PRAIRIE LITHIUM LIMITED — Capital/Financing Update 2017

Feb 27, 2017

28 February 2017

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Completion of Recapitalisation Proposal and effectuation of DOCA

The Company refers to previous announcements regarding it recapitalisation and is pleased to advise that all conditions precedent to the recapitalisation proposal set out in the Company’s notice of general meeting released to ASX on 30 August 2016 have now been met.

The Company has issued all securities offered under the prospectus dated 30 September 2016 and supplementary prospectus dated 23 December 2016, being 200,000,000 Shares pursuant to the Public Offer, 20,000,000 Shares pursuant to the Conversion Offer, 40,000,000 Proponent Shares and 10,000,000 Compliance Advisor Shares to complete the Company’s recapitalisation.

As a result, the Company is pleased to confirm that the deed of company arrangement ( DOCA ) has now been fully effectuated, and full control of the Company has passed to the Directors of the Company.

Mining right executed

The Company is also pleased to confirm the mining right for the Kangwane South Project was executed on 22 February 2017 and notes the following:

1. a financial provision, in the form of a guarantee for the amount of ZAR 5,574,974 (A$565,755), has been provided to the South African Department of Mineral Resources ( DMR );

2. the environmental authorisation has been approved;

3. the Company has permission from DMR to perform further exploration work on the Project; and

4. that, accordingly, the Company may now access the Kangwane South Project to commence its proposed exploration activities.

Change of name

As part of the recapitalisation proposal the Company’s name will shortly be changed to ‘Hawkstone Mining Limited’ and securities will trade under the ASX code “HWK”.

Reinstatement to trading

The Company has applied to ASX for its securities to be reinstated to trading. Investors are advised to monitor ASX announcements for further updates as to the timing of reinstatement.

Oonagh Malone

Company Secretary

ABN: 15 008 720 223 Suite 23, 513 Hay Street, Subiaco WA 6008, Australia Phone: +61 8 6143 6705