Prospech : Quarterly Activities Report

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	Shares on issue:	88,298,593
	Market capitalisation:	A$5.6M
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	(@ A$0.063)

Date: 25 January 2022

ASX: PRS

Board of Directors

Non-Executive Chairman

Thomas Mann

	Managing Director
	Jason Beckton
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	Executive Director
	John Levings
	Executive Director and CFO
	Peter Nightingale
	N n-Executive Director
	Steve Gemell
	Company Secretary
	Richard Edwards
	Substantial Shareholders
	Robust Resources	10.1%
	Peter Nightingale	8.7%
	Lonway Pty Limited	7.9%
	Thomas Mann	5.0%
For
	inf @prospech.com.au
	[phone]

Level 2, 66 Hunter Street

Sydney, NSW, 2000

QUARTERLY ACTIVITIES REPORT

For the quarter ended 31 December 2021

The Directors are pleased to present the December 2021 Quarterly Activities Report for Prospech Limited ('Prospech' or 'the Company') and its controlled entities ('the Group').

Highlights

DRILLING - ANTON and KRAKAUER

Hodrusa - Anton - Gold and Silver

Final results from the first modern exploration drilling at Anton received, with significant intercepts summarised below:

∙	VADD003:	1.0m	@ 2.51 g/t Au and 100 g/t Ag from 25.0m
∙	VADD004:	1.0m	@ 1.40 g/t Au and 89 g/t Ag from 182.4m
∙	VADD005:	1.1m	@ 0.83 g/t Au and 89 g/t Ag from 77.7m
		0.6m	@ 0.59 g/t Au and 155 g/t Ag from 154.5m
		1.5m	@ 2.62 g/t Au and 376 g/t Ag from 181.3m
		0.7m	@ 4.45 g/t Au and 301 g/t Ag from 289.7m
∙	VADD006:	1.0m	@ 1.34 g/t Au and 113 g/t Ag from 124.0m
		0.5m	@ 1.17 g/t Au and 169 g/t Ag from 168.7m
		0.5m	@ 1.09 g/t Au and 214 g/t Ag from 184.5m
		0.5m	@ 3.49 g/t Au and 105 g/t Ag from 220.7m

Subsequent to the above drill program, a large-scaleIP-Resistivity survey was completed over a prospective portion of the Hodrusa exploration licence identifying a number of IP and resistivity anomalies as further drill targets.

Review of the IP survey results and three-dimensional modelling continues with drill testing Anton targets over 3.5 km strike to the Schopfer target planned for early 2022.

Nova Bana - Krakauer - Gold and Silver

• High grade discovery in 2020 with rock chip samples assayed up to 283 g/t Au and 1,700 g/t Ag.
• Phase 1 drilling (6 holes for 1,091 metres) completed.

Six holes are reported below:

∙	KVDD001:	5.0m (3.8m	ETW1) @ 1.89 g/t Au and 28 g/t Ag from 162.8m
	including	0.5m (0.4m	ETW) @ 6.95 g/t Au and 84 g/t Ag from 163.7m
∙	KVDD002:	9.0m (6.9m	ETW) @ 1.58 g/t Au and 10 g/t Ag from 170.5m
	including	0.5m (0.4m	ETW) @ 3.34 g/t Au and 7 g/t Ag from 170.5m
	and	3.0m (2.3m	ETW) @ 2.19 g/t Au and 4 g/t Ag from 176.5m
∙	KVDD003:	2.5m (1.8m	ETW) @ 2.12 g/t Au and 35 g/t Ag from 127.7m
∙	KVDD004:	1.7m (1.2m	ETW) @ 1.12 g/t Au and 11 g/t Ag from 140.1m
∙	KVDD005:	4.0m (3.6m	ETW) @ 1.29 g/t Au and 19 g/t Ag from 107.6m
	including	0.5m (0.4m	ETW) @ 4.59 g/t Au and 42 g/t Ag from 107.6m
∙	KVDD006:	1.0m (0.9m	ETW) @ 1.64 g/t Au and 1.5 g/t Ag from 227.5m.
	and	1.5m (1.2m	ETW) @ 1.44 g/t Au and 7.4 g/t Ag from 229.5m

1 Estimated true width.

Drilling will soon commence on the Cejkov Zemplin prospect and return to Hodrusa-Hamre in the spring to drill test the Anton-Schopfer trend and IP anomalies.

