Slide 1: Arcadia Project Direct OFS Presentation
Prospect Resources Limited 14 December 2021 Arcadia Project Direct OFS Presentation LN Prospect Resources
Slide 2: 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 3: 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 4: Million
$0.90 12 Million $0.80 10 $0.70 $0.60 8 $0.50 6 $0.40 $0.30 4 $0.20 2 $0.10 $- 0
Slide 5: Systematic de-risking and advancement of the Arcadia Project
Systematic de-risking and advancement of the Arcadia Project 1 Nov 2018 Arcadia DFS 12 years mine life Lithia recoveries of 68% utilising conventional DMS, spirals and flotation IRR 42% (post-tax) Ore Reserve Estimate 26.9Mt @ 1.31% LiO VLAN Prospect Resources 2 Dec 2019 Updated DFS LOM increased >1
Slide 6: Key Conclusions
Key Conclusions LN Prospect Resources Higher upfront capital pathway to production with faster ramp up Greater capital efficiency and economic return A robust, high-grade operation with excellent financial outcomes Quality, high-grade lithium concentrate products with very low impurities provides ke
Slide 7: 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 8: Key Direct OFS Outcomes
Key Direct OFS Outcomes Confirmation of strong technical and economic viability under alternative build pathways LN Prospect Resources
Slide 9: Direct OFS key metrics: NPV, AISC, capex, LOM
US$929m US$364/t US$192m 18.3 years _- NPV10 concentrate AISC! pre-production capex Life of Mine (real, ungeared) 2.4 Mtpa 60% IRR 3.4:1 US$175m ore throughput Average annual EBITDA capacity post-tax @ FID strip ratio (waste:ore) (aos) 147ktpa US$2.6bn 118ktpa 3.3 years LOM spodumene Project net cas
Slide 10: Pricing Scenarios - Comparison
e e e e Pricing Scenarios - Comparison Reasonable, updated approach to LOM lithium price forecasting utilised in Direct OFS * Leading commodity markets consultants, Roskill have provided Prospect with on-going assistance in commodity markets and price forecasting Costs ® Roskill issued updated prici
Slide 11: Physical Outcomes
Physical Outcomes Primed to supply high quality products to growing market = 18.3 years Life of Mine (LOM) operating at nameplate ‘Key Metic(t00% bes) Unit LOM capacity following construction and ramp-up Total ore throughput Mt 42.34 Annual process throughput Mtpa 24 = 2.4 Mtpa plant delivers 147ktp
Slide 12: Financial Outcomes
Financial Outcomes Direct OFS highlights Arcadia’s ability to generate high margin cashflow 600,000 3,000,000 : ™ Cum After Tax CF (Ex Financing) ™NetRevenue "After Tax CF (Ex Financing) oa = Forecast average EBITDA of 500,000 ore US$175m/year (post-tax) with 400,000 2,100,000 . 800,000 direct pathw
Slide 13: Financial Outcomes
Financial Outcomes Single stage 2.4 Mtpa pathway improves capital efficiencies and project economics * Reasonable pricing utilizing . . . . Annual process throughput Mtpa 2.40 midpoint of Roskill's high and Initial life-ofmine (Ore Reserve) years 18.3 low price-decks confirms Average head grade (Ore
Slide 14: Mining and Processing
Mining and Processing Near-surface geology, amenable to open pit mining, utilising conventional mining and processing techniques LN Prospect Resources
Slide 15: Mineral Resource and Ore Reserve
Mineral Resource and Ore Reserve The Arcadia deposit is a high-quality, long-life lithium asset Mineral Resource (October 2021) " October 2021 Ore Reserve increased contained lithium to [cxeseny Tomectwn) uno1H fees wom a 1.24Mt Lithium Carbonate Measured 15.8 1.12% 113 77 39 Equivalent (LCE) Indica
Slide 16: Mining schedule: ore, waste and grade
▪ Ore Waste Avg Spodumene Grade Avg Petalite Grade 14,000 1.00% ▪ 0.90% 12,000 0.80% 10,000 0.70% 0.60% ▪ 8,000 0.50% 6,000 0.40% 4,000 0.30% 0.20% ▪ 2,000 0.10% - - 2026 2022 2023 2024 2025 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 ▪ ▪ ▪ ▪
Slide 17: Tantalum, Spodumene and Petalite products
▪ ▪ ▪ 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: Infrastructure and Logistics
Infrastructure and Logistics Proximal access to key infrastructure, utilities and resourcing with multiple routes to export LN Prospect Resources
Slide 19: 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 7S5MVA and 50MVA respectively * The substation has a 25MW bay
Slide 20: Possible Routes to Export
▪ ▪ ▪ ▪ Possible Routes to Export Capabilities / Accessibility Beira Maputo Durban Richards Bay Break Bulk Capable Yes Yes Yes Yes ▪ Containers Capable Yes Yes Yes Yes Container Capacity TEU’s pa 400 000 300 000 3 400 000 50 000 Support Additional Capacity Yes Yes Yes No (Containers) Road Access fro
