KORAB RESOURCES LIMITED — Capital/Financing Update 2012

Mar 21, 2012

MARKET RELEASE

22 March 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 Monday, 26 March 2012 or when the announcement is released to the market.

Security Code: KOR

Jill Hewitt Senior Adviser, Listings (Perth)

Perth, 21 March 2012

Ms. Tonia Oliveira ASX Ltd Exchange Plaza Perth, WA 6000

Dear Tonia.

RE: REQUEST FOR TRADING HALT

Korab Resources Limited (KOR or Company) requests a trading halt pending an announcement relating to a capital raising.

This announcement is expected to be made no later than commencement of trading on Monday, 26 March 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.

Sincerely yours

Andrej K Karpinski, FAICD, FFin KORAB RESOURCES LIMITED EXECUTIVE CHAIRMAN