KORAB RESOURCES LIMITED — Capital/Financing Update 2018

Jul 24, 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

25 Jul y 2018

Issued Capital Issued Shares: 303 MLN Last Price: 3.0 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)

Projects

Winchester (Rum Jungle, NT) Magnesium carbonate (MgCO3) Geolsec (Rum Jungle, NT) Phosphate rock (P2O5)

Batchelor (Rum Jungle, NT) Au, Ag, Zn, P b , Ni, Cu, Co, Sc, Mn Mt. Elephant (Ashburton, WA) Au, Cu Karratha (Pilbara, WA) Au, Co, Cu

Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li

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MT. ELE P HANT PROJECT T R ANS A CTIO N

Korab Resources L t d (“ Korab ”, o r “ Company ” ) ( ASX: KOR ) and its su b sidiaries Aus t ralian Copper Pty Lt d and Australian Copper H oldings Pty L td (together AusCopper ) are very ple a sed to advis e that A u sCopper ha s executed th e Term She e t with Great F ingall Minin g Company NL ( GFMC ) for GFMC to acquire a n d option to p urchase the M t. Elephant p roject. The T erm Sheet i s binding upo n the pa r ties but is su b ject to share h older approval if such is r e quired under the ASX Listi n g Rules.

The tr a nsaction co v ers the Mt. Elephant pro j ect located in the Ashbu r ton Mineral F ield south of Parab u rdoo in Wes t ern Australia . Mt. Elephan t consists of 5 granted ex p loration licen c es E08/2757, E 52/ 2 724, E08/23 0 7, E08/2756, and E 08/2115 (“ Tenements ”). Expl o ration licenc e E08/2115 i s subjec t to forfeiture a ction as rep o rted to ASX o n 12 June 2018.

The g e neral terms o f the transact i on are as foll o ws:

Pursu a nt to the Ter m Sheet, GF M C will pay A u sCopper a $ 5 0,000 optio n fee to acqui r e an option t o purch a se the Tene m ents. The o p tion term will be 9 months from 21 July 2018 and it c an be exten d by ag r eement bet w een the par t ies. Upon t h e exercise o f the option, the consideration for th e Tene m ents will be $500,000 pay a ble in ordinar y shares in G F MC. Under the Term Sh e et, GFMC w ill be respon s ible for the e x ploration wit h in the Tene m ents, and for keeping the Tene m ents in g o od standing, including ( a mong othe r s) meeting the minimu m expen d iture require m ents, paying tenement re n ts, and local g overnment r a tes.

The tr a nsaction is c o nditional on:

1. Korab shareholder appr o val if require d under the A S X Listing Ru l es:

Because t h e value of t he consideration constitutes more tha n 20% of th e consolidate d equity interest of Kora b , Korab ma y be require d to seek sh a reholder ap p roval for thi s transaction in general m eeting pursu a nt to Listing Rule 11.4. If t he Company is required t o obtain shareholder app r oval for this transaction, the Compan y intends to c all a gener a l meeting a s soon as pra c ticable to se e k such appr o val and if su c h approval i s not obtaine d the option w ill lapse.

1. GFMC bei n g admitted t o the official li s t of ASX: GFMC is a n unlisted p u blic compan y which inten d s to seek a d mission to A SX within th e next 9 mo n ths. If GFMC is not listed o n ASX withi n 9 months, t h e option will l apse unless i is extende d by agreeme n t between th e parties.

Under a separate a greement e x ecuted betw e en Australian Copper H o ldings Pty L t d ( ACH ) an d GFMC, ACH will be responsible f or defending the forfeiture action in res p ect of tenement E08/2115. In the unlikely even t that the ten e ment E08/2115 is forfeite d , GFMC will h ave 30 day s to decide if it wants to terminate the option. If GFMC deci d es to termin a te the optio n , AusCopper will refund t o GFMC the $50,000 option fee p lus 50% of the exploratio n expenditur e , tenement r e nt, and loc a l gover n ment rates p a id for by GF M C in respect of the Mt. Elephant Project .

