Mr. Heye Daun reports

OSINO PARTNER COMPLETES PHASE 1 EARN-IN AT OMARURU LITHIUM PROJECT, NAMIBIA, PROCEEDS TO PHASE 2

Osino Resources Corp. has completed the phase 1 earn-in on its majority-owned Omaruru lithium project in Namibia by Prospect Resources Ltd., and Prospect will proceed with the phase 2 earn-in.

Osino entered into an earn-in and shareholder agreement with Prospect in fourth quarter 2022, whereby Prospect had the right to earn into a 40-per-cent interest in the project upon completion of phase 1 and can earn a 51-per-cent interest upon completion of phase 2. Prospect can earn an up-to-85-per-cent interest in the project with Osino carried until completion of a definitive feasibility study (see Osino press release dated Sept. 30, 2022). Omaruru is located 20 kilometres southeast of Osino's flagship Twin Hills gold project.

Heye Daun, Osino's president and chief executive officer, commented: "We are encouraged by the results of the phase 1 program on our Omaruru lithium project. Prospect Resources' recently completed drilling program has expanded the known lithium mineralization in the area and identified several drill targets that were previously under cover. The success of the phase 1 program sets the stage for potential new discoveries during the phase 2 drilling campaign planned for Omaruru. We look forward to Prospect's upcoming phase 2 exploration activities and results as they become available into the next quarter. Osino shareholders will continue to benefit from exploration success at Omaruru while the company remains focused on fast-tracking its flagship Twin Hills gold project to production."

Project background

The Omaruru lithium project is centred on the village of Wilhelmstal, east of Karibib in Namibia, and covers 175 square kilometres. The tenement is located near several advanced mining projects, including Lepidico's Karibib lithium project and Osino's Twin Hills gold project.

Osino undertook an initial evaluation of the lithium potential of the project from 2019 to 2021. This work included mapping, rock grab sampling and a 16-hole (1,942-metre) reverse circulation drill program in 2020. Prospect has advanced the project since entering the agreement with Osino in 2022, recently announcing a new lithium discovery from phase 1 drilling results (see Osino press release dated March 31, 2023).

Omaruru contains 60 visible outcropping lithium–cesium–tantalum pegmatites, with historical artisanal workings for gemstones common throughout the tenement and considerable prospectivity for the identification of further lithium-enriched deposits occurring below cover in the region.

The project offers excellent potential to delineate a maiden lithium mineral resource and identify new deposits to build a project of sufficient scale, as well as establishing a strategic position in Namibia, providing an attractive growth pipeline in the battery mineral sector and offering a continued investment in a desirable jurisdiction of sub-Saharan Africa.

Follow-up phase 1 reverse circulation drilling program

Prospect completed its follow-up phase 1 RC drilling program at Omaruru (focused on Karlsbrunn, Brockmans and regional prospects) in late June, with 27 holes completed for 1,839 metres. All assay results from this drilling have been received and are reported in this release.

Karlsbrunn Main

Five holes for 345 metres of drilling (OMR045-OMR049) were completed at the deposit as part of the follow-up phase 1 program (two holes were abandoned). Significant intersections returned include:

• 35 metres of 0.85 per cent Li2O from surface, including five m of 1.03 per cent Li2O from one m, and 13 m of 1.04 per cent Li2O from 12 m (OMR046);
• 18 m of 0.88 per cent Li2O from surface and 13 m of 0.79 per cent Li2O from 21 m (OMR045).

The drilling was aimed at extending the deposit's main root zone feeder system to the northeast. Drill holes OMR045 and 046 indicated a thickening of mineralization in this location and returned excellent widths of higher-grade lithium, with the system still open in that direction. Additional soil geochemical sampling in this corridor to the northeast will be undertaken as part of the phase 2 exploration program, and drilling will then be employed to target potential buried extensions of the root zone in that region.

The lithium mineralization at Karlsbrunn Main appears zoned on either side of an unmineralized quartz core, is dominated by lepidolite and petalite, and is hosted in a folded rock sequence of marbles and calc-silicates.

