KORAB RESOURCES LIMITED — Capital/Financing Update 2017

Oct 24, 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

25 Oc t ober 2017

KORAB C LEAR S ANO T HER H URD L E TO PHOS ROCK C O MME R CIALI S ATION

Korab Resources L t d (“ Korab ”, o r “ Company ” ) ( ASX: KOR ) is pleased t o advise the market that it has re c eived a request to provid e sample of p h osphate rock from Geolse c project for fi n al grindabilit y tests following a long term test - work progra m completed to date by a major che m ical fertiliser s produ c er (CFP).

Following on the p o sitive result s of multiple tests run by this CFP on the rock alr e ady supplie d (including most rec e ntly - the re a ctivity tests), Korab has b e en asked to provide final sample of th e rock in granule size in which this rock is to be u ltimately supplied on a co m mercial bas i s so CFP ca n compl e te the grinda b ility tests. T h e sample is expected to be supplied sho r tly.

Korab has been en g aged with this CFP since e arly 2017 (a s disclosed in Korab’s Quarterly reports). This i n cluded supplying multipl e samples fo r a series of tests and e valuations a n d conductin g multiple meetings t o discuss th e operational aspects of t h e project in c luding quarr y ing, shipping, logisti c s, costing, et c .

Issue d Capital

Shares: 288 mln Options: 4 mln Last Price: 2.7 cents Market Cap : $7.78 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

Korab remains very positive abo u t the progress of these te s ts and negoti a tions and th e ir potential t o transl a te into a steady cash flow f rom the Geolsec phospha t e rock quarr y . Once the fi n al grindabilit y test is completed (and subject to its positive r e sults), it is e n visaged that Korab and C FP will aim t o reach a decision regarding a co m mercial agr e ement to supply phosph a te rock for processing int o fertilis e rs.

Geols e c phos rock is located on a granted mi n ing lease wit h direct acce s s to Darwin p ort via seale d roads. Local infrastructure includ e s power, ga s pipeline, mo t el accommo d ation, rail, a n d airport. Du e to Ge o lsec’s proxi m ity to Winch e ster magnes i um carbonat e deposit the r e is a poten t ial to achiev e signifi c ant operating cost savings by sharing th e equipment, quarry mana g ement, and l a bour.

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Figure 1 Location of Geolsec phosphate rock relative to Batchelor, Winchester, and Darwin

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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 1

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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

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 dep o sit at Batch e lor in the Nor t hern Territor y of Australia, as well as a g old and silver deposit at Bobrikov o in eastern U kraine. The C ompany also explores for c obalt, gold, n ickel, copper, zinc, l e ad and silver, as well as s p ecialty mine r als at Batchelor and at Gr e en Alligator i n the Norther n Territory, for gold a n d copper at M t. Elephant/ A shburton Do w ns in Ashbur t on Basin ne a r Paraburdoo, and f o r gold, copp e r, and lithiu m near Karr a tha, Mable B ar, and Nullagine in Pil b ara, Wester n Australia. More information ab o ut Korab’s projects 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.

DISC L AIMER AND CAUTIONAR Y STATEME N T

Issue d Capital

Shares: 288 mln Options: 4 mln Last Price: 2.7 cents Market Cap : $7.78 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

Forwa r d-looking statements are s tatements that are not historical facts. W ords such a s “expect(s)”, “expe c ted”, “feel(s) ” , “believe(s)”, “will”, “may”, “anticipate ( s)”, “should” , “envisage(s ) ” and similar expre s sions are int e nded to iden t ify such forward-looking information. T h is informatio n includes, but is not limited to s tatements r e garding futu r e exploratio n results, re s ources, or r eserves, an d produ c tion. Anyone reading this report is cau t ioned not to place undue reliance on these forward - lookin g statements. All of such s t atements are subject to ri s ks and unce rt ainties (man y of which ar e difficul t to predict and which ge n erally are b e yond the co n trol of the C ompany) that could caus e actual results to dif f er materially from those e xpressed in, or implied or projected b y , the forward - lookin g information and stateme n ts. These ri s ks and unc e rtainties incl u de, but are not limited to: those relating to th e interpretati o n of exploration results (including drill r esults), the geology, grad e and c o ntinuity of mi n eral deposit s and conclusions of econo m ic evaluatio n s; risks relating to possibl e variati o ns in reserv e s, grade, min i ng dilution, o r e loss, and r e covery rates; risks relating to changes i n projec t financial an d technical p a rameters; ri s ks relating t o the potenti a l for delays in exploratio n programs, project e v aluation/revi e w, completi o n of feasibilit y studies and project development; risk s relate d to commodity prices and f oreign exch a nge rate fluctuations; risks related to failure to secur e adequ a te financing on a timely b asis and on acceptable t e rms; risks re l ated to dela y s in obtainin g gover n mental, or ot h er permits a n d approvals; risks related to security of tenure; and o ther risks an d uncert a inties relate d to the Com p any’s prosp e cts, properti e s and busin e ss strategy. Any forward - lookin g information contained in this report is provided a s of the dat e of this rep o rt. Except a s requir e d under applicable listing r ules and se c urities laws, t he Company does not int e nd, and doe s not as s ume any obligation, to up d ate this forw a rd-looking inf o rmation.

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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