PROSPECT RESOURCES LIMITED — Capital/Financing Update 2023

Apr 25, 2023

ASX ANNOUNCEMENT 26 April 2023

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Adit samples deliver high grade lithium in Namibia

Highlights

• Underground adit sampling at Omaruru Project identifies extensive horizontal intersections of high-grade lithium mineralisation.

• Best results returned from the adit sampling include:

• 14m @ 1.21% Li2O (Adit JWA1)

• 10m @ 1.35% Li2O (Adit JWA1)

• 8m @ 1.11% Li2O (Adit JWA1)

• A detailed soil sampling programme at Omaruru also outlines significant geochemical anomalies with characteristic pathfinder signatures for LCT pegmatites.

• Grid-based surface sampling undertaken in locations along strike from mapped pegmatites and historical workings have generated subsurface extensions and several new positions of potential blind lithium mineralisation.

• Shallow, walk-up targets have been identified across numerous prospects with scout RC drill testing of these targets scheduled for Q2 2023.

• Phase 1 earn-in on Omaruru progressing efficiently and expected to be achieved in Q2 2023; Prospect investing US$1m over 12 months to reach initial 40% project interest.

• Additional drilling is being planned at the Brockmans prospect, where thick, flat-lying, higher-grade lithium intersections were returned from Phase 1 drilling.

Prospect Resources Ltd (ASX: PSC, FRA:5E8) ( Prospect or the Company ) is pleased to provide an update on the results and interpretation of its recently completed, comprehensive surface geochemical soil sampling programme across several prospects 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:

“The high-grade lithium results returned from the adit sampling programme at the Karlsbrunn prospect are extremely promising, and underscore the prospectivity of that broad mineralised system.”

“Additionally, a systematic and extensive soil sampling program undertaken across the Omaruru Project has provided the sort of results that we were targeting from this exercise. It is very pleasing to have identified a number of potential ‘under cover’ lithium mineralisation targets for prompt drill testing.”

“The sizeable surface footprint and strong concentration of some of these geochemical anomalies is very encouraging for the prospects of further discoveries in the short term at Omaruru. We now look forward to drilling these targets as part of our upcoming next-phase RC drilling programmes at Omaruru.”

Prospect Resources Limited ACN 124 354 329 Level 2, 33 Richardson Street. West Perth WA 6005 E: info@prospectresources.com.au W: prospectresources.com.au

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Project Background

The Omaruru Lithium Project, currently 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 (see Figure 2).

Omaruru offers excellent potential for Prospect to delineate a maiden JORC reportable lithium Mineral Resource and identify new deposits to build a project of sufficient scale, 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 20% interest in Omaruru via its equivalent shareholding in Richwing Exploration (Pty) Ltd ( Richwing ), which is 80%-owned by Osino Resources Corp. (OSI.TSXV). Prospect is currently earning a further 20% interest in Richwing (and thus Omaruru) via a Phase 1 investment of US$1m over a 12 month period (refer Prospect ASX Announcement dated 29 September 2022).

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

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Figure 2: Detailed map showing location of mapped pegmatite occurrences at Omaruru
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Karlsbrunn Adit Sampling

The Company completed detailed sampling of several extensive underground adits at the Karlsbrunn prospect, which pass laterally through the deposit at several locations. These adits were developed historically to extract petalite and gemstones from the pegmatite, including beryl (see Figure 3).

All assay results have now been received and identified extensive horizontal intersections of highgrade lithium mineralisation (as petalite and lepidolite) in numerous locations within the five adits sampled (see Figure 4 below).

This data set will be used to complement the drill hole data, in completing a maiden Mineral Resource estimate for Karlsbrunn later this year.

The highest-grade, horizontal, continuous sections from the adit sampling included:

• 14m @ 1.21% Li2O (Adit JWA1)

• 10m @ 1.35% Li2O (Adit JWA1)

• 8m @ 1.11% Li2O (Adit JWA1)

• 4m @ 1.73% Li2O (Adit EBA1)

• 4m @ 1.46% Li2O (Adit EBA1)

• 5m @ 1.17% Li2O (Adit EBA3)

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Figure 3: Prospect staff undertaking detailed underground adit sampling at Karlsbrunn

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Figure 4: Map showing results of Karlsbrunn adit sampling programme

Geochemical Soil Sampling Programme

Prospect also completed a detailed geochemical soil sampling programme over eight separate grids at the Omaruru Lithium Project in January 2023, with all 1,243 sample assays having now been received, and evaluation and interpretation of the data completed (Figure 5).

