MATSA RESOURCES LIMITED — Capital/Financing Update 2007

Jan 16, 2007

KALGOORLIE-BOULDER RESOURCES LTD ABN 48 106 732 487

ASX ANNOUNCEMENT

ASX Code: KAL, KALO

17 January 2007

ENTITLEMENTS ISSUE SUCCESSFULLY COMPLETED

The board of Kalgoorlie-Boulder Resources ('Company') is pleased to advise that the company's non-renounceable entitlements Issue to raise \$4.865 million has been successfully completed.

Entitlements

Kalgoorlie-Boulder Resources received acceptances of entitlements from shareholders totalling 29.156.898 shares from a total of 48.654.694 shares offered.

Shareholders who participated in the entitlements issue will also receive 1 free listed option for every 2 shares issued. The listed options have an exercise price of 20 cents and expire on 31 July 2008.

Shareholders who applied for shares pursuant to their entitlement under the entitlement issue will be allocated 100% of their applications.

It is the responsibility of all shareholders to confirm the number of new shares and attaching options allotted to them prior to trading in the new shares and/or attaching options. Shareholders who sell new shares or attaching options before they receive notification of the number of securities allotted to them do so at their own risk

Shortfall

As disclosed in the prospectus dated 13 December 2006, the Company has entered into separate agreements with each of Montagu Corporate Pty Ltd, ACNS Capital Markets Pty Ltd and Chase Capital Partners Pty Ltd ('the Firms') pursuant to which the Firms have agreed to take up any shortfall of shares in the Issue if the Directors decide to place any part of the shortfall with the Firms.

The Directors have decided that they will proceed to place 100% of the shortfall of 29,156,898 shares in the Issue with Montagu Corporate Pty Ltd, ACNS Capital Markets Pty Ltd and Chase Capital Partners Pty Ltd pursuant to the abovementioned agreements.

The terms of the placement of the shortfall shares are the same as the terms offered to shareholders under the entitlements Issue, namely an issue price of 10 cents per share and 1 free listed option for each 2 shares subscribed for.

Despatch

Kalgoorlie-Boulder Resources anticipates that new shares and attaching options will be allotted, and holding statements despatched to shareholders on 22 January 2007.

For further information please contact:

John Coles Company Secretary Tel: (08) 9228 9742