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KORAB RESOURCES LIMITED Management Reports 2017

Oct 3, 2017

65198_rns_2017-10-03_0917cb1b-ca84-414f-a7e1-118f6fa25ea7.pdf

Management Reports

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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

4 October 2017

HOST ROCKS H IT IN A LL H O LES D RILL E D FO R COBALT A T BAT C HEL O R

  • Drilling completed at 2 out of 24 Co/Cu/Au/Ag/Pb prospects (P16221 and P225)

  • Winder than expected host rocks intervals intercepted in drillingSignificant amount of new data obtained from visual observations of drill samples needs immediate chemical verification

  • Samples already shipped to lab for chemical analysis

  • Korab may undertake drill-out of Prospects 16221 and/or 225 prior to moving to other 22 prospects

Korab Resources Ltd (“ Korab ”, or “ Company) ( ASX: KOR ) is very plea s ed to provid e this progres s report regarding th e cobalt, gold, and copper exploration drilling program at the Batchelor polym e tallic project.

Korab has finished drilling at P r ospect 225 w ith addition a l 4 reverse circulation ( R C) drill hole s compl e ted. Similarl y to 6 RC holes recently co m pleted at pr o spect 16221, all holes drill e d at Prospect 225 h a ve intercept e d rocks which host cob a lt/gold mineralisation in h istorical drill holes. Visu a l inspec t ion of drill c h ips also co n firmed prese n ce of pyrite and quartz w hich were a s sociated wit h cobalt / gold minerali s ation in histo r ical holes drilled within the area.

Korab has so far drilled 10 hol e s for a total of 1,020 m to test 2 out o f the 24 co b alt prospect s (Co/C u /Au) at Bach e lor Project ( s ee Figure 4). The interval s over which h ost rocks w e re intercepte d were w ider than anticipated with v isual inspecti o n confirming presence of m inerals of in t erest.

Issue d Capital

Shares: 288 mln Options: 4 mln Last Price: 2.1 cents Market Cap : $6.05 Mln ASX: KOR BERLIN: C6S.BE

P rojects

Winchester (NT) Magne s ium carbonate (MgCO3) Geolsec (NT) P hosphate rock (P2O5)

Batchelor (NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (WA) Au, Cu Bobrikovo (UKR) Au, Ag, Pb

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In add i tion to obtain i ng sub-surfa c e drill sampl e s, Korab has also collecte d surface roc k chip sample s from quartz outcro p s which may be associat e d with the mineralisation in this area, a nd which ar e locate d near the dril l ing locations (see Figure 1 ) .

Following the loggi n g and modelling of the dr i lled intervals it has beco m e clear that t his significant amou n t of new geological information needs t o be verified by geochemi c al analysis p rior to further work. In view of the above, and g iven the quality of the dat a obtained fro m the recentl y drilled holes, Korab has decided to send the d rill samples and surface r ock chip sa m ples for che m ical analysi s prior t o continuing t he drilling pr o gram. Initially, 6 meter c o mposite sa m ples will be a nalysed, an d followi n g the receipt of composit e sample ass a y results, sin g le meter sa m ples for inter v als of interest will be assayed. Su b ject to the a s say results, Korab may e x tend the drill i ng program a t the recentl y drilled Prospects 16 2 21 and 225, and defer dri l l testing of th e other 22 pr o spects until the drill-outs of Prosp e cts 16221 and 225 are co m pleted. Drill c hips and sur f ace samples have already been shippe d to the a ssay lab, an d composite a ssay results a re expected to be availabl e shortly. Sig n ificant result s will be reported to t h e market wh e n available.

Previo u sly reported mineralisati o n grades at the Co/Cu/Au prospects ( 10 February 2017, and 2 Septe m ber 2017) r a nge up to 0.495% cobalt and 5.8g/t gold in rock c h ips, up to 0.146% cobalt, 1.69% copper and 3.45 g/t gold in prior RC d rilling, and u p to 0.27% cobalt in shallo w RAB drillin g (see Figure 7). Spa t ial analysis o f the mineralisation confir m s wide-spre a d presence o f cobalt, gold, and c o pper in rocks and soils, wi t h multiple R C holes assa y ing in the ra n ge of 0.1% cobalt to 0.5% cobalt, and 1g/t gold to 5.8 g/t gold. For details of the anal y tical results p lease see A p pendix A.

