Prosperity updates Aceh gold-copper project

The following is an edited excerpt taken from Australian firm Prosperity Resources Limited?s quarterly report released on Monday.

Mutiara & Pelumat Prospects
(Prosperity right to acquire 73%)

During the quarter, Prosperity continued fieldwork in the Aceh license areas. The Company continued the program of surface sampling and completed a trenching program at the Mutiara Prospect in Aceh Province, Indonesia.

The Mutiara Prospect has been extended to 1 kilometre long by 1.3 kilometres wide by additional surface sampling and trenching. The Mutiara Prospect is located within the MKM IUP and is located 1.5 kilometres north west of the highly prospective Panton Luas Prospect.

The best results from the Mutiara trenching and sampling include:
Trench M27: 6 metres @ 0.43g/t gold and 0.20% copper
Trench M28: 18 metres @ 0.15g/t gold and 0.12% copper
Surface samples:
R04063: 2.47g/t gold and 0.3 7% copper
R02752: 2.64g/t gold and 2.44% copper

The sample results are considered significant as they lie in a previously unassessed catchment between the Panton Luas and Mutiara Prospects, at about 200m from Mutiara and 1.2 kilometres from Panton Luas. The better of the gold and copper results are from narrow magnetite skarn hosted bodies within weak regional alteration. A poorly defined zone of texturally destructive pyritic alteration (bleaching silica/carbonate-pyrite alteration appearing in the east), up to 200 metres wide is also anomalous, and could provide a link between alteration styles seen at the more advanced Prospects of Mutiara and Panton Luas.

Prosperity continues mapping and sampling at the Pelumat Prospect to the north west of Mutiara. Results from this program will be released shortly.

Preparations for a diamond drilling program at Panton Luas, Mutiara and Pelumat continued during the quarter.

Corporate
Prosperity appointed Mufti Habriansyah as a non-executive director on the 2nd December 2010. Habriansyah was recently appointed as the Vice President of Legal and Administration at Prosperity?s Indonesian subsidiary PT Prosplndo. Prior to that, he was a Partner at respected Jakarta law firm Soemadipradja & Taher, the Jakarta correspondent office of leading international law firm, Freehills. Habriansyah possesses over 14 years? experience in the areas of natural resources, energy and corporate law.

During the quarter PT Prosperity Surya Persada (PT PSP) completed a share subscription agreement which registers PT PSP?s 51 % equity interest in the BAM exploration IUP in Aceh. PT PSP has earned 51% of the BAM exploration IUP license through the expenditure of US$500,000 over the period since acquisition in October 2009. Under the terms of the Share Subscription Agreement, PT PSP has also appointed two of the three directors and two of the three commissioners to the respective boards of PT BAM.

Prosperity held its Annual General Meeting (ACM) on the 11th November 2010.

No exploration fieldwork was carried out at the Tennant Creek, Mt Gibson or Yalgoo projects during the December 2010 quarter. The Company continues to seek expressns of interest with a view to divesting the Mt Gibson and Yalgoo projects. (end of excerpt)