This t r ansaction w a s envisaged in Korab’s p r ior ASX announcements a nd is in ke e ping with th e divest m ent strategy announced p r eviously by K orab. 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 M A GNESIUM CARBONAT 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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K O RA B R E SO U RC E S LIMI T ED KORAB H OUSE www.korab.co m .au

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.

Issued Capital Issued Shares: 303 MLN Last Price: 3.0 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)

Projects

Winchester (Rum Jungle, NT) Magnesium carbonate (MgCO3)

Geolsec (Rum Jungle, NT) Phosphate rock (P2O5)

Batchelor (Rum Jungle, NT) Au, Ag, Zn, P b , Ni, Cu, Co, Sc, Mn Mt. Elephant (Ashburton, WA) Au, Cu Karratha (Pilbara, WA) Au, Co, Cu Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li

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On 1 7 April 201 8 , (“KORAB TO FAST T RACK THE DEVELOP M ENT OF W INCHESTE R MAGNESIUM CAR B ONATE DE P OSIT”), Kor a b reported that it has en t ered into di s cussions wit h multiple interested p arties regardi n g a sale/join t -venture of the Mt. Elepha n t project.

These divestments (should the y occur) will a llow Korab t o focus its t ime, person n el, and other resour c es on the remaining a s sets of the Company, s pecifically t h e Winchester magnesiu m carbo n ate quarry.

As ad v ised on 29 M a y 2018, duri n g June and J uly, 2018 Ko r ab undertoo k a series of visits, and face - to-fac e meetings and negotiation s regarding t h e Wincheste r Project with multiple parti e s in Australi a and o v erseas. Kora b has met wit h several trading houses, processors, en d users, and o ther potential partne r s. Meetings w ent very we l l and their in t erest in raw m aterial and p rocessed m a terial appear s greate r than expect e d by Korab p rior to the vi s its and meeti n gs. Several p roposals we r e received a s well a s multiple requests for bul k samples. Discussions ar e ongoing an d no final ter m s have bee n agree d with any of t h e parties at the date of thi s report. Korab will advise t h e market if a nd when suc h agree m ents are sig n ed.

More d etailed operations updat e regarding the progress of the devel o pment of t h e Winchester Projec t will be provi d ed shortly to the market in a separate r e port. 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

Korab Resources Ltd is an intern a tional minin g and exploration company with operatio n s in Australi a and E urope. Kora b ’s projects i nclude Winc h ester magn e sium carbo n ate deposit and Geolse c phosp h ate rock deposit at Batch e lor in the Northern Territor y of Australia as well as a g old and silver deposit at Bobriko v o in easter n Ukraine. T h e Company also explor e s for gold and copper at Ashbu r ton Downs/ M t. Elephant i n Western Au s tralia, and f o r gold, copp e r, lithium, tin, and tantalu m at Karratha, and M a rble Bar/Nullagine in We s tern Australia. Korab als o explores fo r gold, cobalt, silver, lead, zinc, c o pper, nickel, lithium, and tin at Batch e lor and Gre e n Alligator in the Norther n Territory. More inf o rmation ab o ut Korab’s p rojects can be sourced from Korab ’ s website at www. k orab.com.au. Korab Res o urces Ltd is listed on A u stralian Sec u rities Excha n ge, which i s Korab’s home market. Korab’s s h ares are tra d ed on Austr a lian Securiti e s Exchange (ASX) and o n the Berlin Stock Ex c hange (Börs e Berlin).

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

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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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Issued Capital

Issued Shares: 303 MLN Last Price: 3.0 cents Capitalisation: $9 MLN

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

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 .

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)

Projects

Winchester (Rum Jungle, NT) Magnesium carbonate (MgCO3)

Geolsec (Rum Jungle, NT) Phosphate rock (P2O5)

Batchelor (Rum Jungle, NT) Au, Ag, Zn, P b , Ni, Cu, Co, Sc, Mn Mt. Elephant (Ashburton, WA) Au, Cu Karratha (Pilbara, WA) Au, Co, Cu Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li

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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