As pr e viously note d , cobalt/gold/copper pros p ects at Bat c helor Projec t extend ove r large areas. These prospects were develop e d on the ba s is of geoch e mical and g eophysical data sets fro m histori c al RC drillin g , RAB drilling, diamond c ore drilling, g ridded soil s urveys, rock chip sample s

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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

collect e d from outc r ops, grab sa m ples, electr o magnetic su r veys, gravity surveys, ma g netic survey s and in d uced polariz a tion surveys.

ZINC, LEAD AND S ILVER

Furthermore, Korab has previou s ly reported historical resul t s of zinc, le a d, and silver exploration at Batch e lor Project. M ineralisation grades in R C and diamon d core drillin g ranged up t o 20.6% zinc, 13.50% lead, and 210 g/t silver . These zinc, lead, and sil v er prospects will be drill-t e sted in futur e drilling programs. F o r details of the results please see Appe n dix B.

Issue d Capital

Shares: 288 mln Options: 4 mln Last Price: 2.1 cents Market Cap : $6.05 Mln

ASX: KOR BERLIN: C6S.BE

P rojects

Winchester (NT) Magne s ium carbonate (MgCO3) Geolsec (NT) P hosphate rock (P2O5)

Batchelor (NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (WA) Au, Cu Bobrikovo (UKR) Au, Ag, Pb

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Figure 1 Quartz outcrop at Prospect 16221

ABOU T BATCHEL O R PROJECT

Batch e lor Project c o vers an area of 240 km2 a nd is located approximate l y 70 km south of Darwin i n the R u m Jungle Mi n eral Field. A c cess to the P roject is via Stuart highw a y, approxim a tely one hour drive f r om Darwin (see Figure 3) .

Rum Jungle Mineral Field repres e nts a region of extremely h igh mineral p rospectivity a nd contains a variet y of commodities including Pb, Zn, Ag, Ni, Co, Cu, U, Au, magnesite and phosphate . Th e histori c Rum Jungl e Uranium F ield produce d some 3,530 t of U3O 8 from 1954- 1 971 and th e Wood c utters deposit produced 4.65 Mt ore at 12.28% Zn, 5.65% Pb and 87 g/t Ag b etween 1985 - 1999. O ther deposi t s include the Browns poly m etallic depo s it of Compa s s Resources with 70 Mt @ 2.59% Pb, 0.81% Cu, 0.12% Co, 0.11% Ni and 10g/t Ag ju s t to the north west of Batc h elor.

Rum Jungle Mineral Field lies on the western side of the Pine Creek Inli e r where Pal a eoproterozoi c low-gr a de greensc h ist facies m etasediment s are unconf o rmably dra p ed around two Archaea n graniti c basement c o mplexes (th e Rum Jungle Complex to t h e north and t he Waterhou s e Complex t o the so u th). The Pal a eoproterozoic sequence i s locally unconformably ov e rlain by he m atite quartzit e brecci a and by late Palaeoproter o zoic sandsto n e and congl o merate (see geology and s tructural dat a in Fig u re 5). The tw o basement c o mplexes tog e ther with the Proterozoic r o cks are displaced dextrall y by 4 t o 5 km alo n g the regio n al Giant's Reef Fault, cr e ating a we d ge-shaped e mbayment of sedim e ntary rocks, juxtaposed a gainst the R u m Jungle C o mplex in th e south-east e rn block. Th e base m ent complex e s are unconf o rmably overl a in by the Na m oona Group, which consi s ts of fluvial t o

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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

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Issue d Capital

Shares: 288 mln Options: 4 mln Last Price: 2.1 cents Market Cap : $6.05 Mln

ASX: KOR BERLIN: C6S.BE

P rojects

Winchester (NT) Magne s ium carbonate (MgCO3) Geolsec (NT) P hosphate rock (P2O5)

Batchelor (NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (WA) Au, Cu Bobrikovo (UKR) Au, Ag, Pb

