MATSA RESOURCES LIMITED — Capital/Financing Update 2005

Dec 21, 2005

KALGOORLIE-BOULDER RESOURCES LTD ABN 48 106 732 487

22 December 2005

Release to ASX

ASX Code: KAL

Acquisition of Tenements Adjoining Broad Arrow Project

Kalgoorlie-Boulder Resources Ltd (ASX Code: KAL) has entered into an agreement to acquire Prospecting Licences 24/3979 to 24/3998. Consideration for the acquisition consists of \$85,000 in cash, which has been paid, and the issue of 375,000 fully paid ordinary shares to the vendors on 21 April 2006.

These tenements adjoin the Company's Broad Arrow Project which is located 38km north of Kalgoorlie and 4km east of the historic gold mining centre of Broad Arrow. The acquisition of these tenements is a strategic investment and adds significantly to the potential of the Company's Broad Arrow Project. The 20 tenements have more than doubled the project area to almost 6,000Ha. Importantly the acquisition contains a range of prospects ranging from advanced exploration stage to untested gold in soil anomalies.

Geologically the tenements lie within graintoid lithologies of the Scotia-Kanowna dome in an area that was explored by AMX Resources in the period 1997-1999. The then named Golden Cities project was the subject of a bankable feasibility study centred on the Havana Suva ore body 2km north of the tenements. Havana Suva was estimated to contain a resource of 10Mt at a grade of 2.2 g/t Au at a cut off grade of 0.8 g/t Au. AMX curtailed activities at Golden Cities due to a declining gold price and the ore body was eventually mined by Auriongold (now Placer Dome Asia Pacific) in the period 2001-2002.

Exploration by AMX in the same period also delineated a number of prospects located within a similar geological setting to the Havana Suva.

London

At the London prospect, 5km south of Havana Suva, gold mineralisation occurs over an area of 350m by 600m. Drilling comprises 34 reverse circulation drill holes, and 4 diamond core holes into a system of en-echelon quartz veins in a pyrite altered granite. Better results reported by AMX are:

Hole	North	East	DEPTH /INTERSECTION
Number	(metres)	(metres)	(metres) (m $@$ g/t Au)
98LNRC018	6629190	347000	49m 2m @ 5.7 g/t
98LNRC022	6629090	347100	30m 7m @ 1.5 g/t
98LNRC025	6629080	347150	42m 6m @ 1.9 g/t
			54m 7m @ 5.7 g/t
98LNRC026	6629130	347100	41m 6m @ 9.1 g/t
			59m 3m @ 9.3 g/t

The Company will review the results of drilling at the London prospect and undertake geological modelling and resource studies.

Karachi

The Karachi gold in soil anomaly covers an area of 800m by 800m and has been investigated by open hole (RAB) drilling (107 holes for 4,952m) and reverse circulation drilling (17 holes for 2,101m). The drilling has produced anomalous (>1 g/t Au) values associated with haematite-sericite-pyrite altered granite.

Munich

The prospect was initially delineated by anomalous gold in soil and a combination of structural and magnetic targets. RAB drilling comprises 189 holes completed in two phases with several holes returning anomous gold mineralisation which correlate with the peaks of the soil anomaly.

Madrid

The Madrid prospect is situated 1km to the southwest of the London prospect and is outlined by a 700m by 300m gold in soil anomaly that has been partially tested by a single line of RAB drilling. Surface anomalism has been confirmed at depth with mineralisation associated with quartz veins in granitic saprolite.

Rome

The northwesterly trending Rome gold in soil anomaly covers an area of 800m by 500m with a peak value of 105ppb gold. The zone was defined by hand auger drilling and remains to be tested at depth

Berlin

The prospect lies 5km south east of Havana Suva under cover of up to 10m of ferruginous lateritic alluvium and is associated with NW trending magnetic anomaly. A single drill traverse did not produce any significant assay results.

The enlarged Broad Arrow Project contains mineralisation in several distinct geological settings and the acquisition presents walk up targets similar in style to the now mined Havana Suva deposits on the northern tenement boundary. The Company is confidant that the project contains mineralisation that can be developed through to production in area that is favourably located for treatment options.

Yours sincerely

Trevor Matthews Managing Director

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Lindsay Cahill, who is a Member of The Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Lindsay Cahill is a self employed consultant. Lindsay Cahill has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Lindsay Cahill consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Broad Arrow Project - Acquisition of Tenements