September 2014 Quarterly Report

Aceh gold-copper project, Indonesia

Prosperity continues to operate under a tight budget and seek funding / joint ventures for its Aceh project (figure 1) in Indonesia. Limited work was done during the quarter.

Prosperity Resources Limited

100 Parry St

PERTH WA 6000

ABN 60 103 280 235

PO Box 7516

Cloisters Square

PERTH WA 6850

Tel: +618 9322 7575

Fax: +618 9322 9485

Website:www.prosperity.net.au
Email:[email protected]

Share Registry Enquiries: Computershare Investor Services

45 St Georges Terrace

PERTH WA 6000

Tel: +618 9323 2000

Fax: +618 9323 2033

Capital Structure: ASX Listed Shares: 443.4M Unlisted Options: 1.5M Performance Rights: 7.25M

ASX Code: PSP - ordinary shares

Directors: Mo Munshi Chairman/Managing Director

John Arbuckle

Non-Executive Director

Sebastian Hempel

Non-Executive Director

Mufti Habriansyah

Non-Executive Director

Figure 1: Prosperity's land package in Aceh

September 2014 Quarterly Report

Mining Tenements Status

Corporate

The Company requested a voluntary suspension on the ASX to finalise the

Company's 30 June 2014 statutory accounts.

For further information please contact:

Mo Munshi

Chairman/Managing Director

+86 139 1017 5192

or visit www.prosperity.net.au

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013

Name of entity

Prosperity Resources Limited

ABN Quarter ended ("current quarter")

60 103 280 235 30 September 2014

Consolidated statement of cash flows

Cash flows related to operating activities

1.1 Receipts from product sales and related debtors

1.2 Payments for (a) exploration & evaluation

(b) development

(c) production

(d) administration

1.3 Dividends received

1.4 Interest and other items of a similar nature received

1.5 Interest and other costs of finance paid

1.6 Income taxes paid

1.7 Rental income

1.8 Recovery of outstanding debt

Net Operating Cash Flows

+ See chapter 19 for defined terms.

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities

Current quarter

$A'000

1.23 Aggregate amount of payments to the parties included in item 1.2 -

1.24 Aggregate amount of loans to the parties included in item 1.10 -

1.25 Explanation necessary for an understanding of the transactions

NA

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

NA

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

NA

+ See chapter 19 for defined terms.

Appendix 5B Page 4 01/05/2013

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities

3.2 Credit standby arrangements

Estimated cash outflows for next quarter

4.1 Exploration and evaluation

4.2 Development

4.3 Production

4.4 Administration

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the

related items in the accounts is as follows.

+ See chapter 19 for defined terms.

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Changes in interests in mining tenements and petroleum tenements

6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed

6.2 Interests in mining tenements and petroleum tenements acquired or increased

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

7.5 +Convertible debt securities (description)

+ See chapter 19 for defined terms.

Appendix 5B Page 6 01/05/2013

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

7.6 Changes during quarter

(a) Increases through issues (b) Decreases through securities matured,

converted

7.12 Unsecured notes (totals only)

Compliance statement

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).
2 This statement does /does not* (delete one) give a true and fair view of the matters disclosed.
Sign here: ............................................................ Date: 31 October 2014 (Company secretary)
Print name: G Taylor

Notes

1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in
mining tenements and petroleum tenements acquired, exercised or lapsed during the

+ See chapter 19 for defined terms.

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement or petroleum tenement, it should disclose the change of percentage interest and
conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of

Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

+ See chapter 19 for defined terms.

Appendix 5B Page 8 01/05/2013