KORAB RESOURCES LIMITED — Capital/Financing Update 2013

Mar 17, 2013

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18 March 2013

Dear Shareholder

KORAB RESOURCES LIMITED SHARE PURCHASE PLAN OFFER TO EXISTING ELIGIBLE SHAREHOLDERS

On behalf of the directors of Korab Resources Limited ( “Korab” or “Company” ) , I am pleased to invite shareholders to participate in a share purchase plan (“ SPP” ) which will allow Eligible Shareholders the opportunity to purchase new fully paid ordinary shares in the capital of the Company up to the value of $14,999.95 per shareholder. The price at which shareholders will be able to purchase shares under the SPP is $0.085 (8.5 cents) per share.

The SPP will be available to shareholders who are registered shareholders as of 21 February 2013 (the “ Record Date” ) (“ Eligible Shareholders” ).

Our register of shareholders shows a large number of shareholders who are holding less than a marketable parcel of shares and the SPP will enable these holders to increase their holding accordingly.

IMPORTANT NOTE

This SPP is limited to 26,700,000 new shares in aggregate and Korab has no intention to issue more than 26,700,000 new shares. Processing of SPP applications will be on a first come, first served basis.

KORAB WILL NOT ACCEPT OR PROCESS APPLICATIONS AFTER IT HAS RECEIVED APPLICATIONS FOR 26,700,000 SHARES IN AGGREGATE.

KORAB HAS APPROXIMATELY 1,400 SHAREHOLDERS AND IT IS POSSIBLE THAT THE TOTAL NUMBER OF SHARES APPLIED FOR UNDER THIS SHARE PURCHASE PLAN WILL EXCEED 26,700,000 SHARES.

APPLICATIONS WILL BE PROCESSED IN THE ORDER IN WHICH THEY ARE RECEIVED, YOU ARE THEREFORE ENCOURAGED TO ACT EARLY IF YOU WISH TO PARTICIPATE IN THIS OFFER.

SPP KEY DATES*

Date	Event
21 February 2013	Record Date	The date on which Korab determines Eligible Shareholders.
18 March 2013	Opening Date	SPP Opens
19 April 2013	Closing Date	SPP Closes. Applications must be received by 5pm (WST).
22 April 2013	Allotment Date	Shares allotted. Trading is expected to commence on ASX on next trading day.
23 April 2013	Despatch Date	Transaction confirmation dispatched to shareholders.

DATES ARE INDICATIVE ONLY AND KORAB RETAINS THE RIGHT TO VARY EACH OF THESE DATES WITHOUT ADVANCE NOTIFICATION TO YOU. HOWEVER, ANY ALTERATION TO THESE DATES WILL BE NOTIFIED TO THE ASX.

The SPP will enable Eligible Shareholders, regardless of the number of shares held on the Record Date, to subscribe for a parcel of ordinary shares in Korab up to the value of $14,999.95 with a minimum subscription of $2,125. The shares are issued at a discount to the recently traded share price and there is no brokerage payable on purchases of shares under the SPP. The Company is seeking, through the SPP, to enable Eligible Shareholders of Korab to participate in the exciting future of the Company as it endeavours to commence early production of gold from its gold mining assets and accelerates exploration for gold. Directors intend to take up their full entitlement in the SPP offer.

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Korab Resources Ltd Share Purchase Plan Page: 1 of 8

USE OF FUNDS

The funds raised under the SPP will be used to fund the development of the Bobrikovo Project in Ukraine and the Melrose project in Western Australia, the exploration programs for gold at the Bobrikovo Project, the Melrose Project, the Ashburton Downs Project in Western Australia, and at the Batchelor Project in the Northern Territory, to cover other working capital requirements and to reduce debt.

BUSINESS OVERVIEW

Korab Resources Limited is a Perth based ASX-listed (ASX: KOR) mining and exploration company with gold, phosphate and magnesium mining and quarrying assets located in Australia. The Company also operates exploration projects where it explores for gold, copper, nickel and phosphates in Western Australia and the Northern Territory.

During the year Korab has made considerable progress with Korab’s gold mining projects, specifically 2 million gold ounces Bobrikovo Project in Ukraine and 340 thousand gold ounces Melrose Project in Western Australia.

