KORAB RESOURCES LIMITED — Capital/Financing Update 2017

Nov 16, 2017

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K O RA B R E SO U RC E S LIMI T ED KORAB H OUSE www.korab.co m .au

17 No v ember 2017

KORAB C OMM E NCES UPDATE OF WI N CHE S TER P RE-F E ASIBI L ITY STUDY

Korab Resources L td (“ Korab ”, or “ Company ”) ( ASX: KOR ) is ple a sed to report that it ha s comm e nced an up d ate of the W i nchester pre - feasibility study (PFS) as s ess how (an d if) its result s would be affected b y :

1. Recent sh a rp increase i n global magnesium carbonate prices

2. Data recei v ed from end u sers, shipping agents, Port of Darwin, a n d other parti e s

3. Potential c h anges to op e n pit contour s

4. Potential c h anges to mi n e layout

Issue d Capital

Shares: 297 mln Options: 4 mln Last Price: 3.0 cents Market Cap : $8.91 Mln ASX: KOR BERLIN: C6S.BE

P rojects

Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3) Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)

Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (Ashburton, WA) Au, Cu Karratha (Pilbara, WA) Au, Co, Cu Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li Bobrikovo (UKR) Au, Ag, Pb

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As re p orted in the S eptember Q u arter Activiti e s Report, m a gnesium car b onate mark e t continues t o streng t hen, with ra w magnesite, and magne s ia products’ prices climbi n g through t h e September quarte r . Closures of magnesite m ines and ma g nesia plants in China hav e led to signif i cant shortag e of raw and interme d iate material s and increa s e in their pri c es. Based o n the information emergin g from C hina’s main producing re g ions, this situation will probably conti n ue into the s econd half of 2018.

As pr e viously reported, Korab has been in discussion w ith several end users o f magnesiu m carbo n ate rock reg a rding long t e rm sales an d offtakes. These discussi o ns (which a r e progressin g well al t hough they a re incomplet e ) have provided Korab w i th significant amount of n e w and useful inform a tion.

Korab has also bee n in discussio n s with shipping agents, P o rt of Darwin, and other pa r ties, includin g mining engineers, q uarry operat o rs, relevant r egulatory bo d ies, and oth e r stakeholders. Korab ha s made good progre s s with these discussions and has rec e ntly reached a major mil e stone signin g Heads of Agreeme n t with the o p erator and m anager of Darwin Port ( a nnounced o n 8 November 2017). Korab has also be e n working o n evaluating v arious optio n s for the qu a rry layout, pit design (se e Figure 4 for visualisation of cur r ent plans), a nd other as p ects of the o peration with the view t o maximising the earl y income stre a m whilst at t h e same time reducing capi t al/ start-up c o sts (CAPEX), and w o rking capital requirements .

Consequently, and a lso as part o f the “notice- o f-intent-to-mine” progression, Korab ha s commence d updat e of the Win c hester PFS to assess w hat impact (if any) poten t ial changes to the abov e param e ters may ha v e on the ec o nomics of W i nchester quarry, its EBIT D A, NPV, IRR, CAPEX, an d working capital nee d s. Results of the update w ill be reporte d to the mark e t when avail a ble. This PF S updat e will be base d on the indicated mineral resource only. Current esti m ated miner a l resources at Winch e ster, including both indica t ed and inferr e d categories, are shown in the following table:

At 40% MgO Cu t-Off	MgCO Mass	MgO grade
	‘000 To nnes	%
Indicated Resources	12,2 00	43.1
InferredR esources	4,4 00	43.6
Total	16,6 00	43.2

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20 P R OWSE STRE E T, WEST PE R TH, WA, 600 5 , AUSTRALIA PO B OX 1958, WE S T PERTH, W A , 6872, AUST R ALIA TEL ( 08) 9474 6166 FAX (08) 93 2 2 6333 ACN 082 140 252

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K O RA B R E SO U RC E S LIMI T ED KORAB H OUSE www.korab.co m .au

There has been no change to th e Winchester m ineral resource estimate s ince it was l a st reported i n the A n nual Report 2 017. This in f ormation wa s prepared a n d first disclo s ed under th e JORC Cod e 2004 o n 17 July 2007. It has no t been updat e d since to c o mply with th e JORC Cod e 2012 on th e basis t hat the infor m ation has n o t materially c hanged sinc e it was last re ported. The author of thi s report is not aware of any new i n formation or d ata that materially affects the informati o n included i n the re p ort released on 17 July 2007 and, in the case of mineral res o urces that all the materi a l assumptions and te c hnical para m eters underpinning the es t imates in the report relea s ed on 17 Jul y 2007 c ontinue to apply and have not materiall y changed. T h e form and c o ntext in whi c h the finding s of the r eport releas e d on 17 July 2 007 are presented have n o t been mate r ially modified .

