KORAB RESOURCES LIMITED — Capital/Financing Update 2018

Mar 13, 2018

==> picture [44 x 86] intentionally omitted <==

==> picture [49 x 86] intentionally omitted <==

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

14 Ma r ch 2018

Issue d Capital

Shares: 297 Mln Last Price: 2.9 cents Capital: $ 8.61 Mln

Listing Codes ASX: KOR BERLIN: C6S.BE

WIN C HESTER MAGNESITE DIRE C T SHIPPING ORE F EASIBILITY STU D Y RESU L TS TO B E RELEASED NEXT WEEK

Korab Resources L t d (“Korab”, o r “Company”) (ASX: KOR) is pleased to advise that t h e final result s of the Winchester f e asibility stud y including e s timation of r e venues, NP V , gross earnings, EBITDA, and c a shflow are expected to be release e arly next w e ek to allow for their in c lusion in th e prese n tation by Kor a b Resource s at the upco m ing Lithium and Battery Metals Conference 2017 t o be hel d at Crown R e sort in Perth o n 21-22 Mar c h 2018.

Korab’s Executive C hairman Mr. Andrej Karpi n ski has bee n invited to s p eak at this c o nference an d plans t o address se v eral themes i ncluding:

D irectors

Andrej K. Karpinski Executive Chairman Director

Rodney H. Skeet Non-ex e cutive Director Daniel A. Smetana Non-ex e cutive Director

Anthony G. Wills Non-ex e cutive Director

P rojects

Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3)

Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)

Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, 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

==> picture [31 x 65] intentionally omitted <==

==> picture [35 x 65] intentionally omitted <==

1. New gener a tion magnesium-ion batte r ies (which ar e superior to l i thium-ion bat t eries in term s of perform a nce, storage capacity, po w er density, a n d durability);

2. Developm e nt progress of the Korab’s W inchester magnesium pr o ject; and

3. Cobalt/nickel exploration at Korab’s B a tchelor proje c t in the Nort h ern Territory.

The p r imary focus o f the presentation will be o n magnesiu m -ion batterie s which have 8 to 12 time s greate r capacity than lithium-io n batteries a nd can be r e-charged i n as little a s 36 minutes. Magn e sium-ion bat t ery's charge / discharge ef f iciency is 5 times higher than a lithiu m -ion battery. Anoth e r advantage of magnesiu m -ion batterie s is their ability to perform a t temperatur e s as low as - 30°C and as high as +55°C w hereas lithium-ion batteri e s cease to function at a round -15°C. Additi o nal benefit o f magnesium- i on batteries i s that they d o not use gra p hite and co n sequently ar e not de p endant on s u pply of this r e latively expe n sive material.

The p rimary raw m aterial use d in the pr o duction of m agnesium-io n batteries i s magnesiu m carbo n ate. Korab i s currently co n ducting an u pdate of the feasibility st u dy (FS) of t h e Winchester magn e sium carbon a te project pr i or to lodging a notice of i n tent to mine with the Nor t hern Territor y gover n ment. Winch e ster project i s located on a 350ha grant e d mining lea s e located ne a r the region a l centre of Batchelor, some 70km s outh of Darwin, the capital of the Northe r n Territory. Korab also operates the nearby 230 km[2] B a tchelor exploration projec t where it ha s successfull y compl e ted first stag e of an exten s ive drilling pr o gram targeti n g cobalt and accessory m e tals.

Korab is currently fi n alising the e s timates of re v enues and v a rious additio n al material f a ctors such a s costs o f haulage, p o rt charges, i n terest, debt repayment, r o yalties, over h eads, etc. Inclusion of thi s additional informati o n will allow e stimation of updated app r oximate NP V , gross earnings, EBITDA, and c a shflow). On 7 M arch 2018, K orab releas e d updated C A PEX and O P EX for the W inchester P r oject. The full text of the relevant a nnouncemen t can be foun d at: https:/ / www.asx.co m .au/asx/stati s tics/displayA n nouncement . do?display= p df&idsId=01959223

BACK G ROUND IN F ORMATION

Winch e ster Magne s ium Carbon a te Project c o nsists of a M ineral Leas e ML30587, 1 00% held b y AusM a g Pty Ltd, a wholly owne d subsidiary o f Korab Res o urces Ltd. K orab is the s ole marketin g agent f or the outpu t from the Wi n chester qua r ry. The proj e ct is located 2km east fro m the town of Batch e lor, some 70 km south of D arwin in the Northern Ter r itory. Mineral Lease ML30 5 87 covers a n area o f 352 ha.

