KORAB RESOURCES LIMITED — Capital/Financing Update 2018

Mar 6, 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

7 Mar c h 2018

Issue d Capital

Shares: 297 Mln Last Price: 2.8 cents Capital: $ 8.32 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

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WIN C HESTER MAGNESITE DIRE C T SHIPPING ORE F EASIBILITY STU D Y RESU L TS (CAP E X AND OPEX)

Korab Resources L t d (“Korab”, o r “Company” ) (ASX: KOR) is pleased t o provide the results of th e updat e of the pre-f e asibility stud y to develop W inchester m a gnesite dep o sit as a dire c t shipping or e (DSO) operation. T h is study was c ompleted by the Compan y using information collated and prepare d by Golder Associates Pty Ltd, t he Compan y , URS, Bate m an Tenova, and Devmi n Consultants. Following the current update, this is now a f easibility lev e l study; how e ver, for risk management reaso n s the Compa n y believed it would be pru d ent to contin u e using the o riginal accur a cy of the cost estimates of +/-30 % and cons e quently a 3 0 % contingency has bee n added to a ll capital an d operat i ng costs.

Assu m ptions and inputs (minin g work rate s , excavation and earthm o ving costs, labour costs, maint e nance costs, equipment and consu m ables cost s , as well a s other in p ut variables ) under p inning this st u dy which ge n erated the c a pital and ope r ating costs e s timates wer e sourced fro m appro p riate consult a nts and cont r actors. Whilst the aggregate estimates o f all components of capit a l and o p erating cost s are provided further in t his report (s e e Table 1 a nd Table 2 ) , the specifi c detailed work rates a nd prices w h ich were quo t ed by third p a rties are co m mercially se n sitive and ar e not disclosed in this report.

This s t udy assesse d capital (CA P EX) and operating costs ( O PEX) of Wi n chester project supplying a direct s hipping ore c rushed on sit e to average 2 5mm and sc r eened to sep a rate fines ( m inus 6mm).

As part of this upda t e, the Comp a ny evaluated the benefits o f utilising aut o matic miner a l ore sorter t o sort crushed rock i n to multiple s t reams which would reduc e the volume of waste an d increase th e propor t ion of saleable product.

The o u tput from the quarry woul d consist of c r ushed magn e site rock wit h a waste str e am consistin g of ma g nesite fines, dolomite, ta l c, and wast e rock (inclu d ing polymet a llic ores), w h ich would b e stored on site. The e stimated rati o of coarse s a leable magnesite rock to f ines used in t his study wa s 80%. T he study re v ealed that th e re may be a market for m agnesite fin e s, dolomite, talc, and other waste rock; howeve r any potential revenue fro m sale of thes e has not been included in t his study.

This i s an update o f the study results initially released t o the market on 13 Janu a ry 2015. Th e Comp a ny confirms that all the material ass u mptions underpinning th e production target, or th e foreca s t financial in f ormation der i ved from a production tar g et, in the init i al public rep o rt continue t o apply and have n o t materially changed. Additional infor m ation (cove r ing NPV, gross earnings, EBITDA, and cashfl o w) was rele a sed to the m a rket on 10 M a rch 2015.

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). This estimation is e xpected to b e completed s hortly and will be released to the market when a vailable.

This s t udy is based solely on indicated minera l resource. Inferred mineral resource sh o wn in Table 7 was n o t used in the estimation o f the producti o n target, or t he forecast f i nancial infor m ation derive d

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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

from t h e productio n target. The estimated m ineral resour c es underpin n ing this stu d y have bee n prepared by a competent person o r persons in accordance w ith the requir e ments in the JORC Code.

Issue d Capital

Shares: 297 Mln Last Price: 2.8 cents Capital: $ 8.32 Mln

Listing Codes ASX: KOR BERLIN: C6S.BE

Deposit is located s o uth of Darwi n in the Northern Territory, approximatel y 85km by ro a d, less than a hundr e d meters fro m sealed roa d , and less t h an 5km fro m railway line. For location of the project please see Figure 1, and Figur e 4. The de p osit is a shallow, flat layin g body covered by up to 5 meter s of unconsoli d ated soil an d gravel over b urden. Figur e 3 shows th e test mining o f magnesiu m carbo n ate rock at W inchester. S urface (top of the overburden) and t he top of the magnesiu m carbo n ate rock are clearly mark e d in the ph o to. Personn e l are visible in the open p it setting th e explosive charges. Blasted rock w as then ex c avated using hydraulic ex c avators and moved to th e pad u s ing trucks.

CAPI T AL COST ESTIMATES

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

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Capital costs of the Winchester p roject have been estimat e d at approximately $2.4 m illion to $2. 5 million (including 3 0 % contingen c y). Compon e nts of the c a pital costs o f the project are shown i n Table 1.

Result s of the stud y show that m ain compon e nts of capital expenditure are not sensitive to output capaci t y and that the capacity is primarily the function of d e mand for th e DSO magn e site rock. Th e capaci t y of the pro j ect would t h erefore ultim a tely depend on any off-t a ke and/or l o ng term sal e agree m ents. The s t udy assume d that contra c tors would be used for m ajority of pr o ject operatin g tasks thus reducing capital costs b y limiting th e need for ow n er operated e quipment. C a pital cost ha s been e stimated for the develop m ent of open pit operatio n s with requir e d access roads, bunding, pads, a nd other site infrastructur e , waste and w ater manage m ent etc.

Sever a l development variants w ere evaluated initially. In the end, a t wo-stage, b e nch-by-benc h development was s e lected as th e optimum variant for this feasibility stud y update. Und e r this variant, estimated capital c osts were s ignificantly r e duced due to (among o thers) small e r volume of overb u rden to be r e moved prior to commenc e ment of mining, no requir e ment for co n struction an d maint e nance of a di v ersion chan n el, and a red u ced waste a n d water man a gement requirements.

