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www.fertoz.com FertAg 0-8-0 Wheat field, Alberta
www.fertoz.com
FertAg 0-8-0 Wheat field, Alberta
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The technical information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Jo Shearer, a Competent Person, who is a member of the Association of Professional Engineers and Geoscientists of British Columbia, a ‘Recognised Professional Organisation’ (RPO) included in a list that is posted on the ASX website from time to time. Mr Shearer is the Chief Operating Officer Canada for Fertoz Limited. Mr Shearer has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Shearer consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. This presentation contains certain statements which constitute “forward-looking statements”. Forward –looking statements are based on the estimates and opinions of Fertoz’s management on the date the statements are made and Fertoz does not undertake any obligation to update forward-looking statements should conditions or management’s estimates or opinions change, whether as a result of new information, future events or other factors, except as required by law. All statements other than statements of historical fact herein are forward-looking statements and include, but are not limited to: (i) estimates and projections of future phosphate prices; (ii) estimates and projections of future phosphate production and demand; (iii) estimates and projections of reserves and resources; (iv) estimates and opinions regarding geological and mineralization interpretation; and (v) estimates of exploration investment and scope of exploration programs. When used in this presentation, the words “plans”, “expects”, “anticipates”, “budgets”, “forecasts”, “strategy”, “goals”, “objectives”, “could”, “should”, “may”, “potential” and other similar expressions relating to matters that are not historical facts are forward-looking statements. All forward-looking statements herein are based on Fertoz’s or its advisors’ current beliefs, as well as various assumptions and information currently available to them. These assumptions include but are not limited to: (i) continued growth in world phosphate; (ii) continued increase in personal incomes; (iii) continued increase in grain-intensive meat diets; (iv) continued decline in the agricultural land base; (v) the successful negotiation of native title access agreements for Fertoz’s exploration licences. There can be no assurance that such statements will prove accurate, and actual results and future events could differ materially from those anticipated in such statements, in particular, the estimates do not include input cost increases or phosphate price variations that could occur in the future. The forward-looking statements herein are subject to risks, uncertainties and other factors. The risk factors may be generally stated as the risk that the assumptions and estimates expressed herein do not occur, and include, but are not limited to: (i) phosphate and other commodity price volatility; (ii) political and operational risks; (iii) government regulation of mining activities; (iv) environmental risks; and (v) title disputes and claims. We caution potential investors not to place undue reliance on the forward-looking statements herein, as a number of important assumptions could cause the actual outcomes to differ materially from the beliefs, plans, expectations and estimates expressed herein.
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Fertoz Limited (ASX :FTZ): an Australian phosphate fertilizer company building an international cash generating business
“Two out of every five people on Earth today owe their lives to the higher crop outputs that fertilizer has made possible.” Bill Gates
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Shares and Options
Total shares on Issue 45,009,595
Escrowed Shares 2,855,367
Total options 10,615,384
Cash and Value
Cash at 31 October 2014 $1,150,000
Market capitalisation (40 cents) $18,003,838
FTZ Price History Chart
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Volume - Millions
1Top 20 shareholders hold 57.1% as at12/11/2014 2 Held in the name of JP Morgan Nominees Australia Ltd
Major Shareholders1
J Chisholm & related parties 11.6%
Terra Capital Pty Ltd2 11.4%
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Jo Shearer, C.O.O., British Columbia, Canada Jo Shearer has 35 years' experience in geology and exploration. He is a fellow of Geological Association of Canada, Geological Society of London, Canadian Institute of Mining and Metallurgy, Society of Economic Geologists. Based in Vancouver Jo will manage Canadian exploration.
James Chisholm, Non-Executive Chairman James Chisholm is an engineer who has worked in the resources sector for thirty years. He is the co-founder of TheChairmen1, the company that started Guildford Coal (ASX: GUF), co-founder of Ebony Coal, and Chairman of Atrum Coal NL (ASX: ATU).
Adrian Paul Byass, Non-Executive Director Adrian Byass (B.Sc Hon (Geol), B.Econ, FSEG, MAIG) has 18 years’ experience in the mining and minerals industry. He is a Director of Ironbark Zinc Limited (ASX: IBG), Corazon Mining Limited (ASX: CZN) and Plymouth Minerals Limited (ASX: PLH).
Dr. Les Szonyi, Managing Director Les Szonyi (PhD, B.E. (Chem.) has 30 years’ experience in the chemicals processing industry. He is a graduate of the Australian Institute of Company Directors (AICD) and is a member of Institution of Chemical Engineers.
