KORAB RESOURCES LIMITED — Capital/Financing Update 2015

Feb 22, 2015

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FPO SHARES

ASX: KOR Last price: AU¢ 4.1 BERLIN: C6S.BE Last price: € 0.02

KORAB RESOURCES LIMITED KORAB HOUSE

www.korab.com.au

23 February 2015

WINCHESTER OFFTAKE AND MARKETING RIGHTS

We refer to the three announcements regarding Winchester magnesite project which were released on 18 February 2015, 19 February 2015 and 20 February 2015 by Korab Resources Ltd (“Korab”, or “Company”) (ASX: KOR) and its wholly owned subsidiary AusMag Pty Ltd (“AusMag”)

In response to shareholder enquiries the Company would like to provide additional information regarding the marketing and offtake rights received by Rescap Investments as part of the transaction announced on 18 February 2015.

Offtake and marketing rights to 25% of the magnesite to be produced from the Winchester magnesite mine for a period of 7 years do not give Rescap the ownership of 25% of magnesite produced from the mine over this period.

Offtake and marketing rights allow ResCap to transact 25% of mine output for 7 years. AusMag will receive the full sale price on a fully transparent basis less the fee payable to ResCap. Under the agreement the fee is a percentage of sale price received by AusMag consistent with industry standards.

Related announcements regarding Winchester magnesite project and the transaction can be accessed through the links below:

"Rescap and Tennant back Korab developing the Winchester magnesite project" http://www.asx.com.au/asX/statistics/displayAnnouncement.do?display=pdf&idsld=01600734

"Winchester magnesite confirmation" http://www.asx.com.au/asX/statistics/displayAnnouncement.do?display=pdf&idsld=01600257 "Winchester offtake, financing, operational support" http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsld=01600071

WINCHESTER MAGNESITE MINE STUDY

On 13 January 2015 Korab provided to the market the results of the pre-feasibility study to develop Winchester magnesite deposit as a direct shipping ore (DSO) operation. Results released on 13 January 2015 have shown a low CAPEX of AU$4 million and a long-life mining operation with the capacity to supply 800,000 tonnes of crushed direct shipping magnesite rock per year at a cost of AU$$21 per tonne. This 800,000 tonnes per year capacity is based on single day shift operation and can be easily expanded should this be required.

Magnesite rock prices range between US$80 and US$140 per tonne. Winchester mine is designed to supply a raw magnesite rock crushed on site with no additional processing.

Full text of the feasibility study announcement can be accessed through the link below:

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01590863

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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

ASX: KOR Last price: AU¢ 4.1 BERLIN: C6S.BE Last price: € 0.02

KORAB RESOURCES LIMITED KORAB HOUSE

www.korab.com.au

Winchester is located approximately 85km south of Darwin in the Northern Territory, less than a hundred meters from sealed road, and less than 5km from railway line. The deposit is a shallow, flat laying body covered by up to 5 meters of soil overburden. It can be mined at a low cost by open cut method.

The study is now being expanded to quantify the additional material factors including estimated selling prices for magnesite, foreign exchange rates, and various additional costs; including costs of haulage, port loading, marketing, royalties, and others.

The inclusion of quantified material factors will allow for the estimation of free cashflow from the mine operations and the estimation of its net present value.

Batchelor project consists of exploration licence EL29550 (100% Korab Resources Ltd) and a Mineral Lease application ML30587 (100% AusMag Pty Ltd, a wholly owned subsidiary of Korab Resources Ltd). The project is located near town of Batchelor, some 70 km south of Darwin in the Northern Territory and the project area extends for approximately 20 km.

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 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.

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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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