In December 2012 the Company signed agreement to sell the Winchester Magnesite Project in the Northern Territory for up to $33 million in cash and royalties (subject to a number of conditions, including successful completion of the due diligence process). In the event that this sale proceeds to completion, part of the monies received will be used to fund the development of the oxide zone of the Bobrikovo Project and to fund the pre-feasibility study on the development of 1.93 million gold ounces contained in the fresh rock zone of the Bobrikovo Project (see the description of the Bobrikovo Project below for more details).

During the year, in addition to significant amount of work completed on the Bobrikovo Project, Korab completed an extensive metallurgical testwork program to assess the viability of the development of the Melrose Project as simple lowcost heap leach operation. The results of this program show that the Melrose Project may be developed as a heap leach operation with very high gold recovery rates in column leach tests. The recovery rates from column leach tests ranged from 76% to 94% with very low use of additives (see the description of the Melrose Project below for more details).

Korab also continues to assess optimum ways to generate revenue for our shareholders from our Geolsec Phosphate Project located in the Northern Territory.

During the year, Korab announced an exciting new initiative to pay electing Korab shareholders what amounts to a 5% “royalty” on gold produced by the Company. Should the Company declare a dividend, shareholders may elect to receive the dividend in gold. Korab shareholders who are eligible to receive a dividend and who make the election would receive the gold in a Perth Mint depositary account opened on behalf of each electing shareholder for this purpose. This will enable those Korab shareholders who elect to do so, to receive gold instead of cash should the Company declare a dividend in the future thus allowing them to directly participate in the future stream of gold produced by the Company. This right to receive declared dividends in gold or in cash remains subject to the Korab Board’s powers to pay a dividend under Part 2H.5 of the Corporations Act.

BOBRIKOVO GOLD PROJECT

Bobrikovo Gold Project which is located in eastern Ukraine has a 2 million gold ounces mineral resource estimated in accordance with JORC Code. The mineralisation is open at depth and along strike and offers potential for significant increase in tonnage and grade with more drilling. The project has progressed through the feasibility study stage for the development of the oxide zone (corresponding to the measured resource) and is currently progressing through the feasibility study on the development of the fresh rock zone. As part of this program, an additional drilling campaign is planned to convert the part of the mineral resource that is currently classified as inferred resource to indicated category. Bobrikovo mineral resource statement at various cut-off grades is shown below.

CURRENT MINERAL RESOURCE AT BOBRIKOVO PROJECT (ABOVE 0.5 G/T AU CUT-OFF GRADE)

Resource by category	Resource by category
At 0.5 g/t Au cut-off	VOLUME	ORE_MASS	AU_CONTENT	AU_MASS	AU_MASS
	[1000m3]	[1000t]	[g/t]	[t]	[Mln oz.]
Measured	664.130	1,660.321	2.053	3.409	0.110
Indicated	2,909.636	7,274.089	2.792	20.313	0.653
Inferred	11,263.358	28,158.399	1.412	39.749	1.278
Total	14,837.124	37,092.809	1.711	63.471	2.041

Totals may differ due to rounding

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Korab Resources Ltd Share Purchase Plan Page: 2 of 8

CURRENT MINERAL RESOURCE AT BOBRIKOVO PROJECT (ABOVE 1 G/T AU CUT-OFF GRADE)

Resource by category
At 1 g/t Au cut-off	VOLUME	ORE_MASS	AU_CONTENT	AU_MASS	AU_MASS
	[1000m3]	[1000t]	[g/t]	[t]	[Mln oz.]
Measured	382.132	955.331	3.046	2.910	0.094
Indicated	2,909.636	7,274.089	2.792	20.313	0.653
Inferred	3,878.147	9,695.367	2.778	26.929	0.866
Total	7,169.915	17,924.786	2.798	50.152	1.612

Totals may differ due to rounding

CURRENT MINERAL RESOURCE AT BOBRIKOVO PROJECT (ABOVE 2 G/T AU CUT-OFF GRADE)

Resource by category	Resource by category
At 2 g/t Au cut-off	VOLUME	ORE_MASS	AU_CONTENT	AU_MASS	AU_MASS
	[1000m3]	[1000t]	[g/t]	[t]	[Mln oz.]
Measured	188.577	471.443	4.720	2.225	0.072
Indicated	1,289.213	3,223.033	4.559	14.694	0.472
Inferred	1,409.386	3,523.466	5.118	18.034	0.580
Total	2,887.177	7,217.942	4.843	34.953	1.124

