Slide 1: ASX Announcement
ASX.PSC FRA.5E8 ASX ANNOUNCEMENT 11 October 2021 Prospect Resources Limited (ASX: PSC, FRA:5EB) Prospect Resources Limited (ASX: PSC, FRA:5EB) is pleased to release the attached presentation of the Arcadia Staged Optimised Feasibility Study (Staged OFS). This release was authorised by Mr Sam Hosack,
Slide 2: Staged OFS Presentation
Prospect Resources Limited Staged OFS Presentation October 2021 ASX:PSC | FRA:5E8 LN Prospect Resources
Slide 3: Important notices
Important notices Caution Regarding Forward Looking Information The information contained in this presentation or subsequently provided to any recipient of this presentation whether orally or in writing by or on behalf of Prospect Resources Ltd (“Prospect Resources or the Company”) or its respective
Slide 4: Important notices - Competent Person's Statements
Important notices Competent Person's Statements The information in this announcement that relates to 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 M
Slide 5: Prospect at a glance
Prospect at a glance Dedicated Board with a wealth of relevant experience Mark Wheatley Harry Greaves Sam Hosack HeNian Chen Mr Wheatley has over 15 A fourth generation Athird generation Chairman of Changshu yeorsofdirectorand Zimbabwean with 10+ Zimbabwean with over _-Yuhua Property Co. Lid chairma
Slide 6: Africa's most advanced lithium development
Africa's most advanced lithium development = Close proximity and access to skilled labour force and requisite infrastructure ® Special Economic Zone accreditation provides significant financial and logistical advantages = Fully permitted to commence production * Dual-track Optimised Feasibility Stud
Slide 7: Key Staged OFS Outcomes
Key Staged OFS Outcomes Confirmation of strong technical and economic viability under alternative build pathways LN Prospect Resources
Slide 8: Rationale and key conclusions
Rationale and key conclusions Building on Arcadia Updated DFS to deliver a compelling long-life, large scale, hard rock open pit lithium mine Rationale Confirm technical and economic viability of staged approach to development of Arcadia Staged OFS for two-stage build to 2.4 Mtpa via staged 1.2 Mtpa
Slide 9: Staged OFS key metrics
20 years US$386/t US$140m Life of Mine concentrate AISC! Siege 1 prefprostuaiten capex 1.2Mt (vr. 1-4) 34% 3.4:1 2.4Mt (Yr. 5-20) Sd annual ore throughput post-tax IRR @ FID strip ratio (waste:ore) 1 33.4ktpa 3.6 years 1 07.6ktpa LOM spodumene payback period (post-tax) LOM petalite concentrate conce
Slide 10: Financial outcomes
Financial outcomes Confirmation of strong technical and economic viability under alternative build pathways * Funding to first positive cash flow is US$30m less than the Keymetric(100%basis) = Unit LOM 2019 FS, achieving the objective of a reduced upfront financing burden with cash flow from the 1.2
Slide 11: Physical outcomes
Physical outcomes Confirmation of strong technical and economic viability under alternative build pathways = Stage 1 standalone from years 1-4; with Total ore throughput Mt 4.03 38.31 42.34 Annual process throughput Mtpa 1.2 24 2.4 " Stage 2 added from years 5-20 Initial life-of mine years 20.0 = 2.
Slide 12: Financial outcomes
Financial outcomes Confirmation of strong technical and economic viability under alternative build pathways 600,000 1,800,000 = The outcomes note average EBITDA of 500,000 1,500,000 US$69m (years 1-4) showing the 1.2Mtpa 400,000 1,200,000 case is financially robust on its own 300,000 900,000 200,000
Slide 13: Mining and Processing
Mining and Processing Near-surface geology, amenable to open pit mining, utilising conventional mining and processing techniques LN Prospect Resources
Slide 14: Geology - Arcadia Deposit
Geolog - Arcadia Deposit Aseries of 14 sta flat-lying pegmatites that are members of the Lithium Caesium Tantalum (LCT) group = Pegmatites dip at a shallow angle to the northwest with minimal surface outcrop = Approximately 200m of the Main Pegmatite is exposed in an old pit exploited intermittently
Slide 15: Mineral Resource and Ore Reserve
Mineral Resource and Ore Reserve The Arcadia deposit is a high-quality, long-life lithium asset * October 2021 Ore Reserve increased Mineral Resource (October 2021) Carbonate Equivalent (LCE) . . Measured 15.8 1.12% 113 177 3.9 * Extended Life Of Mine (LOM) to 20 years Indicated 45.6 1.06% 124 484 1
Slide 16: Mining operations
Mining operations Near-surface geology amenable to Open Pit Mining * Pit design, optimisation and mine scheduling prepared by CSA Global (Perth Office) 56 4 § * Itis planned that mining will be performed by diesel >. 2 hydraulic, track-mounted backhoe excavators with ore and s 0 @ waste hauled using
Slide 17: Tantalum (By-product)
