KORAB RESOURCES LIMITED — Capital/Financing Update 2015

Oct 5, 2015

KORAB RESOURCES LIMITED KORAB HOUSE

www.korab.com.au

FPO SHARES

Issued: 195 mln Market Cap: \$5 mln ASX: KOR Last Price: AU¢ 2.8 BERLIN: C6S.BE Last Price: € 0.02 6 October 2015

ASHBURTON DOWNS AGREEMENT UPDATE

We refer to the ASX report dated 21 September 2015, titled "ASHBURTON DOWNS COPPER AND GOLD PROJECT INVESTMENT AGREEMENT", where Korab Resources Ltd ("Korab", or "Company") (ASX: KOR) and its wholly owned subsidiary Australian Copper Pty Ltd announced an agreement with Mining Resources Development Corporation Pty Ltd ("Transaction").

Korab advises that it has received confirmation that the listing rules 11.1.2, 11.1.3 and 11.2 do not apply to the Transaction. Consequently shareholder approval for the Transaction is not required and will not be sought.

The parties are currently negotiating the shareholder and the share subscription agreements. This transaction is subject to the parties executing these agreements by 8 October, 2015, which date may be extended by agreement between the parties.

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CONTACT:

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 Geolsec phosphate quarry and Winchester magnesite deposit located south of Darwin in the Northern Territory and Bobrikovo gold and silver mine in Ukraine. The Company also explores for gold and copper at Ashburton Downs in Western Australia and for polymetallic deposits at Batchelor in the Northern Territory of Australia. 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.