PRAIRIE LITHIUM LIMITED — Capital/Financing Update 2011

Jul 13, 2011

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ASX Code: ZYL

14 July 2011

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

Restricted Securities

The Directors of emerging metallurgical coal producer ZYL Limited ( ZYL or the Company ) confirm that the following securities are subject to ASX imposed escrow.

1. 20,000,000 options exercisable at $0.20 each on or before 18 April 2015 to be held in escrow for a period of 24 months from the date of reinstatement of securities of the Company to official quotation.

2. 10,000,000 fully paid ordinary shares to be held in escrow for a period of 12 months from the date of issue, being 17 December 2010.

3. 10,000,000 fully paid ordinary shares to be issued to Breamline Investments Ltd upon the Company increasing its interest in the Kangwane Anthracite Coal Project to 50.12%, to be held in escrow for a period of 12 months from the date of reinstatement of securities f the Company to official quotation.

Yours faithfully,

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Nicholas Ong Company Secretary ZYL Limited

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