The grids were aligned with the general southwest-northeast strike of the geologically mapped LCT pegmatite occurrences and historical artisanal gemstone workings at Omaruru, and designed to identify sub-surface extensions of the previously identified lithium mineralisation (see Figure 6).

The aim was to generate exploratory drill targets over potential buried or “blind” economic, hard rock lithium mineralisation, as is apparent in mapped outcrop elsewhere throughout the Project area.

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Figure 5: Geochemical soil sampling field work undertaken at Omaruru Project in Namibia

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Figure 6: Regional Soil Geochemical Sample grids targeted during recent campaign

Sample grids are located to the northeast of the Karlsbrunn ore system, southwest of Spirit, southwest of Hillside, southwest and northeast of Brockmans, northeast and southwest of Bergers and southwest of the Petalite prospect.

To the west, the Karlsbrunn NE and Hillside SW soil grids show very strong, cohesive and concordant lithium (Li), beryllium (Be), caesium (Cs) and rubidium (Rb) anomalies in positions several hundred metres from the main outcropping pegmatites (see Figure 7a). The Spirit SW grid showed weaker anomalies but rock strata here are folded to strike north-south, which is not considered optimal for pegmatite emplacement in this district.

To the east, the Petalite SW and Brockmans SW grids have produced two new exploration drilling targets located 500m apart, which show coherent Li, Cs and Rb anomalies, whilst Brockmans NE showed diffuse anomalies for those same pathfinder elements.

The Bergers SW and Bergers NE geochemical sample grids have generated strongly coherent Li, Be and Rb anomalies in a complexly folded area approximately 1.2km apart (see Figure 7b).

These latter regions have never had any modern exploration evaluation and are compelling new targets to potentially grow a significant lithium mineral resource position for Prospect at Omaruru, given the strike lengths over which they have been defined.

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Exploration Drilling Targets

Karlsbrunn NE

The encouraging geochemical results and resultant interpretation has indicated that a 200-250m long, open ended, north-easterly extension to the Karlsbrunn deposit is apparent and requires drill testing (Figure 8). If additional lithium mineralisation is proved up here, strike extensions to the existing geochemical soil grids would be considered further to the NNE and SSW, based on the inferred strike.

Hillside SW

To the southwest of Hillside, a coherent, new 150-200m long target zone has been delineated, which could represent a fault offset of the existing Hillside lithium mineralisation (Figure 9).

Petalite SW

Diffuse, 100-150m long open ended soil anomaly located at far northern end of the geochemical grid; requires limited drill testing (Figure 10) and is a likely extension of the existing mapped Petalite pegmatite, directly to the northeast. If mineralisation is proved up, then strike extensions of the current soil geochemical grid to the NE towards the existing pegmatite outcrop will also be considered.

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Figure 7a: Geochemical Soil Sampling Grids (West) for Lithium

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Figures 7b: Geochemical Soil Sampling Grids (East) for Lithium
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Brockmans SW

A strong coherent, multi-element anomaly over at least 200m strike has been identified (see Figure 11), along with an additional likely extension of the main Brockmans mineralisation, which will be tested as part of follow-up drilling to the encouraging RC drilling intersections recently discovered there (see Prospect ASX announcement dated 28 March 2023).

Bergers SW

Two separate, 150-200m long diffuse geochemical anomalies (both open ended) require limited drill programmes to test extent, dip and lithium grade (Figure 12), and lie along strike with the Bergers Workings.

Bergers NE

A well-defined coherent soil anomaly over at least 500m of strike, requires drill testing (Figure 13).

Priority 1 drill targets have been defined for Karlsbrunn NE, Bergers NE and Brockmans SW, whilst Priority 2 targets exist at Bergers SW, Petalite SW and Hillside SW.

