KORAB RESOURCES LIMITED — Capital/Financing Update 2017

Nov 7, 2017

==> picture [44 x 86] intentionally omitted <==

==> picture [49 x 86] intentionally omitted <==

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

8 Nov e mber 2017

KORAB SIGNS H EAD S OF A G REE M ENT F OR EX P ORTING 50 0 ,000 T PA O F MAG N ESIT E ROCK

Korab Resources L t d (“ Korab ”, o r “ Company ”) ( ASX: KOR ) and its su b sidiaries (“ Korab Group ” ) are pl e ased to rep o rt that Kora b has execut e d non-bindi n g Heads of Agreement ( H oA) with th e operat o r and mana g er of Darwin P ort.

The H o A envisages exporting of 5 00,000tpa o f magnesite r o ck through D arwin Port E a st Arm Wharf and in c ludes sub-le a sing of the l a nd, access t o various por t facilities, an d use of load e rs, and other equip m ent. HoA pr o vides the b a sis for the fi n al port agre e ment which will allow for exporting th e magn e sium carbon a te rock throu g h Darwin.

Issue d Capital

Shares: 288 mln Options: 4 mln Last Price: 2.6 cents Market Cap : $7.49 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

==> picture [31 x 65] intentionally omitted <==

==> picture [35 x 65] intentionally omitted <==

“This i s a major m ilestone in t he process o f commerci a lisation of t h e Winchest e r magnesiu m carbo n ate deposit”, commented Korab’s Chairman Mr. A ndrej Karpi n ski. “We lo o k forward t o succe s sfully taking this project t o production and gaining the full bene f it of Winche s ter’s superior profit p otential for K o rab, and our shareholders . ”

As announced to t he ASX on 10 March 2 0 15, expand e d pre-feasib i lity study in t o Winchester magn e site quarry a n d its potential earnings, costs, free cash f low, and net p resent value show that th e projec t has an agg r egate mine-l i fe EBITDA of $395 million , and long- r un annual EBITDA of $3 2 million / year (at 800 k t/year of roc k sales). The c apital and st a rt-up costs w ere estimate d at around $ 4 mln (i n cluding overburden strip c o sts of approximately $1.2 m illion and a c ontingency o f ~$1 million).

Winch e ster Project is located approximately 85km south of the port o f Darwin in the Norther n Territory with acces s to the port v ia Stuart Hi g hway. See A p pendix A for more details regarding th e Winch e ster Project.

CONT A CT:

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.

==> picture [17 x 48] intentionally omitted <==

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 1

==> picture [44 x 86] intentionally omitted <==

==> picture [49 x 86] intentionally omitted <==

Issue d Capital

Shares: 288 mln Options: 4 mln Last Price: 2.6 cents Market Cap : $7.49 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

==> picture [31 x 65] intentionally omitted <==

==> picture [35 x 65] intentionally omitted <==

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

==> picture [26 x 296] intentionally omitted <==

==> picture [55 x 296] intentionally omitted <==

==> picture [54 x 296] intentionally omitted <==

==> picture [55 x 296] intentionally omitted <==

==> picture [55 x 296] intentionally omitted <==

==> picture [55 x 296] intentionally omitted <==

==> picture [54 x 296] intentionally omitted <==

==> picture [55 x 296] intentionally omitted <==

==> picture [5 x 296] intentionally omitted <==

Figure 1 Location of proposed Winchester quarry relative to East Arm Wharf at Darwin Port

==> picture [29 x 258] intentionally omitted <==

==> picture [58 x 258] intentionally omitted <==

==> picture [57 x 258] intentionally omitted <==

==> picture [58 x 258] intentionally omitted <==

==> picture [57 x 258] intentionally omitted <==

==> picture [58 x 258] intentionally omitted <==

==> picture [57 x 258] intentionally omitted <==

==> picture [57 x 258] intentionally omitted <==

==> picture [26 x 258] intentionally omitted <==

Figure 2 Site locality plan showing Winchester granted mining lease near Batchelor

==> picture [17 x 48] intentionally omitted <==

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 2

==> picture [44 x 86] intentionally omitted <==

==> picture [49 x 86] intentionally omitted <==

Issue d Capital

Shares: 288 mln Options: 4 mln Last Price: 2.6 cents Market Cap : $7.49 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

==> picture [403 x 292] intentionally omitted <==

==> picture [5 x 290] intentionally omitted <==

Figure 3 Location of Geolsec and Winchester Projects relative to local infrastructure, roads, and rail

==> picture [26 x 317] intentionally omitted <==

==> picture [55 x 317] intentionally omitted <==

==> picture [54 x 317] intentionally omitted <==

==> picture [55 x 317] intentionally omitted <==

==> picture [55 x 317] intentionally omitted <==

==> picture [55 x 317] intentionally omitted <==

==> picture [54 x 317] intentionally omitted <==

==> picture [55 x 317] intentionally omitted <==

==> picture [5 x 317] intentionally omitted <==

Figure 4 Project visualisation showing Winchester quarry layout (facing East)

==> picture [31 x 65] intentionally omitted <==

==> picture [35 x 65] intentionally omitted <==

==> picture [17 x 48] intentionally omitted <==

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 3

==> picture [44 x 86] intentionally omitted <==

==> picture [49 x 86] intentionally omitted <==

Issue d Capital

Shares: 288 mln Options: 4 mln Last Price: 2.6 cents Market Cap : $7.49 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

==> picture [31 x 65] intentionally omitted <==

==> picture [35 x 65] intentionally omitted <==

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

==> picture [408 x 272] intentionally omitted <==

Figure 5 Darwin Port facilities

==> picture [26 x 273] intentionally omitted <==

==> picture [55 x 273] intentionally omitted <==

==> picture [54 x 273] intentionally omitted <==

==> picture [55 x 273] intentionally omitted <==

==> picture [55 x 273] intentionally omitted <==

==> picture [55 x 273] intentionally omitted <==

==> picture [54 x 273] intentionally omitted <==

==> picture [55 x 273] intentionally omitted <==

==> picture [8 x 273] intentionally omitted <==

Figure 6 Winchester deposit starts 6m below surface and will be operated as a DSO quarry

==> picture [17 x 48] intentionally omitted <==

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

==> picture [44 x 86] intentionally omitted <==

==> picture [49 x 86] intentionally omitted <==

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 pproximatel y 85km south of the port o f Darwin in t he Northern Territory (se e Figure 1, Figure 3 a nd Figure 2) . It is less th a n a hundred meters from sealed road, and less tha n 5km fr o m railway line linking Win c hester with Darwin port an d major Austr a lian cities.

Issue d Capital

Shares: 288 mln Options: 4 mln Last Price: 2.6 cents Market Cap : $7.49 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

==> picture [31 x 65] intentionally omitted <==

==> picture [35 x 65] intentionally omitted <==

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 resou At Indicated InferredR Total rces estimate 40% MgO Cu Resources esources s t-Off	Table 1 Mineral resou At Indicated InferredR Total rces estimate 40% MgO Cu Resources esources s t-Off
	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 2 016. 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.

==> picture [17 x 48] intentionally omitted <==

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

==> picture [44 x 86] intentionally omitted <==

==> picture [49 x 86] intentionally omitted <==

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: 288 mln Options: 4 mln Last Price: 2.6 cents Market Cap : $7.49 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 5m of c lay overburden and it ca n 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

==> picture [31 x 65] intentionally omitted <==

==> picture [35 x 65] intentionally omitted <==

==> picture [17 x 48] intentionally omitted <==

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