Totals may differ due to rounding

As part of the development of the oxide zone, Korab has been mining and stockpiling ore on a campaign basis accumulating in excess of 340 thousand tonnes of high-grade and low-grade ore which contains 32,000 gold ounces ready for extraction. The ore is pre-crushed and is ready for milling and processing using simple low-cost gravity concentration circuit. The Company has also mined approximately 700,000 tonnes of very low grade rock assaying under 0.8 g/t Au (averaging 0.5 g/t Au) which is currently stockpiled as waste but which may be considered for treatment in the future. This rock contains additional 11,000 gold ounces.

Korab is developing the oxide zone as a precursor to the development of the much larger fresh rock zone where it aims to increase the production to between 60,000 and 70,000 gold ounces per year. The Company has already commenced the pre-feasibility study for the development of the fresh rock zone although the main focus thus far has been on the commencement of early gold production from the oxide ore.

The tonnage and grade of oxide ore which has been mined by Korab and stockpiled on site is as follows:

Material mined	tonnes	gradeg/t Au	ounces Au
High Grade	49,696	4.80	7,669
Lower grade	284,699	2.60	23,799
Sub‐total	334,395	2.93	31,468
very low grade/waste	693,332	0.50	11,146
Total	1,027,727		42,613

The mined rock grade reconciliation conducted by the Company shows that the mined grade exceeds the grade predicted by the mineral resource estimation block model by a significant margin. This variation is due to the extremely conservative model adopted for the estimation of the mineral resource (released to the market on 8 October 2012). The model used ID4 (inverse distance to the power of 4) and consequently generated an extremely conservative resource estimate by not allowing smoothing of the data. As a result, this would have underestimated the total ounces contained when compared to a model using a lower power interpolation method.

Korab advised in February 2013 that it is considering extraction of gold from the ore stockpiled on site using a low cost second hand gravity processing plan. The Company advised in early March 2013 that it has commenced construction of the gravity processing plant and the ancillary infrastructure including lab, mechanical workshops and the administration building at the mine site. At the same time, Korab released exceptionally positive results of the evaluation of the Stage 1 of economic development of the oxide zone.

Oxide ore from Bobrikovo is amenable to low cost gravity processing using a simple low cost circuit designed to produce concentrate containing gold, silver, and base metals. Bobrikovo oxide ore is very soft and brittle, thus requiring very little energy to grind it to suitable grind size. Additional benefit of the oxide ore is that its gold particles are relatively large and occur as free grains. This makes the oxide ore from Bobrikovo suitable for gold and silver extraction without the use of

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Korab Resources Ltd Share Purchase Plan Page: 3 of 8

chemicals and at relatively coarse grind size. It is because of the excellent grindability and metallurgy of this heavily weathered ore that the CAPEX and the OPEX of Stage 1 development can be exceptionally low.

The operating profit from 12 month of production is expected to be around $11.5 million before tax. Production is fully permitted, however the commencement of the production of concentrate will depend on the timing of the completion of the gravity processing plant. The CAPEX is estimated at $700,000. The processing cost of ore to concentrate is $295/ounce. The selling costs and the discount to the spot gold price upon sale of the concentrate to refinery is approximately 15% of the gold price.

Large proportion of funds to be raised under the SPP will be used to fund the purchase and commissioning of the Stage 1 processing plant to enable early production of gold concentrate and generation of early cash flow.

The Company has already commenced the pre-feasibility study on the development of the fresh rock resource totalling 1.93 million ounces of gold estimated in accordance with JORC code aiming for an annual production of between 60,000 and 70,000 ounces of gold. Part of the monies to be raised under this SPP will be used to fund further progress of this study.

BOBRIKOVO PROJECT DESCRIPTION

Bobrikovo Project is located in eastern Ukraine, within Nagolny Ridge, a part of a large intra-continental geological structure that extends from southern Europe east to Central Asia. This structure hosts several world-class gold mining operations including 170 million ounces Muruntau gold deposit as well as Vysokovoltnoe, and Bakirchic gold deposits. The style of mineralisation at Bobrikovo is similar to 170 million ounces Muruntau deposit in Uzbekistan and to 57 million ounces of gold Sukhoi Log deposit in Russia.

