The Arcadia Lithium Project represents PSC’s flagship Project. Since acquiring the project in mid-2016, PSC has progressed the project from discovery to the most advanced African Lithium Project.

August 2020 Petalite Offtake Agreement with Sibelco N.V.

Petalite Offtake Agreement with leading industrial minerals Company Sibelco

• Term: 7 years from declaration of commercial production
• Annual Supply: Up to 100,000 dmt per annum of ultra-low iron petalite concentrate
• Specification: 4.1% Li2O, 0.05% Fe2O3 ultra-low iron petalite concentrate

Dec 2019 Mandated Lead Arranger Appointed

Afreximbank Mandated to Arrange US$143M Debt Facility

• Afreximbank to arrange and syndicate a US$143m project finance debt facility
• Afreximbank to provide US$75m of the facility
• Afreximbank is one of the largest African development banks with significant experience financing projects in Zimbabwe

Dec 2019 MOU with Uranium One Group

MOU with Uranium One Group for potential Offtake and Equity Investment

The purpose of the MOU is to afford Uranium One with a 90-day exclusivity period (subject to certain exceptions) to:

• Complete due diligence on the Company and its Arcadia Lithium Mine; and subject to satisfactory due diligence, negotiate:
• Equity investment terms in Prospect or its subsidiaries; and off-take terms for at least 51% of the Company’s future lithium production

Dec 2019 Updated DFS

Prospect Resources Updates Arcadia Definitive Financial Study 

African lithium company, Prospect Resources Ltd (ASX:PSC, FRA:5E8) (“Prospect” or “the Company”), is pleased to advise that it has updated its DFS on the 2.4 million tonne per annum (Mtpa) development of its flagship 87% owned Arcadia Lithium Project (“Arcadia” or “the Project”) in Zimbabwe. The results reinforce the Project’s financial and geological merits, positioning the Company as a leading lithium producer to both the chemical and technical markets.

Prospect’s Managing Director Sam Hosack said “The material upgrade to our DFS on a base case of a 2.4 Mtpa development of the Project is a significant achievement. The DFS results position the Company to secure a key role in the expanding global lithium market and validates my belief that Arcadia is Africa’s leading lithium project with respect to its scale, grade, economics and management team. These outcomes demonstrate Arcadia’s ability to rapidly payback project finance.”

Nov 2019 Ore Reserve update

Prospect Resources set to upgrade project economics at Arcadia following significant increase in Ore Reserve

• Ore Reserve increased to 37.4Mt@1.22% Li2O, a 39% increase;
• Contains an estimated 457,000 tonnes of Li2O (1.12Mt of Lithium Carbonate Equivalent) and 10 million pounds (Mlbs) of Ta2O5;
• Upgrade reduces risks associated with grade control and orebody knowledge, with 30% of the Ore Reserve in the Proved category;
• Increased Life of Mine beyond 15 years based on a 2.4Mtpa operation; and
• Confirms Arcadia as the 7th largest global hard rock lithium asset

Mar 2019 Significant Project Economics Update

Value Engineering Program Delivers Significant Enhancements to Project Economics at Arcadia Lithium Project 

Value Engineering undertaken successfully demonstrates that the Arcadia Lithium Project will be able to utilise High Pressure Grinding Rolls (HPGR) in its processing design

Feb 2019 Special Economic Zone Granted

Arcadia Lithium Project’s application for Special Economic Zone has been approved

The SEZ licence is valid for 10 years, with the ability to renew and extend the licence prior to expiry. A summary of the SEZ incentives includes:

Nov 2018 Maidan DFS Release

Arcadia Definitive Feasibility Study Confirms Leading African Lithium Project

Positive DFS on 2.4 Mtpa base case delivers investment metrics for project financing and development.

Aug  2018  Mining Lease Granted

Grant of Mining Lease over the Arcadia Lithium Mine

The Mining Lease covers an area of 1,031 hectares and encompasses some 57 Mining Claims owned by Prospect Lithium Zimbabwe. The purpose of a Mining Lease is to amalgamate contiguous mining claims under one licence, to simplify tenement management.

Oct 2017 National Project Status Received

The Government of Zimbabwe, through The Ministry of Mines and Mining Development and the Ministry of Finance & Economic Development, has Granted National Project Status to Prospect Resources’ Arcadia Lithium Deposit

• National Project Status is granted for 5 years

Jun 2017 Environmental License Received  

Government Environmental and Investment Approvals Awarded for Arcadia Lithium Development

Arcadia’s Environmental Impact Assessment approved by the Zimbabwe Environmental Management Agency providing permission to develop and operate · Investment License awarded by the Zimbabwe Investment Authority to develop Arcadia providing fiscal and investment incentives

Dec 2017 Ore Reserve Update

Prospect Announces Significant Increase in Ore Reserve at Arcadia

Arcadia is the largest JORC Code reported lithium deposit in Africa – comprising ~808,000 000t contained lithium Li2O (~2,000,000t contained lithium carbonate equivalent – LCE)