The st u dy was bas e d on a conce p tual mine th a t could oper a te at various capacity levels: 375,000T/ y ROM capacity, 75 0 ,000T/y RO M capacity a n d 1,000,000T/y ROM c a pacity. Thes e levels wer e select e d on the basis of Korab’s d iscussions w i th potential b u yers of the m agnesite roc k . Korab is th e sole m arketing agent for all roc k produced by Korab’s wholly owned s ubsidiary Au s Mag Pty Ltd. AusM a g Pty Ltd is t h e owner and operator of t h e Winchester Project.

The la y out of the p r oject under t w o-stage, be n ch-by-bench operating sc e nario with st a ge-1 open pit quarry and quarry infrastructure i s shown in Fi g ure 2.

The e s timated capit a l costs are r o unded to the nearest significant digit an d are provide d as ranges.

Table 1 Project estimated capital costs

ect estim ated capital c osts
SUMMA RY	**FROM **	TO
WAT ER MANAGEME NT	390,000	400,000
SITE INFRASTRUCT URE	580,000	590,000
WAS TE PRODUCTS DUMPS	100,000	110,000
QUA RRY	810,000	820,000
SUBTO TAL	1,880,000	1,920,000
CON TlNGENCY (30% )	564,000	576,000
TOTAL ESTIMATE	2,444,000	2,496,000

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

OPER A TING COST ESTIMATES

Issue d Capital

Shares: 297 Mln Last Price: 2.8 cents Capital: $ 8.32 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

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Estim a ted approximate project o p erating cost s at various o utput capaci t ies are shown in Table 2, Table 3, and Tabl e 4. The esti m ated operating costs are r o unded to the nearest signi f icant digit an d are pr o vided as ran g es.

