Ann: Placement update-KOR.AX, page-2

PLACEMENT UPDATE Korab Resources Ltd
KOR refers to the placement of $500,000 worth of
Korab shares to Mr. Wang (announced on 23 March 2016) of which Korab has received to date approximately $270,000 of the total. Korab has been advised by the Indian Ocean Group, who are the brokers and advisors for this placement, that the completion of the remaining tranche worth approximately $230,000 has been delayed until at least end of November 2016.

However, this is not affecting the proposed $6 million investment by the parties associated with Mr. Wang, who intend to invest $6 million directly into Korab’s subsidiary AusMag Pty Ltd to fund the development of the Winchester magnesium carbonate project located near Darwin in the Northern Territory (as disclosed to the market on 23 March 2016). This transaction, which is also brokered and advised by the Indian Ocean Group and which is a separate transaction from the $500,000 Korab share placement referred to in the first paragraph, is progressing as planned and the documentation for this investment is currently being finalised.

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