KORAB RESOURCES LIMITED — Director's Dealing 2017

May 17, 2017

==> picture [80 x 73] intentionally omitted <==

----- Start of picture text ----- ®----- End of picture text -----

Perth, 18 May 2017

ASX Listing Compliance Level 40, Central Park 152-158 St. George’s Terrace Perth WA 6000

Dear Madam/Sir,

RE: APPENDIX 3Y

Korab Resources Limited (“Korab” or “the Company”) (ASX: KOR) refers to your letter dated 18 May 2017 regarding the two Appendix 3Y forms lodged with ASX on 17 May 2017.

In response to your query, please find the following:

1. The two Appendix 3Y forms lodged on 17 May, 2017 referred to shares purchased by two of the Korab’s directors as part of the non-renounceable pro rata rights issue offer announced to ASX on 7 April, 2017 (the Offer). On 11 May, 2017 Korab has inadvertently lodged a file containing only a single Appendix 3Y covering only one of three Korab directors who participated in the Offer. The intent was to lodge combined file covering three Appendix 3Y forms covering three Korab directors who participated in the Offer. Korab realised on 17 May, 2017, that a wrong file containing only one Appendix 3Y was uploaded to ASX announcement platform on 11 May 2017 and has remedied this by uploading a re-merged file containing two outstanding Appendix 3Y forms for the remaining two Korab directors who participated in the Offer. This was an inadvertent error. Notwithstanding the need for the Company to lodge Appendix 3Y by 11 May, 2017, Korab advised the ASX on 4 May, 2017 that all Korab directors (or their associates) who were entitled to participate in the Offer applied in full for their entitlements.

2. Under the arrangements which are in place all directors must disclose details of changes in securities of the Company they hold (directly or indirectly) to the company secretary as soon as reasonably possible after the date of the contract to buy and sell the securities ("Contract Date") but in any event:

   • a. no later than 3 business days after the Contract Date; or

   • b. if director begins to have or ceases to have a substantial shareholding or there is a change in director’s substantial holding, the business day after the Contract Date.

3. The current arrangements are adequate and are being enforced. There is no need for the entity to take additional steps regarding its ability to comply with listing rules 3.19A and 3.19B. The Company was aware of the directors having accepted their entitlements under the Offer. The late lodgement of the two Appendix 3Y forms was caused by an inadvertent error with the file being uploaded to the ASX announcement platform.

Sincerely yours

Andrej K Karpinski, FAICD, FFin KORAB RESOURCES LIMITED EXECUTIVE CHAIRMAN

KORAB RESOURCES LIMITED

KORAB HOUSE

20 PROWSE STREET, WEST PERTH, 6005, WESTERN AUSTRALIA PO BOX 1958, WEST PERTH, WA, 6872, AUSTRALIA, Tel (08) 9474 6166 Fax (08) 9322 6333

www.korabresources.com.au

ACN 082 140 252

18 May 2017

Mr Andrej Karpinski Company Secretary Korab Resources Limited 20 Prowse Street WEST PERTH WA 6005

By email:

Dear Mr Karpinski

Korab Resources Limited (the “Entity”)

We refer to the following:

1. The Entity’s announcement lodged with ASX Ltd (“ASX”) on 17 May 2017 regarding change of director’s interest notices for Mr Rodney H J Skeet and Mr Daniel Smetana (“Appendices 3Y”).

2. Listing rule 3.19A which requires an entity to tell ASX the following:

   • 3.19A.1 The notifiable interests of a director of the entity (or in the case of a trust, a director of the responsible entity of the trust) at the following times:

     • On the date that the entity is admitted to the official list.

     • On the date that a director is appointed.

The entity must complete an Appendix 3X and give it to ASX no more than 5 business days after the entity’s admission or a director’s appointment.

• 3.19A.2 A change to a notifiable interest of a director of the entity (or in the case of a trust, a director of the responsible entity of the trust) including whether the change occurred during a closed period where prior written clearance was required and, if so, whether prior written clearance was provided. The entity must complete Appendix 3Y and give it to ASX no more than 5 business days after the change occurs.

• 3.19A.3 The notifiable interests of a director of the entity (or in the case of a trust, a director of the responsible entity of the trust) at the date that the director ceases to be a director. The entity must complete an Appendix 3Z and give it to ASX no more than 5 business days after the director ceases to be a director.

ASX Compliance Pty Ltd ABN 26 087 780 489

Level 40, Central Park www.asx.com.au 152-158 St Georges Tce Customer service 13 12 79 Perth WA 6000

1. Listing rule 3.19B which states as follows.

An entity must make such arrangements as are necessary with a director of the entity (or in the case of a trust, a director of the responsible entity of the trust) to ensure that the director discloses to the entity all the information required by the entity to give ASX completed Appendices 3X, 3Y and 3Z within the time period allowed by listing rule 3.19.A. The entity must enforce the arrangements with the director.

As the Appendices 3Y indicate a change in Mr Rodney H J Skeet’s and Mr Daniel Smetana’s notifiable interest occurred on 4 May 2017 the Appendices 3Y should have been lodged with the ASX by 11 May 2017. As the Appendices 3Y were lodged on 17 May 2017 it appears that the Entity may be in breach of listing rules 3.19A and/or 3.19B.

Please note that ASX is required to record details of breaches of the listing rules by listed companies for its reporting requirements. ASX reminds the Entity of its contract with ASX to comply with the listing rules. In the circumstances ASX considers that it is appropriate that the Entity make necessary arrangements to ensure there is not a reoccurrence of a breach of the listing rules.

Having regard to listing rules 3.19A and 3.19B and Guidance Note 22: Director Disclosure of Interests and Transactions in Securities - Obligations of Listed Entities, under listing rule 18.7 we ask that you answer each of the following questions.

1. Please explain why the Appendices were lodged late.

2. What arrangements does the Entity have in place under listing rule 3.19B with its directors to ensure that it is able to meet its disclosure obligations under listing rule 3.19A?

• 3 If the current arrangements are inadequate or not being enforced, what additional steps does the Entity intend to take to ensure compliance with listing rule 3.19B?

Your response should be sent to me by e-mail at dawn.james@asx.com.au. It should not be sent to the ASX Market Announcements Office.

A response is requested as soon as possible and, in any event, not later than 3.00 p.m. AWST on Monday 22 May 2017.

Under listing rule 18.7A, a copy of this letter and your response will be released to the market, so your response should be in a form suitable for release and must separately address each of the questions asked. If you have any queries or concerns about any of the above, please contact me immediately.

Yours sincerely,

[sent electronically without signature]

Dawn James Adviser, Listings Compliance (Perth)

2