Table 2 WATE WAST MINEA SUBTO CONT TOTAL CAPAC SALEA COAR CAPA (T/YR. CAPAC Table 3 WATE WAST MINEA SUBTO CONT TOTAL CAPAC SALEA COAR CAPA (T/YR. CAPAC Table 4 WATE WAST MINEA SUBTO CONT TOTAL CAPAC SALEA COAR CAPA (T/YR. CAPAC Project estim R MANAGEMEN E DUMPS ($/YR NDCRUSHING TAL($/YR.) INGENCY(30%) ESTIMATE ITYOUTPUTR BLECOARSEM SE MAGNESITE CITY OUTPUT C ) ITYOUTPUTF Project estim R MANAGEMEN E DUMPS ($/YR NDCRUSHING TAL($/YR.) INGENCY(30%) ESTIMATE ITYOUTPUTR BLECOARSEM SE MAGNESITE CITY OUTPUT C ) ITYOUTPUTF Project estim R MANAGEMEN E DUMPS ($/YR NDCRUSHING TAL($/YR.) INGENCY(30%) ESTIMATE ITYOUTPUTR BLECOARSEM SE MAGNESITE CITY OUTPUT C ) ITYOUTPUTF ated operating Description T($/YR.) .) ($/YR.) OM MAGNESIT AGNESITECO /FINES OARSE SALEA INES (T/YR.) ated operating Description T($/YR.) .) ($/YR.) OM MAGNESIT AGNESITECO /FINES OARSE SALEA INES (T/YR.) ated operating Description T($/YR.) .) ($/YR.) OM MAGNESIT AGNESITECO /FINES OARSE SALEA INES (T/YR.) costs (shove E(T/YR.) ST($/T) BLE MAGNESIT costs (shove E(T/YR.) ST($/T) BLE MAGNESIT costs (shove E(T/YR.) ST($/T) BLE MAGNESIT l and truck, d E l and truck, d E l and truck, d E rill and blast) From 180,000 190,000 6,053,000 6,423,000 1,926,900 8,349,900 375,000 27 80% 300,000 75,000 rill and blast) From 180,000 190,000 10,078,000 10,448,000 3,134,400 13,582,400 750,000 22 80% 600,000 150,000 rill and blast) From 180,000 190,000 12,997,000 13,367,000 4,010,100 17,377,100 1,000,000 21 80% 800,000 200,000 at 375KT/Y ca To 190,000 200,000 6,054,000 6,444,000 1,933,200 8,377,200 375,000 28 80% 300,000 75,000 at 750KT/Y ca To 190,000 200,000 10,079,000 10,469,000 3,140,700 13,609,700 750,000 23 80% 600,000 150,000 at 1,000KT/Y c To 190,000 200,000 12,998,000 13,388,000 4,016,400 17,404,400 1,000,000 22 80% 800,000 200,000 pacity pacity apacity	Table 2 WATE WAST MINEA SUBTO CONT TOTAL CAPAC SALEA COAR CAPA (T/YR. CAPAC Table 3 WATE WAST MINEA SUBTO CONT TOTAL CAPAC SALEA COAR CAPA (T/YR. CAPAC Table 4 WATE WAST MINEA SUBTO CONT TOTAL CAPAC SALEA COAR CAPA (T/YR. CAPAC Project estim R MANAGEMEN E DUMPS ($/YR NDCRUSHING TAL($/YR.) INGENCY(30%) ESTIMATE ITYOUTPUTR BLECOARSEM SE MAGNESITE CITY OUTPUT C ) ITYOUTPUTF Project estim R MANAGEMEN E DUMPS ($/YR NDCRUSHING TAL($/YR.) INGENCY(30%) ESTIMATE ITYOUTPUTR BLECOARSEM SE MAGNESITE CITY OUTPUT C ) ITYOUTPUTF Project estim R MANAGEMEN E DUMPS ($/YR NDCRUSHING TAL($/YR.) INGENCY(30%) ESTIMATE ITYOUTPUTR BLECOARSEM SE MAGNESITE CITY OUTPUT C ) ITYOUTPUTF ated operating Description T($/YR.) .) ($/YR.) OM MAGNESIT AGNESITECO /FINES OARSE SALEA INES (T/YR.) ated operating Description T($/YR.) .) ($/YR.) OM MAGNESIT AGNESITECO /FINES OARSE SALEA INES (T/YR.) ated operating Description T($/YR.) .) ($/YR.) OM MAGNESIT AGNESITECO /FINES OARSE SALEA INES (T/YR.) costs (shove E(T/YR.) ST($/T) BLE MAGNESIT costs (shove E(T/YR.) ST($/T) BLE MAGNESIT costs (shove E(T/YR.) ST($/T) BLE MAGNESIT l and truck, d E l and truck, d E l and truck, d E rill and blast) From 180,000 190,000 6,053,000 6,423,000 1,926,900 8,349,900 375,000 27 80% 300,000 75,000 rill and blast) From 180,000 190,000 10,078,000 10,448,000 3,134,400 13,582,400 750,000 22 80% 600,000 150,000 rill and blast) From 180,000 190,000 12,997,000 13,367,000 4,010,100 17,377,100 1,000,000 21 80% 800,000 200,000 at 375KT/Y ca To 190,000 200,000 6,054,000 6,444,000 1,933,200 8,377,200 375,000 28 80% 300,000 75,000 at 750KT/Y ca To 190,000 200,000 10,079,000 10,469,000 3,140,700 13,609,700 750,000 23 80% 600,000 150,000 at 1,000KT/Y c To 190,000 200,000 12,998,000 13,388,000 4,016,400 17,404,400 1,000,000 22 80% 800,000 200,000 pacity pacity apacity	Table 2 WATE WAST MINEA SUBTO CONT TOTAL CAPAC SALEA COAR CAPA (T/YR. CAPAC Table 3 WATE WAST MINEA SUBTO CONT TOTAL CAPAC SALEA COAR CAPA (T/YR. CAPAC Table 4 WATE WAST MINEA SUBTO CONT TOTAL CAPAC SALEA COAR CAPA (T/YR. CAPAC Project estim R MANAGEMEN E DUMPS ($/YR NDCRUSHING TAL($/YR.) INGENCY(30%) ESTIMATE ITYOUTPUTR BLECOARSEM SE MAGNESITE CITY OUTPUT C ) ITYOUTPUTF Project estim R MANAGEMEN E DUMPS ($/YR NDCRUSHING TAL($/YR.) INGENCY(30%) ESTIMATE ITYOUTPUTR BLECOARSEM SE MAGNESITE CITY OUTPUT C ) ITYOUTPUTF Project estim R MANAGEMEN E DUMPS ($/YR NDCRUSHING TAL($/YR.) INGENCY(30%) ESTIMATE ITYOUTPUTR BLECOARSEM SE MAGNESITE CITY OUTPUT C ) ITYOUTPUTF ated operating Description T($/YR.) .) ($/YR.) OM MAGNESIT AGNESITECO /FINES OARSE SALEA INES (T/YR.) ated operating Description T($/YR.) .) ($/YR.) OM MAGNESIT AGNESITECO /FINES OARSE SALEA INES (T/YR.) ated operating Description T($/YR.) .) ($/YR.) OM MAGNESIT AGNESITECO /FINES OARSE SALEA INES (T/YR.) costs (shove E(T/YR.) ST($/T) BLE MAGNESIT costs (shove E(T/YR.) ST($/T) BLE MAGNESIT costs (shove E(T/YR.) ST($/T) BLE MAGNESIT l and truck, d E l and truck, d E l and truck, d E rill and blast) From 180,000 190,000 6,053,000 6,423,000 1,926,900 8,349,900 375,000 27 80% 300,000 75,000 rill and blast) From 180,000 190,000 10,078,000 10,448,000 3,134,400 13,582,400 750,000 22 80% 600,000 150,000 rill and blast) From 180,000 190,000 12,997,000 13,367,000 4,010,100 17,377,100 1,000,000 21 80% 800,000 200,000 at 375KT/Y ca To 190,000 200,000 6,054,000 6,444,000 1,933,200 8,377,200 375,000 28 80% 300,000 75,000 at 750KT/Y ca To 190,000 200,000 10,079,000 10,469,000 3,140,700 13,609,700 750,000 23 80% 600,000 150,000 at 1,000KT/Y c To 190,000 200,000 12,998,000 13,388,000 4,016,400 17,404,400 1,000,000 22 80% 800,000 200,000 pacity pacity apacity	Table 2 WATE WAST MINEA SUBTO CONT TOTAL CAPAC SALEA COAR CAPA (T/YR. CAPAC Table 3 WATE WAST MINEA SUBTO CONT TOTAL CAPAC SALEA COAR CAPA (T/YR. CAPAC Table 4 WATE WAST MINEA SUBTO CONT TOTAL CAPAC SALEA COAR CAPA (T/YR. CAPAC Project estim R MANAGEMEN E DUMPS ($/YR NDCRUSHING TAL($/YR.) INGENCY(30%) ESTIMATE ITYOUTPUTR BLECOARSEM SE MAGNESITE CITY OUTPUT C ) ITYOUTPUTF Project estim R MANAGEMEN E DUMPS ($/YR NDCRUSHING TAL($/YR.) INGENCY(30%) ESTIMATE ITYOUTPUTR BLECOARSEM SE MAGNESITE CITY OUTPUT C ) ITYOUTPUTF Project estim R MANAGEMEN E DUMPS ($/YR NDCRUSHING TAL($/YR.) INGENCY(30%) ESTIMATE ITYOUTPUTR BLECOARSEM SE MAGNESITE CITY OUTPUT C ) ITYOUTPUTF ated operating Description T($/YR.) .) ($/YR.) OM MAGNESIT AGNESITECO /FINES OARSE SALEA INES (T/YR.) ated operating Description T($/YR.) .) ($/YR.) OM MAGNESIT AGNESITECO /FINES OARSE SALEA INES (T/YR.) ated operating Description T($/YR.) .) ($/YR.) OM MAGNESIT AGNESITECO /FINES OARSE SALEA INES (T/YR.) costs (shove E(T/YR.) ST($/T) BLE MAGNESIT costs (shove E(T/YR.) ST($/T) BLE MAGNESIT costs (shove E(T/YR.) ST($/T) BLE MAGNESIT l and truck, d E l and truck, d E l and truck, d E rill and blast) From 180,000 190,000 6,053,000 6,423,000 1,926,900 8,349,900 375,000 27 80% 300,000 75,000 rill and blast) From 180,000 190,000 10,078,000 10,448,000 3,134,400 13,582,400 750,000 22 80% 600,000 150,000 rill and blast) From 180,000 190,000 12,997,000 13,367,000 4,010,100 17,377,100 1,000,000 21 80% 800,000 200,000 at 375KT/Y ca To 190,000 200,000 6,054,000 6,444,000 1,933,200 8,377,200 375,000 28 80% 300,000 75,000 at 750KT/Y ca To 190,000 200,000 10,079,000 10,469,000 3,140,700 13,609,700 750,000 23 80% 600,000 150,000 at 1,000KT/Y c To 190,000 200,000 12,998,000 13,388,000 4,016,400 17,404,400 1,000,000 22 80% 800,000 200,000 pacity pacity apacity
	Description	From	To
WATE R MANAGEMEN T($/YR.)		180,000	190,000
WAST E DUMPS ($/YR .)		190,000	200,000
MINEA NDCRUSHING ($/YR.)		12,997,000	12,998,000
SUBTO TAL($/YR.)		13,367,000	13,388,000
CONT INGENCY(30%)		4,010,100	4,016,400
TOTAL ESTIMATE		17,377,100	17,404,400
CAPAC ITYOUTPUTR OM MAGNESIT E(T/YR.)		1,000,000	1,000,000
SALEA BLECOARSEM AGNESITECO ST($/T)		21	22
COAR SE MAGNESITE /FINES		80%	80%
CAPA (T/YR. CITY OUTPUT C ) OARSE SALEA BLE MAGNESIT E		800,000	800,000
CAPAC ITYOUTPUTF INES (T/YR.)		200,000	200,000

