KORAB RESOURCES LIMITED
www.korabresources.com.au
Page 1 of 5
ASX
KOR
Last price
AU¢ 14
BERLIN
C6S.BE
Last price
€ 0.08
Issued capital
68 million shares
Market capitalisation
AU$9.52 million
€5.4 million
KORAB HOUSE
LEVEL 1, SUITE 6, 100 MILL POINT ROAD, SOUTH PERTH, WA, 6151 AUSTRALIA
PO BOX 195, SOUTH PERTH, WA, 6951 AUSTRALIA
TEL (08) 9474 6166 FAX (08) 9474 6266
ACN 082 140 252
Thursday, 6 August 2009
URANIUM AUSTRALIA LTD IPO - MORE FREE URANIUM AUSTRALIA
SHARES FOR KORAB SHAREHOLDERS
Highlights
Korab shareholders to received 1.33 free shares instead of 1 free share in Uranium Australia
Ltd for each Korab share held on the record date.
Korab wishes to advise that subject to shareholder approval, Korab shareholders will receive
approximately 1.33 free shares in Uranium Australia Ltd for each Korab share they will hold on the
record date.
As announced to ASX on 20 July 2009, Korab intends to seek shareholder approval for the spin-off
and an in-specie distribution of the shares in Uranium Australia Ltd to Korab shareholders.

The notice
of the extraordinary general meeting (EGM) to approve the distribution is being finalised and will be
despatched to Korab shareholders shortly.
Following ASX announcement of 20 July, Korab has canvassed opinions and voting intentions of
major Korab shareholders who hold in aggregate over 68% of the issued capital of Korab.

All of
these Korab shareholders have confirmed that they will be likely to vote in favour of the in specie
distribution at the upcoming general meeting.
BACKGROUND
Uranium Australia Ltd (UAU) is a uranium exploration company with world class uranium projects
in the Northern Territory and Western Australia including the Batchelor project within the Rum
Jungle Mineral Field near Darwin (RJMF).

RJMF is the location of several high grade uranium
deposits and mines and is the oldest uranium producing region in Australia.

It is considered by
experts to be the most prospective area for near surface high grade unconformity style uranium
deposits.

Uranium Australia"s Batchelor project extends for 20 km from the pit wall of the largest
uranium mine within Rum Jungle Mineral Field (Rum Jungle Creek South) along the uranium bearing
contact between Coomalie Dolostone and the Whites Formation which hosts all major uranium
mineralisation within the Rum Jungle Mineral Field.
Korab holds a number of shares in UAU as a strategic stake.

It has been proposed that these UAU
shares will be distributed for free to Korab shareholders and that following this distribution UAU will
undertake an IPO to list on ASX.
Korab will be sending out a notice of the meeting to obtain shareholder approval for this distribution
shortly.

All Korab shareholders holding shares on the record date will be entitled to participate on
equal terms in the distribution and following the approval of the distribution will receive
approximately 1.33 free shares in UAU for each Korab share they hold.

The record date will be a
date in the future and will be provided in the notice of the meeting.
UAU has received an in principle advice that should UAU seek admission to the ASX, ASX will be
likely not to impose escrow provisions on the UAU shares distributed to Korab shareholders (other
KORAB RESOURCES LIMITED
www.korabresources.com.au
Page 2 of 5
ASX
KOR
Last price
AU¢ 14
BERLIN
C6S.BE
Last price
€ 0.08
Issued capital
68 million shares
Market capitalisation
AU$9.52 million
€5.4 million
KORAB HOUSE
LEVEL 1, SUITE 6, 100 MILL POINT ROAD, SOUTH PERTH, WA, 6151 AUSTRALIA
PO BOX 195, SOUTH PERTH, WA, 6951 AUSTRALIA
TEL (08) 9474 6166 FAX (08) 9474 6266
ACN 082 140 252
than the shares distributed to directors, promoters and related parties).

The effect of this would be
that the UAU shares distributed to Korab shareholders would be free to trade from commencement of
trading of UAU on the ASX
Korab has been advised by UAU that it has received expressions of interest from brokers to
sponsor/underwrite a $6 million IPO of UAU on ASX.

The IPO of UAU is planned for October 2009.
UAU has further advised Korab that the issue price for the IPO will be set at 20 cents per UAU share
ABOUT URANIUM AUSTRALIA LTD
Uranium Australia Ltd (ASX reserved code: UAU) was founded in 2007 as a uranium mining and
exploration company focusing on the Northern Territory and Western Australia.

The Company has
several projects with a potential to host large scale uranium mineralisation.

Two of these projects are
located in the Northern Territory and five projects are located in Western Australia.
The Company brings together an experienced management team with a strong record in the
acquisition and development of resource projects.
What distinguishes Uranium Australia amongst many other exploration companies is its exploration
strategy which is loosely termed the "Mineral Systems" approach.

This philosophy centres on
applying the understanding of the mineralising processes in a predicative capacity, rather than
utilising a purely empirical approach.

