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PROSPECT RESOURCES LIMITED Capital/Financing Update 2020

Jul 23, 2020

65617_rns_2020-07-23_d9b0d380-634e-48af-a304-25153117d2fb.pdf

Capital/Financing Update

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FLOTATION TESTWORK ALMOST DOUBLES ULTRA-LOW IRON PETALITE RECOVERY

Highlights

  • Locked Cycle petalite flotation testwork successfully performed on Main Pegmatite ore;

  • Petalite flotation is expected to significantly increase Arcadia’s life of mine ultra-low iron petalite recovery by over 94% compared to November 2019 DFS;

  • Confirms high grade, ultra-low iron petalite concentrate (>4.1% Li2O, 0.02%-0.05% Fe2O3).

African lithium developer, Prospect Resources Ltd (ASX: PSC, FRA:5E8) (“ Prospect ” or “ the Company ”) is pleased to announce testwork resulting indicating significant improvements to the petalite lithium recovery for its 87%[1] -owned Arcadia Lithium Project in Zimbabwe.

Following the release of the Arcadia Definitive Feasibility Study (DFS) in November 2019, Prospect has focussed on improving petalite recovery to meet demand from premium glass ceramic consumers. December 2019 DFS (ASX release date: 12 December 2019) estimated a project NPV10 of US$710 million, utilising petalite recovery of 31%. The locked cycle flotation testwork indicates significant potential to increase petalite recovery from 31% to >60%, across all Arcadia Project ore bodies contained within the reserve.

With this substantial increase in petalite recovery, further work will now be undertaken to understand the full economic benefits resulting from this increase in recovery, particularly the increase in revenues from additional sales of premium priced ultra-low iron petalite.

Product Quality

The petalite flotation testwork delivered a product specification that is superior to that achieved from Dense Media Separation (“DMS”). Individual Flotation tests were able to achieve a higher lithia content of 4.5% Li2O whilst also containing a lower iron oxide or Fe2O3 level of 0.02%, which is compared with DMS product below in Table 1.

Process unit Petalitegrade(% Li2O) Fe2O3%
DMS 4.26 0.045
Flotation 4.50 0.02
Table 1: Petalite sample results

1 Subject to completion

Prospect Resources Limited | ACN 124 354 329 | W: prospectresources.com.au | Phone: +61 8 9217 3300

Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Email: [email protected]

Page 1 of 26

The higher lithia and ultra-low iron oxide content of the petalite flotation product further increases the ease of use for glass and ceramics customers and achieves a lithia to iron ratio sought by the clear glass market.

Petalite is a preferred input material for ceramics and black glass ceramics due to its zero-thermal expansion, allowing glass to expand and contract without the crystalline structure failing. The potential exists for Prospect to be the first petalite producer and lithium mineral producer more broadly, to sell into the clear glass market that has traditionally been supplied by lithium carbonate due to the stringent lithia to iron ratio thresholds.

The premium pricing in the clear glass market is expected to be greater than the ceramics and black glass ceramic markets (already a premium priced product over battery grade spodumene) due to the higher lithia content, therefore potentially increasing the operating margins for the Arcadia Lithium Project.

Prospect’s Managing Director, Sam Hosack, said the “test work program suggests improved economic potential of using flotation to produce a petalite concentrate.

With Prospect’s ability to nearly double its petalite recovery, our operating cost per tonne of petalite and spodumene is expected to drop. Further work is required to quantify this saving. If we apply the expected tantalum credit and the premium priced petalite credit against the cost of spodumene production, then we can confidently aim to be the lowest cost spodumene producer in the world.”

“The results from the testwork demonstrate the strength of the Arcadia Lithium Mine in being able to produce three products:

1. 6% Li2O low iron spodumene;

2. >4.3% Li2O ultra-low iron petalite; and

3. Tantalum concentrate.

We believe that Arcadia is unique in having the only JORC compliant lithium pegmatite in the world able to produce these three products. The team will now focus on understanding the increase in economics; subsequent increase in revenue, upgrade to the ore reserve, and a potential increase in our mine life.”

Details of Metallurgical Test Work

Three PQ drill hole samples (MP ore) previously selected in relation to variability testing were utilised. The DMS component of the metallurgical test programme was carried out by PESCO, an independent specialist company in South Africa and the subsequent petalite flotation was carried out by Dorfner Anzaplan (Anzaplan), an advanced processing specialist organisation based in Germany. The results of the DMS testwork together with the results of locked cycle petalite flotation indicate the potential for

Prospect Resources Limited | ACN 124 354 329 | W: prospectresources.com.au | Phone: +61 8 9217 3300

Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Email: [email protected]

Page 2 of 26

an overall petalite recovery increase for Arcadia Project from 31% to >60%, across all of Arcadia’s ore bodies.

The DMS testwork followed a split DMS concept in which a coarse fraction and a fines fraction were treated using a two-stage DMS. The two-stage DMS test work results confirmed the amenability of Arcadia ore to the production of premium ultra-low iron petalite concentrate product containing >4.3% Li2O and 0.02% Fe2O3. All the DMS tailings (both coarse and fines) and crusher undersize were proportionally combined and delivered to Anzaplan for locked cycle flotation.

The Main Pegmatite ore generated a combined petalite recovery from DMS and flotation testwork of 77%, as summarised in Table 2.

Process unit % Petalite Recovery Yield(%)
DMS 23.8 6.6
Flotation 53.3 7.5
Overall 77.1 14.1

Table 2: MP final DMS and Flotation combined results

The Petalite flotation is described in the below Proposed Metallurgical Flowsheet.

==> picture [497 x 232] intentionally omitted <==

Figure 1: Proposed Metallurgical Flowsheet

This release was authorised by Mr Sam Hosack, Managing Director of Prospect Resources Ltd.

ENDS

Prospect Resources Limited | ACN 124 354 329 | W: prospectresources.com.au | Phone: +61 8 9217 3300

Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Email: [email protected]

Page 3 of 26

For further information, please contact:

Nicholas Rathjen General Manager, Corporate Affairs [email protected]

About Prospect Resources Limited (ASX: PSC)

Prospect Resources Limited (ASX:PSC) is an ASX listed lithium company based in Perth with operations in Zimbabwe. Prospect’s flagship project is the Arcadia Lithium Project located on the outskirts of Harare in Zimbabwe. The Arcadia Lithium Project represents a globally significant hard rock lithium resource and is being rapidly developed by Prospect’s experienced team, focusing on near term production of petalite and spodumene concentrates.

About Lithium

Lithium is a soft silvery-white metal which is highly reactive and does not occur in nature in its elemental form. In nature it occurs as compounds within hard rock deposits (such as Arcadia) and salt brines. Lithium and its chemical compounds have a wide range of industrial applications resulting in numerous chemical and technical uses. Lithium has the highest electrochemical potential of all metals, a key property in its role in lithium-ion batteries.

