SHARE INFORMATION ASX Listed Shares: 30.7m ASX Share Price: AU\$0.6 Market Cap.: AU\$18.42m

FULLY DILUTED BASIS

Issued Shares: 45m Market Cap.: AU\$27m Cash: AU\$2.6m

ENTERPRISE VALUE

Enterprise Value: AU\$24.4m Resource: 306.000 oz EV/oz resource: AU\$79.74/oz. Market Cap /oz resource: AU\$88 24/oz

Korab Resources Limited is a mining and exploration. company based in Perth. Australia, Korab operates prantum dold zinc cobser. lead, cobalt, iron ore and magnesium projects in Western Australia and the Northern Territory

Information about Korab's projects may be sourced from Korab Resources website at www.korabresources.com.au

Level 6 105 St. George's Tce Perth WA 6000 Australia Tel: +61 (8) 9322-4553 Fax: +61 (8) 9322 4554

PO Box 75447 St. George's Tce Perth WA 6831

Friday, 8 June 2007

By Electronic Lodgement

Company Announcements Office Australian Stock Exchange Limited 2 The Esplanade PERTH WA 6000

TRANSCRIPT OF URANIUM AUSTRALIA IPO INTERVIEW

Boardroom Radio (BR)

Boardroom Radio today welcomes the Executive Chairman of Korab Resources and Uranium Australia, Mr Andrei Karpinski. Welcome to Boardroom Radio, Andrei.

Andrej C.K. Karpinski (CK)

It's my pleasure. It's always nice to talk to you.

• BR Andrej, we haven't heard from Korab Resources in a while. Looking to get an update, firstly on your new float or upcoming spin-off of Uranium Australia. Tell us a bit more about it.
• CK Uranium Australia is a subsidiary company of Korab. It's been set up to focus on uranium exploration and development. So we've transferred already all the uranium assets or most of the uranium assets to that company. And we're currently working to float it on the Australian Securities Exchange. We're looking for an IPO probably happening sometime in July.
• BR And Andrei, who is the lead manager of the IPO?
• CK We've appointed BBY from Sydney as the lead manager and they will coordinate the whole capital raising and the processing of applications, and the after market
• BR And how much will Uranium Australia be seeking to raise and what price are you looking to raise it at?
• CK We're looking to raise about \$20-30 million, which is quite a big chunk of money compared to more usual \$3-4 million which juniors raise. As far as the price is concerned, we haven't yet determined the price. It will be set closer to the date of the prospectus, so when we are ready to lodge the prospectus we will set the price for the shares.
• BR And why is that Andrej?

Page 1

SHARE INFORMATION ASX Listed Shares: 30.7m ASX Share Price: AU\$0.6 Market Cap: AU\$18.42m

FULLY DILUTED BASIS

Issued Shares: 45m Market Cap.: AU\$27m Cash: AU\$2.6m

ENTERPRISE VALUE

Enterprise Value: AU\$24.4m Resource: 306.000 oz EV/oz resource: AU\$79.74/oz. Market Cap /oz resource: AU\$88 24/oz

Korab Resources Limited is a mining and exploration. company based in Perth. Australia, Korab operates prantum dold zinc cobser. lead, cobalt, iron ore and magnesium projects in Western Australia and the Northern Territory

Information about Korab's projects may be sourced from Korab Resources website at www.korabresources.com.au

Level 6 105 St. George's Tee Perth WA 6000 Australia Tel: +61 (8) 9322 4553 Fax: +61 (8) 9322-4554

PO Box 75447 St. George's Tce Perth WA 6831

• CK As you know, the uranium market is at the moment very active and a lot can change quite rapidly, and if the price of uranium were to change substantially between now and the end of the month, then obviously it would affect the issue price of the shares.
• BR And you mentioned before about the size of this float. Why are you raising so much money and will there be a problem with this size of capital raising?
• СK Uranium Australia will have an annual exploration budget of something around \$5 million and as you know probably by looking at Korab, I don't like going back to the market for more cash. So we're trying to make sure that Uranium Australia will have at least enough money for 3 to 4 years of operations. And I don't really see that it is going to be an issue to raise the money. We have very strong interest already and if we were to raise the money tomorrow, we'd probably be able to raise well in excess of that.
• BR And what sort of assets will Uranium Australia have?
• СK We've transferred 90% of rights to any uranium mineralisation within all Korab projects, so that's the main asset. And it will have exploration exposure to about 10 projects in Northern Territory and in Western Australia, all up about 20,000 square kilometres.
• BR And Andrej, just concerning the demand for the float, where is the money coming from?
• CK We did some preliminary road shows and had discussions with institutional investors in North America, Europe and Asia and that's where the money will be coming from. We also held talks with some companies in major areas where nuclear power is being used, so we spoke to utilities and to end users and that's where the bulk of the money will be coming from.
• BR And an important aspect for existing Korab shareholders, will they get priority in the IPO?
• CK Yes, of course. Korab shareholders will receive a priority offer of shares under the prospectus.
• BR And how does this exactly work, I know there has been some concern among small shareholders that they miss out on the Uranium Australia float.
• CK We are going to make sure that every shareholder is looked after, so we'll give them the right to subscribe for shares on the same basis regardless how many shares they have. So they will be able to subscribe for 1 share in Uranium Australia for every 3 shares they hold in Korab on the record date.
• BR When is this date?

