KORAB RESOURCES LIMITED
KORAB HOUSE
www.korab.com.au
ASX
KOR
Last price
AU¢ 35
BERLIN
C6S.BE
Last price
€ 0.23
Issued capital
78.5 million shares
Market capitalisation
AU$ 27 million
€ 18 million
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
PAGE 1 OF 9
Monday, 1 March 2010
960,000 OZ AU RESOURCE AT BOBRIKOVO MINE1
"This has the making of a world-class deposit capable of supporting major
gold operation with large annual gold production and a long mine life..."
HIGHLIGHTS
 Maiden JORC Code compliant mineral resource for the Bobrikovo mine 960,000
ounces of gold 1
 Potential for substantial additional gold mineralisation
 Deposit is ready for mining, mining to commence in March 2010 2
 Lugansk Gold Ltd (holder of 74% equity in Bobrikovo) to undertake an IPO, Korab
shareholders to receive 1-1.5 free shares for each Korab share 3
BOBRIKOVO MINE MINERAL RESOURCE
Measured, indicated and inferred resource at 0.5g/t cut-off 4
Aggregate mineral resource at other cut-off grades 4
1 Combined measured, indicated and inferred resource at a cut-off grade of 0.5 g/t
2 Mine and process diagrams shown in Appendix B
3 Subject to shareholder, regulatory and ASX approval
4 Measured, indicated and inferred resources at 1, 1.5 and 2 g/t cut-off grades shown in Appendix A
KORAB RESOURCES LIMITED
KORAB HOUSE
www.korab.com.au
ASX
KOR
Last price
AU¢ 35
BERLIN
C6S.BE
Last price
€ 0.23
Issued capital
78.5 million shares
Market capitalisation
AU$ 27 million
€ 18 million
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
PAGE 2 OF 9
BOBRIKOVO GOLD AND SILVER PROJECT - DEMERGER, FREE
SHARES, IPO
Following the strategic review undertaken in 2009, Korab board has decided to seek separate stock
exchange listing on ASX and overseas for Lugansk Gold Ltd 5.

Following the IPO, Lugansk will
continue to develop the Bobrikovo gold and silver mine located in eastern Ukraine.

On the basis
of our discussions with European and North American brokers and investment banks, Korab expects
that the IPO of Lugansk will seek to raise (in aggregate) between US$40 and US$50 million in new
equity to fast-track the development of the Bobrikovo mine.

Korab is currently finalising the
documentation required to call an Extraordinary General Meeting (EGM) where Korab"s shareholders
will be asked to approve the demerger and the in-specie distribution of free shares in Lugansk Gold
to Korab shareholders at a pro-rata ratio of between 1 and 1.5 free Lugansk Gold Ltd shares for
each Korab share held on the record date .

Record date is likely to be 7-10 days after the EGM
which is planned for April 2010.

Work on the Lugansk Gold Prospectus is well advanced and should
be completed prior to the EGM taking place.
BOBRIKOVO DEVELOPMENT AND EXPLORATION POTENTIAL
Lugansk Gold Ltd intends to use the funds raised under the proposed IPO to cover the construction
of the processing plant and for working capital requirements.

It is the intention of the company to
achieve initial production of 60,000 oz of gold pa from Bobrikovo mine and to continue exploration at
Bobrikovo while mining and processing of the resource classified as measured category is taking
place.

This exploration program will aim to increase the JORC Code compliant resource to over 2
million ounces within the next 2 years 6.

The company is expecting to re-commence mining at
Bobrikovo in March 2010 and to commence production of gold and silver in the second quarter of
2011.

Please see Appendix B for details of the open-cut mine plan and the flow-chart design of the
proposed processing plant.
BACKGROUND TO THE BOBRIKOVO PROJECT
Korab commenced development of the Bobrikovo gold mine in June 2008 through Korab"s 74%
owned subsidiary Donetsky Kryazh Ltd (DKL).

Korab"s equity in DKL is held by Korab"s Australian
subsidiary, Lugansk Gold Ltd.

The remaining 26% interest in DKL is held by Ukrainian investors.

DKL
is registered under Ukrainian laws and is subject to local corporate tax at a rate of 25%.