Competent Persons Statements

The information in this announcement that relates to Exploration Results, is based on information compiled by Mr Roger Tyler, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy and The South African Institute of Mining and Metallurgy. Mr Tyler is the Company’s Senior Geologist. Mr Tyler has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the JORC Code 2012 Edition. Mr Tyler consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to Mineral Resources is based on information compiled by or under the supervision of Ms Gayle Hanssen of Digital Mining Services, Harare Zimbabwe. Ms Hanssen is registered as Professional Scientist with the South African Council for Professional Natural Scientific Professions (SACNASP) which is a Recognised Professional Organisation (RPO). Ms Hanssen is employed by DMS and has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the JORC Code 2012 Edition. Ms Hanssen consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

The information in this study that relates to Metallurgical Testing is based on information compiled by or under the supervision of Mr Michael Kitney, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM). Mr Kitney is an independent mineral processing consultant. Mr Kitney has sufficient experience relevant to the style of mineralisation and type of deposit under

Prospect Resources Limited | ACN 124 354 329 | W: prospectresources.com.au | Phone: +61 8 9217 3300

Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Email: [email protected]

Page 4 of 26

consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the JORC Code 2012 Edition. Mr Kitney consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Caution Regarding Forward-Looking Information

This announcement may contain some references to forecasts, estimates, assumptions and other forward-looking statements. Although the Company believes that its expectations, estimates and forecast outcomes are based on reasonable assumptions, it can give no assurance that they will be achieved. They may be affected by a variety of variables and changes in underlying assumptions that are subject to risk factors associated with the nature of the business, which could cause actual results to differ materially from those expressed herein. All references to dollars ($) and cents in this announcement are in United States currency, unless otherwise stated.

Investors should make and rely upon their own enquiries before deciding to acquire or deal in the Company’s securities.

Prospect Resources Limited | ACN 124 354 329 | W: prospectresources.com.au | Phone: +61 8 9217 3300 Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Email: [email protected]

Page 5 of 26

– JORC Code, 2012 Edition Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria JORC Code explanation Commentary Commentary
Sampling Nature and quality of sampling (e.g. cut channels, random chips, or 3 core samples from Phase 7 drilling campaign (MP) representing first 18 -
techniques specific specialised industry standard measurement tools appropriate
to the minerals under investigation, such as down hole gamma
sondes, or handheld XRF instruments, etc.). These examples should
not be taken as limiting the broad meaning of sampling.
Include reference to measures taken to ensure sample representivity
and the appropriate calibration of any measurement tools or systems

24 months LOM were selected
3x selected cores approximately 80Kg each were crushed to -25 mm by jaw
crusher and further crushed to -3.5mm employing HPGR crushing at the
ThyssenKrupp facility in Johannesburg.
The crushed sample was sized to 3 size fractions 3.5x 1mm, 1 x 0.3 mm and
used. -0.3mm
Aspects of the determination of mineralisation that are Material to the Each size fraction was sampled during crushing by taking regular sub-
Public Report. samples during the crushing and sizing process
In cases where ‘industry standard’ work has been done this would be
relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1
m samples from which 3 kg was pulverised to produce a 30 g charge
for fire assay’). In other cases more explanation may be required,
such as where there is coarse gold that has inherent sampling

The sub-samples were blended and sampled again by rotary splitter at
Geolabs to produce head samples for analysis and heavy liquid separation
(HLS).
3.5 x 1mm and 1 x 0.3mm size fractions were subjected to DMS with further
problems. Unusual commodities or mineralisation types (eg sampling of feed and products taken
submarine nodules) may warrant disclosure of detailed information. Further sampling was carried out during flotation stage
All samples were analysed by semi-quantitative XRD employing Reitveld
mineral content estimation, and multi-element XRF and ICP-OES.
Validated quantitative mineral analysis was produced by matching ICP
elemental analyses to the mineral phases present.
Drilling Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air There was no drilling conducted in relation to this metallurgical testwork
techniques blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter,
triple or standard tube, depth of diamond tails, face-sampling bit or
announcement
_other type, whether core is oriented and ifso, by what method, etc.). _

Prospect Resources Limited | ACN 124 354 329 | W: prospectresources.com.au | Phone: +61 8 9217 3300

Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Email: [email protected]

Page 6 of 26

Criteria JORC Code explanation JORC Code explanation Commentary Commentary
Drill sample
There was no drilling conducted in relation to this metallurgical testwork
recovery announcement
Logging There was no drilling conducted in relation to this metallurgical testwork
Sub- If core, whether cut or sawn and whether quarter, half or all core .
sampling
techniques
and sample
preparation



taken.
If non-core, whether riffled, tube sampled, rotary split, etc. and
whether sampled wet or dry.
For all sample types, the nature, quality and appropriateness of the
sample preparation technique.
Quality control procedures adopted for all sub-sampling stages to
maximise representivity of samples.



The samples were crushed to P100 25 mm at the Prospect Laboratory.
Secondary crushing to -3.5 mm was carried out using pilot-scale HPGR
equipment.
3.5 mm screen undersize was sampled on a regular basis to produce a
representative composite sample of each batch of crusher feed.
The -3.5 mm material was then blended and split to provide a head analysis
Measures taken to ensure that the sampling is representative of the in sample using a rotary splitter.
situ material collected, including for instance results for field
duplicate/second-half sampling.
Whether sample sizes are appropriate to the grain size of the material
_being sampled. _
Quality
of

The nature, quality and appropriateness of the assaying and All samples were analysed by multi-element ICP (ME-MS61). Over limits (> on
assay
data
and
laboratory
tests

laboratory procedures used and whether the technique is considered
partial or total.
For geophysical tools, spectrometers, handheld XRF instruments,
etc., the parameters used in determining the analysis including
instrument make and model, reading times, calibrations factors
applied and their derivation, etc.

lithium analysed by LiOG63 method, after four acid dissolution. All assays were
performed at ALS Johannesburg.
All samples were analysed by XRD techniques to produce an initial Rietveld
estimate of mineral content.
The XRD data was subsequently validated against the ICP elemental analyses.
Nature of quality control procedures adopted (e.g. standards, blanks,
duplicates, external laboratory checks) and whether acceptable levels
_of accuracy (i.e. lack of bias) and precision have been established. _
Verification The verification of significant intersections by either independent or Prospect Resources’ Chief Geologist and Consulting Metallurgist were on site
of sampling
and assaying



alternative company personnel.
The use of twinned holes.
Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic) protocols.
_Discuss any adjustment to assay data. _
during bulk sample collection.
The Consulting Metallurgist accompanied the samples to the Prospect
Laboratory and supervised the primary crushing, packaging and dispatch of all
10 bags.

Prospect Resources Limited | ACN 124 354 329 | W: prospectresources.com.au | Phone: +61 8 9217 3300

Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Email: [email protected]

Page 7 of 26

Criteria JORC Code explanation Commentary Commentary
All hard copies of data are retained at the Prospect Resource Exploration offices.
All electronic data resides in Excel™ format on the office desktop, with back-ups
retained on hard-drives in a safe, and in an Access™ database in a data cloud
offsite.
All assay results reported as Li2O %. Ta assays are expressed as Ta2O5. Fe2O3
assays were reported in %.
Location of Accuracy and quality of surveys used to locate drill holes (collar and Virimai Mining was contracted to carry out blast hole drilling and blasting
data points down-hole surveys), trenches, mine workings and other locations
used in Mineral Resource estimation.
Specification of the grid system used.
Quality and adequacy of topographic control.
focused on the old Arcadia Pit
In order to generate the required material, three 1.2 m wide benches were
developed to fully expose the 7 m vertical thickness of the Main Pegmatite
Data spacing Data spacing for reporting of Exploration Results. Samples were generated from both from the blasted and broken Main
and
distribution
Whether the data spacing and distribution is sufficient to establish the
degree of geological and grade continuity appropriate for the Mineral
Resource and Ore Reserve estimation procedure(s) and
Pegmatite stockpiles. Continuous 1 m samples were channel sampled and hand
sampled along cut lines, every 2 m on the pit face.
classifications applied.
Whether sample compositing has been applied
Orientation Whether the orientation of sampling achieves unbiased sampling of Face sampling in the pit was carried out as vertical channels (approx. normal to
of data
relation
geological
in
to
possible structures and the extent to which this is known, considering
the deposit type.
If the relationship between the drilling orientation and the orientation
of key mineralised structures is considered to have introduced a
the dip of the mineralisation.
structure sampling bias, this should be assessed and reported if material
Sample The measures taken to ensure sample security. Bulk samples were placed in sealed bulk bags to loss during transport. Minimal
security preparation was done on site. Samples were transported in company vehicles
accompanied by the Consulting Metallurgist to the pre-preparation laboratory
in Kwe Kwe.
Audits or The results of any audits or reviews of sampling techniques and data.
The Chief Metallurgist is continually reviewing sample management practices
reviews and data generation and collection.

