KORAB RESOURCES LIMITED — Capital/Financing Update 2017

Apr 9, 2017

10 April 2017

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Dear Overs e as Sharehold e r

Non-Renounceable Rights Issue

On 7 April 2 017 Korab Re s ources Limite d (ASX:KOR) ( Korab or Company ) announ c ed a one for s ix non-renoun c eable pro rat a entitlement issue at 1.9 ce n ts per new Ko r ab share ( Rights Issue ).

The Offer Memorandum for the Right s Issue was lodged with A SX on 7 Ap r il 2017 and i s available t o download a t www.asx.com.au using AS X code “KOR”.

Korab has d etermined, pu r suant to the C o rporations Ac t 2001 (Cth) and Listing Rule 7 .7.1(a) of the L isting Rules of the Australia n Securities E xchange ( ASX Listing Rules ) that it would be unreason a ble to make o f fers under the Rights Issue to shareholder s with a regis t ered address o utside of Aust r alia and New Z ealand, having regard to the number of sh a reholders in s u ch places, th e number an d value of the n ew shares th a t would be off e red and the potentially subs t antial costs of complying wit h the legal an d regulatory r e quirements in those jurisdicti o ns.

Accordingly , in complianc e with ASX Listing Rule 7.7. 1 (a) and the C o rporations Ac t , Korab wishe s to advise th a t it will not b e extending t h e Rights Issu e to shareholders with registe r ed addresses outside of Aus t ralia or New Z ealand as at t h e record date , being 5 pm A WST on 12 April 2017 ( Record Date ).

Korab inten d s to appoint a nominee, on normal comm e rcial terms, a s nominee for f oreign shareh o lders to sell t h e entitlement s they would h ave been offe r ed under the R ights Issue had they been eligible to partici p ate in the Rig h ts Issue ( Entitlements ). Th e nominee will have the abs o lute and sole d iscretion to d e termine the ti m ing, price and manner of sal e of the Entitle m ents. The ne t proceeds a b ove the issue p rice (in Australian dollars), if a ny, of the sal e (in Australian dollars) of the E ntitlements will be distribute d to foreign s h areholders pr o rata in proportion to their re s pective share h oldings as at t h e Record Dat e (after deducting the costs o f the sale an d the costs of d istributing the proceeds). T h ere is no guar a ntee that the n ominee will b e able to sell t h e Entitlement s and foreign shareholders m ay receive no value for the E ntitlements. N either Korab nor the nomine e will be subject to any liabilit y for failure to sell the Entitle m ents or to sel l them at a par t icular price.

If you have a ny queries ab o ut the Rights Issue please c o ntact please c o ntact Andrej Karpinski on (0 8 ) 9474 6166.

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Yours since r ely Mr Andrej K Karpinski FAI C D FFin Executive Chairman

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KORAB RESOURCES LIMITED

KORAB HOUS E 20 P R OWSE STREET, W EST PERTH, 60 0 5, WESTERN AUSTRALIA PO BOX 1958, W EST PERTH, WA , 6872, AUSTRALIA, Tel (08) 9 4 74 6166 Fax ( 0 8) 9322 6333 ww w .korabresource s .com.au ACN 082 140 2 5 2