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PROSPECT RESOURCES LIMITED Capital/Financing Update 2011

Feb 28, 2011

65617_rns_2011-02-28_dbe55d61-10e1-4181-8619-f6becb9d51bb.pdf

Capital/Financing Update

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25 February 2011

Mr S Bednarczyk Australian Securities Exchange Level 8, Exchange Plaza 2 The Esplanade Perth, WA, 6000

By email: [email protected]

Clarification of Request for Voluntary Suspension

Ethan Minerals Limited refers you to the recent request for voluntary suspension dated 21 February 2011 and provides the following additional information:

  1. On 16 February 2011 the Company requested a trading halt in regard to a possible acquisition of assets in Zambia. The Company was not able to lift the trading halt and negotiations regarding the acquisition are continuing.

  2. The Company requested that the suspension be until further notice, however, Directors are hopeful of an early resolution.

  3. The Company expects the announcement regarding the acquisition will end the suspension.

  4. The Company is not aware of any reason why its securities should not be suspended.

Yours sincerely,

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Ken Fitzgerald Executive Director

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