KORAB RESOURCES LIMITED — Capital/Financing Update 2011

Feb 14, 2011

www.korab.com.au

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KORAB RESOURCES LIMITED KORAB HOUSE

Tuesday, 15 February 2011

SHARE PURCHASE PLAN CLOSES EARLY

Korab Resources Ltd is pleases to advise the market that the Share Purchase Plan dated 24 January 2011 (the SPP) has closed oversubscribed. By the close of the SPP Korab has processed applications for 9 million shares to be issued at 33 cents each for a total of $2,970,000.

Applications which were received in excess of 9 million new shares will be returned to applicants. As announced to the market on 14 February 2011, the aggregate limit of new shares to be issued under the SPP was increased from 7 million to 9 million new shares. Processing of applications was on the first come first served basis.

Purpose of the SPP is to fund expansion of proposed production of phosphate rock at Geolsec Project near Darwin in the Northern Territory, to fund accelerated exploration programs for copper at Ashburton Downs Project in Western Australia and for rare earths, phosphates, base metals and nickel/cobalt/titanium at Rum Jungle Projects in the Northern Territory, to continue the review of development options for the Winchester magnesium deposit as a supplier of magnesium oxide based building products, to update the magnesium metal production feasibility study for Winchester magnesium deposit, to cover other working capital requirements and to reduce debt. The SPP also allowed existing shareholders to increase their shareholding in the Company without brokerage at a price which was 11% lower than the closing price on the last trading day immediately preceding the announcement of the SPP and 7% lower than the volume weighted average price of Korab’s shares over 5 business days immediately preceding the announcement of the SPP.

CONTACT

Andrej K. Karpinski - Executive Chairman, in Australia: (08) 9474 6166, International: +61 8 9474 6166

ABOUT KORAB RESOURCES LIMITED

Korab Resources Ltd is an Australian mining and exploration company based in Perth with operations in Australia and Europe. Korab’s quarrying and mining projects include rock phosphate and magnesium. The company also manages exploration projects in Western Australia and the Northern Territory. More information about Korab’s projects can be sourced from our website at www.korabresources.com.au Korab’s shares are listed on Australian Securities Exchange (ASX) and trade on Australian Securities Exchange (ASX) and on the Berlin Stock Exchange (Berliner Börse).

ASX KOR Last price AU¢ 39

BERLIN C6S.BE Last price € 0.28

Issued capital 79 million shares

Market capitalisation AU$ 31 million € 22 million

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LEVEL 1, SUITE 6, 100 MILL POINT ROAD, SOUTH PERTH, WA, 6151 AUSTRALIA PO BOX 195, SOUTH PERTH, WA, 6951 AUSTRALIA TEL (08) 9474 6166 FAX (08) 9474 6266 ACN 082 140 252

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