PRAIRIE LITHIUM LIMITED — Capital/Financing Update 2011

Jul 13, 2011

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ASX Code: ZYL

14 July 2011

Media ASX Announcement

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

Issue Capacity under Listing Rule 7.1

The Directors of emerging metallurgical coal producer ZYL Limited ( ZYL or the Company ) confirm that the Company has issued 20,000,000 options exercisable at $0.20 on or before 18 April 2015 ( Options ) to Selentium Capital, of which 12,500,000 Options were issued utilising the Company’s 15% issue capacity pursuant to listing rule 7.1.

The Company confirms that following the issue of the 15,000,000 Options, the remaining balance of its unused issue capacity is now at 12.41% or 59,887,885 securities.

Yours faithfully,

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Nicholas Ong Company Secretary ZYL Limited

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