Melrose

Melrose is an advanced gold project with the added potential of additional mineralisation at depth and along strike. The project has an established gold resource base of 340,000 ounces in three deposit: Boundary, Bungarra and Stirling, located on three granted mining leases.

The existing gold resources appear to have further ore potential at depth. Previous composite drill intersections that include 56 metres at 3.6 g/t from 49 metres, 22 metres at 11.6 g/t from 90 metres, 14 metres at 6.3g/t from 77 metres, 17 metres at 14.2g/t from 153 metres and 5 metres at 11.0g/t from 120 metres, justify belief of independent experts who suggest that the project may contain in excess of 1 million ounces Au. Drilling completed by Korab in 2005 and 2006 has confirmed the supergene nature of the Bungarra and has outlined areas of high grade mineralisation grading up to 211 g/t gold (6.8 ounces of gold per tone of ore). It also appears that the mineralisation is open at depth and laterally.

Korab has spun-off Melrose into Melrose Gold Mines Ltd which will seek listing on ASX this year. Korab shareholders will receive between 1 and 1.27 free shares in Melrose Gold Mines. IPO indicative price range fro Melrose has been set at 20-24 cents per share. Korab shareholders will also have a priority to subscribe for additional shares in the IPOs. The funds raised under the IPO will be used to fund the bankable feasibility study (BFS) which will include metallurgy and additional drilling to increase the JORC code compliant resource. The BFS is expected to be finished by mid 2011.

Ashburton Downs

The Ashburton Downs project contains several volcanogenic base metal and gold targets and by modern standards is under explored. The main gossan horizon has been drilled in the main area of outcrop with a 12 holes 10 of which have registered anomalous copper values. The best result was 3 metres @ 1.32% Cu from 105 metres. At the same time a number of sub cropping gossan zones have been identified up dip from this horizon and form early targets for further testing.

Maitland

Maitland project is located 60 km north west of Korab's Melrose project in Western Australia. Maitland immediately adjoins Lake Maitland uranium project owned by Redport Limited. Maitland project contains several extensions of the Lake Maitland uranium mineralisation.

Darlot East

At the Darlot East project our consultants have identified exploration targets for structurally controlled deposits that formed synchronously with the 3 million ounce Darlot gold deposit. Aeromagnetic surveys and geochemical sampling have produced several targets for drilling. During 2005 geological mapping and drill logging produced additional information to help explain the origin of the mineralisation at the site.

Melrose Project

Boundary deposit cross-section

Melrose Project

Resource definition drilling

Melrose Project

Bungarra deposit, near surface oxide ore 3D Model