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PROSPECT RESOURCES LIMITED Capital/Financing Update 2016

Jun 5, 2016

65617_rns_2016-06-05_945cb811-670d-461f-bebb-b46318f6837c.pdf

Capital/Financing Update

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6 June 2016

Mr Mauro Piccini Australian Securities Exchange Level 40, Central Park 152-158 St Georges Terrace PERTH WA 6000

By Electronic Lodgement

Dear Sir/Madam

Notice under ASX Listing Rule 3.10.5A

As announced by Prospect Resources Limited ( Company ) today, the Company has raised approximately $2,674,178 (before costs) via a placement of 191,012,751 fully paid ordinary shares ( New Shares ) to non-related institutional and sophisticated investors ( Placement ).

The Company issued the New Shares by utilising its placement capacity under ASX Listing Rules 7.1 and 7.1A. As such, the Company provides the following supplementary information that is required by ASX Listing Rule 3.10.5A.

(a) The dilution to the existing holders of fully paid ordinary shares is as follows: ordinary shares is as follows:
Description Number of shares Dilution
Fully paid ordinary shares prior to issue of New Shares 1,046,115,545 n/a
Fully paid ordinary shares issued under ASX Listing Rule 7.1 92,042,499 7.44%
Fully paid ordinary shares issued under ASX Listing Rule 7.1A 98,970,252 8.00%
  • (b) The New Shares were issued to non-related institutional and sophisticated investors invited to participate in the Placement. The New Shares were issued for cash consideration, and raised approximately $2,674,178 (before costs) for the Company. The Company did not consider that a pro-rata issue was appropriate at this stage as a pro-rata rights issue was recently conducted by the Company in April 2016.

  • (c) The issue of New Shares under the Placement not underwritten.

  • (d) Brokerage fees of 6% (plus GST) of the amount raised were incurred by the Company in connection with the Placement. DJ Carmichael acted as corporate advisor and lead manager to the Placement.

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: [email protected]

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For further information, please contact:

Andrew Whitten Company secretary Prospect Resources Limited (Aus) Ph: +61 2 8072 1400

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: [email protected]