KORAB RESOURCES LIMITED — Interim / Quarterly Report 2012

Jul 31, 2012

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

Name of entity

KORAB RESOURCES LIMITED

ABN 17 082 140 252	Quarter ended (“current quarter”)
17 082 140 252	30 June 2012

Consolidated statement of cash flows

		Current quarter	Year to date
Cash flows related to operating activities		$A’000	$A’000
1.1	Receipts from product sales and related debtors
1.2	Payments for
	(a)exploration and evaluation	(482)	(1,147)
	(b)development		(1,153)
	(c) production
	(d)administration	(338)	(1,025)
1.3	Dividends received
1.4	Interest and other items of a similar nature received	7	39
1.5	Interest and other costs of financepaid		(5)
1.6	Income and other taxespaid	(12)	5
1.7	Other
	Net Operating Cash Flows	(825)	(3,286)
	Cash flows related to investing activities
1.8	Payment forpurchases of:
	(a)tenements	(16)	(131)
	(b)equityinvestments
	(c)other fixed assets
1.9	Proceeds from sale of:
	(a) prospects
	(b)equityinvestments
	(c)other fixed assets
1.10	Loans from /(to)other entities	(40)	(164)
1.11	Loans repaid(to)/ byother entities	(128)	(148)
1.12	Other(refund of stampduty paid)		168
	Net investing cash flows	(189)	(275)
1.13	Total operating and investing cash flows (carried forward)
		(1,014)	(3,561)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13	Total operatingand investingcash flows (brought forward)	(1,014)	(3,561)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares,options,etc.	371	2,002
1.15	Proceeds from exercise of options
1.16	Proceeds from borrowings	260	779
1.17	Repayment of borrowings	(33)	(546)
1.18	Dividendspaid
1.19	Other (refund of security)		10
	Net financing cash flows	598	2,243
	Net increase (decrease) in cash held	(416)	(1,318)
1.20	Cash at beginningofquarter/year to date	1,374	2,280
1.21	Exchange rate adjustments to item 1.20		(4)
1.22	Cash at end ofquarter	958	958

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24 1.25	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10 Explanation necessaryfor an understandingof the transactions	Current quarter $A'000
		(130)
		(45)
	1.14 Administration cost for the June Quarter include (in addition to Korab costs) costs of running overseas office of subsidiary, local and overseas audit fees, professional fees incurred by 3 subsidiaries, and wages of staff employed by overseas subsidiary, etc. 1.14 Proceeds from issue of shares are net of costs of share issue. These costs include broker fees, professional and statuary fees associated with March/April issue and deferred broker fees and professional fees relating to prior share issues by subsidiaries, etc. 1.24 Korab has made loans of $45,000 to Polymetallica Minerals Ltd. Polymetallica Minerals Ltd is a related entity of Korab directors because they hold more than 20% of its issued capital.

Non‐cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	‐	‐
	600	260

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	200
	80
	‐
	200
Total	480

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as	Current quarter	Previous quarter
shown in the consolidated statement of cash flows)	$A’000	$A’000
to the related items in the accounts is as follows.
5.1 Cash on hand and at bank	283	443
5.2 Deposits at call	509	769
5.3 Bank overdraft	‐	‐
5.4 Other (provide details)	166	162
Total: cash at end of quarter(item 1.22)	958	1,374

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

6.2 Interests in mining tenements acquired or increased

• See chapter 19 for defined terms.

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Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note3) (cents)	Amount paid up per security (see note3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy‐ backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy‐ backs	101,200,000	101,200,000
	4,822,223	4,822,223
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter			Exercise price	Expiry date
7.11 Debentures (totals only)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

7.12 Unsecured notes (totals only)

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

• 2 This statement does give a true and fair view of the matters disclosed.

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31 July 2012
Sign here: ............................................................ Date: ............................
(Director)
Andrej K. Karpinski
Print name: .........................................................
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Andrej K. Karpinski

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

• See chapter 19 for defined terms.

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