Prospect Resources : Letter to Shareholders Regarding Distribution Payment

ASX.PSC FRA.5E8

ASX ANNOUNCEMENT

6 July 2022

For personal use only

Letter to Shareholders Regarding Distribution Payment

Prospect Resources Limited (ASX: PSC, FRA:5E8) (Prospect or the Company) today despatched the following documents to Shareholders for which the Company's share registry (Automic) do not have one, or both, of bank details or TFN/ABN:

• Letter to Shareholders; and ether,
• EFT/TFN Form (Australian residents); or
• Overseas EFT Form (Overseas residents).

As detailed in the Letter to Shareholders, Shareholders are encouraged to provide their details to Automic to ensure the prompt payment of the Distribution scheduled to be paid on 29 July 2022.

Authorised for release by the Company Secretary.

For further information, please contact:

Sam Hosack	Nicholas Rathjen
Managing Director	Head of Corporate Development
[e-mail]	[e-mail]

Prospect Resources Limited ACN 124 354 329 Level 2, 33 Richardson Street. West Perth WA 6005 E: [e-mail] W: prospectresources.com.au

ASX.PSC FRA.5E8

30 June 2022

Dear Shareholder

For personal use only

Prospect Resources Limited ("PSC") - Distribution 2022

As announced to the ASX on 20 April 2022, PSC completed the sale of its 87% interest in the Arcadia Project for net proceeds of US$342.9 million.

The Board has determined to distribute most of these proceeds by way of a A$0.96 per share distribution ("Distribution"). The Distribution comprises an unfranked dividend component of A$0.77 per share ("Special Dividend") and, subject to shareholder approval, a capital reduction component of A$0.19 per share ("Capital Reduction"). The Extraordinary General Meeting ("EGM") to consider approval of the Capital Reduction is being held on 18 July 2022. For further information on the EGM, see the EGM materials which were dispatched to shareholders and announced to the ASX on 17 June 2022.

The proposed timeline for the Distribution is as follows:

If the Capital Reduction is approved by Shareholders at the EGM*

	Following the EGM	Announcement of voting result
	Tuesday, 19th July 2022	The Capital Reduction becomes effective
	Wednesday, 20th July 2022	Last day for trading on a 'cum Capital Reduction' basis*
		and 'cum Special Dividend' basis
	Thursday, 21st July 2022	Trading in Shares on an 'ex Capital Reduction' basis*,
		and 'ex Special Dividend' basis
	Friday, 22nd July 2022	Record Date for Capital Reduction* and Special
		Dividend
	Friday, 29th July 2022	Payment Date of Capital Reduction* and Special
		Dividend

• If the Capital Reduction is not approved by Shareholders at the EGM, only the Special Dividend will be paid in accordance with the timetable above. Note that the timetable is indicative and is subject to change to the extent permitted under law and the ASX Listing Rules.

Payment will be made by Electronic Funds Transfer (EFT) only. To ensure the prompt payment of the Distribution, the Company strongly recommends that shareholders ensure their bank and TFN/ABN details are up to date with the Company's share registry, Automic.

Instructions to Shareholders

If you are an Australian resident or an overseas resident with an Australian bank account, instructions on how to update your details online are set out below. Alternatively, you can use the enclosed form and return it to Automic as noted in the instructions in the form.

If you are an Overseas resident that does not have an Australian bank account, you will need to update your details by completing the enclosed Overseas EFT Form and returning it to Automic as noted in the instructions in the form. Alternatively, the form can be located on Automic's website here: https://automic.com.au/form/Overseas_EFT_Form.pdf.

For personal use only

If you have recently updated your details, you do not need to do anything.

Updating your details online for Australian Resident or Overseas Resident with Australian Bank Account:

If you haven't already done so you need to register for an online account via the investor portal of the Company's share registry, Automic Group, and then update your bank and TFN/ABN details online to receive your Distribution in a timely and efficient manner.

Please follow the instructions below to access your holding statement and sign up for access to Automic Group's Investor Portal.

Sign up to access your account

1. Enter the following address into your web browser:investor.automic.com.au/#/signup
2. Select "Prospect Resources Limited" from the fund name drop down list.
3. Enter your Holding Number (HIN or SRN). This can be found on correspondence such as a holding statement or proxy form from either Automic or your broker
4. Enter your postcode OR if outside Australia, your country of residence.
5. Tick the box "I'm not a robot", then select "Next".
6. Set up your username and password details.

Important - update your bank & TFN details

Once you have created your account by following the instructions above, you will need to update your bank account detailsand Tax File Number (TFN)/Australian Business Number (ABN) informationby clicking "my details" under the "profile" section of your Investor Portal account.

If you have any problems setting up your account access, Automic is ready to help - please contact 1300 288 664 or on [phone] if calling from outside or Australia, or email at [e-mail].

Please note that you will need to ensure your details are updated online or forms are received by Automic Group no later than the Record Date of Friday 22 July 2022, to be included in the initial payment group.

Your prompt attention to this matter is greatly appreciated.

Yours sincerely,

Ian Goldberg

CFO and Joint Company Secretary

Prospect Resources Limited

For further information, please contact:

Sam Hosack	Nicholas Rathjen
Managing Director	Head of Corporate Development
[e-mail]	[e-mail]

Prospect Resources Limited ACN 124 354 329 Level 2, 33 Richardson Street. West Perth WA 6005 E: [e-mail] W: prospectresources.com.au

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Prospect Resources Limited | ABN 30 124 354 329

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[EntityRegistrationDetailsLine3Envelope]	SRN/HIN:	[HolderNumber]
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[EntityRegistrationDetailsLine5Envelope]	Security Code:	[Security Code]
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EMAIL ADDRESS:

DIRECT CREDITING INSTRUCTIONS

personalCTAX FILE NUMBER (TFN), AUSTRALIAN BUSINESS NUMBER (ABN)

DPLEASE SIGN HERE - This section must be signed for your instructions to be executed For

Privacy Clause: Automic Pty Ltd (ACN 152 260 814) trading as Automic Registry Services (Automic) advises that Chapter 2C of the Corporations Act 2001 requires information about you as a securityholder (including your name, address and details of the securities you hold) to be included in the public register of the entity in which you hold securities. Primarily, your personal information is used in order to provide a service to you. We may also disclose the information that is related to the primary purpose and it is reasonable for you to expect the information to be disclosed. You have a right to access your personal information, subject to certain exceptions allowed by law and we ask that you provide your request for access in writing (for security reasons). Our privacy policy is available on our website - www.automic.com.au

Page 1 of 4

All Registry Communication to:

GPO Box 5193, Sydney NSW 2001 1300 288 664 (within Australia) [phone] (international) [e-mail] www.automicgroup.com.au

Full Name(s) of			[ReplaceNoImages]
Registered
Ho ding
Registered
Address			Security Reference Number (SRN), Holder Identification
only			Number (HIN)

REQUEST FOR DIRECT CREDITING OF PAYMENTS

Please credit all dividend/distribution payments from the above holding directly to our account at the following financial institution.
use	SAMPLE

Note: Where payments are to be made to an account held outside of Australia, a street address must be recorded for the holding. Please fill Section D if your registered address is a PO BOX or Non-Street Address (required under the AML/CTF Act 2006).

Section - Please provide your Australian domestic bank account details

P ease log in to your Investor Portal account at https://investor.automic.com.au/#/home to submit your account's BSB, account number

nd ccount name.

Section B - For bank accounts held outside of Australia, please provide details below

Select ONE option only:

SWIFT Accounts (for

IBAN Accounts (for

accounts domiciled within

accounts domiciled

Europe, the United

outside Australia only)

Kingdom and Brazil only)

BIC Code / Sort Code / ABA / SWIFT

ccount Number / IBAN / CLABE Code (for Mexico only)

Name in which account is held

Suffix No. (for NZ Residents)

Name of bank or financial institution

Country in which bank or financial institution is located

personal

Tick here if the account nominated above is held overseas and you

wish the payment to be deposited to that account in Australian Dollars

If applicable mark here to terminate

(please refer to step 3 on page 3 in relation to these payments)

any reinvestment plan participation

For

Section C - Please provide your contact details

Contact Name

Phone Number - Business Hours

Phone Number - After Hours

Email Address (For payments to foreign bank accounts it is mandatory to provide your email)