KORAB RESOURCES LIMITED — Capital/Financing Update 2012

Oct 28, 2012

MARKET RELEASE

29 October 2012

Korab Resources Limited

TRADING HALT

The securities of Korab Resources Limited (the "Company") will be placed in Trading Halt Session State at the request of the Company, pending the release of an announcement by the Company. Unless ASX decides otherwise, the securities will remain in Trading Halt Session State until the earlier of the commencement of normal trading on Wednesday, 31 October 2012 or when the announcement is released to the market.

Security Code: KOR KORO

Jill Hewitt Senior Adviser, Listings (Perth)

Perth, 28 October 2012

Ms Tonia Oliveira Senior Adviser - Issuers (Perth) ASX Ltd Exchange Plaza Perth WA 6000

Dear Tonia.

RE: TRADING HALT

Korab Resources Ltd ("Korab", or "Company") requests an immediate trading halt in its securities pending an announcement by the Company in relation to a capital raising.

This announcement is expected to be made on Tuesday, 30 October 2012 but will be made no later than commencement of trading on Wednesday, 31 October 2012.

The Company is not aware of any reason why the trading halt should not be granted.

The Company is in compliance with the Listing Rules.

Securities for which trading halt is being sought: KOR, KORO

Sincerely yours

Andrej K. Karpinski FA/CD FFin SPE Executive Chairmab KORAB RESOURCES LIMITED

KORAB RESOURCES LIMITED KORAB HOUSE SUITE 6, 100 MILL POINT ROAD, SOUTH PERTH, 6151, WESTERN AUSTRALIA PO BOX 195 SOUTH PERTH WA 6951 AUSTRALIA, Tel +61 8 9474 6166 Fax +61 8 9474 6266 www.korabresources.com.au ACN 082 140 252