ASX RELEASE | 24 APRIL 2014

RESULTS OF ECONOMIC BENEFITS STUDY PRESENTED AT LUBLIN PRESS CONFERENCE

HIGHLIGHTS:

• Economic Benefits Study completed by Deloitte Poland to assess the potential economic and social benefits to Poland and the Lublin Region from the development of the Lublin Coal Project

• Study highlighted significant positive benefits including the potential to double foreign direct investment in the Lublin region and create new jobs

• Study results presented at a press conference in Lublin with speeches given by senior Polish and Australian officials including the President and Governor of the Lublin Region and the Australian Ambassador to Poland

• Letter received from Poland’s Minister of Treasury expressing support of the Lublin Coal Project

Prairie Downs Metals Limited (“Prairie” or “Company”) is pleased to report that it commissioned Deloitte Poland to complete an Economic Benefits Study (the “Deloitte Study”) that outlined the potential benefits that the Lublin Coal Project (“LCP” or “Project”) could bring to the Lublin region and to the Polish economy. Prairie held a press conference at the Lublin regional government town hall in mid April 2014 to present the results of the Deloitte Study and invited numerous distinguished Polish and Australian guests to present and to show their support for the Project. The conference was attended by local and national press and received coverage in numerous national publications and television. Conference speakers included:

• Mrs Jean Dunn, Australian Ambassador to Poland; • Mr Wojciech Wilk, Lublin Province Governor; • Mr Krzysztof Hetman, Marshal of Lublin Province; • Mr Krzysztof Żuk, President of Lublin; • Professor Elżbieta Chojna-Duch, Member of Poland’s Monetary Policy Council; and • Mr Ben Stoikovich, CEO Prairie Downs Metals Limited.

In addition, Prairie received a formal letter from Poland’s Minister of Treasury, Mr. Włodzimierz Karpiński, expressing his support for the LCP.

Prairie CEO Mr Ben Stoikovich Mrs Jean Dunn, Australian Ambassador

to Poland Mr Krzysztof Hetman, Marshal of Lublin

Province

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Mr Krzysztof Zuk, President of Lublin Jean Dunn, Australian Ambassador to

Poland talks to Senior Members of Prairie’s team including Country Manager Janusz Jakimowicz and Miroslaw Taras, former Bogdanka

Chairman

Wojciech Wilk, Lublin Province Governor

Deloitte Economic Benefits Study

The Deloitte Study indicated that the Lublin region in the Eastern Border area of Poland has a high level of unemployment of up to 20%, compared to the national average of 14%. In the Eastern Border area GDP per capita is some 32% lower than the national average. This area of Poland has a much lower rate of industrialization compared to the rest of the country, with the regional economy being heavily dependent on agriculture. The lack of investment and economic opportunities in this region has led to a high negative migration balance among people in the 25-34 age range, who migrate abroad or to other parts of Poland in search of employment. The Deloitte Study confirmed that up to 2,000 direct and 10,000 indirect jobs could be created through development of the LCP, and that significant improvement in standard of living would occur within the municipalities in the vicinity of the Project. The Project would stimulate the development of education, health services, and communications and has the potential to double the amount of foreign direct investment in the Lublin province. Prairie’s LCP has the potential to be a significant contributor to the development of the region and to the creation of jobs and local infrastructure. A number of potential non-economic benefits were also confirmed including positive social impacts of the project on the development of human and intellectual capital, improved health standards and social security and an improvement in the image of the region. For further information contact: Ben Stoikovich Hugo Schumann Anastasios Arima Chief Executive Officer Business Development Executive Director +44 207 478 3900 +44 207 478 3900 +61 8 9322 6322

info@prairiedownsmetals.com.au

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ABOUT THE LUBLIN COAL PROJECT

The Lublin Coal Project is a large scale thermal and semi-soft coking coal project with a current JORC Inferred Resource of 1.6 billion tonnes (”CRE”) (refer to ASX Announcement 14 February 2013) across four coal exploration concessions in south eastern Poland. The CRE is based on the review and modelling of historic data over the Company’s concessions, including the logs from 200 cored boreholes. Recent coal quality test work has demonstrated potential for semi-soft coking coal from the main 391 coal seam which hosts a current inferred resource of 327 million tonnes.

Figure 1: Lublin Coal Project Location Map in Poland

The Lublin Coal Basin is an established coal producing province and has extensive infrastructure, including roads, rail and power. The Project is situated adjacent to the Bogdanka coal mine which has been in commercial production since 1982. Bogdanka has successfully been able to demonstrate that the Lublin Coal Basin has the potential to host a new generation of large scale coal projects and has recently expanded its production levels to over 8 million tonnes per annum (targeting production of 11.5 million tonnes per annum by 2015) of thermal coal. The Lublin basin has ideal geological and mining conditions for high productivity longwall plow operations with world record production rates set by Bogdanka. As a result, the Boganka mine is currently the lowest operating cost hard coal mine in Europe. Preliminary analysis by the Prairie team indicates the potential to introduce international best practice in coal mine design and production technology to deliver substantial operational and product quality improvements.

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Forward Looking Statements This release may include forward-looking statements. These forward-looking statements are based on Prairie’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Prairie, which could cause actual results to differ materially from such statements. Prairie makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release. Competent Person Statements The information in this report that relates to Mineral Resources was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. Information in this announcement that relates to Mineral Resources is based on information compiled by Dr Richard Lowman (an employee of independent consultant Wardell Armstrong LLP which owns Wardell Armstrong Limited) who is a Fellow of the Geological Society of London. Dr Lowman has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person under the 2004 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Lowman consents to the inclusion of the data in the form and context in which it appears.

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