PROSPECT RESOURCES LIMITED — Capital/Financing Update 2016

Jul 27, 2016

ASX ANNOUNCEMENT

Completion of $16m Fund Raising

• Prospect has raised $16m on the following basis:

  • Following receipt of shareholder approval on 22 July 2016, Prospect completed its $14m placement via the issue of 280m shares at 5c per share; and

  • Today, Prospect has completed its $2m placement from clients of DJ Carmichael Pty Limited via the issue of 40m shares at 5c per share.

• Placing price of 5c is at a significant premium to the 20 day VWAP of 3.6c (calculated up to 19 July 2016, source: IRESS).

• Proceeds of the placement to be used to:

  • fast track drilling at the Arcadia Lithium deposit, approx. 35kms north east of Harare;

  • accelerate mine design, plant design and feasibility studies for the Arcadia Lithium deposit;

  • enable the Company to order long lead time items of plant for the Arcadia Lithium deposit;

  • fast track exploration at the God’s Gift Lithium deposit;

  • accelerate gold production at the Gwanda East gold camp, south east of Bulawayo;

  • provide the Company with capacity to make additional strategic acquisitions, particularly within the lithium, graphite and cobalt sectors; and

  • supplement general working capital.

For further information, please contact: Hugh Warner Prospect Resources Executive Chairman Ph: +61 413 621 652

Harry Greaves Prospect Resources Executive Director

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 W: prospectresources.com.au

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