Prospect now plans to target these positions with shallow scout RC drilling, as part of the Phase 2 programme to test extensions of the recently reported lithium intersections returned from the main outcropping Karlsbrunn and Brockmans mineralised ore systems at Omaruru. This programme is scheduled to commence during the current quarter.

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Figure 8: Drilling Target Zone for Karlsbrunn NE area

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Figure 9: Drilling Target Zone for Hillside SW area

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Figure 10: Drilling Target Zone for Petalite SW area

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Figure 11: Drilling Target Zones for Brockmans SW area

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Figure 12: Drilling Target Zones for Bergers SW area

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Figure 13: Extensive Drilling Target Zone for Bergers NE area

Upcoming Programmes

Prospect expects to complete its Phase 1 earn-in to Omaruru during Q2 2023. Upcoming programmes over coming months will encompass infill and extensional RC drilling at the Brockmans deposit and limited drilling at Karlsbrunn to test extensions at further depth.

The Company is also set to complete first-pass, short-hole, scout RC drilling of the Priority 1 regional exploration targets identified from the geochemical soil sampling, as set out in this announcement.

Upon completion of the Phase 1 earn-in, Prospect will hold a 40% stake in Richwing (and thus the Omaruru Lithium Project).

Additional expenditure will then contribute to the Phase 2 earn-in at Omaruru, for which Prospect can spend US$560,000 over 12 months to gain a further 11% stake in Richwing, and thereby achieve a majority 51% ownership holding in that Namibian domiciled company (and the Omaruru Project).

This release was authorised by Sam Hosack, Managing Director

For further information, please contact:

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

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.

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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
Sampling	•Nature and quality of sampling (eg	•At the Omaruru Project, the Phase 1 drill
techniques	cut channels, random chips, or	samples were 952 percussion chips
	specific specialised industry	generated from a truck mounted Thor
	standard measurement tools	Cobra 5000 rig, using a double tube
	appropriate to the minerals under	reverse circulation (RC) technique.
	investigation, such as down hole	Samples were collected from the cyclone
	gamma sondes, or handheld XRF	and riffle split on site before bagging.
	instruments, etc). These examples	•3 x 3 kg samples were collected every
	should not be taken as limiting the	meter in triplicate, one of which was sent
	broad meaning of sampling.	for pulverizing and assaying, in addition
	•Include reference to measures taken	to a smaller sample retained for
	to ensure sample representivity and	reference and logging.
	the appropriate calibration of any	•381 x 3kg samples were channel cut
	measurement tools or systems used.	from the five underground adits at
	•Aspects of the determination of	Karlsbrunn. Samples were taken
	mineralisation that are Material to	continuously at 1m intervals and assays
	the Public Report.	are pending.
	•In cases where ‘industry standard’	•In addition, 1,243, 2kg geochemical soil
	work has been done this would be	samples were collected at 20m intervals
	relatively simple (eg ‘reverse	along lines 100m apart from
	circulation drilling was used to obtain	approximately 30cm deep holes. Eight
	1 m samples from which 3 kg was	separate grids targeting extensions of
	pulverised to produce a 30 g charge	the known pegmatites at Karlsbrunn,
	for fire assay’). In other cases more	Brockmans, Hillside, Spirit, Petalite and
	explanation may be required, such	Bergers. All assay results have been
	as where there is coarse gold that	received.
	has inherent sampling problems.	•Certified Reference Materials (produced
	Unusual commodities or	by AMIS of Johannesburg), blanks and
	mineralisation types (eg submarine	field duplicates were inserted into each
	nodules) may warrant disclosure of	sample batch. (5% of total being CRMs,
	detailed information.	5% blanks, 5% field duplicates and 5%
		laboratory duplicates). This was done by
		ALS Okahandja who undertook the
		sample preparation, as well as blank and
		CRM insertion, under instruction from the
		Project Geologist.
		•The AMIS CRMs used were AMIS 339
		(2.27% Li), AMIS 342(1612 ppm Li),
		AMIS 565 (5424 ppm Li), AMIS 682
		(8407 ppm Li), AMIS 683 (2023 ppm Li)
		and AMIS 684 (4544 ppm Li)
		•All chip samples were taken in Company
		transport to ALS laboratory in Okahandja
		where they were pulverized to produce a
		30g charge and then dispatched by
		courier to ALS-Chemex, Johannesburg.

