Prosperity: New high grade surface sample results from Pelumat prospect

(Perth, February 14, 2011)--Prosperity Resources Limited is pleased to announce high grade gold, copper and silver results from the Pelumat Prospect. The Pelumat Prospect is located 10 kilometres to the north west of the Mutiara and Panton Luas Prospects within Prosperity?s 410km2 contiguous tenement position along a 60km structural corridor to the west of the Sumatra Fault, which is highly prospective for gold/copper mineralisation.

This sampling follows up the results of the recent helimag survey and reconnaissance work completed at the Pelumat Prospect in early 2010.

Based on these results Prosperity plans to mobilise a deep capacity drilling rig in the coming weeks to commence a drilling program at the Pelumat Prospect.

Chairman Mo Munshi said ?While still at a relatively early stage, the results of our systematic exploration at Aceh continue to upgrade the prospectivity of this exciting gold/copper project. Eight key prospect areas, several with multiple targets have been identified to date including six porphyry intrusive centres.?

Pelumat Sampling Results
The Pelumat area of the BAM exploration IUP contains several distinct strong magnetic highs identified in Prosperity?s recent airborne magnetic survey. Two of these, Pelumat North (2km long) and Pelumat South (3km long) have been subject to reconnaissance mapping and sampling. At Pelumat North, strongly magnetic fine grained dioritic intrusive rocks have been identified with associated felsic zones. There is evidence for overprinting alteration and locally elevated copper values.

The Pelumat South magnetic anomaly is broader and locally more intense. Surface samples including high grade oxidised float ranging up to 109 g/t Au, 490 g/t Ag and 37% Cu have been located. All strongly anomalous surface grab samples within the Prospect are oxidised, with some samples containing azurite.

The high silver values suggest that the system is low in pyrite. The highly anomalous gold-copper samples also contain markedly elevated values in one or more of the following, As, Bi, Sb and Te, when compared to surrounding samples. This is suggestive of either orogenic, or more probably, skarn mineralisation. The high bismuth and tellurium content supports an intrusive relationship, probably with a high iron contact skarn association for these samples.

Only a small portion of this prospect has been systematically sampled and further work, covering the remainder of the Prospect is planned. Surface sampling and mapping programs are ongoing. (ends)