Copper Production

to Commence

Disclaimer & forward looking statement

The material used is this presentation is intended to be a summary of selected geological data, current and proposed activities, as well as resource estimates based on information available to Matrix at the time. It does not include all available information and should not be used in isolation as a basis to invest in Matrix. Any potential investors should refer to Matrix Metals Limited ASX releases and statutory reports before considering investing in the company.

The presentation includes information relating to a feasibility study which is in progress and includes “forward looking statements’ which include, without limitation, estimates of potential copper production based on mineral resources that are currently being evaluated. While the Company has reasonable basis on which to express these estimates, any forward looking statement is subject to risk. Risks include, without limitation: copper metal prices, foreign exchange rate movements, project funding capacity, copper product offtake contracts and estimates of future capital and operating costs. The Company does not undertake to release publicly any revisions to forward looking statements included in this presentation to reflect events or results after the date of this presentation, except as may be required under applicable securities laws.

Company Overview

Share on issue (ASX : MRX)Market Cap. at 6.5cpsCash on hand

661.6m *$43.0m*$9m *

Independence GroupInstitutionsGlencoreTop 20 holding

18.9%18%6.3%>50%

Board of Directors

* Assumes settlement of Glencore transaction, which is subject to certain legal due diligence

David Humann ChairmanAndrew Chapman

Managing Director

Shane McBride CFO & Com SecGeoff Jones Non Executive

DirectorClive Donner Non Executive

DirectorGlencore Representative

To be appointed

Capital Structure

Shareholders

Copper production at Mt Cuthbert commences by Q3 2007

Project funding in place, predominately from Glencore International AG

Development work has commenced

Matrix 100% unhedged and exposed to record copper prices

Matrix primary copper sulphide and copper oxide exploration programs have commenced this quarter

Xstrata Copper commencing primary copper sulphide drilling program in early 2007

Deep Yellow commencing uranium drilling program in November 2006

Investment Overview

All activities encompassed by the current project scope and future growth activities will be referred to as:

Leichhardt

Leichhardt includes :

The Mt Cuthbert Processing Facility

The Mt Watson Deposit

and all other tenements in the area north of the Mt Isa/Cloncurry road in North West Queensland.

Project Title

Mt Cuthbert operations to treat Mt Watson oreApprovals, Licences and Native Title agreement in place 4-5 year Stage One mine lifeLow start up capital requirement $10mStage One utilising Mt Watson mining inventory of 2.1Mt @ 1.2 % Cu of the existing 8 Mt resourceStage One production of 5,500tpa of copper cathodeMining to commence in H1 2007Copper production by Q3 2007Development, $15m, fully funded by Glencore ($2.5m equity + $10m loan) and major shareholdersMt Watson mining inventory characterised by surface exposure and very favourable metallurgy

Leichhardt Stage 1

SX/EW Processing Plant 5,500tpa copper cathode capacityPower Station, camp, office complex, laboratory, warehouse, acid and fuel storage + roads etcPlant & infrastructure on care and maintenance and in good orderReplacement value in excess of $40m (and long lead time)Start up capital works required to plant and infrastructure for production:

– Build haul road to Mt Watson– Upgrade village– General maintenance and refurbishment to plant and power station– Earthworks in leach pad area and stormwater dam area– Geotechnical drilling at Mt Watson

Mt Cuthbert Plant & Infrastructure

Mt Cuthbert SX/EW Production Facility

Stage One Economics

Assumes Westpac’s copper forward curves and forex forward curves

Backwardation Curve

Spot Price

Nameplate Production Rate 5,500 tpa Cu 5,500 tpa Cu

Initial Project Life 4 yrs 4 yrs

Operating Costs per lb USD$ 1.59 USD $1.59

Total Revenue AUD$ 163m AUD$ 200m

EBIT AUD$ 52m AUD$ 88m

Project NPV @8% Discount Rate

AUD$ 41m AUD$ 70m

IRR 147% 207%

LME Copper Stock and Prices

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176 % increase in LME copper price since 1990’s

55% increase in LME copper price in the past 12 months

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Copper Price & Stocks

Short time frame to production allows Matrix to participate in the current strong copper price cycle

Source: IRESS October 2006

Source: IRESS October 2006

Upgrade Plant capacity from 5,500tpa to 10,000tpa of copper cathodeUtilising EW equipment already owned by MatrixPlant upgrade capital estimated at less than $5mStage One development utilises only 2.1Mt @ 1.2% Cu of the existing Mt Watson resource of 8Mt @ 1% CuAdditional ore feed from anticipated growth at Mt Watson and other existing deposits

Leichhardt Stage 2

Leichhardt Regional Exploration

• Resource Width & Grade Intersections at Earl, Tewinga, Mt Wonder and Boomerang

• Ongoing potential at Mt Watson and Mt Cuthbert• Proven Primary Sulphide Potential

Xstrata Smelter upgrades and explorationCuDeco discoverySummit and Paladin Uranium explorationXstrata Copper / Matrix copper sulphide JVDeep Yellow / Matrix Uranium JVCopperCo project developmentUniversal Resources Roseby ProjectExco Resources Production Plans

Regional Activity

Xstrata and Matrix entered into a JV for primary copper sulphide exploration in September 2006Covers the McCabe ML and surrounding EPM

Xstrata Copper spend $5m to earn 51%, then a further $10m or completion of BFS to earn 75%Field work underway, geophysics (IP), mapping, samplingDrilling to commence at McCabe in February 07

Xstrata Joint VenturePrimary Sulphide Exploration

Matrix Primary Sulphide Exploration

• Regional Exploration Program commenced in 2005

• A host of new oxide copper, primary sulphide copper, copper/gold, gold only and uranium prospects identified

• Drilling now underway at three prospects: Sierra, Chopper Ridge and Greenmount Deeps

• Program will recommence in early 2007, including recommencement of work at Mt Watson, both on oxide and sulphide targets

Deep Yellow JVUranium Exploration

Historical Uranium Producing Region ~ Mary Kathleen and Summit ProjectDYL selected as partner from competitive processDeep Yellow and Matrix entered into a JV for uranium exploration in February 2006DYL earning 80% with buy out provision for last 20%Commenced field work in mid 2006, with immediate successDYL drilling at “Lochness” to commence next week

Copper production to commence at Leichhardt by Q3 2007Glencore funding package Low capital, short lead time with little development riskProduction profile to growMatrix 100% unhedged and exposed to record copper pricesMatrix copper sulphide and oxide exploration programs ongoingXstrata Copper sulphide exploration fieldwork underway during February 07Deep Yellow uranium exploration program to commence next week

Summary