PROSPECT RESOURCES LIMITED — Interim / Quarterly Report 2011

May 2, 2011

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96; Origin: Appendix 8; Amended 1/7/97, 1/7/98, and 30/9/2001.

Name of entity

ETHAN MINERALS LIMITED

			Ru		le 5.3
			Appe		dix 5B
In			Mining exploration eOrigin: Appendix 8; Amended 1/7/97, 1/7/98, and 30/9
					ntity quarterly report
		troduced 1/7/96;			/2001.
NE
		ame of entity
	E	THA	INERALS LIMITED
		N
			ABN				Quarter ended (“c		urrent quarter”)
Co		3	0 124 354 329				31 Marc		h 2011
		nsolidat
			ed statement of cash flows
Cas						Current quarter		Year to date
		h flows rel	ated to operating activities			$A’000		9 months$A’000
1.11.2
		Receip Payme(a) exp(b) de	ts from tax returns and related debtors
						-
			nts forloration and evaluation			(235)		(3,((1,
			elopmentdi			(287)
		(c) pro(d) ad Divide
			uctonministration			-(284)
1.31.41.51.6
			nds receivedt and other items of a similar nat		ure	-1
		Interesreceive Interes Incom
			dd h f fi id
			t an oter costs o nance pae taxes paid			--
1.7Other (GST to be recouped)Net operating cash flows						-
						(805)		(4,848)
Cash flows related to investing activities1.8Payment for purchases of:(a) prospects(b) equity investments(c) other fixed assets1.9Proceeds from sale of:(a) prospects(b) equity investments(c) other fixed assets1.10Loans to other entities1.11Loans repaid by other entities1.12Other (state if material)Net investing cash flows						--(64)------		--(74)------
						(64)		(74)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13Total operating and investing cash flows (broughtforward)	(869)	(4,922)
Cash flows related to financing activities1.14Proceeds from shares /shares to be issued1.15Proceeds from sale of forfeited shares1.16Proceeds from borrowings1.17Repayment of borrowings1.18Proceeds from release of tenement bond1.19Other (Cost of Capital Raising/Prospectus)Net financing cash flows	------	2,143----(105)
	-	2,038
Net increase (decrease) in cash held1.20Cash at beginning of quarter/year to date1.21Exchange rate adjustments to item 1.201.22Cash at end ofquarter	(869)870	(2,884)2,885
	1	1

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.231.24	Aggregate amount of payments to the parties included in item 1.2Aggregate amount of loans to the parties included in item 1.10	Current quarter$A'000
		67
		NIL
1.25	Explanation necessaryfor an understandingof the transactions
	All transactions involving Directors and associates were on normal commercial terms.

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows NIL

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest NIL

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1Loan facilities3.2Credit standby arrangements	Amount available$A’000	Amount used$A’000
	NIL	NIL
	NIL	NIL

Estimated cash outflows for next quarter

4.1	Exploration and evaluation
4.2	Development
4.3	Production
4.4	Administration
	Total

$A’000 - - 42 300 342

Reconciliation of cash

Reconciliation of cash	Reconciliation of cash
Reconciliation of cash at the end of the quarter (as		Current quarter	Previous quarter
shown in the consolidated statement of cash flows) to		$A’000	$A’000
the related items in the accounts is as follows.
5.1	Cash on hand and at bank	1	870
5.2	Deposits at call
		-	-
5.3	Bank overdraft
		-	-
5.4	Other (provide details)
		-	-
	Total: cash at end of quarter(item 1.22)	1	870

Changes in interests in mining tenements

		Tenement	Nature of		Interest at		Interest at
		reference		interest(note(2))	beginning of q	uarter	end ofquarter
	6.1Interests in miningtenements relinquished,
	reduced or lapsed

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

6.2Interests in miningtenements acquired orincreased	NIL

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Totalnumber	Numberquoted	Issue price persecurity (seenote 3) (cents)	Amount paid up persecurity (see note 3)(cents)
7.1Preference+securities(description)7.2Changes during quarter(a) Increases through issues(b) Decreases through returnsof capital, buy-backs,redemptions
7.3+Ordinary securities7.4Changes during quarter(a) Increases - through issuesIncreases – transferred fromescrow(b) Decreases through returnsof capital,buy-backs	82,593,287	72,093,287		Fully paid
7.5+Convertible debt securities(description)7.6Changes during quarter(a) Increases through issues(b) Decreases through securitiesmatured,converted
7.7Options (description andconversion factor)7.8Issued during quarter7.9Exercised during quarter7.10Expired during quarter	9,701,500857,5001,000,0001,402,0002,000,000		Exercise price$0.20$0.20$0.23$0.23$.023	Expiry date18/10/20125/11/20133/12/20118/12/201130/07/2012
7.11Debentures(totals only)
7.12Unsecured notes(totals only)

Compliance statement

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

• 2 This statement does / does not* (delete one) give a true and fair view of the matters disclosed.

==> picture [112 x 47] intentionally omitted <==

Sign here: ............................................. Date: 2 May 2011 (Director)

Print name: Kenneth James Fitzgerald

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities - The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards - ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

= == == == ==

• See chapter 19 for defined terms.

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