KORAB RESOURCES LIMITED — Capital/Financing Update 2018

Oct 3, 2018

==> picture [44 x 86] intentionally omitted <==

==> picture [49 x 86] intentionally omitted <==

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

4 October 2018

PL A CEM E NT S U CCE S SFUL L Y CO M PLE T ED

Issue d Capital

Issued Shares: 307 Mln Last Price: 3.0 cents Market Cap: $9.2 Mln

Listi n g Codes ASX: KOR BERLIN: C6S

D irectors Andrej K. Karpinski Exe c utive 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, Pb, Ni, Cu, Co, Sc, Mn

Geolsec (Rum Jungle, NT) Phosphate rock (P2O5) (Sub-leas e d to third party) Mt. Elephant (Ashburton, WA) Au, Cu (Optioned for sale)

==> picture [31 x 65] intentionally omitted <==

==> picture [35 x 65] intentionally omitted <==

Korab Resources L td (“ Korab ”, or “ Company ”) ( ASX: KOR ) is ple a sed to advi s e that it ha s succe s sfully compl e ted the plac e ment of 3.5 Mln shares a t 2.9 cents e ach to un-r e lated exempt invest o rs first report e d to the AS X on 1 Octobe r 2018.

The placement wa s completed w ithin existin g 15% share placement c a pacity and no shareholder appro v al is required .

The i s sue price of 2.9 cents p e r share was approximately 6.4% belo w 5 day vol u me weighte d avera g e traded pri c e and appro x imately 3.3 % below the last traded p rice of 3.0 c e nt per shar e imme d iately prece d ing the an n ouncement of the plac e ment. The placement w ill constitut e appro x imately 1.1% dilution of is s ued capital h eld by Korab’s sharehold e rs immediately prior to thi s place m ent.

The C ompany use d a placeme n t of shares instead of a pro-rata sh a re issue du e to the tim e constr a ints, the rela t ively small si z e of the iss u e and high c o st of conduc t ing a pro-rat a issue. Fund s will be used for wor k ing capital a n d to reduce debt.

CONT A CT:

Andrej K Karpinski, E xecutive Ch a irman - Aust r alia: (08) 9474 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 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

==> picture [17 x 48] intentionally omitted <==

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

==> picture [44 x 86] intentionally omitted <==

==> picture [49 x 86] intentionally omitted <==

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

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.

Issue d Capital Issued Shares: 307 Mln Last Price: 3.0 cents Market Cap: $9.2 Mln

Listi n g Codes

ASX: KOR BERLIN: C6S

D irectors

Andrej K. Karpinski Exe c utive 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, Pb, Ni, Cu, Co, Sc, Mn

Geolsec (Rum Jungle, NT) Phosphate rock (P2O5) (Sub-leas e d to third party) Mt. Elephant (Ashburton, WA) Au, Cu (Optioned for sale)

==> picture [31 x 65] intentionally omitted <==

==> picture [35 x 65] intentionally omitted <==

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

==> picture [17 x 48] intentionally omitted <==

PAGE 2