KORAB RESOURCES LIMITED — Capital/Financing Update 2016

Mar 9, 2016

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FPO SHARES Issued: 196 mln Market Cap: $11 mln ASX: KOR Last Price: AU¢ 5.6 BERLIN: C6S.BE Last Price: € 0.02

KORAB RESOURCES LIMITED KORAB HOUSE

www.korab.com.au

Thursday, 10 March 2016

BRIDGING FUNDING

Korab Resources Ltd (“ Korab ”, or “ Company ”) ( ASX: KOR ) wishes to advise that it has decided to raise bridging funds to further improve its negotiating position with regard to the marketing and expansion of the Geolsec rock phosphate mine and the development of the Winchester magnesite mine. Consequently, the Company has resolved to place approximately 6.297 million fully paid ordinary shares in the capital of the Company without a disclosure document to unrelated, exempt investors under Section 708 of the Corporations Act.

The placement price of 4.5 cents each is at the volume weighted average price of 4.5 cents calculated over the last 15 trading days on which trading in the Company’s securities was recorded, and at a 19.6% discount to the last traded price for Company’s securities.

These 6.297 million placement shares will constitute a dilution of 3.11% to Korab shareholders. The issue is not underwritten and there are no costs, or fees incurred in connection with the issue. Funds raised from this placement will be used for working capital purposes, and to retire debt. The Company is raising funds by way of a placement to exempt investors rather than by way of a pro-rata offer, or a Securities Purchase Plan (SPP) offered to all existing shareholders because of the relatively small size of the issue and because of the high cost of preparing and making an offer to all shareholders.

The placement will be completed within Korab’s existing placement capacity pursuant to Listing Rules 7.1 and no shareholder approval will be required.

ABOUT KORAB RESOURCES

Korab Resources Ltd is an international mining and exploration company with operations in Australia and Europe. Korab’s projects include the Bobrikovo gold and silver deposit located in eastern Ukraine, the Geolsec phosphate rock mine located near Darwin in the Northern Territory of Australia and the nearby Winchester magnesite deposit. The Company also explores for gold and base metals in the Rum Jungle area near Darwin in the Northern Territory, and for gold and copper in the Pilbara district near Paraburdoo in Western Australia and. 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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