RNS Release - Trading Update

9 January 2012

Prosperity Minerals Holdings Limited

 ("Prosperity" or "the Company")

Update on presales at Oriental Landmark, Guangzhou City

Prosperity Minerals Holdings Limited ("PMHL.L") is an iron ore operator serving the People's Republic of China ("PRC") and a real estate owner and developer in the same market. It is also an investor in two PRC cement manufacturers.

Following an announcement on 10 November 2011, presales of the first phase of residential units at Oriental Landmark, Guangzhou City, commenced on 25 December 2011. The units are being offered at an average price of approximately RMB 32,000 per square metre which is in line with current market prices for similar new developments in the area. Of the 184 units put up for sale, 79 units were sold in the first two weeks up to 8 January 2012. This is encouraging with both prices and results in line with the Company's expectations.

The Company continues to monitor prevailing market conditions to determine presale schedules and prices for units in the remaining three residential blocks and expects presales of all four residential blocks to have commenced by the end of 2012. 

Prosperity acquired the Oriental Landmark property development project, previously referred to as Dongfang Wende Plaza, in August 2010. Please refer to the Company's announcements on 1 June 2010, 30 July 2010 and 16 August 2010 for further information on the acquisition. Since acquisition, the Company has incurred some additional construction costs, administrative expenses and PRC taxes. Nonetheless, based on current presale results and market conditions, management expects a good return on the sale of the residential units in this development.

Commenting, Mr. David Wong, Chairman and CEO, said:

"Current presale results reflect the strong demand for high end residential property in downtown Guangzhou City. I believe presales from all the residential units, once completed, will provide the Company with a good return and that rental income from the commercial units will provide long term recurring income."    

Further enquiries:

Prosperity Minerals Holdings Limited                                                  +852 3187 2618      

Patrick Li

Neelke Kruger-Logan

www.pmhl.co.uk

Citigate Dewe Rogerson                                         &# 160;                            +44 (0) 20 7638 9571      

Martin Jackson

Kate Lehane

Daniel Stewart & Company plc                                          ;                  +44 (0) 20 7776 6550      

Nominated Advisor and Broker

Corporate Finance: Paul Shackleton, Noelle Greenaway

Corporate Broking: Martin Lampshire

Notes to Editors:

Prosperity (AIM: PMHL) is:

 - an iron ore operator serving the PRC;

 - a specialised real estate owner and developer in the same market; and

 - an investor in two cement plants, also in the PRC.

Prosperity's iron ore business has been operating since 1992 and sources iron ore, for shipment and use in the PRC, from major international iron ore producers in South Africa, Brazil and Australia, as well as from South East Asia, Thailand and Malaysia in particular. The majority of the Company's iron ore is sold to large steel manufacturers in the PRC. In the fiscal years ended 31 March 2010 and 2011, Prosperity shipped 7.9 million tonnes and 6.3 million tonnes of iron ore respectively. In December 2010, Prosperity acquired a 35% effective interest in a Brazilian mining operation which owns approximately 602 square kilometres of exploration rights and 3.01 square kilometres of mining concession in the State of Ceara. The first shipment of 51,000 tonnes was made in March 2011.

Prosperity has operated a real estate investment and development division since February 2010 which is focused on creating a portfolio of PRC property and development assets with good upside potential and manageable risk. The Company has entered into a number of agreements with its partners to develop recreational, commercial and residential projects in Guangzhou City and Changzhou City in the southern PRC and Hangzhou City in the east. Prosperity also acquired interests in an existing commercial building in Guangzhou which is the largest city in the southern PRC and the third largest in the Country (after Beijing and Shanghai). It has a population in excess of 12 million people and is located in the Pearl River Delta, the foremost economic zone in the southern PRC.

In April 2010, Prosperity disposed of its cement business in the PRC but retained its 33.06% interest in Anhui Chaodong Cement Company Limited (ACC). ACC is located in Anhui Province in the eastern PRC. The designed sellable output capacity of ACC is 5.1 million tonnes of cement and clinker per annum. On 1 September 2010, Prosperity acquired a 25% equity interest in Liaoning Changqing in Liaoning Province, in the northern PRC. Liaoning Changqing completed construction of a new 2 million tonnes per annum cement and clinker production line in April 2010 and normal production commenced on 2 July 2010. Following the completion of a share issuance in August 2011, Prosperity's interest in Liaoning Changqing was diluted to 16.11%.

The PRC is the World's second largest economy (behind the US) and the biggest buyer of iron ore; it is also the largest producer and consumer of cement.