The deposit occurs on the intersection of deep fault zones. Mineralisation is controlled by NW-NNW trending anticline hinge, and occurs as concordant and discordant quartz-carbonate tension veins and stockworks. Mineralised zone is 3 km long and 1 km wide. Exploratory drilling and seismic surveys indicate that mineralised rocks continue to at least 3 km depth. Whole rock geochemistry indicates that the mineralisation is mantle derived. Host rocks of the Nagolny Kryazh comprise two structural stages: the lower, Precambrian, and the upper, Phanerozoic. The lower structure comprises deformed sequence of gneisses and crystalline schists. Precambrian basement is overlapped by 3 km-thick sedimentary rock sequence.

MELROSE GOLD PROJECT

The Melrose project is located 70km north east of Leinster in the Eastern Gold Fields of Western Australia, within the Mt. Fisher/Wanganoo greenstone belt (previously called Mt. Fisher/Dingo Range belt). The Melrose project consists of three deposits (Bungarra, Boundary and Stirling) located in close proximity. Melrose mineral resource estimated in accordance with the JORC Code stands at 0.339 million ounces of gold in 6.5 Mln tonnes grading on average 1.61 g/t Au. The deposits are open at depth and offer potential for additional mineralisation with more drilling.

MINERAL RESOURCE AT MELROSE PROJECT (ABOVE 0.5 G/T AU CUT-OFF GRADE)

Category	Tonnes	Gradeg/t Au	Gold Ounces
Measured
Boundary	652,154	1.73	36,262
Indicated
Boundary	2,662,763	1.73	148,506
Inferred
Boundary	703,209	1.36	30,822
Bungarra	2,144,332	1.56	107,385
Stirling	404,000	1.31	17,000
Total Resource	6,566,458	1.61	339,975

Following the completion of the extensive metallurgical test work program on samples from the Melrose project, which confirmed amenability of the ore to heap leach gold extraction, Korab commenced the review of the development options for the project. Column leach testing showed very good-to-excellent gold recovery rates. 94.07% of contained gold was recovered after 32 days from the Bungarra deposit samples, whilst 76.03% of contained gold was recovered after 60 days from the Boundary deposit samples. Company is updating the scoping study with the heap leach amenability test work results to assess the estimated capital expenditure and operating costs of a combined bulk mining and heap leaching operation. Part of the monies to be raised under this SPP will be used to fund the completion of the scoping study.

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Korab Resources Ltd Share Purchase Plan Page: 4 of 8

ASHBURTON DOWNS PROJECT

Ashburton Downs Project is held by a wholly owned subsidiary of Korab (Australian Copper P/L) and covers an area of 380 km2. Ashburton Downs Project is located immediately to the south of the Ashburton Project owned by Northern Star Resources Limited (NST). It contains several occurrence of gold in a setting similar to the deposits at Ashburton Project. Ashburton Project contains a mineral resource of 1.6 million gold ounces estimated in accordance with JORC code, comprising 7.1 million tonnes grading 2.4 g/t Au for 0.546 million gold ounces in indicated category and 14.227 million tonnes grading 2.5 g/t Au for 1.122 million gold ounces in inferred category (Announced by NST on 28 February 2013).

WINCHESTER MAGNESIUM DEPOSIT

Winchester magnesite deposit is located within the Batchelor project, approximately 70km by road or rail from the port of Darwin in the Northern Territory. It contains a mineral resource of 12.2 million tonnes grading 43.1% MgO in an indicated category and 4.4 million tonnes grading 43.6% MgO in an inferred category. On 31 December 2012, Korab Resources executed agreement to sell the deposit for up to $33 million in cash and royalties. The sale is subject to a number of conditions including successful completion of due diligence process.

GEOLSEC PHOSPHATE DEPOSIT

Geolsec phosphate deposit is located also within the Batchelor project, approximately 70km by road or rail from the port of Darwin in the Northern Territory. Korab has been working on the development of this project for a number of years. Whilst the deposit is relatively easy to mine and the project may be developed at a very low capital and operating costs, the presence of contaminants in the phosphate rock within some sections of the deposit has been complicating the development process. The presence of contaminants was reported to the market on 15 October 2010. Whilst Korab’s priority is on the development of our gold assets, the Company continues to assess the optimum approach to derive value from the Geolsec phosphate deposit for our shareholders.

