PROSPECT RESOURCES LIMITED — Capital/Financing Update 2021

Jul 21, 2021

Arcadia Lithium Project Ownership Increased to 87%

Prospect Resources Limited (ASX: PSC, FRA:5E8) (“ Prospect ” or “ the Company ”) is pleased to announce that it has completed the transaction to increase its ownership in the Arcadia Lithium Project (“ Arcadia” or “the Project ”) by 17% to 87%.

Following receipt of requisite approvals (including Prospect shareholder approval), completion of this transaction has resulted in the issue of 9,497,680 new fully paid Prospect ordinary shares and the payment of A$1,187,210 cash to Farvic Consolidated Mines Pvt Ltd ( Farvic ). Prospect Resources now has 383,523,535 shares on issue.

The shares issued to Farvic are subject to a voluntary escrow, with 25% of the shares set to be released every 6 months.

Prospect Managing Director, Sam Hosack, said “Completing the Farvic transaction provides an immediate benefit to Prospect Resources as it now owns an additional 17% of the quality Arcadia Lithium project.”

“The increase in ownership will have a major positive impact on our funding of the Arcadia Lithium project.”

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

ENDS

For further information, please contact:

Nicholas Rathjen Head of Corporate Development nrathjen@prospectresources.com.au

Prospect Resources Limited | ACN 124 354 329 | W: prospectresources.com.au

Level 2, 33 Richardson Street. West Perth WA 6005 | Email: info@prospectresources.com.au

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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 high purity petalite and spodumene concentrates. Arcadia is one of the most advanced lithium projects globally, with a Definitive Feasibility Study, Offtake Partners secured and a clear pathway to production.

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.

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 confirms that for the purposes of Listing Rule 5.19.2, all material assumptions underpinning the information continue to apply and have not materially changed

Prospect Resources Limited | ACN 124 354 329 | W: prospectresources.com.au

Level 2, 33 Richardson Street. West Perth WA 6005 | Email: info@prospectresources.com.au

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