==> picture [17 x 48] intentionally omitted <==

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

==> picture [44 x 86] intentionally omitted <==

==> picture [49 x 86] intentionally omitted <==

Issue d Capital

Shares: 297 Mln Last Price: 2.9 cents Capital: $ 8.61 Mln

Listing Codes ASX: KOR BERLIN: C6S.BE

D irectors Andrej K. Karpinski Executive Chairman Director

Rodney H. Skeet Non-ex e cutive Director Daniel A. Smetana Non-ex e cutive Director

Anthony G. Wills Non-ex e cutive Director

P rojects

Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3)

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

The main use for m a gnesium ca r bonate rock i s in production of various t y pes of magnesium oxides. China and North K o rea control m ajority of the economically viable magn e sium carbo n ate resource s in the w orld. Global magnesium o xide market i s worth approximately US$ 6 0 billion. Th e main sector s where magnesium o xide is used include: refr a ctory bricks w hich are us e d to line the inside of ste e l and gl a ss furnaces and cement k ilns; producti o n of flame r e tardants; pro d uction of fir e resistant an d moisture resistant b uilding mat e rials like ma g wall, MgO board and m ag cement; production of magn e sium alloys used extens i vely in cars, airplanes, t a nks, APC-s and other d efence uses; hydro m etallurgy of c obalt and nic k el productio n ; water purifi c ation and soil treatment and feedstock.

The p o tential game changer is t h e recent dev e lopment of m agnesium-io n batteries w h ich have 8 t o 12 tim e s greater c a pacity than li t hium-ion bat t eries and can be charge d in as little as 36 minutes. Magn e sium-ion bat t ery's charge / discharge ef f iciency is 5 times higher than a lithiu m -ion battery. Anoth e r advantage o f magnesiu m -ion battery i s its ability to perform at te m peratures a s low as -30° C and a s high as +5 5 °C whereas lithium-ion b a tteries cease to function a t around -15°C. Addition a l benefi t of magnesi u m-ion batte r ies is that t h ey do not u se graphite and conseq u ently are not depen d ant on suppl y of this relati v ely expensiv e material.

The v a riety of uses a nd the relati v e size of the magnesium o xide, and ma g nesium allo y s markets ar e of obvious benefit t o magnesium carbonate ro c k producers. By tonnage c omparison, t h e magnesiu m oxide m arket is approximately 4 0 times bigger than the lithium carbonat e market and approximatel y 22 tim e s bigger tha n the graphite market.

CONT A CT:

Andrej K Karpinski, E xecutive Ch a irman - Aust r alia: (08) 9474 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 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 o f Australia, G eolsec phos p hate rock d e posit also at Batchelor, a n d other gold, silver, copper, cobalt, nickel, an d polymetallic projects in A ustralia and o verseas. More informatio n about Korab’s projects can be s o urced from K orab’s websi t e at www.ko r ab.com.au. K orab’s share s are tr a ded on Aust r alian Securities Exchang e (ASX) and on the Berli n Stock Exch a nge (Berliner Börse) through Equiduct electronic trading plat f orm.

Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)

Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, 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

==> picture [31 x 65] intentionally omitted <==

==> picture [35 x 65] intentionally omitted <==

==> picture [17 x 48] intentionally omitted <==

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

==> picture [44 x 86] intentionally omitted <==

==> picture [49 x 86] intentionally omitted <==

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

Issue d Capital

Shares: 297 Mln Last Price: 2.9 cents Capital: $ 8.61 Mln

Listing Codes ASX: KOR BERLIN: C6S.BE

D irectors Andrej K. Karpinski Executive Chairman Director

Rodney H. Skeet Non-ex e cutive Director Daniel A. Smetana Non-ex e cutive Director

Anthony G. Wills Non-ex e cutive Director

P rojects

Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3)

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 .

