed. We believe that Matrix
    will move to become a very significant mid-tier producer of copper

    Full details of the Issue are presented in the Prospectus, which will
    be dispatched to Shareholders on 6 August 2002.

    A Chapman

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