Embarks on Significant Growth Program

MATRIX METALS LIMITED 2002-07-18 ASX-SIGNAL-G

HOMEX - Perth

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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
cathode".

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


A Chapman
CHIEF EXECUTIVE OFFICER