Prospect Resources Limited | ACN 124 354 329 | W: prospectresources.com.au | Phone: +61 8 9217 3300

Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Email: [email protected]

Page 8 of 26

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria JORC Code explanation Commentary Commentary
Mineral Type, reference name/number, location and ownership
tenement
and
land
tenure

including agreements or material issues with third parties
such as joint ventures, partnerships, overriding royalties,
native title interests, historical sites, wilderness or national
park and environmental settings.
An approx. 10 square km (1,038 hectares) mining lease, no 38 was issued on August 16th2018
to Prospect Lithium Zimbabwe (formerly Examix Investments (Pvt)). This encompasses the
entire mineral resource.
status The security of the tenure held at the time of reporting No environmental or land title issues or impediments. EIA certificate of approval granted by
along with any known impediments to obtaining a licence the Environmental Management Agency, to cover all of the company’s exploration activities.
to operate in the area. Rural farmland – fallow, effectively defunct commercial farm.
Exploration Acknowledgment and appraisal of exploration by other Two rounds of historical drilling were done. Three EXT holes were drilled in 1969 with support
done by
parties.
from the Geological Survey of Zimbabwe, at the site of the historic pit. These logs are available,
other parties and the lithologies observed are consistent with that seen by Prospect Resources’ drilling.
The sites of at least 10 previously drilled NQ sized boreholes have also been identified in the
field. Much detailed records of this programme have been lost. But the work done is mentioned
in the Geological Survey in their 1989 Harare bulletin, no 94 where a non-JORC compliant
estimate of 18 Mt is recorded.
Recent investigations have revealed that this was actually two campaigns of drilling. The first
in 1974, consisted of six diamond drill holes and a limited number of percussion holes by local
company Rhodex.
The second round was undertaken in 1981 by Rand Mines’ local subsidiary Central African
Minerals. A total of 813.77 m was drilled in eight diamond drill holes. Six of the old the bore
hole collars have been identified, one with a hole number AC#4, and depth 47 m. (This was
twinned by PR hole ACD001). It is apparent that though Rand Mines intersected the Lower
Main Pegmatite in one of the holes, they were not aware that the ore body thickened
significantly to the north.
A weighted average grade of 1.47 % Li2O over 26 m was recorded from the eight holes. Though
non-JORC compliant, the order of magnitude of the results are consistent with Prospect’s work.

Prospect Resources Limited | ACN 124 354 329 | W: prospectresources.com.au | Phone: +61 8 9217 3300

Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Email: [email protected]

Page 9 of 26

Geology Deposit type, geological setting and style of mineralisation. The deposit comprises a number of pegmatites hosted in meta-basalts of the Arcturus
Formation within the Harare Greenstone Belt.
The pegmatites belong to the Petalite subclass of the Rare-Element pegmatite deposit class
and belong to the LCT pegmatite family.
The pegmatites are poorly to moderately zoned (but not symmetrically or asymmetrically
zoned and have no quartz core). The main lithium bearing minerals are dominantly petalite
and spodumene, with sub-ordinate eucryptite, Bikitaite, and minor lepidolite. In addition,
disseminated tantalite is present. Gangue minerals are quartz, alkali feldspars and muscovite.
The pegmatites strike 045° and dip at 10° to the northwest.
Drill hole A summary of all information material to the understanding There was no drilling conducted in relation to this metallurgical testwork announcement
Information of the exploration results including a tabulation of the
following information for all Material drill holes:
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level – elevation above sea
level in meters) of the drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
If the exclusion of this information is justified on the basis
that the information is not Material and this exclusion does
not detract from the understanding of the report, the
Competent Person should clearly explain why this is the
case.
Data In reporting Exploration Results, weighting averaging There was no drilling conducted in relation to this metallurgical testwork announcement.
aggregation
methods
techniques, maximum and/or minimum grade truncations
(e.g. cutting of high grades) and cut-off grades are usually
Material and should be stated.

There was no drilling conducted in relation to this metallurgical testwork announcement
Sampling for metallurgical testwork has no effect on current Mineral Resource..
Where aggregate intercepts incorporate short lengths of
high grade results and longer lengths of low grade results,
the procedure used for such aggregation should be stated
and some typical examples of such aggregations should
be shown in detail.
The assumptions used for any reporting of metal
_equivalent values should be clearly stated. _

Prospect Resources Limited | ACN 124 354 329 | W: prospectresources.com.au | Phone: +61 8 9217 3300

Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Email: [email protected]

Page 10 of 26

Relationship These relationships are particularly important in the There was no drilling conducted in relation to this metallurgical testwork announcement
between reporting of Exploration Results.
mineralisati
on
widths

If the geometry of the mineralisation with respect to the drill
hole angle is known, its nature should be reported.
If it is not known and only the down hole lengths are
and reported, there should be a clear statement to this effect
intercept (e.g. ‘down hole length, true width not known’).
lengths
Diagrams Appropriate maps and sections (with scales) and A map showing the location of the old Arcadia pit is attached in the body of the report
tabulations of intercepts should be included for any
significant discovery being reported These should include,
but not be limited to a plan view of drill hole collar locations
_and appropriate sectional views. _
Balanced Where comprehensive reporting of all Exploration Results The Company states that all results have been reported and comply with balanced reporting.
reporting is not practicable, representative reporting of both low and
high grades and/or widths should be practiced to avoid
_misleading reporting of Exploration Results. _
Other Other exploration data, if meaningful and material, should Channel sampling also carried out at the adjacent dormant pit, previously mined in the 1970’s.
substantive
exploration
data
be reported including (but not limited to): geological
observations; geophysical survey results; geochemical
survey results; bulk samples – size and method of
treatment; metallurgical test results; bulk density,
groundwater, geotechnical and rock characteristics;
Continuous 1 m samples were channel sampled and hand sampled along cut lines, every 2 m
on the pit face. Approximately 3 kg samples were collected, and assayed at ALS after crushing
and milling at Zimlabs. Assays were incorporated into the MRE.
Geological mapping was undertaken down-dip and along strike of the pit and has been
potential deleterious or contaminating substances. incorporated into the current MRE.
Soil sampling orientation lines have produced lithium geochemical anomalies that coincide
with sub-outcropping projections of the pegmatites.
Detailed XRD and petrographic investigations have been completed on a range of samples
from across and at depth from the Arcadia deposit. The results indicate the mineralogy of the
lithium mineralisation is coarse grained petalite and fine grained spodumene, both of which
are amenable to conventional recovery methods for the production of a potentially saleable
lithium concentrate. Initial heavy liquid separation results in petalite reporting largely to the
floats and spodumene to the sinks. The two may be separated after primary fine crushing by
dense medium separation (DMS) and after successive fine grinding, by flotation. Petalite is
comparativelycoarsegrained, primarilyreportingtogravityconcentrates. The finer

Prospect Resources Limited | ACN 124 354 329 | W: prospectresources.com.au | Phone: +61 8 9217 3300

Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Email: [email protected]

Page 11 of 26

spodumene responds very well to conventional fatty acid flotation.

