KORAB RESOURCES LIMITED — Capital/Financing Update 2018

Sep 30, 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

30 Se p tember 201 8

PL A CEM E NT

Issue d Capital

Issued Shares: 303 Mln Last Price: 3.0 cents Capitalisation: $ 9.09 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)

Korab Resources Ltd (“ Korab ”, o r “ Company ”) ( ASX: KOR ) advises t h at it has resolved to rais e funds by way of a placement o f up to 3.5 M ln shares a t 2.9 cents e ach to un-r e lated exempt invest o rs.

This placement is t o be complete d within existing 15% shar e placement c apacity and n o shareholder appro v al is required .

The is s ue price of 2.9 cents per s hare is appr o ximately 6.4 % below 5 da y volume wei g hted averag e traded price and a p proximately 3 .3% below t h e last traded price of 3.0 cent per share. The shar e issue w ill constitut e approximat e ly 1.1% dilution of issue d capital hel d by Korab’s shareholder s imme d iately prior to this placeme n t.

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

Projects

Forwa r d-looking statements are s tatements that are not historical facts. W ords such a s “expect(s)”, Winchester “expe c ted”, “feel(s) ” , “believe(s)”, “will”, “may”, “anticipate ( s)”, “should” , “envisage(s ) ” and similar (Rum Jungle, NT) Magn e sium carbonate expre s sions are int e nded to iden t ify such forward-looking information. T h is informatio n includes, but (MgCO3) is not limited to s tatements r e garding futu r e exploratio n results, re s ources, or r eserves, an d Batchelor produ c tion. Anyone reading this report is cau t ioned not to place undue reliance on these forward (Rum Jungle, NT) 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 , Ni, Cu, Co, Sc, Mn Mn 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 Geolsec lookin g information and stateme n ts. These ri s ks and unc e rtainties incl u de, but are not limited to: (Rum Jungle, NT) Phosphate rock those relating to th e interpretati o n of exploration results (including drill r esults), the geology, grad e (P2O5) and c o ntinuity of mi n eral deposit s and conclusions of econo m ic evaluatio n s; risks relating to possibl e (Sub-leas e d to third party) 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 Mt. Elephant projec t financial an d technical p a rameters; ri s ks relating t o the potenti a l for delays in exploratio n (Ashburton, WA) programs, project e v aluation/revi e w, completi o n of feasibilit y studies and project development; risk s Au, Cu (Optioned for sale) 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 -

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

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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

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: 303 Mln Last Price: 3.0 cents Capitalisation: $ 9.09 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)

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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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