PROSPECT RESOURCES LIMITED — AGM Information 2010

Nov 30, 2010

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AGM Report
to Shareholders
30 November 2010
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Ken Fitzgerald's, Executive Director’s address to Shareholders 2010

Hello and Welcome to everyone here today.

I am pleased to welcome you to the 2010 Annual General Meeting of Ethan Minerals Limited.

As we fast approach the first anniversary of Ethan’s official listing on the Australian Securities Exchange, I feel it is appropriate to look back at Ethan’s first year and what has been achieved. Ethan has had a watershed year in terms of project advancement; we started off with our Project in Mary Springs and now are progressing two international projects in Africa and Indonesia. We have also had several board changes and have recently completed a successful share placement.

Before I begin, I would like to acknowledge our board members. Firstly, I would like to introduce you to our Chairman, Bill O’Neill, Executive Director, Julie Glanville and Company Secretary, Kim France. Our auditors, Deloittes and legal advisors, Allion Legal, are also present today. Thank you all for coming.

T: +61 8 9472 5502 F: +61 8 9362 2805 E: enquiries@ethanminerals.com.au

Suite 24, 443 Albany Highway Victoria Park WA 6100 Australia

ETHAN MINERALS Limited ACN 124 354 329

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THE MARY SPRINGS PROJECT

At the time of the Company’s listing; Ethan’s focus was primarily on the base metal exploration of four licences in Western Australia, surrounding and predominantly north of the town of Northampton, Western Australia. The Company’s lead prospect was the historical Mary Springs Mine Prospect, which encompassed a JORC Inferred Resource. In the past twelve months we have seen great progress at Mary Springs and following a recent Project Update, which detailed the completion of a reverse circulation drilling program and the successful negotiation of exploration access to almost the entire Mary Springs region, Ethan is commissioning an official work program. The aim of the work proposal will be to capture all available grade control and geological data from the historic underground operations at Northampton.

The result will be the most comprehensive database ever constructed at one of Australia’s premier base metal deposits. On completion it will enable us to better understand the mineralisation of the project.

Looking ahead, Ethan plans to begin the work program in December and have it completed by early February 2011. Following the successful completion of this program, Ethan intends to undertake feasibility studies in mine planning.

KAFWA MANGANESE PROJECT, ZAMBIA

In May this year, Ethan signed a Joint Venture agreement, via its wholly owned subsidiary ‘Allegra Mining Zambia Limited’ for the Kafwa Manganese Project, in Zambia. The Joint Venture has now progressed to Allegra signing for 100% of the Project. Allegra has also applied for another six mining leases in the Mukonshi area.

Allegra Mining also recently received formal consent from Chief Kasempa for the rights to carry out Mining Operations for the two large 1000 km[2] LPL licences for copper in the Mufweshi area; and in the Kasempe District in the Northwestern Province of Zambia. This also includes the two additional LPL licences for manganese, in the Mukonchi area and encompassing Kabanga area, with one mining license covering 400 km[2] and one covering 16 km[2] .

T: +61 8 9472 5502 F: +61 8 9362 2805 E: enquiries@ethanminerals.com.au

Suite 24, 443 Albany Highway Victoria Park WA 6100 Australia

ETHAN MINERALS Limited ACN 124 354 329

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Previous exploration companies which have operated in the area include Chartered Exploration, Zamanglo, Gencor and BHP Billiton. The next stage is to await the program of detailed testing currently being compiled for a JORC compliant announcement. We expect this to eventuate sometime in May 2011.

GOLD TIGER PROJECT, CENTRAL KALIMANTAN, INDONESIA

During 2010, Ethan established a wholly owned Indonesian subsidiary, PT Ethan Mining Celebes, to identify advanced mining opportunities in Indonesia. The first significant project to be identified was the Gold Tiger Project, where a Memorandum of Understanding was executed to enable PTEMC to perform a due diligence to verify the results of an independent Indonesian geological survey from 2006. As part of the MOU, PTEMC was required to furnish a refundable deposit of US$500,000, which was to be refunded if the information regarding the deposit did not correlate with the information as determined in the due diligence exercise. The Ethan Technical Team conducted their own test pit program and concluded that more detailed work is required to better understand the project’s potential.

The Ethan Board recently terminated the existing MOU and is currently in negotiations for a revised agreement covering the future development of the Project and/or repayment of the refundable deposit. PTEMC is also at an advanced stage of negotiating for other opportunities for gold and iron sands in Indonesia.

The Gunung Mas Project lies in Central Kalimantan near the Company’s Gold Tiger Project. Ethan commenced Due Diligence in October to determine the veracity of the existing data. First pass appraisal of the available data suggests that this mineralisation has similarities to many other deposits widely known in the region.

Ethan also recently concluded a reconnaissance exploration program, which revealed some encouraging results. In the short term, Ethan will seek to carry out further work to define targets for drilling.

T: +61 8 9472 5502 F: +61 8 9362 2805 E: enquiries@ethanminerals.com.au

Suite 24, 443 Albany Highway Victoria Park WA 6100 Australia

ETHAN MINERALS Limited ACN 124 354 329

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Ethan feels cautiously optimistic that all three projects are progressing as originally forecast. We have further developed our interests offshore, however we are still achieving our set milestones and this is reflected in the steady share price. Ethan also recently completed a placement of 10, 733, 037 fully paid shares at $0.195 to raise $2.1 million in capital. The funds will be applied to the completion of the lease acquisitions in Zambia and the work program at the Mary Springs lead project. We feel this is a significant step forward for the projects and we expect to see further results come through on the path to a Jorc resource.

Ethan has also recently gone through several board changes. Ethan is delighted to welcome Mr Bill O'Neill as Non-Executive Chairman of the Company. Mr O'Neill will undertake an active role in assisting in the further development of Ethan and overseeing the future financing of the Company. This role is expected to expand as the Company is now entering a phase of developing and commercialising its wide mining interests. Bill has provided consulting services to Ethan Minerals since 2009.

Kim France has recently taken over the position as our Company Secretary, following the resignation of Leonard Math. Graham Anderson also recently resigned as Chairman.

It is our intention to continue to vigorously pursue our desire to transition the Company from an exploration company into a producer, with a focus both locally and internationally. 2010 has been a watershed year for us in this regard, as we have expanded our operations offshore and laid the foundations for the future success of the company. Our key focus is to deliver shareholder value over the next few years by fully developing the projects currently underway and also keep an eye out for other opportunities that may catch our attention and fit within the Board’s charter.

My thanks go to our untiring and hardworking team for their determined efforts on behalf of shareholders and the Company.

If you have any questions please do not hesitate to ask. Thank you.

T: +61 8 9472 5502 F: +61 8 9362 2805 E: enquiries@ethanminerals.com.au

Suite 24, 443 Albany Highway Victoria Park WA 6100 Australia

ETHAN MINERALS Limited ACN 124 354 329