PRAIRIE LITHIUM LIMITED — Capital/Financing Update 2018

May 29, 2018

ASX ANNOUNCEMENT ASX:HWK

30 May 2018

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BIG SANDY DRILLING APPROVALS RECEIVED

HIGHLIGHTS

• Bureau of Land Management (BLM) approved drilling program

• Planned to complete 16 diamond holes for ~1,600 metres

• Drilling contractor being engaged with mobilisation and drilling to commence in June 2018

Hawkstone Mining Limited (ASX:HWK) ( Hawkstone , the Company ) is pleased to announce that USA Lithium Limited has received approval from the Bureau of Land Management ( BLM ) for a drilling program planned to commence in June 2018 at the Big Sandy Lithium Project.

Hawkstone announced the proposed acquisition of USA Lithium Limited on 22 March 2018. A meeting of shareholders will be held at 10.00 am on Thursday, 7 June 2018 to approve the proposed acquisition.

BIG SANDY LITHIUM CLAY PROJECT – DRILLING APPROVAL

The aim of this programme is to complete 16 diamond drill holes for circa 1,600 metres to test the highly anomalous results from the previous detailed mapping, surface sampling and shallow auger programmes on the mapped 11km x 2km zone of lithium mineralised green lacustrine clays (Figure 1).

It will also test for the potential presence of stacked mineralised zones within the Big Sandy Formation, host to the lithium mineralised green clays.

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Figure 1 – Big Sandy Claim Outline and Sampling Locations

Paul Lloyd, the Chairman elect of Hawkstone commented, “We are eager to commence exploration activities at Big Sandy as we anticipate diamond core drilling will provide us with an excellent understanding of stratigraphy and the potential for stacked mineralised zones across the Project.

USA Lithium would like to thank the BLM for their assistance and timely approval of our drilling program and we will continue to work closely with the BLM as we increase activity at Big Sandy.

We have engaged with local drilling contractors to finalise mobilisation logistics and expect the programme to commence in June 2018.”

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Figure 2 – Big Sandy – Hole 3 Approved Drill Location

MORE EXPLORATION GROUND APPLIED FOR

USA Lithium Limited has recently staked 53 BLM mining claims covering 429 hectares surrounding the Big Sandy Lithium Project.

The submission comes after an evaluation was completed to cover any extensions to the lithium mineralised green clays.

Subject to approval the Company will have 2,517 hectares under application or agreement at Big Sandy.

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For further information, please contact:

• Hawkstone - +61 8 6143 6705; or

• Paul Lloyd (Executive Chairman Elect) - +61 419 945 395.

Compliance statement

The information in this announcement which relates to exploration results for the Big Sandy Lithium Project was first released by the Company on 22 March 2018. The Company confirms that it is not aware of any new information or data that materially affects this information.

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