PRAIRIE LITHIUM LIMITED — Capital/Financing Update 2012

Mar 11, 2012

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ASX RELEASE 12 March 2012

EXPRESSIONS OF INTEREST FOR OFFTAKE, FUNDING & PORT FACILITIES FOR KANGWANE AND MBILA

Highlights:

• Expressions of Interest (EOIs) received from global mining houses and commodity traders to purchase 4.0Mtpa of anthracite production

  • Kangwane EOIs for 1.7Mtpa

  • Mbila EOIs for 2.3Mtpa

  • EOIs for both projects exceed full planned saleable production

• Discussions commenced with parties providing EOIs for production funding for Kangwane and Mbila in exchange for securing offtake rights

• EOIs from parties with access to port facilities and coal terminals within Southern Africa, providing potential export markets options

ZYL Limited (ZYL; ASX: ZYL) , the Perth-based emerging anthracite producer with two key projects in South Africa, is pleased to announce the receipt of additional non-binding Expressions of Interest (EOIs) for offtake, together with funding, in respect of production from its Kangwane and Mbila projects.

These latest EOIs are from major international commodity traders who have agreements to procure export capacity for coal and/or anthracite at Matola Coal Terminal in Mozambique and may have similar opportunities through other South African ports. The Kangwane project is focused on the export market and the Mbila project is initially targeting domestic supply.

ZYL’s Executive Chairman, Bevan Tarratt said the EOIs effectively increase the indicative offers for the Company’s production to 4.0Mtpa, a seven fold increase from earlier offers.

“In consideration for rights to secure offtake from the projects for an agreed period, the additional EOIs submitted include the intent to negotiate a potential combination of: advance funding to assist the commencement of production at the projects and/or an equity investment in ZYL.”

“ZYL has a quality product which is in high demand. Even so, the level of interest in both projects has surpassed our expectations and demonstrates the viability of both operations.”

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Corporate Office: Level 8, 225 St Georges Terrace, Perth 6000,Western Australia Tel: +61 8 9486 4036 Email: info@zyllimited.com.au PO Box 7653, Cloisters Square, Perth 6850, Western Australia Fax: +61 8 9486 4799 Web: www.zyllimited.com.au

“The new EOIs provide the optionality to service either the domestic or international markets, or a combination of both,” Mr Tarratt said.

The Kangwane EOIs received to date total 1.7Mtpa, exceeding the initial planned saleable production from the Kangwane project of 1.2Mtpa. The Mbila EOI’s received to date now total 2.3Mtpa (inclusive of the 600 000tpa announced on 3 February 2012) and exceed full planned saleable production for both Phase 1 and 2 of production.

ZYL is working with interested parties and its corporate advisors to formalise the EOIs received to date and the various funding options, and will update the market in due course.

ENDS

Contact:

Bevan Tarratt, Executive Chairman, ZYL LIMITED

T: +61 8 9486 4036 M: +61 (0) 418 928 719

E: btarratt@zyllimited.com.au

Media - South Africa

James Duncan, Russell and Associates

T: +27 (0) 11 880 3924 M: +28 (0) 82 892 8052 E: james@rair.co.za

Media - Australia Annette Ellis, Purple Communications

T: +61 (0) 8 6314 6300 M: +61 (0) 458 200 039 E: aellis@purplecom.com.au

About ZYL Limited

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

Important information

The information in this announcement is an overview and does not contain all information necessary to make an investment decision. To the extent permitted by law, no representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates or opinions or other information contained in this announcement, any of which may change without notice. This document is not a prospectus, disclosure document or offering document under Australian law or under any other law. It does not constitute an offer or invitation to apply for securities. It is for information purposes only. This announcement is not an offer of securities for subscription or sale in the United States or any other jurisdiction in which such an offer or solicitation is not authorised or to any other person to whom it is unlawful to make such an offer or solicitation. Some of the information contained in this announcement constitutes forward-looking statements that are subject to various risks and uncertainties, not all of which may be disclosed. These statements discuss future objectives or expectations concerning results of operations or financial condition or provide other forward-looking information.

Prospective investors should make their own independent evaluation of an investment in the securities. The material contained in this document does not take into account the investment objectives, financial situation or particular needs of any particular investor. No recommendation to investors regarding the suitability of the securities has been made and the recipient must make its own assessment and/or seek independent advice on financial, legal, tax and other matters, including the merits

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and risk involved. This announcement and its contents have been distributed to you, in confidence, solely for your information and may not be retransmitted or otherwise reproduced or disclosed to third parties or made public in any way, in whole or in part, for any purpose without written permission.

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