PGRX to Extinguish Senior Unsecured Debt

  PGRX to Extinguish Senior Unsecured Debt

                Company continues to strengthen balance sheet

Business Wire

DENVER -- January 13, 2014

Prospect Global Resources Inc. (NASDAQ: PGRX) (“Prospect Global” or the
“Company”) is pleased to announce it has signed an agreement that enables it
to extinguish its approximately $7.3 million of senior unsecured debt for
approximately $1.3 million in common stock, which is approximately 17 cents on
the dollar. The extinguishment of this debt on these terms is contingent upon
Prospect Global successfully extinguishing its senior secured debt as
previously announced for $25 million no later than March 10, 2014.

The senior unsecured debt matures on July 1, 2015, subject to acceleration
upon certain events. Prospect has been obligated to make principal payments on
the debt with 10% of any proceeds raised before maturity.

“The extinguishment of our senior unsecured debt will continue to strengthen
our balance sheet and position the Company for the continued development of
our Holbrook Project,” said Damon Barber, Prospect Global’s President and CEO.
“As previously noted, moving to an all equity capital structure will give us
the flexibility to pursue a broader range of financial and strategic options
as we continue the development of North America’s next potash mine.”

On behalf of the Board of Directors,

Damon G. Barber
President and Chief Executive Officer

Regarding Forward-Looking Statements

With the exception of historical matters, the matters discussed in this press
release include forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from
projections or estimates contained herein. Such forward-looking statements
include statements regarding current and future classification of Prospect
Global’s potash resources, development of its potash resources and potash
mining facility and the Pre-Feasibility Study. Factors that could cause actual
results to differ materially from projections or estimates include, among
others, potash prices, economic and market conditions, and the additional
risks described in Prospect Global's filings with the SEC, including Prospect
Global's Annual Report on Form 10-K/A for the year ended March 31, 2013. Most
of these factors are beyond Prospect Global's ability to predict or control.
The forward-looking statements are made as of the date hereof and, except as
required under applicable securities legislation, Prospect Global does not
assume any obligation to update any forward-looking statements. Readers are
cautioned not to put undue reliance on forward-looking statements.

About Prospect Global Resources Inc.

Prospect Global Resources Inc. is a Denver-based company engaged in the
exploration and development of a potash mine located in the Holbrook Basin of
eastern Arizona. Prospect Global’s stock is traded on the NASDAQ Capital
Market under the ticker symbol PGRX.

Additional details about Prospect Global Resources Inc. can be viewed at the
Company’s website, www.prospectgri.com.

Contact:

The Rose Group
Elana Weiss, 310-280-3710
 
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