RE: PAYNES FIND JOINT VENTURE, MT GIBSON(PSP 60%, MWE...

RE: PAYNES FIND JOINT VENTURE, MT GIBSON
(PSP 60%, MWE 40%)

Prosperity Resources Limited (ASX: PSP) on behalf of the Payne’s Find Joint Venture with Mawson
West Ltd (ASX:MWE) advises it has now earned its 60% equity through sole funding the first
$500,000 of exploration as a condition of the Joint Venture Agreement.

The Paynes Find Joint Venture contains 4 granted exploration licences, E59/853, E59/878, E59/903
and E59/1102 with a total area of 448.4km2 and is in close proximity to Mt Gibson Iron’s Extension
Hill Deposit and the nearby Gindalbie Metal’s Karara Deposit (Figure 1) and with the recently
completed 50 metre close-spaced aeromagnetic survey over a larger portion of this ground, the
Company is enthusiastic about the upcoming exploration which includes the Warriedar Prospect
(More detail on the individual projects can be obtained from www.prosperity.net.au).

The Company has also been advised by its joint venture partner, Mawson West Ltd that they have
decided not to contribute to the current exploration programme due to a significant exploration project
in the Congo and are prepared for their remaining equity interest to be further diluted. With the current
planned budget, plus previous expenditure amounting to $850,000, this will result in the Company’s
equity increasing, based on the dilution formula, to 71.8%.
The Company is awaiting the results of the recently completed 4584 metre RC drill programme at the
Woolshed Iron Ore Prospect, Mt Gibson and an announcement is expected to be released to the ASX
with significant results.

Due to the high level of interest in the Company’s iron ore prospects, the Company continues its
discussions with potential new strategic investors from the Chinese steel industry. The Company’s
Chairman, Mr Mo Munshi, who is based in Beijing, has had several meetings with these investors and
the Company will provide greater details as negotiations are finalised.
For further information please contact the undersigned on (08) 9322 7575.

Yours faithfully
Ric Dawson
Managing Director