KORAB RESOURCES LIMITED — Capital/Financing Update 2013

Jan 2, 2013

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KORAB RESOURCES LIMITED

KORAB HOUSE

www.korab.com.au

3 January 2013

WINCHESTER MAGNESITE SALE ADDITIONAL INFORMATION

In response to inquiries received in the past few days, Korab Resources Ltd (ASX: KOR) (“Korab” or “Company”) is pleased to provide the following additional information in relation to the sale of the Winchester magnesite deposit announced to the market on 31 December 2012.

KEY POINTS

• Korab is selling the Winchester magnesite deposit which is a small part covering approximately 2% of the overall area of the Batchelor project (see diagram below).

ISSUED CAPITAL 123 MLN shares 44 MLN options

JORC COMPLIANT GOLD RESOURCE 2.38 MLN ounces

• The Winchester magnesite deposit is located within a 3.4 square km surveyed area which is to be excised from the Batchelor project and transferred to Augur Investments OÜ. This surveyed area covers representing approximately 2% of the total area of the Batchelor project.

• The Batchelor project covers 171 square km and it is being retained by Korab (other than the excised area highlighted in green in the diagram below).

• Work completed to date within the Winchester area that is being sold was limited to rehabilitation of the site, update of the magnesite feasibility study and various desk studies.

• All field exploration work conducted to date by Korab within the Batchelor project was located within the area that is being retained by Korab and is outside of the area which is being sold.

• Korab is currently seeking JV partners to further explore the Batchelor project.

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ACN 082 140 252 Level 1, Suite 6 100 Mill Point Rd, South Perth, WA, 6151 Australia PO Box 195, South Perth, WA, 6951 Australia Tel (08) 9474 6166 Fax (08) 9474 6266

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ABOUT WINCHESTER MAGNESITE DEPOSIT (100% KORAB)

The Winchester magnesite deposit is located 70km south from Darwin in the Northern Territory, with access to excellent basic infrastructure and logistics such as rail, gas, a sealed highway and high voltage power. Previous drilling at Winchester to a depth of 100m outlined a high grade zone of magnesite mineralisation 7.5km long and 500m wide. Mineralisation is open at depth. Close spaced drilling over the area 550m by 300m outlined an indicated resource of 12.2Mt at 43.1% MgO and an inferred resource of 4.4Mt at 43.6% Mg

In 2012, Tenova/Bateman Engineering undertook an update of the feasibility study previously completed on Winchester in 2001 by a Bateman/Multiplex Joint Venture. Results suggest that at current magnesium price and at the current labour costs the processing of magnesite into magnesium metal would not be economical if the smelter was to be built and operated in Australia. However, it may be economical to develop Winchester as a magnesite mining and shipping operation for off‐shore processing.

-ENDS-

FOR FURTHER INFORMATION, CONTACT :

Andrej Karpinski Executive Chairman

(08) 9474 6166

ISSUED CAPITAL 123 MLN shares 44 MLN options

JORC COMPLIANT GOLD RESOURCE 2.38 MLN ounces

Competent Person: The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled and reviewed by Andrew Hawker, who is a principal geological consultant for HGS Australia Exploration Services 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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