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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

shallo w marine clastic sediments of the Beest o ns Formatio n followed by shallow wat e r stromatoliti c carbo n ates of the C e lia Dolomite. The contact b etween the N amoona Gr o up and the o v erlying Mount Partridge Group is unconformable and indicates a period of minor upl i ft and erosion. Pebbles of Beest o ns Formation sandstone a r e found in BI F conglomerate near the b a se of the Crater Formation. Crater Formation arkose, congl o merate, coarse sandstone, and mino r shale grad e upward int o strom a tolitic carbonate of the C oomalie Dol o mite. This u nit has a g r adational co n tact with th e overlying Whites Formation, w hich comprises carbon a ceous siltst o ne and m u dstone, an d interb e dded dololutite in place s . Thinly bedded, colour- b anded siltst o ne and mu d stone of th e Wildm a n Siltstone c ontains mas s ive orthoqua r tzite beds of t he Acacia G a p Sandston e Member an d thin b a saltic volcanics of the Mo u nt Deane V o lcanic Member. The Whit e s Formation and overlyin g units o f the Mount P artridge Gr o up are missi n g from the sequence to t h e west of th e Waterhous e Complex and this suggests t h at baseme n t topograph y was still e xerting an influence o n sedim e ntation at this time. Another period of m inor uplift preceded depo s ition of the S outh Alligator Group and is mark e d by a possible palaeo-regolith brecci a , the Ella Cr e ek Member o f the Koolpi n Forma t ion. The Koolpin Formatio n , Gerowie T u ff, and Moun t Bonnie For m ation repres e nt a transitio n from s hallow wate r cherty and tuffaceous s e diments to deeper wate r siltstone, m udstone, an d sands t one. They g r ade into tur b iditic greywa c ke of the B u rrell Creek F ormation. Chert-dominate d South Alligator Gro u p rocks are a bsent to the west of the b asement co m plexes and a lateral facie s chang e is interpret e d that produ c ed fine-grain e d non-outcr o pping quartz - sericite and q uartz-chlorit e schist s stratigraphi c ally below c o arser Burrell Creek Form a tion rocks. D olerite and g abbro sills of varyin g thicknesses (Zamu Dole r ite) intruded the sediment a ry successi o n prior to deformation an d meta m orphism. Aft e r deposition of the Burre l l Creek For m ation, defor m ation, meta m orphism an d granit e intrusion oc c urred over a p rotracted pe r iod between 1 880 Ma and 1760 Ma. Uplift and erosio n prece d ed the dep o sition of flu v ial platform cover sandstone, represented by the Depot Cree k Sands t one in the R u m Jungle ar e a. The base of the Depot Creek Sands t one is mark e d by siliceou s brecci a with a fine haematitic ma t rix that is pre f erentially developed over t h e Coomalie D olomite. Thi s is her e termed hae m atite quartzi t e breccia (H Q B). Differing modes of ori g in have bee n proposed for the H Q B, either as an in situ w e athering pro d uct, a talus s lope deposit, or a hydrothermal/tectoni c brecci a . The Depot Creek Sands t one is correl a ted with the upper part of the Katherin e River Grou p (Ahmad 2002) and this gives a d e positional ag e of 1720-1700 Ma.

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 dep o sit at Batch e lor in the Nor t hern Territor y of Australia, as well as a g old and silver deposit at Bobrikov o in eastern U kraine. The C ompany also explores for c obalt, gold, n ickel, copper, zinc, l e ad and silver, as well as s p ecialty mine r als at Batchelor and at Gr e en Alligator i n the Norther n Territory and for g o ld and cop p er at Mt. El e phant/Ashbu r ton Downs i n Western Australia. Mor e inform a tion about K orab’s proje c ts can be sourced from Korab’s web s ite at www. k orab.com.au. Korab’s shares ar e traded on A ustralian S e curities Exc h ange (ASX) and on the Berlin Stoc k Excha n ge (Berliner B örse) through Equiduct el e ctronic tradi n g platform.

