MATSA RESOURCES LIMITED — Capital/Financing Update 2006

Dec 14, 2006

ASX PERTH

ASX Circular

Date: 15 December, 2006

Key topics

• 1. Kalgoorile-Boulder Resources Limited
• 1. Recrgenisation of Capital
• 1. Consolidation
• 1. ASX Code: KAL

Reading List

Client Advisers Compliance Managers Corporate Advisory DTR Operators Íssuers Institutions ASTC Participants Operations Managers (back office) Research Analysts Share Registries ACH Perticipants Morket Participants

Contact

Elizabeth Harris

Telephone

(06) 9224 0000

ASX Limited ABN 98 008 824 691 Exchange Centre 20 Bridge Street Sydney NSW 2000 FO Box H221 Australia Square NSW 1215

Internet: http://www.asx.com.au

No responsibility is accepted for any inaccuracies contained in the matter published.

Kal2006.12.14bc-emh

KALGOORLIE-BOULDER RESOURCES LIMITED -REORGANISATION OF CAPITAL

Participating Organisations are advised that the reorganisation of capital of Kalgoorlie-Boulder Resources Limited (the "Company") will become effective on 19 December 2006.

The return of capital is by way of an in specie distribution of shares in Burey Gold Limited ("Burey Gold").

Shareholders will receive approximately 3.5 Burey Gold shares for every 10 shares they hold in the Company.

Options will be similarly reconstructed. The exercise price for the quoted options (ASX Code: KALO) will be reduced, the exact amount will be determined if the in specie proceeds.

Fractions will be rounded down.

The following timetable will apply.

15 December 2006	Shareholder approval,
19 December 2006	Trading in securities commences on an "ex return of capital" basis. ASX Code: KAL
27 December 2006	Record date for identifying shareholders entitles to participate in the return of capital.
To be advised	Despatch date for Burey Gold shares to be made at a date to be determined by the Directors in their absolute discretion