United Goalink Limited (“UGL”)

Prosperity holds an effective 35% interest in UGL, a joint venture company engaged in the production and exploration of iron ore in the State of Ceará, Brazil. UGL owns approximately 600 square kilometres of exploration rights and approximately 3 square kilometres of mining concessions.

Brazil is one of the World’s largest exporters of iron ore. It has a long history of iron ore mining and is known to have large, high quality iron ore deposits. At this time, the majority of the exploration sites owned by UGL are at an early stage of exploration, and they are located in Ceará, an area where many good quality deposits have been found. Ceará also has good infrastructure, including existing railway lines and port facilities.

Construction of the processing plant was completed and trial production has commenced. The plant is designed to beneficiate the quality of iron ore to 62% iron content or higher, and its production capacity will be increased gradually to 900,000 tonnes per annum.