COMPETENT PER S ON STATE M ENT

The information in t his report th a t relates to e xploration re s ults reporte d in this repo r t is based o n inform a tion compile d by the Com p any and revi e wed by Malcolm Castle, a competent p e rson who is a Memb e r of the Au s tralasian Ins t itute of Mining and Metallurgy (“AusI M M”). Malcol m Castle is a consul t ant geologis t employed b y Agricola M ining Consultants Pty Lt d . Mr Castle has sufficient experi e nce that is r e levant to the style of mine r alisation and type of depo s its under con s ideration an d to the activity being undertaken t o qualify as a Competent P erson as de f ined in the 2012 edition of

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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

the “A u stralasian C o de for Repo r ting of Explo r ation Result s , Mineral Re s ources and O re Reserves (“JOR C Code”). Malcolm Castle c onsents to t h e inclusion i n this report of the matters based on thi s inform a tion in the fo r m and conte x t in which it a ppears.

DISC L AIMER

Forwa r d-looking statements are s tatements that are not historical facts. W ords such a s “expect(s)”, “expe c ted”, “feel(s) , “believe(s)”, “will”, “may”, “anticipate ( s)”, “should” , “envisage(s ) ” and similar expre s sions are int e nded to iden t ify such forward-looking information. T h is informatio n includes, but is not limited to s tatements r e garding futu r e exploratio n results, re s ources, or r eserves, an d produ c tion. Anyone reading this report is cau t ioned not to place undue reliance on these forward - lookin g statements. All of such s t atements are subject to ri s ks and unce rt ainties (man y of which ar e difficul t to predict and which ge n erally are b e yond the co n trol of the C ompany) that could caus e actual results to dif f er materially from those e xpressed in, or implied or projected b y , the forward - lookin g information and stateme n ts. These ri s ks and unc e rtainties incl u de, but are not limited to: those relating to th e interpretati o n of exploration results (including drill r esults), the geology, grad e and c o ntinuity of mi n eral deposit s and conclusions of econo m ic evaluatio n s; risks relating to possibl e variati o ns in reserv e s, grade, min i ng dilution, o r e loss, and r e covery rates; risks relating to changes i n projec t financial an d technical p a rameters; ri s ks relating t o the potenti a l for delays in exploratio n programs, project e v aluation/revi e w, completi o n of feasibilit y studies and project development; risk s relate d to commodity prices and f oreign exch a nge rate fluctuations; risks related to failure to secur e adequ a te financing on a timely b asis and on acceptable t e rms; risks re l ated to dela y s in obtainin g gover n mental, or ot h er permits a n d approvals; risks related to security of tenure; and o ther risks an d uncert a inties relate d to the Com p any’s prosp e cts, properti e s and busin e ss strategy. Any forward - lookin g information contained in this report is provided a s of the dat e of this rep o rt. Except a s requir e d under applicable listing r ules and se c urities laws, t he Company does not int e nd, and doe s not as s ume any obligation, to up d ate this forw a rd-looking inf o rmation.

Issue d Capital

Shares: 288 mln Options: 4 mln Last Price: 2.1 cents Market Cap : $6.05 Mln

ASX: KOR BERLIN: C6S.BE

P rojects

Winchester (NT) Magne s ium carbonate (MgCO3) Geolsec (NT) P hosphate rock (P2O5)

Batchelor (NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (WA) Au, Cu Bobrikovo (UKR) Au, Ag, Pb

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Figure 2 Batchelor Project relative to Darwin

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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

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Figure 3 Batchelor Project on aerial photo

Issue d Capital

Shares: 288 mln Options: 4 mln Last Price: 2.1 cents Market Cap : $6.05 Mln ASX: KOR BERLIN: C6S.BE

P rojects Winchester (NT) Magne s ium carbonate (MgCO3) Geolsec (NT) P hosphate rock (P2O5)

Batchelor (NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (WA) Au, Cu Bobrikovo (UKR) Au, Ag, Pb

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Figure 4 Cobalt/gold/copper targets

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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

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Figure 5 Batchelor Project on geology and structural map

Issue d Capital

Shares: 288 mln Options: 4 mln Last Price: 2.1 cents Market Cap : $6.05 Mln

ASX: KOR BERLIN: C6S.BE

P rojects

Winchester (NT) Magne s ium carbonate (MgCO3) Geolsec (NT) P hosphate rock (P2O5)

Batchelor (NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (WA) Au, Cu Bobrikovo (UKR) Au, Ag, Pb

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Figure 6 Batchelor Project on local gravity map

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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

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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

APPENDIX A

Cobalt, Copper and Gold at Batchelor Project

On 1 0 February 2 0 17 Korab reported result s from the r e view of hist o rical drilling and samplin g enco m passing geo c hemical assessment of 78 4 RAB drillholes, 20 RC dr i llholes, 2,95 0 soil samples, and 6 8 6 rock chip s a mples.

