KORAB RESOURCES LIMITED — Capital/Financing Update 2018

Dec 3, 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

4 Dec e mber 2018

Issue d Capital

Issued Shares: 307 Mln Last Price: 2.8 cents Market Cap: $8.6 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)

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KORAB EXPAN D S AG R EEM E NT WITH D A RWIN PORT TO 800,0 0 0 TO N NES O F M A GNES I TE ROCK PER YE A R – A M PLIFI C ATION

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 Kora b has execut e d non-bindi n g Heads of Agreement ( H oA) with th e operat o r and mana g er of Darwin P ort expanding the annual v olume to be s hipped through the port.

The HoA envisage s exporting o f up to 800,000 tonnes p er year of m agnesium c a rbonate roc k throug h Darwin Port East Arm W harf and includes sub-leasing of the l a nd, access t o various port faciliti e s, use of lo a ders, and o t her equipment. HoA provides the basis for the of the final port agree m ent which w i ll allow for s h ipping of the magnesium c arbonate ro c k through Darwin port. Th e costs o f, and the fe e s for the sub - leasing of th e land, acces s to various p o rt facilities, u se of loaders, and ot h er equipment have not ye t been agree d between the Company a n d Darwin Po r t. They will b e deter m ined in the fi n al port agree m ent.

East A rm Wharf is a multi-user f a cility with 4 b e rths spaced along 865 m e tres of quay line. Berth 2 i s used f o r bulk ore exports and ha s a rail mount e d dry bulk ship loader. Th e continuous l e ngth of wharf facilita t es flexibility in berth all o cations to v isiting ships. East Arm Wharf can accommodat e PANA M AX class bulk carriers up t o 75,000 ton n es.

East A rm Wharf has a rail mou n ted bulk mi n erals ship lo a der with a m aximum capacity of 2,00 0 tonne s per hour ( s ee Figure 2 ). Bulk minerals, such a s iron ore, magnesium carbonate, or mang a nese, can be delivered to s tockpile areas by haulage trucks, or tra n sferred from rail wagons t o the st o ckpile areas u sing a dedic a ted rail dum p and convey o r systems (s e e Figure 3) . The mineral s are tr a nsported by truck from t h e stockpiles to the ship l o ader truck d ump for loa d ing onto bul k carrier s .

“This e xpansion will allow for si g nificant incre a se in annual volumes of m agnesium carbonate roc k shipm e nts to cover both DSO sales and DB M production and it is on e of key mil e stones in th e proce s s of commer c ialisation of t h e Winchest e r magnesium carbonate d e posit”, commented Korab’ s Chair m an Mr. Andr e j Karpinski.

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

The C ompany con f irms that all material assumptions un d erpinning th e production target, or th e foreca s t financial i n formation d e rived from a production target, in th e initial publi c report title d “ADDI T IONAL INF O RMATION - WINCHES T ER MAGN E SITE FEAS IB ILITY STU D Y UPDATE” 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 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

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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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Issue d Capital

Issued Shares: 307 Mln Last Price: 2.8 cents Market Cap: $8.6 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)

K O RA B R E SO U RC E S LIMI T ED KORAB H OUSE www.korab.co m .au

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 4). 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. 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

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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 Darwin Port loading facilities (travelling gantry and autoloader)

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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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Issue d Capital

Issued Shares: 307 Mln Last Price: 2.8 cents Market Cap: $8.6 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)

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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

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Figure 3 Mineral stockpiles at Darwin Port

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Figure 4 Test mining of magnesium carbonate at Winchester (setting of charges)

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 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

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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 3

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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

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

Issue d Capital

Issued Shares: 307 Mln Last Price: 2.8 cents Market Cap: $8.6 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)

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.

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)

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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 4