INTERVIEW WITH MR. SHANE MCBRIDE, MANAGING DIRECTOR OF MATRIX METALS LIMITED (MRX)

“Company Update”

http://www.brr.com.au/event/51645

FRIDAY, SEPTEMBER 19, 2008, 1:00 PM.

            BRR    Good afternoon and welcome to Boardroom Radio. Today, we’re speaking with Shane McBride, Managing Director of Matrix Metals. Thanks for joining

10                    us today, Shane.

            MRX    Good afternoon, Eddie and good afternoon, listeners.

            BRR    Shane, Matrix Metal has earlier in this week announced the significant development at its Leichhardt Project Plan. Can you update the listeners on

15                    what this has been and what has been involved?

            MRX    Yes, Eddie. This is… we’re in the progression of the company. This is truly a milestone asset in that we have now commissioned the expanded processing plant that we have at our Leichhardt operation in Northwest Queensland. You know it’s a period of nearly fifteen months that we’ve been going through

20                    originally starting the processing plant up optimizing it to its original operating level rate of 5,500 tonnes per annum. Effectively, for the last nine months we have been going through the extended phase to take it from the 5,500 up to a 9,000-tonne processing facility. So this is now the first time, as I said in nearly 15 months that things are at the steady state stable situation from an

25                    operating point of view and that there is no more construction activities happening on site. It now opens up the opportunity for us to further optimize the day-to-day operating parameters of the project and generally streamline the activities that are happening. So, we’re very excited that this milestone has been reached and we believe that effectively things will already be

30                    progressing on well from this point in time. The 9,000-tonne production rate has now optimized the (inaudible) (00:01:41) which is the main electrical item within the processing plants so that is now…. we’re going to operate in its maximum capacity and we’re very encouraged by how that will proceed.

35                    In addition to the normal expansion size that we’ve completed, we’ve also taken the opportunity to improve some of the leaching lining systems and that is something that shouldn’t have a need to be replaced again but it will now optimize just the leached pad operations, so the stage before the actual processing plant. Again, that was another improvement in optimization that

40                    we believe will set the plant up for further ongoing operations for the standard rate. So basically, that’s we’ve achieved over the last 15 months. We’re very encouraged by that and I’m looking forward to moving on with it.

            BRR    What impact, Shane, has these developments had on the processing plant

45                    and also Matrix Metals?

            MRX    Yes, well the impact is that, as I mentioned just earlier, it has optimized the operation. It has improve some of the items that require improving in terms of getting efficiencies out of the operation and also taking it for 5,500 tonnes up to 9,000 tonnes per annum increases the economy of scale of the project and that has a significant effect on the process itself, and then by association that helps the company and that now we can concentrate on moving forward.  It will provide us with a strong base to enable us to generate further funds and move forward on our exploration activities in what is a world class base

5                      metals area of Northwest Queensland.

            BRR    Shane, what progress has been made on the Mt. Watson Stage 2 extension?

            MRX    Yes Eddie, the Stage 2 extension is to add additional mine life to the project and basically we’re at it at the moment. We are still completing metallurgical

10                    test work on the ore. That information is expected to be available to the company in the next month or so. By the end of this calendar year, we would expect to be able to come out with a new reserve calculation for the overall Mt. Watson pit, and this is just one orebody that we have, one large orebody, and that will provide us with significant number of years increase in the life of

15                    the project. The metallurgical test work is nearing its end and these things do take quite of awhile, sometimes up to six months to do the test work, and it is nearing its end. That will add the significant life addition to the processing plant and again, continue the project going forward.

20        BRR    Lastly Shane, touch on Matrix Metals other exploration activities. The Uranium Joint Venture with Deep Yellow in Northwest Queensland and the copper exploration at the prospect area, how are these activities progressing?

            MRX    As I’ve mentioned earlier on, I mean we are in a blue class base metals area and we have ground position of over 3,400 sq km in the Mr. Isa area.  We

25                    have it in two different areas, one called the Leichhardt tenement position and the other one is the Cloncurry tenement area, and we continue general exploration activities on all of those areas and looking for prospective ground. Out of that, we have highlighted in recent periods of time on the prospect area. Prospect to area is iron oxide, copper, gold, so it’s not just copper as we

30                    have at Mt. Watson. It’s potentially our far bigger sulphide orebody but that’s….I mean, in a very early exploration phase at the moment. We’ve completed some drilling on it early on in year. We’ve completed some further geophysical test work on the area and that information is still being analysed and optimized at this point in time, but we’re very excited about the prospect

35                    of the area. For one, to potentially had oxide material to our Leichhardt Project, but more because of the bigger sulphide potential with the iron oxide, copper, gold. So, we will continue to look on the rest of our tenement areas as well for further areas of it. Also, we’re in joint venture with Deep Yellow and that joint venture was purely for uranium on our ground position. Deep

40                    Yellow has been conducting a significant amount of exploration over the last 12 months and they’re earning into completing a farming into a joint venture with us. The expenditure today requires us $3 million and that needs to be expended by the end of February of 2009. So they’ve been very active in over recent months have announced very encouraging uranium results and they

45                    will be continuing to drill for the remainder of this calendar year or during this calendar year. Again, it’s very exciting. We’ve got a producing plant going, we’re in a prime area, and we have quite significant exploration activities to add to the life of the company and to the projects all on the line.

            BRR    Shane, we certainly do thank you for your time today and the update on Matrix Metal and we look forward to speaking to you soon.

            MRX    Thank you very much, Eddie.

5          BRR    That was Shane McBride, Managing Director of Matrix Metals, and if you have any questions about this broadcast or any other broadcast, please feel free to contact us on brr@brr.com.au.

                        I’m Eddie Saade and thank you for listening to Boardroom Radio.

INTERVIEW CONCLUDED

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