MATSA RESOURCES LIMITED — Capital/Financing Update 2005

Apr 14, 2005

8 April 2005

Mr Nicholas Ong Australian Stock Exchange Limited Exchange Plaza 2 The Esplanade PERTH WA 6000

Dear Mr One

The Directors of Kalgoorlie-Boulder Resources Ltd are pleased to confirm that the Company has completed the acquisition of all initial interests as detailed in the Company's Prospectus ('Prospectus') dated 22 February 2005 and further detailed below. The Company is pleased to confirm that all payments for the acquisitions have been made and all shares and options in relation to the acquisitions have been issued and allotted.

Kalgoorlie-Boulder Resources Ltd has completed the acquisition of:

• (1) a 100% interest in the assets including gold rights, mining tenements and tenement applications including the Tenements and Tenement Applications listed on page 111 of the Prospectus and available information relevant to exploration, development and mining in respect of those gold rights, tenements and tenement applications by payment of:
• (a) $$300,000$ ; and
• (b) the issue of 5,000,000 ordinary shares at 20 cents per share; and
• (c) the issue of 5,000,000 options exercisable at the lower of 20 cents or the average closing price on the ASX for the Company's shares over the previous 7 trading days on or before 31 July 2008 (the 'Allen Agreement').
• (2) a 100% interest in Exploration Licences E16/258 and E16/259 by payment of \$2,300 and the issue of 75,000 ordinary shares at 20 cents per share (the 'Robinson Agreement').
• (3) a 100% interest in Mining Leases M15/1341 and M15/1359 by payment of \$42,500 and the issue of 75,000 ordinary shares at 20 cents per share (the 'Miles Agreement').
• $(4)$ a 100% interest in Mining Leases M15/1357 and M15/1358 by payment of \$57,000 (the 'Djekic/Vorster Agreement').
• (5) a 100% interest in Prosecting Licences P25/1689 and P25/1707 by payment of \$100,000 and the issue of 625,000 ordinary shares at 20 cents per share (the 'Fleetdale Option Agreement').

Sincerely

'John Coles Company Secretary

Level 2,45 Ventnor Avenue West Perth WA 6005 P: 9429 8842 F: 9429 8800 E: admin@kbrl.com.au