spodumene responds very well to conventional fatty acid flotation.
Testing Lower Main Pegmatite ore produced spodumene concentrate grade of >5% lithium
oxide (Li2O) and petalite concentrate at >4% Li2O from dense medium separation tests with a
lithium recovery of up to 20% as petalite in gravity concentrates. Spodumene, reporting to
DMS sinks graded ~5% Li2O at a lithium recovery of ~8%. Lithium recovery of ~44% to
spodumene flotation concentrate grading >6% Li2O was achieved. These results reflect near
total recovery of spodumene and significant initial recovery of petalite minerals. Work to
maximize petalite recovery employing spirals and flotation is continuing. Further bulk testing
of Main Pegmatite ore supports the selection of DMS for coarse petalite recovery, and specialist
flotation testing has indicated additional petalite may be recoverable while achieving
specification grade.
The following products have been produced;
o Spodumene flotation concentrate @ 6.5% Li2O and 0.33% Fe2O3
o Spodumene flotation concentrate @ 6.1% Li2O and 0.52% Fe2O3
o Petalite gravity concentrate @ 4.2 % Li2O and 0.08 % Fe2O3
Battery grade lithium carbonate has been produced from the laboratory and pilot
test facility established in Kwe Kwe, Zimbabwe. Excellent quality product significantly
above battery grade specification been produced at lithium carbonate analyses
>99.5%.
Further work The nature and scale of planned further work (e.g. tests for Phase 7 was drilled as infills within the existing grid on Arcadia to produce more Main
lateral extensions or depth extensions or large-scale step-
out drilling).
Diagrams clearly highlighting the areas of possible
extensions, including the main geological interpretations
and future drilling areas, provided this information is not
Pegmatite intercepts for continuing the metallurgical test work. The Main Pegmatite intercepts
have yet to be processed by the test work laboratories. The geological information from the
logging will be used to update the geological and resource models, as the grid is now less than
30 m in these areas.
commercially sensitive.
In addition a potential Phase 8 drilling that would involve drilling 14 x 140 m holes on the
western edge of the planned Main Pit is being considered. This is to upgrade all of the Basal &
Lower Basal Pegmatite to at least an Indicated Mineral Resource category.

Prospect Resources Limited | ACN 124 354 329 | W: prospectresources.com.au | Phone: +61 8 9217 3300

Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Email: [email protected]

Page 12 of 26

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

Criteria JORC Code explanation Commentary Commentary
Database Measures taken to ensure that data has not been All data is stored in Excel spreadsheets, which are checked by the Project Geologist prior to
integrity corrupted by, for example, transcription or keying errors,
between its initial collection and its use for Mineral
Resource estimation purposes.
Data validation procedures used.

import into an Access Database.
Columns in the spreadsheet have been inserted to calculate the sample lengths and compare
them to that recorded by the samplers.
The spreadsheets are set up to, allow only standardized logging codes. Checks are also done
during data capture and prior to import to ensure there are no interval or sample overlaps,
duplication of data or samples.
Site visits Comment on any site visits undertaken by the The project has regularly been visited by the Company’s Chief Geologist and CP. In addition,
Competent Person and the outcome of those visits.
If no site visits have been undertaken indicate why this is
the case.
Mr Michael Cronwright of The MSA Group, a pegmatite specialist and CP has undertaken a
number of site visits to advise on pegmatite zonation and mineralogy and observe sampling
practices.
Geological Confidence in (or conversely, the uncertainty of) the The geology of the deposit is relatively simple, a number of shallow dipping (10° to the NW)
interpretation geological interpretation of the mineral deposit.
Nature of the data used and of any assumptions made.
The effect, if any, of alternative interpretations on
Mineral Resource estimation.
The use of geology in guiding and controlling Mineral
Resource estimation.
pegmatites hosted in meta-basalt. The deposit is cross-cut by southwest-northeast and north
northwest – south southeast trending faults. The latter set is thought to have controlled initial
emplacement of the pegmatites, but there is little discernible displacement of the pegmatites
along them.
Estimations have been done separately on each of the major three pegmatites bodies; the Main
The factors affecting continuity both of grade and Pegmatite, the Intermediate Pegmatite, the Lower Main Pegmatite and the Basal Pegmatite.
geology. Lithium is a highly mobile element, and weathering has affected and leached the grade down
to 20-30 m depth. Separate estimations have been made on the weathered and un-weathered
zones.
Dimensions The extent and variability of the Mineral Resource The block model encompasses 2.6 km of the 3.5 km of SW-NE strike, by 900 m down dip, and
expressed as length (along strike or otherwise), plan to a depth of 130 m. Thegeological model is 300 m thick,which represents a depthgreater

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Criteria JORC Code explanation Commentary Commentary
width, and depth below surface to the upper and lower than the combined maximum topographic height, plus maximum depth drilled.
_limits of the Mineral Resource. _
Estimation and
The nature and appropriateness of the estimation
The initial geological models were constructed in Leapfrog software based on hand drawn
modelling
techniques
technique(s) applied and key assumptions, including
treatment of extreme grade values, domaining,
interpolation parameters and maximum distance of
extrapolation from data points. If a computer assisted
estimation method was chosen include a description of
sections compiled by the Project and Chief Geologists. The block model was constructed by
Digital Mining Services (DMS) in Surpac software. No top cut was applied, as there were no
statistical outliers. Based on frequency distribution analysis however a bottom cut off of 0.2%
Li2O was used. In addition, a higher grade resource was defined, using a cut-off of 0.8%% Li2O.
computer software and parameters used. Ordinary Kriging (OK) was employed. A spherical model was used, with search parameters set
to follow the SW-NE strike and NW dip of the pegmatites.
The availability of check estimates, previous estimates N/A
and/or mine production records and whether the Mineral
Resource estimate takes appropriate account of such
data.
The assumptions made regarding recovery of by-
products.
Estimation of deleterious elements or other non-grade

Estimations were also made on tantalum, the primary by-product and niobium, which is
intimately (mineralogically) associated with it, and also rubidium. The latter has a very high
background level and is considered to be associated with the K-Feldspar, but unlikely to form
economic mineralisation.
Deleterious elements, such as Cd, Fe and U are at acceptable to low levels.
variables of economic significance (e.g. sulphur for acid Initial block size was set at 40 m x 40 m x 5 m (standard Zimbabwean Bench height). Sub –
mine drainage characterisation). blocking done at 10 x 10 x 2.5 m.
In the case of block model interpolation, the block size in
relation to the average sample spacing and the search
employed.
Any assumptions behind modelling of selective mining
units.


