PROSPECT RESOURCES LIMITED — Capital/Financing Update 2018

Sep 10, 2018

ASX ANNOUNCEMENT 11 SEPTEMBER 2018

Prospect Receives US$10,000,000 Export Finance Facility

Prospect Resources Ltd (ASX: PSC) (“Prospect”, “the Company”) is pleased to announce that its 70% owned Zimbabwe subsidiary, Prospect Lithium Zimbabwe (Pvt) Limited, has received a US$10,000,000 Export Finance Facility from the Reserve Bank of Zimbabwe (the Facility) through CBZ Bank Limited.

The Facility carries an interest rate of 7.5% and a capital repayment holiday of 12 months, after which monthly capital repayments are to be made for 24 months.

The purpose of the Export Finance Facility is to foster the development of existing and new export focused businesses in Zimbabwe.

Funds drawn from the Facility are expected to be used to meet local costs on the mine development including the construction of the tailings facility, pre-strip of the mine site and building construction.

Prospect sees this loan as another building block in the financing of the Arcadia Lithium Mine and tangible evidence of the government’s support for the Arcadia Lithium Mine.

For further information, please contact:

Hugh Warner

Sam Hosack

Prospect Resources Prospect Resources Executive Chairman Managing Director Ph: +61 413 621 652 Ph: +61 420 407 890

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 | Email: info@prospectresources.com.au W: prospectresources.com.au

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ASX ANNOUNCEMENT

11 SEPTEMBER 2018

Loan Agreement – Summary of key terms

Borrower	Prospect Lithium Zimbabwe (Private) Limited (which is 70% owned by Prospect
	Resources Limited)
Lender	CBZ Bank Limited (a Zimbabwean company)
Loan facility type	RBZ Export Loan facility
Loan facility amount	US$10,000,000
Term	36 months
Interest	7.5% p.a. payable monthly in arrears.
Repayment of	The Borrower must repay the Loan in monthly instalments with the final
principal	instalment due on 31 May 2021. Notwithstanding this, the Borrower may repay all
	amounts outstanding at anytime prior to this date, without penalty.
Security	The Loan is secured by:
	•an unlimited guarantee given by PSC to the Lender for all sums due under the
	Loan Agreement;
	•the hypothecation to the Lender of the mining lease held by the Borrower;
	and
	•the assignment to the Lender of export proceeds from the sale of lithium by
	the Borrower (the Lender is entitled to receive the proceeds of any and all
	sales of lithium produced by the Borrower so long as any amount of the Loan
	remains outstanding, but this shall not exceed the Loan Amount).

Prospect Resources Limited | ACN 124 354 329

Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Phone: +61 8 9217 3300 | Email: info@prospectresources.com.au W: prospectresources.com.au

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