KORAB RESOURCES LIMITED — Capital/Financing Update 2015

Sep 20, 2015

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FPO SHARES Issued: 193.8 mln Market Cap: $6 mln ASX: KOR Last Price: AU¢ 3.0 BERLIN: C6S.BE Last Price: € 0.02

KORAB RESOURCES LIMITED KORAB HOUSE

www.korab.com.au

Monday, 21 September 2015

ASHBURTON DOWNS COPPER AND GOLD PROJECT INVESTMENT AGREEMENT

• MRDC to invest $500,000 into new equity in Korab’s subsidiary Australian Copper Pty Ltd, which owns and operates the Ashburton Downs project.

• MRDC to hold 75% of Australian Copper following its investment with Korab’s 25% equity free carried.

• Australian Copper Pty Ltd will explore multiple copper and gold targets at Ashburton Downs project.

• Korab will concentrate on the commercialisation and exploration of its Northern Territory assets including Geolsec phosphate and Winchester magnesite projects.

Korab Resources Ltd (“ Korab ”, or “ Company ”) ( ASX: KOR ) and its wholly owned subsidiary Australian Copper Pty Ltd (“Australian Copper”) are pleased to announce that they have reached an agreement with Mining Resources Development Corporation Pty Ltd (“MRDC”) where MRDC will invest $500,000 as new equity into Australian Copper to hold 75% of Australian Copper following the investment.

Australian Copper is the owner and operator of Ashburton Downs project located in the Pilbara region of Western Australia, 25 km south of Paraburdoo. The project adjoins mineral leases held by Rio Tinto, FMG, BHP Billiton and Norther Star, and covers approximately 800 km² following recent application by Australian Copper for additional tenements E08/2756 and E08/2757.

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Figure 1 Location of Ashburton Downs project held by Australia Copper

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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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FPO SHARES Issued: 193.8 mln Market Cap: $6 mln ASX: KOR Last Price: AU¢ 3.0 BERLIN: C6S.BE Last Price: € 0.02

KORAB RESOURCES LIMITED KORAB HOUSE

www.korab.com.au

As reported to ASX on 17 May 2012 in a report titled “Spectacular copper results from Ashburton Downs”, the project is highly prospective for various minerals including copper and gold. For more detailed description of project’s geology and historical exploration results see:

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01298084

Day-to-day operations of Australian Copper will be managed by MRDC staff, thus freeing Korab to devote its time, as well as financial and managerial resources to the development and commercialisation of its Northern Territory assets, including the Geolsec phosphate mine, and the Winchester magnesite mine both located approximately 80 km south of Darwin.

Korab’s Executive Chairman, Mr Andrej Karpinski commented that this transaction allows Korab to concentrate on Korab’s more mature assets with the view to generating near-term cash flow, while retaining upside from any discovery at the Ashburton Downs project.

“Having a dedicated team to explore and manage Ashburton Downs project gives us greater confidence that its potential may be realised in a shortest possible timeframe, and more importantly, that this will occur without distracting us from our main operational and strategic objectives” Mr Karpinski added.

Australian Copper will concentrate on exploration of multiple targets and prospects at Ashburton Downs including Mt Elephant Copper Complex.

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Figure 2 Australian Copper’s Ashburton Downs project geology

The Company believes that this investment does not require Korab shareholder approval. However, should ASX determine that Korab shareholder approval is required, such approval will be sought as soon as possible.

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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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FPO SHARES Issued: 193.8 mln Market Cap: $6 mln ASX: KOR Last Price: AU¢ 3.0 BERLIN: C6S.BE Last Price: € 0.02

KORAB RESOURCES LIMITED KORAB HOUSE

www.korab.com.au

This investment is subject to the parties executing share subscription agreement by 8 October, 2015, which date may be extended by agreement between the parties.

In a parallel development, the parties have agreed that the forfeiture action brought by MRDC and reported on 3 March, 2014, will be discontinued.

• END-

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.

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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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