As reported on 10 M arch 2015, p revious Winchester PFS update has sh o wn that the p roject has a n aggre g ate mine-life EBITDA of $ 395 million, and long-run annual EBI T DA of $32 m illion/year (at 800kt/ y ear of rock sales). The capital and star t -up costs were estimated a t around $4 mln (includin g overb u rden strip co s ts of approxi m ately $1.2 million and a c o ntingency of ~ $1 million).

Winch e ster Project is located approximately 65km south of the port o f Darwin in the Norther n Territory (85km by r o ad). See Ap p endix A for m ore details regarding the W inchester Pr o ject.

CONT A CT:

Issue d Capital

Shares: 297 mln Options: 4 mln Last Price: 3.0 cents Market Cap : $8.91 Mln ASX: KOR BERLIN: C6S.BE

P rojects

Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3)

Andrej K. Karpinski, Executive C h airman - Aus t ralia: (08) 94 7 4 6166, Inter n ational: +61 8 9474 6166

ABOU T KORAB R E SOURCES

Korab Resources Ltd is an intern a tional minin g and exploration company with operatio n s in Australi a and E urope. Kora b ’s projects i nclude Winc h ester magn e sium carbo n ate deposit and Geolse c phosp h ate rock deposit at Batch e lor in the Northern Territor y of Australia as well as a g old and silver deposit at Bobriko v o in easter n Ukraine. T h e Company also explor e s for gold and copper at Ashbu r ton Downs/ M t. Elephant i n Western Au s tralia, and f o r gold, copp e r, lithium, tin, and tantalu m at Karratha, and M a rble Bar/Nullagine in We s tern Australia. Korab als o explores fo r gold, cobalt, silver, lead, zinc, c o pper, nickel, lithium, and tin at Batch e lor and Gre e n Alligator in the Norther n Territory. More inf o rmation ab o ut Korab’s p rojects can be sourced from Korab ’ s website at www. k orab.com.au. Korab’s shar e s are traded on Australia n Securities E xchange (ASX) and on th e Berlin S tock Exchange (Berliner B örse) throug h Equiduct electronic tradin g platform.

Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)

Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (Ashburton, WA) Au, Cu

Karratha (Pilbara, WA) Au, Co, Cu Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li Bobrikovo (UKR) Au, Ag, Pb

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20 P R OWSE STRE E T, WEST PE R TH, WA, 600 5 , AUSTRALIA PO B OX 1958, WE S T PERTH, W A , 6872, AUST R ALIA TEL ( 08) 9474 6166 FAX (08) 93 2 2 6333 ACN 082 140 252

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Issue d Capital

Shares: 297 mln Options: 4 mln Last Price: 3.0 cents Market Cap : $8.91 Mln ASX: KOR BERLIN: C6S.BE

P rojects

Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3) Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)

Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (Ashburton, WA) Au, Cu Karratha (Pilbara, WA) Au, Co, Cu Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li Bobrikovo (UKR) Au, Ag, Pb

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K O RA B R E SO U RC E S LIMI T ED KORAB H OUSE www.korab.co m .au

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Figure 1 Location of Winchester deposit relative to Darwin Port and road network.

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Figure 2 Site locality plan showing Winchester mining lease relative to Batchelor town, airport, and roads.

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20 P R OWSE STRE E T, WEST PE R TH, WA, 600 5 , AUSTRALIA PO B OX 1958, WE S T PERTH, W A , 6872, AUST R ALIA TEL ( 08) 9474 6166 FAX (08) 93 2 2 6333 ACN 082 140 252

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Issue d Capital

Shares: 297 mln Options: 4 mln Last Price: 3.0 cents Market Cap : $8.91 Mln ASX: KOR BERLIN: C6S.BE

P rojects

Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3) Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)

Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (Ashburton, WA) Au, Cu Karratha (Pilbara, WA) Au, Co, Cu Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li Bobrikovo (UKR) Au, Ag, Pb

K O RA B R E SO U RC E S LIMI T ED KORAB H OUSE www.korab.co m .au

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Figure 3 Location of Winchester Magnesite Projects relative to Batchelor town, local infrastructure, motels, roads, rail, airport, and power. Geolsec Phosphate Project is in the foreground.