All variants shown a bove assumed standard s hovel and tr u ck mining m ethod with li m ited drill an d blasting.

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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

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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

CAUT I ONARY STATEMENT

Issue d Capital

Shares: 297 Mln Last Price: 2.8 cents Capital: $ 8.32 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

The f e asibility stud y referred to in this ann o uncement h a s been und e rtaken for t h e purpose of estimating approximate capital a n d operating costs of the Winchester Ma g nesium Carbonate Project. It is a p reliminary te c hnical and e c onomic stud y of the pote n tial viability o f this Project. It is based o n low le v el technical a nd economic assessment s that are not s ufficient to s u pport the es t imation of or e reserv e s. Further e v aluation wor k and appropriate studies a r e required b e fore the Company will be i n a posi t ion to estim a te any ore r e serves or to provide any a ssurance of an economi c development case. This f e asibility stud y is based on the material assumptions outlined else w here in this report, and i n prior r e ports releas e d on 13 Jan u ary 2015 an d 10 March 2 0 15. The Co m pany confir m s that, all th e materi a l assumptions underpinni n g the produc t ion target, or the forecast f i nancial infor m ation derive d from a production t arget, in th e initial publi c reports continue to appl y and have not materiall y chang e d. These include assumptions about th e availability o f funding. W h ile the Company consider s all of t h e material a s sumptions to be based on reasonable g r ounds, there is no certaint y that they will prove t o be correct o r that the range of outcom e s indicated by the feasibili t y study will b e achieved.

To ac h ieve the range of outcome s indicated in the feasibility study, fundin g in the order of $3.5 millio n to $4 m illion will lik e ly be require d . Investors s h ould note th a t there is no certainty that the Compan y will be able to raise that amount of funding w h en needed. It is also pos s ible that suc h funding ma y only b e available o n terms that m ay be diluti v e to or other w ise affect the value of K o rab’s existin g share s .

It is al s o possible t h at the Comp a ny could pu r sue other ‘value realisatio n ’ strategies s uch as a joint ventur e , a partial s ale, or a sale of the pro j ect. If it does, this could materially r e duce Korab’ s propor t ionate ownership of the pr o ject.

Given the uncertainties involved, investors sh o uld not mak e any invest m ent decision s based solel y on the results of the feasibility stu d y.

AVAI L ABILITY OF FUNDING

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

On 23 March 2016 t he Company reported that it has entere d into an agre e ment with Mr. Hong Wan g (who r e presents int e rests associ a ted with Chi n ese steel in d ustry, bankin g and financ e , constructio n and building mate r ials) for a $ 6 million d e velopment f u nding for t h e Winchest e r magnesiu m carbo n ate project. U nder this ag r eement, the $ 6 million de v elopment fu n ding would be provided b y way o f funders and / or their nomi n ees acquirin g a direct 25 % -30% equity interest in A u sMag Pty Lt d (wholl y owned subsidiary of Kor a b developing the Winchester project) a n d would be conditional o n Korab (or AusMag) s ecuring addi t ional offtake s for magnesi u m carbonate rock. The pa r ties are yet t o finalis e the funding documentati o n for this tra n saction inclu d ing the sub s cription agre e ment and th e mana g ement agree m ent. The parties have agreed to wait w ith finalising the funding d ocumentatio n until K orab finalise s and publish e s updated e stimates of g ross earning s , cashflow, NPV, and th e projec t ed aggregat e earnings be f ore interest t a x and amortisation (EBIT D A) for Winc h ester Project. This e stimation is expected to be complete d shortly an d will be rel e ased to the market whe n availa b le.

