Prospect Resources Limited announce that the Phase 2 diamond drilling program at its Step Aside Lithium Project in Zimbabwe is planned to commence today. The Phase 2 program is planned to build on the success of the Phase 1 campaign by delivering up to 2,000m of step-out drilling targeted at strike and dip extensions of the key identified pegmatite bodies at Step Aside, the so-called ‘Colga A', ‘D' and ‘E' pegmatites. The pegmatite, D, is interpreted to strike over at least 120m and is open to the south and down dip.

The Phase 1 RC and diamond program at Step Aside (17 RC holes and 13 diamond holes for a total of 1,636m drilled) was completed in October 2022. It demonstrated robust intercepts of strong lithium tenor (dominated by spodumene mineralisation) at relatively shallow depths, and in multiple locations. Better results from the Phase 1 program included: 6.1m @ 1.49% Li2O from 82.2m (CDD011); 9.0m @ 1.02% Li2O from 38.0m (CRC011B); 8.0m @ 1.09% Li2O from 53.9m (CDD001); 4.4m @ 1.43% Li2O from 52.6m (CDD006); and 6.0m @ 1.05% Li2O from 17.0m (CDD007).

Prospect's 100%-owned Step Aside Lithium Project is located within the Archaean Harare Greenstone Belt, approximately 35 km east of Zimbabwe's capital city Harare, with the claim covering approximately 100 hectares. Step Aside is 8 km north of the Arcadia Lithium Mine (under construction), which was discovered and sold to Huayou Cobalt by Prospect last year for approximately USD 378 million in cash. The Step Aside Project consists of a folded sequence of meta-sediments of the Gwebi and Mapfeni Members, of the Passford Formation.

These meta-sediments are intruded by north trending pegmatites, dolerites and quartz veins of the Mashonaland Suite, which make up the youngest rocks found within the Harare Greenstone Belt. Six visible mineralised pegmatites (denoted ‘Colga A' to ‘F') have been identified within meta- dolerite host rocks at Step Aside. Individual pegmatites, geologically mapped at surface, are all generally parallel to one another, striking roughly north-south with dips of 40-45° to the west geologically mapped at surface.

Drilling indicated sub-surface dips of closer to 70°. Pegmatite A on the eastern side and Pegmatite D to the west are the widest, measuring 5- 15m thick and 4-20m thick, respectively. The strike lengths of the A, B, C, D, E and F pegmatite outcrops at surface, are between 50m and 120m long.

The Phase 1 drilling campaign at Step Aside was undertaken from July to October 2022 and comprised 17 RC drill holes for 783 metres and 13 diamond drill holes for 853 metres. Phase 1 drilling covered less than 10% of the Step Aside Project claim area, leaving significant potential for further lithium discoveries across this prospective ground holding. Based on the encouraging drilling intersections returned last year, the Company will also complete additional geochemical soil sampling at the northern end of the claim adjacent to Pegmatite E, which was not completely covered by initial exploration of Step Aside in 2018.