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PROSPECT RESOURCES LIMITED Capital/Financing Update 2020

Apr 16, 2020

65617_rns_2020-04-16_a8190050-0709-45ef-852d-3cf51f2de572.pdf

Capital/Financing Update

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Confirmation of Dispatch of Prospectus to Eligible Shareholders

African lithium developer, Prospect Resources Ltd (ASX: PSC, FRA:5E8) (“ Prospect ” or “ the Company ”) refers to the partially underwritten non-renounceable rights issue offer announced on 3 April 2020 (“ Offer ”). The Company wishes to confirm that the Prospectus and personalised Entitlement and Acceptance Form for the Offer were dispatched to eligible shareholders today.

Eligible shareholders are advised that the offer under the Prospectus is now open for subscription and the proposed closing date is Monday 4 May 2020.

The remaining indicative key dates of the Offer (as set out in page 2 of the Prospectus) are as follows:

OpeningDate 17 April 2020
Last dayto extend the ClosingDate of the Offer 29 April 2020
ClosingDate 4 May2020
Sharesquoted on a deferred settlement basis 5 May2020
Announcement of results of the Offer 7 May2020
Issue date/Securities entered into Shareholders’ security holdings/ 11 May 2020
Lodgement of Appendix 2A with ASX
Last Date to allot shortfall 3 months after
ClosingDate

Should shareholders have any enquiries relating to the rights issue please contact our General Manager of Corporate Affairs, Nicholas Rathjen, at [email protected] or Hugh Warner, Chairman, on 0413 621 652.

This release was authorised by Mr Hugh Warner, Executive Chairman of Prospect Resources Ltd.

ENDS

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Africa’s leading Well positioned Strong Project Path forward to Offtake Agreement battery mineral Lithium Resource Economics Financing, in place and company in regard to both demonstrated in Development and positioned to Scale and Grade DFS Production capitalise on Market Demand

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]

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For further information, please contact:

Nicholas Rathjen General Manager, Corporate Affairs [email protected]

About Prospect Resources Limited (ASX:PSC, FRA:5E8)

Prospect Resources Limited (ASX:PSC, FRA:5E8) 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.

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]

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