PROSPECT RESOURCES LIMITED — Capital/Financing Update 2014

Jan 23, 2014

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24 January 2014

ASX Market Announcements Office Australian Securities Exchange Level 8, Exchange Plaza 2 The Esplanade Perth WA 6000

By Electronic Lodgement

Information Required Under ASX Listing Rule 3.10.5A

Further to the Appendix 3B released on 23 January 2014 for the issue of 95,000,000 fully paid ordinary shares, Prospect Resources Limited (Company) provides the information required under ASX Listing Rule 3.10.5A as follows:

• (a) Dilution to existing shareholders:

The dilutive effect of the Placement on existing shareholders is as follows:

Placement issue under Listing Rule 7.1 (65,188,993 shares)	12.31%
Placement issue under Listing Rule 7.1A (29,811,007 shares)	5.63%
Total Dilutionas aresult ofthePlacement	17.94%

Further details of the approximate percentage of the issued capital post the placement held by the pre-placement shareholders and new shareholders are as follows:

Pre-placement securityholderswho didnot participateinthe placement	100%
Pre-placement security holders who did participate in the placement	0%
Participants in the placement who were not previously security holders	100%

• (b) The Company issued shares under ASX Listing Rule 7.1A as it considered the Placement as the most efficient and expedient method for raising the funds required to achieve its stated objectives, and

• (c) No underwriting arrangements were in place for the placement, and

• (d) No other fees or costs were incurred in connection with the issue.

Yours faithfully

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Andrew Whitten Company Secretary

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