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1 25 January 2013 EXCELLENT RECOVERIES IN HEAP LEACH TESTS AT MELROSE PROJECT HIGHLIGHTS Excellent gold recoveries in column leach tests with 94%+ Au extracted after 32 days of leaching from Bungarra deposit Very good gold recoveries in column leach tests with 76%+ Au extracted after 60 days of leaching from Boundary deposit Results indicate that Boundary (215,000 ounces Au*) and Bungarra (107,000 ounces Au*) are amenable to low-cost heap leach gold processing Review of development options for the project has commenced Korab Resources Limited ( Korab or the Company ) (ASX:KOR) is pleased to announce the results from the metallurgical and cyanide leach testing of composite samples from the Boundary and Bungarra deposits at Korab s 100% owned gold project. The results confirm very good recovery rates from column leach tests of agglomerated ore, indicating both deposits are amenable to heap leach processing % of contained gold was recovered after 32 days from the Bungarra deposit samples, whilst 76.03% of contained gold was recovered after 60 days from the Boundary deposit samples. The cumulative rate of gold extraction for each of the deposits is shown in Diagrams 1 and 2 on page 4. In view of the continued encouraging gold recovery results from the project, Korab has commenced a review of the development options for this deposit, with the preferred option being a heap leach gold extraction process. Heap leach extraction offers the dual benefit of both a low upfront CAPEX and low ongoing operating costs. Diagram 3 on page 5 shows typical heap leach gold extraction operation. Gold mineralisation at the 107,000* ounce Bungarra deposit starts from 15m below the surface and includes several high grade sections. Diagram 4 on page 5 shows the mineralised shell of Bungarra deposit. A scoping study completed on the Bungarra deposit indicates a waste-to-ore ratio of 4.2 to 1 for a bulk mining operation. Gold mineralisation at the 215,000* ounce Boundary deposit starts from just 10m below surface and also includes several high grade sections. Diagram 5 on page 6 shows a cross section of Boundary deposit. A scoping study completed on the Boundary deposit indicates a waste-to-ore ratio of 2.43 to 1 for a bulk mining operation. In addition to the project, Korab owns and operates the 2 million ounce* Bobrikovo gold project located in Ukraine. Bobrikovo is mining and stockpiling oxide ore pending construction and commissioning of gravity gold extraction plant. Independent consultants are currently working on the update of the Bobrikovo mineral resource estimate. Background to Heap Leach Amenability Tests The project is located 70km north east of Leinster in the Eastern Gold Fields of Western Australia, within the Mt. Fisher/Wanganoo greenstone belt. The project hosts a mineral resource containing 340,000* ounces of gold estimated in accordance with the JORC Code. This *please see Appendix A for mineral resource estimates. ACN PAGE 1 OF 7

2 mineral resource is contained in three deposits (Bungarra, Boundary and Stirling) located in close proximity. Diagram 6 on page 7 shows the relative location of the deposits and the basic infrastructure available at the project. Korab carried out metallurgical test work of core samples from two large diameter (HQ) diamond holes drilled in late The recovered material was run through a significant metallurgical test work program, designed to assess the potential for a simple bulk mining and heap leaching operation at the Bungarra and Boundary gold deposits, within the project. The program was designed to collect material from surface to end of hole. Material from surface has provided an insight into bulk density within the oxidised profiles for comparison with bulk densities used in the resource calculations, as well as saprolitic profile identification and mineralisation identity for mining purposes. The holes were drilled down dip to provide the maximum mineralised sample return and giving a significant range of grades through the mineralised interpretations. The core return weights were very good and have provided sufficient material for a detailed metallurgical program which is currently under way. Hole DD001 was drilled down-dip within the south section of the Bungara deposit in an area where high grade concentrations appear to occur possibly due to plunging shoots of oxidation profiling. Hole DD005 was located within the northern part of the Boundary resource area and was drilled down-dip to provide the maximum lode return and to intercept areas of significant high grade mineralisation. Full core was submitted to ALS AMMTEC. The following test work program has been completed: 1. Preparation of bulk composites for heap leach amenability testwork; 2. Grind sample to 106µm; 3. Direct cyanide leach testwork on sample ground to 106µm; 4. Coarse feed size cyanidation time leach testwork with intermittent roll agitation; 5. Percolation rate testwork; 6. Agglomeration optimisation testwork; 7. Column cyanidation leach testwork, and 8. Size by size gold analysis on column leach residue. FOR FURTHER INFORMATION, CONTACT: Andrej Karpinski Executive Chairman (08) Competent Person: The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Andrew Hawker, who is an independent geological consultant and is a member of The Australasian Institute of Mining and Metallurgy. Andrew Hawker 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. Andrew Hawker consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. ACN PAGE 2 OF 7

3 APPENDIX A MINERAL RESOURCE AT MELROSE PROJECT (ABOVE 0.5 G/T AU CUT-OFF GRADE) Category Tonnes Grade g/t Au Gold Ounces Measured Boundary 652, ,262 Indicated Boundary 2,662, ,506 Inferred Boundary 703, ,822 Bungarra 2,144, ,385 Stirling 404, ,000 Total Resource 6,566, ,975 BOBRIKOVO MINERAL RESOURCE STATEMENT (ABOVE 0.5 G/T AU CUT-OFF GRADE) Resource by category At 0.5 g/t Au cut-off VOLUME ORE_MASS AU_CONTENT AU_MASS AU_MASS [1000m3] [1000t] [g/t] [t] [Mln oz.] Measured , Indicated 2, , Inferred 11, , Total 14, , Totals may differ due to rounding BOBRIKOVO MINERAL RESOURCE STATEMENT (ABOVE 1 G/T AU CUT-OFF GRADE) Resource by category At 1 g/t Au cut-off VOLUME ORE_MASS AU_CONTENT AU_MASS AU_MASS [1000m3] [1000t] [g/t] [t] [Mln oz.] Measured Indicated 2, , Inferred 3, , Total 7, , Totals may differ due to rounding BOBRIKOVO MINERAL RESOURCE STATEMENT (ABOVE 2 G/T AU CUT-OFF GRADE) Resource by category At 2 g/t Au cut-off VOLUME ORE_MASS AU_CONTENT AU_MASS AU_MASS [1000m3] [1000t] [g/t] [t] [Mln oz.] Measured Indicated 1, , Inferred 1, , Total 2, , Totals may differ due to rounding ACN PAGE 3 OF 7

4 Diagram 1 Column Leach Gold Extraction from Bungarra Deposit Composite Sample NaCN consumption: 0.86 kg/t, Cement addition (agglomeration): 10 kg/t Feed size: <8 mm Pregnant solution passed through carbon absorption stage. Diagram 2 Column Leach Gold Extraction from Boundary Deposit Composite Sample NaCN consumption: 1.19 kg/t Cement addition (agglomeration): 10 kg/t Feed size: <8 mm Pregnant solution passed through carbon absorption stage. ACN PAGE 4 OF 7

5 Diagram 3 - Typical Heap Leach Extraction Diagram 4 Mineralised Shell of Bungarra Deposit ACN PAGE 5 OF 7

6 Diagram 5 Cross Section of Boundary Deposit ACN PAGE 6 OF 7

7 Diagram 6 Project Relative Location of Deposits ACN PAGE 7 OF 7