KORAB RESOURCES LIMITED — Capital/Financing Update 2014

Aug 12, 2014

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KORAB RESOURCES LIMITED KORAB HOUSE

www.korab.com.au

Wednesday, 13 August 2014

SHARES

ASX: KOR Last price: AU¢ 4.8 BERLIN: C6S.BE Last price: € 0.04

OPERATIONS UPDATE - MARKETING OF PHOSPHATE ROCK

This is an operations update by Korab Resources Ltd (“Korab”, or “Company”) (ASX: KOR) and its subsidiaries (“Korab Group”).

MARKETING OF ROCK PHOSPHATE FROM GEOLSEC PROJECT (NORTHERN TERRITORY)

OPTIONS ASX: KORO Last price: AU¢ 0.4

As previously advised Korab has been continuing the marketing of the Geolsec rock phosphate (“ RP ” or “ phosphate ”) after the receipt of the permit to mine (which was announced to the market in January 2014).

Korab is pleased to advise that sampling of the rock phosphate for the potential buyers has been completed and that shipping agents are currently providing quotes for the shipping of rock phosphate to the overseas buyers.

Background

On 30 May 2014 Korab advised that it was in receipt of an unsolicited enquiry from one of the major Asian phosphate buyers and distributors for a supply of rock phosphate from Geolsec at a rate of

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Figure 1 Location of Geolsec and Batchelor Projects

225,000-250,000 tonnes per year of direct shipping phosphate rock over a multi-year period.

On 20 June 2014 advised that it has agreed to provide the above potential buyer with sample of the phosphate rock for testing (at their expense).

On 29 July 2014 Korab advised that one of the major Asian phosphate buyers and distributors has requested Korab to provide quotation on additional supplies of bulk rock phosphate for another of their clients who is planning to buy annually around 3.2 million tonnes of bulk phosphate rock.

Furthermore, Korab advised that it has received additional request for samples to be provided to four additional domestic and overseas users and distributors.

In addition to the above potential multi-year sale agreements, Korab is working on a Framework Agreement to Supply Rock Phosphate submitted by Korab Group to another potential buyer. The agreement is still being worked on and some of the terms still need to be resolved. The Agreement

envisions supply of up to 20,000 tonnes of RP per annum for 3 years with an option to renew for further 3 years.

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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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KORAB RESOURCES LIMITED KORAB HOUSE

www.korab.com.au

Korab will advise the ASX regarding the progress of the marketing of the phosphate as and when required.

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OPTIONS ASX: KORO Last price: AU¢ 0.4

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Figure 2 Geolsec’s location near Batchelor. Deposit is close to a highway, rail, water, gas, and power. This makes the Geolsec arguably the best located rock phosphate project in Australia.

About Geolsec Phosphate Project

Location of the Geolsec project, just south of the port of Darwin and within a short distance to majority of Asian ports (see Figures 1 and 2) gives Geolsec significant advantage over phosphate producers located in Africa and the Middle East when supplying Asian and Australian buyers and distributors. Furthermore, being located next to trans-continental rail-way link and highway connecting to Ord River agricultural region, Queensland, NSW and Victoria, Geolsec has excellent access to the main agricultural regions in all Australian states.

The primary target markets for the sales of the direct shipping phosphate rock, ground-up phosphate rock and phosphate rock blends are plantations and pastoralists around Darwin (NT), mango growers in Ord River (WA), as well as organic farmers in SA, Eastern States and WA and Asian distributors and end users. Geolsec aims to supply environmentally-friendly organic fertiliser to the agricultural sector in the Northern Territory and beyond and thus support expansion of sustainable agriculture. Geolsec direct application RP has a potential to provide substantial ongoing benefits to the environment by improving soil fertility and improving nutritional quality of produce grown on fields fertilised with RP and rock dust products. More information about Geolsec’s benefits and the benefits of direct application of phosphate rock to soils is available from Korab website at www.korabresources.com.au/geolsec

Geolsec rock phosphate deposit is located approximately 3km west of the town of Batchelor and approximately 70km from Darwin. The project is accessible by sealed road all year round and is located near trans-continental highway linking Darwin with Adelaide, the national rail and road network, high-voltage power and a gas pipeline giving it the best logistics of any phosphate rock

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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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KORAB RESOURCES LIMITED KORAB HOUSE

www.korab.com.au

project in Australia. The deposit outcrops on a hill with no pre-strip required and can be mined using a low-cost open cut method.

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CONTACT:

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

ABOUT KORAB RESOURCES

OPTIONS ASX: KORO Last price: AU¢ 0.4

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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 in eastern Ukraine, Geolsec phosphate rock deposit and Winchester magnesite deposit at Batchelor in the Northern Territory of Australia. 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 at www.korab.com.au. Korab’s shares are traded on Australian Securities Exchange (ASX) and on the Berlin Stock Exchange (Berliner Börse) through Equiduct electronic trading platform.

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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