Excer p ts from the r e port are sho w n below for r e ference. Full report can b e accessed at:

http:// w ww.asx.com.au/asx/statist i cs/displayAn n ouncement. d o?display=p d f&idsId=018 2 7144

There has been no material cha n ge to the ex p loration results since they were originally reported o n 10 Fe b ruary 2017. Highli g hts (above 7 0 0ppm Co) f r om Reverse Circulation d r illing include following mu l tiple zones of cobalt, copper and g old (where a v ailable) mineralisation:

HOLE
_ID
FROM_M TO_M CO_PPM CU_
PPM
AU_PPM
BRC2 41 42 725 120 n/a
BRC2 43 44 1,090 152 n/a
BRC2 44 45 895 146 n/a
BRC5 46 47 880 800 3.45
BRC5 56 57 1,460 10,000 2.29
BRC5 57 58 1,300 12,100 1.31
BRC5 58 59 1,040 16,900 1.36
BRC5 65 66 765 9,420 1.69
BRC6 103 104 795 250 1.64

Issue d Capital

Shares: 288 mln Options: 4 mln Last Price: 2.1 cents Market Cap : $6.05 Mln ASX: KOR BERLIN: C6S.BE

Cobalt mineralisation appears to be pervasiv e , extending over multiple z ones of significant surfici a l extent, covering in a ggregate an a rea of appro x imately 13.9 mln m[2] . The largest single mineralisatio n zone c overs 10.3 m ln m[2] . In the northern zo n es cobalt ap p ears to be a ssociated wi t h copper an d gold, i n the southe r n and centr a l zones it appears to be a ssociated wi t h copper an d nickel. Hig h grade cobalt miner a lisation is l o cated either on top of, or near inters e ctions of deep faults an d crosscutting faults and fractures (see Figure 7 and Figure 8). All of the el e vated cobalt drill intercept s are associated with surface geo c hemical an o malies present in soil, ro c k chips, and shallow RA B drilling.

Highli g hts (above 5 0 0ppm Co) fr o m surface sa m pling includ e following hi g h grade cobalt samples:

P rojects

Winchester (NT) Magne s ium carbonate (MgCO3) Geolsec (NT) P hosphate rock (P2O5)

Batchelor (NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (WA) Au, Cu Bobrikovo (UKR) Au, Ag, Pb

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TYPE CO_PP
M
CU_PPM NI_PPM
rockchip 4,9
50
rockchip 4,0
33
rockchip 2,6
60
1,61
0
700
rockchip 2,1
02
rockchip 2,0
00
94
5
460
rockchip 1,9
10
26
0
1,020
rockchip 1,5
10
1,05
0
620
rockchip 1,4
40
rockchip 1,4
10
80
0
455
rockchip 1,1
58
rockchip 1,0
20

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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 7

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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

rockchip 7
50
rockchip 6
70
rockchip 6
33
10
0
1
rockchip 5
70
rockchip 5
45
1,90
0
820

Highli g hts (above 5 00 ppm C o ) from shallow RAB drilling include following zo n es of cobalt miner a lisation:

HOLE
_ID
FROM_M TO_M CO_PPM CU_PPM NI_PPM
MGR2
30
1 3 2,400 1,14
0
570
MGR2
30
3 5 2,700 1,54
0
735
MGR2
30
5 7 1,500 1,08
0
630
MGR2
30
7 9 1,420 80
0
455
MGR7
66
9 11 1,030 7
2
239
MGR2
27
7 9 685 2,26
0
1,040

Diagram below illu s trates in 3D near surface cobalt value s in shallow R AB drilling w ith faults an d fractur e s.

