PROSPECT RESOURCES LIMITED — Capital/Financing Update 2010

Nov 15, 2010

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ETHAN COMPLETES $2.1 MILLION EQUITY RAISING TO FAST TRACK INTERNATIONAL PROJECTS

Perth based explorer, Ethan Minerals Limited (ASX: ETH) is pleased to announce that the Company has completed a placement of 10,773,037 fully paid shares (equivalent to 15% of the pre placement capital and 13.04% of the post placement capital) at the price of $0.195 to raise $2.1 million. The majority of the funds raised will be applied to the completion of the recently announced lease acquisitions for the Manganese and Copper/Gold Projects in Zambia and the Mary Springs lead project in Western Australia, respectively. The placement was arranged by Macquarie Private Wealth. The placement will be to Auvex Resources Limited (“Auvex”), an unlisted public Perth based company. Auvex has similar interests in the Manganese Industry. It too is an emerging, miner and exporter of manganese ore. It currently has 4 projects within Australia.

The funds will be utilised to complete the formal registration of the Company’s lease holdings in Zambia as well as the purchase of mining equipment to restore the recently acquired Kampumba Manganese mine into production after the eviction of illegal Chinese miners. As advised on the 29[th] October, the Zambian Government records disclose that at least 650,000 MT of Mn has been extracted over the past 12 months from this mine. However, given the illegal nature of the operations, this figure could be higher. It is also understood that the mine was exporting substantial amounts of Manganese to China. This supply has now been stopped and Ethan has already been approached by a number of potential buyers to arrange off take agreements to restore these shipments.

Ethan will seek to arrange the most favourable results possible in negotiating the terms of pricing and finance for the off take agreements.

Ethan has now obtained quotations for the mining equipment required to operate the Kampumba Mine. As the Manganese deposits are essentially outcrops and shallow veins, the required mining equipment is typical earth moving equipment; such as bulldozers, excavators, crushers and haulage trucks. As previously advised, the required mining equipment is in stock in Johannesburg and can be on site and in operation within 14 days of payment.

In its Notice of Annual General Meeting, Ethan included a resolution enabling additional capital placements to be undertaken. The Directors of Ethan included this as a prudent option. However, if suitable off take arrangements can be secured, funding issues will be adequately addressed with cash flows can be generated from restoring the mining operations at the Kampumba Manganese Mine, further capital placements should not be necessary.

Ethan has also held meetings with the Transport Ministers of both Zambia and Tanzania, regarding the use of the railway that runs to the port of Dar Es Salaam, which is in close proximity to Ethan’s Manganese Projects. The Dar Es Salaam Railway has considerable capacity available, as it was formally used to rail copper ore from the Zambian copper belt to Dar Es Salaam. This copper is now smelted on site and refined into copper cathode. Subsequently, there is a surplus of rolling stock available and up to six rail movements of 2,500 MT could be accommodated per week. This will be formalised once the mining production schedule is finalised. An alternative transport solution is the use of trucks. Currently a large amount of Zambia’s imports are trucked from the port of Dar Es Salaam. These trucks leave Zambia empty; accordingly the opportunity for a favourable freight rate is possible due to the economics of back loading.

In commenting on the successful completion of this placement, Ken Fitzgerald, Executive Director, Ethan Minerals said,

“We are pleased to announce the successful raising of additional capital in order to further progress and develop our international Projects in Zambia and in Western Australia.”

Suite 24, 443 Albany Highway Victoria Park WA 6100 Australia

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

ETHAN MINERALS Limited ACN 124 354 329

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“This share placement should enable us to fast track the restoration of the Kampumba Mine to enable cash flow to result from the sales of Manganese. We look forward to updating our shareholders as we progress further in our endeavors to commercialise our offshore operations as well as the Australian projects”.

For more information please visit www.ethanminerals.com.au

Or 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)408 670 706

About Ethan Minerals Limited

Ethan Minerals Limited (“Ethan”) 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, focusing 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 Indicated plus Inferred Resource of 394,419 tonnes at 6.5%Pb has been quoted by Independent Consultants, MineMap. Ethan will also look to secure projects that have attractive 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. Ethan is currently targeting additional prospective opportunities for investment in Africa and Indonesia.

Suite 24, 443 Albany Highway Victoria Park WA 6100 Australia

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

ETHAN MINERALS Limited ACN 124 354 329