The C o mpany assumed for the p urpose of thi s study that t h e funding m a y be source d either under the ab o ve agreeme n t, or in the a lternative, as a combination of debt (by way of a for w ard sale) an d equity (by way of a n institutional p lacement, a n d/or a pro-ra t a share issu e ). In light of t h e informatio n receiv e d from rele v ant counter p arties, and g iven the rel a tively low C A PEX of the project, bot h avenu e s appear feasible.

MINI N G PLAN

Result s of the stud y show that a verage waste rock to or e ratio for th e entire minin g operation i s appro x imately 0.45 to 1 T/T, tho u gh the actua l ratio will fluctuate over th e life of the p r oject. Initially,

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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 4

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Issue d Capital

Shares: 297 Mln Last Price: 2.8 cents Capital: $ 8.32 Mln

Listing Codes ASX: KOR BERLIN: C6S.BE

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

the w a ste rock to o re ratio woul d be about 0.85 to 1, while towards th e end of min e -life the rati o would be less than 0.2. The average ratio of all waste (ov e rburden plu s waste rock) to ore for th e entire m ining operation was appr o ximately 0.5 5 to 1 T/T.

The d e sign criteria f o r the open p i t used in this study are su m marised in t h e following table.

Table 5 Open pit design criteria

Bench Height (m)			5
Distance betw een berms (m	)		20
Berm Width (m )			5
Road Width (m )			20
Maximum Roa d Gradient (%	)		12.5

The sl o pe design p a rameters used in this stud y are summarised in the foll o wing table.

Table 6 Open pit slope design parameters

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

t slop e design para meters
Uni t		Face Angle	FaceH eight
Ove rburden		40°	Irregu lar
Und isturbed rock		70°	20m

A thin layer (up to 5m) of unconsolidated s o il and unconsolidated all u vium overlie s the massiv e magn e site at the W i nchester de p osit. This ov e rburden would require pro g ressive rem o val to expos e the h a rd, consolid a ted magnesi t e. It is exp e cted that th e unconsolid a ted, overbur d en could b e remov e d by tractor s craper.

Under shovel and drill/blast opti o n, conventio n al open pit m ining metho d s using rubb e r-tyred truck s and ei t her a hydraulic excavator o r rubber-tyre d , front end lo a der were pr o posed for ex c avation of th e open p it materials. Please refer to the Figure 3 for a phot o of the pers o nnel setting the explosiv e charg e s in the Winc h ester open p it during the p rior test mini n g operations.

Under the shovel a n d drill/blast o p tion, magne s ite would req u ire blasting p rior to excav a tion and min e bench e s are expe c ted to be s u itable for r u nning rubbe r tyred minin g equipment with minim a l preparation.

Study indicates that optimum variant is for the mining opera t ions to be ini t ially carried o ut on a yearl y camp a ign basis by e mploying a s pecialist mining contractor. Study show s that campai g n mining ca n be util i sed as the p referred mo d e of operation up to appr o ximately 1,0 0 0,000 ROM output. If th e volum e s increase b eyond this level, it is e x pected that the project c ould move to year roun d operat i on.

MINE R AL RESOU R CES ESTIM A TES FOR WINCHESTER M AGNESITE DEPOSIT

Curre n t estimated m ineral resour c es at Winch e ster underpi n ning this pre - feasibility st u dy are show n in the f ollowing tabl e :

Table 7 Mineral resources estimate

A t 40% MgO Cu t-Off	MgCO Mass	MgO grade
	‘000 To nnes	%
IndicatedR esources	12,2 00	43.1
Inferred Re sources	4,4 00	43.6
Total	16,6 00	43.2

There has been no change to th e Winchester m ineral resource estimate s ince it was l a st reported i n the Annual Report 2017.

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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 5

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Issue d Capital

Shares: 297 Mln Last Price: 2.8 cents Capital: $ 8.32 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

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

This information wa s prepared and first disclos e d under the J ORC Code 2 004 on 17 July 2007. It ha s not been updated since to comp l y with the J O RC Code 2012 on the ba s is that the i n formation ha s not m a terially changed since it w a s last reported.

The a u thor of this R eport is not aware of any new infor m ation or dat a that materially affects th e inform a tion included in the report released on 1 7 July 2007 a nd, in the ca s e of mineral r esources that all the material as s umptions an d technical p arameters u n derpinning t h e estimates in the report releas e d on 17 July 2007 continu e to apply an d have not materially chang e d. The form and context i n which the findings o f the report r eleased on 1 7 July 2007 are presente d have not b e en materiall y modifi e d.

TIME F RAME FOR D EVELOPME N T AND PRODUCTION

The C ompany is a iming to co m mence the development of the proj e ct and the production of magn e sium carbon a te rock as so o n as practic a ble. The Co m pany intend s to lodge a “ N otice of intent to min e ” with the Northern Territo r y Departmen t of Primary I n dustry and R e sources ver y shortly.

For th e purpose of t his study th e Company a s sumed that the funding for the project, completion of sales and/or offtakes of magn e sium carbonate rock, an d securing r e quired gov e rnmental an d regula t ory project a pprovals will take approximately 12-14 months. This assumptio n is based o n inform a tion obtaine d from our dis c ussions with the relevant c ounterparties.

