KORAB RESOURCES LIMITED — Capital/Financing Update 2012

Mar 22, 2012

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KORAB RESOURCES LIMITED KORAB HOUSE

www.korab.com.au

Friday, 23 March 2012

KORAB RAISES $1.78 MILLION TO FUND EXPLORATION AND DEVELOPMENT OF THE COMPANY’S PORTFOLIO OF ASSETS

HIGHLIGHTS

• $1.78 million raised pursuant to the Company’s 15 per cent capacity

• Capital enables Korab to progress exploration and development activities to drive value into the Company’s portfolio of assets

Korab Resources Limited (ASX:KOR, “Korab” or “the Company”) is pleased to announce it has resolved to raise in the order of $1.78 million through the placement of up to 13.2 million shares at 13.5 cents per share, following strong interest from new and existing institutional and sophisticated shareholders.

Commenting on the capital raising, the Company’s Executive Chairman, Andrej Karpinski, said: “To have received such strong interest in this capital raising and to have completed the raising at no discount to our last traded price is seen as a strong endorsement of the Company’s portfolio of assets and of our future strategic direction.”

Korab will principally use the proceeds from the Placement to advance mining and exploration activities at the Bobrikovo gold project in Ukraine, which boasts a JORC resource of over 1 million ounces with significant scope for growth. Capital will also be used to continue exploration and development at the Melrose gold project in the Eastern Goldfields of Western Australia, including metallurgical testing of the ore, and the Geolsec phosphate project in the Northern Territory. Funds will also be utilised to reduce debt, and to meet ongoing working capital requirements.

The Placement is being completed pursuant to the Company’s 15 per cent capacity under ASX Listing Rule 7.1. Korab has also advised investors that it is the directors’ current, but not irrevocable, intention to offer shareholders the right to acquire a loyalty option following completion of the Placement. The terms of any loyalty options that might be issued have yet to be finalised.

“These funds will provide us with a significant opportunity to realise the full potential from our gold and phosphate projects,” Mr Karpinski said.

“They will also give us the flexibility to pursue our revised corporate strategy, being to continue to develop our projects through to production or to seek other successful value creation methods to derive value for Korab shareholders.”

Korab controls 68% of Lugansk (owner of the Bobrikovo project) and 96% of Melrose (owner of the Melrose gold project). The Company controls 100% of the Geolsec phosphate project and 100% of the Winchester magnesium project.

-ENDS-

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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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www.korab.com.au

KORAB RESOURCES LIMITED KORAB HOUSE

FOR FURTHER INFORMATION, CONTACT: Andrej Karpinski Adrian Watson Executive Chairman FTI Consulting (08) 9474 6166 (08) 9386 1233 or 0419 040 807

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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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