It is a method focussing on ‘why" mineralisation occurs and
‘where" it should occur under various geological conditions.

This is in contrast to a traditional
approach which largely targets only geochemical or geophysical anomalies.
The "Mineral Systems" approach has several benefits.

It enables the Company to explore for several
styles of uranium mineralisation as opposed to focusing on a single mineralisation model such as
surficial calcrete-based or unconformity related uranium.

In addition, the Company increases the
chances for discovering an entirely new zone or a different style of mineralisation by utilising the
available data in a more holistic fashion.
In the light of this approach, the highest priority projects are the Batchelor and Green Alligator
Projects, in the Rum Jungle Mineral Field, Northern Territory.

These have a combination of ‘drill
ready" targets adjacent to known historic unconformity-style uranium mineralisation at Rum Jungle
Creek South uranium mine as well as more innovative targets, extending eastwards along a large
zone of similarly prospective rocks.

In this case a "Mineral Systems" approach is likely to be of
substantial benefit in understanding the processes that have lead to mobilisation and deposition of
uranium mineralisation within the target horizon.

Furthermore, this exploration philosophy, may in fact
be a necessary to enable optimal delineation and ranking of targets.
The area encompassing the Batchelor and Green Alligator projects is well serviced by basic
infrastructure.

A gas pipeline, a high voltage power line, a water pipeline, a major highway and a
transcontinental railway line cross tenements contained in these projects.

Furthermore, the
tenements are located just 75km south from Darwin
In the Northern Territory, Uranium Australia will be focusing on the high value unconformity related
uranium mineralisation which occurs on the carbon-rich interface between the Coomalie Dolostone
and the Whites Formation (see the Figures 1 and 2 on next page).

These deposits tend to occur at
shallow depths and historically had grades of between 0.2% and 0.5% of uranium.

The largest of the
uranium deposits, Rum Jungle Creek South (Figure 2) which is located on the boundary of Uranium
Australia"s ground occurred at a very shallow depth and was mined at a grade of 0.48% uranium for
approximately 9,000,000 pounds of uranium.
KORAB RESOURCES LIMITED
www.korabresources.com.au
Page 3 of 5
ASX
KOR
Last price
AU¢ 14
BERLIN
C6S.BE
Last price
€ 0.08
Issued capital
68 million shares
Market capitalisation
AU$9.52 million
€5.4 million
KORAB HOUSE
LEVEL 1, SUITE 6, 100 MILL POINT ROAD, SOUTH PERTH, WA, 6151 AUSTRALIA
PO BOX 195, SOUTH PERTH, WA, 6951 AUSTRALIA
TEL (08) 9474 6166 FAX (08) 9474 6266
ACN 082 140 252
Figure 1 Uranium Australia Ltd uranium targets
Figure 2 Uranium deposition model - Rum Jungle Creek South deposit
KORAB RESOURCES LIMITED
www.korabresources.com.au
Page 4 of 5
ASX
KOR
Last price
AU¢ 14
BERLIN
C6S.BE
Last price
€ 0.08
Issued capital
68 million shares
Market capitalisation
AU$9.52 million
€5.4 million
KORAB HOUSE
LEVEL 1, SUITE 6, 100 MILL POINT ROAD, SOUTH PERTH, WA, 6151 AUSTRALIA
PO BOX 195, SOUTH PERTH, WA, 6951 AUSTRALIA
TEL (08) 9474 6166 FAX (08) 9474 6266
ACN 082 140 252
Figure 3 Uranium deposition model - Whites deposit
Figure 4 Uranium deposition model - Dysons deposit
KORAB RESOURCES LIMITED
www.korabresources.com.au
Page 5 of 5
ASX
KOR
Last price
AU¢ 14
BERLIN
C6S.BE
Last price
€ 0.08
Issued capital
68 million shares
Market capitalisation
AU$9.52 million
€5.4 million
KORAB HOUSE
LEVEL 1, SUITE 6, 100 MILL POINT ROAD, SOUTH PERTH, WA, 6151 AUSTRALIA
PO BOX 195, SOUTH PERTH, WA, 6951 AUSTRALIA
TEL (08) 9474 6166 FAX (08) 9474 6266
ACN 082 140 252
ABOUT KORAB RESOURCES LIMITED
Korab Resources Ltd is an Australian mining and exploration company based in Perth with
operations in Australia and Europe.

Korab"s mining projects include rock phosphate, gold, silver and
magnesium.

The company also manages exploration projects in Western Australia and the Northern
Territory.

For more information about the Company"s projects please visit our website at
www.korabresources.com.au Korab"s shares are traded on Australian Securities Exchange (ASX)
and on the Berlin Stock Exchange (Berliner Börse) through Equiduct electronic trading platform.
CONTACT:
Andrej K Karpinski, Executive Chairman - Australia: (08) 9474 6166, International: +61 8 9474 6166
Figure 5 Uranium deposition model - Rum Jungle Creek South
Figure 5 Uranium deposition model - Browns deposit