LIST O F FIGURES

Figur e 1 Site locality plan ....... . ............................................................................................... 4 Figur e 2 Concept u al layout at e nd of year 3 – two-stag e , bench-by - bench development varia n t ..................................... . ............................................................................................... 4 Figur e 3 Test mining of magn e sium carbo n ate rock using drill-blas t ing. ............................... 5 Figur e 4 Winches t er Magnesit e deposit relative to basi c infrastruct u re and topography ...... 5

Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)

Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, 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

==> picture [31 x 65] intentionally omitted <==

==> picture [35 x 65] intentionally omitted <==

==> picture [17 x 48] intentionally omitted <==

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

==> picture [44 x 86] intentionally omitted <==

==> picture [49 x 86] intentionally omitted <==

Issue d Capital

Shares: 297 Mln Last Price: 2.9 cents Capital: $ 8.61 Mln

Listing Codes

ASX: KOR BERLIN: C6S.BE

D irectors

Andrej K. Karpinski Executive Chairman Director

Rodney H. Skeet Non-ex e cutive Director Daniel A. Smetana Non-ex e cutive Director

Anthony G. Wills Non-ex e cutive Director

P rojects

Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3)

Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)

Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, 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

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

==> picture [27 x 144] intentionally omitted <==

==> picture [55 x 144] intentionally omitted <==

==> picture [54 x 144] intentionally omitted <==

==> picture [55 x 144] intentionally omitted <==

==> picture [55 x 144] intentionally omitted <==

==> picture [55 x 144] intentionally omitted <==

==> picture [54 x 144] intentionally omitted <==

==> picture [55 x 144] intentionally omitted <==

==> picture [27 x 144] intentionally omitted <==

==> picture [55 x 144] intentionally omitted <==

==> picture [54 x 144] intentionally omitted <==

==> picture [55 x 144] intentionally omitted <==

==> picture [55 x 144] intentionally omitted <==

==> picture [55 x 144] intentionally omitted <==

==> picture [54 x 144] intentionally omitted <==

==> picture [55 x 144] intentionally omitted <==

Figure 1 Site locality plan

==> picture [27 x 145] intentionally omitted <==

==> picture [55 x 145] intentionally omitted <==

==> picture [54 x 145] intentionally omitted <==

==> picture [55 x 145] intentionally omitted <==

==> picture [55 x 145] intentionally omitted <==

==> picture [55 x 145] intentionally omitted <==

==> picture [54 x 145] intentionally omitted <==

==> picture [55 x 145] intentionally omitted <==

==> picture [27 x 144] intentionally omitted <==

==> picture [55 x 144] intentionally omitted <==

==> picture [54 x 144] intentionally omitted <==

==> picture [55 x 144] intentionally omitted <==

==> picture [55 x 144] intentionally omitted <==

==> picture [55 x 144] intentionally omitted <==

==> picture [54 x 144] intentionally omitted <==

==> picture [55 x 144] intentionally omitted <==

Figure 2 Conceptual layout at end of year 3 – two-stage, bench-by-bench development variant

==> picture [31 x 65] intentionally omitted <==

==> picture [35 x 65] intentionally omitted <==

==> picture [17 x 48] intentionally omitted <==

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 4

==> picture [44 x 86] intentionally omitted <==

==> picture [49 x 86] intentionally omitted <==

Issue d Capital

Shares: 297 Mln Last Price: 2.9 cents Capital: $ 8.61 Mln

Listing Codes

ASX: KOR BERLIN: C6S.BE

D irectors

Andrej K. Karpinski Executive Chairman Director

Rodney H. Skeet Non-ex e cutive Director Daniel A. Smetana Non-ex e cutive Director

Anthony G. Wills Non-ex e cutive Director

P rojects

Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3)

Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)

Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, 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

==> picture [31 x 65] intentionally omitted <==

==> picture [35 x 65] intentionally omitted <==

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

==> picture [27 x 271] intentionally omitted <==

==> picture [55 x 271] intentionally omitted <==

==> picture [54 x 271] intentionally omitted <==

==> picture [55 x 271] intentionally omitted <==

==> picture [55 x 271] intentionally omitted <==

==> picture [55 x 271] intentionally omitted <==

==> picture [54 x 271] intentionally omitted <==

==> picture [55 x 271] intentionally omitted <==

Figure 3 Test mining of magnesium carbonate rock using drill-blasting.

==> picture [27 x 272] intentionally omitted <==

==> picture [55 x 272] intentionally omitted <==

==> picture [54 x 272] intentionally omitted <==

==> picture [55 x 272] intentionally omitted <==

==> picture [55 x 272] intentionally omitted <==

==> picture [55 x 272] intentionally omitted <==

==> picture [54 x 272] intentionally omitted <==

==> picture [55 x 272] intentionally omitted <==

Figure 4 Winchester Magnesite deposit relative to basic infrastructure and topography

==> picture [17 x 48] intentionally omitted <==

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 5