GOLD DIVIDEND

In February 2013, Korab announced that if and when it declares a dividend in the future, shareholders may elect to receive the dividend in gold. Korab shareholders who are eligible to receive a dividend and who make the election would receive the gold in a Perth Mint depositary account opened on behalf of each electing shareholder for this purpose. The elections to receive gold will be capped at 5% of the gold produced by Korab in any financial year, and payment of the dividend in gold will be conditional on electing shareholders agreeing to be bound by the terms of Perth Mint depository accounts. This will essentially amount to shareholders receiving a 5% “royalty” on gold produced by the Company. Where the elections to receive gold exceed this 5% of the gold produced in any one financial year, the dividend payments in gold would be scaled back on a pro rata basis and electing shareholders would receive a combined gold and cash dividend payment. This may happen for example if the aggregate amount of the dividends to be paid out in any one financial year exceeds the value of 5% of the gold produced in that year. This right to receive declared dividends in gold or in cash remains subject to the Korab Board’s powers to pay a dividend under Part 2H.5 of the Corporations Act. The Perth Mint operates a Depository business unit which currently holds over $3.5 billion worth of precious metals. Out of the Depository’s 24,000 clients, 46% are Australian (11,000 clients) with 39% from the United States and 10% in Europe. Depository clients can hold gold on an unallocated basis recorded down to units of one thousandth of an ounce (0.001oz), or circa $1.58. This small unit of measure means that all but the smallest of dividend payments would be able to be processed as a credit to the shareholder’s Perth Mint Depository metal account.

SHARE PURCHASE PLAN

As set out above, in order to assist in achieving the aims outlined above, the Company now offers to each existing Eligible Shareholder (i.e. shareholders who hold shares in Korab on 21 February 2013), the opportunity to acquire additional shares in the Company at $0.085 (8.5 cents) per share up to a total value of $14,999.95 per shareholder. The price of $0.085 (8.5 cents) per share, which has been fixed by the board of directors of Korab, provides existing Eligible Shareholders with an opportunity to purchase shares in the Company at a price which is 6% lower than the closing price on the last trading day immediately preceding the announcement of this offer and 7% lower than the volume weighted average price of Korab’s shares over 5 business days immediately preceding the announcement of this offer

The opportunity to purchase shares under the SPP is made in accordance with ASIC Class Order allowing ASX listed companies to offer their existing shareholders the opportunity to acquire additional shares in the Company without the need for a prospectus under Part 6D.2.

Further details and terms of the Share Purchase Plan are set out in this letter, the enclosed Terms and Conditions of the SPP (“ Terms and Conditions ”) and in the terms and conditions set out on the enclosed Application Form. Please carefully read this letter, the enclosed Terms and Conditions and the Application Form before making any decision to participate in the SPP.

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Korab Resources Ltd Share Purchase Plan Page: 5 of 8

You will be eligible to participate in the SPP if you are a registered holder of fully paid ordinary shares in the capital of Korab as of 21 February 2013. If you are eligible to purchase shares under the SPP, you may select to subscribe for any number of shares between a minimum of 25,000 shares ($2,125) and up to 176,470 shares ($14,999.95) at a price of 8.5 cents per share.

Korab proposes to raise up to a maximum of $2,269,500 from the SPP, equating to 26,700,000 new fully paid ordinary shares in the capital of the Company. There are approximately 1,400 Eligible Shareholders that may participate in this SPP. Consequently the applications will be accepted on a first come, first served basis and shares will be allotted as soon as possible after the end of the offer period. The offer will be closed at the earlier of: a date when the applications for 26,700,000 shares in aggregate have been received by the Company, or Friday , 19 April 2013 . It is not the intention of the Company to issue more than 26,700,000 new shares.

If you wish to apply for any shares under the SPP, please complete the enclosed application form and forward it with your cheque made payable to “Korab Resources Limited” or with your confirmation of payment by electronic funds transfer to:

Applications together with cheques, or confirmations of electronic funds transfers or deposits should be sent to:

Korab Resources Limited PO Box Z5447 Perth WA 6831

Or delivered in person to:

Korab Resources Limited Level 18, “Central Park” 152-158 St. George’s Terrace Perth WA 6000

Or emailed to: spp@korabresources.com.au

The offer will close on Friday, 19 April 2013 or earlier if the maximum number of shares to be issued under the SPP has been reached. Applications to subscribe for shares under the SPP must be received prior to the close of the offer. If the exact amount of money is not tendered with the acceptance, Korab reserves the right to return your application and monies and not allot any shares to you or to allot only that number of shares for which Korab has received payment. Participation in the SPP is entirely voluntary. The offer is non-renounceable, which means that you cannot transfer your right to purchase shares under the SPP to anyone else.

