Korab Resources Ltd. and its subsidiaries advised that a stockpile of gold ore has been illegally removed from Sundance Gold Mine without Korab Group's permission. Another stockpile of gold ore has been illegally modified with some of the ore illegally removed without Korab Group's permission. Furthermore, some of the samples of Winchester magnesium ore which were stored at Sundance Gold Mine have also been illegally removed. The Company has been working for some time on the reopening of the Sundance Gold Mine and on toll treating of the stockpiles of the gold ore stored there. The Company has reported this matter to the Northern Territory's Department of Industry Tourism and Trade. Korab's lawyers have been notified and the Company will shortly be lodging complaint with the Northern Territory Police regarding this matter. This matter does not affect Korab Group's work on the Mine Management Plan for the development of the adjacent Winchester magnesium project.