KORAB RESOURCES LIMITED — Capital/Financing Update 2013

Oct 10, 2013

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KORAB RESOURCES LIMITED KORAB HOUSE

www.korab.com.au

Friday, 11 October 2013

SALE OF MELROSE AND DARLOT EAST PROJECTS

Korab Resources Limited (“Korab” or “the Company”) (ASX: KOR) is pleased to advise that the Company and its wholly owned subsidiary Melrose Gold Mines Pty Ltd (MGM) have entered into a Heads of Agreement (HoA) with an unrelated Australian mining company for the sale of all mining leases, prospecting licences, miscellaneous licences, rights to mine and all privileges appurtenant to the tenements, including mining information and contracts, comprising the Melrose and the Darlot East projects held by MGM (Assets).

Completion of the sale is subject to conditions precedent. The substance of the conditions precedent that remain to be satisfied are: the Company and or MGM providing written notification that all outstanding claims to any mineral rights on any of the Assets in favour of a third party have been extinguished (Condition 2); the parties complying with the Corporations Act and ASX Listing Rules as they apply to the sale; the parties obtaining all government, statutory or regulatory approvals, consents and or permits, as required, to give effect to the sale of the tenements to the buyer, including Ministerial approval for the transfer of the tenements; the assignment of MGM's interests in any contracts relating to each tenement; and the buyer agreeing to abide by the terms of the land access agreements between the Company, MGM and third parties. These conditions are subject to temporal requirements.

The consideration will be paid in tranches. Korab has received a deposit of $200,000 which was paid on signing of HoA. $250,000 will be payable within 45 days of signing of HoA subject to satisfaction of Condition 2, and $1.05 million will be payable on completion in 90 days from signing of HoA subject to satisfaction of the remaining conditions precedent.

ASX KOR LAST PRICE AU¢ 3.2

The Company intends to apply the proceeds from the sale of the Melrose and Darlot East projects towards the start-up costs and the working capital requirements for the commencement of production of direct application rock phosphate from Geolsec, for exploration, evaluation and development work on Bobrikovo gold and silver project, on exploration work on other mineral assets of the Company, for general working capital requirements and to retire debt.

CONTACT:

BERLIN C6S.BE LAST PRICE € 0.02

ISSUED CAPITAL 135 MILLION SHARES

MARKET CAPITALISATION AU$4.3 MILLION €2.7 MILLION

Andrej K Karpinski, Executive Chairman - Australia: (08) 9474 6166, International: +61 8 9474 6166

ABOUT KORAB RESOURCES

Korab Resources Ltd is an international mining and exploration company with operations in Australia and Europe. Korab’s projects include gold and silver deposit at Bobrikovo, three gold deposits at Melrose, which are the Assets subject to the abovementioned sale, Winchester magnesite deposit at Batchelor and Geolsec rock phosphate deposit at Batchelor. The company also explores for gold and copper at Ashburton Downs in Western Australia and for polymetallic deposits at Batchelor in the Northern Territory. More information about Korab’s projects can be sourced from Korab’s website. Korab’s shares are traded on Australian Securities Exchange (ASX) and on the Berlin Stock Exchange (Berliner Börse) through Equiduct electronic trading platform.

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20 PROWSE STREET, WEST PERTH, WA, 6005, AUSTRALIA PO BOX 1958, WEST PERTH, WA, 6872, AUSTRALIA TEL (08) 9474 6166 FAX (08) 9322 6333 ACN 082 140 252

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