PROSPECT RESOURCES LIMITED — Capital/Financing Update 2014

Apr 27, 2014

ASX ANNOUNCEMENT 28 April 2014

Prospect Resources intersects high grade gold in maiden drilling program at Prestwood Gold Mine

Prospect Resources

ASX: PSC

HIGHLIGHTS

• Prospect Resources has intersected high grade gold from a maiden 6 hole-1281m drill program at Prestwood Gold Mine in Zimbabwe.

• Highlight Results from under the main gold reef include:

• BPC001: 9.23g/t Au over 1m, at 153m

An emerging southern African focused exploration company.

• BPC005: 9.94 g/t Au over 1m at 193m

• These results confirm that mineralised reef continues below and along strike of the historic gold workings.

• Five of six holes drilled intersected intact Main Reef down dip of existing workings to 195m below surface.

• Company to proceed with shaft rehabilitation and underground drilling program in near future.

• Company aims to bring the project rapidly into production as a high-grade gold mine.

• High-grade intercept of 12.3g/t Au over 1m within shallower shear zones confirms open pit development potential.

Southern African focused exploration company Prospect Resources Limited (ASX: PSC) (Prospect, the Company) is pleased to announce it has intersected high grade gold in its recently completed maiden drilling program at the Prestwood Gold Project in Zimbabwe.

The 6 hole-1,281 metre RC drilling program at the historic Prestwood Gold Mine was successful in achieving its two main objectives;

• Prove the continuity of the historically mined Main Gold Reef, at economic grades along strike and down dip.

• Identify parallel zones of mineralisation, particularly at the greenstone-monzonite contact, that can be projected to nearsurface, potential targets for open-pit operations.

Highlight Results included; BPC001

• Primary intercept of Main Reef: 9.23g/t Au over 1m, at 153m (130m vertical). Average grade after three re-assays of 7.86g/t Au

• Upper Reef: 1.1g/t Au over 1m at 120m

Capital Structure

Ordinary shares 529, 593,287 Options: 134,500,000

Board of Directors

Hugh Warner Executive Chairman

Harry Greaves Non-Executive Director

Gerry Fahey Non-Executive Director Zed Rusike Non-Executive Director

Andrew Whitten Company Secretary

Contact

Hugh Warner Executive Chairman Suite 6, 245 Churchill Ave. Subiaco WA 6008 Ph: +61 8 9217 3300 Fax: +61 8 9388 3006 E: info@prospectresources.com.au

W: prospectresources.com.au

• Sheared Monzonite contact: 1.1 g/t Au over 1m at 107m

BPC004

• Primary intercept of Main Reef: 2.73g/t Au over 1m, at 219m

• BPC005

• Primary intercepts of Main Reef: 4.11g/t Au over 1m, at 190m (175m vertical) and 9.94 g/t Au over 1m at 193m

Media & Investor Relations James Moses Mandate Corporate Ph: +61 (0) 420 991 574 E: james@mandatecorporate.com.au

BPC006

• Prestwood A Shear Zone: 12.28g/t Au over 1m, at 52m.

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

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ASX ANNOUNCEMENT 28 April 2014

Details of results from the drilling program are summarised in Table 1 (Appendix A).

Outcomes of Prestwood Drill Program

Prospect is delighted with the results of the drill program at the Prestwood Mine, which have helped validate its development plan to bring the project into production as a high grade gold mine in the near term. The Company now plans to proceed quickly with shaft rehabilitation and then underground drilling.

Significant points of note from the drill program are;

• The program confirms that the mineralised reef continues below the historic gold workings, and five of six holes drilled intersected intact Main Reef down dip of the existing workings, to 195 metres below surface.

• The Main Reef extends down dip to at least 6 Level (195m vertically), but is seemingly open ended. The Bucks Mine situated some 600m to the west is known to have been worked to at least 9 Level (300m).

• The Main Reef extends NE of the known workings, with a total strike length of > 75m, open ended to the NE.

• The Main Reef is highly variable in nature, being largely a shear zone of quartz veinlets and varying amounts of pyrite, arsenopyrite, pyrrhotite, galena and magnetite.

• The evidence of parallel mineralised zones, particularly the very subtle sheared monzonite contact is very encouraging. This is the same setting as the mineralisation at the producing Farvic Mine 4km to east.

