KORAB RESOURCES LIMITED — Capital/Financing Update 2018

Aug 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 Aug u st 2018

PI L BARA PROJ E CTS U PDA T E

Korab Resources Ltd (“ Korab ”, or “ Company ” ) ( ASX: KOR ) provides th e following up d ate regardin g the Pil b ara projects.

Issued Capital Issued Shares: 303 MLN Last Price: 2.9 cents Capitalisation: $9 MLN

Listi n g Codes ASX: KOR BERLIN: C6S

D irectors

Andrej K. Karpinski Ex e cutive 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)

On 2 6 March 201 8 , (“REVIEW OF OPERA T IONS WITH THE AIM O F DISPOSA L OF OTHE R PROJ E CTS TO A L LOW KOR A B TO FOC U S ON WIN C HESTER MA GNESIUM CARBONAT E PROJ E CT AND R E LATED AS S ETS”), Korab reported t h at it has c o mmenced a review of it s operat i ons and proj e cts located i n Western Au s tralia, and U k raine.

Korab advises that following the review of its Western Aus t ralian assets and in keepi n g with state d strate g y of reducin g the numb e r of early s t age exploration assets t o enable full focus on th e Winch e ster magnesium carbonate project and the related B atchelor project located i n the Norther n Territory, Korab de c ided to with d raw exploration licences applications for projects located in th e Pilbar a region of W e stern Austral i a.

The C ompany has been for so m e time in d iscussions with potential b uyers inter e sted in thes e applic a tions. Howe v er, the poten t ial transactio n s which wer e discussed w ere too cond i tional to merit expen d ing addition a l time and fu n ds on these a pplications a s they progre s sed to grants.

Consequently, it w a s determine d that it would be prefera b le to withdr a w the appli c ations and t o allocate the time an d money thus saved to the W inchester a n d Batchelor p rojects.

Whilst the applicati o ns which w e re withdraw n covered geologically pr o spective are a s, they wer e nonet h eless at an e arly explora t ion stage and would req u ire a signific a nt input in t erms of time, perso n nel, and m o ney. The wi t hdrawn exploration licen c e applicatio n s are: 45/5 0 47, 46/1211, 46/1212, 47/3863, 47/3865, 47/3 8 66, 47/3902, and 47/3903.

Withdrawal of the Pilbara explor a tion licence applications follows transac t ions regarding the Geolse c projec t and the Mt. Elephant project announc e d previously o n 25 July 2 0 18, and will a llow Korab t o fully focus on the Winchester ma g nesium carb o nate project and the relat e d Batchelor p roject locate d in the N orthern Territory.

INVE S TOR CONTACT:

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

Projects

Winchester (Rum Jungle, NT) Magnesium carbonate (MgCO3) Batchelor (Rum Jungle, NT) Au, Ag, Zn, P b , Ni, Cu, Co, Sc, Mn Geolsec (Rum Jungle, NT) Phosphate rock (P2O5)

Mt. Elephant (Ashburton, WA) Au, Cu

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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 of Australia a n d Geolsec p h osphate roc k deposit (su b -leased to third party) als o near B atchelor. Kor a b also oper a tes through i t s subsidiary a gold and si l ver deposit at Bobrikovo i n easter n Ukraine. T h e Company a lso explores for gold and copper at Mt . Elephant pr o ject (which i s curren t ly under opti o n) in Weste r n Australia. K orab also explores for gold, cobalt, sil v er, lead, zinc, coppe r , nickel, lithi u m, and tin a t Batchelor and Green A lligator in th e Northern T erritory. Mor e inform a tion about K orab’s proje c ts can be sourced from Korab’s web s ite at www. k orab.com.au. Korab Resources Ltd is listed o n Australian S ecurities Ex c hange, whic h is Korab’s home market. Korab’s shares ar e traded on A ustralian S e curities Exc h ange (ASX) and on the Berlin Stoc k Excha n ge (Börse B e rlin).

DISC L AIMER AND CAUTIONAR Y STATEME N T

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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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Issued Capital Issued Shares: 303 MLN Last Price: 2.9 cents Capitalisation: $9 MLN

Listi n g Codes ASX: KOR BERLIN: C6S

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

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 obl i gation, to up d ate this forw a rd-looking in f ormation. Pil b ara East an d Pilbara West projec t s are considered to be of early stage, gr a ss roots exploration statu s .

D irectors

Andrej K. Karpinski Ex e cutive 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) Magnesium carbonate (MgCO3) Batchelor (Rum Jungle, NT) Au, Ag, Zn, P b , Ni, Cu, Co, Sc, Mn Geolsec (Rum Jungle, NT) Phosphate rock (P2O5) Mt. Elephant (Ashburton, WA) Au, Cu

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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