Prosperity Minerals announced it had successfully completed the acquisition of a 35% stake in a joint venture firm engaged in the exploration and production of iron ore. This announcement follows its December 9th 2010 release regarding its interest and offer for the stake.

Out of the aggregate consideration of $20 million or about £12.8 million, a sum of $4 million or around £2.56 million shall be paid into an escrow account to be agreed between Lead Hero and Li and shall only be released when due diligence investigation on the UGL Group and the Brazilian Mining Rights is completed.

Prosperity Minerals expects that the transaction presents an investment opportunity and could provide a valuable source of iron ore for the company's iron ore trading operations at a competitive price.

Mr Li would transfer to UGL his entire interests in Globest and the Brazilian Mining Rights.. Under the Supplemental Agreement, Mr. Li has given an undertaking to procure that the consideration for purchase by UGL of the Additional Mining Rights and its related expenses will not be more than US$20 million.

Prosperity noted its belief that the Proposed Transaction presents a good investment opportunity and could provide a valuable source of iron ore for the Company's iron ore trading operations at a competitive price. Through this investment, the Company expects to increase its supply of iron ore by 1 million tonnes per annum from mid-2011 from the Mining Concession that is already in production.

The firm as well expects that there is potential for the estimated reserve of iron ore, in relation to this producing asset, to be increased over and above the 2.3 million tonnes currently estimated - once further drilling is undertaken. In addition, development of the other mining rights may provide a valuable source of iron ore in future years.

Prosperity is an iron ore trading business serving the PRC; a specialized real estate owner and developer in the same market; and an investor in two cement plants, also in the PRC. Prosperity's iron ore trading 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.

3 Jan 2011.