KORAB RESOURCES LIMITED — Capital/Financing Update 2018

Apr 16, 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

17 Ap r il 2018

Issued Capital Issued Shares: 299 Mln Last Price: 4.2 cents Market Cap: $12.56 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 TO F A ST TRAC K THE DEVELOPM E NT OF WINCHEST E R MAGNESIUM C ARBON A TE DEPOSIT

Korab Resources L t d (“ Korab ”, o r “ Company ”) ( ASX: KOR ) is pleased t o advise that it has decide d to fast track the dev e lopment of t h e Wincheste r magnesium c arbonate de p osit located n ear Darwin i n the N o rthern Territory. On 21 March 2018, Ko r ab reported the results of t he feasibility study into th e development of the Winchester m agnesium c arbonate de p osit titled “ W INCHESTER MAGNESIT E DIRE C T SHIPPIN G ORE FEASIBILITY STU D Y RESULT S (EARNING S , NPV, EBI T DA, CAPEX, AND O PEX)”. Full t e xt of this rep o rt can be ac c essed at:

https:/ / www.asx.co m .au/asx/stati s tics/displayA n nouncement . do?display= p df&idsId=01964262 On 26 March 2018, Korab repor t ed that it ha s commence d a review of its operation s and project s locate d in Wester n Australia, a nd Ukraine (“REVIEW OF OPERATI O NS WITH T HE AIM O F DISP O SAL OF O T HER PRO J ECTS TO A LLOW KO R AB TO F O CUS ON W INCHESTE R MAGNESIUM CAR B ONATE PR O JECT AND R ELATED AS S ETS”).

The C o mpany has s ince decided to add to thi s review the G eolsec Phos p hate Project located in th e North e rn Territory w ith the aim o f sub-leasin g the Geolse c phosphate q uarry to an o ther operator while retaining the ownership of t h e project an d the mining l e ase within w h ich it is locat e d.

As regards the operations and pr o jects located in Western A ustralia, and U kraine, Kor a b has entere d into di s cussions wit h multiple int e rested partie s regarding a sale of the B o brikovo gold / silver mine, a sale o f the Pilbara c onglomerate assets, and a sale/joint-venture of the M t. Elephant p roject. Thes e divest m ents (should they occur) w ill allow Kor a b to focus its time, person n el, and othe r resources o n the re m aining asset s of the Com p any, specific a lly the Winc h ester magne s ium carbona t e quarry. Th e Comp a ny is also in the process o f reviewing p otential addi t ions to its te c hnical staff t o assist in th e development and th e operations o f the Winche s ter magnesi u m carbonate deposit.

As regards the funding, on 16 A p ril 2018, Kor a b reported that it has reso l ved to place up to 4 millio n share s at 5 cents e a ch to unrelated exempt in v estors. The funds raised u nder this pla c ement will b e used p rimarily to f a st track the k ey mileston e s in the dev e lopment of t he Winchest e r magnesiu m carbo n ate deposit ( p reparation o f the final mine manageme n t plan, arran g ing of the d e bt funding for the pr o ject, and se c uring the of f takes for the DSO output from the fut u re Winchest e r magnesiu m carbo n ate quarry). T he remainin g funds will b e used for ge n eral operati n g expenses, and to reduc e Korab’s liabilities.

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 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.

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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

DISC L AIMER AND CAUTIONAR Y STATEME N T

Issued Capital Issued Shares: 299 Mln Last Price: 4.2 cents Market Cap: $12.56 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

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 .

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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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