KORAB RESOURCES LIMITED - Capital/Financing Update 2017

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KO R AB R ES O URCES LI M ITE D KORA B HOUSE w ww.kora b .com.au

8 March 2017

FUNDING S E CURE D FOR COB A LT AND ZIN C DRILL I NG

New funding secured to accelerate drilling of highest priority cobalt and zinc targets in NT
• Drilling is expected to commence shortly • Cobalt/copper/gold mineralisation identified at Batchelor (Reported on 1 0 February 2017) • Zinc/lead/silver mineralisation identified at Batchelor ( R eported on 23 No v ember 2016, and 2 5 January 2017) • Drilling crew and rigs on standby

K orab Resou r ces Ltd (“ Korab ”, or “ Company ”) ( ASX: KOR ) is p leased to re p ort that it h a s resolved t o u ndertake a f inancing tra n saction to e n able fast-tracking of the cobalt and z inc drilling p r ogram at th e B atchelor pr o ject. The fun d ing is by w a y of a $471 , 000, unsecu r ed, zero-inte r est loan which, subject t o s hareholder a pproval, will b e convertin g to Korab’s o rdinary shares at a price o f 1.9 cents p er share. Th e p arties are e x empt investo r s who are u n related to th e Company (s e e Appendix A for the list o f participatin g i nvestors). M o st of the money has al r eady been received. There are no c o nditions pre c edent to thi s t ransaction ot h er than the t e rms disclos e d in this ann o uncement. T h is financing t r ansaction is n ot associate d w ith the placement of shar e s to Mr. Wan g , or the funding for Winch e ster project a nnounced in M arch 2016.

K orab intend s to shortly call an Extraordinary General Meeting (EG M ) to approve conversion of this loan an d t o ratify issues of Korab s h ares underta k en during the previous 1 2 months. If s h areholder a p proval for th e c onversion of the loan is n o t received b y 30 April 201 7 , the loan will be repayab l e in cash wit h in 3 busines s d ays. If share h older appro v al is received, the shares a re to be issu e d within 3 bu s iness days t h ereafter.

Issued C apital

Shares: 226 mln Options: 4 mln Last Price: 2.4 cents ASX: KOR BERLIN: C6S.BE

P r ojects Winchester (NT) Magnesium carbonate (MgCO3) Geolsec (NT) Ph o sphate rock (P2O5)

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

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K orab is further pleased to advise that i t is planning t o undertake a pro-rata en t itlement offe r to all eligibl e K orab shareh o lders at the s ame price of 1.9 cent per share and at a ratio of 1 n e w share for e very 6 share s h eld on a fut u re record da t e. This will g i ve all eligibl e shareholder s opportunity t o acquire additional Kora b s hares witho u t the brokera g e cost. The record date, the timetable and the offe r document will be provide d s hortly.

A s already a n nounced, foll o wing the rel e ase of the c o balt results fr o m the Kora b ’s Batchelor p roject locate d n ear Darwin i n the Rum Jungle Mineral F ield (reporte d to ASX on 10 February 2 017) and the release of th e z inc results fr o m the same p roject (repor t ed to ASX o n 23 Novemb e r 2016, and 2 5 January 2017) Korab ha s c ompleted pl a nning for the follow-up drill i ng program t o further test t hese cobalt a nd zinc mine r alisations an d h as secured t h e drilling cre w and rigs for this drilling p r ogram.

T he new financing will en a ble Korab t o accelerate t he drilling p r ogram and t o undertake a ny addition a l d rilling to im m ediately follo w -up any disc o veries made .

I n view of th e significant exploration po t ential of the Bachelor project, its proxi m ity to histori c al cobalt an d z inc/lead/silv e r mines, and the recently announced e xploration re s ults confirmi n g presence of high grad e c obalt and zi n c/lead miner a lisation withi n the project, Korab is very excited abo u t the upcomi n g programm e o f works.

K orab’s wholly owned su b sidiary Aus M ag PL, is th e owner and operator of t h e Winchest e r magnesiu m c arbonate pr o ject adjacent to the Bachelor project. A u sMag is planning to devel o p a magnesium carbonat e m ine at Winc h ester. Magn e sium has be e n listed toge t her with cob a lt as one of t he strategic m etals by bot h t he United St a tes and the E uropean Uni o n. Whilst co b alt has been used in rech a rgeable batt e ries for som e t ime, use of m agnesium in rechargeabl e batteries ha s only recently been adva n ced to the p o int where th e g rowth of thi s sector is st a rting to hav e an impact o n the dema n d for this m e tal. Should a discovery of c ommercially viable cobal t and/or zinc / lead mineralisation be m a de, there w ill be obviou s logistic an d

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20 PROWSE S TREET, WEST PERTH, WA, 60 0 5, AUSTRALIA PO BOX 1958 , WEST PERTH, WA, 6872, AUS T RALIA TEL (08) 9474 6166 FAX (08 ) 9322 6333 ACN 082 140 2 52

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KO R AB R ES O URCES LI M ITE D KORA B HOUSE w ww.kora b .com.au

o perational a d vantages in h aving nearb y operating mines located less than 90 k ilometres from Darwin an d w ithin few kil o metres of ea c h other.

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Locatio n of
planned c o balt
drill hol e s
L ocations of
pl a nned cobalt
drill holes
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Figure 1 3D image of cobalt values in gridded shallow RAB drilling with faults/fractures and location of some of the planned holes, (near surface drill-chip values, height and colour reflects Co grade in ppm).

Issued C apital

Shares: 226 mln Options: 4 mln Last Price: 2.4 cents ASX: KOR BERLIN: C6S.BE

P r ojects Winchester (NT) Magnesium carbonate (MgCO3) Geolsec (NT) Ph o sphate rock (P2O5) Batchelor (NT) Au, Ag, Zn, P b , Ni, Cu, Co Mt. Elephant (WA) Au, Cu Bobrikovo (UKR) Au, Ag, Pb

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Locations of
planned zinc
drill holes
Locatio n s of
planned zinc
drill holes
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Figure 2 3D image of zinc values in soils with overlayed location of some of the planned holes (soil geochemical survey values, height and colour reflects Zn grade in ppm)

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20 PROWSE S TREET, WEST PERTH, WA, 60 0 5, AUSTRALIA PO BOX 1958 , WEST PERTH, WA, 6872, AUS T RALIA TEL (08) 9474 6166 FAX (08 ) 9322 6333 ACN 082 140 2 52

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