Statistical analysis suggests a strong correlation between Cs & Rb, and Ta, Nb and Be, but a
weak to negative correlation between lithium and almost all other elements.
No outlier high values to warrant top cut-off. Statistical analysis suggested a 0.2 % Li2O lower
cut-off.
Any assumptions about correlation between variables. Sections were sliced through the body at 100 m intervals and bore hole intercept grades
Description of how the geological interpretation was visually compared against the estimated block grades.
used to control the resource estimates.
Discussion of basis for using or not using grade cutting
or capping.
The process of validation, the checking process used,
the comparison of model data to drill hole data, and use
_of reconciliation data ifavailable. _
Moisture Whether the tonnages are estimated on a dry basis or Estimated on a dry basis
_with natural moisture, and the method of determination _

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Criteria JORC Code explanation Commentary Commentary
_of the moisture content. _
Cut-off The basis of the adopted cut-off grade(s) or quality Commodity is an industrial mineral. Key value drivers are Li (or Li2O) grade and mineralogy.
parameters parameters applied. Lower cut -off of 0.2% Li2O determined statistically.
Metallurgical and mineralogical test work has been completed and is ongoing.
Mining factors Assumptions made regarding possible mining methods, 5 m block height size used to confirm with standard Zimbabwean bench height. Open cast
or assumptions minimum mining dimensions and internal (or, if
applicable, external) mining dilution. It is always
necessary as part of the process of determining
reasonable prospects for eventual economic extraction
to consider potential mining methods, but the

mining is planned in the eastern part of the ore body to exploit the Basal, Lower Main,
Intermediate, Main and Upper Pegmatites.
A stripping ratio of less than 2.79 : 1 to 130 m depth has been determined.
Although numerous thin pegmatite bands (14 in all) exist; practical minimum size of 2 m is
assumptions made regarding mining methods and deemed possible to economically mine (equates to average bucket width of an excavator).
parameters when estimating Mineral Resources may not Bands thinner than this will dictate the necessity of establishing low grade stockpiles, which
always be rigorous. Where this is the case, this should
be reported with an explanation of the basis of the
mining assumptions made.
may be economic to process once mine and floatation plant and gravity circuits are running
successfully. The current estimate was made on the four thickest bands; the Upper Pegmatite,
Main Pegmatite, the Middle Pegmatite Lower Main Pegmatite, Basal and Lower Basal
Pegmatites.
Metallurgical The basis for assumptions or predictions regarding Refer Section 2 above
factors
assumptions
or
metallurgical amenability. It is always necessary as part
of the process of determining reasonable prospects for
eventual economic extraction to consider potential
metallurgical methods, but the assumptions regarding
metallurgical treatment processes and parameters made
when reporting Mineral Resources may not always be
rigorous. Where this is the case, this should be reported
with an explanation of the basis of the metallurgical
_assumptions made. _
Environmental Assumptions made regarding possible waste and An EIA certificate has been issued by the Environmental Management Agency (EMA) of
factors
assumptions
or
process residue disposal options. It is always necessary
as part of the process of determining reasonable
prospects for eventual economic extraction to consider
the potential environmental impacts of the mining and
Zimbabwe for both the exploration and the mining phases. Sterilization drilling was
successfully done at the planned plant site located away from any perennial water courses.
There are no centres of dense human habitation.
processing operation. While at this stage the

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Criteria JORC Code explanation Commentary Commentary
determination of potential environmental impacts,
particularly for a greenfields project, may not always be
well advanced, the status of early consideration of these
potential environmental impacts should be reported.
Where these aspects have not been considered this
should be reported with an explanation of the
_environmental assumptions made. _
Bulk density Whether assumed or determined. If assumed, the basis Specific gravities for all RC and DD core samples have been measured, in both weathered and
for the assumptions. If determined, the method used,
whether wet or dry, the frequency of the measurements,
the nature, size and representativeness of the samples.
The bulk density for bulk material must have been
measured by methods that adequately account for void
spaces (vugs, porosity, etc.), moisture and differences
un-weathered zones. The pegmatites are competent units with no voids, and the specific
gravities measured are considered to be a good estimate of future mined bulk densities.
In core, the Archimedes technique has been used by the company. For the RC chips, a
pycnometer was used by SGS Harare, and the Archimedes technique by Zimlabs. The results
from the DD have proved to be more statistically robust, and only in areas where there is no
between rock and alteration zones within the deposit. DD coverage, have the SG measurements from the RC been used.
Discuss assumptions for bulk density estimates used in
_the evaluation process of the different materials. _
Classification The basis for the classification of the Mineral Resources The deposits show reasonable continuity in geology and grade. The basis of resource
into varying confidence categories. classification is therefore largely based in drill hole density. Measured Resources at 50 m
Whether appropriate account has been taken of all
relevant factors (i.e. relative confidence in
tonnage/grade estimations, reliability of input data,
confidence in continuity of geology and metal values,
quality, quantity and distribution of the data).

spacing, Indicated Resources up to 100 m and Inferred Resources > 100 m.
The company believes that all relevant factors have been taken into account.
The CP, Chief Geologist and Project Geologist agree that the Mineral Resource estimate is a
fair and realistic model of the deposit.
Whether the result appropriately reflects the Competent
Person’s view of the deposit.
Audits or
The results of any audits or reviews of Mineral Resource

The Mineral Resource Estimate was reviewed by amongst others Entech Mining of Perth,
reviews estimates. BGRIMM of Beijing and Lionhead of Johannesburg.
Discussion of
Where appropriate a statement of the relative accuracy
The individual pegmatite bodies are geologically consistent, and it is deemed that the
relative
accuracy/
confidence
and confidence level in the Mineral Resource estimate
using an approach or procedure deemed appropriate by
the Competent Person. For example, the application of
statistical or geostatistical procedures to quantify the

estimates are valid for such deposits over significant distances.
N/A
The statement refers to the four main pegmatite bodies; the Upper Pegmatite, the Main

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Criteria JORC Code explanation Commentary
relative accuracy of the resource within stated Pegmatite, the Intermediate Pegmatite the Lower Main Pegmatite, Basal and Lower Basal
confidence limits, or, if such an approach is not deemed
appropriate, a qualitative discussion of the factors that
Pegmatites.
could affect the relative accuracy and confidence of the
estimate.
The statement should specify whether it relates to global
or local estimates, and, if local, state the relevant
tonnages, which should be relevant to technical and
economic evaluation. Documentation should include
assumptions made and the procedures used.
These statements of relative accuracy and confidence of
the estimate should be compared with production data,
where available.

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APPENDIX I – SUMMARY OF DRILL HOLES USED IN MINERAL RESOURCE ESTIMATE

BHID Eastings
ARC50
Northings
ARC50
Elevation Azimuth Dip Depth
ACD001 331,375.37 8,034,084.52 1,406.87 145 -80 67.10
ACD002 331,344.43 8,034,059.89 1,408.65 148 -79 104.70
ACD003 331,331.21 8,034,127.59 1,404.69 144 -80 86.70
ACD004 331,336.18 8,034,179.68 1,399.66 135 -80 80.70
ACD005 331,404.84 8,034,110.33 1,401.06 135 -80 71.60
ACD006 331,387.09 8,034,224.41 1,386.85 135 -80 77.70
ACD007 331,292.17 8,034,033.50 1,402.76 135 -80 74.32
ACD008 331,243.12 8,034,063.75 1,393.43 135 -79 53.60
ACD009 331,201.73 8,033,968.64 1,405.58 142 -80 62.70
ACD010 331,109.41 8,033,902.90 1,398.59 135 -80 67.35
ACD011 331,220.44 8,033,907.17 1,405.97 135 -80 32.70
ACD012 331,100.31 8,033,851.10 1,397.82 135 -80 71.96
ACD013 331,075.76 8,033,936.72 1,391.31 145 -79 60.70
ACD014 331,291.75 8,034,171.09 1,404.12 135 -80 29.75
ACD014B 331,288.54 8,034,174.19 1,404.36 150 -78 86.70
ACD015 331,134.81 8,033,976.09 1,398.27 158 -79 58.00
ACD016 331,464.00 8,034,145.40 1,378.00 135 -80 86.70
Phase 2 RC
ACR001 331,539.78 8,034,132.39 1,366.49 130 -79 51.00
ACR002 331,503.95 8,034,179.73 1,361.24 151 -81 52.00
ACR003 331,453.30 8,034,256.34 1,373.19 144 -80 76.00
ACR004 331,610.58 8,034,203.15 1,343.05 147 -80 37.00
ACR005 331,589.70 8,034,234.81 1,342.52 144 -80 33.00
ACR006 331,535.33 8,034,315.34 1,343.68 148 -80 56.00
ACR007 331,708.76 8,034,254.73 1,327.65 139 -81 43.00
ACR008 331,671.74 8,034,296.39 1,330.92 148 -80 50.00
ACR009 331,612.23 8,034,370.25 1,327.21 155 -79 55.00
ACR010 331,471.00 8,034,399.00 1,346.00 156 -80 70.00
ACR011 331,685.21 8,034,448.12 1,318.22 156 -80 76.00
ACR012 331,639.00 8,034,510.44 1,316.34 146 -80 81.00
ACR013 331,779.82 8,034,489.41 1,312.28 135 -79 81.00
ACR014 331,781.48 8,034,309.88 1,319.29 150 -78 82.00
ACR015 331,751.79 8,034,346.86 1,321.29 135 -80 68.00
ACR016 331,554.34 8,034,449.37 1,325.61 158 -79 76.00

