Prospect Resources Limited provided an update on its recently completed Phase 1 RC drilling programme at the Omaruru Lithium Project, located approximately 20km east of the regional centre of Karibib, in central Namibia. The Omaruru Lithium Project, currently comprising the EPL 5533 tenement, is centred on the village of Wilhelmstal, east of Karibib in Namibia and covers 175 square kilometres. The tenement is located near a number of advanced mining projects, including Osino Resources' Twin Hills Gold Project and Lepidico's Karibib Lithium Project.

EPL 5533 contains 60 visible outcropping LCT pegmatites, with historical artisanal workings for gemstones common throughout the tenement and considerable prospectivity for the identification of further lithium-enriched deposits occurring below cover in the region. Omaruru offers excellent potential for Prospect to delineate a maiden JORC reportable lithium Mineral Resource and identify new deposits, as well as establishing a strategic position in Namibia, providing an attractive growth pipeline in the battery minerals sector and continued investment in a desirable jurisdiction of sub-Saharan Africa. Prospect currently holds a 20% interest in Omaruru via its equivalent shareholding in Richwing Exploration (Pty) Ltd. (Richwing), which is 80%-owned by Osino Resources Corp.

Prospect is currently earning a further 20% interest in Richwing (and thus Omaruru) via an investment of $1m over a 12 month period. Phase 1 RC Drilling Programme: Prospect completed its Phase 1 RC drilling programme at Omaruru across the Karlsbrunn and Brockmans deposits in February, with 22 holes completed for 2,056 metres. Karlsbrunn: Significant intersections returned from the recent Phase 1 drilling at Karlsbrunn include: · 8m @ 0.99% Li2O from 6m (OMR010); 11m @ 0.95% Li2O from 51m (OMR004); 10m @ 0.88% Li2O from 35m (OMR006); 10m @ 0.82% Li2O from 15m (OMR007) and 11m @ 0.80% Li2O from 35m (OMR003).

These results show robust lithium grades and pegmatite widths across the deposit and are broadly in line with the initial drilling of Karlsbrunn completed by Osino Resources in 2020 and reported previously by Prospect. The lithium mineralisation appears zoned either side of an unmineralised quartz core at Karlsbrunn, dominated by lepidolite and petalite, and hosted in a folded sequence of marbles and calc-silicates. The Company has also completed detailed sampling of several extensive underground adits, geologically mapped and surveyed by Prospect at Karlsbrunn, which pass laterally through the deposit at several locations.

These were developed historically to extract petalite and gemstones from the pegmatite, including beryl. Brockmans: Prospect also completed its maiden drilling at the Brockmans deposit, which is located just over 4km to the northeast of Karlsbrunn. Assay results returned were highly encouraging with two adjacent holes completed in the southwest zone evidencing a new discovery of continuous lithium mineralisation.

Historical drilling was completed at the north end of Brockmans by Osino Resources in 2020. This targeted artisanal workings with visual lithium mineralisation as lepidolite in that vicinity, but the drilling returning only low lithia (Li2O) grades from narrow pegmatite intersections. Significant lithium mineralisation returned from the recent southern Brockmans RC drilling include: 6m @ 1.30% Li2O from 13m within 14m @ 0.79% Li2O from 13m (OMR018) and 7m @ 0.90% Li2O from 17m and 8m @ 0.60% Li2O from 28m (OMR022).

Similar to Karlsbrunn, mineralisation at Brockmans is dominated by lepidolite and petalite, although cookeite is also present. The mineral cookeite can form from the alteration of lepidolite, spodumene or amblygonite, although neither of the latter minerals have been identified to date at Omaruru. The results from this new drilling at Brockmans indicate a significant thickening of the pegmatite in the south, which is considered a key aspect for the zoning of lithium mineralisation in the Karibib District (e.g. Karlsbrunn).

Importantly, the limited drilling undertaken at Brockmans indicates significant prospectivity and scope for identifying larger tonnages of higher-grade lithium mineralisation within the Omaruru Project region. Metallurgical Sampling Prospect recently collected three, 50kg bulk samples of identified lithium mineralisation from the Karlsbrunn, Brockmans and Hillside deposits. These samples are now set to undergo early stage metallurgical test work and evaluation in South Africa.

Geochemical Soil Sampling: Prospect completed detailed soil geochemical sampling at Omaruru over eight separate grids in January. Most assays for this work remain outstanding and will be reported separately once all data is received and interpreted. This work targeted strike extensions of mapped lithium mineralisation across the tenement, including to the northeast of Karlsbrunn, northeast and southwest of Brockmans, southwest of Spirit and southwest of Hillside.

Upcoming Programmes: Prospect expects to complete its Stage 1 earn-in to Omaruru during second quarter of 2023. Upcoming programmes during this period are expected to encompass infill and extensional RC drilling at the Brockmans deposit, limited diamond drilling for metallurgical test work purposes at Karlsbrunn, and potentially first-pass, short-hole, RC drilling of regional exploration targets identified from any cohesive geochemical soil anomalies associated with LCT mineralisation characteristics across the region (elevated lithium-caesium-rubidium-beryllium values). Upon completion of the Stage 1 earn-in, Prospect will hold a 40% stake in Richwing (and thus the Omaruru Lithium Project).