KORAB RESOURCES LIMITED — Capital/Financing Update 2020

Jan 30, 2020

==> picture [92 x 86] intentionally omitted <==

KORAB RESOURCES LIMITED

KORAB HOUSE

www.korab.com.au

31 January 2020

Issued Capital

Issued Shares: 322 Mln Last Price: 1.0 cents Capitalisation: $3 Mln

Listing Codes

ASX: KOR BERLIN: C6S

Directors

Andrej K. Karpinski Executive Chairman Director

Rodney H. Skeet Non-executive Director (Independent)

Anthony G. Wills Non-executive Director (Independent)

PLACEMENT

Korab Resources Ltd (“ Korab ”, or “ Company ”) ( ASX: KOR ) advises that it has resolved to raise funds by way of a placement of up to 10,000,000 shares at 1.1 cents each to un-related exempt investors.

This placement is to be completed within existing 15% share placement capacity and no shareholder approval is required.

The issue price of 1.1 cents per share is at a 10% premium to the last traded price of 1.0 cent per share, and at a 10% premium to the 5 day volume weighted average traded price of 1.0 cents. The share issue will constitute approximately 3.1% dilution of issued capital held by Korab’s shareholders immediately prior to this placement.

The Company will use a placement of shares instead of a pro-rata share issue due to the time constraints, and the relatively small size of the issue. Funds will be used for working capital, progression of Winchester project permitting, and to reduce liabilities.

• END-

This announcement has been made by the order of the Board of Directors of the Company.

FOR FURTHER INFORMATION CONTACT:

Andrej K. Karpinski - Executive Chairman Australia: (08) 9474 6166 International: +61 8 9474 6166

Projects

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

Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, Ni, Cu, Co, Sc, Mn

Geolsec (Rum Jungle, NT) Phosphate rock (P2O5) (Sub-leased to third party)

Mt. Elephant (Ashburton, WA) Au, Cu (Optioned for sale)

Bobrikovo (Luhansk, UKRAINE) Au, Ag, Zn

ABOUT KORAB RESOURCES

Korab Resources Ltd is an international mining and exploration company with operations in Australia and Europe. Korab’s projects include Winchester magnesium carbonate deposit at Batchelor in the Northern Territory of Australia, Geolsec phosphate rock deposit also at Batchelor, and other gold, silver, copper, cobalt, nickel, and polymetallic projects in Australia and overseas. More information about Korab’s projects can be sourced from Korab’s website at www.korab.com.au. Korab’s shares are traded on Australian Securities Exchange (ASX) and on the Berlin Stock Exchange (Berliner Börse) through Equiduct electronic trading platform.

DISCLAIMER AND CAUTIONARY STATEMENT

Forward-looking statements are statements that are not historical facts. Words such as “expect(s)”, “expected”, “feel(s)”, “believe(s)”, “will”, “may”, “anticipate(s)”, “should”, “envisage(s)” and similar expressions are intended to identify such forward-looking information. This information includes, but is not limited to statements regarding future exploration results, resources, or reserves, and production. Anyone reading this report is cautioned not to place undue reliance on these forwardlooking statements. All of such statements are subject to risks and uncertainties (many of which are difficult to predict and which generally are beyond the control of the Company) that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-

==> picture [64 x 65] intentionally omitted <==

20 PROWSE STREET, WEST PERTH, WA, 6005, AUSTRALIA PO BOX 1958, WEST PERTH, WA, 6872, AUSTRALIA TEL (08) 9474 6166 FAX (08) 9322 6333 ACN 082 140 252

PAGE 1

==> picture [92 x 86] intentionally omitted <==

Issued Capital

Issued Shares: 322 Mln Last Price: 1.0 cents Capitalisation: $3 Mln

Listing Codes

ASX: KOR BERLIN: C6S

KORAB RESOURCES LIMITED KORAB HOUSE

www.korab.com.au

looking information and statements. These risks and uncertainties include, but are not limited to: those relating to the interpretation of exploration results (including drill results), the geology, grade and continuity of mineral deposits and conclusions of economic evaluations; risks relating to possible variations in reserves, grade, mining dilution, ore loss, and recovery rates; risks relating to changes in project financial and technical parameters; risks relating to the potential for delays in exploration programs, project evaluation/review, completion of feasibility studies and project development; risks related to commodity prices and foreign exchange rate fluctuations; risks related to failure to secure adequate financing on a timely basis and on acceptable terms; risks related to delays in obtaining governmental, or other permits and approvals; risks related to security of tenure; and other risks and uncertainties related to the Company’s prospects, properties and business strategy. Any forwardlooking information contained in this report is provided as of the date of this report. Except as required under applicable listing rules and securities laws, the Company does not intend, and does not assume any obligation, to update this forward-looking information.

Directors

Andrej K. Karpinski Executive Chairman Director

Rodney H. Skeet Non-executive Director (Independent) Anthony G. Wills Non-executive Director (Independent)

Projects

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

Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, Ni, Cu, Co, Sc, Mn

Geolsec (Rum Jungle, NT) Phosphate rock (P2O5) (Sub-leased to third party)

Mt. Elephant (Ashburton, WA) Au, Cu (Optioned for sale)

Bobrikovo (Luhansk, UKRAINE) Au, Ag, Zn

==> picture [64 x 65] intentionally omitted <==

20 PROWSE STREET, WEST PERTH, WA, 6005, AUSTRALIA PO BOX 1958, WEST PERTH, WA, 6872, AUSTRALIA TEL (08) 9474 6166 FAX (08) 9322 6333 ACN 082 140 252

PAGE 2