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Figure 4 Winchester quarry 3D visualisation showing currently planned layout (facing east towards Stuart Hwy)

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20 P R OWSE STRE E T, WEST PE R TH, WA, 600 5 , AUSTRALIA PO B OX 1958, WE S T PERTH, W A , 6872, AUST R ALIA TEL ( 08) 9474 6166 FAX (08) 93 2 2 6333 ACN 082 140 252 PAGE 4

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Issue d Capital

Shares: 297 mln Options: 4 mln Last Price: 3.0 cents Market Cap : $8.91 Mln ASX: KOR BERLIN: C6S.BE

P rojects

Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3) Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)

Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (Ashburton, WA) Au, Cu Karratha (Pilbara, WA) Au, Co, Cu Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li Bobrikovo (UKR) Au, Ag, Pb

K O RA B R E SO U RC E S LIMI T ED KORAB H OUSE www.korab.co m .au

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Figure 5 Darwin Port bulk handling facilities include conveyor-fed travelling gantry loader with 2,000T/H loading capacity (in foreground).

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Figure 6 Winchester magnesite mineralisation starts 5-6m below surface and is covered by soft clay. Project will be operated as a simple quarry.

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20 P R OWSE STRE E T, WEST PE R TH, WA, 600 5 , AUSTRALIA PO B OX 1958, WE S T PERTH, W A , 6872, AUST R ALIA TEL ( 08) 9474 6166 FAX (08) 93 2 2 6333 ACN 082 140 252 PAGE 5

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K O RA B R E SO U RC E S LIMI T ED KORAB H OUSE www.korab.co m .au

APPENDIX B

WINC H ESTER PR O JECT TECH N ICAL INFO R MATION

On 10 March 2015, Korab released the result s of the expa n ded pre-feas i bility study into Winchester magn e site quarry a n d its potentia l earnings, co s ts, free cash f low, and net p resent value. Result s of this exp a nded study h ave shown t h at the proje c t has very a t tractive econ o mics with a n aggre g ate EBITDA of $395 ml n over quarry life and att r active long-r u n annual E B ITDA of $3 2 mln/year (at 800kt/ y ear of rock s ales). The c a pital and sta r t-up costs w e re estimated at around $ 4 mln (i n cluding quarry costs of ap p roximately $1.2 mln and a contingency of ~$1mln). F ull text of th e report can be acces s ed through t h e link below:

http:// w ww.asx.com.au/asx/statist i cs/displayAn n ouncement. d o?display=p d f&idsId=016 0 6646

Deposit is located a p proximately 6 5km south of the port of D arwin in the N orthern Terri t ory, (85km b y road). For location details pleas e see Figure 1, Figure 2, and Figure 3. It is less than a hundre d meter s from sealed road, and les s than 5km fr o m railway lin e linking Winchester with D a rwin port an d major A ustralian citi e s.

Issue d Capital

Shares: 297 mln Options: 4 mln Last Price: 3.0 cents Market Cap : $8.91 Mln ASX: KOR BERLIN: C6S.BE

The C ompany con f irms that all material assumptions un d erpinning th e production target in that annou n cement cont i nue to apply a nd have not materially ch a nged. This e x panded study included th e estimates of revenues and vario u s additional m aterial costs such as hau l age, port ch a rges, interest, debt repayment, r o yalties, over h eads, etc. a nd evaluate d the econo m ics of Win c hester quarr y assuming its develo p ment as a di r ect shipping o re (DSO) op e ration.

This p re-feasibility study was b a sed on the indicated mineral resour c e only. Current estimate d miner a l resources a t Winchester, including bo t h indicated and inferred c a tegories, ar e shown in th e followi n g table:

Table 1 Mineral resources estimate

P rojects

Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3)

Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)

Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (Ashburton, WA) Au, Cu Karratha (Pilbara, WA) Au, Co, Cu Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li Bobrikovo (UKR) Au, Ag, Pb

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At 40% MgO Cu t-Off	MgCO Mass	MgO grade
	‘000 To nnes	%
Indicated Resources	12,2 00	43.1
InferredR esources	4,4 00	43.6
Total	16,6 00	43.2