If you have any questions in relation to the SPP, please contact the Company on (08) 9288 4467 or visit the company website at www.korabresources.com.au

I appreciate your continuing support of Korab and look forward to your ongoing involvement in the new phase ahead as we continue the development and exploration of the Company’s gold mining assets, and continue our work on our other mineral assets.

Yours faithfully,

Andrej K. Karpinski Executive Chairman

Competent Person: The information in this letter that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Andrew Hawker, who is an independent geological consultant and is a member of The Australasian Institute of Mining and Metallurgy. Andrew Hawker has in excess of 5 years experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Andrew Hawker consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Korab Resources Ltd Share Purchase Plan Page: 6 of 8

KORAB RESOURCES LIMITED SHARE PURCHASE PLAN

Pursuant to the Korab Resources Limited ( “Korab” or “Company” ) share purchase plan (“ SPP” ), Korab offers each Eligible Shareholder the ability to acquire between 25,000 ($2,125) and 176,470 ($14,999.95) fully paid ordinary shares in the capital of Korab at $0.085 (8.5 cents) per share.

TERMS AND CONDITIONS

1. Closing Date of the Offer

The offer closes at the earlier of:

1. when the applications for the 26,700,000 new share in aggregate have been received by Korab;

2. or

3. at 5:00pm (WST) on Friday, 19 April 2013

2. Eligibility

You are eligible to apply for shares if you are registered as a holder of fully paid ordinary shares in Korab as of 21 February 2012.

The offer to each Eligible Shareholder is made on the same terms and conditions.

The offer is non-renounceable (i.e. you may not transfer your right to buy the shares to anyone else).

The maximum amount which any shareholder may subscribe for in any consecutive 12 month period is $15,000.

3. Issue Price

The issue price for each Share under the offer is $0.085 (8.5 cents) per share, which is 6% lower than the closing price of Korab’s shares on the last trading day immediately preceding the announcement of this SPP and 7% lower than the volume weighted average price of Korab’s shares over 5 business days immediately preceding the announcement of this SPP.

4. Rights attaching to Shares

THE SHARES WILL BE ISSUED ON THE SAME TERMS AS THE EXISTING ORDINARY SHARES IN KORAB QUOTED ON THE ASX.

5. Investment in Offer

If you are an eligible shareholder, you can purchase any number of shares between a minimum of 25,000 shares ($2,125) and up to a maximum of 176,470 shares ($14,999.95).

6. Joint/ Multiple Holdings

Shareholders who receive more than one Application Form due to multiple individual holdings may only apply for a maximum of 176,470 shares at A$14,999.95 total application price.

7. Trustee / Nominee Holdings

If a trustee or nominee is expressly noted on the register of members as holding shares or interests on account of another person (Beneficiary) :

• a) the Beneficiary is taken to be the registered holder in regard to those shares or interests and

• b) any application for the issue of shares or interests, and any issue of shares or interests to the trustee or nominee, is taken to be an application by, or an issue to, the Beneficiary.

Therefore each Beneficiary may apply for a maximum of 176,470 shares at A$14,999.95 total application price.

8. Subscription limited to a $2,269,500 capital raising

The Company intends to accept applications of up to $2,269,500 under this SPP. Applications will be accepted on a first come, first served basis. If applications are received for in excess of $2,269,500 under

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this SPP, Korab reserves the right to return your application form and cheque and not allot any shares to you. No interest will be paid on any money that is returned.

9. Participation Costs

The only cost to the shareholder in relation to the SPP is the issue price of the number of shares you wish to purchase. Under the SPP there is no need to pay brokerage, commission or other transaction costs.