Page: 2

SHARE INFORMATION ASX Listed Shares: 30.7m ASX Share Price: AU\$0.6 Market Cap: AU\$18.42m

FULLY DILUTED BASIS

Issued Shares: 45m Market Cap.: AU\$27m Cash: AU\$2.6m

ENTERPRISE VALUE

Enterprise Value: AU\$24.4m Resource: 306.000 oz EV/oz resource: AU\$79.74/oz. Market Cap /oz resource: AU\$88 24/oz

Korab Resources Limited is a mining and exploration company based in Perth. Australia, Korab operates prantum dold zinc cobser. lead, cobalt, iron ore and magnesium projects in Western Australia and the Northern Territory

Information about Korab's projects may be sourced from Korab Resources website at www.korabresources.com.au

Level 6 105 St. George's Tee Perth WA 6000 Australia Tel: +61 (8) 9322 4553 Fax: +61 (8) 9322 4554

PO Box 75447 St. George's Ice Perth WA 6821

CK The record date is the end of financial year, the 30^th of June 2007, or more exactly the end of business on Friday 29^th of June since this year the 30^th of June falls on Saturday. So anyone who is on the register as of that date obviously will be able to participate in the offer.

Now, when we get any surplus stock (if any shares are not taken up by any of the Korab shareholders), then they will be offered initially to those Korab shareholders that hold at least 15,000 shares. So we expect that some people may not participate in Uranium Australia for a variety of reasons and obviously then those shares will become available to our bigger shareholders.

• BR And you did mention in prior announcements that Korab might distribute the 90 million Uranium Australia shares it had already received. But then you announced that this is not going to be happening and Korab will retain the Uranium Australia shares following the float. Now in particular, why have you changed your mind on this?
• СK Well, from the outset we said that any distribution of Uranium Australia shares would require shareholder approval and it's the same as with capital reduction or sale of a major asset. You need shareholders to approve if the company is disposing of a major asset. Now with regard to the distribution, when we were holding discussions with our major shareholders and canvassing their opinions on which way they would vote, it became quite apparent that majority of large shareholders would not support the distribution, and hence the resolution to distribute the shares would be defeated, it was very unlikely to be approved in the general meeting.

Furthermore, we were advised by the float managers, by BBY who are the float managers for Uranium Australia IPO, that in their opinion it would be very counterproductive from the perspective of both companies (both Korab and Uranium Australia) to distribute the shares.

And we had quite a few discussions and you know, what they said made perfect sense to us (I mean to the Board), and I had to agree with their line of reasoning even though I would have made a fortune, you know a huge amount of money from the distribution.

If it went ahead, I would get something like 24 million free shares in Uranium Australia. But you know, Board can't give priority to short term interest of minority groups at the expense of the long term growth of Korab and Uranium Australia.

• BR Andrej, you did mention what assets Uranium Australia will hold. What assets will Korab have after the float?
• CK Korab will retain a 10% interest in uranium mineralisation within Korab projects, and obviously it will own the tenements making-up the projects. and also it will have rights to all minerals other than uranium that are within those projects.

Page 3

SHARE INFORMATION ASX Listed Shares: 30.7m ASX Share Price: AU\$0.6 Market Cap.: AU\$18.42m

FULLY DILUTED BASIS.

Issued Shares: 45m Market Cap.: AU\$27m Cash: AU\$2.6m

ENTERPRISE VALUE

Enterprise Value: AU\$24.4m Resource: 306.000 oz EVIoz resource: AU\$79.74/oz Market Cap /oz resource: AU\$88 24/oz

Korab Resources Limited is a mining and exploration. company based in Perth. Australia: Korab operates prantum dold zinc cobser. lead, cobalt, iron ore and magnesium projects in Western Australia and the Northern Territory

Information about Korab's projects may be sourced from Korab Resources website at www.korabresources.com.au

PO Box 75447 St. George's Tce Perth WA 6831

We will also have a pre-emptive right to provide funding for development of any uranium deposits which will be found by Uranium Australia and obviously Korab will have its own JORC compliant resource of 300,000 ounces of gold with potential for expansion.

We also have several nickel, zinc and lead targets and a number of copper anomalies within its projects, and of course the last but not least it will have the 90 million shares in Uranium Australia

• BR Finally Andrej, you have mentioned in your quarterly report that Korab has been for some time reviewing advanced projects in Eastern Europe. Tell us more about where you are at there?
• CK We looked at a number of fairly advanced uranium projects with established uranium resources. And we have also looked at a number of copper and gold projects with potential for a guick development. They can be in production within a very short time frame, we're talking months not years.

And this review and discussions with the current owners are still progressing. Even as we speak, one of our geologists is in the region working on these ventures.

Well, this is really as much as I can say at this stage. If there are any new developments we will obviously announce it to the Stock Exchange.

• BR Andrej, we appreciate your update today on your Uranium Australia float and the update on what else is happening at Korab and we do look forward to further news as the company does list in the next couple of months.
• CK Well thank you very much. It is always a pleasure to talk to you and it is always a pleasure to talk to your listeners.
• BR That was Andrej Karpinski, Executive Chairman of Korab Resources.

Regards

Andrei C.K. Karpinski, FAICD, F Fin EXECUTIVE CHAIRMAN

For more information call: Andrej CK Karpinski - (08) 9322 4553

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