KORAB RESOURCES LIMITED — Capital/Financing Update 2012

May 31, 2012

www.korab.com.au

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KORAB RESOURCES LIMITED KORAB HOUSE

1 June 2012

LOYALTY OPTIONS UPDATE

• Subscription price for the loyalty options lowered to 0.1 cent ($0.001) per option

• 25 cent exercise price and expiry two years from date of issue

• Ratio of options to be one option for every three Korab shares held on record date.

• Prospectus to be aligned with EGM which will be called for early July 2012.

Korab Resources Limited (ASX:KOR. “ Korab ” or “ the Company ”) is pleased to provide an update on the previously announced loyalty option issue. Following feedback from shareholders, Korab has determined to lower the proposed option issue price from 0.5c to 0.1c, in order to allow maximum take-up by existing shareholders.

Other proposed key terms of the loyalty options remain unchanged, including an exercise price of 25 cents, and an expiry date two years from the date of issue. Korab will also apply to the ASX for listing of the loyalty options once issued.

Funds raised from the option issue are intended to cover as far as possible the costs of the offer, with the options providing a platform for a potentially significant future injection of capital.

The Company has also determined to coincide the lodgement and release of the loyalty option prospectus with an upcoming Extraordinary General Meeting, expected to be called in early July 2012. The record date will be in accordance with the timetable as required by ASX but in any case no earlier than 6 days after the date of dispatch of the prospectus.

Among other items, the EGM is intended to refresh shareholder approval pursuant to ASX Listing Rule 7.1 following the recent placement and associated issue of securities to the placement advisor. Korab is currently finalising the Notice of EGM and expects to issue it shortly.

-ENDS-

FOR FURTHER INFORMATION, CONTACT:

Andrej Karpinski Shane Murphy Executive Chairman FTI Consulting (08) 9474 6166 (08) 9386 1233 or 0420 945 291 shane.murphy@fticonsulting.com

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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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