10. Allotment of Shares

The shares will be allotted within 5 business days following the closing of the offer. On the allotment of shares to you, Korab’s share registry, Link Market Services, will send you an Issuer Sponsored Holding Statement or CHESS Allotment Confirmation Notice in due course. After allotment of the shares you will be sent a statement confirming the number of shares allotted. If you are an Issuer Sponsored Holder this will be sent to you by Link Market Services, if you are sponsored by a broker you will receive a confirmation statement from CHESS.

11. Payment for Shares

All amounts in the offer are expressed in Australian dollars, Shareholders must pay for shares with a cheque for the exact amount in Australian dollars or by electronic funds transfer quoting their reference number which appears in the top right corner of their application form. The cheque should be made payable to “Korab Resources Limited” . If the exact amount of money is not tendered with the Application Form, Korab reserves the right to return your Application Form and cheque or electronic funds transfer and not allot any shares to you or to allot only that number of shares for which Korab has received payment.

12. Change of Offer

Korab may change the terms or terminate the SPP at any time. If this occurs, the ASX will be advised. The omission to give notice of changes to, or termination of, the SPP or the non-receipt of notice will not invalidate the change or termination. Korab reserves the right to allot fewer shares than an eligible shareholder applies for or no shares under the SPP if Korab believes the allotment of those shares would contravene any law or ASX listing rules. No interest will be paid on any amount returned.

13. Dispute Resolution

Korab may settle any difficulty in relation to the SPP in any manner it thinks fit, whether generally or in relation to any participant, application or share. Korab’s decision will be conclusive and binding.

14. Important information on Price Risk to Consider

The issue price under the SPP is $0.085 (8.5 cents) per share, which is 6% lower than the closing price of Korab shares on the last trading day immediately preceding the announcement of this SPP and 7% lower than the volume weighted average price of Korab’s shares over 5 business days immediately preceding the announcement of this SPP. Before deciding whether to accept the offer, shareholders should refer to the current market price of Korab’s shares, which can be obtained from the financial pages of a daily newspaper, a stockbroker or the ASX.

Shareholders should note that the market price of Korab’s shares may rise or fall between the date of this offer and the date when the shares are issued to the shareholder under the SPP. This means that the price paid per share may be greater than or less than the price of Korab’s shares at the time the shares are issued to you under the terms of the SPP. In determining whether, as an Eligible Shareholder, you wish to participate in this offer and the extent of participation, personal financial and/or taxation advice should first be obtained.

Korab reserves the right to waive strict compliance with any provision of these Terms and Conditions. The powers of Korab under these Terms and Conditions may be exercised by the Directors of Korab or any delegate of them.

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KORAB RESOURCES LIMITED

ACN 082 140 252

SHARE PURCHASE PLAN ENTITLEMENT AND APPLICATION FORM

THIS DOCUMENT IS IMPORTANT. IF YOU ARE IN ANY DOUBT AS TO HOW TO DEAL WITH IT, PLEASE CONTACT YOUR PROFESSIONAL ADVISER

Record Date: Thursday, 21 February 2013 Offer closes: 5:00pm WST Friday, 19 April 2013, or earlier- please read the note below

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IMPORTANT NOTE

PLEASE NOTE THAT THIS SHARE PURCHASE PLAN IS LIMITED TO 26,700,000 NEW SHARES IN AGGREGATE. KORAB WILL NOT ACCEPT OR PROCESS APPLICATIONS AFTER IT HAS RECEIVED APPLICATIONS FOR 26,700,000 SHARES IN AGGREGATE.

KORAB HAS APPROXIMATELY 1,400 SHAREHOLDERS AND IT IS POSSIBLE THAT THE TOTAL NUMBER OF SHARES APPLIED FOR UNDER THIS SHARE PURCHASE PLAN WILL EXCEED 26,700,000 SHARES.

APPLICATIONS WILL BE PROCESSED IN THE ORDER IN WHICH THEY ARE RECEIVED, YOU ARE THEREFORE ENCOURAGED TO ACT EARLY IF YOU WISH TO PARTICIPATE IN THIS OFFER.

NON-RENOUNCEABLE OFFER OF KORAB RESOURCES LIMITED (“THE COMPANY”) SHARES TO EACH HOLDER OF EXISTING FULLY PAID ORDINARY SHARES IN THE COMPANY AS AT THE RECORD DATE.