• The presence of high grade intercepts (12.3g/t over 1m) within the shallower shear zone (that also hosts the Prestwood A mine) is also considered highly significant. They present an ideal target for potential larger disseminated deposits, amenable to open-cast extraction.

Schematic images of cross section of all drill holes are appended to this announcement (Appendix B).

About the Prestwood Gold Mine

The historic Prestwood Gold Mine is located approximately 112km south east of Bulawayo in Zimbabwe, and historically produced approximately 499kg of gold (approx. 16,000oz) at 33.1g/t. It is situated within an almost contiguous block of claims covering approximately 25km[2] of the gold bearing Gwanda Greenstone Belt. These claims cover more than nine historic gold mines.

The mine consists of multiple veins in greenstones at or close to the monzonite contact. The Company is of the view that it is particularly prospective as it lies in the same geological setting as the nearby Farvic Gold Mine, located 4km to the east. The significance of minerlisation being intersected at the contact of the greenstones and monzonites cannot be overstated. This minerlisation style is very subtle, supported by the fact there is no surface expression at all at the Farvic Mine. The known monzonite extends for over 5km of strike, within ground held by Prospect.

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 W: prospectresources.com.au

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ASX ANNOUNCEMENT 28 April 2014

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Figure 1: Prestwood Grid Plan projected over Quick Bird Satellite .

Boreholes BPC001 proved the continuity of the reef, beyond the existing 4 Level workings to the northeast, and BPC003 to BPC006 inclusive demonstrated the down dip continuity of the reef to at least 6 Level (195m vertical depth). BPC002 intersected shear hosted mineralisation, which is likely to have been affected by the geophysically interpreted SE-NW trending shears zone. The monzonite sub-outcrop is shown in blue crosses in Figure 1.

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

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ASX ANNOUNCEMENT 28 April 2014

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Figure 2: Geological Interpretation Projected over Magnetic Image (Analytical Signal).

The magnetic high areas represent monzonite at, or just under the surface (dark red /purple in Figure 2). The northern third of the area is also thought to be underlain by monzonite, covered with thicker residual soils. The SW-NE shearing which hosts the Bucks, Prestwood and Prestwood B deposits is readily apparent. The more subtle SE-NW direction is also thought to have significance for deposit location.

Prestwood Gold Mine Update

• Exploration head gear has been erected at the Prestwood shaft and dewatering has been completed to 2 Level.

• A recently completed ground magnetic survey has identified multiple parallel structures adjacent to the Prestwood Mine. A number of these are being mined artisanally.

• Shaft rehabilitation is underway and once complete, underground drilling for parallel reefs is planned. Evidence of parallel reefs is supported by the ground magnetic survey completed in January and the existing artisanal surface mining.

Future Plans

The results of the maiden drilling programme have provided Prospect confidence to proceed quickly with shaft rehabilitation at the Prestwood Mine, including re-establishment of mains power. Once rehabilitation is well advanced, in Q2, all lower levels of the mine will be mapped and sampled, and underground drilling to test the extent of the parallel and cross-cutting structures will commence.

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

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ASX ANNOUNCEMENT 28 April 2014

The Company is confident it will subsequently be possible to quickly bring Prestwood into production as its first high-grade gold mine. There are toll treating possibilities within 25km, which may facilitate near term production, without having to commit capital to building a reduction facility.

The evidence of mineralised parallels, cross shears and the monzonite contact is very exciting, particularly when considered with the geological model that has been refined by ground magentics. Future surface work will consist of Induced Polarisation surveys to define sub-outcropping disseminated halos, followed by a short hole RAB drilling program to identify broader disseminated targets. Tenders are currently being considered for this work.

==> picture [416 x 291] intentionally omitted <==

Figure 3: Positions of Current and Former Producers in the Gwanda Greenstone Belt .

A number of the mines lie at the contact zone of the monzonite intrusions and greenstones, which forms a highly prospective rheological contrast. The known strike extent of the monzonites is almost 6km.

