Profit upgrades and cost reductions for Korab Resources October 29, 2009

Korab Resources (ASX: KOR) is pleased to announce that the estimated start-up costs of the GeolSec phosphate project have been further reduced from the range of $300,000-$500,000 to the range of $200,000-$300,000 which could potentially result in a start-up cost savings of $200,000.
Furthermore the estimated working capital requirements have been reduced from the range of $500,000- $800,000 to the range of $300,000-$500,000 resulting in additional potential savings of around $300,000. This brings the total savings in combined start-up and working capital requirements to around $500,000.

Highlights

• Geolsec phosphate project funding secured
• $500,000 cut to project costs
• Permitting process progressing as planned – no objections to mining lease application
• Marketing indicates strong additional demand for GeolSec product
• Potential to generate pre-tax profit of 33 cents per share over 3 years from 2010

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