PROSPECT RESOURCES LIMITED — Interim / Quarterly Report 2020

Jan 30, 2020

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

PROSPECT RESOURCES LIMITED
Quarter ended ("current quarter")
31 DECEMBER 2019

	Consolidated statement of cash flows	Current quarter$A'000	Year to date(6 months)$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	-
1.2	Payments for
	(a)exploration & evaluation	-	(1)
	(b)development	(284)	(461)
	(c)production
	(d)staff costs	(293)	(752)
	(e)administration and corporate costs	(792)	(1,536)
	(f) farming costs	(26)	(61)
1.3	Dividends received (see note 3)
1.4	Interest received
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Research and development refunds
1.8	Other (provide details if material)
1.9	Net cash from / (used in) operatingactivities	(1,395)	(2,811)

2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a)property, plant and equipment	(55)	(58)
	(b)tenements (see item 10)
	(c)investments

	Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report

	Consolidated statement of cash flows	Current quarter$A'000	Year to date(6 months)$A'000
	(d)other non-current assets	(9)	(112)
2.2	Proceeds from the disposal of:
	(a)property, plant and equipment
	(b)tenements (see item 10)
	(c)investments
	(d)other non-current assets
2.3	Cash flows from loans to other entities
2.4	Dividends received (see note 3)
2.5	Other (provide details if material)
	(a)Exploration and evaluation
	(b)Development costs	(1,205)	(2,091)
	(c)Interest received	3	14
2.6	Net cash from / (used in) investingactivities	(1,266)	(2,247)

3.	Cashflows from financing activities
3.1	Proceeds from issues of shares	720	720
3.2	Proceeds from issue of convertible notes
3.3	Proceeds from exercise of share options
3.4	Transaction costs related to issues ofshares, convertible notes or options
3.5	Proceeds from borrowings
3.6	Repayment of borrowings (related party)
3.7	Transaction costs related to loans andborrowings
3.8	Dividends paid
3.9	Other (provide details if material)
3.10	Net cash from / (used in) financingactivities	720	720

4.	Net increase / (decrease) in cash andcash equivalents for the period
4.1	Cash and cash equivalents at beginning ofperiod	3,218	5,474
4.2	Net cash from / (used in) operatingactivities (item 1.9 above)	(1,395)	(2,811)
4.3	Net cash from / (used in) investing activities(item 2.6 above)	(1,266)	(2,247)
4.4	Net cash from / (used in) financing activities(item 3.10 above)	720	720

	Consolidated statement of cash flows	Current quarter$A'000	Year to date(6 months)$A'000
4.5	Effect of movement in exchange rates oncash held	(144)	(3)
4.6	Cash and cash equivalents at end ofperiod	1,133	1,133

5.	Reconciliation ofcash and cashequivalentsat the end of the quarter (as shown in theconsolidated statement of cash flows) to therelated items in the accounts	Current quarter$A'000	Previous quarter$A'000
5.1	Bank balances	37	67
5.2	Call deposits	794	2,686
5.3	Bank overdrafts
5.4	Other (provide details)
	US$ at bank	156	334
	RTGS$ at bank	36	21
	Petty cash	110	110
5.5	Cash and cash equivalents at end ofquarter (should equal item 4.6 above)	1,133	3,218

6. Payments to directors of the entity and their associates Current quarter

• 6.1 Aggregate amount of payments to these parties included in item 1.2 203
• 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3
• 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

Payments include director fees, superannuation, bonus and rent.

7.	Payments to related entities of the entity andtheir
	associates

• 7.1 Aggregate amount of payments to these parties included in item 1.2 -

• 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3

• 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

$A'000
	-

Current quarter $A'000

8.	Financingfacilities availableAdd notes as necessary for anunderstanding of the position	Total facility amountat quarter end$A'000	Amount drawn atquarter end$A'000
8.1	Loan facilities	-	-
8.2	Credit standby arrangements
8.3	Other (please specify)

8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

9.	Estimated cash outflows for nextquarter	$A'000
9.1	Exploration and evaluation	200
9.2	Development	710
9.3	Production	-
9.4	Staff costs	370
9.5	Administration and corporate costs	635
9.6	Other (provide details if material)	-
9.7	Total estimated cash outflows	1,915

* subsequent to 31 December 2019, the company has raised $968,000 via placement of new shares.