ENDS

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 W: prospectresources.com.au

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ASX ANNOUNCEMENT 28 April 2014

For further information, please contact:

Hugh Warner Prospect Resources Executive Chairman Ph: +61 413 621 652 E: info@prospectresources.com.au

Harry Greaves Prospect Resources Non-Executive Director Ph: +263 772 144 669

Media and Investor Relations

James Moses Mandate Corporate Ph: +61 420 991 574 E: james@mandatecorporate.com.au

Ownership of the historic Prestwood Gold Mine - Conditional Agreement to Acquire Additional Mining Claims

As previously announced on 25 February 2014, the Company’s 70% owned subsidiary, Hawkmoth Mining and Exploration (Private) Limited (Hawkmoth) has entered into a conditional agreement to acquire certain mining claims (including claims covering the historic Prestwood Gold Mine) in consideration for US$400,000. Hawkmoth has acquired an exclusive 6 month option to acquire the claims in consideration for US$24,000. Hawkmoth may extend the options for a further 3 months by the payment of US$12,000.

During this exclusivity period, the Company may carry out mineral exploration and associated activities on the claims, including exploration in and around the historic Prestwood Gold Mine. Please refer to the Company’s announcement of 25 February 2014 for further details.

Competent Person’s Statement

The information in this announcement that relates to Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Mr Roger Tyler, a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy and The South African Institute of Mining and Metallurgy. Mr Tyler is the Company’s Senior Geologist. Mr Tyler has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Tyler consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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

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ASX ANNOUNCEMENT 28 April 2014

APPENDIX A

Table 1: Summary results of maiden drilling at Prestwood Gold Project

Hole	Target	Grade	Depth(m)	Reef	Comments
BPC001	Prestwood Main Reef ; 4 Level extension East	1.06g/t over 1m	107-108	Monzonite contact	Monzonite, no visible Mineralisation.
		1.12g/t over 1m	119-120	Upper Reef	Massive greenstone (py,po).
		7.63g/t over 1m	152-153	Prestwood Reef	Quartz reef (apy, py, po)
BPC002	Prestwood Main Reef; 4 Level extension West.	0.29g/t over 1m	131-132	Cross- Structure?	Massive greenstone, trace py
		0.42g/t over 1m	195-196	Cross- Structure?	Massive greenstone, trace py
		0.35g/t over 2m	215-216	Cross- Structure?	Quartz reef (py)
BPC003	Prestwood Main Reef; 5 Level	0.24g/t over 6m	15-21	Prestwood A - Shear Zone?	Sheared greenstones, quartz, py & apy.
		0.22g/t over 2m	186-188	Prestwood Reef	Quartz reef (py, apy)
		0.12g/t over 1m	192-193	Prestwood Reef	Quartz reef (py, apy)
BPC004	Prestwood Main Reef; 6 Level	0.82g/t over 2m	209-211	Prestwood Reef	Quartz reef ( diss apy)
		2.73g/t over 1m	218-219	Prestwood Reef	Meta-basalt (apy)
BPC005B	Prestwood Main Reef; 5 Level	0.77g/t over 1m	145-146	Monzonite Contact	Monzonite, no visible Mineralisation.
		0.78g/t over 1m	149-150	Monzonite Contact	Monzonite, no visible Mineralisation.
		4.11g/t over 1m	189-190	Prestwood Reef	Quartz reef (apy)
		9.94g/t over 1m	192-193	Prestwood Reef	Quartz reef, well mineralised with arsenopyrite.
BPC006	Prestwood Main Reef ; 4 Level extension East	12.28g/t over 1m	51-52	Prestwood A - Shear Zone?	Slightly sheared metabasalt with trace pyrite and pyrrhotite mineralisation
		0.93g/t over 1m	161-162	Prestwood Reef	Main reef: Quartz veining with arsenopyrite andpyrrhotite

• A total of 6 R.C holes were drilled by Prospect at Prestwood Mine.

 Drilling was carried out from the 24[th] of February to 22[nd] of March 2014 by Ox-drilling Company.

 The aim of the drilling was to test the extension of the Prestwood Main Reef down dip and along strike and also to test the structures picked by the ground magnetics of Jan/Feb 2014 by a contracting company (3D Geophysics).

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

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ASX ANNOUNCEMENT 28 April 2014

Location of Drill Holes

Hole	Eastings	Northings	Elevation	Dip	Azimuth	Depth
PBC1	729,393	7,672,290	933m	-68˚	136˚	190m
PBC2	729,340	7,672,240	947m	-67˚	134˚	232m
PBC3	729,368	7,672,298	930m	-65˚	145˚	210m
PBC4	729,345	7,672,290	935m	-66˚	147˚	220m
PBC5	729,337	7,672,278	934m	-62˚	132˚	220m
PBC6	729,389	7,672,312	928m	-65˚	139˚	209m

Analysis is by fire assay, undertaken at accredited laboratory Antech. Sampling and drilling procedures have been carried out to JORC Code reporting standards, and QAQC results are satisfactory. All coordinates in WGS84 format, and azimuth expressed as true direction, measured by Reflex down hole survey tool.

