MATSA RESOURCES LIMITED — Capital/Financing Update 2007

Dec 16, 2007

KALGOORLIE-BOULDER RESOURCES LTD ABN 48 106 732 487

ASX Announcement

ASX Codes: KAL, KALO

17 December 2007

SELENE DEPOSIT RESOURCE INCREASED BY 53%

NORSEMAN RESOURCE TOTALS 1.4 MILLION OUNCES

• Selene Indicated and Inferred Resource increased by 53% to 720,000oz gold using a 1.0g/t cut-off (up from 470,000 oz).

• Includes Indicated Resource of 11.3Mt at 1.6gm/t for 580,000oz upgraded from Inferred level.

• Total Norseman Project Indicated and Inferred Resources to date of 25.8Mt at 1.7g/t for a total of 1.4 Million ounces of gold.

Kalgoorlie-Boulder Resources Limited (the “Company”) is pleased to announce a further significant increase in the total mineral resource base for its 100%owned Norseman Gold Project.

A resource upgrade at Selene has resulted in a total JORC compliant Indicated and Inferred Resource of 14.3 Mt at 1.6 grams per tonne for 720,000 ounces of gold. This includes for the first time a JORC compliant Indicated Resource of 580,000 ounces of gold. This combined Indicated and Inferred Resource represents an increase of 250,000 ounces or 53% over the previously published JORC Inferred Resource at the Selene Deposit.

Pleasingly both the tonnage and grade have increased from the previously reported resource of 9.6Mt at 1.5 g/t for 470,000 ounces at Selene.

Chairman Michael Atkins said “This latest resource upgrade at Selene follows the recently announced resource increase at Mt Henry, just 4 km to the north of Selene. The combined Norseman Gold Project now stands at 25.8Mt at 1.7g/t for 1.4million ounces of gold using a 1.0g/t cut-off. This is a remarkable 40% increase in resource since the Company commenced its resource drilling program in June 2007 after acquiring the project in March 2007. Importantly the resource now includes an Indicated Resource of 900,000 ounces, where none existed previously.”

This Selene resource increase is the result of the completion of 1,633 metres of RC drilling completed in October 2007. This drilling has improved the geological and grade continuity at Selene allowing the completion of an

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improved geological model and the elevation to a JORC compliant Indicated Resource. The specific gravity was also increased from 2.6 to 3.15 reflecting the testwork carried out on the Banded Iron Formation host rock.

This resource upgrade further demonstrates the robustness of the Selene resource and increases the economic potential of the project, as a whole. The Selene deposit is hosted in Banded Iron formation and dips gently at 20 degrees towards the West. With down hole intersections in excess of 40 metres in length, the low strip ratio and bulk nature of the ore body is expected to lend itself to very low cost open pit mining methods.

The Company is currently updating its Mt Henry resource to incorporate recent drilling, and is well advanced towards the completion of a Scoping Study for the Project in the first quarter of 2008. This resource upgrade will allow for the Scoping Study to be further developed, along with the process test-work scheduled for the early part of the New Year.

Total Norseman Project Resource

Prospect	Classification	Tonnes (Mt)	Gold Grade	(Koz)
MtHenry	Indicated	5.0	2.0	310
Selene	Indicated	11.3	1.6	580
Total	Indicated	16.4	1.7	900
MtHenry	Inferred	5.6	1.8	320
Selene	Inferred	3.0	1.4	140
NthScotia	Inferred	0.3	3.4	40
Abbottshall	Inferred	0.5	2.0	30
Total	Inferred	9.4	1.7	500
Grand Total	Ind & Inf	25.8	1.7	1.4 MillionOz

1) All resources are reported to a cutoff grade of 1.00gm/t. 2) Rounding, conforming to the JORC code may cause computational errors.

Selene Resource

Prospect	Classification	Tonnes (Mt)	Gold Grade	(koz)
Selene	Indicated	11.3	1.6	580
Selene	Inferred	3.0	1.4	140
Total Selene	Ind & Inf	14.3	1.6	720 Koz

Unit 10 Vosper House 31 – 33 Dugan St Kalgoorlie PO Box 10808, Kalgoorlie WA 6430 Tel: 08 90217 200 Fax: 08 90 217 277 admin@kbrl.com.au

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Break o’ Day, Telegraph and Everlasting Results

The company is also pleased to announce that the preliminary exploration of some under-explored targets have shown signs of gold mineralization. KBRL has completed a first pass drilling campaign over the Break o’ Day, Telegraph and Everlasting prospects.

