KORAB RESOURCES LIMITED — Capital/Financing Update 2015

Jun 24, 2015

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FPO SHARES Issued: 179 mln Market Cap: $5 mln ASX: KOR Last Price: AU¢ 3.0 BERLIN: C6S.BE Last Price: € 0.01

KORAB RESOURCES LIMITED KORAB HOUSE

www.korab.com.au

Thursday, 25 June 2015

RIGHTS ISSUE OFFER COMPLETED SUCCESSFULLY

AND NOTICE OF SHORTFALL

Korab Resources ( ASX: KOR ; “ Korab ” or “ Company ”) is pleased to advise that the nonrenounceable pro-rata rights issue offer of up to 50,750,435 shares at $0.03 each, which was announced to ASX on 26 May 2015 (“Offer”), has closed.

On 25 June 2015, the Company issued and allotted 26,373,725 shares and has instructed its share registrar to despatch the holding statements to shareholders. Valid applications for 6,102,017 shares were received from Korab shareholders, and 271,708 shares were allotted to the nominee who was appointed as nominee for the sale of the entitlements of excluded foreign shareholders. An application for 20,000,000 shares was received by Korab from the underwriter, Rheingold Investments Corporation Pty Ltd ( Rheingold ) in relation to the underwritten portion of the Offer pursuant to the terms of the Underwriting Agreement dated 25 May 2015.

The resulting shortfall of 24,376,710 shares will be available for a placement at the discretion of directors within 3 months from 22 June 2015 at a price of not less than $0.03 per share.

Korab Resources Executive Chairman, Mr Andrej Karpinski, said the Company was very pleased to have successfully concluded the Offer.

“This share issue offered all shareholders on an equal basis an opportunity to gain greater exposure to any future upside from Korab’s activities.” Mr Karpinski said.

“I am also personally very pleased to show my own confidence in Korab’s future by partially underwriting the offer through a company I control and consequently taking up part of those shares shareholders chose not to apply for. I’m excited about the path ahead for Korab as we continue to develop and realise value from the Company’s highly valuable project portfolio.”

As disclosed in the Offer Memorandum lodged with ASX on 26 May 2015, Rheingold, a company associated with Mr Karpinski, partly underwrote the share issue. As set out in the Offer Memorandum for the rights issue, Rheingold was entitled to use debt owed by the Company to Rheingold to offset the subscription monies for all or part of underwritten portion of the Offer. Rheingold has elected to use $600,000 of the debt owed by the Company to Rheingold to offset the full subscription monies for the underwritten shares and therefore the debt owed by the Company to Rheingold will be reduced by $600,000. Rheingold has also waived 35% of the underwriting fee it was entitled to.

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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 gold and silver mine at Bobrikovo in Ukraine, Geolsec

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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: 179 mln Market Cap: $5 mln ASX: KOR Last Price: AU¢ 3.0 BERLIN: C6S.BE Last Price: € 0.01

KORAB RESOURCES LIMITED KORAB HOUSE

www.korab.com.au

phosphate mine located 80km from Darwin in the Northern Territory of Australia and Winchester magnesite deposit located 75km from Darwin 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 Rum Jungle mineral field 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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