PRAIRIE LITHIUM LIMITED — Capital/Financing Update 2011

Nov 6, 2011

==> picture [55 x 55] intentionally omitted <==

ASX Code: ZYL

7 November 2011

Company Announcements Office Australian Securities Exchange Level 4 Exchange Centre 20 Bridge Street Sydney NSW 2000

ZYL to List on Johannesburg Stock Exchange

Highlights:

• ZYL to apply for a secondary listing on the Johannesburg Stock Exchange

• Macquarie First South Capital appointed as financial adviser and exclusive sponsor to ZYL for the secondary listing

• Provide a platform for South African investors to invest in ZYL

Perth-based emerging metallurgical coal producer ZYL Limited (ASX:ZYL) will apply for a secondary listing of its shares on the Johannesburg Stock Exchange ( JSE ).

Macquarie First South Capital (Proprietary) Limited has been engaged as ZYL’s financial adviser and exclusive JSE transaction sponsor. It is anticipated the listing will take place in April 2012, subject to necessary JSE and other regulatory approvals.

“The listing on the JSE will increase our profile in South Africa and allow investors in South Africa to invest directly in ZYL. The listing will also provide additional sources of equity and project finance to realise the full potential of ZYL’s Kangwane, Mbila and Southern Anthracite Projects,” said Dr Eric Lilford, Managing Director of ZYL.

About ZYL Limited

ZYL Limited is listed on the Australian Stock Exchange (ASX) and aims to become one of the world’s leading metallurgical coal producers. The mission of ZYL is to develop high margin metallurgical coal deposits for domestic and export markets. Flagship projects are the Kangwane and Mbila Projects in South Africa located close to rail, port, power and water infrastructure.

ENDS

Contacts:

Dr Eric Lilford, Managing Director, ZYL LIMITED T: +61 8 9486 4036 M: +61 (0) 424 757 452 E: elilford@zyllimited.com.au Thomas Murrell, Investor Relations M: +61 (0) 417 984 996 E: tom@8mmedia.com

==> picture [140 x 822] intentionally omitted <==

1 | P a g e