Julien McInally, Chief Financial Officer Julien McInally (CPA, MBA) is a CFO/Company Secretary with 15 years of resource industry experience with public listed companies on the TSXV, AIM and ASX stock exchanges.
Stephen Keith / Alex Penha Non-Executive Director Stephen Keith P.Eng, (B.Sc (Geol), MBA is based in Toronto and has 18 years’ experience in mining, finance and investment banking. He is fluent in Spanish. He is a director of Aura Minerals (TSX:ORA).
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• Explore small high grade phosphate deposits that can be commercialised quickly with minimal capital investment in Canada and the USA
• Mine and process ground rock phosphate for sale in organic and conventional agriculture in North America
• Sell through a JV (Fertoz Agriculture) an organic fused calcium magnesium phosphate (FertAg) as a cost effective substitute for superphosphate in Australia and NZ.
Processed rock phosphate rock phosphate delivery
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84% of Canadian farmland is in Western Canada2 – SK (38%), AB (31%), MB (11%), BC (4%)
2 The Canadian Encyclopedia – Agriculture and Food T&M Veeman 27/1/14
Eggers Solutions Rock Phosphate Processor
Natures Way Farm Ltd Marketing & Distrbn Agent
Sunalta Fertilizers Ltd Marketing & Distrbn Agent
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Inferred Resource 1.5m tonnes @ 21.5% P2O5 to depth 30m along 12.5km, 1 m wide
Small Mine Application for 75,000 tpa Submitted November 2014
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Trenching, Drilling, Bulk Sample Collection completed November 2014
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Dry Ridge drill programme in 2nd half 2015
WHY INVEST IN FERTOZ?
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• Increasing world population – 30% increase by 2050 (9 billion people)
• Decreasing arable land – 25% reduction by 2050
• Developing countries’ diets changing towards more protein – requires more fertilizer per tonne of food
Ref. WHO 03.20
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• Declining phosphate rock production in USA –2.5m tpa imported since 2003
• Canada started importing 1m tpa since late 2013 from Morocco
Sources: USGS, IFA, Mosaic Co., Phoscan
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• USA / Canada organic food market is US$34.5 billion (48% of global market)
• USA organic market growth was 10% in 2012
• The ability of a rock phosphate source to release P for plant uptake is determined largely by its chemical reactivity or solubility.
1 FIBL & IFOAM The World of Organic Agriculture 2014 2 Wapiti Phosphate Rock Assessment of Agronomic Potential - Ruth McDougall 31/03/14
Phosphate Availability (%)
0%
2%
4%
6%
8%
10%
12%
Minimum Good Wapiti
Suitability of Phosphate rock for Organic
Agriculture
10% available P2O5 achieved with Wapiti rock using standard lab tests on rock, ground to -100 mesh (0.15mm). Low heavy metals and high calcium content make it very suitable for organic agriculture.1
10% available P2O5 achieved with Wapiti rock using standard lab tests on rock, ground to -100 mesh (0.15mm). Low heavy metals and high calcium content make it very suitable for organic agriculture.2
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Promise Performance
1 Minimise exploration expenditure in Australia
2 Acquire Option over Dry Ridge Project, Idaho
3 Develop Wapiti
4 Approval for Wapiti bulk sample of 10,000 tonnes for product trials.
5 Multiple exploration sites in B.C. Canada
6 Confirm Wapiti phosphate rock suitable for organic agriculture.
7 Exploration target for Wapiti
8 Minimise capital expenditure
9 Develop Marketing Strategy
10 Quick cash flow
FERTOZ AGRICULTURE PTY LTD DEVELOPING AN AUSTRALIAN PHOSPHATE BUSNESS
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Fertoz Agriculture Pty Ltd (“FertAg”) is: 1. A joint venture between Fertoz Limited (ASX : FTZ, 51%) and Vast
Resources Pty Ltd (49%) formed to import from Asia FertAg 0-8-0 and other FertAg N-P-K products for sale in Australia and New Zealand.
2. FertAg has a team of product specialists, agronomists and an agricultural scientist to provide product development and technical support.
3. FertAg is seeking partnerships with national fertilizer distributors to sell the product in Australia to broadacre, pasture and horticulture markets.