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Tenement location map.

Operations

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personalHodrusa-Hamre Exploration Licence (100% Prospech)

Hodrusa-Hamre - Phase 1 Anton drilling program completed For

Hodrusa-Hamre exploration targets.

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Drilling by the Company at Anton, where past records report mining to a depth of over 500 metres below surface, is the first modern exploration drilling at this location. Drill targets selected by the Company are generally shallower targets where historical records indicate that effective mining was prevented by water ingress due to the capability of primitive pumps of the era.

onlyThe Anton target, which lies within the Company's 100%-ownedHodrusa-Hamre exploration licence, is a large system of epithermal gold and silver veins, with a known strike length of at least 3.5 kilometres. The broader Anton structural zone trends further for more than 6.0 kilometres into the Unverzaght and Schopfer historical mines and exploration targets.

Spoil heap samples, which are thought to originate from the Anton structure near the drilling targets are strongly mineralised. The average of assays from 57 grab samples was 3.95 g/t Au and 214 g/t Ag. The peak assays from this group of samples were 52.6 g/t Au and 1,445 g/t Ag.

useA series of stacked gold and silver mineralised quartz veins were intersected in the drilling. VADD006 was the final drill hole at Anton for the 2021 campaign and returned assay results up to 3.49 g/t Au and 214 g/t Ag. The Sprochova vein target has now been intersected by 3 holes (VADD004, 5 and 6), providing reliable structural data to assist in the design of the follow up drilling program.

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Map of the 3.5 kilometre Anton vein system, historical underground mine workings and Prospech

drilling.

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personal Drill section through VADD006 showing significant Au and Ag results.

ForHodrusa-Hamre - Geophysical Program over the Low Angle Normal Fault

A number of IP and resistivity anomalies have been detected by the survey (see Figures below). In general, the IP responses could be described as moderate, which is in keeping with the low to moderate sulphide content of the expected mineralisation style. The Hodrusa-Hamre caldera rocks are, in general, surprisingly conductive, which limits the survey depth of investigation when compared to more resistive terrains.

The survey data is still being evaluated and the anomalies being ranked for drill testing during the 2022 summer field season.

A standout IP anomaly is situated 300 metres along strike from the Ignac prospect, between the Ignac and Banky prospects. The anomaly has a peak chargeability of 16 mV/V and is centred approximately 110 metres below surface.

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Hodrusa-HamreIP survey located in the eastern part of the Hodrusa-Hamreexploration licence. White lines with dots are the as-surveyedlines and IP receiver stations and the coloured blocks are the IP chargeability in mV/V at 100m below surface. The adjacent Rozalia Mine footprint is shown along with nearby historical mine workings such as Schopfer, Anton, Banky, Ignac and Bauch which are all located within the Company's exploration licence. Historical mine workings are coloured by RL (scale not shown).

SampleID UTM_East UTM_North RLVein_Description

PR1578 341373 5371522 732 Fine grained grey qz. Fine BMS dissem + py

PR1579 341373 5371522 732 Fine grained qz bx. Fine BMS dissem, py, Ag ‐ sulph

PR1580 341373 5371495 732 Fine grained qz bx. Fine BMS Fine dissem, py, Ag ‐ sulph

Comments Ag_ppm Au_ppm

Stope pillar 183 5.55

Stope pillar 81.8 1.06

Stope pillar 1300 36.2

Ignac was drilled by the Company in late 2018 and encountered classic epithermal style quartz veining, visible gold and assays up to 15.6 g/t Au.

Historic drilling of the Banky working also encountered high grade mineralisation of 120 g/t Au and Prospech drilling at Banky intersected grades up to 3.04 g/t Au.

onlyRecent in situ underground rock chip sampling located approximately 270 metres north-north-east, along strike from the IP target, assayed 36.2 g/t Au and 1,300 g/t Ag.

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ForThe completion of the IP Survey at Hodrusa-Hamre signals a new approach for the goldfield. It allows the Company to drill targets that may not have surface outcrops.

First pass evaluation of the IP and resistivity data indicates that it supports the LANF model and will allow for the development of a more detailed and nuanced structural model.

Importantly the survey also provides Prospech with a number of targets that we plan to drill in the summer of 2022.

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