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KORAB RESOURCES LIMITED Capital/Financing Update 2012

Aug 26, 2012

65198_rns_2012-08-26_2b6f04e1-0f86-4849-9975-a408888c7bed.pdf

Capital/Financing Update

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KORAB RESOURCES LIMITED

KORAB HOUSE

www.korab.com.au

27 August 2012

OPTION ISSUE SUCCESSFULLY COMPLETED

Korab Resources (ASX:KOR; “Korab” or “the Company”) is pleased to advise that the option issue pursuant to the Prospectus dated 19 July 2012 has closed with all the options subscribed for.

On 24 August 2012, the Company issued and allotted 33,733,334 options to subscribers and has instructed its share registrar to despatch the holding statements to option holders. Valid applications for 20,000,737 options were received from Korab shareholders, resulting in a shortfall of 13,732,597 options. An application for 13,732,597 options was received by Korab from the underwriter, Rheingold Investments Corporation Pty Ltd in relation to the shortfall pursuant to the terms of the Underwriting Agreement dated 18 July 2012.

The options expire on 28 August 2014 and are exercisable at 25 cents. The options will trade under the ASX code “KORO”.

Korab Resources Executive Chairman, Mr Andrej Karpinski, said the Company was very pleased to have successfully concluded the loyalty options issue.

“As well as offering all shareholders on an equal basis a very cost-effective method to gain greater exposure to any future upside from Korab’s activities, the options create a platform for a potentially significant future injection of capital over the coming two years, should we achieve success in our activities,” Mr Karpinski said.

“I am also personally very pleased to show my own confidence in Korab’s future by underwriting the offer and taking up those options shareholders chose not to apply for. I’m excited about the path ahead for Korab as we continue to look to develop and realise value from the Company’s highly valuable project portfolio.”

As disclosed in the Prospectus, Rheingold Investments Corporation Pty Ltd, a company associated with Mr Karpinski, fully underwrote the option issue.

-ENDS-

FOR FURTHER INFORMATION, CONTACT:

Andrej Karpinski Shane Murphy Executive Chairman FTI Consulting (08) 9474 6166 (08) 9485 8888 or 0420 945 291 [email protected]

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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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