Fortbridge Media Release

Korab Resources Ltd [KOR] - Operations Update - Phosphate, Gold, Magnesite

MARKETING OF GEOLSEC PHOSPHATE ROCK PROGRESSING WELL � ADDITIONAL REQUESTS FOR SAMPLES AND REQUESTS TO QUOTE ON LARGE BULK SUPPLY PROGRAMS RECEIVED.
NEGOTIATIONS REGARDING SALE OF ORE FROM BOBRIKOVO COMPLETED AND ARE NOW AWAITING COMPLETION OF DOCUMENTATION.
REVIEW OF PROPOSAL TO DEVELOP WINCHESTER MAGNESITE PROJECT AS A DIRECT SHIPPING ORE MINE IS CONTINUING

MARKETING OF ROCK PHOSPHATE FROM GEOLSEC PROJECT (NORTHERN TERRITORY)
As previously advised on 30 May 2014 and 20 June 2014 Korab has been continuing the marketing of the Geolsec rock phosphate (�RP� or �phosphate�) after the receipt of the permit to mine (which was announced to the market in January 2014).
On 30 May 2014 Korab advised that it was in receipt of an unsolicited enquiry from one of the major Asian phosphate buyers and distributors for a supply of rock phosphate from Geolsec at a rate of 225,000-250,000 tonnes per year of direct shipping phosphate rock over a multi-year period.
Korab is pleased to advise that it has received additional request for samples to be provided to four additional domestic and overseas users and distributors. As a consequence of these additional requests Korab has amended the process of providing the samples. The process is expected to be completed during the week of 4-8 August. It is expected that this amended program will accommodate the requests for samples received to date and will also provide material for additional samples that may be required in the near future.
Furthermore, Korab is very pleased to advise that one of the major Asian phosphate buyers and distributors mentioned above, has requested Korab to provide quotation on additional supplies of bulk rock phosphate for another of their clients who is planning to buy annually around 3.2 million tonnes of bulk phosphate rock. This client also requested samples of rock for testing and these will be provided as part of the process described on previous page. Korab is currently preparing the quotation and expects to provide it to the potential buyer early next week.
About Geolsec Phosphate Project
Location of the Geolsec project, just south of the port of Darwin and within a short distance to majority of Asian ports (see map on page one) gives Geolsec significant advantage over phosphate producers located in Africa and the Middle East when supplying Asian and Australian buyers and distributors. Furthermore, being located next to trans-continental rail-way link and highway connecting to Ord River agricultural region, Queensland, NSW and Victoria, Geolsec has excellent access to the main agricultural regions in all Australian states.
Geolsec rock phosphate deposit is located approximately 3km west of the town of Batchelor and approximately 70km from Darwin. The project is accessible by sealed road all year round and is located near trans-continental highway linking Darwin with Adelaide, the national rail and road network, high-voltage power and a gas pipeline giving it the best logistics of any phosphate rock project in Australia. The deposit outcrops on a hill with no pre-strip required and can be mined using a low-cost open cut method utilising Vermeer-type continuous miner, excavator, or front-end loader and trucks.
BOBRIKOVO GOLD AND SILVER PROJECT (UKRAINE)
Further to the �Operations Update� released on 30 May 2014, and 20 June 2014 Korab is pleased to advise that all terms have been finalised with respect to the potential sale of ore to unrelated third parties. Under this agreement, the third party will buy the ore at mine gate for a fixed price per gold contained and will be solely responsible for logistics, transportation and processing. The parties are now awaiting completion of the documentation. Korab will advise ASX of the progress of this agreement as and when required.
In addition to the above sale of ore transaction, a second arrangement with another party is currently being negotiated (as discussed in the �Operations Update� released on 30 May 2014 and 20 June 2014). It envisages that another third party would toll-treat the ore and would be paid for its services through a share of the gold recovered. This party would also be solely responsible for the logistics and the costs of transportation and processing.
These agreements are non-exclusive and can run in parallel. Each of these arrangements has a potential to result in Bobrikovo project starting to generate cashflow without cash outlay by Korab Group, and to allow Korab to realise the significant value locked in the stockpile of ore mined over the last 4 years by Korab Group and stockpiled on site.
DIRECT SHIPPING ORE (DSO) MINING OPERATION AT WINCHESTER MAGNESITE DEPOSIT AT BATCHELOR PROJECT (NORTHERN TERRITORY)
As advised in the March Quarterly Report and in the �Operations Update� released on 30 May 2014 and on 20 June 2014, Korab Group is continuing to evaluate a proposal to establish a direct shipping ore (DSO) magnesite mining operation to supply a production facility which would produce magnesium oxide (�MgO�) and MgO-based building materials and prefabricated housing and which would be located overseas (close by ship from Darwin). Based on the preliminary results of the evaluation it appears that the Winchester magnesite deposit could support high volume/long life DSO mining operation. The conceptual pit design (see Figure 3) indicates that the pit depth would be 15m after 5 years of operation and 90m at the end of life.
Korab is please to advise that the review is progressing well and that the Company has engaged with additional parties involved in logistics support and infrastructure to continue the process.
The review of the feasibility study and of the test mining of the magnesite at Batchelor have both shown that the mining costs would be at the lower end of the scale making this one of the lowest-cost DSO magnesite operations and therefore an attractive proposition with potentially significant profit margin. The review is continuing and ASX will be advised as and when required about the progress of this evaluation.
Winchester magnesite deposit is a flat-laying, oval-shaped body which can be mined using open cut.
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CONTACT:
Andrej K Karpinski, Executive Chairman - Australia: (08) 9474 6166, International: +61 8 9474 6166