10.	Changes intenements(items 2.1(b) and2.2(b) above)	Tenementreferenceandlocation	Nature of interest	Interest atbeginningof quarter	Interestat end ofquarter
10.1	Interests in miningtenements andpetroleum tenementslapsed, relinquishedor reduced		Refer Appendix A
10.2	Interests in miningtenements andpetroleum tenementsacquired or increased		Refer Appendix A

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
• 2 This statement gives a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 31 January 2020 ...................

Print name: Sam Hosack................................................

• See chapter 19 for defined terms

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 that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.
• 1. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
• 1. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

APPENDIX A – PROSPECT RESOURCES LIMITED TENEMENT SCHEDULE

Prospect Resources Limited has interests in tenements via the following companies:

• 1. Coldawn Investment (Private) Limited ("Coldawn")
• 1. Hawkmoth Mining and Exploration (Private) Limited ("Hawkmoth")
• 1. Prospect Lithium Zimbabwe (Pvt) Limited (formerly Examix Investments (Pvt) Limited) ("PLZ")
• 1. Farvic Consolidated Mines (Pvt) Limited ("Farvic")
• 1. Tannahill Mine (Pvt) Limited ("Tannahill")
• 1. Mixnote Investments (Pvt) Limited ("Mixnote")

			Registered	% Held at End	% Acquired	% Disposed
Tenement Type &			Company	of Quarter	During Quarter	During Quarter
Number	Country	Project	Name
ML 3837680	ZimbabweZimbabwe	ArcadiaArcadia	PLZPLZ	70%70%	--	--
ME284G	Zimbabwe	Arcadia	PLZ	70%	-	-
23189	Zimbabwe	Arcadia	PLZ	70%	-	-
23190	Zimbabwe	Arcadia	PLZ	70%	-	-
23233	Zimbabwe	Arcadia	PLZ	70%	-	-
32132	Zimbabwe	Arcadia	PLZ	70%	-	-
32133	Zimbabwe	Arcadia	PLZ	70%	-	-
32126	Zimbabwe	Arcadia	PLZ	70%	-	-
32733	Zimbabwe	Arcadia	PLZ	70%	-	-
23277	Zimbabwe	Arcadia	PLZ	70%	-	-
23278	Zimbabwe	Arcadia	PLZ	70%	-	-
23279	Zimbabwe	Arcadia	PLZ	70%	-	-
23276	Zimbabwe	Arcadia	PLZ	70%	-	-
23281	Zimbabwe	Arcadia	PLZ	70%	-	-
23474	Zimbabwe	Arcadia	PLZ	70%	-	-
23630	Zimbabwe	Arcadia	PLZ	70%	-	-
23201	Zimbabwe	Arcadia	PLZ	70%	-	-
23217	Zimbabwe	Arcadia	PLZ	70%	-	-
23468	Zimbabwe	Arcadia	PLZ	70%	-	-
23469	Zimbabwe	Arcadia	PLZ	70%	-	-
23470	Zimbabwe	Arcadia	PLZ	70%	-	-
23471	Zimbabwe	Arcadia	PLZ	70%	-	-
23472	Zimbabwe	Arcadia	PLZ	70%	-	-
23473	Zimbabwe	Arcadia	PLZ	70%	-	-
SG6853	Zimbabwe	Mistress	PLZ	70%	-	-
37856	Zimbabwe	Moonstone	PLZ	70%	-	-
37857	Zimbabwe	Moonstone	PLZ	70%	-	-
12227	Zimbabwe	Penhalonga	Coldawn	70%	-	-
20560 BM	Zimbabwe	Penhalonga	Coldawn	70%	-	-
10675	Zimbabwe	Penhalonga	Coldawn	70%	-	-
21795 BM	Zimbabwe	Penhalonga	Coldawn	70%	-	-
13166 BM	Zimbabwe	Penhalonga	Coldawn	70%	-	-
18879	Zimbabwe	Penhalonga	Coldawn	70%	-	-
18880	Zimbabwe	Penhalonga	Coldawn	70%	-	-