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ACR017 331,500.25 8,034,537.82 1,323.51 135 -80 53.00
ACR018 331,417.16 8,034,475.73 1,332.79 135 -80 82.00
ACR019 331,345.31 8,034,424.79 1,343.41 128 -80 77.00
ACR020 331,398.64 8,034,322.36 1,359.26 127 -77 69.00
ACR021 331,313.46 8,034,289.43 1,381.18 132 -80 85.00
ACR023 330,956.26 8,033,777.46 1,403.47 129 -81 89.00
ACR024 330,881.57 8,033,718.84 1,417.00 150 -77 55.00
BHID Eastings
ARC50
Northings
ARC50
Elevation Azimuth Dip Depth
ACR025 330,795.46 8,033,657.62 1,420.24 130 -79 55.00
ACR026 330,705.33 8,034,116.03 1,390.68 135 -77 60.00
ACR027 330,652.92 8,034,195.07 1,391.80 144 -75 74.00
ACR028 330,740.59 8,034,249.39 1,394.10 131 -59 70.00
ACR029 330,815.74 8,034,313.91 1,380.42 130 -79 70.00
ACR030 330,621.81 8,034,059.22 1,408.56 141 -80 53.00
ACR031 330,818.97 8,033,796.31 1,411.68 131 -78 61.00
ACR032 331,671.13 8,034,114.18 1,336.15 135 -79 24.00
Phase 3(DD)
ACD017 331,337.01 8,034,200.90 1,398.38 127 -80 83.85
ACD018 331,644.87 8,034,412.88 1,322.11 125 -80 74.75
ACD019 331,827.50 8,034,408.51 1,314.25 124 -80 77.70
ACD020 331,573.20 8,034,593.51 1,316.06 133 -79 139.40
ACD021 332,023.14 8,034,485.85 1,303.85 130 -80 65.60
ACD022 331,511.40 8,034,419.82 1,334.54 132 -79.5 74.75
ACD023 331,719.05 8,034,567.88 1,310.43 137 -78 182.70
ACD024 332,000.03 8,034,344.41 1,306.64 137 -80 101.60
ACD025 331,825.32 8,034,627.66 1,305.46 133 -79.5 197.70
ACD026 331,863.90 8,034,275.86 1,315.11 139 -78.6 89.70
ACD027 331,883.06 8,034,692.43 1,303.98 136 -79.2 191.00
ACD028 331,857.12 8,034,551.29 1,307.64 135 -79.4 164.70
ACD029 331,460.90 8,034,511.98 1,327.78 118.6 -79.13 125.70
ACD030 331,638.77 8,034,652.11 1,310.90 132.3 -79.1 205.25
ACD031 331,583.86 8,034,412.21 1,326.37 133.5 -79.5 77.75
ACD032 331,519.88 8,034,676.15 1,315.39 134.9 -79.2 188.60
ACD033 331,363.44 8,034,566.64 1,325.95 133.9 -79.2 137.60
ACD034 331,962.93 8,034,723.46 1,302.06 128.9 -80.2 188.70
ACD035 331,290.29 8,034,512.25 1,331.84 127.8 -79.3 104.60

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ACD036 332,042.88 8,034,810.39 1,298.79 131.2 -81.4 191.60
ACD037 332,114.47 8,034,870.89 1,296.15 125.2 -78.3 164.60
ACD038 331,207.90 8,034,444.88 1,343.14 132.9 -78.1 113.60
ACD039 332,001.12 8,034,931.82 1,303.99 132.7 -78.2 86.40
ACD039B 332,098.53 8,034,733.24 1,298.53 132.7 -78.2 200.60
ACD041 331,441.74 8,034,613.53 1,320.77 126.4 -80.1 141.25
ACD040 332,099.00 8,034,730.00 1,305.00 134.9 -79.9 77.33
ACD042 332,182.00 8,034,948.00 1,305.00 138.2 -79.5 170.70
ACD043 332,170.00 8,035,053.00 1,290.00 149.3 -79.9 176.70
ACD044 332,088.00 8,034,993.00 1,295.00 134 -77.4 203.60
ACD045 331,708.00 8,034,500.00 1,316.00 135.7 -79.6 104.85
ACD046 331,648.00 8,034,581.00 1,316.00 129.6 -80.4 116.85
ACD048 331,845.00 8,034,478.00 1,311.00 127.6 -79.2 113.85
ACD049 331,788.00 8,034,560.00 1,310.00 124.5 -79.6 107.85
BHID Eastings
ARC50
Northings
ARC50
Elevation Azimuth Dip Depth
ACD050 331,240.00 8,034,228.00 1,388.00 141.1 -79.4 80.60
ACD051 331,597.00 8,034,483.00 1,318.00 130.4 -79.3 89.95
ACD052 331,768.00 8,034,420.00 1,321.00 137.8 -80.1 80.60
ACD053 331,160.00 8,034,172.00 1,382.00 130.8 -79.7 83.60
ACD054 331,297.00 8,034,717.00 1,328.00 146.1 -78.8 68.25
ACD055 331,412.00 8,034,414.00 1,349.00 124.4 -78.9 74.85
ACD056 331,182.00 8,034,314.00 1,361.00 131.8 -79.3 104.70
ACD057 331,068.00 8,034,464.00 1,343.00 136.1 -79.4 95.70
ACD058 331,684.00 8,034,361.00 1,329.00 137 -78.9 75.10
ACD059 331,099.00 8,034,257.00 1,369.00 129.6 -79.6 80.70
ACD060 330,982.00 8,034,412.00 1,347.00 139.5 -79.3 89.70
ACD061 331,018.00 8,034,198.00 1,355.00 131.6 -79.6 131.70
ACD062 330,900.00 8,034,373.00 1,361.00 143.7 -79.2 89.70
ACD063 330,939.00 8,034,137.00 1,358.00 135.5 -80 131.60
ACD064 332,019.00 8,034,669.00 1,305.00 138 -78.4 149.60
ACD065 331,674.00 8,034,789.00 1,312.00 141.5 -77.5 203.70
Phase 3(RC)
ACR034 330,416.00 8,035,708.00 1,393.00 159 -74.8 80.00
ACR035 330,437.00 8,035,660.00 1,393.00 248 -87.4 100.00
ACR036 330,655.00 8,035,698.00 1,401.00 337 -74.5 90.00
ACR037 330,473.00 8,035,611.00 1,392.00 343 -67.8 82.00

