Korab Resources Limited report that following the internal review of potential transactions, it has been determined that the sale of Korab's Rum Jungle mineral assets is not in the best interest of the Company or its shareholders. Consequently, the Company decided to discontinue further consideration of sale of either the Winchester magnesium, or the Geolsec phosphate projects located in the Northern Territory, near the town of Batchelor, an hour's drive from the Port of Darwin. All discussions regarding the potential sale of Winchester or Geolsec will be terminated. However, the Company will continue to engage in discussions regarding potential offtakes, joint ventures, and provision of financing. The decision to maintain Korab Group's equity in the Winchester magnesium project and the Geolsec phosphate project was influenced by the following factors: 1. Increasing demand for magnesium, phosphate, and rare earth elements due to production and export cuts by China, which is likely to continue into foreseeable future; 2. Chinese dominance of the magnesium, phosphates, and rare earth elements markets; 3. Growing investor support for companies developing magnesium, phosphates, and rare earth elements projects; 4. Availability of additional sources of development finance from private and government sources; a. $2 billion Critical Minerals Facility (CMF) established by Australian Government to fund projects like Winchester and Geolsec; b. $5 billion Northern Australia Infrastructure Facility (NAIF) reformed to provide mineral projects located in Northern Australia with easier access to funding; c. Korab Group having been approached by users of magnesium metal and magnesium alloys, REE users, and phosphate users interested in securing long term supply of these resources. Financing, JV, and offtake discussions are incomplete. No commercial terms have been agreed between the parties. There can be no certainty that any agreement or agreements can be reached or that any transaction will eventuate from these discussions. Accordingly, no investment decision should be made on the basis of this information. As these discussions are at an early stage and are incomplete any announcement of the details of these discussions would be premature and speculative.