PROSPECT RESOURCES LIMITED — Capital/Financing Update 2014

Jan 12, 2014

ASX Code: PSC

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ASX Announcement

13 January 2014

Placement to Investors

Prospect Resources Limited (“Prospect” or “the Company”) is pleased to announce that it has entered into placing agreements to raise A$1,000,000 via the issue of 100m shares at 1c each.

Subscribers include an Africa focussed private equity fund MBM Capital Partners LLP for A$750,000 and Sirius Trustees Ltd for A$100,000 respectively. These two subscription agreements are unconditional. Family interests associated with a director, Hugh Warner, have agreed to subscribe for A$150,000. The share subscriptions by entities associated with Hugh Warner are subject to shareholder approval.

The funds raised will be used:

1. For general working capital;

2. To fund exploration on the Company’s Zimbabwe gold assets; and

3. To progress the previously announced (29 November 2013) litigation against Alexander Molyneux, Blumont Group Ltd and Pacific Advisers Pte Ltd in relation to a subscription for A$3.9m worth of shares in Prospect at an issue price of 1.2c per share.

The Company is planning an active 2014 and we do not intend for the above mentioned litigation to distract us from the job of developing our mineral assets in Zimbabwe and Australia.

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