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ACR038 330,521.00 8,035,643.00 1,397.00 335 -71.7 72.00
ACR039 330,381.00 8,035,607.00 1,393.00 340 -70 90.00
ACR040 330,580.00 8,035,700.00 1,398.00 340 -70 78.00
ACR041 330,653.00 8,035,736.00 1,398.00 353 -74.7 64.00
ACR042 330,707.00 8,035,776.00 1,394.00 334 -68.7 60.00
ACR043 331,760.18 8,034,172.79 1,322.82 131 -80.8 75.00
ACR044 331,457.41 8,034,025.65 1,376.89 137 -82.2 82.00
ACR045 330,853.00 8,035,804.00 1,393.00 344 -72 65.00
ACR046 331,922.41 8,034,282.84 1,311.24 137 -80.3 83.00
ACR047 331,819.83 8,034,096.44 1,319.15 140 -80.8 81.00
ACR048 331,840.66 8,034,227.19 1,317.12 134 -80.7 77.00
ACR049 331,724.19 8,034,023.21 1,326.88 129 -79.5 79.00
ACR050 331,759.53 8,033,900.35 1,322.79 130 -80.6 75.00
ACR051 330,911.08 8,033,869.20 1,400.10 155 -81.3 80.00
ACR052 331,869.71 8,033,999.45 1,316.20 140 -80.1 67.00
ACR053 331,901.85 8,034,147.66 1,314.46 144 -75 75.00
ACR054 330,831.09 8,033,952.91 1,384.08 145 -79.3 73.00
ACR055 331,982.73 8,034,208.03 1,309.51 142 -80.7 88.00
ACR056 331,950.69 8,034,425.78 1,308.07 131 -81 75.00
ACR057 332,288.00 8,034,881.00 1,302.00 150 -60 57.00
ACR058 332,244.00 8,035,050.00 1,292.00 150 -60 74.00
BHID Eastings
ARC50
Northings
ARC50
Elevation Azimuth Dip Depth
ACR059 332,650.00 8,034,950.00 1,307.00 180 -60 50.00
ACR060 332,650.00 8,035,000.00 1,300.00 180 -60 58.00
ACR061 332,650.00 8,035,050.00 1,302.00 180 -60 76.00
ACR062 332,650.00 8,035,146.00 1,299.00 180 -60 80.00
ACR063 332,650.00 8,035,247.00 1,296.00 180 -60 125.00
ACR064 332,750.00 8,035,000.00 1,305.00 180 -60 63.00
ACR066 332,850.00 8,035,001.00 1,300.00 180 -60 74.00
ACR067 332,850.00 8,035,050.00 1,302.00 180 -60 84.00
ACR068 332,950.00 8,035,000.00 1,295.00 180 -60 85.00
ACR069 332,950.00 8,035,050.00 1,296.00 180 -60 93.00
ACR070 333,050.00 8,035,000.00 1,295.00 180 -60 92.00
ACR071 333,050.00 8,035,050.00 1,297.00 180 -60 92.00
ACR072 333,150.00 8,035,000.00 1,292.00 180 -60 108.00
ACR073 332,950.00 8,034,900.00 1,296.00 174 -62 70.00
ACR074 332,950.00 8,034,800.00 1,309.00 180 -59 60.00

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ACR075 333,150.00 8,034,700.00 1,287.00 178 -59 77.00
ACR076 333,238.00 8,034,700.00 1,286.00 169 -63 73.00
ACR077 333,150.00 8,034,800.00 1,283.00 175 -66 75.00
ACR078 333,150.00 8,034,600.00 1,291.00 177 -61 75.00
ACR079 332,550.00 8,035,146.00 1,299.00 180 -63 79.00
ACR080 332,452.00 8,035,150.00 1,294.00 182 -61 80.00
ACR081 332,350.00 8,035,146.00 1,301.00 173 -62 80.00
Phase 3 Tails
ACDT01 331,228.39 8,034,595.14 1,329.10 130.8 -80.7 140.50
ACDT02 331,314.86 8,034,640.81 1,324.39 154.1 -79.9 134.60
ACDT04 331,598.00 8,034,727.00 1,317.00 132.1 -79.8 170.60
ACDT07 331,147.60 8,034,525.55 1,334.51 135 -80 110.60
Phase 3DD
ACD059 331,099.00 8,034,257.00 1,369.00 129.6 -79.6 80.70
ACD060 330,982.00 8,034,412.00 1,347.00 139.5 -79.3 89.70
ACD061 331,018.00 8,034,198.00 1,355.00 131.6 -79.6 131.70
ACD062 330,900.00 8,034,373.00 1,361.00 143.7 -79.2 89.70
ACD063 330,939.00 8,034,137.00 1,358.00 135.5 -80 131.60
ACD064 332,019.00 8,034,669.00 1,305.00 138 -78.4 149.60
ACD065 331,674.00 8,034,789.00 1,312.00 141.5 -77.5 203.70
ACD066 331,858.00 8,034,367.00 1,316.00 128.5 -79.6 67.95
ACD067 331,733.00 8,034,713.00 1,314.00 136.1 -77.6 173.70
ACD068 331,262.00 8,034,547.00 1,333.00 146 -79.3 101.75
ACD069 331,568.00 8,034,524.00 1,329.00 139.4 -79.7 101.85
ACD070 331,391.00 8,034,525.00 1,333.00 145.4 -79.5 101.85
ACD071 331,191.00 8,034,557.00 1,332.00 135 -79.6 113.85
ACD072 331,808.00 8,034,773.00 1,311.00 130.9 -79.7 143.70
BHID Eastings
ARC50
Northings
ARC50
Elevation Azimuth Dip Depth
ACD073 331,495.00 8,034,535.00 1,325.00 133.1 -79.3 108.12
ACD074 331,358.00 8,034,069.00 1,410.00 132.1 -79.7 41.85
ACD075 331,392.00 8,034,090.00 1,409.00 129.6 79.1 44.85
ACD076 331,322.00 8,034,053.00 1,413.00 128.9 80.5 29.85
ACD077 331,349.00 8,034,102.00 1,403.00 130.1 80.5 41.85
ACD078 331,304.00 8,034,073.00 1,409.00 136.1 79.6 35.75
ACD079 331,293.00 8,034,324.00 1,374.00 131.7 79.3 44.85
ACD080 331,244.00 8,034,398.00 1,349.00 137.8 79.5 44.85

Prospect Resources Limited | ACN 124 354 329 | W: prospectresources.com.au | Phone: +61 8 9217 3300

Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Email: [email protected]

