MATSA RESOURCES LIMITED — Capital/Financing Update 2006

Aug 8, 2006

KALGOORLIE-BOULDER RESOURCES LTD ABN 48 106 732 487

ASX ANNOUNCEMENT

ASX Code: KAL, KALO

9 August 2006

FIRST GOLD PRODUCTION FROM JACKPOT GOLD MINE

The Directors of Kalgoorlie-Boulder Resources Limited are pleased to announce the first gold production from it's Jackpot Gold Mine with a first gold pour completed earlier today at the Greenfields Mill near Coolgardie.

First production is an important milestone in any resource company's life and to achieve this within 16 months from listing on the ASX is a significant achievement. We are pleased to join the ranks of gold producers at a time of strong gold prices. With the Company's portfolio of gold and base metals assets continually improving as we build our knowledge and look at other opportunities the future of the Company looks very positive.

This initial gold pour is the product of the first of three milling campaigns at the Greenfields Mill near Coolgardie with the campaign scheduled to be completed in October 2006. Going forward, we intend to use the cashflows from the mine to develop the company's other gold and base metals assets. Specifically, on completion of the initial open pit mine at Jackpot, we will be in a position to properly evaluate the deep higher grade Inferred mineralisation at the Jackpot project for a possible larger scale open pit or underground operation.

For further information please contact:

Trevor Matthews Managing Director Kalgoorlie-Boulder Resources Ltd Tel: (08) 9228 9742