Howe v er; investors should note that the actual timeframe of the devel o pment and p roduction will depen d on the act u al availabilit y of funding f o r the project, completion of sales and / or offtakes of magn e sium carbonate rock, se c uring required governm e ntal and re g ulatory proj e ct approvals, acces s to transport , and market factors such as magnesium carbonate rock prices, e nergy prices, foreig n exchange ra t es, etc. whic h are outside t he control of the Company.

Shoul d there be a d e lay with sec u ring the funding, sales, or regulatory pe r mits, or should there be a n adver s e change in a ny of the re m aining aforementioned fa c tors, it may i mpact on th e development and pr o duction time f rame.

ACCE S S TO TRAN S PORT

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

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Sea tr a nsport is av a ilable from D arwin Port’s East Arm w h ich is locate d 93km to th e north of th e projec t . Bulk materi a ls handling f a cility at East Arm include s an 850m rai l spur, 1,500 T /H rail botto m dump station, stockpiles, haul ro a ds and a 2, 0 00T/H travel l ing gantry s h iploader. Th e shiploader i s designed for Pana m ax class shi p s. Road tran s port by haul a ge trucks is a vailable to t h e Darwin port and to South Austr a lia, Victoria, N ew South W ales and Qu e ensland via B atchelor roa d and then vi a Stuart Highway. D a rwin to Adel a ide railway line runs alo n g Stuart Hig h way and is transected b y Batch e lor road appr o ximately 5k m from the de p osit. Currently there are n o rail loading f acilities either at Bat c helor or near the point wh e re Batchelor road transec t s the railway line. On 8 N o vember 2017, Korab reported that it has sign e d Heads of Agreement with the operator of Dar w in port. Ho A envisages exportin g of 500,000 t pa of magn e site rock thr o ugh Darwin Port East A r m Wharf an d includ e s sub-leasin g of the land, access to v arious port facilities, and use of load e rs, and other equip m ent. HoA pr o vides the b a sis for the fi n al port agre e ment which will allow for exporting th e magn e sium carbon a te rock throu g h Darwin.

PROJ E CT APPRO V ALS

Winch e ster deposit is located on a granted mineral lease M L 30587 hel d by Korab’s wholly owne d subsidiary AusMag Pty Ltd. Befo r e the quarry c an be established, an ap p ropriate Min e Management Plan ( M MP) will ne e d to be sub m itted to the N orthern Terri t ory Departm e nt of Primar y Industry an d Resources and Aus M ag will need to receive th e authorisatio n to impleme n t this MMP. P rior to lodgin g the M M P, AusMag will lodge a “ Notice of int e nt to mine” t o allow the D epartment to complete th e preliminary assess m ent of the pl a nned develo p ment.

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Issue d Capital

Shares: 297 Mln Last Price: 2.8 cents Capital: $ 8.32 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

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

Winch e ster quarry l a yout, pit design, site infra s tructure desi g n, and choi c e of equipment ensure that development and o peration of the Winche s ter quarry w ill have ver y small foot p rint and lo w enviro n mental impa c t.

Winch e ster deposit and the min e ral lease ar e located wh o lly on freeh o ld land and no native titl e appro v als would b e required t o establish a quarry. However, any s acred sites and sites of anthro p ological or h istorical sign i ficance that a re located w ithin the proj e ct area would need to b e protec t ed. The Co m pany will liai s e and consu l t with all affected parties a nd various s t akeholders t o ensur e that the proj e ct is well supported.

PROD U CTION SC H EDULE

The C o mpany used the following production schedule in this feasibility stu d y.

Ye ar	Salea ('00 ble Tonnage 0 tonnes)	ROM Tonna tonne ge ('000 s)	Cu P mulative ROM roduction ('000 tonnes)	Res Classi ource fication
1	600	750	750	indic ated
2	600	750	1,500	indic ated
3	600	750	2,250	indic ated
4	800	1,00 0	3,250	indic ated
5	800	1,00 0	4,250	indic ated
6	800	1,00 0	5,250	indic ated
7	800	1,00 0	6,250	indic ated
8	800	1,00 0	7,250	indic ated
9	1,000	1,25 0	8,500	indic ated
10	1,000	1,25 0	9,750	indic ated
11	1,000	1,25 0	11,000	indic ated
12	960	1,20 0	12,200	indic ated

This production sc h edule is ba s ed solely on indicated mineral resour c es. For min e ral resource s estimate which includes both indi c ated and inf e rred mineral r esources ple a se refer to T a ble 7.

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

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The p r oduction sch e dule was de v eloped after consultation with potential and prospe c tive buyers of magn e sium carbon a te rock.

Simila r ly to the Timeframe for P r oduction and Development section; inv e stors should note that th e actual production s chedule will depend on the availabili t y of fundin g for the Pr o ject, finalise d magn e sium carbon a te rock sale s and/or offt a kes, govern m ental and r e gulatory proj e ct approvals, acces s to transport, and other f a ctors such a s magnesiu m carbonate r ock prices, e nergy prices, foreig n exchange ra t es, etc. whic h are outside t he control of the Company.

On 4 N ovember 2015, the Comp a ny reported t h at it has sig n ed Heads of A greement for the supply of 300,0 0 0 tonnes of m agnesium c a rbonate rock per year for 5 years (HoA ) . On 6 Marc h 2018, Kora b has te r minated this H oA without p enalties by giving notice in writing to th e counterparty as envisage d by the terms of Ho A . This termin a tion will allo w Korab great e r flexibility in setting volu m es and price s during the ongoing d iscussions w i th potential a n d prospectiv e buyers of m a gnesium ca r bonate rock.

MODI F YING FACT O RS

For m a terial modifying factors an d assumption s used in this study which a re not disclo s ed elsewher e in this report please refer to Tabl e 8.

