Korab Resources : joins International Magnesium Association

Issued Capital

Executive Chairman

Executive Director

personal Batchelor & G. Alligator

Rodney H. Skeet

Non-executive Director

(Independent)

A thony G. Wills Non-executiveDirector (Independent)

Projects

Winchester (Rum Jungle, NT)

Magnesium

Sundance (Rum Jungle, NT)

Gold, Silver, Tin

(Rum Jungle, NT)

Au, Ag, Zn, Pb, Ni, Cu, Co,

Sn+Li, Sc, Mn, U

Geolsec

(Luhansk, UKRAINE)

Gold, Silver, Zinc, Lead

KORAB RESOURCES LIMITED

KORAB HOUSE

www.korab.com.au

14 December 2021

KORAB GROUP JOINS INTERNATIONAL MAGNESIUM ASSOCIATION AS MAGNESIUM METAL PRODUCER

Korab Resources Ltd ("Korab", or "Company") (ASX: KOR) and its subsidiaries ("Korab Group") is very pleased to report that Korab and its wholly owned subsidiary Ausmag Pty Ltd (Ausmag) which is developing the Winchester magnesium deposit have been jointly accepted as Magnesium Metal Producer Member by The International Magnesium Association (IMA).

Founded in 1943, International Magnesium Association promotes the use of the magnesium metal and encourages innovative applications of the metal. IMA's members consist of primary producers of the magnesium metal, recyclers, foundries, fabricators, end-users, and suppliers.

Korab and Ausmag have joined The International Magnesium Association as the Magnesium Metal Producer Member following the assessment of the Winchester magnesium project's capability to produce magnesium metal using the previously tested magnesium metal production process.

Korab Group is reviewing several other magnesium metal production methods as disclosed to the market on 15 November 2021 in the report titled "MAGNESIUM METAL EXPORT AGREEMENT WITH DARWIN PORT".

In this report Korab advised the market that it has executed Heads of Agreement (HoA) with the operator and manager of Darwin Port (the Port) for the export of up to 30,000 tonnes per annum of magnesium metal through the Port. The HoA with Darwin Port includes the following tonnages of magnesium metal and magnesium compounds to be exported annually through the Port:

1. 30,000 tpa of high-purity magnesium metal (Mg),
2. 300,000 tpa of dead burned magnesia (DBM),
3. 200,000 tpa of caustic calcined magnesia (CCM), and
4. 2,000,000 tpa of magnesium carbonate direct shipping ore (DSO).

This report further advised the market that Winchester magnesium project has proved its capability to supply magnesium metal by completing the full production cycle where magnesium carbonate rock from Winchester deposit was converted to saleable pure magnesium metal (as previously advised in various ASX reports and investor presentations lodged with the ASX). This production cycle included:

1. Mining of magnesite at Winchester (Figure 1 and Figure 2);
2. Crushing and calcining magnesite from Winchester to produce magnesium oxide;
3. Commissioning of the magnesium pilot plant (Figure 3);
4. Processing magnesium oxide produced from Winchester magnesite into magnesium metal using the pilot plant (Figure 4);
5. Refining the magnesium metal to saleable product.

This production cycle has generated wealth of data that covers all aspects of the magnesium metal production process from mining, through crushing, calcining, metallurgy and smelting, to refining. It includes process designs, equipment lists, engineering drawings, as well as all statistics covering the use of energy, consumables, labour, parts, etc. This complete data set was acquired by Korab when

20 PROWSE STREET, WEST PERTH, WA, 6005, AUSTRALIA PO BOX 1958, WEST PERTH, WA, 6872, AUSTRALIA

Issued Capital

Executive Chairman

Executive Director

personal Batchelor & G. Alligator

Rodney H. Skeet

Non-executive Director

(Independent)

A thony G. Wills Non-executiveDirector (Independent)

Projects

Winchester (Rum Jungle, NT)

Magnesium

Sundance (Rum Jungle, NT)

Gold, Silver, Tin

(Rum Jungle, NT)

Au, Ag, Zn, Pb, Ni, Cu, Co,

Sn+Li, Sc, Mn, U

Geolsec

(Luhansk, UKRAINE)

Gold, Silver, Zinc, Lead

KORAB RESOURCES LIMITED

KORAB HOUSE

www.korab.com.au

it bought Winchester magnesium project. Ownership of this data could potentially allow Korab Group to move the Winchester magnesium project to production at a much faster pace than it would be possible if all these test results were not available.

Notwithstanding the availability of this technology, which was successfully tested and proven to work with Winchester ore, (Figure 1,Figure 2,Figure 3, and Figure 4) Korab is also considering other production processes and technologies that would allow Korab to take better advantage of the project's geographical location, would be more sustainable and environmentally friendly, and would provide greater stability of input cost over the longer-term production of magnesium metal. The Company will advise the market when this evaluation is completed.

