Prospect Global Resources Inc. (Prospect) is an exploration stage company engaged in the exploration and mining of potash in the undeveloped Holbrook Basin of eastern Arizona. Prospect believes that potash, along with other global commodities, exhibits long term global demand strength and limited supply. Instead of relying on the traditional supply push of manufacturing, whereby manufacturers push large quantities of standardized commodities into the market, Prospect plans to capitalize upon the growing demand of these commodities in both developed and emerging markets.

Prospect owns a 50% working interest in American West Potash LLC (AWP). AWP owns potash exploration permits on 42 Arizona state sections and eight private sections which covers approximately 31,000 acres. The state leases contain five year terms, of which one lease expires in 2012, nine leases expire in 2013, 15 leases expire in 2014, and 17 leases expire in 2015. The leases for the private sections expire in 2020. As long as AWP performs exploration or development activity, it may extend the leases. As the operator of AWP, Prospect control all phases of the project which include but are not limited to capital spending, geological analysis, permitting, engineering, construction, mining and production.