Prospect Resources Limited | ACN 124 354 329

Tenement Type &Companyof QuarterDuring QuarterDuring QuarterNumberCountryProjectName18881ZimbabwePenhalongaColdawn70%--21748 BMZimbabwePenhalongaColdawn70%--18666 BMZimbabwePenhalongaColdawn70%--12212ZimbabwePenhalongaColdawn70%--12213ZimbabwePenhalongaColdawn70%--19474 BMZimbabwePenhalongaColdawn70%--14135 BMZimbabwePenhalongaColdawn70%--10338ZimbabwePenhalongaColdawn70%--G3425ZimbabwePenhalongaColdawn70%--18582 BMZimbabwePenhalongaColdawn70%--G2335ZimbabwePenhalongaColdawn70%--M2873 BMZimbabweChishanyaHawkmoth70%--M2874 BMZimbabweChishanyaHawkmoth70%--M2875 BMZimbabweChishanyaHawkmoth70%--M2876 BMZimbabweChishanyaHawkmoth70%--30419ZimbabweGreater FarvicHawkmoth70%--31773ZimbabweGreater FarvicHawkmoth70%--31774ZimbabweGreater FarvicHawkmoth70%--32194ZimbabweGreater FarvicHawkmoth70%--32195ZimbabweGreater FarvicHawkmoth70%--32196ZimbabweGreater FarvicHawkmoth70%--32716ZimbabweGreater FarvicHawkmoth70%--33181ZimbabweGreater FarvicHawkmoth70%--33280ZimbabweGreater FarvicHawkmoth70%--36972ZimbabweGreater FarvicHawkmoth70%--36973ZimbabweGreater FarvicHawkmoth70%--36974ZimbabweGreater FarvicHawkmoth70%--36975ZimbabweGreater FarvicHawkmoth70%--36976ZimbabweGreater FarvicHawkmoth70%--36977ZimbabweGreater FarvicHawkmoth70%--36978ZimbabweGreater FarvicHawkmoth70%--36979ZimbabweGreater FarvicHawkmoth70%--36980ZimbabweGreater FarvicHawkmoth70%--36981ZimbabweGreater FarvicHawkmoth70%--36982ZimbabweGreater FarvicHawkmoth70%--36983ZimbabweGreater FarvicHawkmoth70%--GA 5243ZimbabweGreater FarvicExamix70%--GA 5244ZimbabweGreater FarvicExamix70%--779ZimbabweGreater FarvicFarvic---(i)30132ZimbabweGreater FarvicFarvic---(i)32979ZimbabweGreater FarvicFarvic---(i)32980ZimbabweGreater FarvicFarvic---(i)37660ZimbabweGreater FarvicFarvic---(i)37661ZimbabweGreater FarvicFarvic---(i)37662ZimbabweGreater FarvicFarvic---(i)37663ZimbabweGreater FarvicFarvic---(i)37664ZimbabweGreater FarvicFarvic---(i)37665ZimbabweGreater FarvicFarvic---(i)		Registered	% Held at End	% Acquired	% Disposed

Prospect Resources Limited | ACN 124 354 329

			Registered	% Held at End	% Acquired	% Disposed
Tenement Type &			Company	of Quarter	During Quarter	During Quarter
Number	Country	Project	Name
GA 2037	Zimbabwe	Greater Farvic	Farvic	-	-	-(i)
GA 2038	Zimbabwe	Greater Farvic	Farvic	-	-	-(i)
GA 2039	Zimbabwe	Greater Farvic	Farvic	-	-	-(i)
GA 2040	Zimbabwe	Greater Farvic	Farvic	-	-	-(i)
GA 2041	Zimbabwe	Greater Farvic	Farvic	-	-	-(i)
GA 3008	Zimbabwe	Greater Farvic	Farvic	-	-	-(i)
GA5200	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5212	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5199	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5221	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5217	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5240	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5227	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5222	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5226	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5241	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5225	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5224	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5197	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5198	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5242	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5249	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5250	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5251	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5208	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5209	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5252	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5253	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5254	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5245	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5210 A	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5220	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5532	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5533	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5530	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5528	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5529	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5531	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5460 A	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5459	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5467	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5469	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5470	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5468	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5472	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5471	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5465	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5458	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)

Prospect Resources Limited | ACN 124 354 329

Tenement Type &			RegisteredCompany	% Held at Endof Quarter	% AcquiredDuring	% DisposedDuring Quarter
Number	Country	Project	Name		Quarter
GA5460 B	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5461	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5481	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5479	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5480	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5482	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5488	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5478	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5477	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5454	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5455	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5456	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5693 A	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 4600	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 4601	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 4602	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 4603	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 4604	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 4605	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 4606	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 4597	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 4598	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 4599	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5258	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5265	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5207	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5527	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5256	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA6642	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA6643	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)
GA 5466	Zimbabwe	Greater Farvic	Tannahill	-	-	-(i)

(i) The Greater Farvic joint venture farmin agreement has been terminated by mutual consent.