KORAB RESOURCES LIMITED — Capital/Financing Update 2015

Feb 19, 2015

==> picture [92 x 84] intentionally omitted <==

FPO SHARES

ASX: KOR Last price: AU¢ 3.7 BERLIN: C6S.BE Last price: € 0.02

KORAB RESOURCES LIMITED KORAB HOUSE

www.korab.com.au

20 February 2015

JOINT PRESS RELEASE REGARDING WINCHESTER MAGNESITE PROJECT

Please find attached press release issued by Rescap Investments Pty Ltd, Tennant Metals Pty Ltd, AusMag Pty Ltd and Korab Resources Ltd (ASX:KOR) regarding development of the Winchester magnesite project held by Korab’s wholly owned subsidiary AusMag Pty Ltd.

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.

==> picture [66 x 65] intentionally omitted <==

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

PAGE 1

==> picture [109 x 45] intentionally omitted <==

Press Release

RESCAP AND TENNANT BACK KORAB DEVELOPING THE WINCHESTER MAGNESITE PROJECT

Sydney, NSW, February 20, 2015

Rescap Investments P/L (“Rescap”), a resources focussed investment and offtake company has entered into an off-take arrangement for 25% of the mined production with AusMag P/L (“AusMag”), the wholly owned subsidiary of Korab Resources Ltd (ASX:KOR), and the owner of the Winchester magnesite project located 70km south of Darwin in the Northern Territory.

Ausmag has undertaken to allocate additional off-take to Rescap on the provision of a comprehensive financing package acceptable to AusMag within the next 60 days, during which time Rescap will undertake detailed due diligence.

The deal was introduced to Rescap by Justin Boylson the WA general manager of Tennant Metals P/L (“Tennant”), one of Australia’s oldest and most established physical metal trading companies. Through this deal, Tennant will be allocated responsibility for the management of the trading, as well as the provision of certain technical and logistic services to AusMag.

Mr. Dennis Karp, Managing Director of Rescap commented: “This transaction is quite unique in the Australian resources landscape as it marks the coming together of an off-take focused investor working with a traditional trader and emerging producer. We are excited to be working with AusMag, Korab and Tennant on this project, as we collectively endeavour to bring this asset into production within the coming 12 months.”

Mr. Justin Boylson, WA general manager of Tennant commented: “We see this as a great opportunity to use Tennant’s expertise and know-how accumulated over close to 50 years of operations, to add value to this project for the benefit of all parties.”

Mr. Andrej Karpinski, Executive Chairman of Korab commented: “We are delighted to be working with Rescap and Tennant on this project and we see this as a major step forward for AusMag and Korab.”

Rescap Investments Pty Ltd - Level 5 Grafton Bond Building, 201 Kent St Sydney NSW Australia 2000 ACN 119 061 522 tel +61282200488

www.rescapinvestments.com.au