There has been no change to th e Winchester m ineral resource estimate s ince it was l a st reported i n the A n nual Report 2 017. This in f ormation wa s prepared a n d first disclo s ed under th e JORC Cod e 2004 o n 17 July 2007. It has no t been updat e d since to c o mply with th e JORC Cod e 2012 on th e basis t hat the infor m ation has n o t materially c hanged sinc e it was last re ported. The author of thi s report is not aware of any new i n formation or d ata that materially affects the informati o n included i n the re p ort released on 17 July 2007 and, in the case of mineral res o urces that all the materi a l assumptions and te c hnical para m eters underpinning the es t imates in the report relea s ed on 17 Jul y 2007 c ontinue to apply and have not materiall y changed. T h e form and c o ntext in whi c h the finding s of the r eport releas e d on 17 July 2 007 are presented have n o t been mate r ially modified .

Marke t for magnesium carbonat e has been g rowing at a s trong histori c al trend rat e over sever a l decad e s with the tr e nd pointing t o yet higher consumption over coming years. The main uses for magn e site is in pro d uction of vari o us types of m agnesium o x ides. Magne s ium carbona t e is also use d to pro d uce magnes i um metal w h ich is the lig h test of all m e tals, being a bout two-thir d s lighter tha n aluminium but stronger then ste e l. Magnesiu m is non-toxic, non-magneti c , has high-i m pact strengt h and is resistant to d e nting.

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20 P R OWSE STRE E T, WEST PE R TH, WA, 600 5 , AUSTRALIA PO B OX 1958, WE S T PERTH, W A , 6872, AUST R ALIA TEL ( 08) 9474 6166 FAX (08) 93 2 2 6333 ACN 082 140 252 PAGE 6

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K O RA B R E SO U RC E S LIMI T ED KORAB H OUSE www.korab.co m .au

The main sectors w here magne s ium oxide is used include: refractory b r icks which are used to lin e steel a nd iron furn a ces; produc t ion of flame retardants; production of fire resistant and moistur e resistant building materials like m ag-wall, Mg O board and mag-cement ; production o f magnesiu m alloys used exte n sively in c a rs, airplane s , tanks, A P C-s and o ther defenc e equipment; hydro m etallurgy (primarily for nic k el and cobal t production); water purific a tion and soil treatment an d feedst o ck.

Experts expect that the market fo r magnesium carbonate will continue to e xpand due t o the growth i n all the s e sectors, h o wever the p o tential game changer is the recent dev e lopment of m agnesium-io n batteri e s which hav e 8 to 12 tim e s greater ca p acity than lit h ium-ion batt e ries and can be charged i n as littl e as 36 minut e s. Magnesium-ion battery ' s charge/dis c harge efficie n cy is 5 times higher than a lithium-ion battery. Another adv a ntage of m a gnesium-ion batteries is their ability t o perform at tempe r atures as lo w as -30°C a n d as high as +55°C whereas lithium-ion batteries ce a se to functio n at aro u nd -15°C. A d ditional ben e fit of magne s ium-ion batteries is that th e y do not us e graphite an d conse q uently are n o t dependant o n supply of t h is relatively e xpensive ma t erial.

Issue d Capital

Shares: 297 mln Options: 4 mln Last Price: 3.0 cents Market Cap : $8.91 Mln ASX: KOR BERLIN: C6S.BE

The k e y determinant of the succ e ss of a magnesite project is the quality o f its magnes i um carbonat e rock a n d its proximi t y to transpor t infrastructur e . Winchester magnesite p r oject has th e advantage of being one of the highest grade magnesium carbonate d e posits and a lso being lo c ated in clos e proxi m ity to rail, ro a ds, and a m ajor deep s e a port. The d eposit is a s hallow, flat l y ing ore bod y cover e d by approxi m ately 5-6m o f clay overbu r den and it can be mined u s ing easy op e n cut method, essen t ially as a qua r ry.

P rojects

Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3)

Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)

Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (Ashburton, WA) Au, Cu Karratha (Pilbara, WA) Au, Co, Cu Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li Bobrikovo (UKR) Au, Ag, Pb

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20 P R OWSE STRE E T, WEST PE R TH, WA, 600 5 , AUSTRALIA PO B OX 1958, WE S T PERTH, W A , 6872, AUST R ALIA TEL ( 08) 9474 6166 FAX (08) 93 2 2 6333 ACN 082 140 252 PAGE 7