Issue d Capital

Shares: 288 mln Options: 4 mln Last Price: 2.1 cents Market Cap : $6.05 Mln

ASX: KOR BERLIN: C6S.BE

P rojects

Winchester (NT) Magne s ium carbonate (MgCO3) Geolsec (NT) P hosphate rock (P2O5)

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Figure 7 3D image of cobalt values in gridded shallow RAB drilling with overlayed faults and fractures (near surface drill-chip values, height and colour reflects Co grade in ppm).

Batchelor (NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (WA) Au, Cu Bobrikovo (UKR) Au, Ag, Pb

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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 8

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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

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Figure 8 3D image of cobalt values in gridded shallow soil sampling program with overlayed faults and fractures (surface values, height and colour reflects Co grade in ppm).

Issue d Capital

Shares: 288 mln Options: 4 mln Last Price: 2.1 cents Market Cap : $6.05 Mln ASX: KOR BERLIN: C6S.BE

P rojects Winchester (NT) Magne s ium carbonate (MgCO3) Geolsec (NT) P hosphate rock (P2O5) Batchelor (NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (WA) Au, Cu Bobrikovo (UKR) Au, Ag, Pb

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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 9

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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

APPENDIX B

Zinc, Silver and Lead at Batchelor Project

Signifi c ant drill int e rcepts (whic h were repo r ted on 23 N ovember 2 0 16) are sho w n below for refere n ce. Full repo r t can be acc e ssed at:

http:// w ww.asx.com.au/asx/statist i cs/displayAn n ouncement. d o?display=p d f&idsId=018 0 5134

There has been no material cha n ge to the ex p loration results since they were originally reported o n 23 No v ember 2016.

Issue d Capital

Shares: 288 mln Options: 4 mln Last Price: 2.1 cents Market Cap : $6.05 Mln

ASX: KOR BERLIN: C6S.BE

P rojects Winchester (NT) Magne s ium carbonate (MgCO3) Geolsec (NT) P hosphate rock (P2O5) Batchelor (NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (WA) Au, Cu Bobrikovo (UKR) Au, Ag, Pb

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Hole Fro
m (m)
To
(m)
Int
erval
(m)
Ag
(ppm)
Fro
m (m)
To
(m)
Int
erval
(m)
Ag
(ppm)
Fro
m (m)
To
(m)
Int
erval
(m)
Ag
(ppm)
Fro
m (m)
To
(m)
Int
erval
(m)
Ag
(ppm)
Fro
m (m)
To
(m)
Int
erval
(m)
Ag
(ppm)
Zn (%) Pb (%)
BRC12 68 81 13 4 4.71 0.38
In
cluding
78
79
80
79
80
81
1
1
1
15
10
4
20.60
11.80
7.35
0.32
1.53
0.39
BRC12 88 101 13 4 3.14 0.11
In
cluding
90
93
94
97
91
94
95
98
1
1
1
1
8
14
4
4
5.34
7.79
4.15
6.38
0.05
0.15
0.14
0.09
WBD06 36 58 22 78 0.21 3.16
In
cluding
42
44
48
50
44
46
50
52
2
2
2
2
210
135
99
115
0.16
0.16
0.79
0.21
8.38
13.50
2.36
2.08
WBP01 101 124 23 15 4.98 1.60
In
cluding
104
107
108
111
115
116
117
118
119
120
105
108
109
112
116
117
118
119
120
121
1
1
1
1
1
1
1
1
1
1
10
7
10
10
45
19
110
50
40
13
5.74
5.94
12.40
9.50
13.60
7.04
24.30
14.60
8.66
3.08
0.11
0.85
1.13
0.49
0.98
0.29
17.30
5.60
2.70
1.41
Figure
9 Drilling resu
lts highlights

As pr e viously repo r ted Korab, h as secured o riginal drill l o gs, plans, s e ctions, labo r atory assays, partial pulps and drill chips and a ssociated m a terials. Drill logs show th a t the mineralisation occur s as sp h alerite (zinc s ulphide) an d galena (lea d sulphide) with occasionally large amounts of silver. Simila r ly to Woodc u tters, mineralisation occur s primarily in a chlorite-car b onate altere d dolerite wit h associ a ted significa n t faulting an d fracturing.

Korab has previou s ly reported t hat the abo v e zinc/lead/silver drilling r esults are v e ry significant becau s e they pres e nt potential f or finding di s cordant, str u cturally emp l aced zinc, l e ad 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 10

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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

orebo d ies and als o present po s sibility for l a rge stratifor m , or stratab o und zinc, lead and silver deposits.

