PROSPECT RESOURCES LIMITED — Capital/Financing Update 2023

Aug 29, 2023

ASX.PSC FRA.5E8

ASX ANNOUNCEMENT

30 August 2023

Drilling continues to demonstrate Omaruru potential

Highlights

• Follow-up Phase 1 RC drilling programme completed at Omaruru Lithium Project in central Namibia.
• Assay results have outlined a significant extension and thickening of the Karlsbrunn Main deposit root zone feeder system from surface, which remains open at depth to the northeast.
• First-pass scout drilling of geochemical soil anomalies at the Bergers deposit returned encouraging intersections of >1% Li2O within concealed pegmatite deposits.
• Significant strike extension potential to the north of Brockmans requires follow-up.
• Better results returned from latest drilling include:
  • 35m @ 0.85% Li2O from surface, including 5m @ 1.03% Li2O from 1m and 13m @ 1.04% Li2O from 12m (OMR046 – Karlsbrunn Main)
  • 18m @ 0.88% Li2O from surface and 13m @ 0.79% Li2O from 21m (OMR045 – Karlsbrunn Main)
  • 7m @ 0.84% Li2O from 16m, including 2m @ 1.46% Li2O from 16m and 2m @ 1.21% Li2O from 21m (OMR032 – Bergers NE)
• Phase 1 earn-in at Omaruru achieved, with Prospect now holding a 40% project interest.
• Decision made to proceed with Phase 2 earn-in to 51% majority interest at Omaruru.
• Phase 2 mapping, soil sampling and RC drilling programmes approved and soil sampling has commenced.

Prospect Resources Ltd (ASX: PSC, FRA:5E8) (Prospect or the Company) provides an update on its recently completed follow-up Phase 1 RC drilling programme at the Omaruru Lithium Project, located approximately 20km east of the regional centre of Karibib in central Namibia.

Prospect's Managing Director, Sam Hosack, commented:

"We are pleased with the results returned from our follow-up Phase 1 RC drilling at Omaruru. Karlsbrunn continues to demonstrate considerable scale potential, with the feeder system to its main deposit remaining open at depth and along strike. Drilling of select surface geochemical anomalies, identified in soil sampling undertaken by Prospect earlier this year, has also delivered highly encouraging results at prospects such as Bergers, with high-grade intercepts returned within concealed pegmatite deposits."

"Having now satisfied the Phase 1 earn-in spend, and achieved the uplifted 40% interest in Omaruru, we have elected to proceed into the Phase 2 earn-in. This decision was taken given the quality of the results delivered by our team at Omaruru to date, and the ongoing potential we see across the broader Omaruru property. We look forward to reporting the upcoming Phase 2 exploration activities and results, as they develop and become available into the next quarter."

Project Background

The Omaruru Lithium Project, comprising the EPL 5533 tenement, is centred on the village of Wilhelmstal, east of Karibib in Namibia and covers 175 square kilometres (see Figure 1). The tenement is located near a number of advanced mining projects, including Osino Resources' Twin Hills Gold Project and Lepidico's Karibib Lithium Project.

EPL 5533 contains 60 visible outcropping LCT pegmatites, with historical artisanal workings for gemstones common throughout the tenement and considerable prospectivity for the identification of further lithium-enriched deposits occurring below cover in the region.

Exploratory soil geochemical sample survey programmes completed by Prospect in 2023 have outlined coherent anomalies of LCT pathfinder elements that, after drilling, have outlined highly encouraging intersections of lithium (e.g. >1% Li2O at Bergers) within concealed, "blind" pegmatites.

Omaruru offers excellent potential for Prospect to delineate a maiden JORC-reportable lithium Mineral Resource and identify new deposits, as well as establishing a strategic position in Namibia, providing an attractive growth pipeline in the battery minerals sector and continued investment in a desirable jurisdiction of sub-Saharan Africa.

Prospect currently holds a 40% interest in Omaruru via its equivalent shareholding in Richwing Exploration (Pty) Ltd (Richwing), which is 60%-owned by Osino Resources Corp. (OSI.TSXV). Prospect can earn a further 11% interest in Richwing (and thus Omaruru) via an investment of US$0.56 million (the Phase 2 earn-in) over a 12-month period (refer Prospect ASX Announcement dated 29 September 2022).

Figure 1: Location map for Omaruru Lithium Project tenement in Namibia

Follow-Up Phase 1 RC Drilling Programme

Prospect completed its follow-up Phase 1 RC drilling programme at Omaruru (focussed on Karlsbrunn, Brockmans and regional prospects) in late June, with 27 holes completed for 1,839 metres. All assay results from this drilling have now been received and are reported in this release.