Drilling was conducted by RC drilling, in areas of little previous drilling and sampled on a 4 metre composite sampling technique. Encouraging results have been received from all 3 prospects including 4m @ 2.98 g/t from Everlasting prospect, 4m @ 0.72 g/t from Break Of Day prospect and 8m @ 1.27 g/t and 8m @ 1.24 g/t from Telegraph BIF prospect.

“These are grass roots exploration results and need to be interpreted as such. The extent of any mineralization is still unknown. The composite samples now need to be re-assayed and followed up with further drilling at a later date,” Mr Atkins said.

A table of exploration results from these 3 prospect areas is attached below.

About Kalgoorlie-Boulder Resources

Kalgoorlie-Boulder Resources is an ASX-Listed minerals exploration company focused on its 100% owned Norseman Gold Project and its Clinker Hill Project NNW of Kambalda WA.

The Norseman Gold Project covers 124 square kilometres of the prolific South Norseman-Wiluna Greenstone belt of the Eastern Goldfields in Western Australia. Norseman is the southern most gold mining centre of the NorsemanWiluna gold belt which hosts an endowment of over 270 million ounces of gold. The Norseman region has been a major gold producer with production in excess of 6.1 million ounces of gold from 1935.

The Norseman Gold Project contains a number of mineral resources at the Mt Henry, Selene and Scotia deposits where there are currently indicated and inferred resources totalling 25.8Mt @ 1.7 g/t for 1.4M ounces of gold.

Kalgoorlie Boulder Resources is currently undertaking a Scoping study to evaluate the economic potential of the Norseman project, which includes the Newly updated resources at both Selene and Mt Henry. The Scoping study is due to be completed in the first Quarter of 2008, which will then lead to a PreFeasibility and then a Full Feasibility study.

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Richard Breyley, who is a member of the Australasian Institute of Mining and Metallurgy. Richard Breyley is a full time employee of Kalgoorlie Boulder Resources. Richard Breyley has sufficient experience which is relevant to the style of mineralisation and the type of ore deposit under consideration and the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves. Richard Breyley consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Unit 10 Vosper House 31 – 33 Dugan St Kalgoorlie PO Box 10808, Kalgoorlie WA 6430 Tel: 08 90217 200 Fax: 08 90 217 277 admin@kbrl.com.au www.kalgoorlieboulderres.com.au

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Selene Drillhole location plan and Drillhole Section 5040N.

Unit 10 Vosper House 31 – 33 Dugan St Kalgoorlie PO Box 10808, Kalgoorlie WA 6430 Tel: 08 90217 200 Fax: 08 90 217 277 admin@kbrl.com.au www.kalgoorlieboulderres.com.au

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Selene Drillhole sections 4680N and 5000N. (Recent Drilling with flags)

Unit 10 Vosper House 31 – 33 Dugan St Kalgoorlie PO Box 10808, Kalgoorlie WA 6430 Tel: 08 90217 200 Fax: 08 90 217 277 admin@kbrl.com.au www.kalgoorlieboulderres.com.au

Exploration results for Break o’ Day, Telegraph and Everlasting at Norseman project.

Hole Id	Intersection Width	Grade	Depth	Comments
7EVC085		No Significant assay
7EVC086	4m	2.98	52	Composite
7EVC088		No Significant assay
7EVC089		No Significant assay
7EVC090		No Significant assay
7EVC091		No Significant assay
7EVC092		No Significant assay
7EVC093		No Significant assay
7EVC094		No Significant assay
7EVC095	4m	0.97	16	Composite
7MLC003	4m	0.72	28	Composite
7MLC004		No Significant assay
7MLC006		No Significant assay
7MLC007		No Significant assay
7MLC008	4m	0.45	44	Composite
7MLC009		No Significant assay
7MLC010	4m	0.42	4	Composite
7MLC011		No Significant assay
7MLC012		No Significant assay
7TELC012		No Significant assay
7TELC013		No Significant assay
7TELC014	8m	1.24	12	Composite
7TELC015	8m	1.27	24	Composite
7TELC016		No Significant assay
7TELC017		No Significant assay
7TELC018		No Significant assay
7TELC019		No Significant assay
7TELC021		No Significant assay
7TELC022	4m	0.86	24	Composite

NB: Composite samples are 4 metre composite grades sampled with a “spear”. There can be significant differences between the reported and real assays of composite samples. The individual 1 metre samples will be sampled and assayed at a later date using appropriate sampling protocol.

Unit 10 Vosper House 31 – 33 Dugan St Kalgoorlie PO Box 10808, Kalgoorlie WA 6430 Tel: 08 90217 200 Fax: 08 90 217 277 admin@kbrl.com.au

www.kalgoorlieboulderres.com.au