PROSPECT RESOURCES LIMITED — Capital/Financing Update 2014

Aug 20, 2014

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ASX Announcement

ASX Code: PSC

21 August 2014

Completion of Share Placement at 1.5c per Share to Raise US$1,000,000

Prospect Resources Limited (“Prospect” or “the Company”) is pleased to announce that it has raised US$1,000,000 (A$1,078,748) via the issue of approx. 71.9m shares at 1.5c each.

The share placement is to Armoured Fox Capital (Pty) Ltd, an investment vehicle represented by Sithembiso Mthethwa and Manana Nhlanhla who are successful South African business people.

The directors are pleased to secure Armoured Fox Capital (Pty) Ltd as a major shareholder. It is a South African based company with a regional outlook and as such they understand the growing opportunities in Zimbabwe.

Litigation Update

On 29 November 2013 the Company announced that it had commenced proceedings against a Singapore-based consortium in relation to the subscription for $3.9 million of shares. On 15 August 2014 the Court dismissed Prospect’s application and ordered that it pay the defendants’ costs. Prospect considers that its downside costs exposure is less than $100,000. Prospect is considering the judgment and its options, including a possible appeal.

Future Growth

The Company has an active 2014 exploration and development programme.

Whilst we are disappointed to lose the litigation proceedings, we intend to put this set back behind us and focus on the positive development of our assets and growth in the value of the Company.

Contact Details

For further information, please contact:

Hugh Warner Harry Greaves Executive Chairman Non-Executive Director Prospect Resources Limited (Aus) Prospect Resources Limited (Zim) Ph: +61 413 621 652 Ph: +263 772 144 669

Prospect Resources Limited | ACN 124 354 329

Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Phone: +61 8 9217 3300 | Fax: +61 8 9388 3006

Website: prospectresources.com.au | Email: info@prospectresources.com.au