Karlsbrunn Main

Figure 2 shows the location of the RC drill holes completed at Karlsbrunn Main to date and the surrounding site infrastructure, including surveyed underground adit locations (yellow), outline of the mapped pegmatite for the lithium deposit, the historical surface disturbance and the interpreted strike of the mineralised root zone (the dashed purple line shows strike direction to the northeast).

It also outlines the anomalous lithia intersections returned from the vertical adits (in green text) that were recently reported by Prospect (refer ASX Announcement dated 26 April 2023), which outline the extent of high-grade mineralisation (~1% lithia) over a significant distance at Karlsbrunn Main.

Figure 2: Location map showing completed RC drill holes at Karlsbrunn Main

Five holes for 345m of drilling (OMR045-OMR049) were completed at the deposit as part of the follow-up Phase 1 programme (two holes were abandoned).

Significant intersections returned include:

• 35m @ 0.85% Li2O from surface, including 5m @ 1.03% Li2O from 1m, and 13m @ 1.04% Li2O from 12m (OMR046)
• 18m @ 0.88% Li2O from surface and 13m @ 0.79% Li2O from 21m (OMR045)

The drilling was aimed at extending the deposit's main root zone feeder system to the northeast. Drillholes OMR045 and 046 indicated a thickening of mineralisation in this location and returned excellent widths of higher-grade lithium, with the system still open in that direction. Additional soil geochemical sampling in this corridor to the northeast will be undertaken as part of the Phase 2 exploration programme, and drilling will then be employed to target potential buried extensions of the root zone in that region.

The lithium mineralisation at Karlsbrunn Main appears zoned either side of an unmineralised quartz core, is dominated by lepidolite and petalite, and is hosted in a folded rock sequence of marbles and calc-silicates.

Bergers

The Bergers deposit is located about 4.5 km to the east of the Karlsbrunn Main deposit and consists of a central area of subdued outcropping lithium mineralisation (see Figure 3).

On 26 April 2023, Prospect announced the results of a geochemical soil sampling programme over Omaruru, which included grids over interpreted, concealed pegmatites at Bergers NE and Bergers SW.

The soil sample results were very encouraging and showed strong, cohesive anomalies in LCT pathfinder elements over both the geochemical grids at Bergers.

During the follow-up Phase 1 programme, 431m of first-pass exploratory scout drilling was completed in seven (7) holes covering the Bergers NE and Bergers Central areas. The Bergers SW area was found to be too challenging to drill with a conventional RC rig and is planned to be targeted in Phase 2 using a more suitable machine for the hilly terrain.

The maiden drilling programme completed over Bergers produced positive results, including 7m @ 0.84% Li2O (OMR032) from only 16m depth (at Bergers NE), where no pegmatite outcrop was visible, but had been inferred from the overlying soil geochemical anomalies (Figure 4).

This downhole intersection included two separate higher-grade zones of lithium mineralisation in the form of petalite, that returned 2m @ 1.46% Li2O from 16m and 2m @ 1.21% Li2O from 21m. Further drilling is required down dip of OMR032, to determine continuity and widths of the high grade mineralisation.

In addition, drillhole OMR037 at Bergers Central, generated 3m @ 0.71% Li2O from 25m, interpreted to be petalite mineralisation. It also remains open at depth and will be targeted during the planned Phase 2 exploration programme.

The limited scout drilling programme completed for Bergers demonstrates the broader high-grade lithium potential for the Omaruru Project. It also shows that the geological mapping and follow-up soil geochemical sampling completed by the Prospect exploration team here were very effective firstpass lithium exploration techniques for wider use at Omaruru.

Figure 3: Detailed map showing location of mapped pegmatite occurrences at Omaruru

Figure 4: Regional Map showing encouraging first pass assay results at Bergers

Brockmans

The Brockmans area was targeted by 10 holes for 712m during the follow-up Phase 1 programme, with 7 holes positioned close to the previous high-grade intersection in drill hole OMR018 (6m @ 1.30% Li2O from 13m; see Prospect ASX Announcement dated 28 March 2023).

The drilling failed to extend the zone laterally, with only one hole (OMR027) returning an anomalous intercept of 2m @ 0.67% Li2O from 21m. This may indicate that that the higher-grade zone in OMR018 resulted from a thickening or flexure in the pegmatite intrusive there.

