KORAB RESOURCES LIMITED — Capital/Financing Update 2017

May 3, 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

4 May 2017

RIGHTS IS S UE OF F ER CO M PLET E D SUC C ESSFULLY AND N OTICE O F NO SHOR T FALL

Korab Resources ( ASX: KOR ; “ Korab ” or “ Company ” ) is pleased to advise t hat the non - renou n ceable pro-r a ta rights iss u e offer of up to 37,632, 3 46 shares a t $0.019 ea c h, which wa s annou n ced to ASX o n 7 April 201 7 (“Offer”), h a s closed on 1 May 2017.

Valid a pplications f o r 22,337,69 7 shares were received fr o m Korab s h areholders, a nd 1,059,91 0 share s were allotte d to the nomi n ee who was appointed as nominee for t he sale of the entitlement s of ex c luded foreig n shareholde r s (62.2% ta k e-up). An a p plication for 14,234,739 s hares, whic h constitutes all of th e remaining s h ares under t h e Offer, was received by K orab from the underwriter, Rhein g old Investm e nts Corporation Pty Ltd ( Rheingold ) p u rsuant to th e terms of th e Underwritin g Agree m ent dated 6 A pril 2017.

Consequently, ther e is not shortf a ll from the Of f er.

Issue d Capital

Shares: 288 Mln Options: 4 mln Last Price: 1.8 cents Market cap: 5.18 Mln

Listing Codes ASX: KOR BERLIN: C6S.BE

P rojects

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

Batchelor (NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (WA) Au, Cu Bobrikovo (UKR) Au, Ag, Pb

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All Ko r ab Directors a nd their ass o ciates who w ere entitled to participate i n the offer a p plied for their entitle m ents in full. Korab Resources E x ecutive Chairman, Mr An d rej Karpinski , said the Co m pany was v e ry pleased t o have successfully c o ncluded the O ffer.

“This s hare issue o f fered all sha r eholders on a n equal basi s an opportu n ity to gain bi g ger exposur e to any future upside from Korab’s exploration and developm e nt activities.” Mr Karpinski said.

“I am d elighted to s e e all Korab’s Directors sh o wing their co n fidence in K o rab’s future b y taking-up i n full their entitlement to participate in the offer. F urthermore, I am personall y very please d to be able t o provid e further sign of my confid e nce in Kora b ’s future by partially und e rwriting the o ffer through a comp a ny I control and conseque n tly taking up all those shares which ou r shareholder s chose not t o apply f or.”

“I’m e x cited about t h e path ahe a d for Korab a s we continue to explore, develop, an d realise valu e from t h e Company’ s highly valu a ble project portfolio. The C ompany is n ow very well positioned t o take a d vantage of t h e growing in v estor interest in strategic and energy m e tals.”

Korab’s portfolio of a ssets includ e s cobalt, zinc, lead, gold, silver, copper, magnesium c arbonate, an d other m ineral prope r ties in Austra l ia and overs e as. Please follow these lin k s for related A SX reports: http:// w ww.asx.com.au/asx/statist i cs/displayAn n ouncement. d o?display=p d f&idsId=018 2 7144 http:// w ww.asx.com.au/asx/statist i cs/displayAn n ouncement. d o?display=p d f&idsId=018 2 2066 http:// w ww.asx.com.au/asx/statist i cs/displayAn n ouncement. d o?display=p d f&idsId=018 5 2811 http:// w ww.asx.com.au/asx/statist i cs/displayAn n ouncement. d o?display=p d f&idsId=017 9 1309 http:// w ww.asx.com.au/asx/statist i cs/displayAn n ouncement. d o?display=p d f&idsId=016 9 4132

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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

As disclosed in the Offer Memo r andum lodg e d with ASX o n 7 April 2 0 17, Rheingol d , a compan y associ a ted with Mr K arpinski, par t ly underwrot e the share is s ue. As set o u t in the Offer Memorandu m for the rights issue, Rheingold w a s entitled to u se debt owe d by the Co m pany to Rhei n gold to offset the su b scription monies for all o r part of underwritten porti o n of the Offe r . Rheingold h as elected t o use $ 2 70,460.04 of the debt owe d by the Com p any to Rheingold to offset the full subscription monie s for th e underwritte n shares and therefore th e debt owed by the Co m pany to Rheingold will b e reduc e d by $270,460.04.

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 Bobrikov o in eastern U kraine. Kora b Group explores for cobalt , gold, lithium, copper, zinc, lead, s ilver, and nic k el at Batchelor project in the Northern T erritory. The Company al s o explores for gold and copper at Ashburton D owns/Mt. El e phant projec t in Western Australia More informatio n about Korab’s projects can be s o urced from K orab’s websi t e at www.ko r ab.com.au. K orab’s share s are tr a ded on Aust r alian Securities Exchang e (ASX) and on the Berli n Stock Exch a nge (Berliner Börse) through Equiduct electronic trading plat f orm.

Issue d Capital

Shares: 288 Mln Options: 4 mln Last Price: 1.8 cents Market cap: 5.18 Mln

Listing Codes

ASX: KOR BERLIN: C6S.BE

P rojects

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

Batchelor (NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (WA) Au, Cu 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 2