All funding
requirements for DKL"s Bobrikovo gold mine are provided by Korab through Lugansk Gold Ltd.
Loans provided by Korab to Lugansk will be repaid by Lugansk following its IPO.

Loans provided by
Lugansk to DKL will be repaid by DKL from project"s pre-tax cash flows.

Ukraine has no restrictions
on repatriation of capital or profits and is a major investment destination for European Union"s
institutional investors.

Ukraine has ambitions of becoming a member of the European Union whilst
maintaining close working relationship with CIS.
5 Subject to shareholder, regulatory and ASX approval
6 There is no guarantee that proposed exploration program will result in the definition of an additional JORC
Code compliant resource.
KORAB RESOURCES LIMITED
KORAB HOUSE
www.korab.com.au
ASX
KOR
Last price
AU¢ 35
BERLIN
C6S.BE
Last price
€ 0.23
Issued capital
78.5 million shares
Market capitalisation
AU$ 27 million
€ 18 million
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
PAGE 3 OF 9
Gold Mineralisation and Geology at Bobrikovo
Bobrikovo mine is located in Eastern Ukraine in the Lugansk Region within Nagolny Ridge.

Nagolny
Ridge is part of a large intra-continental Phanerozoic structure that extends from southern Europe
east to Central Asia.

This structure hosts several world-class gold mining operations including
Muruntau, Vysokovoltnoe, and Bakirchic.

The tenor and style of mineralisation at Bobrikovo is similar
to 170 million ounce gold deposit at Muruntau in Uzbekistan and to 57 million ounce Sukhoi Log
deposit in Russia.

Other deposit anonalogues to Bobrikovo are gold deposits in Nova Scotia,
Canada.
The oxidised zone of the Bobrikovo deposit begins at the surface and extends down to 30-40 m.
Sulphide gold mineralisation starts at 30-40 m depth and continues to a depth of 3,200m.

Veins are
easily recognizable and suitable for selective extraction.
Bobrikovo structure strikes 11km by 2.5 km.

The deposit occurs on the intersection of deep fault
zones.

Mineralisation is controlled by NW-NNW trending anticline hinge, and occurs as concordant
quartz-carbonate tension veins and stockworks.

Host rocks of the Nagolny Kryazh comprise two
structural stages: the lower, Precambrian, and the upper, Phanerozoic.

The lower structure
comprises deformed sequence of gneisses and crystalline schists.

Precambrian basement is
overlapped by 3km- thick sedimentary rock sequence.

Ore zone is 2.5-3 km long and 0.9 - 1km wide.
Sulphide ores occur from the depth of 35m down to at least 3200m.
 Crustal environment: Nagolny Kryazh - centre of the Donetsk Fold Zone, on the E margin of the
Ukrainian Shield.
 Structural regime: Intersection of the Osyovy & Elanchik-Rovenkov deep-seated fault zones,
where the Osyovy Fault splays S and N.

7-25 m wide quartz-ankerite veins and stockworks sit at
crest of NW-trending anticline (280-290°, 11 km long, 2.5 km wide).
 Host rocks: C2-P3 metamorphosed flysch greywacke-shale sedimentary rocks.
 Ores: Carbonate-quartz veins and altered rocks with sulphide-gold mineralisation; fault controlled
 Regional metallogeny: mercury, gold, base metals, silver, coal, sandstone-hosted uranium
mineralisation
 Age of host rocks: Early-Carboniferous; Age of mineralisation: 270 Ma
RESOURCE MODELLING
Localization of all drill holes is based on local (Ukrainian) coordinate system Pulkovo 1942 Gauss
Kruger Projection, Zone 7.

All maps and ore models prepared in local system are coherent.
Preparation and analysis of the data base was performed by Geoexpert Ltd.

Resource calculation
was completed by Mincom Inc.

in cooperation with Geoexpert Ltd.

Resource calculation was
completed utilising Mincom Inc.

Mine Planning Software MineScape 4.119.

Resource calculation was
made independently of any previous works.

The space of the area of interest with the vertical span
from topography surface down to elevation -1040m a.s.l.

has been filled out with rectangular 3D cells.
3D cell size for the part of the deposit containing the resource classified as a measured category was
set to a cube of 1m x 1m x 0.55m.