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

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ASX ANNOUNCEMENT 28 April 2014

APPENDIX B

==> picture [482 x 361] intentionally omitted <==

Figure 4: Schematic Drill Section of Boreholes BPC001 and BPC003.

The Main Reef is shown to extend to the theoretical 6 Level. The existence of other mineralised zones, including the monzonite contact is highly significant in the planned exploration for near surface deposits amenable to open cast extraction.

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 W: prospectresources.com.au

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ASX ANNOUNCEMENT 28 April 2014

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Figure 5: Schematic Drill Section of Borehole BPC004. The Main Reef, albeit of marginal grade at this point, is shown to extend to the theoretical 6 Level.

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 W: prospectresources.com.au

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ASX ANNOUNCEMENT 28 April 2014

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Figure 6: Schematic Drill Section of Borehole BPC005.

The Main Reef is shown to extend to the theoretical 6 Level.

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 W: prospectresources.com.au

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ASX ANNOUNCEMENT 28 April 2014

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Figure 7: Schematic Drill Section of Borehole BPC006.

The Main Reef albeit low grade here is shown to extend to beyond 5 Level.

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 W: prospectresources.com.au

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ASX ANNOUNCEMENT 28 April 2014

APPENDIX C

JORC TABLE 1 Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code Explanation	Commentary
Sampling techniques	 Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.  Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.  Aspects of the determination of mineralisation that are Material to the Public Report. • In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	• The samples were percussion chips generated from a Super Rock 5000 rig, using a double tube reverse circulation technique. • 3kg Samples were collected every metre in triplicate, in addition to a smaller sample retained for reference and logging.

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Criteria	JORC Code Explanation	Commentary
Drilling techniques	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	• A Superrock 5000 double tube RC rig was used with a 700cfm Doosan (Ingersoll Rand) 2013 compressor. 6m rods were used, and the hole air blasted to allow sample recovery via a cyclone every 1m.
Drill sample recovery	 Method of recording and assessing core and chip sample recoveries and results assessed.  Measures taken to maximise sample recovery and ensure representative nature of the samples. • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	• Chip samples were bagged directly from the cyclone, and immediately weighed, then riffle split. • Material seems largely homogenous, and no relationship has been detected between grain size and assayed grade.
Logging	 Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.  Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. • The total length and percentage of the relevant intersections logged.	• Chip samples have been geologically logged at 1m intervals, with data recorded in spreadsheet format using standardized codes. Sample weight, moisture content, lithologies, texture, structure, induration, alteration, oxidation and mineralisation were recorded. • The work is undertaken according to Prospect Resources’ standard procedures and practices, overseen by the CP. Prospect Resources believes that the level of detail and quality of the work is appropriate to support the current and any future exploration.
Quality of assay data and laboratory tests	 The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.  For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. • Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	• Initial screening of samples was undertaken at the Farvic Laboratory, using Atomic Absorption, after DIBK dissolution, with a lower limit of detection of 0.03ppm. All samples were however subsequently also assayed by fire assay, at accredited laboratory, Antech in KweKwe, Zimbabwe. • Standards and duplicates as described above were inserted blind into the batch within the same numbered sequence, prior to their submission to Antech. • Umpire checking is then undertaken at ALS Johannesburg, another accredited laboratory.

