MATSA RESOURCES LIMITED — Capital/Financing Update 2006

Mar 6, 2006

KALGOORLIE-BOULDER RESOURCES LTD ABN 48 106 732 487

7 March 2006

Release to ASX

ASX Code: KAL

DRILLING COMMENCES IN OKLAHOMA

The Directors of Kalgoorlie-Boulder Resources Limited are pleased to announce that the Wilson #3-10 well has been spudded and is expected to reach its proposed total depth of approximately 3,200 feet within 10 days.

In October 2005. Kalgoorlie-Boulder entered into an agreement which, subject to its completion, will see it acquire a 75% Working Interest in oil and gas leases covering 640 acres in Okmulgee County, Oklahoma, in the United States (the Wilson Prospect).

Kalgoorlie-Boulder is free carried for the initial drilling and re-work program to be completed at the Wilson Prospect.

This program includes the following:

• 1. Drill, complete and tie-in the Wilson #3-10 well to spud into the top of the Wilcox sandstone oil column to facilitate potential oil and gas production.
• 1. Clean out, treat, and properly equip the existing Wilson #1-10 well, to enable potential resumption of production from the Gilcrease sandstone.
• 1. Permit, clean out, and properly equip the existing Wilson #2 well, for conversion to a saltwater disposal well for the prospect.
• 1. Install the appropriate infrastructure to produce, store, and market hydrocarbons and facilitate the disposal of saltwater and install a natural gas gathering system to transfer natural gas from the tank battery system to the nearest natural gas sales point.

Drilling of the Wilson #3-10 is the first phase of this drilling and re-working program.

Should you have any queries regarding this announcement or any aspect of the company's development please contact the undersigned.

Trevor Matthews Managing Director

For further information please contact : Trevor Matthews, Kalgoorlie-Boulder Resources Ltd, Tel: (08) 9228 9742 Kalgoorlie-Boulder website: www.kbrl.com.au

48 Lake Street, Northbridge WA 6003 PO Box 312, Northbridge WA 6865 Tel: 08 9228 9742 Fax: 08 9228 8685 admin@kbrl.com.au www.kalgoorlieboulderres.com.au