KORAB RESOURCES LIMITED — Capital/Financing Update 2018

Feb 15, 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

16 Fe b ruary 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

WI N CHE S TER P FS U P DATE

Korab Resources L t d (“ Korab ”, o r “ Company ”) ( ASX: KOR ) and its su b sidiaries (“ Korab Group ” ) would like to advis e that the up d ate of the W inchester pr e -feasibility s t udy (PFS) r e ported on 1 7 Nove m ber 2017 as commenced has been e x tended by a p proximately o ne week to accommodat e chang e s to some e xternal PFS parameters w hich occurre d in last few days. We fe e l it would b e prude n t to recalcula t e the PFS n u mbers before they are rele a sed to the m a rket.

ABOU T MAGNESI U M CARBON A TE

Marke t for magnesium carbonat e has been g rowing at a s trong histori c al trend rat e over sever a l decad e s with the trend pointing to yet higher consumption over comin g years. The main uses for magn e site are in p r oduction of v arious types of magnesiu m oxides. M a gnesium car b onate is als o used t o produce m a gnesium me t al which is t h e lightest of all metals, b e ing about tw o -thirds lighter than a luminium but stronger th e n steel. Ma g nesium is n o n-toxic, non - magnetic, h a s high-impact streng t h, and is resi s tant to denti n g.

The main sectors w here magne s ium oxide is used include: refractory b r icks which are used to lin e steel a nd iron furn a ces; produc t ion of flame retardants; production of fire resistant and moistur e resistant building materials like m ag-wall, Mg O board and mag-cement ; production o f magnesiu m alloys used exte n sively in c a rs, airplane s , tanks, A P C-s and o ther defenc e equipment; hydro m etallurgy ( primarily for nickel and cobalt production ); water purification and soil treatment and fe e dstock. Exp e rts expect th a t the market for magnesium carbonate w ill continue t o expand du e to the g rowth in all t h ese sectors.

Howe v er the poten t ial game ch a nger is the r e cent develo p ment of ma g nesium-ion batteries whic h have 8 to 12 times greater capa c ity than lithi u m-ion batteri e s and can b e charged in as little as 3 6 minut e s. Magnesiu m -ion battery' s charge/dis c harge efficie n cy is 5 time s higher tha n a lithium-io n batter y . Another ad v antage of m a gnesium-ion batteries is t h eir ability to p erform at te m peratures a s low as -30°C and a s high as +55°C whereas lithium-ion bat t eries cease t o 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.

Korab’s Executive C hairman Mr . Andrej Kar p inski has been invited to speak at th e Lithium an d Batter y Metals Conf e rence 2017 t o be held at C rown Resort in Perth on 2 1 -22 March 2 0 18. Mr. Karpinski’s pres e ntation will address sever a l themes incl u ding:

1. New generation ma g nesium-ion b atteries (whi c h are superi o r to lithium-i o n batteries i n terms o f performan c e, storage capacity, power density, and d urability);

2. Devel o pment progr e ss of the Kor a b’s Winches t er magnesiu m project; and 3. Cobalt / nickel explor a tion at Kora b ’s Batchelor p roject in the N orthern Territory.

The primary focus w ill be on mag n esium-ion b a tteries.

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 deposit at Batch e lor in the Northern Territor y of Australia as well as a g old and silver

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

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

deposit at Bobriko v o in easter n Ukraine. T h e Company also explor e s for gold and copper at Ashbu r ton Downs/ M t. Elephant i n Western Au s tralia, and f o r gold, copp e r, lithium, tin, and tantalu m at Karratha, and M a rble Bar/Nullagine in We s tern Australia. Korab als o explores fo r gold, cobalt, silver, lead, zinc, c o pper, nickel, lithium, and tin at Batch e lor and Gre e n Alligator in the Norther n Territory. More inf o rmation ab o ut Korab’s p rojects can be sourced from Korab ’ s website at www. k orab.com.au. Korab’s shar e s are traded on Australia n Securities E xchange (ASX) and on th e Berlin S tock Exchange (Berliner B örse) throug h Equiduct electronic tradin g platform.

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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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