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

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Verification of sampling and assaying	 The verification of significant intersections by either independent or alternative company personnel.  The use of twinned holes.  Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data	• Prospect Resources’ Chief geologist has almost 30 years experience and was on site during most of the drilling and sample pre- preparation. The significant intersections were also shown to senior management at the neighbouring Jessie and Vubachikwe Mines. • All hard copies of data are retained at the Prospect Resource Exploration offices, attached to the Farvic Mine. All electronic data resides in Excel format on the office desktop, with back-ups retained on hard- ~~drives in a safe.~~
Location of data points	 Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.  Specification of the grid system used. • Quality and adequacy of topographic control.	• All collars and surrounding workings, were initially located with a hand held GPS, which was used to survey–in a 20m x 20m grid. The survey system is UTM, using a WGS84 datum and a Clarke 1880 spheroid. • All holes were down holes surveyed at 30m intervals using a Reflex tool, • Subsequently all the collars and old mine infrastructure, including the Prestwood Main Shaft were surveyed in to the National UTM grid using a total-station. (In ARC 1950 datum)
Data spacing and distribution	 Data spacing for reporting of Exploration Results.  Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied.	• The holes drilled lie on an approximate 25m x 25m grid. Samples were collected and logged at 1m intervals. • The density of bore hole data combined with underground sampling and mapping will allow at least an indicated resource to be declared once the work is complete.

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 W: prospectresources.com.au

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Criteria	JORC Code Explanation	Commentary
Orientation of data in relation to geological structure	 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	• A ground magnetic survey was recently completed prior to the drilling programme, which established a series of cross cutting shears, which are central to the geological model. • One of these shears host the Main Reef previously mined at the Prestwood Mine in the 1960’s. • Prospect Resources does not believe that any sample bias has been introduced which could have a material effect on the resource model, particularly given
Sample security	• The measures taken to ensure sample security.	• The chain of custody of samples is maintained by Prospect Resources. • The Prestwood Project lies within 3km of the Farvic Mine, whose security personnel guarded the drill site 24 hours a day. All samples were transported to the Farvic Exploration pre-preparation laboratory every 3 to 4 hours by the rig geologist.. The 150g milled charge packets produced by the lab were subsequently transported in sealed boxes to the Antech laboratory by truck company truck, accompanied by a Prospect Resources technician.
Audits or reviews	• The results of any audits or reviews of sampling techniques and data	• The mineralised intersections have been shown to personal from two neighbouring mines; Jessie and Vubachikwe.

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 W: prospectresources.com.au

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Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code Explanation	Commentary
Mineral tenement and land tenure status	 Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area	• The Prestwood Project is covered by a series of extant Mining Claims held under Farvic Consolidated Mines for Prospect Resources. The drilling grid lies specifically within claim numbers ; GA36972 and GA33269 • These claims have recently been inspected by the local Department of Mines (Gwanda), and copies of these inspection certificates are available from Prospect Resources or the Department on request.
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties	• No known previous exploration has been undertaken. Channel chip sampling was however undertaken at the old underground workings in the late‘40s. The results are recorded on surviving mine plans.
Geology	• Deposit type, geological setting and style of mineralisation.	• Steeply dipping shear and vein hosted lode gold deposits, associated with pyrite, pyrrhotite and arsenopyrite. These structures lie at the contact between meta- basalts and monzonite intrusions of the Gwanda Greenstone Belt, in a similar fashion to the neighbouring producing Farvic Mine.
Drill hole Information	 A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	• See Appendix A

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

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Dataaggregation methods	 In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.  Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. • The assumptions used for any reporting of metal equivalent values should be clearly stated.	• A statistically determined cut-off grade will be applied once a resource is declared on completion of the programme.
Relationship between mineralisation widths and intercept lengths	 These relationships are particularly important in the reporting of Exploration Results.  If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).	• The widths specified are down hole widths, though the holes were angled to intersect the main reef approximately perpendicularly. The dip of the reef was fairly confidently estimated due to the proximity of the accessible Prestwood Main Shaft, and old underground plans.
Diagrams	• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	• See attachment

Appendix I - Hole Summary

Hole	**Eastings **	**Northings **	Elev	Dip	Azimuth	Depth
PBC1	729,393	7,672,290	933m	-68˚	136˚	190m
PBC2	729,340	7,672,240	947m	-67˚	134˚	232m
PBC3	729,368	7,672,298	930m	-65˚	145˚	210m
PBC4	729,345	7,672,290	935m	-66˚	147˚	220m
PBC5	729,337	7,672,278	934m	-62˚	132˚	220m
PBC6	729,389	7,672,312	928m	-65˚	139˚	209m

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

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Appendix II – Drill Hole Plan

