Matthews was travelling home via bus with his team yesterday after the 52-8 loss to Canterbury in Christchurch.
"They're in good spirits. I thought they competed very well," he told the Otago Daily Times.
"You never know how it will go. We wanted to win the shield but I guess that was always going to be a huge ask.
"It's about playing with pride and I thought all the players tried their best."
North Otago's bunch of amateurs competed valiantly with the bigger, faster Canterbury team for chunks of the game.
Matthews was pleased with the overall effort but wanted his players to build a better base of fitness so they could maintain intensity for a full game.
"We did compete for long periods and if we were fitter, we possibly could have done even better. Fatigue tends to set in when we get to the last seven or eight minutes of the half, and that's when guys get a bit lazy."
He said North Otago had done some intense work on the breakdown after being badly exposed by Otago the previous week. That had paid off, with the smaller union snaffling its share of turnover ball at Rugby Park.
It might not have won, but North Otago created the memorable moment of the game when burly captain Ralph Darling stopped flying Canterbury winger Telusa Veainu with a copybook tackle.
"Ralph was seagulling at the back. He actually tripped over his own feet and fell into touch," Matthews joked.
"No, it was outstanding. It goes to show if you defend in the right place and keep your feet, you can take anybody down."
North Otago has no more scheduled pre-season games but will have an internal trial, and Matthews is also hoping to arrange a run against a mixed team in Dunedin on July 27.
Then it will be back to Dunedin for the big opening game against West Coast at Forsyth Barr Stadium on Sunday, August 7.
"That's going to be brilliant. It's a big thrill for the boys to get that first game," Matthews said.