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PROSPECT RESOURCES LIMITED Capital/Financing Update 2018

Jan 30, 2018

65617_rns_2018-01-30_f18ff7d8-6aa1-466e-8e55-d453f8344477.pdf

Capital/Financing Update

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ASX ANNOUNCEMENT

Prospect raises $10m in oversubscribed Placement

Highlights

Prospect raises $10m via the issue of 166m shares at 6c per share (“ Placement ”).
Hunter Capital Advisors Pty Ltd acted as sole lead manager to the Placement.
Proceeds of the Placement to be used to:
- accelerate the development of the Arcadia Mine;
- progress exploration at the Good Days Lithium Project (under option);
- investigate and possibly acquire additional lithium and cobalt projects; and
- supplement general working capital.

Prospect Resources Limited ( ASX: PSC ) (“ Prospect ” or the “ Company ”) is pleased to announce the completion of an oversubscribed placement of 166m shares at an issue price of 6c per share to institutional and sophisticated investors, to raise $10m (before costs).

The proceeds from the Placement are expected to enable Prospect to accelerate the development of the Arcadia Lithium Project and take advantage of the support offered by the new Zimbabwe Government under its Rapid Response Initiative. We look forward to attending and promoting Prospect and our Arcadia Lithium Project at the African Mining Indaba in Cape Town next week.

The Placement will be completed by utilising the Company’s existing capacity under ASX Listing Rules 7.1 (6,253,838 shares) and 7.1A (160,412,829 shares). The issue price of 6 cents represents a discount of 5.3% to the 15 day VWAP of the Company’s shares.

Hunter Capital Advisors Pty Ltd has acted as sole lead manager to the issue which is scheduled to settle in full on Monday, 5 February 2018.

For further information, please contact:

Hugh Warner Prospect Resources Executive Chairman Ph: +61 413 621 652