PROSPECT RESOURCES LIMITED — Capital/Financing Update 2011

Mar 21, 2011

==> picture [610 x 141] intentionally omitted <==

ASX/MEDIA RELEASE 22 MARCH 2011

ETHAN EXPANDS ZAMBIAN LEASES

On March 17, 2011, Perth based explorer, Ethan Minerals Limited (ASX: ETH) (“Ethan”) or (“the Company”) made a clarification announcement regarding the acquisition of a number of exploration and mining leases in Zambia.

The announcement stated that;

• 1. Ethan Minerals restructured its agreement of October 9, 2010 with Jazzman into a Joint Venture (JV) where upon, Ethan will obtain; 15 small mining and prospecting leases/licences in the Mkushi areas, General Kampumba area under PLLS 131 and Mansa areas
• 1. Under the restructured Jazzman agreement, all leases held by him or his interests will ultimately be transferred to Ethan’s wholly owned subsidiary, Allegra Mining Zambia Limited (“Allegra”). This is anticipated to occur over the next few weeks.

As outlined in that announcement, all of these newly issued leases will ultimately be transferred to Allegra Mining Zambia Limited (“Allegra”), under the agreement with Jazzman. Under this agreement certain payments will be made to Jazzman (as outlined in previous announcement) and Jazzman will receive a 25% interest in Allegra.

The new leases/permits are six in number are: Permit Number

1. 15498 2. 15499 3. 15500 4.15501 5.15508 6. 15509

All of these leases are for Manganese, Copper, Iron and Gold and are located in the Kafwa area of Zambia. The issue date of these permits was 1[st] March 2011 and the initial term for these permits is five years from that date. These are all Special Prospecting Permits and can be converted to Small Mining Leases in the future following applications and required payment. Ethan will continue to advise the market as new leases/permits are issued to Jazzman, all of which will be subject to the acquisition agreement.

For more information please 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 (“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 394,419 MT 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’. Ethan is currently targeting additional prospective opportunities for investment in Africa and Indonesia. For more information please visit www.ethanminerals.com.au

==> picture [391 x 780] intentionally omitted <==

Image 1.1 Map identifying the location of new leases/permits