Bergers

The Bergers deposit is located about 4.5 kilometres to the east of the Karlsbrunn Main deposit and consists of a central area of subdued outcropping lithium mineralization. On April 26, 2023, Prospect announced the results of a geochemical soil sampling program over Omaruru, which included grids over interpreted, concealed pegmatites at Bergers NE and Bergers SW. The soil sample results were very encouraging and showed strong, cohesive anomalies in LCT pathfinder elements over both the geochemical grids at Bergers.

During the follow-up phase 1 program, 431 m of first-pass exploratory scout drilling was completed in seven holes covering the Bergers NE and Bergers Central areas. The Bergers SW area was found to be too challenging to drill with a conventional RC rig and is planned to be targeted in phase 2 using a more suitable machine for the hilly terrain.

The maiden drilling program completed over Bergers produced positive results, including seven m of 0.84 per cent Li2O (OMR032) from an only 16-metre depth (at Bergers NE), where no pegmatite outcrop was visible, but had been inferred from the overlying soil geochemical anomalies.

This downhole intersection included two separate higher-grade zones of lithium mineralization in the form of petalite, that returned two m of 1.46 per cent Li2O from 16 m and two m of 1.21 per cent Li2O from 21 m. Further drilling is required downdip of OMR032 to determine continuity and widths of the high-grade mineralization.

In addition, drill hole OMR037 at Bergers Central generated three m of 0.71 per cent Li2O from 25 m, interpreted to be petalite mineralization. It also remains open at depth and will be targeted during the planned phase 2 exploration program.

The limited scout drilling program completed for Bergers demonstrates the broader high-grade lithium potential for the Omaruru project. It also shows that the geological mapping and follow-up soil geochemical sampling completed by the Prospect exploration team were very effective first-pass lithium exploration techniques for wider use at Omaruru.

Brockmans

The Brockmans area was targeted by 10 holes for 712 m during the follow-up phase 1 program, with seven holes positioned close to the previous high-grade intersection in drill hole OMR018 (six m of 1.30 per cent Li2O from 13 m; see Prospect Australian Securities Exchange announcement dated March 28, 2023).

The drilling failed to extend the zone laterally, with only one hole (OMR027) returning an anomalous intercept of two m of 0.67 per cent Li2O from 21 m. This may indicate that the higher-grade zone in OMR018 resulted from a thickening or flexure in the pegmatite intrusive there.

There remains a 500-metre section north of OMR018 at Brockmans that has not been drilled comprehensively to date, and this area is considered a lithium target based on the thick pegmatite mapped in that locality.

The other three holes completed at Brockmans did not intersect anomalous grades of lithium although holes OMR024 and 025, completed to test a geochemical soil anomaly at Brockmans SW, cannot yet be considered a definitive test of the prospectivity given the anomaly stretches over at least 200 m of strike.

Karlsbrunn NE

Four short RC holes for 270 m targeted a diffuse geochemical soil anomaly at this prospect, with two holes collared into the hangingwall marble host rock and two clipping the edge of the soil anomaly producing low-grade results.

The Karlsbrunn NE soil grid is planned to be extended in phase 2 to better define that anomaly (for future drilling), which is located just over one km northeast of Karlsbrunn Main.

Geological mapping

During the phase 2 program, the area adjacent and southeast of Karlsbrunn Main is set to be geologically mapped and sampled in more detail, with early reconnaissance and satellite imagery over that region indicating the presence of numerous pegmatite swarms with potential petalite mineralization present.

Geochemical soil sampling

Prospect completed detailed soil geochemical sampling at Omaruru over eight separate grids in January (results were reported in Prospect ASX announcement dated April 26, 2023).

Follow-up drilling of lithium targets delineated from that work has proved that this early-stage exploration technique has been effective for Omaruru, using the LCT pathfinder elements analyzed.

The identification of blind, concealed lithium mineralization as petalite at Bergers NE and Bergers Central during the current drilling campaign is testament to its value being more widely employed at the Omaruru project.

As such, the coming phase 2 exploration work is set to expand and infill soil sample grids northeast and south of Karlsbrunn Main, and northeast of the original Spirit SW grid, where it adjoins the historical Spirit mine workings and has previously generated an intercept of six m of 0.72 per cent Li2O (KBR010) in RC drilling completed by Osino (see Prospect ASX Announcement dated Sept. 29, 2022). A 700-metre section of intermittent pegmatite strikes northeast-southwest in this region, and surface lithium mineralization is prevalent.