There remains a 500m section north of OMR018 at Brockmans that has not been drilled comprehensively to date and this area is considered a lithium target based on the thick pegmatite mapped in that locality.

The other three holes completed at Brockmans did not intersect anomalous grades of lithium, although holes OMR024 and 025, completed to test a geochemical soil anomaly at Brockmans SW, cannot yet be considered a definitive test of the prospectivity given the anomaly stretches over at least 200m of strike.

Karlsbrunn NE

Four short RC holes for 270m targeted a diffuse geochemical soil anomaly at this prospect, with two holes collared into the hanging wall marble host rock and two clipping the edge of the soil anomaly producing low-grade results.

The Karlsbrunn NE soil grid is planned to be extended in Phase 2 to better define that anomaly (for future drilling), which is located just over a 1 km northeast of Karlsbrunn Main (see Figure 5).

Figure 5: Regional Map showing recent drilling (yellow dots) and proposed Phase 2 Exploration

Geological Mapping

During the Phase 2 programme, the area adjacent and southeast of Karlsbrunn Main is set to be geologically mapped and sampled in more detail, with early reconnaissance and satellite imagery over that region indicating the presence of numerous pegmatite swarms with potential petalite mineralisation present (target location is delineated in Figure 5).

Geochemical Soil Sampling

Prospect completed detailed soil geochemical sampling at Omaruru over eight separate grids in January (results were reported in Prospect ASX Announcement dated 26 April 2023).

Follow-up drilling of lithium targets delineated from that work has proved that this early-stage exploration technique has been effective for Omaruru, using the LCT pathfinder elements analysed.

The identification of "blind", concealed lithium mineralisation as petalite at Bergers NE and Bergers Central during the current drilling campaign is testament to its value being more widely employed at the Omaruru Project.

As such, the upcoming Phase 2 exploration work is set to expand and infill soil sample grids northeast and south of Karlsbrunn Main, and northeast of the original Spirit SW grid, where it adjoins the historical Spirit mine workings and has previously generated an intercept of 6m @ 0.72% Li2O

(KBR010) in RC drilling completed by Osino Resources Corp. (see Prospect ASX Announcement dated 29 September 2022). A 700m section of intermittent pegmatite strikes NE-SW in this region and surface lithium mineralisation is prevalent.

The new soil sampling work planned adjacent to Spirit is aimed at generating new concealed lithium targets in "blind" pegmatite deposits.

Locations of the newly proposed soil sampling grids adjacent to Karlsbrunn Main and Spirit are shown on Figure 5 above.

Phase 2 Programme

With completion of the Phase 1 earn-in to 40% of the Omaruru Project, the decision to move forward into Phase 2 earn-in has been taken by Prospect.

Planned Phase 2 exploration activities include:

• Expand and infill geochemical sample grids at Karlsbrunn NE and Spirit.
• Detailed geological mapping and sampling of the prospective region SE of Karlsbrunn Main.
• Follow up mixed RC/RAB drilling of targets at Karlsbrunn NE after soil survey extensions.
• RAB/light RC drilling infilling and extending anomalous results located at Bergers Central.
• RC drilling to the north of Brockmans, where 500m of strike remains lightly tested.

Other drilling targets exist at Karlsbrunn Main to the northeast, where higher-grade lithium was recently identified in a root feeder zone in holes OMR045-046.

Bergers SW is a prospective target, but hilly terrain needs an alternative drilling solution (light RAB). Similarly, Petalite SW was also identified as a target by soil sampling but is yet to be drilled.

The main objective of the Phase 2 exploration programme is to continue proving up strike extensions of existing or new, coherent indications of lithium-enriched LCT pegmatite deposits, with a focus on targeting higher grades and potential delineable Mineral Resources across the district within EPL 5533.

Upon planned completion of the Stage 2 earn-in, Prospect will hold a 51% majority stake in the Richwing JV with Osino Resources (and thus the Omaruru Lithium Project).

This release was authorised by Sam Hosack, Managing Director

For further information, please contact:

Sam Hosack Managing Director shosack@prospectresources.com.au Ian Goldberg Chief Financial Officer igoldberg@prospectresources.com.au

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

Prospect Resources Limited (ASX: PSC, FRA:5E8) is an ASX listed company focused on the exploration and development of mining projects, specifically battery and electrification minerals, in Zimbabwe and the broader sub-Saharan African region.

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 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 Targets and 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 Chief 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 (CP) as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". 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.

Prospect confirms it is not aware of any new information or data which materially affects the information included in the original market announcements. Prospect confirms the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcements.

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.

Hole_ID	Drill Type	Deposit	DH_East	DH_North	DH_RL	Datum	DH_Dip	DH_Azimuth	DH_Depth
OMR023	RC	Brockmans	614451	7570587	1461	UTM_WGS84_33S	-60	135	100
OMR024	RC	Brockmans SW	613996	7569288	1493	UTM_WGS84_33S	-60	193	114
OMR025	RC	Brockmans SW	613997	7569285	1493	UTM_WGS84_33S	-60	163	60
OMR026	RC	Brockmans	614388	7569725	1477	UTM_WGS84_33S	-60	135	60
OMR027	RC	Brockmans	614364	7569657	1484	UTM_WGS84_33S	-60	135	52
OMR028	RC	Brockmans	614408	7569782	1478	UTM_WGS84_33S	-62	135	62
OMR029	RC	Brockmans	614341	7569736	1482	UTM_WGS84_33S	-60	135	72
OMR030	RC	Brockmans	614329	7569676	1488	UTM_WGS84_33S	-68	135	66
OMR031	RC	Brockmans	614343	7569597	1484	UTM_WGS84_33S	-60	135	44
OMR032	RC	Bergers NE	615612	7569688	1495	UTM_WGS84_33S	-60	137	36
OMR033	RC	Bergers NE	615686	7569805	1499	UTM_WGS84_33S	-60	120	60
OMR034	RC	Bergers NE	615486	7569530	1498	UTM_WGS84_33S	-90	0	60
OMR035	RC	Bergers NE	615223	7569513	1515	UTM_WGS84_33S	-60	140	60
OMR036	RC	Bergers NE	615269	7569460	1506	UTM_WGS84_33S	-60	320	79
OMR037	RC	Bergers Central	615147	7569333	1500	UTM_WGS84_33S	-60	110	85
OMR038	RC	Bergers Central	614875	7569326	1509	UTM_WGS84_33S	-60	110	51
OMR039	RC	Brockmans	614328	7569678	1489	UTM_WGS84_33S	-60	315	82
OMR040	RC	Hillside SW	613255	7570137	1437	UTM_WGS84_33S	-60	135	81
OMR041	RC	Karlsbrunn NE	611430	7569139	1431	UTM_WGS84_33S	-60	110	60
OMR042	RC	Karlsbrunn NE	611501	7569107	1435	UTM_WGS84_33S	-60	290	90
OMR043	RC	Karlsbrunn NE	611482	7569088	1437	UTM_WGS84_33S	-60	260	60
OMR044	RC	Karlsbrunn NE	611492	7569142	1431	UTM_WGS84_33S	-60	325	60
OMR045	RC	Karlsbrunn Main	610702	7568408	1449	UTM_WGS84_33S	-60	300	100
OMR046	RC	Karlsbrunn Main	610701	7568408	1449	UTM_WGS84_33S	-60	270	93
OMR047	RC	Karlsbrunn Main	610555	7568504	1452	UTM_WGS84_33S	-60	307	91
OMR048	RC	Karlsbrunn Main	610558	7568502	1452	UTM_WGS84_33S	-60	127	36
OMR049	RC	Karlsbrunn Main	610569	7568505	1452	UTM_WGS84_33S	-60	165	25

APPENDIX 1: Drill hole collar locations for Omaruru Lithium Project

APPENDIX 2: Significant drill hole intersections for Omaruru Lithium Project

Hole ID	Deposit		From (m)	To (m)	Width (m)	Li2O_pct
OMR027	Brockmans		21	23	2	0.67
OMR032	Bergers NE		16	23	7	0.84
		incl.	16	18	2	1.46
		incl.	21	23	2	1.21
OMR037	Bergers Central		25	28	3	0.71
OMR045	Karlsbrunn Main		0	18	18	0.88
			21	34	13	0.79
OMR046	Karlsbrunn Main		0	35	35	0.85
		incl.	1	6	5	1.03
		incl.	12	25	13	1.04

JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

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

Criteria	JORC Code explanation	Commentary
Samplingtechniques	•Nature and quality of sampling (egcut channels, random chips, orspecific specialised industrystandard measurement toolsappropriate to the minerals underinvestigation, such as down holegamma sondes, or handheld XRFinstruments, etc). These examplesshould not be taken as limiting thebroad meaning of sampling.•Include reference to measures takento ensure sample representivity andthe appropriate calibration of anymeasurement tools or systems used.•Aspects of the determination ofmineralisation that are Material tothe Public Report.•In cases where 'industry standard'work has been done this would berelatively simple (eg 'reversecirculation drilling was used to obtain1 m samples from which 3 kg waspulverised to produce a 30 g chargefor fire assay'). In other cases moreexplanation may be required, suchas where there is coarse gold thathas inherent sampling problems.Unusual commodities ormineralisation types (eg submarinenodules) may warrant disclosure ofdetailed information.	•At the Omaruru Project, the currentPhase 1 drill samples were 1,473percussion chips generated from a truckmounted Thor Cobra 5000 rig, using adouble tube reverse circulation (RC)technique. Samples were collected fromthe cyclone and riffle split on site beforebagging.•3 x 3 kg samples were collected everymetrein triplicate, one of which was sentfor pulverizing and assaying, in additionto a smaller sample retained forreference and logging.•381 x 3kg samples were channel cutfrom the five underground adits atKarlsbrunn. Samples were takencontinuously at 1m intervals and assaysare pending.•In addition, 2kg geochemical soilsamples were collected at 20m intervalsalong lines 100m apart fromapproximately 30cm deep holes. Eightseparate grids targeting extensions ofthe known pegmatites at Karlsbrunn,Brockmans, Hillside and Spirit. Assayresults and interpretation are pending.•Certified Reference Materials (producedby AMIS of Johannesburg), blanks andfield duplicates were inserted into eachsample batch. (5% of total being CRMs,5% blanks, 5% field duplicates and 5%laboratory duplicates). This was done byALS Okahandja who undertook thesample preparation, as well as blank andCRM insertion, under instruction from theProject Geologist.•The AMIS CRMs used were AMIS 339(2.27%Li), AMIS 342(1612ppm Li),AMIS 565 (5424ppm Li), AMIS 682(8407ppm Li), AMIS 683 (2023ppm Li)and AMIS 684 (4544ppm Li)•All chip samples were taken in Companytransport to ALS laboratory in Okahandja

where they were pulverized to produce a 30g charge and then dispatched by courier to ALS-Chemex , Johannesburg.

		The soil samples were sieved to -80#,and then the 30g charges were sent toALS Okahandja. All Phase 1 sampleswere analysed by multi-element ICP(ME-MS61, following four aciddissolution.
Drillingtechniques	•Drill type (eg core, reversecirculation, open-hole hammer,rotary air blast, auger, Bangka,sonic, etc) and details (eg corediameter, triple or standard tube,depth of diamond tails, facesampling bit or other type, whethercore is oriented and if so, by whatmethod, etc).	Double tube, 133mmreverse circulation.•A Thor truck mounted rig was used, witha 1200cfmKirloskar compressor,operated by Hammerstein Drilling.•6m rods were used, and the hole airblasted to allow sample recovery via acyclone every 1m.
Drill samplerecovery	•Method of recording and assessingcore and chip sample recoveries andresults assessed.•Measures taken to maximise samplerecovery and ensure representativenature of the samples.•Whether a relationship existsbetween sample recovery and gradeand whether sample bias may haveoccurred due to preferentialloss/gain of fine/coarse material.	•RC chip samples were bagged directlyfrom the cyclone, and immediatelyweighed; virtually all samples weighedmore than 30kg, averaging 35kg. Thesample was then riffle split to produce 3subsamples (a primary, field duplicateand reference sample) of approximately3kg each.•Material seems largely homogenous, andno relationship has been detectedbetween grain size and assayed grade.
Logging	•Whether core and chipsampleshave been geologically andgeotechnically logged to a level ofdetail to support appropriate MineralResource estimation, mining studiesand metallurgical studies.•Whether logging is qualitative orquantitative in nature. Core (orcostean, channel, etc) photography.•The total length and percentage ofthe relevant intersections logged.	•A sample of the RC chips was washedand retained in a chip tray. Chip sampleshave been geologically logged at 1mintervals, with data recorded inspreadsheet format using standardizedcodes. Sample weight, moisture content,lithologies, texture, structure, induration,alteration, oxidation and mineralisationwere recorded.•Specific gravities (SGs) have not yetbeen measured.•The work is undertaken according toProspect Resources' standardprocedures and practices, which are inline with international best practice, andoverseen by the CP. The CP considersthat the level of detail and quality of thework is appropriate to support the currenttarget estimate.
Sub-samplingtechniquesand samplepreparation	•If core, whether cut or sawn andwhether quarter, half or all coretaken.•If non-core, whether riffled, tubesampled, rotary split, etc andwhether sampled wet or dry.•For all sample types, the nature,	•RC samples were bagged straight fromthe cyclone. An average of 35kg ofsample was produced per meter (acalculated recovery of around of 85%was achieved).•The dry samples were split using a 3-stage riffle splitter, with three, 3kg

	quality, and appropriateness of thesample preparation technique.•Quality control procedures adoptedfor all sub-sampling stages tomaximise representivity of samples.•Measures taken to ensure that thesampling is representative of the insitu material collected, including forinstance results for fieldduplicate/second-half sampling.•Whether sample sizes areappropriate to the grain size of thematerial being sampled.	samples being collected per 1m interval.Excess material was dumped in a landfill.•For RC chip samples, field duplicateswere produced every 20th sample.•The 3kg samples were crushed andmilled (90%, pass -75µm) at the ALSLaboratory in Okahandja. Pulpduplicates, blanks and standard material(produced by AMIS) were inserted inidentical packets to the samples, one per20 normal samples for each of theblanks, standards and lab duplicates.This was done under the supervision of aqualified geologist or experiencedgeotechnician.
Quality ofassay dataandlaboratorytests	•The nature, quality andappropriateness ofthe assaying andlaboratory procedures used andwhether the technique is consideredpartial or total.•For geophysical tools,spectrometers, handheld XRFinstruments, etc, the parametersused in determining the analysisincluding instrument make andmodel,reading times, calibrationsfactors applied and their derivation,etc.•Nature of quality control proceduresadopted (eg standards, blanks,duplicates, external laboratorychecks) and whether acceptablelevels of accuracy (ie lack of bias)and precision have beenestablished.	•All samples were analysed by multielement ICP (ME-MS61).All assayswere performed at ALS-ChemexJohannesburg•For QAQC, a 5% tolerance on CRM andduplicate results was permitted. Of the52 blank samples inserted, only one wasdeemed necessary for re-assay(OMR/053 –suspected sample mixing atpre-prep lab). Of the 100 CRMs assayedonly two fell outside the acceptablerange and were sent for re-assay(OMR003/49 and OMR006/50).•Out of 48 pulps produced from fieldduplicates, an overall correlation of 98%was achieved, with only two fallingoutside acceptable limits, OMR005/20and OMR006/45 have been submittedfor re-assay. For the 82 lab duplicates, acorrelation of 96% was achieved, withonly one sample being sent for re-assay(AMR005/56).•The conclusion is that ALSJohannesburg accuracy and ALSOkahandja prep-preparation haveproduced acceptable analytical results.
Verification ofsampling andassaying	•The verification of significantintersections by either independentor alternative company personnel.•The use of twinned holes.•Documentation of primary data, dataentry procedures, data verification,data storage (physical andelectronic) protocols.•Discuss any adjustment to assaydata.	•The Project Geologist was on site duringmost of the drilling and sample prepreparation. The significant intersectionsand geological were also shown to stafffrom Osino Resources and the NamibianGeological Survey.•All hard copies of data are retained atboth the Osino Resource Explorationoffices, in Omaruru, Namibia, andProspect's regional Harare Office. Allelectronic data resides in Excel™format

		on the office desktop, with back-upsretained on hard-drives in a safe, and inan Access™database in a data cloudoffsite, managed by Prospect Resources.•No drillholes from the current campaignhave been twinned.•Logging and assay data capturedelectronically on Excel™spreadsheet,and subsequently imported in anAccess™database.•All assay results reported as Li ppm andover limits (>5,000ppmLi) as %,adjusted to the same units andexpressed as Li2O%.Similarly, Taassays are reported in ppm, butexpressed as Ta2O5.
Location ofdata points	•Accuracy and quality of surveysused to locate drill holes (collar anddown-hole surveys), trenches, mineworkings and other locations used inMineral Resource estimation.•Specification of the grid systemused.•Quality and adequacy of topographiccontrol.	•All drill holes were surveyed completed,with down-hole survey tool using anAzimuth Point System (APS) Single Shotsurvey method down-hole instrument ata minimum of every 30m and measuredrelative to magnetic north. Thesemeasurements have then beenconverted from magnetic to UTM Zone33 South values. No significant holedeviation is evident in plan or section.•All collar positions have been initiallysurveyed using a handheld GPS andmarked with concrete. Then DGPS unitwas employed by Strydom andAssociates surveyors.•Detailed soil geochemistry wasundertaken along the structuralextensions of the Karlsbrunn, Bergers,Brockmans, Spirit and Hillsidepegmatites.
Data spacinganddistribution	•Data spacing for reporting ofExploration Results.•Whether the data spacing anddistribution is sufficient to establishthe degree of geological and gradecontinuity appropriate for the MineralResource and Ore Reserveestimation procedure(s) andclassifications applied.•Whether sample compositing hasbeen applied.	•Phase 1 drill holes were drilled at anaverage of 30 to 50m intervals alongstrike and down dip of the major mappedpegmatites.In addition, individual andpairs of holes were used to target soilgeochem anomalies on extensions ofthe Bergers NE, Karlsbrunn NE andHillside deposits. The azimuth andinclination of each hole varied dependingon the attitude of the surface exposure ofthe various pegmatite bodies.•Detailed soil geochemistry wasundertaken on grids, targeting thestructural extensions of the Karlsbrunn,Brockmans, Spirit and Hillsidepegmatites. Lines were surveyed

