August 13, 2013 (Shareholders Foundation) - An investigation on behalf of current long-term stockholders of shares of Prospect Global Resources Inc (NASDAQ:PGRX) was announced concerning whether certain Prospect Global Resources Inc and directors possibly breached their fiduciary duties in connection with certain statements.

The investigation by a law firm concerns whether certain Prospect Global Resources officers and directors breached their fiduciary duties in connection with their conduct in seeking shareholders approval for an amendment to the Companys Director and Consultant Equity Plan.

In the Proxy Statement filed by Prospect Global Resources with the Securities and Exchange Commission the Board of Directors recommends that Prospect Global Resources shareholders vote to approve an amendment to the Companys Director and Consultant Equity Plan to increase the number of shares available for issuance under both this Plan and the Companys Employee Equity Incentive Plan from 8,200,000 and 13,500,000 respectively to a total of 96,700,000 shares.

According to the investigation the issuance of the additional shares could have a severe dilutive effect on the shares of Prospect Global Resources Inc.

Prospect Global Resources Inc reported that its Net Loss declined from $62.88 million for the 12 months period that ended on March 31, 012 to $51.87 million for the 12 months period that ended on March 31, 2013.

Shares of Prospect Global Resources Inc (NASDAQ:PGRX) declined from $5.00 in June 012 to as low as $0.072 per share on August 9, 2013.

On august 12, 2013, NASDAQ:PGRX shares closed at $0.728 per share.