Should Korab decide to proceed with the use of the technology that has already been successfully tested and proven to work with Winchester ore, there is potential for rapid progression to production and export of Winchester high purity magnesium metal given the following key 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. Strong and growing investor support for companies developing magnesium, phosphates, and rare earth elements projects;
4. Strong and growing government (federal, state and territory) support for companies aiming to decarbonise the economy and provide secure supply of critical minerals that are assisting this decarbonisation and which are used in renewable energy generation and storage, such as magnesium, phosphates, and rare earth elements;
5. Availability of additional sources of development finance from private and government sources;
6. 1. $2 billion Critical Minerals Facility (CMF) established by Australian Government to fund projects like Winchester and Geolsec;
   2. $5 billion Northern Australia Infrastructure Facility (NAIF) reformed to provide mineral projects located in Northern Australia with easier access to funding;
   3. 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.

Winchester magnesium project is the most attractive and advanced magnesium metal project under development anywhere in the world because of the following key factors:

1. Ready access to successfully tested and proven magnesium metal production technology (including all production process data);
2. Location of the Winchester magnesium deposit on a granted mineral lease adjoining sealed all-weather roads;
3. Close proximity and access to port facilities (less than an hour's drive);
4. Availability of power and energy, as well as abundant supply of water;
5. Proximity to a major city with readily available highly qualified workforce;
6. Strong support from the local, territory, and federal governments.

Please refer to Figure 6 for details of the location of the Winchester magnesium project, and Korab Group's other projects in the Rum Jungle area. Granted mining leases (mineral leases) are outlined in red and granted exploration licences are outlined in white.

20 PROWSE STREET, WEST PERTH, WA, 6005, AUSTRALIA PO BOX 1958, WEST PERTH, WA, 6872, AUSTRALIA

Issued Capital

Executive Chairman

Executive Director

personal Batchelor & G. Alligator

Rodney H. Skeet

Non-executive Director

(Independent)

A thony G. Wills Non-executiveDirector (Independent)

Projects

Winchester (Rum Jungle, NT)

Magnesium

Sundance (Rum Jungle, NT)

Gold, Silver, Tin

(Rum Jungle, NT)

Au, Ag, Zn, Pb, Ni, Cu, Co,

Sn+Li, Sc, Mn, U

Geolsec

(Luhansk, UKRAINE)

Gold, Silver, Zinc, Lead

KORAB RESOURCES LIMITED

KORAB HOUSE

www.korab.com.au

Figure 1 Test mining of magnesium at Winchester during the wet season (after blasting Level 0)

Figure 2 Test mining of magnesium at Winchester during the wet season (preparing to blast Level -1)

20 PROWSE STREET, WEST PERTH, WA, 6005, AUSTRALIA PO BOX 1958, WEST PERTH, WA, 6872, AUSTRALIA

Issued Capital

Executive Chairman

Executive Director

personal Batchelor & G. Alligator

Rodney H. Skeet

Non-executive Director

(Independent)

A thony G. Wills Non-executiveDirector (Independent)

Projects

Winchester (Rum Jungle, NT)

Magnesium

Sundance (Rum Jungle, NT)

Gold, Silver, Tin

(Rum Jungle, NT)

Au, Ag, Zn, Pb, Ni, Cu, Co,

Sn+Li, Sc, Mn, U

Geolsec

(Luhansk, UKRAINE)

Gold, Silver, Zinc, Lead

KORAB RESOURCES LIMITED

KORAB HOUSE

www.korab.com.au

Figure 3 Magnesium plant which produced pure Winchester Mg - condenser (left), arc furnace (right)

Figure 4 Close-up of the arc furnace (left) and pouring of slag after magnesium metal extraction (right)

20 PROWSE STREET, WEST PERTH, WA, 6005, AUSTRALIA PO BOX 1958, WEST PERTH, WA, 6872, AUSTRALIA

Issued Capital

Executive Chairman

Executive Director

personal Batchelor & G. Alligator

Rodney H. Skeet

Non-executive Director

(Independent)

A thony G. Wills Non-executiveDirector (Independent)

Projects

Winchester (Rum Jungle, NT)

Magnesium

Sundance (Rum Jungle, NT)

Gold, Silver, Tin

(Rum Jungle, NT)

Au, Ag, Zn, Pb, Ni, Cu, Co,

Sn+Li, Sc, Mn, U

Geolsec

(Luhansk, UKRAINE)

Gold, Silver, Zinc, Lead

KORAB RESOURCES LIMITED

KORAB HOUSE

www.korab.com.au

Figure 5 Solar farms at Batchelor (Batchelor 1 and Batchelor 2) adjacent to the Winchester project

Geolsec phosphate

Winchester magnesium

Sundancegold mine

Figure 6 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