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• FertAg has exclusive rights to
import up to 50,000 tpa of FertAg 0-8-0
• FertAg 0-8-0 is a specialty
phosphate product (formerly known as CaMP) and is a cost effective replacement for superphosphate and lime
• FertAg 0-8-0 is environmentally
friendly and suitable for organic agriculture
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• Not soluble in water – does not
leach away in the rain
• Easy to handle wet or dry – does not form lumps
• Contains calcium and
magnesium to correct soil acidity – no need to lime soil
• Trace minerals and silica
enhance phosphate availability and soil fertility – less product is required and it is more effective than superphosphate
20 1 80% loss due to leaching and binding to soil particles
Comparison of FertAg 0-8-0 with Superphosphate
Situation Superphosphate FertAg 0-8-0
Lime requirement Required Not required
Trace elements and silica Not included Included
Soil moisture retention No Yes
Gypsum requirement Required Not required
Storage Must be stored dry Unaffected by moisture
Application restrictions Only dry conditions All weather
Notional application rate kg/ha 200 150
Plant available phosphate <20%1 >95%
Aluminium (Al) / iron (Fe) acid soils Rapidly made unavailable Available: Removes Fe and Al issue
Eco-friendly No Yes
Soluble in water Yes No
Losses due to leaching / lock up Yes No
Soil reaction Neutral Improved moisture availability
Effect on soil biology Neutral Increases
Heavy metals Contributes Silicates remove excess from soil
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• Fertoz on track to become a self-funded explorer, allowing for the development of the Dry Ridge project in Idaho
• Fertoz has started cash generating fertilizer businesses in North America and Australia
• Fertoz Management continue to deliver on promises
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ABN 86 145 951 622 40 Balgowlah St Wakerley, Qld, 4154 www.fertoz.com
James Chisholm, Chairman, Sydney T: +61 419 256 690 E: [email protected]
Les Szonyi, Managing Director, Brisbane T: +61 418 158 185 E: [email protected]
Adrian Byass, Non-Exec. Director, Perth T: +61 418 158 185 E: [email protected]
Stephen Keith, Non-Exec. Director, Toronto T: +1 647 299 0046 E: [email protected]
FERTOZ – AUSTRALIA’S INTERNATIONAL PHOSPHATE FERTILIZER COMPANY
APPENDIX 2014 ACHIEVEMENTS – THE DETAIL
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Plan Outcome
1 Minimise exploration expenditure in Australia
Sold Katherine & Barkly tenements for $50,000. Limited Australian expenditure to $12,000 per year.
2 Acquire Option over Dry Ridge Project, Idaho
Acquired Dec.13. Payments linked to exploration milestones. Max. cost is US$800,000 to earn 100% for 12m tonnes P2O5 at 24%
3 Develop Wapiti $850k exploration programme in Sep.13, road construction Jul.14, bulk sample collection Aug.14; small mine application for 75,000 tpa in Nov.14.
4 Approval for Wapiti bulk sample of 10,000 tonnes for product trials.
Approval for 17,500 tonnes bulk sample at Wapiti and 10,000 tonnes at Fernie. 1,200 tonnes collected at Wapiti and 1,500 tonnes at Fernie.
5 Multiple exploration sites in B.C. Canada
Acquired Marten; amalgamated projects into Wapiti and Fernie. Drilling, trenching and bulk sample completed Nov 14 at Fernie.
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Plan Outcome
6 Confirm Wapiti phosphate rock suitable for organic agriculture.
10% P2O5 availability and low heavy metals content make it very good for organic agriculture. Two organic farmers signed up to do farm trials.
7 Exploration target for Wapiti
JORC Inferred Resource of 1.5mt, 21.6% P2O5 over 12.5km to depth of 30m. Exploration target of 2.9mt to 3.3mt, 20.8% to 22% P2O5 over 27km to depth of 30m. Extended Wapiti by 44%.
8 Minimise Capital Expenditure
Roadworks < $500k. Eggers Solutions appointed to process Wapiti rock
9 Develop Marketing Strategy
Natures Way Farm Ltd and Sunalta Fertilizers Ltd appointed as Marketing agents.
10 Quick Cash Flow First bulk sale in Oct.14 in Canada. Fertoz Agriculture Pty Ltd (“FertAg”), a JV between Fertoz Limited (51%) and Vast Resources Pty Ltd (49%) to import fused calcium magnesium phosphate from Asia and market in Australia and NZ; FertAg 0-8-0 can be used by organic and non-organic farmers. Profit expected after 12 months.
