MATSA RESOURCES LIMITED — Capital/Financing Update 2007

Feb 7, 2007

KALGOORLIE-ROLILDER RESOURCES LTD ABN 48 106 732 487

ASX ANNOUNCEMENT

ASX Code: KAL, KALO

8 February 2007

Norseman Project Valued at A\$29M.

The Directors of Kalgoorlie-Boulder Resources Limited ("Kalgoorlie-Boulder Resources" or "the Company") engaged an Independent Expert (BDO Consultants (WA) Pty Limited) to express an opinion at to whether the proposal to purchase the Norseman Project is fair and reasonable.

The Independent Expert concluded that the proposed transaction is both fair and reasonable and placed a range for the value of the Company's shares post the completion of the proposed transaction at between \$0.186 and \$0.354.

In addition, the Independent Expert engaged Independent Specialist (RSG Global) who determined a technical value for the Norseman Project. RSG Global selected a provisional valuation for the Norseman Project of between A\$23.12M and A\$49.88M. with a preferred provisional value of A\$29.17M.

RSG Global reported total inferred mineral resources for the Norseman project of 29.047M tonnes at 1.3 g/t for 1.2Mozs (at a 0.7 g/t cut-off) ("the Global Resource") (see attached schedules).

The Company (as part of its due diligence) conducted a high level initial scoping study on the project. This study shows that a large portion of the Global Resource could be economically exploited in large scale open pits and conventional Carbon in Pulp process plant. The potential mine life could be up to seven years and the project could produce revenues in excess of A\$550M.

This scoping study was based on the Global Resource and accordingly the confidence of the material contained in this Inferred Resource is not sufficient to apply detailed technical and economic parameters that would be used for detailed planning or feasibility study purposes.

The company will commence both infill and step out resource definition drilling to improve these Inferred mineral resources to JORC compliant Indicated and Measured resources. This work will allow the company to complete a Pre Feasibility study which will determine the full extent of the projects potential.

In addition, the company's due diligence has identified significant potential for further discoveries within the tenement package.

The proposed acquisition of the Norseman Project is subject to shareholder approval (and the settlement of the transaction announced to the ASX on 8 December 2006). The acquisition will be considered at a General Meeting of Shareholders to be held on 6 March 2007. A Notice of Meeting and Explanatory Memorandum containing the report by the Independent Expert has been circulated to Shareholders.

Should you have any queries regarding this announcement please contact either David Prentice or myself.

Trevor Matthews Managing Director

Trevor Matthews Managing Director Kalgoorlie-Boulder Resources Ltd Tel: +61 8 9228 9742

David Prentice Director Kalgoorlie-Boulder Resources Ltd Tel: +61 8 9228 9742

The information in this report that relates to 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 Brevley consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The resource base for the four main mineralized zones in the Norseman project is as follows:

	Inferred Resource +0.7g/t Au
	Tonnage (Kt)	Au g/t	KOzs
Deposit
Mt Henry	12,480	1.4	566
Selene	15,550	1.2	624
North Scotia	481	2.6	40
Abbotshall	536	1.8	31
Total	29,047	1.3	1.261

	Inferred Resource +1.0g/t Au
Deposit	Tonnage (Kt)	Au g/t	KOzs
Mt Henry	8,642	1.70	472
Selene	9,625	1.50	464
North Scotia	325	3.40	36
Abbotshall	466	2.00	30
Total	19,058	1.64	1,002