3D cell size for the part of the deposit containing the resource
classified as indicated and inferred categories was set to a cube of 4m x 4m x 0.55m.

The value of
Au content has been calculated for each cell of the block model (around 16M cells in total) using
kriging.

Interpolation method used was inverse power of distance, with inverse distance power of 4.
Company has obtained additional data since October 2009 when work on this resource statement
commenced.

This data is currently being incorporated into an updated resource statement.

The
KORAB RESOURCES LIMITED
KORAB HOUSE
www.korab.com.au
ASX
KOR
Last price
AU¢ 35
BERLIN
C6S.BE
Last price
€ 0.23
Issued capital
78.5 million shares
Market capitalisation
AU$ 27 million
€ 18 million
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
PAGE 4 OF 9
company expects that the incorporation of this new data into the resource model will not change the
tonnage or grade in the measured resource category.

However, it may change the tonnage and/or
grade of the resources in the indicated and inferred categories within a range of 10% up, or down.
The updated resource statement will be announced to the market when it becomes available.
METALLURGY TESTING
Eight various metallurgical tests were carried out on the Bobrikovo deposit samples.

These tests
demonstrated that it is possible to effectively enrich the ore with recovery at a level of 90-98%.
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 quarrying and 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 Korab please visit our website at
www.korab.com.au Korab"s shares are traded on Australian Securities Exchange (ASX) and on the
Berlin Stock Exchange (Berliner Börse).
CONTACT:
Andrej K Karpinski, Executive Chairman - Australia: (08) 9474 6166, International: +61 8 9474 6166
Competent Person: The information in this report that relates to Exploration Results, Mineral Resources or
Ore Reserves is based on information compiled by Professor Piestrzynski, who the principal geological
consultant for Geoexpert Ltd.

and who is a member of European Federation of Geologists which is a
Recognised Overseas Professional Organisation (ROPO) pursuant to the JORC Code (Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves) and ASX Listing Rules and who holds
KORAB RESOURCES LIMITED
KORAB HOUSE
www.korab.com.au
ASX
KOR
Last price
AU¢ 35
BERLIN
C6S.BE
Last price
€ 0.23
Issued capital
78.5 million shares
Market capitalisation
AU$ 27 million
€ 18 million
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
PAGE 5 OF 9
a professional title of EurGeol (European Geologist).

Professor Piestrzynski has in excess of 5 years
experience which is relevant to the style of mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the
‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves".

Professor
Piestrzynski consents to the inclusion in the report of the matters based on his information in the form and
context in which it appears
APPENDIX A
Mineral resource at 1 g/t cut-off
Mineral resource at 1.5 g/t cut-off
Mineral resource at 2 g/t cut-off
KORAB RESOURCES LIMITED
KORAB HOUSE
www.korab.com.au
ASX
KOR
Last price
AU¢ 35
BERLIN
C6S.BE
Last price
€ 0.23
Issued capital
78.5 million shares
Market capitalisation
AU$ 27 million
€ 18 million
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
PAGE 6 OF 9
APPENDIX B
DIAGRAMS
Figure 1 Open pit design containing measured resource category weathered rock
KORAB RESOURCES LIMITED
KORAB HOUSE
www.korab.com.au
ASX
KOR
Last price
AU¢ 35
BERLIN
C6S.BE
Last price
€ 0.23
Issued capital
78.5 million shares
Market capitalisation
AU$ 27 million
€ 18 million
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
PAGE 7 OF 9
Figure 2 Mining method of high grade weathered rock in measured resource category
KORAB RESOURCES LIMITED
KORAB HOUSE
www.korab.com.au
ASX
KOR
Last price
AU¢ 35
BERLIN
C6S.BE
Last price
€ 0.23
Issued capital
78.5 million shares
Market capitalisation
AU$ 27 million
€ 18 million
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
PAGE 8 OF 9
Figure 3 Pit contour containing measured resource category weathered rock
KORAB RESOURCES LIMITED
KORAB HOUSE
www.korab.com.au
ASX
KOR
Last price
AU¢ 35
BERLIN
C6S.BE
Last price
€ 0.23
Issued capital
78.5 million shares
Market capitalisation
AU$ 27 million
€ 18 million
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
PAGE 9 OF 9
Figure 4 Proposed gravity circuit processing plant