MATSA RESOURCES LIMITED — Interim / Quarterly Report 2007

Apr 29, 2007

Appendix 5B

$Rule 5.3$

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

KALGOORLIE-BOULDER RESOURCES LIMITED

ABN

48 106 732 487

Quarter ended ("current quarter")

Current quarter

31 March 2007

Year to date

$(6$ months)

Consolidated statement of cash flows

Cash flows related to operating activities

		\$A'000	\$A'000
1.1	Receipts from product sales and related debtors		1,292
1.2	Payments for (a) exploration and
	evaluation	(81)	(170)
	(b) development
	(c) production	(384)	(2,765)
	(d) administration	(316)	(746)
1.3	Dividends received
1.4	Interest and other items of a similar nature
	received	28	33
1.5	Interest and other costs of finance paid	(4)	(41)
1.6	Income taxes paid
1.7	Other (provide details if material)
	- Option fee received		50
	- Movement in working capital	(1,209)	312
	Net Operating Cash Flows	(1,966)	(2,035)
	Cash flows related to investing activities
1.8	Payment for purchases of:
	(a)prospects		(1,040)
	(b)equity investments
	(c) other fixed assets	(1)	(1)
1.9	Proceeds from sale of:
	(a)prospects
	(b)equity investments		24
	(c)other fixed assets
1.10	Loans to other entities
1.11	Loans repaid by other entities
1.12	Other - payment for subsidiary net of cash
	acquired	(2,615)	(2,991)
	Net investing cash flows	(2,616)	(4,008)
1.13	Total operating and investing cash flows

$+$ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	(4, 582)	(6,043)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	5,865	6,865
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings
1.17	Repayment of borrowings	(750)	(750)
1.18	Dividends paid
1.19	Other (provide details if material)
	$-$ Cost of capital raising	(427)	(493)
	Net financing cash flows	4,688	5,622
	Net increase (decrease) in cash held	106	(421)
1.20	Cash at beginning of quarter/year to date	360	887
1.21	Exchange rate adjustments to item 1.20
1.22	Cash at end of quarter	466	466

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter \$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	108
1.24	Aggregate amount of loans to the parties included in item 1.10	AM

1.25 Explanation necessary for an understanding of the transactions

Payment of \$12,333 to a company controlled by Trevor Matthews for the provision of executive services rendered by Trevor Matthews. Payment of non-executive directors fees of \$21,001. Please note, three non-executive directors were appointed in March 2007 with fees being paid from the date of their appointment. Bonus payment of \$75,000 paid to David Prentice.

Non-cash financing and investing activities

$2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

Issue of 51.5 million shares to acquire 100% of the issued capital of Australian Gold Investments Pty Ltd as previously disclosed to the market.

$2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

$N/A$

⁺ See chapter 19 for defined terms.

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available \$A'000	Amount used \$A'000
3.1	Loan facilities	ml	mi
3.2	Credit standby arrangements	nıl	nil

Estimated cash outflows for next quarter

	Total	450
$4.2^{\circ}$	Development/Production	366
4.1	Exploration and evaluation	84
		\$A'000

Reconciliation of cash

	Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter SA'000	Previous quarter \$A'000
5.1	Cash on hand and at bank	466	360.
5.2	Deposits at call
5.3	Bank overdraft
5.4	Other (provide details) – fixed term deposit
	Total: cash at end of quarter (item 1.22)	466	360

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
6.1	Interests in mining tenements relinquished, reduced or lapsed
6.2	Interests in mining tenements acquired or increased

⁺ See chapter 19 for defined terms.

Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	Issue price per security (see note $3)$ (cents)	Amount paid up per security (see note 3) (cents)
7.1	Preference
	*securities (description)
7.2	Changes during
	quarter
	(a) Increases through issues
	(b) Decreases
	through returns
	of capital, buy- backs,
	redemptions
7.3	+ Ordinary	158,791,388	96,976,344
	securities
7.4	Changes during quarter
	(a) Increases	110,145,694	60,145,694
	through issues
	(b) Decreases through returns
	of capital, buy-
7.5	backs + Convertible
	debt securities	12
	(description)
7.6	Changes during quarter
	(a) Increases	12
	through issues
	(b) Decreases through
	securities
	matured,
7.7	converted Options			Exercise price	Expiry date
	(description and	50,455,472	45,455,472	20 cents	31 July 2008
	conversion factor)	8,250,000 2,250,000		30 cents 40 cents	31 July 2008 31 July 2008
$7.8\,$	Issued during	36,822,847	36,822,847	20 cents	31 July 2008
	quarter
7.9	Exercised during quarter
7.10	Expired during
	quarter
7.11	Debentures (totals only)
7.12	Unsecured
	notes (totals only)

⁺ See chapter 19 for defined terms.

Compliance statement

• $\mathbf{I}$ This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
• $\overline{2}$ This statement does /does not* (delete one) give a true and fair view of the matters disclosed.

Sign here:
	(Director/Company secretary)

Print name: John Coles (Company Secretary)

Notes

• The quarterly report provides a basis for informing the market how the entity's $\mathbf{I}$ activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• $\overline{2}$ The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items $6.1$ and $6.2$
• $\overline{3}$ Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
• $\overline{4}$ The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

$\frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{$

⁺ See chapter 19 for defined terms.

Schedule 1 Interests in Mining Tenements Acquired or Increased

		Interest at	Interest at
Tenement		beginning	end of
reference	Nature of Interest	of quarter	quarter

⁺ See chapter 19 for defined terms.