It is i m portant to n o te that there is evidence o f both styles of mineralis a tion in commercially mine d deposits nearby. Discordant, str u cturally emp l aced orebodies were disc o vered at th e Woodcutter s zinc, l e ad and silver mine and a t Area 44 some 8km to t h e north from Korab’s White Bomb/Gle n Luckie prospects. L arge stratiform or strata b ound base m etal deposi t s were disc o vered in th e Emba y ment Area a t Rum Jungl e (Browns, Mt. Fitch, and W hites) some 15-20km to the north west from W hite Bomb/G l en Luckie pr o spects.

Wood c utters Ag-Pb - Zn base met a l deposit wa s discovered in 1966 by B M R when the y drill-tested a promi n ent soil geo c hemical ano m aly. Open p it mining co m menced in 1 985 and w a s followed b y under g round development in late 1986. The mine operated for 14 years a n d closed in M ay 1999. Or e produ c tion totalled 4 .65 Million to n nes at 12.28 % Zn, 5.65% Pb, and 87 g/ t Ag.

The p o ssibility of a large zinc, lead, and sil v er deposit i n the White Bomb/Glen L uckie area i s sugge s ted by simil a rity of its s e tting to Wo o dcutters min e , the great t hicknesses o f significantl y miner a lised graphitic and pyritic sediments d rilled and th e large later a l extent of t h e associate d promi n ent soil geoc h emical ano m aly.

Issue d Capital

Shares: 288 mln Options: 4 mln Last Price: 2.1 cents Market Cap : $6.05 Mln

ASX: KOR BERLIN: C6S.BE

P rojects

Winchester (NT) Magne s ium carbonate (MgCO3) Geolsec (NT) P hosphate rock (P2O5)

Batchelor (NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (WA) Au, Cu Bobrikovo (UKR) Au, Ag, Pb

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Figure 10 Location of Winchester magnesium carbonate open pit relative to historical RC and DD drilling and soil Zn anomalies reported on 23 November 2016 (overlayed on a 3D soil Zn grid)

White Bomb is loc a ted on a mi n eralised tren d extending over 4km, which is part of a 16 km lon g target horizon and i n cludes the n e arby prospe c ts of White Bomb East, th e CRAE lead-zinc prospect, and p o ssibly the Oc c idental lead- z inc prospect .

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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 11

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White Bomb/Glen L uckie prosp e cts are in close proximit y to the ma g nesium carbonate deposit alread y discovered at Winches t er which is located within the adjac e nt mining lease, just fe w kilome t res to the n o rth-west and which is cur r ently nearing developmen t . This proxi m ity to Korab’ s other m ining and exploration ass e ts will provid e for conside r able logistic a nd operational advantage s during both the expl o ration phase and (should a discovery b e made) durin g any future d evelopment.

For de t ails of Wood c utters-style m ineralisation see the repor t of 23 Nove m ber 2016.

White Bomb pros p ect present s all feature s present in the explor a tion model for Zn/Pb/A g miner a lisation base d on the resul t s of the Woo d cutters struc t ural study:

  • Proximity t o regional sc a le basement d omes.

  • The inters e ction of regio n al scale anti c lines and tra n spressional f a ult zones.  Localised f ault-induced changes in t h e orientation of anticlinal axis or changes in plung e directions.

  • Presence o f fault-related medium to s m all scale fol d s, especially d isharmonic folds.

  • Fault (she a r) zones cont a ining deformed lamproph y re dykes or s u lphidic quart z veins.  Localised f a ult bends an d dilational fa u lt jogs.

  • Fault zone s with associ a ted cross cut t ing mineralis e d quartz vein arrays.

Issue d Capital

Shares: 288 mln Options: 4 mln Last Price: 2.1 cents Market Cap : $6.05 Mln

ASX: KOR BERLIN: C6S.BE

P rojects

Winchester (NT) Magne s ium carbonate (MgCO3) Geolsec (NT) P hosphate rock (P2O5)

Batchelor (NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (WA) Au, Cu Bobrikovo (UKR) Au, Ag, Pb

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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 12