▪ ▪ ▪ T a n t a l u m (By -product) Spodumene Petalite 25% Ta2O5 Chemical Grade Chemical Grade Technical Grade 6% Li20 , <0.70 Fe2O3 4% Li20 , <0.80 Fe2O3 >4% Li20 , < 0.05% Fe2O3 ▪
Slide 18: Technical Grade Petalite
▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Technical Grade Petalite - First Shipment Specification Performance
Slide 19: Infrastructure and Logistics
Infrastructure and Logistics Proximal access to key infrastructure, utilities and resourcing with multiple routes to export LN Prospect Resources
Slide 20: Project location proximal to key infrastructure, utilities and resourcing
Project location proximal to key infrastructure, utilities and resourcing Power = Peak load requirement estimated ~18.5MVA = ZETDC 132kV Atlanta substation, located approximately 9.5km from Arcadia, has two 132/33kV transformers rated at 75MVA and 50MVA respectively = The substation has a 25MW bay e
Slide 21: Multiple routes to export
Multiple routes to export = Product to be delivered FOB via Port of Beira, accessible by well maintained dual-lane carriageway (580km) Y i * Port of Beira is Mozambique’s second largest port and can ‘A 12m ° ; : [ support vessels up to 60,000t with a maximum draft size of cos | = Container terminal
Slide 22: Capital and Operating Costs
Capital and Operating Costs | Demonstrating highly competitive forecast operating costs LN Prospect Resources
Slide 23: Operating Costs
Operating Costs Demonstrating highly competitive forecast operating costs Forecast LOM C1 costs of US$378/t and AISC costs (incl. sustaining capex and tantalum credits) of US$386/t Operating costs (OPEX) are based on estimates of costs at the Arcadia mine, vendor quotations, budget prices, in-house
Slide 24: Capital Costs
Capital Costs Demonstrating highly competitive forecast operating costs and capability, to reduce and manage process risk Site Readiness & Infrastructure 20.66 9.26 * Utilising a highly modular setup with pre-erection in Mining 5.53 South Africa enables a reduction to execution risk Processing Plant
Slide 25: Lithium Market
Lithium Market Aglobally unique orebody, with premium products supplying multiple large end-use markets gs
Slide 26: Technical Grade Petalite
Technical Grade Petalite Established and stable market exposure Technical lithium minerals flow chart, 2019 * Prospect undertook a market study with Roskill to highlight the opportunity petalite presents within the broader lithium market = Estimated mineral demand from petalite’s core target markets
Slide 27: Tier One Partners Secured
Tier One Partners Secured Offtake agreements in place across Europe and Asia a Bet cll vate) ZN SINOMINE RESOURCE GROUP CO., LTD. SIBELCO Material solutions advancing life /SIBELCO Seu, 7 year offtake agreement = Deliver a total of 48,160 Lithia units, equivalent to approx. 119,000 LCE = US$10M pre-
Slide 28: Staged OFS price assumptions
Staged OFS price assumptions Independent price forecast developed by renowned mineral specialist Roskill, 2021-2040 lithium price forecast * Roskill developed OFS price 1,400 forecast ea ‘ 1,200 1,117 = All prices have been calculated to { fh081 1,056 1,0401/080 FOB Beira. 1,000 = The Life of Mine a
Slide 29: Zimbabwe on the rise
Zimbabwe on the rise Foreign investment confidence growing with improvements in stability * Significant positive momentum over the last 12-24 months - Sharply lower inflation and relative currency stability . wre Zimbabwe: Gross domestic product (GDP) in current prices from 1998 to 2026 (in - Govern
Slide 30: Key consultants and execution partners
Key consultants and execution partners Industry leaders ensure best practice and exceptional results Lycopodium - Engineering and EPCM Partner Ganitilbniter euthiog oe oe . . : Process Design Lycopodium Australia = Extensive lithium experience across multiple projects, Process Design Review Lycopodi
Slide 31: Key project risks and execution timeline
Key project risks and execution timeline EPCM Execution expected 18-months from completion of FEED Asignificant body of work has been undertaken to mitigate key risks factors, including in collaboration with industry leading consultants. Notwithstanding these measures to manage risk, key factors inc
Slide 32: Staged OFS confirms technical and economic viability
LN Prospect Resources Staged OFS confirms technical and economic viability under staged build pathway Offtake agreements secured across Europe and Asia with Tier 1 Partners Project located in close proximity to key infrastructure, utilities and resourcing Arcadia is a world class long-life and large
Slide 33: Prospect Resources Limited
Prospect Resources Limited Staged OFS Presentation October 2021 ASX:PSC | FRA:5E8 LN Prospect Resources