KORAB RESOURCES LIMITED — Interim / Quarterly Report 2021

May 2, 2021

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Issued Capital

Issued Shares: 333 Mln Last Price: 1.2 cents Capitalisation: $4 Mln

Listing Codes

ASX: KOR BERLIN: C6S

KORAB RESOURCES LIMITED

KORAB HOUSE

www.korab.com.au

30 April 2021

QUARTERLY ACTIVITIES REPORT TO 31 MARCH 2021

This is a quarterly activities report for the period from 1 January 2021 to 31 March 2021 by Korab Resources Ltd (“ Korab ”, or “ Company ”) ( ASX: KOR ) and its subsidiaries (“ Korab Group ”).

OPERATIONS – EXPLORATION, EVALUATION, AND DEVELOPMENT

During the quarter Korab Group continued exploration and evaluation of its mineral assets, as well as the progression of the Winchester magnesium carbonate deposit to production.

Directors

Andrej K. Karpinski Executive Chairman Director

Rodney H. Skeet Non-executive Director (Independent)

Anthony G. Wills Non-executive Director (Independent)

For the quarter ended 31 March 2021, Korab recorded a positive operating cashflow of approximately $25,000 on the back of the received cash revenue of approximately $99,000. Korab recorded negative total relevant cash outgoings (i.e. a net cash outflow)[1] of approximately $15,000 after cash payments for capitalised exploration and evaluation expenses of approximately $40,000.

For the nine months ended 31 March 2021, Korab recorded a positive operating cashflow of approximately $211,000, on the back of the received cash revenue of approximately $363,000. For the nine months ended 31 March 2021 Korab recorded positive total relevant cash outgoings (i.e. a net cash inflow) of approximately $64,000 after cash payments for capitalised exploration and evaluation expenses of approximately $147,000.

WINCHESTER MAGNESIUM CARBONATE PROJECT (RUM JUNGLE MINERAL FIELD, NT)

Projects

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

Sundance (Rum Jungle, NT) Au, Sn

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

Bobrikovo (Luhansk, UKRAINE) Au, Ag, Zn

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As reported to the market on 12 September 2018 and in subsequent report on 5 April 2019, Korab Group plans to develop the Winchester project as a quarry with the intention to produce raw magnesium carbonate rock which will then be crushed, screened, and sorted on-site prior to transfer to Darwin Port at East Arm, which is located approximately 90km by road from the project.

The Company intends for a part of the output from the quarry to be sold as an un-processed magnesium carbonate and a part of the output to be sent for processing off-site into magnesium oxide in the form of high-grade and low-grade caustic calcined magnesia (CCM), and dead burned magnesia (DBM). It is planned that this off-site processing would be undertaken by means of tolltreatment in kilns owned by third-parties. The off-site production of CCM and DBM would not require additional capital investment.

DISCUSSIONS REGARDING OFFTAKES FOR RAW MATERIALS, CCM, AND DBM

During and following the end of the quarter, Korab Group continued discussions and negotiations with various parties including trading houses, refractory ceramics producers, other potential buyers of magnesium carbonate rock, CCM, and DBM, as well as kiln operators, and equipment suppliers.

Discussions with interested parties are ongoing but are incomplete and details are confidential. There can be no certainty that any agreement or agreements can be reached or that any transaction will eventuate from these discussions.

Other than the agreement with ZM Ropczyce reported during the March 2019 quarter, no commercial terms have been agreed between the parties. Accordingly, no investment decision should be made

1 For further details and the definition of positive total relevant cash outgoings see section 8.3 of the Appendix 5B – Quarterly Cashflow Report.

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

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Issued Capital

Issued Shares: 333 Mln Last Price: 1.2 cents Capitalisation: $4 Mln

Listing Codes

ASX: KOR BERLIN: C6S

KORAB RESOURCES LIMITED

KORAB HOUSE

www.korab.com.au

on the basis of this information. Korab will advise the market if and when an agreement or agreements regarding offtakes and/or toll-treatment have been reached.

DISCUSSIONS REGARDING POTENTIAL SALE OR JOINT VENTURE

Korab Group has received an unsolicited approach from an Australian proprietary company which expressed an interest Winchester project. The other party advised Korab Group that their interest in the project stems from the high quality of the deposit and its potential to serve as a source of the raw material (magnesium carbonate) for the production of magnesium metal. The parties are currently discussing various potential transactions, including a potential sale of a part, or the whole of the Winchester project.

The discussions with the other party are ongoing but are incomplete and confidential. No commercial terms have been agreed between the parties. There can be no certainty that any agreement or agreements can be reached with the other party or that any transaction will eventuate. Accordingly, no investment decision should be made on the basis of this information.

Directors

PERMITTING

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)

Sundance (Rum Jungle, NT) Au, Sn

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

Bobrikovo (Luhansk, UKRAINE) Au, Ag, Zn

During the earlier quarter, on 15 July 2020, Korab reported that following the amendments to environmental assessment legislation and our discussions with the NT Department of Primary Industry and Resources and the NT Environmental Protection Agency it has been determined that the Notice of Intent to mine (NOI) for the Winchester quarry is no longer required. Korab further advised that as a consequence, Korab Group will be proceeding directly to prepare and submit to the NT Department of Industry, Tourism, and Trade (formerly Department of Primary Industry and Resources) the Mine Management Plan for Winchester quarry (MMP).