I/WE_______________ Insert Shareholder/s Full Name

Of ______________________

Insert Shareholder/s Address

• A. being registered on Thursday, 21 February 2013 as the holder(s) of shares in the Company hereby accept the offer made in the Share Purchase Plan dated 18 March 2013 to subscribe for the number of fully paid ordinary shares in the Company (the Shares) specified at section B below.

• B. Application for Shares

To participate in the Share Purchase Plan shareholders must insert below the number of shares that they wish to apply for. Shareholders may apply for any number of shares between a minimum of 25,000 shares and up to a maximum of 176,470 shares ($2,125 and $14,999.95). The application must be for a minimum of 25,000 shares and up to 176,470 shares.

Shares in Korab Resources at 8.5 cents per share

• C. I/We authorise you to place my/our name(s) on the register of members in respect of the number of Shares issued to me/us pursuant to this application.

• D. I/We agree to be bound by the Constitution of the Company, and the attached terms and conditions of the Share Purchase Plan.

• E. I/We enclose my/our cheque made payable to Korab Resources Limited.

• F. I/We certify that the aggregate of the application price for the new Korab Resources Limited Shares the subject of this application and any other Korab Resources Limited shares applied for in the 12 months prior to the date of this application under the Share Purchase Plan or any similar arrangement, does not exceed $15,000.

Return of this document with the required remittance will constitute your acceptance of the New Korab Resources Limited Shares being offered. The subscription price is 8.5 cents per share.

Payments may be made by electronic funds transfer, bank deposit, cheque, or bank draft.

If you are making payment by electronic funds transfers, or bank deposit, please quote the reference number: «Investor_Id»

Please complete the following payment details:

Drawer Bank Branch or BSB Amount

Cheques should be made payable to “Korab Resources Limited ” and crossed “Not Negotiable”

Electronic funds transfers should be made to:

Bank: Nab Limited A/c name: Korab Resources Ltd Share Issue BSB: 086-006 A/c number: 81110-1294 Reference:

Applications together with cheques, or confirmations of electronic funds transfers or deposits should be sent to:

Korab Resources Limited PO Box Z5447 Perth WA 6831

Or delivered in person to:

Korab Resources Limited Level 18, “Central Park” 152-158 St. George’s Terrace Perth WA 6000

Or emailed to:

spp@korabresources.com.au

Please ensure you submit the correct amount and allow sufficient time for your application to be received by Korab Resources Limited by the earlier of:

1. the time the Company has received applications for 26,700,000 shares in aggregate, or

2. by 5:00pm WST on Friday, 19 April 2013

Incorrect payments may result in your application being rejected.

Telephone number where we may contact you during business hours. (__) _____

Contact Name: ________

Offer Closes when applications for 26,700,000 shares in aggregate have been received by the Company, or at 5:00pm WST, Friday, 19 April 2013 whichever occurs earlier

Please note:

• Details of the Share Purchase Plan are contained in the letter from the Chairman and the Terms and Conditions sheet as well as this Share Purchase Plan Application Form. You should read all of these carefully.

• Payments may only be made in Australian dollars by electronic funds transfer or cheque or bank draft drawn on an Australian branch of a financial institution.

• Cheques or bank drafts are to be made payable to: “ Korab Resources Limited ” and crossed “Not Negotiable”.

• Cheques will be deposited on their day of receipt. Sufficient cleared funds should be held in your account as your acceptance may be rejected if your cheque is dishonoured. Receipts for payment will not be issued.

• Cash payments will not be accepted.

• Korab Resources Limited may reject any application submitted for this offer, in its absolute discretion , or if this form is not completed in accordance with this offer, or is incomplete or if the correct amount payable is not tendered with this form.

Receipt by Korab Resources Limited of this form duly completed, together with the full subscription amount, will constitute irrevocable acceptance in accordance with the terms and conditions of the Share Purchase Plan and the constitution of Korab Resources Limited by the shareholder named on this form. A signature on this form is not required.

This offer is non renounceable.

QUESTIONS AND CONTACT DETAILS

If you have any questions regarding the Share Purchase Plan or how to deal with this offer, please contact your stockbroker or professional adviser or the following:

Mr. Andrej Karpinski, Executive Chairman Korab Resources Limited Level 18, “Central Park”, 152-158 St. George’s Terrace, Perth, WA, 6000 Telephone: +61 8 9288 4467, Facsimile: +61 8 9288 4476, Email: information@korabresources.com.au