• Prospect increased Mumbezhi’s mineral resource to 208.1 million tonnes with contained copper rising to about 877,000 tonnes
• The project’s contained gold resource more than doubled to about 262,000 ounces improving potential future by product value
• Prospect is advancing Mumbezhi toward a multi deposit copper development supported by expanding exploration and higher confidence resources

Harare -Prospect Resources has taken a significant step toward strengthening the long term development case for its Mumbezhi Copper Project in Zambia after expanding the project’s mineral inventory and more than doubling its contained gold resource during the quarter ended 30 June 2026.

The update shifts the investment story beyond simple resource growth. Mumbezhi is evolving from a conventional copper exploration project into a broader copper, gold and cobalt development opportunity, increasing the potential value that could eventually be recovered from every tonne of ore mined if future studies confirm commercial viability.

The updated Mineral Resource Estimate increased by 20% to 208.1 million tonnes grading 0.42% copper, containing approximately 877,000 tonnes of copper, 262,000 ounces of gold and a smaller cobalt inventory. When the contribution from gold and cobalt is included, the copper equivalent grade increases to 0.49%.

Copper remains the project’s principal commodity, although the expansion of the gold inventory materially improves the project’s potential economics. Prospect reported that contained gold increased by 106% following the reassaying of drill samples from Nyungu Central, the project’s largest deposit, where additional gold mineralisation was identified within existing copper zones.

For investors, the significance lies less in the increase in gold itself than in what that gold could eventually contribute to a future mining operation. By product metals generate additional revenue from material that is already being mined and processed, lowering the effective cost of producing the primary commodity. In large copper mines, gold credits can improve operating margins, strengthen project returns and make lower grade deposits more commercially attractive.

That benefit remains theoretical at this stage. Prospect must still demonstrate through metallurgical testing that the gold can be recovered efficiently and economically through the proposed processing route. The company must also establish whether the additional recovery justifies any extra processing costs before the value can be incorporated into future economic studies.

The enlarged resource nevertheless strengthens the scale of the project. Contained copper increased by 14% from the previous resource released in February 2026, supported by growth at Nyungu Central and the inclusion of a maiden resource at West Mwombezhi.

Scale is an important driver of copper project economics. Large deposits allow fixed infrastructure such as processing plants, power connections, tailings facilities and administration costs to be spread across more tonnes of ore over a longer mine life. The larger the mineral inventory, the greater the opportunity to improve capital efficiency, provided mining and processing costs remain competitive.

Prospect also reported progress in improving geological confidence. Around 35% of the Nyungu Central resource is now classified as Indicated, while more than 40% of the overall Mumbezhi Mineral Resource falls within the Indicated category.

That distinction matters because Indicated Resources carry a higher level of geological confidence than Inferred Resources. They provide a stronger foundation for mine design, engineering studies and eventual reserve estimation, reducing geological uncertainty as projects advance toward development.

The June quarter also strengthened the case for West Mwombezhi as a potential future source of ore.

Drilling defined shallow copper sulphide mineralisation extending for more than one kilometre, with the system remaining open to the west and south. Prospect reported intersections including 8.9 metres grading 0.78% copper from 54.6 metres, including 7 metres at 0.93% copper, together with additional intersections of 6.7 metres grading 0.57% copper, 5.8 metres grading 0.44% copper and 5 metres grading 0.47% copper.

The shallow nature of the mineralisation is encouraging because near surface deposits generally require lower stripping ratios and lower mining costs than deeper deposits. Whether that translates into an economically viable open pit operation will depend on additional drilling, continuity of mineralisation, geotechnical conditions and future engineering studies.

Exploration success continued beyond the updated resource. Soil sampling outlined a copper anomaly extending more than one kilometre south of West Mwombezhi, while aircore drilling completed after the end of the reporting period identified two additional zones of shallow copper mineralisation west of the current resource. Prospect described these as previously untested walk up exploration targets, providing further opportunities to expand the mineral inventory.

The company’s Phase Three exploration programme, which commenced in May, continues across the broader licence area using diamond, reverse circulation and aircore drilling. Work is targeting extensions to Nyungu Central while testing several regional prospects that share similar geological characteristics.

Those programmes support Prospect’s longer term strategy of developing Mumbezhi as a central processing hub supplied by multiple deposits rather than relying on a single ore body.

A hub and satellite mining model can improve project economics by extending plant utilisation, increasing operational flexibility and spreading infrastructure costs across several deposits. Success will ultimately depend on whether surrounding prospects contain sufficient tonnage, grade and continuity to support commercial mining.

The project also benefits from its location in Zambia’s North Western Province, one of Africa’s fastest growing copper regions. The province hosts established operations including Sentinel and Lumwana, providing access to mining expertise, contractors, transport infrastructure and electricity networks that can reduce development risk compared with more remote greenfield projects.

The broader policy environment is also supportive. Zambia continues to pursue higher copper production through increased exploration and mine development as it seeks to strengthen its position among the world’s leading copper producers. Projects capable of progressing through exploration into production therefore carry increasing strategic importance.

Despite the resource growth, Mumbezhi remains an exploration stage project. The company has not declared an Ore Reserve, completed a definitive economic assessment or made a construction decision. Significant work remains across metallurgy, mine planning, environmental approvals, engineering design, financing and feasibility before commercial production can be considered.

Prospect’s immediate objective is therefore no longer simply discovering additional mineralisation. The company must now demonstrate that the enlarged resource can be converted into an economically mineable operation capable of generating attractive long term returns.

The latest resource update strengthens that pathway. Prospect now controls a mineral inventory exceeding 200 million tonnes containing approximately 877,000 tonnes of copper, 262,000 ounces of gold and additional cobalt. More importantly, the project is steadily evolving into a diversified copper development opportunity where gold and cobalt could enhance future project economics rather than simply increasing the size of the resource.

The next phase of value creation will be measured by resource conversion, metallurgical performance, engineering outcomes and ultimately the declaration of mineable reserves. Those milestones, rather than further exploration success alone, will determine whether Mumbezhi becomes Zambia’s next producing copper mine.

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