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		The soil samples were sieved to -80#,
		and then the 30g charges were sent to
		ALS Okahandja. All Phase 1 samples
		were analysed by multi-element ICP
		(ME-MS61, following four acid
		dissolution.
Drilling	•Drill type (eg core, reverse	• Double tube, 133mm reverse circulation.
techniques	circulation, open-hole hammer,	A Thor truck mounted rig was used, with
	rotary air blast, auger, Bangka,	a 1200 cfm Kirloskar compressor,
	sonic, etc) and details (eg core	operated by Hammerstein Drilling_._
	diameter, triple or standard tube,	•6m rods were used, and the hole air
	depth of diamond tails, face-	blasted to allow sample recovery via a
	sampling bit or other type, whether	cyclone every 1m.
	core is oriented and if so, by what
	method, etc).
Drill sample	•Method of recording and assessing	•RC chip samples were bagged directly
recovery	core and chip sample recoveries and	from the cyclone, and immediately
	results assessed.	weighed; virtually all samples weighed
	•Measures taken to maximise sample	more than 30kg, averaging 35kg. The
	recovery and ensure representative	sample was then riffle split to produce 3
	nature of the samples.	subsamples (a primary, field duplicate
	•Whether a relationship exists	and reference sample) of approximately
	between sample recovery and grade	3kg each.
	and whether sample bias may have	•Material seems largely homogenous, and
	occurred due to preferential	no relationship has been detected
	loss/gain of fine/coarse material.	between grain size and assayed grade.
Logging	•Whether core and chip samples	•A sample of the RC chips was washed
	have been geologically and	and retained in a chip tray. Chip samples
	geotechnically logged to a level of	have been geologically logged at 1m
	detail to support appropriate Mineral	intervals, with data recorded in
	Resource estimation, mining studies	spreadsheet format using standardized
	and metallurgical studies.	codes. Sample weight, moisture content,
	•Whether logging is qualitative or	lithologies, texture, structure, induration,
	quantitative in nature. Core (or	alteration, oxidation and mineralisation
	costean, channel, etc) photography.	were recorded.
	•The total length and percentage of	•Specific gravities (SGs) have not yet
	the relevant intersections logged.	been measured.
		•The work is undertaken according to
		Prospect Resources’ standard
		procedures and practices, which are in
		line with international best practice, and
		overseen by the CP. The CP considers
		that the level of detail and quality of the
		work is appropriate to support the current
		target estimate.
Sub-sampling	•If core, whether cut or sawn and	•RC samples were bagged straight from
techniques	whether quarter, half or all core	the cyclone. An average of 35kg of
and sample	taken.	sample was produced per meter (a
preparation	•If non-core, whether riffled, tube	calculated recovery of around of 85%
	sampled, rotary split, etc and	was achieved).
	whether sampled wet or dry.	•The dry samples were split using a 3-
	•For all sample types, the nature,	stage riffle splitter,with three,3kg

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	quality, and appropriateness of the	samples being collected per 1m interval.
	sample preparation technique.	Excess material was dumped in a landfill.
	•Quality control procedures adopted	•For RC chip samples, field duplicates
	for all sub-sampling stages to	were produced every 20th sample.
	maximise representivity of samples.	•The 3kg samples were crushed and
	•Measures taken to ensure that the	milled (90%, pass -75µm) at the ALS
	sampling is representative of the in	Laboratory in Okahandja. Pulp
	situ material collected, including for	duplicates, blanks and standard material
	instance results for field	(produced by AMIS) were inserted in
	duplicate/second-half sampling.	identical packets to the samples, one per
	•Whether sample sizes are	20 normal samples for each of the
	appropriate to the grain size of the	blanks, standards and lab duplicates.
	material being sampled.	This was done under the supervision of a
		qualified geologist or experienced
		geotechnician.
Quality of	•The nature, quality and	•All samples were analysed by multi-
assay data	appropriateness of the assaying and	element ICP (ME-MS61). All assays
and	laboratory procedures used and	were performed at ALS-Chemex
laboratory	whether the technique is considered	Johannesburg
tests	partial or total.	•For QAQC, a 5% tolerance on CRM and
	•For geophysical tools,	duplicate results was permitted. Of the
	spectrometers, handheld XRF	52 blank samples inserted, only one was
	instruments, etc, the parameters	deemed necessary for re-assay
	used in determining the analysis	(OMR/053 – suspected sample mixing at
	including instrument make and	pre-prep lab). Of the 56 CRMs assayed
	model, reading times, calibrations	only two fell outside the acceptable
	factors applied and their derivation,	range and were sent for re-assay
	etc.	(OMR003/49 and OMR006/50).
	•Nature of quality control procedures	•Out of 40 pulps produced from field
	adopted (eg standards, blanks,	duplicates, an overall correlation of 98%
	duplicates, external laboratory	was achieved, with only two falling
	checks) and whether acceptable	outside acceptable limits, OMR005/20
	levels of accuracy (ie lack of bias)	and OMR006/45 have been submitted
	and precision have been	for re-assay. For the 62 lab duplicates, a
	established.	correlation of 96% was achieved, with
		only one sample being sent for re-assay
		(AMR005/56).
		•The conclusion is that ALS
		Johannesburg accuracy and ALS
		Okahandja prep-preparation have
		produced acceptable analytical results.
Verification of	•The verification of significant	•The Project Geologist was on site during
sampling and	intersections by either independent	most of the drilling and sample pre-
assaying	or alternative company personnel.	preparation. The significant intersections
	•The use of twinned holes.	and geological were also shown to staff
	•Documentation of primary data, data	from Osino Resources and the Namibian
	entry procedures, data verification,	Geological Survey.
	data storage (physical and	•All hard copies of data are retained at the
	electronic) protocols.	Osino Resource Exploration offices, in
	•Discuss any adjustment to assay	Omaruru, Namibia. All electronic data
	data.	resides in Excel™ format on the office
		desktop, with back-ups retained on hard-

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drives in a safe, and in an Access™ database in a data cloud offsite, managed by Prospect Resources.

• No drillholes from the current campaign have been twinned.

• Logging and assay data captured electronically on Excel™ spreadsheet, and subsequently imported in an Access™ database.

• All assay results reported as Li ppm and over limits (>5,000ppm Li) as %, adjusted to the same units and expressed as Li2O%. Similarly, Ta assays are reported in ppm, but expressed as Ta2O5.

• Location of • Accuracy and quality of surveys • All drill holes were surveyed completed, data points used to locate drill holes (collar and with down-hole survey tool using an down-hole surveys), trenches, mine Azimuth Point System (APS) Single Shot workings and other locations used in survey method down-hole instrument at Mineral Resource estimation. a minimum of every 30m and measured

• • Specification of the grid system relative to magnetic north. These used. measurements have then been

• • Quality and adequacy of topographic converted from magnetic to UTM Zone control. 33 South values. No significant hole deviation is evident in plan or section.

• All collar positions have been initially surveyed using a handheld GPS and marked with concrete. Then DGPS unit was employed by Strydom and Associates surveyors.

• Detailed soil geochemistry was undertaken along the structural extensions of the Karlsbrunn, Brockmans, Spirit, Hillside, Petalite and Bergers pegmatites.

• Geochemical sample sites were recorded using a handheld GPS unit.

• Underground adit samples from Karlsbrunn were surveyed using Strydom and Associates Surveyors (Namibia) to complete 3D Riegel laser scanning of the adit volumes and adit sample boundary locations.

		Karlsbrunn were surveyed using Strydom and Associates Surveyors (Namibia) to complete 3D Riegel laser scanning of the adit volumes and adit sample boundary locations.
		•Sample locations are recorded as XYZ
		coordinates (UTM Zone 33 South).
Data spacing	•Data spacing for reporting of	•Phase 1 drill holes were drilled at an
and	Exploration Results.	average of 30 to 50m intervals along
distribution	•Whether the data spacing and	strike and down dip of the mapped
	distribution is sufficient to establish	pegmatites. The azimuth and inclination
	the degree of geological and grade	of each hole varied depending on the
	continuity appropriate for the Mineral	attitude of the surface exposure of the
	Resource and Ore Reserve	variouspegmatite bodies.

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	estimation procedure(s) and	•Detailed soil geochemistry was
	classifications applied.	undertaken on grids, targeting the
	•Whether sample compositing has	structural extensions of the Karlsbrunn,
	been applied.	Brockmans, Spirit, Hillside, Petalite and
		Bergers pegmatites. Lines were
		surveyed southeast-northeast at 50m
		intervals, with samples collected every
		20m.
Orientation of	•Whether the orientation of sampling	•Drilling was planned to intersect these
data in	achieves unbiased sampling of	pegmatites as near to perpendicular as
relation to	possible structures and the extent to	possible.
geological	which this is known, considering the
structure	deposit type.
	•If the relationship between the
	drilling orientation and the orientation
	of key mineralised structures is
	considered to have introduced a
	sampling bias, this should be
	assessed and reported if material.
Sample	•The measures taken to ensure	•RC samples were placed in sealed bags
security	sample security.	to prevent movement and mixing.
		Minimal preparation was done on site.
		Samples were transported in company
		vehicles accompanied by a senior
		technician to the pre-preparation
		laboratory (ALS Okahandja).
Audits or	•The results of any audits or reviews	•The CP (Roger Tyler), is continually
reviews	of sampling techniques and data.	auditing sampling and logging practices.

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Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	Commentary
Mineral	•Type, reference name/number,	•EPL5533, known as Wilhelmstal (175 sq km)
tenement and	location and ownership including	is held by Osino Resources under the name
land tenure	agreements or material issues	of local company subsidiary, Richwing
status	with third parties such as joint	Exploration (Pty) Limited. A Shareholder
	ventures, partnerships,	Agreement was signed with Osino Resources
	overriding royalties, native title	Corp. (OSI.TSXV) in September 2022 for
	interests, historical sites,	Prospect to progressively acquire up to 51%
	wilderness or national park and	and potentially up to 85% of Richwing (ASX
	environmental settings.	Announcement 29 September 2022).
	•The security of the tenure held	•There are no known environmental or land
	at the time of reporting along	title issues or impediments. The
	with any known impediments to	environmental certificate has been renewed.
	obtaining a licence to operate in	•Rural farmland – game grazing, low density
	the area.	population. Access rights to the two farms at
		Albrechtshohe which cover the main target
		areas, have been established by contractual
		agreements, signed in October 2022.
Exploration	•Acknowledgment and appraisal	•AGA and Bafex covered the area with grid-
done by other	of exploration by other parties.	based soil geochemistry in the early 2000s.
parties		2,093 multielement results available. Lithium
		soil values average 32 ppm and peak at 204
		ppm Li. No known lithium targeted drilling had
		been completed historically at Omaruru.
		•In 2018, Dr Michael Cronwright of CSA
		Global undertook a compilation of all known
		data and an assessment of the pegmatite
		outcrops for Osino.
		•A similar exercise was undertaken by Mike
		Venter of PH Consulting in 2019, which
		considered more of the regional historical soil
		geochemistry and tectonic models.
		•More detailed mapping was subsequently
		undertaken by the CP, Nico Scholtz.
		•In 2020, Osino drilled 16 RC holes (1,942m)
		six at the Karlsbrunn deposit, with five at the
		Spirit and five at the northern extremity of
		Brockmans.
Geology	•Deposit type, geological setting,	•The project area hosts multiple outcropping
	and style of mineralisation.	pegmatites, intruding Damara aged
		metasediments. The pegmatites belong to
		the lepidolite-petalite subclass of the LCT
		(lithium-caesium-tantalum) class. They strike
		approximately southwest-northeast, but vary
		in length, dip, and width along strike as well
		as in depth extent and degree of erosion.
		•Those drilled during Prospect’s Phase 1
		programme were the Karlsbrunn and

