MATSA RESOURCES LIMITED — Capital/Financing Update 2006

Jul 17, 2006

LOUISIANA PETROLEUM UNITED AND THE STATE WAY TO BE ON THE UNITED

Louisiana Petroleum Limited ACN 109 059 181

Address Level 25 Exchange Plaza 2 The Esplanade Perth WA 6000

Postal Address PO Box 75460 St Georges Terrace Perth WA 6831

Contact Detailss Telephone +61 8 9223 9844 Facsimile +61 8 9267 4202 www.louisianapetroleum.com.au

Manager Announcements Company Announcements Office Australian Stock Exchange Limited 4^th Floor, 20 Bridge Street Sydney NSW 2000

Dear Sir.

WILSON ACQUISITION UPDATE

The directors of Louisiana Petroleum Limited (the "Company" or "Louisiana") wish to advise that Metro Energy Group Inc. has today notified Louisiana that the agreement for Louisiana to purchase a 25% Working Interest in the Wilson Prospect, as announced to ASX on 3 April 2006, has been terminated.

The acquisition of the remaining 75% Working Interest in the Wilson Prospect, beneficially owned by Kalgoorlie-Boulder Resources Limited ("KBRL" ASX Code KAL) and announced to ASX on 2 May 2006, was conditional (amongst other things) upon the acquisition of the 25% Working Interest held by Metro Energy Group Inc. The Company and KBRL have agreed to waive this condition to enable the acquisition of the 75% Working Interest to proceed. As a result of the change in circumstances, the Company will send supplemental information to its shareholders in relation to the proposed acquisition and adjourn its shareholder meeting scheduled for Monday 24 July 2006 to a date to be determined. This will ensure shareholders have a reasonable opportunity to consider the change in the circumstances of the proposed acquisition.

Yours faithfully,

Mathew Walker Executive Director

For further information please contact: Mathew Walker, Louisiana Petroleum Limited, Tel: (08) 9223 9844 Louisiana Petroleum website: www.louisianapetroleum.com.au