The work completed to date on the NOI is being used in the preparation of the MMP and will be useful in the development and the management of the Winchester quarry. Korab Group continues to work on the MMP with the aim of completing it as soon as possible. The process of MMP preparations is complex and in addition to the design of the start-up quarry, requires addressing issues relating to potential future expansion of the project and its related logistics and infrastructure.

In essence, the mine, site infrastructure, and plant layout would be very simple and rudimentary if Winchester project was to be operated as a DSO quarry which does not require any on-site mineral processing (other than crushing, screening, and sorting).

The mine, mining schedule, site infrastructure, and plant layout would be quite different and much more complex if Winchester project was expanded to include a kiln and a smelter and if it was to be operated as a magnesium metal producer (as the other party mentioned above is interested in doing).

The MMP, which we are working on, should allow for this potential expansion to be accomplished with a minimum disruption to the ongoing DSO quarry operation and without the necessity to relocate the mine infrastructure including the pit access ramps, ROM pads, stockpiles, waste dumps, internal roads, plant site, etc.

Consequently, Korab Group is not in a position at this point in time to provide temporal guidance regarding the anticipated timing of the completion and the lodgment of the MMP. Korab Group will advise the market once the MMP for the Winchester quarry has been completed and lodged.

ABOUT WINCHESTER MAGNESIUM CARBONATE PROJECT

The proposed Winchester magnesium carbonate quarry is located 2 km from the regional centre of Batchelor some 70km south of Darwin along Stuart Highway. Please refer to Figure 1 for details of the location of the proposed Winchester magnesium carbonate quarry, and Korab Group’s various mineral tenements in the area.

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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

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Issued Capital

Issued Shares: 333 Mln Last Price: 1.2 cents Capitalisation: $4 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)

Projects

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

Sundance (Rum Jungle, NT) Au, Sn

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

Bobrikovo (Luhansk, UKRAINE) Au, Ag, Zn

KORAB RESOURCES LIMITED KORAB HOUSE

www.korab.com.au

Deposit is at shallow depth and is covered by a thin layer (few meters) of unconsolidated clay and gravel. See the photo in Figure 2 which shows the test mining of the Winchester magnesium carbonate deposit conducted in the middle of the wet season. Winchester magnesium carbonate rock can be quarried using a simple drill and blast, shovel, and truck method. Magnesium carbonate rock (after it has been converted to magnesium oxide) is used in the making of refractory linings necessary for the production of steel, cement, and glass. Other main uses of magnesium oxide are in water purification, nickel and cobalt metallurgy, cattle feed, and production of high-strength lightweight metal alloys.

For the mineral resource statement and the Competent Person statement in respect of the Winchester Project please refer to page 53 of “KORAB RESOURCES LIMITED AND CONTROLLED ENTITIES ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2020”, copy of which is available from the ASX announcement platform and from Korab’s website.

BATCHELOR/GREEN ALLIGATOR POLYMETALLIC PROJECT (RUM JUNGLE MINERAL FIELD, NT)

During the quarter Korab continued exploration and evaluation of Batchelor/Green Alligator project with particular focus on its gold, cobalt, nickel, iron ore, graphite, and base metals potential. No reportable exploration results (as the term is defined in the section 18 of the 2012 JORC code) were generated. Korab has also continued discussions with third parties regarding potential JV’s to explore the project for various commodities.

SUNDANCE GOLD MINE (RUM JUNGLE MINERAL FIELD, NT)

The Company has continued work on re-opening the Sundance gold mine located south of Darwin in the Northern Territory and on treating the rock (which has been stockpiled on the mining leases) at the processing plant owned by a third party. Discussions with third parties are ongoing but are incomplete and details are confidential. There can be no certainty that any agreement or agreements can be reached or that any agreement will eventuate from these discussions. Accordingly, no investment decision should be made on the basis of this information. The Sundance gold mine is located on granted mining leases MLN542 and MLN543 (100% owned by Korab).

GEOLSEC ROCK PHOSPHATE PROJECT (RUM JUNGLE MINERAL FIELD, NT)

During the quarter Korab Group focused on other mineral assets and consequently exploration work at the Geolsec project was limited. An unrelated company (the Miner), is sub-leasing the Geolsec phosphate project from Korab Group (as reported to the market on 25 July 2018). During the quarter Korab continued to receive an income from the Miner in respect of this project ($99,000 was received during the quarter ended 31 March 2021).