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		Brockmans pegmatites.
		•The pegmatites are poorly to moderately
		zoned (but not symmetrically). The main
		lithium bearing minerals are dominated by
		lepidolite and petalite, with sub-ordinate
		cookeite. In addition, disseminated tantalite
		and cassiterite is present. Gangue minerals
		are quartz, alkali feldspars and muscovite.
Drill hole	•A summary of all information	•Drilling is not being reported.
Information	material to the understanding of
	the exploration results including
	a tabulation of the following
	information for all Material drill
	holes:
	oeasting and northing of the
	drill hole collar
	oelevation or RL (Reduced
	Level – elevation above sea
	level in meters) of the drill
	hole collar
	odip and azimuth of the hole
	odown hole length and
	interception depth
	ohole 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,	•Borehole intersections were reported using
aggregation	weighting averaging techniques,	downhole length weighted averaging
methods	maximum and/or minimum	methods. No maximum or minimum grade
	grade truncations (eg cutting of	truncations were used. The mineralisation is
	high grades) and cut-off grades	constrained to within the pegmatites.
	are usually Material and should
	be stated.
	•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.

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Relationship	•These relationships are	•The drill holes were drilled with varying
between	particularly important in the	azimuths and dips intended to intersect the
mineralisatio	reporting of Exploration Results.	pegmatites perpendicularly.
n widths and	•If the geometry of the	•Virtually all holes intersected the pegmatites
intercept	mineralisation with respect to	as planned, though the pegmatites do
lengths	the drill hole angle is known, its	bifurcate and vary in thickness.
	nature should be reported.	•There is undoubtedly some flexing of these
	•If it is not known and only the	pegmatite bodies, which has caused dip
	down hole lengths are reported,	variation, but the general regional strikes are
	there should be a clear	southwest-northeast.
	statement to this effect (eg
	‘down hole length, true width not
	known’).
Diagrams	•Appropriate maps and sections	•Maps are attached in the body of the report.
	(with scales) and 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	• The Company states that all results have
reporting	of all Exploration Results is not	been reported and comply with balanced
	practicable, representative	reporting.
	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	•Historical surface grab sampling was also
substantive	meaningful and material, should	conducted at all the exposed pegmatites. 93
exploration	be reported including (but not	x approximately 3 kg samples were collected
data	limited to): geological	and assayed at Act Labs Vancouver after
	observations; geophysical	crushing and milling at Act Labs Windhoek.
	survey results; geochemical	From 93 samples collected, an average lithia
	survey results; bulk samples –	grade of 1.88%, with a maximum of 5.06%
	size and method of treatment;	were returned (details – Prospect ASX
	metallurgical test results; bulk	Announcement 29 September 2022).
	density, groundwater,	•Reconnaissance mapping was undertaken
	geotechnical and rock	during the 2018 evaluation by Dr Michael
	characteristics; potential	Cronwright of CSA Global. More detailed
	deleterious or contaminating	mapping was completed by Nico Scholtz in
	substances.	2021, on behalf of Osino Resources.
		•In 2020, 16 RC holes for 1,942m were drilled;
		six at Karlsbrunn, five at Spirit and five at the
		northern extremity of Brockmans. Zones of
		thick pegmatite were intercepted, notably on
		the western side of Karlsbrunn. Best
		intercepts were 8m at 1.2% lithia from
		KBR006 and 23m at 0.99% lithia from
		KBR007 (ASX Announcement 29 September
		2022).
Further work	•The nature and scale of planned further work (eg tests for lateral	•Phase 2 diamond drilling is planned to support metallurgical test work evaluation at

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==> picture [86 x 103] intentionally omitted <==

Omaruru.

• extensions or depth extensions Omaruru. or large-scale step-out drilling). • Shallow, scout RC drilling is proposed to

• • Diagrams clearly highlighting the evaluate subsurface geology in areas areas of possible extensions, indicating potential “blind” LCT pegmatite including the main geological mineralisation, based on cohesive, interpretations and future drilling anomalous pathfinder elements like lithium, areas, provided this information caesium, rubidium and beryllium. is not commercially sensitive.