KORAB RESOURCES LIMITED — Capital/Financing Update 2016

Jun 27, 2016

Korab Resources Limited ACN 082 140 252

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( Korab , or the Company )

ASX ANNOUNCEMENT

NOTICE UNDER SECTION 708A(5)(e) OF THE CORPORATIONS ACT

Korab Resources Limited (ASX: KOR) gives notice under section 708A(5)(e) of the Corporations Act 2001 (Cth) ( Act ) in relation to the 5,434,783 fully paid ordinary shares in the Company issued without a disclosure document to exempt investors under section 708 of the Act, at a price of 2.3 cents per share on 28 June 2016 ( Placement ).

The Company advises that:

• (1) the securities offered under the Placement were issued without disclosure to investors under Part 6D.2 of the Act;

• (2) as at the date of this notice:

  • (a) the Company has complied with the provisions of Chapter 2M of the Act as they apply to the Company;

  • (b) section 674 of the Act; and

  • (c) other than the information listed below there is no information that is “excluded information” within the meaning of section 708A(7) of the Act that has not already been disclosed to investors generally or as required under section 708A(6)(e) of the Act:

    • (i) We refer to ASX report (dated 23 March 2016) regarding an agreement between the Company and Mr. Wang, where interests associated with Mr. Wang would provide the $6mln funding for the development of the Winchester magnesium carbonate mine subject to Korab, or its subsidiaries securing additional offtakes for the magnesium carbonate rock. Korab is pleased to advise that it has reached an in principle agreement with Mr. Wang where the $6mln funding will be provided without the precondition of Korab having to secure additional offtakes but only be subject to legal and technical due diligence by the funders. This in principle agreement is subject to signing of an written amendment to the Agreement.

Dated this 28 June 2016

Andrej K. Karpinski Executive Chairman Korab Resources Limited