		southeast-northeast at 50m intervals,with samples collected every 20m.
Orientation ofdata inrelation togeologicalstructure	•Whether the orientation of samplingachieves unbiased sampling ofpossible structures and the extent towhich this is known, considering thedeposit type.•If the relationship between thedrilling orientation and the orientationof key mineralised structures isconsidered to have introduced asampling bias, this should beassessed and reported if material.	•Drilling was planned tointersect thesepegmatites as near to perpendicular aspossible.
Samplesecurity	•The measures taken to ensuresample security.	•RC samples were placed in sealed bagsto prevent movement and mixing.Minimal preparation was done on site.Samples were transported in companyvehicles accompanied by a seniortechnician to the pre-preparationlaboratory (ALS Okahandja).
Audits orreviews	•The results of any audits or reviewsof sampling techniques and data.	•The CP (Roger Tyler),iscontinuallyauditing sampling and logging practices.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	Commentary
Mineraltenement andland tenurestatus	•Type, reference name/number,location and ownership includingagreements or material issueswith third parties such as jointventures, partnerships,overriding royalties, native titleinterests, historical sites,wilderness or national park andenvironmental settings.•The security of the tenure heldat the time of reporting alongwith any known impediments toobtaining a licence to operate inthe area.	•EPL5533, known as Wilhelmstal (175sq km)is held by Osino Resources under the nameof local company subsidiary, RichwingExploration (Pty) Limited. A ShareholderAgreement was signed with Osino ResourcesCorp. (OSI.TSXV) in September 2022 forProspect toprogressively acquire up to 51%and potentially up to 85%of Richwing(ASXAnnouncement 29 September 2022).•There are no known environmental or landtitle issues or impediments. Theenvironmental certificate hasbeen renewed.•Rural farmland –game grazing, low densitypopulation.Access rights to the two farms atAlbrechtshohe which cover the main targetareas, have been established by contractualagreements, signed in October 2022.
Explorationdone by otherparties	•Acknowledgment and appraisalof exploration by other parties.	•AGA and Bafex covered the area with gridbased soil geochemistry in the early 2000s.2,093 multielement results available. Lithiumsoil values average 32 ppm and peak at 204ppmLi. No known lithium targeted drilling hadbeen completed historically at Omaruru.•In 2018, Dr Michael Cronwright of CSAGlobal undertook a compilation of all knowndata and an assessment of the pegmatiteoutcrops for Osino.•A similar exercise was undertaken by MikeVenter of PH Consulting in 2019, whichconsidered more of the regional historical soilgeochemistry and tectonic models.•More detailed mapping was subsequentlyundertaken by the CP, Nico Scholtz.•In 2020, Osino drilled 16 RC holes (1,942m)six at the Karlsbrunn deposit, with five at theSpirit and five at the northern extremity ofBrockmans.
Geology	•Deposit type, geological setting,and style of mineralisation.	•The project area hosts multiple outcroppingpegmatites, intruding Damara agedmetasediments. The pegmatites belong tothe lepidolite-petalite subclass of the LCT(Lithium-Caesium-Tantalum) class. Theystrike approximately southwest-northeast, butvary in length, dip, and width along strike aswell as in depth extent and degree of erosion.•Those drilled during Prospect's Phase 1programme were the Karlsbrunnand

