KORAB RESOURCES LIMITED — Capital/Financing Update 2018

Apr 22, 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

23 Ap r il 2018

Issued Capital Issued Shares: 303 MLN Last Price: 4.5 cents Capitalisation: $14 MLN

Listi n g Codes ASX: KOR BERLIN: C6S.BE

D irectors

Andrej K. Karpinski Ex e cutive Chairman Director

Rodney H. Skeet Non-e x ecutive Director Daniel A. Smetana Non-e x ecutive Director

Anthony G. Wills Non-e x ecutive Director

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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KOR A B COMPLETES P L ACEMEN T TO FAS T TRACK THE DEV E LOPME N T OF WI N CHESTE R MAGNE S IUM CA R BONATE DEPOSIT

Korab Resources L td (“ Korab ”, or “ Company ”) ( ASX: KOR ) is ple a sed to advi s e that it ha s compl e ted the placement of 4 M ln shares at 5 cents ea c h to un-rela t ed exempt investors. Th e place m ent was co m pleted with i n existing 1 5 % share placement ca p acity and n o shareholder appro v al was required. The plac e ment constit u ted approximately 1.3% di l ution of issu e d capital hel d by Ko r ab’s shareh o lders immedi a tely prior to this placem e nt. The Company used a placement of share s instead of a pro-rata sha r e issue due t o the time c o nstraints, th e relatively s m all size of th e issue a nd high co s t of conducting a pro-rat a issue. Ther e is a 6% c o mmission p a yable on thi s place m ent.

The funds raised u n der this plac e ment will be used primarily to fast trac k the key mil e stones in th e development of th e Wincheste r magnesium carbonate d eposit (pre p aration of t h e final min e mana g ement plan, a rranging of t he debt funding for the project, and ar r anging the o f ftakes for th e DSO o utput from the future Win c hester magn e sium carbonate quarry). T he remainin g funds will b e used f o r general op e rating expen s es, and to re d uce Korab’s liabilities.

On 21 March 2018, Korab repo rt ed the resul t s of the feasibility study i n to the devel o pment of th e Winch e ster magne s ium carbona t e deposit titl e d “WINCHE S TER MAGN E SITE DIRE C T SHIPPIN G ORE F EASIBILITY STUDY RES U LTS (EARNINGS, NPV, E BITDA, CA P EX, AND OPEX)”. Full text of this report can be accessed at:

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

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Figure 1 Test mining of magnesium carbonate rock at Winchester project (setting of explosives)

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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: 4.5 cents Capitalisation: $14 MLN

Listi n g Codes ASX: KOR BERLIN: C6S.BE

D irectors

Andrej K. Karpinski Ex e cutive Chairman Director

Rodney H. Skeet Non-e x ecutive Director Daniel A. Smetana Non-e x ecutive Director

Anthony G. Wills Non-e x ecutive Director

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

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Figure 2 Location of Winchester magnesium carbonate project relative to Darwin port

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Figure 3 Location of Winchester magnesium carbonate project relative to local infrastructure

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

INVE S TOR RELATIONS 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

Issued Capital Issued Shares: 303 MLN Last Price: 4.5 cents Capitalisation: $14 MLN

Listi n g Codes ASX: KOR BERLIN: C6S.BE

D irectors

Andrej K. Karpinski Ex e cutive Chairman Director

Rodney H. Skeet Non-e x ecutive Director Daniel A. Smetana Non-e x ecutive Director

Anthony G. Wills Non-e x ecutive Director

Projects

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

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

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 dep o sit at Batch e lor in the Nor t hern Territor y of Australia, as well as a g old and silver deposit at Bobrikov o in eastern U kraine. The C ompany also explores for c obalt, gold, n ickel, copper, zinc, l e ad and silver, as well as s p ecialty mine r als at Batchelor and at Gr e en Alligator i n the Norther n Territory and for g o ld and cop p er at Mt. El e phant/Ashbu r ton Downs i n Western Australia. 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’s shares ar e traded on A ustralian S e curities Exc h ange (ASX) and on the Berlin Stoc k Excha n ge (Berliner B örse) through Equiduct el e ctronic tradi n g platform.

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 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 .

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

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