MATSA RESOURCES LIMITED — Capital/Financing Update 2006

Jun 12, 2006

KALGOORLIE-BOULDER RESOURCES LTD ABN 48 106 732 487

STOCK EXCHANGE ANNOUNCEMENT

\$1 MILLION SHARE PLACEMENT

12 June 2006

The Directors of Kalgoorlie-Boulder Resources Limited are pleased to announce that the placement of 5 million fully paid ordinary shares at \$0.20 per share through Delta Capital has been completed. The placement raised \$1 million before placement expenses and was placed with institutions and other professional and sophisticated investors under section 708 of the Corporations Act.

The placement was made with, subject to shareholder approval, one free attaching option to acquire one fully paid ordinary share in Kalgoorlie-Boulder Resources Limited for \$0.20 on or before 31 July 2008 for each two shares applied for and issued under the placement.

The purpose of the placement is provide working capital in the lead up to the development of the Company's Jackpot mine.

For further information please contact:

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