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

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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 7

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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

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.

Issue d Capital

Shares: 297 Mln Last Price: 2.8 cents Capital: $ 8.32 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

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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.

COMPETENT PER S ON STATE M ENT

The information in t his report th a t relates to Mineral Res o urces under p inning the f e asibility stud y report e d in this rep o rt is based o n information compiled by the Compan y and review e d by Malcol m Castle , a competen t person who is a Member of the Austr a lasian Institu t e of Mining a nd Metallurg y (“AusI M M”). It fairl y represents, information a nd supporting document a tion prepare d by Malcol m Castle who is a con s ultant geolo g ist employed by Agricola M ining Consul t ants Pty Ltd. Mr Castle ha s suffici e nt experience that is rel e vant to the style of mineralisation a n d type of d e posits under consideration and t o the activity b eing underta k en to qualify a s a Compet e nt Person as defined in th e 2004 e dition of the “ Australasian Code for Re p orting of Ex p loration Res u lts, Mineral R esources an d Ore R e serves” (“JORC Code”). M alcolm Castl e consents to the inclusion in this report of the matter s based on his information in the f o rm and cont e xt in which it appears. Thi s information was prepare d and first disclosed u nder the JO R C Code 20 0 4. It has not been updat e d since to c o mply with th e JORC Code 2012 o n the basis that the info r mation has n ot materially changed since it was last report e d.

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.

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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 8

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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

Issue d Capital

Shares: 297 Mln Last Price: 2.8 cents Capital: $ 8.32 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

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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 TABLES

Table 1 Project estimated cap i tal costs .................................................................................. 2 Table 2 Project estimated ope r ating costs (shovel and truck, drill a n d blast) at 3 75KT/Y capa c ity .................................. . ............................................................................................... 3 Table 3 Project estimated ope r ating costs (shovel and truck, drill a n d blast) at 7 50KT/Y capa c ity .................................. . ............................................................................................... 3 Table 4 Project estimated ope r ating costs (shovel and truck, drill a n d blast) at 1,000KT/Y capa c ity .................................. . ............................................................................................... 3 Table 5 Open pit d esign criteri a ............................................................................................. 5 Table 6 Open pit s lope design parameters ............................................................................ 5 Table 7 Mineral resources estimates ..................................................................................... 5 Table 8 Material m odifying fac t ors ....................................................................................... 1 0 LIST O F FIGURES Figur e 1 Site locality plan ....... . ............................................................................................. 1 2 Figur e 2 Concept u al layout at e nd of year 3 – two-stag e , bench-by - bench development varia n t ..................................... . ............................................................................................. 1 2 Figur e 3 Test mining of magn e sium carbo n ate rock using drill-blas t ing. ............................. 1 3 Figur e 4 Winches t er Magnesit e deposit relative to basi c infrastruct u re and topography .... 1 3

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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 9

				KO KO www RAB RABH .korab.com RE OUSE .au SOU RCE S L IMIT ED	KO KO www RAB RABH .korab.com RE OUSE .au SOU RCE S L IMIT ED	KO KO www RAB RABH .korab.com RE OUSE .au SOU RCE S L IMIT ED
	Issued Shar Last Price Capita Listin BERL D Andrej K Exec Rodn Non-exe Daniel A Non-exe Antho Non-exe P (Rum J Magnes (Rum J P (Rum J Au, Ag, Zn, M (Ashb (P Marble Ba (P Capital es:297Mln :2.8cents l: $8.32Mln g Codes ASX: KOR IN: C6S.BE irectors . Karpinski utive Chairman Director ey H. Skeet cutive Director . Smetana cutive Director ny G. Wills cutive Director rojects Winchester ungle, NT) ium carbonate (MgCO3) Geolsec ungle, NT) hosphate rock (P2O5) Batchelor ungle, NT) Pb, Ni, Cu, Co, Sc, Mn t. Elephant urton, WA) Au, Cu Karratha ilbara, WA) Au, Co, Cu r/Nullagine ilbara, WA) Au, Co, Cu, Li			Table 8 Material mod ifying factors
				M ODIFYING FAC TOR		COMMENTS
				Legal	W l 2 r e o c m inchester de icence) ML305 0 October 204 enewed multip ntitled to a ro perating costs harges and ro agnesite rock posit is located 87. ML30587h 0 prior to whic le times. Eas yalty of 5% o , transportation yalties, as we mined fromW within the gr as an area of h date it canb t Africa Resou f net profits ac and sales co ll as marketing inchester depo anted Mineral 352 ha and wa e renewed. Th rces Limited hieved afterd sts and all taxe costs and fe sit. Lease (mining s granted up to e lease can be (ASX: EAF) is eduction of al s, governmen es on sales o l t f
				Infrastru cture	T B t p v G a a he deposit is atchelor road o Adelaide rail ower runs alo oltage power as pipeline ru vailable on sit lternative acco located 2km and 75km from line runs appro ng the Batche lines run acros ns approximate e. Accommoda mmodation is east from th Darwin porta ximately 5kmf lor road nextt s the project 2 ly 3 km easto tion is availab available in Da e town ofB long Stuart H rom the depos o the deposit. km to the east f the deposit.P le at Batchelor rwin. atchelor along ighway. Darwin it. High voltage Additional high of the deposit otable water is town, and the .
				Transpo rtation	S 9 A s s h V v H d n N w m l a w D ea transport 3km to the no rm includes tockpiles, hau hiploader is aulage trucks ictoria, NewS ia Stuart High ighway and is eposit. Curren ear the point ovember 201 ith the operato agnesite rock easing of the nd other equip hich will allo arwin. is available fro rth of the pro 850m rail sp l roads and a designed for is availablet outh Wales a way. Darwin transected by tly there aren where Batch 7, Korab repor r of Darwin po through Darw land, access to ment. HoA pr w for exportin m Darwin Port ject. Bulk mate ur, 1,500T/H 2,000T/H trav Panamax clas o the Darwin nd Queensland to Adelaide ra Batchelor road o rail loadingf elor road trans ted that it has rt. HoA envisag in Port EastA various port ovides the bas g the magnes ’s East Armw rials handling rail bottom elling gantrys s ships. Roa port and toS via Batchelor ilway line run approximatel acilities either ects the railw signed Heads es exportingo rm Wharf and facilities, and is for the final ium carbonate hich is located facility at Eas dump station hiploader. The d transport by outh Australia road and then s along Stuar y 5km from the at Batchelor o ay line. On8 of Agreemen f 500,000tpa o includes sub use of loaders port agreemen rock through t , , t r t f - , t
				Mineral Resources Cla ssification	T c he mineral res lassified as ind ources estima icated mineral tes that were u resources. sed to underpin this report are
				Marketi (Off-tak ng e or Sale Agre ements)	D o w p evelopmento ff-take agreem ith number artnerships, o f Winchesterd ents being com of parties re ff-take and long epends on on pleted succes garding pote -term sales ag e or more lon sfully. Korab is ntial joint ve reements. g-term sale, o in discussions ntures, equity r
				Mine Pe rmitting	W K b b a inchester dep orab’s wholly e established, e submitted to nd AusMag w osit is located owned subsid an appropriate the Northern ill need to recei on granted mi iary AusMagP Mine Manage Territory Depa ve the authoris neral lease ML ty Ltd. Before ment Plan (MM rtment of Min ation to implem 30587 held by the quarry can P) will need to es and Energy ent this MMP.
				Environ mental studies	E m w d nvironmental agnesite proj ill have a min eveloped asa impact studies ect and the as imal impact. Th magnesite roc have been u sessment show is is primarily k quarry withn ndertaken for s that the ma because the p o processingo the Wincheste gnesite quarry roject would be f the rock othe r r
				20 PR POB TEL( ACN OWSE STREE OX 1958, WES 08) 9474 6166 082 140 252 T, WEST PER T PERTH, WA FAX (08) 932 TH, WA, 6005 , 6872, AUSTR 2 6333 , AUSTRALIA ALIA PAGE 10

