PROSPECT RESOURCES LIMITED — Capital/Financing Update 2009

Dec 16, 2009

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ETHAN MINERALS COMMENCES DRILL PROGRAM AT MARY SPRINGS PROSPECT, NORTHAMPTON PROJECT - W.A.

Perth based explorer, Ethan Minerals Limited (ASX: ETH ) is pleased to announce that the Company has now commenced a program of reverse circulation drilling at the Mary Springs Prospect, Northampton Project, Western Australia, following the receipt of all necessary government permits. The commencement of drilling at the Company’s key tenement signals an exciting period of development for Ethan Minerals, following their recent listing on the Australian Securities Exchange in early December.

Mining in the Northampton field first commenced in the mid-1800s and the district has been host to several small scale operations over the years. Ethan Minerals has successfully amalgamated a substantial lease holding in the Northampton district and it believes that the district has the potential to host significant economic base metal deposits.

Drilling commenced at the Mary Springs Prospect on the 14 December 2009, where Ethan Minerals has a JORC defined resource of 145,000 tonnes at 11.5% lead, with the target of defining at least 30,000 tonnes of lead at a similar grade through the current program. Ethan Minerals has engaged the services of Foremost Drilling Ltd to act as drilling contractor for the drilling program, with the aim of completing approximately five drill holes prior to the Christmas 2009 break.

The drilling program is staged, with the first stage consisting of some 1,500 metres of reverse circulation drilling. Further drilling is anticipated following the receipt of successful results from the initial campaign and at this stage is scheduled for early January 2010.

Mary Springs Prospect is located approximately 80 kilometres north of Northampton and is part of the Northampton Geological Complex. Rocks of the Northampton Complex are dominated by granites, migmatites and granulites. The Mary Springs Prospect is located around old underground workings and is considered the Company’s priority target.

In commenting on this significant milestone for the Company, Ken Fitzgerald, Executive Director of Ethan Minerals said,

“The Ethan Minerals Board is excited about the commencement of the drilling program as a milestone and historic event for the Company and firmly believes that the district has the potential to host significant economic base metal deposits.”

“We look forward to updating the market with further progress on the development and the results from this drilling program.”

ETHAN MINERALS Limited ACN 124 354 329

Suite 24, 443 Albany Highway T: +61 8 9472 5502 Victoria Park WA 6100 F: +61 8 9362 2805 Australia E: ethanminerals@bigpond.com

For more information please visit the Company website, www.ethanminerals.com.au

For more information contact:

Mr Ken Fitzgerald Mr Rod North Executive Director Managing Director Ethan Minerals Limited Bourse Communications Pty Ltd Tel: +61 8 9472 5502 Tel: +61 3 9510 8309 Mob: +61 (0)417 099 167 Mob: +61 (0)408 670 706

About Ethan Minerals Limited

Ethan Minerals Limited successfully listed fully oversubscribed on the ASX on the 4[th] December, 2009 having raised over $5 million dollars. Ethan is an Australian-based exploration company focused on the successful discovery and development of quality base and precious metals deposits in Western Australia, focussing initially on its Northampton Project north of Geraldton.

The Company’s strategy is to develop its lead project, the Mary Springs Project, where a JORC compliant Inferred Resource of 145,000 tonnes at 11.5%Pb has been quoted by Independent Consultants, MineMap. Ethan will also look to secure projects that have attracted project economics or prior exploration activity offering a robust exploration model and are thereby essentially ’drill ready’. Utilising advanced exploration models, coupled with proven analytical and geophysical techniques Ethan will identify and delineate additional drill targets within the Northampton Project in an effort to develop new, commercial base metal projects.

The information in this update that relates to exploration results is based on information compiled by Mr. Nigel Ferguson who is a Member of the Australasian Institute of Mining and Metallurgy. Mr. Ferguson, a Non Executive Director of the Company, has sufficient relevant experience in respect of the style of mineralization, the type of deposit under consideration and the activity being undertaken to qualify as a Competent Person within the definition of the 2004 Edition of the AusIMM’s “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Ferguson consents to the inclusion in this report of the matters that are based on this information in the form and context in which it appears.