September 2012 Quarterly Report

Projects

Pelumat Prospect (Prosperity 73%) Gold - Copper - Molybdenum

The Pelumat Prospect is one of ten known magnetite and skarn intrusive related targets recognised by Prosperity along 60 kilometres of strike length of its 410 square kilometre Aceh project (figure 1).

Figure 1: Prosperity's land package in Aceh

Seotember 2012 Ouarterly Reoort PROSPERITY

Extensions of mapping and the soil sampling program south have demonstrated highly anomalous skarn continues beyond previously determined limits. Drilling of this extension is proposed. Thematic summary of copper values in rock chip samples are shown in Figure 2.

Legend

BAMIUP

licence boundary

PSP drill hole

Rock l Charme!/ Float Sample Results

.À t + ! T >lOOOppmCu

.A. t + ! T 750- 1000 ppm Cu

l<>l'V 500 - 750 ppm Cu

1:::. l<>l'V 300 - 500 ppm Cu

/j. l<> l v 150 - 300 ppm Cu

& l • l ,.< lSOppmCu

•

-) PROSPERITY

Pelumat Project, Indonesia

Cu Rock Sample Results

over cs ( derarea) -------- --

Figw·e 2: Sununary or distlibution or Cu values fl•om •·ock chip samples Pelwnat PJ·oject area ove· RTP magnetics.

September 2012 Quarterly Report

Figure 3: Molybdenum values in hole PMDH001. Mo generally associates with the copper and gold but also occurs independently of them at some sites.

Corporate

Prosperity Increases Ownership Over Aceh Assets

After the quarter-end, the Company advised that it had reached agreement with its joint-venture partners to acquire an additional 10% of the equity in three exploration licence (IUP) holding companies in the Company's copper-gold project in Aceh.

The agreement brings the Company's Indonesian subsidiary's ownership in these

assets to 90%, with the balance remaining with the joint-venture partners.


September 2012 Quarterly Report

As consideration for the additional equity stake and assistance in concluding the agreement, the Company will issue 11,000,000 fully paid ordinary shares to the joint- venture partners and contract intermediaries.

The three companies are: