Korab Resources to develop new gold project in WA October 29, 2009

Korab Resources (ASX: KOR) wishes to advise that it has received a number of proposals and expressions of interest from China, India, Europe and the Middle East to jointly develop or to finance development of 100% Korab-owned Melrose gold project located 160km north of Leonora in the Eastern Goldfields of Western Australia.

HIGHLIGHTS

• Proposals and expressions of interest received from China, India, Europe and the Middle East to develop or to finance development of Melrose gold project
• Melrose projects contains JORC code compliant resource base of 306,000 ounces in oxide and sulphide ores
• The global average grade for Melrose sulphide mineralization is 4.1 g/t gold
• Veins contain visible gold and grade up to 266 g/t Au
• Mineralization extends from 10m to depths of 250m and remains open at depth.
• Drilling confirms potential for additional high grade shoots and bulk low grade mineralization.
• Gold production scheduled to commence in 2011.
• 1st year production to genrtae pre-tax profit of AU$8,000,000

Click here to view the full announcement.

For further information, please contact:

Andrej K Karpinski, Executive Chairman – Australia: (08) 9474 6166, International: +61 8 9474 6166