PROSPECT RESOURCES LIMITED — Capital/Financing Update 2015

Jan 6, 2015

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

7 January 2015

The Manager Company Announcements Australian Securities Exchange Level 5, 20 Bridge Street SYDNEY NSW 2000

By E-Lodgement

Dear Sirs

Cleansing notice under section 708A of the Corporations Act 2001 (Cth)

As announced on 7 January 2015, Prospect Resources Limited ( Company ) has completed the placement (utilising part of the shareholder approved capacity obtained on 10 November 2014) of 6,915,000 fully paid ordinary shares ( Shares ) in the Company to a non-related sophisticated investor in consideration for $103,725.

The Company gives this this notice ( Notice ) under section 708A(5)(e) of the Corporations Act 2001 (Cth) ( Corporations Act ) and states the following:

1. The Shares were issued without disclosure to investors under Part 6D.2 of the Corporations Act.

2. As at the date of this Notice, the Company has compiled with:

   • a. the provisions of Chapter 2M of the Corporations Act as they apply to the Company; and

   • b. section 674 of the Corporations Act.

3. As at the date of this Notice, there is no excluded information for the purposes of sections 708A(7) and 708A(8) of the Corporations Act.

For more information, please contact the undersigned on (+61 2) 8072 1400.

Yours faithfully

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Andrew Whitten Company Secretary