Korab Group received from the Miner an expression of interest to purchase the whole of the Geolsec project from Korab Group. The discussions regarding the potential sale of the Geolsec project are incomplete and confidential and there can be no certainty that any agreement or agreements can be reached or that any sale transaction will eventuate. No commercial terms have been agreed between the parties for the sale of the Geolsec project. Accordingly, no investment decision should be made on the basis of this information

BOBRIKOVO GOLD AND SILVER MINE (UKRAINE)

During the quarter, Korab continued discussions with parties interested in acquiring mineral assets located in eastern Ukraine regarding a potential sale, or a joint venture development of the Bobrikovo project. The discussions regarding the Bobrikovo project are incomplete and confidential and there can be no certainty that any agreement or agreements can be reached or that any transaction will eventuate. No commercial terms have been agreed between the parties. Accordingly, no investment decision should be made on the basis of this information.

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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

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Issued Capital

Issued Shares: 333 Mln Last Price: 1.2 cents Capitalisation: $4 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)

KORAB RESOURCES LIMITED

KORAB HOUSE

www.korab.com.au

For the mineral resource statement and the Competent Person statement in respect of the Bobrikovo Project please refer to pages 53 and 54 of “KORAB RESOURCES LIMITED AND CONTROLLED ENTITIES ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2020”, copy of which is available from the ASX announcement platform and from Korab’s website.

MT. ELEPHANT PROJECT (ASHBURTON MINERAL FIELD, WA)

During the quarter, Korab Group continued the exploration and evaluation of the Mt. Elephant project exploration licences E08/2307, E52/2724, E08/2756, and E08/2757, focusing primarily on their gold, iron ore, and base metals potential. No reportable exploration results (as the term is defined in the section 18 of the 2012 JORC code) were generated. Mt. Elephant project consists of four granted exploration licences and three exploration licence applications (for details refer to Appendix A).

As previously advised on 31 July 2020, Korab Group is in discussions with Great Fingall Mining Company NL (GFMC) regarding a potential option for GFMC to acquire the four exploration licences and three exploration licence applications which comprise the Mt. Elephant Project. The discussions regarding the Mt. Elephant project are incomplete and confidential and there can be no certainty that any agreement or agreements can be reached or that any transaction will eventuate. No commercial terms have been agreed between the parties. Accordingly, no investment decision should be made on the basis of this information.

• END –

By Order of the Board

INVESTOR RELATIONS CONTACT:

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

Projects

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

Sundance (Rum Jungle, NT) Au, Sn

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

Bobrikovo (Luhansk, UKRAINE) Au, Ag, Zn

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----- Start of picture text -----

quarry
Sundance gold mine
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Figure 1 Location of Korab Group’s mineral tenements (exploration leases in white and mining leases in red) and Winchester magnesium carbonate project relative to Darwin Port and basic infrastructure

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

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Issued Capital

Issued Shares: 333 Mln Last Price: 1.2 cents Capitalisation: $4 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)

KORAB RESOURCES LIMITED KORAB HOUSE

www.korab.com.au

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Figure 2 Test mining of magnesium carbonate at Winchester (setting of explosive charges)

Projects

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

Sundance (Rum Jungle, NT) Au, Sn

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

Bobrikovo (Luhansk, UKRAINE) Au, Ag, Zn

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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

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KORAB RESOURCES LIMITED KORAB HOUSE

www.korab.com.au

APPENDIX A

Issued Capital

Issued Shares: 333 Mln Last Price: 1.2 cents Capitalisation: $4 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)

Projects

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

Sundance (Rum Jungle, NT) Au, Sn

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

Bobrikovo (Luhansk, UKRAINE) Au, Ag, Zn

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INTERESTS IN MINING TENEMENTS AS OF THE END OF THE REPORTING PERIOD

Project/Tenements	Location	Held at end of quarter	Acquired during quarter	Disposed during quarter
Batchelor/Green Alligator Project EL29550 MLN512 MLN513 MLN514 MLN515 MLN542 MLN543 EL31341	Northern Territory, Australia	100% 100% 100% 100% 100% 100% 100% 100%
Winchester Project ML30587	Northern Territory, Australia	100%
Geolsec Project ML27362	Northern Territory, Australia	100%
Bobrikovo Project2 BKB169 4420381100646545 1589	Ukraine Luhansk Region	100% 100% 100%
Mt. Elephant Project: E08/2307 E52/2724 E08/2756 E08/2757 E52/3872 E08/3264 E08/3302	Western Australia, Australia	100% 100% 100% 100% 100% 100% 100%
Farm-in agreements/Tenements	Location	Held at end of **quarter **	Acquired during **quarter **	Disposed during **quarter **
none
Farm-out agreements/Tenements	Location	Held at end of quarter	Acquired during quarter	Disposed during quarter
none

INVESTOR RELATIONS CONTACT:

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

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.

2 Bobrikovo Project is located in eastern Ukraine in the Donbas region. The expenditure on this project has been written-off in full in the 2014 Annual Report at the consolidation level.

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

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KORAB RESOURCES LIMITED

KORAB HOUSE

www.korab.com.au

DISCLAIMER AND CAUTIONARY STATEMENT

Issued Capital

Issued Shares: 333 Mln Last Price: 1.2 cents Capitalisation: $4 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)

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 forwardlooking 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.

Projects

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

Sundance (Rum Jungle, NT) Au, Sn

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

Bobrikovo (Luhansk, UKRAINE) Au, Ag, Zn

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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

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