ASX RELEASE 24 December 2013 SHARE PLACEMENT TO RAISE $3.6 MILLION Prairie Downs Metals Limited ("Prairie" or "the Company") is pleased to announce that the Company will place up to 13.5 million ordinary shares at $0.27 each to a number of European and Australian based institutional and high net worth investors, to raise up to $3.645 million before costs ("the Placement").

Proceeds from the Placement will allow the Company to accelerate exploration activities and commence other new technical activities at the Lublin Coal Project ("the Project"), as well as to provide working capital.
Exploration and coal quality test results at the Project to date have been highly encouraging and the Company looks forward to continuing with its exploration activities in 2014 including the completion of a Scoping Study during early to mid-2014.
Commenting on the Placement, Prairie's Chief Executive Officer, Mr Ben Stoikovich said "We have a very active year ahead, and securing a number of high quality European and Australian based investors is a very positive step for the Company, which underlines the Project's scale and potential to become one of Europe's next strategic sources of premium coal."
CPS Capital acted as Lead Manager to the Placement.

For further information contact:

Ben Stoikovich

Anastasios Arima

Chief Executive Officer

Executive Director

+44 207 478 3900

+61 8 9322 6322

Prairie Downs Metals Limited

Level 9, BGC Centre, 28 The Esplanade, Perth WA 6000

Ph: +61 8 9322 6322 Fax: +61 8 9322 6558

ABOUT THE LUBLIN COAL PROJECT

The Lublin Coal Project consists of four coal licences covering 182km2 located in South East Poland in the Lublin Coal Basin.
The Lublin Coal Basin is an established coal province with coal mining activities dating back to 1982 with established infrastructure, including power and rail. The Project is situated adjacent to the Bogdanka coal mine which is operated by Lubelski Węgiel BOGDANKA S.A.
A maiden Inferred Coal Resource of 1.6 billion tonnes of high quality thermal coal has been estimated at the Project.

Figure 1: LCP Location Map with Bogdanka Mine Competent Person Statements

This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. Information in this announcement that relates to Exploration Results and Mineral Resources is based on information compiled by Dr Richard Lowman (an employee of independent consultant Wardell Armstrong LLP which owns Wardell Armstrong Limited) who is a Fellow of the Geological Society of London. Dr Lowman has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person under the 2004 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Lowman consents to the inclusion of the data in the form and context in which it appears.

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