KORAB RESOURCES LIMITED — Capital/Financing Update 2018

May 28, 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

29 Ma y 2018

Issued Capital Issued Shares: 303 MLN Last Price: 3.4 cents Capitalisation: $10 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)

WI N CHE S TER M AGN E SIUM CARB O NAT E QUARRY UPDA T E

Korab Resources L t d (“ Korab ”, o r “ Company ”) ( ASX: KOR ) and its sub s idiaries (“ Korab Group ”) i s pleased to provide the following update rega r ding the dev e lopment of t he Winchest e r magnesiu m carbo n ate quarry.

Korab is currently concentrating o n concludin g the new offtakes for the o utput from t h e Winchester quarry and progres s ing the quarr y permits (including the Mine Manageme n t Plan).

As disclosed in th e Quarterly A c tivity Report on 1 May 2018 (“ Quarterly ”) Korab h as previousl y receiv e d funding pr o posals for th e development of Winchest e r quarry. Sin c e the Quart e rly, Korab ha s receiv e d further fu n ding propos a ls some of w hich have b e en rejected, while others are currentl y being r eviewed by t h e Company.

Also a s disclosed in the Quarterl y , Korab has been in discus s ions with thr e e potential o f ftake partner s for the magnesium c arbonate ro c k from the W i nchester quarry. Since the Quarterly, K o rab has bee n conta c ted by further parties seein g access to l a rge tonnage o f raw magne s ium carbonate rock. Kora b and th e other parties (those that were previou s ly disclosed as well as th e new entran t s) have mad e signifi c ant progress in discussio n s regarding t he offtakes a nd consequ e ntly a series of visits, an d face-t o -face meetin g s/negotiatio n s with the multiple intere s ted parties a r e scheduled for June an d July, 2018 in Austra l ia and overs e as. Whilst various prop o sed terms h a ve been rec e ived by Korab, no final te r ms have be e n agreed wit h any o f the parties at the date of this repo r t. Korab will advise the market if and when suc h agree m ents are sig n ed.

WINC H ESTER MA G NESIUM CARBONATE Q U ARRY INF O RMATION

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

On 7 M arch 2018, a nd on 21 M a rch 2018 Ko r ab reported the results of t he update of the feasibilit y study to develop W inchester m a gnesium ca r bonate (magnesite) quarr y as a direc t shipping or e (DSO) operation.

Full te x t of the repo r t containing the results of t he feasibility study and va r ious caution a ry statement s is avai l able at the following link:

https:/ / www.asx.co m .au/asx/stati s tics/displayA n nouncement . do?display= p df&idsId=01964262

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

Mt. Elephant Korab Resources Ltd is an intern a tional minin g and exploration company with operatio n s in Australi a (Ashburton, WA) Au, Cu and E urope. Kora b ’s projects i nclude Winc h ester magn e sium carbo n ate deposit and Geolse c Karratha phosp h ate rock deposit at Batch e lor in the Northern Territor y of Australia as well as a g old and silver (Pilbara, WA) deposit at Bobriko v o in easter n Ukraine. T h e Company also explor e s for gold and copper at Au, Co, Cu 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 Marble Bar/Nullagine at Karratha, and M a rble Bar/Nullagine in We s tern Australia. Korab als o explores fo r gold, cobalt, (Pilbara, WA) silver, lead, zinc, c o pper, nickel, lithium, and tin at Batch e lor and Gre e n Alligator in the Norther n Au, Co, Cu, Li 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

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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

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

Issued Capital Issued Shares: 303 MLN Last Price: 3.4 cents Capitalisation: $10 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)

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 .

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 2