Page 22 of 26

ACD081 331,379.00 8,034,119.00 1,402.00 140.6 79.9 44.85
Phase 4(RC)
ACR074 332,950.00 8,034,800.00 1,309.00 180 -59 60.00
ACR075 333,150.00 8,034,700.00 1,287.00 178 -59 77.00
ACR076 333,238.00 8,034,700.00 1,286.00 169 -63 73.00
ACR077 333,150.00 8,034,800.00 1,283.00 175 -66 75.00
ACR078 333,150.00 8,034,600.00 1,291.00 177 -61 75.00
ACR079 332,550.00 8,035,146.00 1,299.00 180 -63 79.00
ACR080 332,452.00 8,035,150.00 1,294.00 182 -61 80.00
ACR081 332,350.00 8,035,146.00 1,301.00 173 -62 80.00
ACR082 330,980.00 8,034,699.00 1,333.00 133 -81 50.00
ACR083 330,921.00 8,034,780.00 1,337.00 143 -80 44.00
ACR084 331,134.00 8,034,915.00 1,333.00 130 -81 30.00
ACR085 331,110.00 8,034,758.00 1,326.00 127 -81 50.00
ACR086 331,054.00 8,034,840.00 1,335.00 135 -80 70.00
ACR087 330,998.00 8,034,920.00 1,344.00 143 -84 51.00
ACR088 331,210.00 8,034,810.00 1,331.00 136 -81 40.00
ACR089 330,878.00 8,034,647.00 1,338.00 141 -81 48.00
ACR090 330,937.00 8,034,565.00 1,343.00 130 -80 50.00
ACR091 331,638.00 8,033,946.00 1,332.00 135 -80 50.00
ACR091B 331,634.00 8,033,947.00 1,332.00 114 -82 85.00
ACR092 331,528.00 8,033,891.00 1,340.00 134 -80 75.00
ACR093 331,422.00 8,033,823.00 1,360.00 140 -82 76.00
ACR094 331,370.00 8,033,725.00 1,360.00 150 -79 84.00
ACR095 331,213.00 8,033,634.00 1,372.00 135 -82 72.00
ACR096 331,511.00 8,033,634.00 1,348.00 135 -80 36.00
ACR097 330,469.00 8,033,552.00 1,442.00 138 -79 76.00
ACR098 330,419.00 8,033,447.00 1,469.00 153 -80 73.00
ACR099 330,356.00 8,033,362.00 1,443.00 107 -78 80.00
ACR100 330,581.00 8,033,745.00 1,405.00 135 -80 76.00
ACR101 330,365.00 8,033,739.00 1,398.00 135 -80 72.00
ACR102 331,575.00 8,033,759.00 1,339.00 133 -84 95.00
ACR103 331,670.00 8,033,820.00 1,330.00 141 -82 93.00
ACR123 331,127.00 8,034,386.00 1,355.00 140 -80 90.00
BHID Eastings
ARC50
Northings
ARC50
Elevation Azimuth Dip Depth
ACR126 331,048.00 8,034,327.00 1,347.00 144 -81 90.00

Prospect Resources Limited | ACN 124 354 329 | W: prospectresources.com.au | Phone: +61 8 9217 3300

Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Email: [email protected]

Page 23 of 26

ACR128 330,955.00 8,034,265.00 1,361.00 137 -80 90.00
ACR134 331,775.00 8,034,809.00 1,455.00 128 -81 130.00
ACR136 330,880.00 8,034,207.00 1,318.00 141 -81 90.00
ACR139 331,030.00 8,033,704.00 1,387.00 147 -83 70.00
ACR140 330,758.00 8,033,883.00 1,407.00 140 -82 80.00
ACR142 330,952.00 8,033,644.00 1,398.00 147 -81 50.00
ACR145 331,109.00 8,033,644.00 1,381.00 130 -81 100.00
ACR146 331,110.00 8,033,772.00 1,379.00 146 -82 85.00
ACR147 331,199.00 8,033,824.00 1,388.00 144 -83 100.00
ACR148 331,291.00 8,033,864.00 1,384.00 128 -80 103.00
ACR149 331,499.00 8,033,794.00 1,347.00 138 -79 79.00
ACR152 331,177.00 8,033,722.00 1,387.00 135 -80 109.00
ACR153 331,269.00 8,033,768.00 1,384.00 140 -82 105.00
ACR154 331,349.00 8,033,852.00 1,370.00 137 -80 105.00
ACR155 331,377.00 8,033,946.00 1,399.00 136.3 -81 102.00
ACR156 331,162.00 8,033,601.00 1,377.00 142 -81 82.00
ACR157 331,033.00 8,033,855.00 1,390.00 137 -81 110.00

Phase 5 (RC)

BHID Eastings
ARC50
Northings
ARC50
Elevation Azimuth Dip Depth
ACR168 330,860 8,034,086 1,372 126 -79 110.00
ACR169 330,772 8,034,020 1,382 142 -76 151.00
ACR170 330,689 8,033,956 1,403 134 -79 160.00
ACR171 331,120 8,034,130 1,377 123 -82 61.00
ACR172 331,053 8,034,079 1,371 123 -80 113.00
ACR173 332,551 8,035,054 1,305 179 -60 99.00
ACR174 330,993 8,034,036 1,370 134 -81 114.00
ACR175 332,451 8,035,072 1,305 180 -60 97.00
ACR176 330,939 8,034,009 1,363 135 -80 120.00
ACR177 332,359 8,035,050
1,301

180
-60 90.00
ACR178 332,453 8,035,250
1,296

180
-60 121.00
ACR179 330,814 8,034,150
1,380

135
-80 160.00
ACR182 332,247 8,035,150
1,289

180
-60 109.00
ACR183 331,225 8,034,135
1,395

135
-80 131.00
ACR184 331,152 8,034,065 1,383 135 -80 126.00
ACR185 331,081 8,034,024 1,386 135 -80 130.00

Prospect Resources Limited | ACN 124 354 329 | W: prospectresources.com.au | Phone: +61 8 9217 3300

Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Email: [email protected]

Page 24 of 26

331,011 8,033,940 1,384 135 -80 118.00
331,197 8,034,041 1,389 135 -80 140.00
331,096 8,033,967 1,397 135 -80 121.00

Phase 6 (RC) – Six RC holes (427m) ACR 189 - 194 drilled on satellite ore body , and not included in this MRE

Phase 7 (Metallurgical test drilling, targeted the Main Pegmatite ) _ Samples not yet tested

BHID Eastings
ARC50
Northings
ARC50
Elevation Azimuth Dip Depth
ACD082 331,614 8,034,364 1,339 135 -80 54.90
ACD083 331,537 8,034,312 1,344 135 -80 35.40
ACD084 331,351 8,034,053 1,404 135 -80 29.50
ACD085 331,383 8,034,081 1,376 135 -80 40.00
ACD086 331,409 8,034,102 1,373 135 -80 35.50
ACD087 331,294 8,034,028 1,381 135 -80 20.50
ACD088 331,351 8,034,038 1,389 135 -80 28.00
ACD089 331,310 8,034,009 1,401 135 -80 25.00
ACD090 331,330 8,033,992 1,392 135 -80 25.52
ACD091 331,351 8,033,959 1,387 135 -80 16.50
ACD092 331,394 8,034,060 1,404 135 -80 29.50
ACD093 331,433 8,034,092 1,401 135 -80 31.00
ACD094 331,465 8,034,107 1,396 135 -80 28.00
ACD095 331,493 8,034,124 1,384 135 -80 14.80
ACD096 331,494 8,034,128 1,379 135 -80 20.50
ACD097 331,300 8,034,096 1,407 135 -80 23.50
ACD098 331,389 8,034,220 1,399 135 -80 36.60
ACD099 331,388 8,034,219 1,377 135 -80 36.50
ACD100 331,337 8,034,176 1,400 135 -80 43.00
ACD101 331,333 8,034,121 1,410 135 -80 40.00
ACD102 331,296 8,034,165 1,410 135 -80 44.00
ACD103 331,275 8,034,132 1,408 135 -80 36.00
ACD104 331,275 8,034,205 1,400 135 -80 55.00
ACD105 331,243 8,034,227 1,396 135 -80 35.85
ACD106 331,309 8,034,273 1,372 135 -80 44.50
ACD107 331,163 8,034,170 1,369 135 -80 40.00
ACD108 331,183 8,034,315 1,354 135 -80 46.00
ACD109 331,183 8,034,321 1,376 135 -80 40.00

Prospect Resources Limited | ACN 124 354 329 | W: prospectresources.com.au | Phone: +61 8 9217 3300

Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Email: [email protected]

Page 25 of 26

ACD110 331,404 8,034,319 1,364 135 -80 40.00
ACD111 331,451 8,034,259 1,377 135 -80 29.00

Prospect Resources Limited | ACN 124 354 329 | W: prospectresources.com.au | Phone: +61 8 9217 3300 Suite 6, 245 Churchill Ave. Subiaco WA 6008 | Email: [email protected]

Page 26 of 26