		Brockmans pegmatites.•The pegmatites are poorly to moderatelyzoned (but not symmetrically). The mainlithium bearing minerals are dominated bylepidolite and petalite, with sub-ordinatecookeite. In addition, disseminated tantaliteand cassiterite is present. Gangue mineralsare quartz, alkali feldspars and muscovite.
Drill holeInformation	•A summary of all informationmaterial to the understanding ofthe exploration results includinga tabulation of the followinginformation for all Material drillholes:oeasting and northing of thedrill hole collaroelevation or RL (ReducedLevel –elevation above sealevel in meters) of the drillhole collarodip and azimuth of the holeodown hole length andinterception depthohole length.•If the exclusion of thisinformation is justified on thebasis that the information is notMaterialand this exclusion doesnot detract from theunderstanding of the report, theCompetent Person shouldclearly explain why this is thecase.	•See Appendices 1 and 2.
Dataaggregationmethods	•In reporting Exploration Results,weighting averaging techniques,maximum and/or minimumgrade truncations (eg cutting ofhigh grades) and cut-off gradesare usually Material and shouldbe stated.•Where aggregate interceptsincorporate short lengths of highgrade results and longer lengthsof low grade results, theprocedure used for suchaggregation should be statedand some typical examples ofsuch aggregations should beshown in detail.•The assumptions used for anyreporting of metal equivalentvalues should be clearly stated.	•Borehole intersections were reported usingdownhole length weighted averagingmethods. No maximum or minimum gradetruncations were used. The mineralisation isconstrained to within the pegmatites.

Relationshipbetweenmineralisation widths andinterceptlengths	•These relationships areparticularly important in thereporting of Exploration Results.•If the geometry of themineralisation with respect tothe drill hole angle is known, itsnature should be reported.•If it is not known and only thedown hole lengths are reported,there should be a clearstatement to this effect (eg'down hole length, true width notknown').	•The drill holes were drilled with varyingazimuths and dips intended to intersect thepegmatites perpendicularly.•Virtually all holesintersected the pegmatitesas planned, though the pegmatites dobifurcate and vary in thickness.•There is undoubtedly some flexing of thesepegmatite bodies, which has caused dipvariation, but the general regional strikes aresouthwest-northeast.
Diagrams	•Appropriate maps and sections(with scales) and tabulations ofintercepts should be included forany significant discovery beingreported These should include,but not be limited to a plan viewof drill hole collar locations andappropriate sectional views.	•Maps are attached in the body of the report.
Balancedreporting	•Where comprehensive reportingof all Exploration Results is notpracticable, representativereporting of both low and highgrades and/or widths should bepracticed to avoid misleadingreporting of Exploration Results.	The Company states that all results have•been reported and comply with balancedreporting.
Othersubstantiveexplorationdata	•Other exploration data, ifmeaningful and material, shouldbe reported including (but notlimited to): geologicalobservations; geophysicalsurvey results; geochemicalsurvey results; bulk samples –size and method of treatment;metallurgical test results; bulkdensity, groundwater,geotechnical and rockcharacteristics; potentialdeleterious or contaminatingsubstances.	•Historical surface grab sampling was alsoconducted at all the exposed pegmatites. 93x approximately 3 kg samples were collectedand assayed at Act Labs Vancouver aftercrushing and milling at Act Labs Windhoek.From 93 samples collected,an average lithiagrade of 1.88%, with a maximum of 5.06%were returned(details –Prospect ASXAnnouncement 29 September 2022).•Reconnaissance mapping was undertakenduring the 2018 evaluation by Dr MichaelCronwright of CSA Global. Moredetailedmapping was completedby Nico Scholtz in2021, on behalf of Osino Resources.•In 2020, 16 RC holes for 1,942m were drilled;six at Karlsbrunn, five at Spirit and five at thenorthern extremity of Brockmans. Zones ofthick pegmatite were intercepted, notably onthe western side of Karlsbrunn. Bestintercepts were 8m at 1.2% lithia fromKBR006 and 23m at 0.99% lithia fromKBR007 (ASX Announcement 29 September2022).
Further work	•The nature and scale of plannedfurther work (eg tests for lateral	•Further work is planned to complete assayingof the geochemical soil samples collected in

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 commercially sensitive.

January 2023, the majority of which remain outstanding.

• Phase 2 RC drilling is planned to increase resource tonnages at both the Brockmans and Karlsbrunn Main deposits. Shallow RC and RAB drilling is proposed to further evaluate subsurface geology in areas indicating potential "blind" LCT pegmatite mineralisation, based on cohesive, anomalous pathfinder elements like lithium, caesium, rubidium and beryllium.