Slide 21: Capital and Operating Costs
Capital and Operating Costs | Demonstrating highly competitive forecast operating costs LN Prospect Resources
Slide 22: Operating Costs - Direct OFS
Operating Costs - Direct OFS Demonstrating highly competitive forecast operating costs Forecast LOM C1 costs of US$357/t (Staged OFS: US$378/t) and AISC costs (incl. sustaining capex and tantalum credits) of US$364/t (Staged: US$386/t) Operating costs (OPEX) are based on estimates of costs at the Ar
Slide 23: Capital Costs - Direct OFS
Capital Costs - Direct OFS Demonstrating highly competitive forecast operating costs Increased capex vs DFS (2019) to expand equipment capacity and capability, to reduce and manage process risk applied to both Staged and Direct OFS Comparison of capital estimates of direct vs staged pathway highligh
Slide 24: Lithium Market
Lithium Market Aglobally unique orebody, with premium products supplying multiple large end-use markets gs
Slide 25: Tier One Partners Secured
Tier One Partners Secured Offtake agreements in place across Europe and Asia ‘ SIBELCO Q))) PTAA ARAT Brety =SINOMINE RESOURCE GROUP CO., LTD. Material solutions advancing life q ») 7 year offtake agreement eg Fe ever; Kuomeuemen = Deliver a total of 48,160 Lithia units, an — equivalent to approx. 1
Slide 26: Price forecasts: petalite and spodumene FOB Beira
▪ $1,600 $1,490 $1,447 $1,469 $1,377 $1,381 $1,405 $1,368 $1,390 $1,413 $1,340 $1,344 $1,326 $1,353 $1,400 $1,320 $1,328 $1,156 $1,274 $1,298 ▪ $1,200 $1,072 $988 $1,000 $952 $950 $972 $1,000 $897 $926 $899 $912 $939 ▪ $832 $803 $810 $834 $861 $827 $861 $791 $753 $800 US/T $648 $659 $667 $635 $617 $
Slide 27: EPCM Execution expected 18-months from completion of FEED
EPCM Execution expected 18-months from completion of FEED MINE PRE STRIP AND DEVELOPMENT SITE EST. BULK EARTHWORKS, CIVIL WORKS: PRE-COMM AND COMM COMMISSIONING & OPERATIONS TAKEOVER OPERATIONS TRANSITION PERIOD. LN Prospect Resources
Slide 28: Direct OFS confirmed as most capital efficient direct pathway to production
LN Prospect Resources Direct OFS confirmed as most capital efficient and direct pathway to production 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 29: Nick Rathjen
Nick Rathjen LN Prospect Resources
Slide 30: Lithium content and conversion to LCE
Product Lithium Contained Conversion to LCE Lithium metal 100 5.319 Lithium oxide (lithia) 46.4 2.468 Chemical Lithium Carbonate 18.8 1.000 Lithium hydroxide monohydrate 16.5 0.878 Lithium chloride 16.3 0.867 Spodumene (6% Li2O concentrate) 2.8 0.149 Mineral Petalite (4% Li2O concentrate) 1.9 0.099
Slide 31: Term Definitions
Term Definition AISC All in sustaining costs DFS Definitive Feasibility Study EBITDA Earnings before income tax depreciation amortization EPCM Engineering procurement and construction management FOB Free on board IRR Internal rate of return Ktpa Thousand tonnes per annum LCE Lithium carbonate equiva
Slide 32: Appendix C: Geology - Arcadia Deposit
Appendix C: Geology - Arcadia Deposit Aseries of 14 stacked 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 exploit
Slide 33: Technical Grade Petalite
▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Technical Grade Petalite - First Shipment Specification Performance
Slide 34: Appendix E: Key Consultants & Partners
Appendix E: Key Consultants & Partners Industry leaders ensure best practice and exceptional results Lycopodium - Engineering and EPCM Partner Ganitisnitar euthiog oe oe . . : Process Design Lycopodium Australia = Extensive lithium experience across multiple projects, Process Design Review Lycopodiu
Slide 35: Appendix F: Zimbabwe Rising
Appendix F: Zimbabwe Rising Foreign investment confidence growing with improvements in stability * Significant positive momentum over the last 12-24 months - Sharply lower inflation and relative currency stability . ape Zimbabwe: Gross domestic product (GDP) in current prices from 1998 to 2026 (in -
Slide 36: Appendix G: Key Project Risks
Appendix G: Key Project Risks In depth analysis and characterisation of key risks across all business functions from mining to sales Key Risks Factors g = Commodity pricing " Foreign currency exchange rates _ " Geological interpretation * § = Estimated operating costs Capital cost inflation " Availa