KORAB RESOURCES LIMITED — Capital/Financing Update 2018

Dec 5, 2018

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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

6 Dec e mber 2018

MI N ING C ONT R ACTO R S FO R WIN C HES T ER M A GNES I UM C A RBO N ATE P ROJE C T - UPDATE

Issue d Capital

Issued Shares: 307 Mln Last Price: 2.6 cents Market Cap: $8.0 Mln

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 the C ompany has shortlisted a Darwin bas e d, indigeno u s owned an d operat e d business R usca Bros G roup as pro p osed mining, civil and ear t hmoving contractor for th e Winch e ster magnesium carbonat e quarry. This f o llows on the meetings wit h the busines s owners and the senior m anagement t e am of Rusc a Group , and visits by Korab direct o rs to Rusca G roup operati o ns in the No rt hern Territor y .

Listi n g Codes ASX: KOR BERLIN: C6S

The R u sca Group i s an indigeno u s; territory o w ned and op e rated compa n y delivering s ervices in th e civil, m ining, constr u ction and trai n ing sectors t o a range of clients nation w ide. Rusca B r os have bee n award e d contracts i n the mining i n dustry for th e past 30 years. Previo u s mining pro j ects underta k en by Rusca Group includ e :

D irectors

Andrej K. Karpinski Executive Chairman Director

Client: Xstrata Mining, Project: M a cArthur Rive r Mine Client: Glencore, Pr o ject: MacArt h ur River Min e Client: Copper Co, P roject: Lady A nnie Mine Client: ABM Resour c es, Project: C oyote Gold M ine Client: Newmont Mi n ing, Project: W oodcutters M ine Rehabili t ation Client: Western Desert Mining, P r oject: Thiess Rusca JV Mi n ing Client: Atlas Iron, Project: Pardoo Mine WA Client: Tanami Mini n g, Project: C o yote Gold Mine Client: Giants Reef M ining, Proje c t: Malbec Op e n Cut Mine Client: ABM Resour c es, Project: T anami Gold M ine Site

Rodney H. Skeet Non-e x ecutive Director (Independent)

Daniel A. Smetana Non-e x ecutive Director (Independent)

Anthony G. Wills Non-e x ecutive Director (Independent)

“We a re proud to s upport locall y based indigenous emplo y ers and indi g enous owned businesses. This i s another step towards th e development of the Wi n chester ma g nesium carb o nate quarry. ” comm e nted Korab’s Chairman M r . Andrej Karpinski.

Projects

Winchester (Rum Jungle, NT) Magn e sium carbonate (MgCO3)

Pleas e note the ag r eement with R usca Group to provide mining service s to Korab in respect of th e Winch e ster magnesium carbonat e quarry is still ongoing and is not yet fin a lised.

On 1 2 September 2018, Korab reported re s ults from updated feasib i lity study fo c using on th e potent i al revenue f r om addition a l products: D ead Burned Magnesia (D B M), and Caustic calcine d magn e sia (CCM). T his report titled “ADDITI O NAL INFOR M ATION - W INCHESTER MAGNESIT E FEASIBILITY STU D Y UPDATE” is available by copying an d pasting the link shown b e low into your brows e r: https:/ / www.asx.co m .au/asx/stati s tics/displayA n nouncement . do?display== p df&idsId=02021411=020214110202141121411

Batchelor (Rum Jungle, NT) Au, Ag, Zn, P b , Ni, Cu, Co, Sc, Mn

Geolsec brows e r: (Rum Jungle, NT) Phosphate rock https:/ / www.asx.co m .au/asx/stati s tics/displayA n nouncement . do?display== p df&idsId=02021411=020214110202141121411 (P2O5) (Sub-leased to third party) The C ompany con f irms that all material assumptions un d erpinning th e production target, or th e Mt. Elephant foreca s t financial i n formation d e rived from a production target, in th e initial publi c report title d (Ashburton, WA) “ADDI T IONAL INF O RMATION - WINCHES T ER MAGN E SITE FEAS IB ILITY STU D Y UPDATE” Au, Cu ( O ptioned for sale) releas e d to the mar k et on 12 Sep t ember 2018 c ontinue to a p ply and have not materiall y changed.

The proposed magnesium carbo n ate quarry at Winchester i s located 2 k m from the regional centre of Batch e lor some 70 k m south of Darwin along S tuart Highwa y . Please ref e r to Figure 1 for details of

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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

the lo c ation of the p roposed Wi n chester mag n esium carbonate quarry, a nd Korab G r oup’s variou s miner a l tenements in the area. E xploration li c ences are outlined in white, and mini n g leases ar e outlined in red. Dep o sit is at shall o w depth and can be quarried using drill and blast, shovel and truc k metho d (see Figur e 2).

Issue d Capital

Issued Shares: 307 Mln Last Price: 2.6 cents Market Cap: $8.0 Mln

Listi n g Codes

ASX: KOR BERLIN: C6S

D irectors

Andrej K. Karpinski Executive Chairman Director

Rodney H. Skeet Non-e x ecutive Director (Independent)

Daniel A. Smetana Non-e x ecutive Director (Independent)

Anthony G. Wills Non-e x ecutive Director (Independent)

Projects

Winchester (Rum Jungle, NT) Magn e sium carbonate (MgCO3)

Batchelor (Rum Jungle, NT) Au, Ag, Zn, P b , Ni, Cu, Co, Sc, Mn

Geolsec (Rum Jungle, NT) Phosphate rock (P2O5) (Sub-leased to third party) Mt. Elephant (Ashburton, WA) Au, Cu ( O ptioned for sale)

Further updates re g arding the W inchester m agnesium carbonate proj e ct will be provided to th e marke t as and whe n required.

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Figure 1 Location of Korab Group’s mineral tenements and Winchester magnesium carbonate project relative to Darwin Port and basic infrastructure

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Figure 2 Test mining of magnesium carbonate at Winchester (setting of charges)

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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

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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

Issue d Capital

Issued Shares: 307 Mln Last Price: 2.6 cents Market Cap: $8.0 Mln

Listi n g Codes ASX: KOR BERLIN: C6S

D irectors

Andrej K. Karpinski Executive Chairman Director

Rodney H. Skeet Non-e x ecutive Director (Independent)

Daniel A. Smetana Non-e x ecutive Director (Independent)

Anthony G. Wills Non-e x ecutive Director (Independent)

Projects

Winchester (Rum Jungle, NT) Magn e sium carbonate (MgCO3)

Korab Resources Ltd is an intern a tional minin g and exploration company with operatio n s in Australi a and E u rope. Korab’ s projects in c lude Winche s ter magnesium carbonate deposit at B a tchelor in th e North e rn Territory o f Australia, G eolsec phos p hate rock d e posit also at Batchelor, a n d other gold, silver, copper, cobalt, nickel, an d polymetallic projects in A ustralia and o verseas. 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.

DISC L AIMER AND CAUTIONAR Y STATEME N T

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.

Batchelor (Rum Jungle, NT) Au, Ag, Zn, P b , Ni, Cu, Co, Sc, Mn

Geolsec (Rum Jungle, NT) Phosphate rock (P2O5) (Sub-leased to third party)

Mt. Elephant (Ashburton, WA) Au, Cu ( O ptioned for sale)

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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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