PROSPECT RESOURCES LIMITED — Capital/Financing Update 2009

Dec 8, 2009

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ETHAN MINERALS REVEALS ENCOURAGING RESULTS FOR BADDERA TAILINGS AND KB PROSPECTS

Following their recent listing on the Australian Securities Exchange, Ethan Minerals Limited (ASX: ETH) is pleased to report significant assay results from grid sampling of the Baddera tailings prospect, located adjacent to the historical Baddera Lead Mine, some 10 kilometres north of the town of Northampton, within EL66/53. Reconnaissance mapping and initial sampling also revealed encouraging reconnaissance assay results from the newly named KB Prospect located on what appears to be the northerly strike extension of the historical Valentino Prospect within E66/64.

RESULTS HIGHLIGHTS

• Encouraging assay results have been received from a number of tailings and rock chip samples from reconnaissance mapping for the Northampton Project

• Baddera tailing results suggest potential for re-treatment of the tailings to produce a base metals concentrate. Further definitive work is required

• Seven initial rock chip samples taken from the newly named ‘KB Prospect’ have returned significant base and precious metal results on a structure over 2,000 metres long and open

• Significant results from the Baddera tailings sampling includes:

  • 1.57% to 2.36% Lead

  • 26ppm to 0.13% Copper

  • 0.1% to 0.5% Zinc, and

  • 1.5g/t to 2.0g/t Silver

• Significant results from the KB Prospect reconnaissance sampling includes:

  • 1.47% to 21.7% Lead

  • 2.21% to 6.53% Copper

  • 0.8% to 8.0% Zinc, and

  • 1.5g/t to 371g/t Silver

ETHAN MINERALS Limited ACN 124 354 329

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

Suite 24, 443 Albany Highway Victoria Park WA 6100 Australia

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Baddera Tailings Dumps Results

During the course of regional field work in October and November 2009, Ethan Minerals’ technical staff reviewed the possibility of recovering substantial base metals mineralisation from historical tailings within the Northampton Mineral Field. One such location, the Baddera Lead Mine, is significant due to the well preserved tailings dumps, which are estimated to contain between 50,000 to 100,000 tonnes of tailings material. Several other tailings sites are known and will be sampled in due course.

Regularised grid sampling of the two significant Baddera tailings dumps culminated in 36 samples being taken by hand auger. The maximum depth achieved in the sampling process was just over 5 metres and has not defined the base of the tailings.

Each single sample was then composited into a composite sample by line and submitted to Ultra Trace Laboratories of Perth for geochemical test work to define base metal and precious metal content.

The tailings samples returned between 1.57% and 2.36% Lead and 1.5g/t and 2.0g/t Silver. Anomalous Zinc of up to 0.5% Zn and Copper of up to 0.13% Cu were also reported.

Further test work is underway on size fraction analysis to gain a better understanding of the potential economics of the tailings. Results for this work will be reported in late December 2009.

KB Prospect Reconnaissance Sampling

Highly anomalous results have been returned from all seven rock chip grab samples, whilst undertaking reconnaissance mapping of structures parallel to the Mary Springs Mine Structure.

The newly named KB Prospect is potentially the northerly strike extension to the historical Valentino Prospect located just to the north of the Kalbarri Road within E66/64 and west of the Mary Springs Mine Structure.

Mapping and sampling has revealed several historical pits and workings within two distinct areas on a structure approximately 2,000 metres long, north of the Valentino Prospect, a structure parallel to the Mary Springs Mine structure containing a JORC compliant resource. Initial sampling has returned the significant values of between 2.21% and 6.53% Copper; between 0.8% and 8.0% Zinc; between 1.47% and 21.7% Lead and between 1.5g/t and 371g/t [12 Ounces] Silver.

ETHAN MINERALS Limited ACN 124 354 329

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

Suite 24, 443 Albany Highway Victoria Park WA 6100 Australia

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In commenting on these significant results, Mr Ken Fiztgerald, Executive Director, Ethan Minerals said,

“These initial results are highly encouraging as they demonstrate that mineralisation is present on significant, kilometre scale structures, parallel to the Mary Springs Mine structure where Ethan has proven resources. This greatly increases the prospectivity of the licence area for base metal mineralisation.”

“Follow up work is planned post the drilling of the Mary Springs Prospect and will potentially include ground geophysics, trenching and subsequent reconnaissance drilling.”

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

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

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.

ETHAN MINERALS Limited ACN 124 354 329

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

Suite 24, 443 Albany Highway Victoria Park WA 6100 Australia