				KO KO www RAB RABH .korab.com RE OUSE .au SOU RCE S L IMIT ED	KO KO www RAB RABH .korab.com RE OUSE .au SOU RCE S L IMIT ED	KO KO www RAB RABH .korab.com RE OUSE .au SOU RCE S L IMIT ED	KO KO www RAB RABH .korab.com RE OUSE .au SOU RCE S L IMIT ED
	Issued Shar Last Price Capita Listin BERL D Andrej K Exec Rodn Non-exe Daniel A Non-exe Antho Non-exe P (Rum J Magnes (Rum J P (Rum J Au, Ag, Zn, M (Ashb (P Marble Ba (P Capital es:297Mln :2.8cents l: $8.32Mln g Codes ASX: KOR IN: C6S.BE irectors . Karpinski utive Chairman Director ey H. Skeet cutive Director . Smetana cutive Director ny G. Wills cutive Director rojects Winchester ungle, NT) ium carbonate (MgCO3) Geolsec ungle, NT) hosphate rock (P2O5) Batchelor ungle, NT) Pb, Ni, Cu, Co, Sc, Mn t. Elephant urton, WA) Au, Cu Karratha ilbara, WA) Au, Co, Cu r/Nullagine ilbara, WA) Au, Co, Cu, Li
					t h s v han crushinga ave a verys orters will beu icinity of the to nd screening. mall footprint. tilised were po wn of Batchelo The quarry and Mobile equipm ssible. Therea r, some aband associated in ent, including re several rock oned, and som frastructure wil crushers and quarries in the e in operation. l
				NativeT itle	W l H s p inchester dep and and no na owever, any ignificance tha rotected. osit and them tive title approv sacred sites t are located ineral leasea als would ber and sites of within the pro re located who equired to esta anthropologica ject area wou lly on freehold blish a quarry l or historica ld need to be . l
				Social	W O p a q N p d j l t p O i inchester min ther than con ersonnel direc nd operatingt uarry has a orthern Territ roviding reve irectly benefit obs. Whilst the abour, local bu his would not roject will aim ther than co nvolved in esta e would utilise tractor’s staff, tly employed he mine (fewer potential to ge ory governmen nue stream fo Territorians by re is no legal sinesses and have negative to utilise local ntractor’s staff blishing and op contractorso there wouldb by AusMag Pty than 10). In ad nerate signific t over the life r the governm supporting lo requirement to labour would be impact on the contractors op , there would erating the qua perating on c e relatively sm Ltd involved dition, Winche ant royalties of the project ent, the qua cal businesses utilise localc given prefere viability of th erating on ac be a numbe rry. ampaign basis all number o in establishing ster magnesite income for the . In addition to rry would also and providing ontractors and nce as long as e project. The ampaign basis r of local staf . f . f
				20 PR POB TEL( ACN OWSE STREE OX 1958, WES 08) 9474 6166 082 140 252 T, WEST PER T PERTH, WA FAX (08) 932 TH, WA, 6005 , 6872, AUSTR 2 6333 , AUSTRALIA ALIA			PAGE 11

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

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Issue d Capital

Shares: 297 Mln Last Price: 2.8 cents Capital: $ 8.32 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

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Figure 1 Site locality plan

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

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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 12

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Issue d Capital

Shares: 297 Mln Last Price: 2.8 cents Capital: $ 8.32 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

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

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Figure 4 Winchester Magnesite deposit relative to basic infrastructure and topography

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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 13