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Criteria	JORC Code Explanation	Commentary
Balanced reporting	• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	• Not applicable, all results have been reported.
Other substantive exploration data	• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	• The drilling grid lies within an approximately 1.2km x 700m grid that was mapped in detail, and surveyed by ground magnetics. This survey was undertaken by independent consultant 3D Exploration of Gaborone, Botswana. • The results correlated well with the 4 year old airborne data, and geological observations. Areas underlain by greenstones and monzonites were well delineated In addition the pervasive SW-NE shearing, with a more subtle SE-NW trends were identified. • The geological setting is very similar to that at the adjacent Farvic mine, where Prospect Resource geologists have been providing technical input for a number of years.
Further work	 The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive	• The company intends to complete the pumping out of the old Main Shaft, and then based on these positive results to begin extending the old 2 – 4 levels. In addition the shaft will be deepened to the now-drilled 5 level. • Further geophysics; IP and ground penetrating radar is planned in the vicinity, to target parallel structures, prior to a shirt hole drilling programme in Q3.

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 W: prospectresources.com.au

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ASX ANNOUNCEMENT 28 April 2014

Section 3 Estimation and Reporting of Mineral Resources (Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

Criteria	JORC Code Explanation	Commentary
Database integrity	 Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes. • Data validation procedures used	• All data had been input by Prospect Resources Database Manager, and verified by the CP. _• _
Site visits	 Comment on any site visits undertaken by the Competent Person and the outcome of those visits. • If no site visits have been undertaken indicate why this is the case.	• The CP visited the drill numerous times daily during the programme. _• _
Geological interpretation	 Confidence in (or conversely, the uncertainty of ) the geological interpretation of the mineral deposit.  Nature of the data used and of any assumptions made.  The effect, if any, of alternative interpretations on Mineral Resource estimation.  The use of geology in guiding and controlling Mineral Resource estimation. • The factors affecting continuity both of grade and geology	• The geological setting is very similar to the nearby Farvic Mine, where all the Prospect Resources Geologists, including the CP have worked. • The reefs are formed in shears at the contact between the greenstones (metabasalts) and monzonites, due to rheological contrasts. • Airborne radiometrics and magnetics, coupled with the recently completed ground magnetic survey has seemingly delineated sub-outcropping areas of monzonite (magnetic, with high background radiation) against the non-magnetic greenstones. • The best developed ore deposits appear to be formed at this lithological contact, where cut by SW- NE shears, and occasional conjugate fractures.
Dimensions	• The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.	• The drilling has increased the known strike length of the Prestwood Main Reef to over 75m and equally has shown that down dip, it is open ended below 195m depth (theoretical 6 level).

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

W: prospectresources.com.au

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ASX ANNOUNCEMENT 28 April 2014

Estimation and modelling techniques	 The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.  The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.  The assumptions made regarding recovery of by- products.	• Not applicable

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

W: prospectresources.com.au

Page 22 of 25

ASX ANNOUNCEMENT 28 April 2014

Criteria	Explanation
Estimation and modelling techniques (continued)	• Not applicable
Moisture	• Not applicable
Cut-off parameters	• Not applicable
Mining factors or assumptions	• Not applicable
Metallurgical factors or assumptions	• Not applicable
Environmental factors or assumptions	Not applicable
Bulk density	Not applicable
Classification	• Not applicable
Audits or reviews.	• Not applicable
Discussion of relative accuracy/ confidence	• Not applicable

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

W: prospectresources.com.au

Page 23 of 25

ASX ANNOUNCEMENT 28 April 2014

Section 4 Estimation and Reporting of Ore Reserves (Criteria listed in section 1, and where relevant in sections 2 and 3, also apply to this section.)

	section.)
Criteria	Explanation
Mineral Resource estimate for conversion to Ore Reserves	• Not applicable
Site visits	• Not applicable
Study status	• Not applicable
Cut-off parameters	• Not applicable
Mining factors or assumptions	• Not applicable
Metallurgical factors or assumptions	• Not applicable
Environmental	• Not applicable
Infrastructure	• Not applicable
Costs	• Not applicable
Revenue factors	• Not applicable

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

W: prospectresources.com.au

Page 24 of 25

ASX ANNOUNCEMENT 28 April 2014

Market assessment	• Not applicable
Economic	• Not applicable
Social	• Not applicable
Criteria	Explanation
Other	• Not applicable
Classification	• Not applicable
Audits or reviews	• Not applicable.
Discussion of relative accuracy/ ~~id~~	• Not applicable
~~confence~~

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

W: prospectresources.com.au

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