PROSPECT RESOURCES LIMITED — Capital/Financing Update 2010

Aug 9, 2010

10 August 2010

Company Announcements Office ASX Limited

EXERCISE OF UNLISTED OPTIONS

Please find attached an Appendix 3B for the exercise of unlisted options that were allotted on 15 July 2010. This Appendix 3B was lodged late due to an administration oversight.

Yours sincerely,

LEONARD MATH Company Secretary

Suite 24, 443 Albany Highway Victoria Park WA 6100 Australia

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

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

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 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.

Name of entity

ETHAN MINERALS LIMITED

ABN

30 124 354 329

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of +securities issued or to be issued

Fully paid ordinary shares

• 2 Number of +securities issued or to be issued (if known) or maximum number which may be issued
• 3 Principal terms of the + securities (eg, if options, exercise price and expiry date; if partly paid + securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)

30,000

Fully paid ordinary shares

4	Do the +securities rank equally in all	Yes
	respects from the date of allotmentwith an existing +class of quoted+securities?
	If the additional securities do notrank equally, please state:•the date from which they do•theextenttowhichtheyparticipate for the next dividend,(inthecaseofatrust,distribution) or interest payment•the extent to which they do notrankequally,otherthaninrelation to the next dividend,distribution or interest payment
5	Issue price or consideration	$6,000
6	Purpose of the issue(If issued as consideration for theacquisition of assets, clearly identifythose assets)	Exercise of unlisted options at $0.20
7	Dates of entering +securities intouncertificated holdings or despatchof certificates	15 July 2010
		Number	+Class
8	+classNumberandofall+securitiesquotedonASX(including the securities in clause 2	52,207,750	FullyPaidShares	Ordinary

if applicable)*

+ See chapter 19 for defined terms.

		Number	+Class
9	+classNumberandofall	18,862,500	Fully Paid Ordinary Shares
	+securities not quoted on ASX(including the securities in clause 2if applicable)*	9,701,500	Exercisable at $0.20 expiring18 October 2012
		857,500	Exercisable at $0.20 expiring 5November 2013
		1,000,000	Exercisable at $0.23 expiring 3December 2011
		1,402,000	Exercisable at $0.23 expiring 8December 2011
		2,000,000	Exercisable at $0.23 expiring30 July 2012
10	Dividend policy (in the case of atrust, distribution policy) on the	Not applicable

Part 2 - Bonus issue or pro rata issue

increased capital (interests)

11	Issecurityholderapproval-required?
12	Is the issue renounceable or non-renounceable?
13	Ratio in which the +securities will-be offered
14	+Class of +securities to which the-offer relates
15	+Recorddatetodetermineentitlements-
16	Will holdings on different registers-(or subregisters) be aggregated forcalculating entitlements?
17	Policy for deciding entitlements in-relation to fractions

18	Names of countries in which theentity has +security holders who willnot be sent new issue documents	-
	Note: Security holders must be told how theirentitlements are to be dealt with.
	Cross reference: rule 7.7.
19	Closingdateforreceiptofacceptances or renunciations	-
20	Names of any underwriters	-
21	Amount of any underwriting fee orcommission	-
22	Names of any brokers to the issue	-
23	Fee or commission payable to thebroker to the issue	-
24	Amount of any handling fee payableto brokers who lodge acceptancesorrenunciationsonbehalfof+security holders	-
25	Iftheissueiscontingenton+security holders' approval, the dateof the meeting	-
26	Date entitlement and acceptance	-
	form and prospectus or ProductDisclosure Statement will be sent topersons entitled
27	If the entity has issued options, andthe terms entitle option holders toparticipate on exercise, the date onwhich notices will be sent to option	-
	holders
28	Date rights trading will begin (ifapplicable)	-
29	Date rights trading will end (ifapplicable)	-
	How do +
30	security holders sell theirentitlementsinfullthroughabroker?	-

+ See chapter 19 for defined terms.

• 31 How do + security holders sell part of their entitlements through a broker and accept for the balance?
• 32 How do + security holders dispose of their entitlements (except by sale through a broker)?

33 +Despatch date -

-

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

• 35 If the + securities are +equity securities, the names of the 20 largest holders of the additional + securities, and the number and percentage of additional + securities held by those holders
• 36 If the + securities are +equity securities, a distribution schedule of the additional + securities setting out the number of holders in the categories 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over

37 A copy of any trust deed for the additional + securities

Entities that have ticked box 34(b)

• 38 Number of securities for which
• 39 Class of + securities for which quotation is sought
• 40 Do the + securities rank equally in all respects from the date of allotment with an existing +class of quoted + securities?

If the additional securities do not rank equally, please state:

• the date from which they do
• the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment
• the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment
• 41 Reason for request for quotation now

Example: In the case of restricted securities, end of restriction period

(if issued upon conversion of another security, clearly identify that other security)

		Number	+Class
42	Number and +class of all +securitiesquotedonASX(includingthesecurities in clause 38)

Number	of	securities	for	which
+quotation is sought

+ See chapter 19 for defined terms.

Quotation agreement

• 1 +Quotation of our additional +securities is in ASX's absolute discretion. ASX may quote the +securities on any conditions it decides.
• 2 We warrant the following to ASX.
  • The issue of the +securities to be quoted complies with the law and is not for an illegal purpose.
  • There is no reason why those +securities should not be granted +quotation.
  • An offer of the + securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any +securities to be quoted and that noone has any right to return any +securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the +securities be quoted.
• If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the +securities be quoted.
• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.
• 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before +quotation of the +securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

(Company secretary)

Sign here: ........................................................ Date: 10 August 2010

Print name: Leonard Math

== == == == ==

+ See chapter 19 for defined terms.