PRAIRIE LITHIUM LIMITED — Director's Dealing 2011

Dec 15, 2011

Appendix 3X Initial Director’s Interest Notice

Rule 3.19A.1

Appendix 3X

Initial Director’s Interest Notice

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 30/9/2001.

Name of entity ZYL Limited ABN 15 008 720 223

We (the entity) give ASX the following information under listing rule 3.19A.1 and as agent for the director for the purposes of section 205G of the Corporations Act.

Name of Director	John Beck
Date of appointment	12 December 2011

Part 1 - Director’s relevant interests in securities of which the director is the registered holder

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be disclosed in this part.

Number & class of securities

Nil

• See chapter 19 for defined terms.

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Appendix 3X Initial Director’s Interest Notice

Part 2 – Director’s relevant interests in securities of which the director is not the registered holder

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Name of holder & nature of Number & class of Securities interest

Note: Provide details of the circumstances giving rise to NIL the relevant interest.

Part 3 – Director’s interests in contracts

Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be disclosed in this part.

Detail of contract	TheShareRepurchaseandSubscription
	Agreement which relates to the acquisition of
	ordinary shares in Mbila Resources (Pty) Ltd by
	ZYL Limited.
Nature of interest	John is a beneficiary and one of several trustees
	of a family trust that has a 67% shareholding in
	Mineral Technologies International SA (Pty) Ltd
	(“MTI”). The trust is registered as a Discretionary
	Trust and John’s wife and daughters are also
	beneficiaries of the trust. The remaining 33% of
	MTI is held by a company unrelated to John and
	inwhichJohn has no financial interest.
Name of registered holder	MTI
(if issued securities)

• See chapter 19 for defined terms.

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No. and class of securities to which interest relates

MTI is currently the holder of 53% of the issued ordinary share capital of Mbila. In terms of the agreement referred to above, ZYL Limited has the option to purchase additional shares in Mbila from MTI and a portion of these shares will be paid for through the issuance, to MTI, of ordinary shares in ZYL Limited to the value of the AUD equivalent of USD 8,820,777. This share transaction will take place on the later of 1 May 2012 and the date of consent by the Minister of Mineral Resources in South Africa for the transfer of ownership of Mbila’s mineral rights. The pricing of the shares and hence the number of shares to be issued to MTI as part of this transaction is as follows:

• A) USD 4,009,444 worth of ZYL shares at the volume weighted average price based on the closing prices as quoted on the ASX for the 30 days prior to 15 September 2011.

• B) USD 4,811,333 worth of ZYL shares at the higher of:

  • a. The volume weighted average price based on the closing prices as quoted on the ASX for the 30 days prior to 15 September 2011.

  • b. The volume weighted average price based on the closing prices as quoted on the ASX for the 30 days prior to 15 December 2011.

• See chapter 19 for defined terms.

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