The new soil sampling work planned adjacent to Spirit is aimed at generating new concealed lithium targets in blind pegmatite deposits.

Phase 2 program

With completion of the phase 1 earn-in to 40 per cent of the Omaruru project, the decision to move forward into phase 2 earn-in has been taken by Prospect.

Planned phase 2 exploration activities include:

• Expand and infill geochemical sample grids at Karlsbrunn NE and Spirit;
• Detailed geological mapping and sampling of the prospective region southeast of Karlsbrunn Main;
• Follow-up mixed RC/rotary air blast drilling of targets at Karlsbrunn NE after soil survey extensions;
• RAB/light RC drilling infilling and extending anomalous results located at Bergers Central;
• RC drilling to the north of Brockmans, where 500 m of strike remains lightly tested.

Other drilling targets exist at Karlsbrunn Main to the northeast, where higher-grade lithium was recently identified in a root feeder zone in holes OMR045-046.

Bergers SW is a prospective target, but hilly terrain needs an alternative drilling solution (light RAB). Similarly, Petalite SW was also identified as a target by soil sampling but is yet to be drilled.

The main objective of the phase 2 exploration program is to continue proving up strike extensions of existing or new, coherent indications of lithium-enriched LCT pegmatite deposits, with a focus on targeting higher grades and potential delineable mineral resources across the district within EPL 5533.

Earn-in agreement terms

Under the agreement, Prospect has earned a 40-per-cent interest in the project with a $1-million (U.S.) investment and can earn a further 11-per-cent interest through a $560,000 (U.S.) investment, totalling a 51-per-cent ownership in the project.

Upon the completion of phase 2 and having earned 51 per cent, development funds are to be contributed on a pro rata basis. If one party fails to contribute its pro rata share, its shareholding will be diluted. The minority shareholder will be diluted down to 15 per cent, at which point its interest shall be free carried until the completion of the definitive feasibility study.

During phase 3 of the agreement, if Prospect's spending does not reach a minimum of $500,000 (U.S.) within the 12-month period following phase 2, either party will have the option to purchase the other party's interest for an agreed sum.

Qualified person statement

David Underwood, BSc (honours), is vice-president, exploration, of Osino, has reviewed and approved the scientific and technical information in this news release, and is a registered professional natural scientist with the South African Council for Natural Scientific Professions (PrSciNat No. 400323/11) and a qualified person for the purposes of National Instrument 43-101.

About Prospect Resources Ltd.

Prospect is an Australian Securities Exchange-listed company focused on the exploration and development of opportunities in battery and electrification metals in the sub-Saharan African region. The team at Prospect has a proven record of value creation and systematic derisking of early-stage projects. Prospect advanced its flagship Arcadia lithium mine project in Zimbabwe from exploration through to resource definition, early-stage economic valuation, definitive studies, offtake agreements and strategic project financing process. Arcadia was discovered by Prospect in 2016 and was ultimately sold to Zhejiang Huayou Cobalt in early 2022 for approximately $378-million (U.S.) in cash.

About Osino Resources Corp.

Osino is a Canadian gold exploration and development company focused on the fast-tracked development of its wholly owned Twin Hills gold project in central Namibia. Since its grassroots discovery by Osino in August, 2019, the company has completed more than 225,000 m of drilling and has completed a suite of specialist technical studies culminating in the recently published Twin Hills definitive feasibility study dated effective June 12, 2023. The DFS describes a technically simple and economically robust open-pit gold operation with a 13-year mine life and average annual gold production of over 169,000 ounces per annum.

Osino has a commanding ground position of approximately 8,000 square kilometres located within Namibia's prospective Damara sedimentary mineral belt, mostly in proximity to and along strike of the producing Navachab and Otjikoto gold mines. The company is actively exploring a range of gold prospects and targets along the belt by utilizing a portfolio approach geared toward discovery, targeting gold mineralization that fits the broad orogenic gold model.

Its core projects are favourably located north and northwest of Namibia's capital city Windhoek. By virtue of their location, the projects benefit significantly from Namibia's well-established infrastructure with paved highways, railway, power and water in close proximity. Namibia is mining friendly and lauded as one of the continent's most politically and socially stable jurisdictions. Osino continues to evaluate new ground with a view to expanding its Namibian portfolio.

We seek Safe Harbor.