Prospect Resources Ltd (ASX:PSC) Significant Increase in Mineral Resource Estimate - Arcadia

Perth, Australia (ABN Newswire) - Prospect Resources Ltd. (ASX:PSC) (the "Company") is pleased to announce a further increase in the Mineral Resource estimate at its flagship Arcadia Lithium Deposit in Zimbabwe to 72.7 Mt at 1.11% Li2O (0.2% Li2O cut off). Of importance is the conversion of all the Inferred Resource from the conceptual pit design into Indicated and Measured categories. This increase in confidence in the Mineral Resource classification can allow further optimisation of the pit inventory and Ore Reserves that were declared as part of the PFS study completed by the Company in July.

Highlights:

- Total Mineral Resource estimate increased to:

o 43.2 Mt grading 1.41% Li2O (1% Li2O cut off) and

o 72.7 Mt grading 1.11% Li2O (0.2% Li2O cut off)

- 31% increase in High Grade Measured and Indicated Resource estimate to:

o 37.4 Mt grading 1.41% Li2O (1% Li2O cut off)

The Mineral Resource upgrade at Arcadia confirms its status as the largest JORC Code reported resource in Africa and the 6th largest globally with an overall Mineral Resource comprising ~808,000t of contained lithium oxide, equating to ~2,000,000t contained lithium carbonate equivalent (LCE) (see Figure 2 in link below).

In response to the upgrades to the Arcadia Mineral Resource estimates, Mr Hugh Warner (Chairman) had the following to say: "Since completion of the PFS, we have been working hard to complete this upgrade to Arcadia's Mineral Resource estimate. I'm happy to say that the infill drilling completed within the PFS pit inventory areas has converted all the Inferred Resources within the conceptual pit design into Indicated and Measured categories. As announced earlier this week, this infill drilling programme also discovered the Basal Pegmatite (BP). Our team is continuing with pit optimisation studies, after which, we plan to upgrade our Ore Reserves."

Arcadia Mineral Resource Update

Digital Mining Services ("DMS") has reviewed the updated data and produced a revised Mineral Resource estimate as of 24 October 2017. Based on additional infill drilling to the west and within the PFS Conceptual Pit (announced 3 July 2017), and receipt of the assays from the Phase 5 drilling campaign, the Arcadia Mineral Resource estimate has been upgraded and now represents a significant increase on the Mineral Resource estimate announced on 14 March by Prospect.

As detailed in the PFS completed by the Company in July, additional infill drilling was ongoing to convert the existing Inferred Mineral Resource located within the pit inventory into an Indicated and Measured Resource respectively (see Figure 3 in link below). This infill Phase 5 drilling programme successfully converted the Inferred Mineral category into Measured and Indicated categories, resulting in a 31% increase to 37.4 Mt grading 1.41% Li2O (1% cut off).

The overall dimensions of the Arcadia Mineral Resource model now represent 2.6km of southwestnortheast strike, by 900m downdip (southeast -northwest) to a 130m depth (see Figure 3 in link below).

To view tables and figures, please visit:
http://abnnewswire.net/lnk/42LC891Z

About Prospect Resources Ltd:

Prospect Resources Ltd. (ASX:PSC) is based in Australasia with operations in Zimbabwe and is a publicly listed company. We are committed to creating value for Prospect's shareholders and the communities in which our company operates. Our vision is to build a Southern African based mining company of international scale.

Source:

Prospect Resources Ltd.

Contact:

Hugh Warner Prospect Resources Ltd. Executive Chairman T: +61-413-621-652 Harry Greaves Prospect Resources Ltd. Executive Director T: +263-772-144-669 WWW: www.prospectresources.com.au