Western Potash Corp.January 2018
Milestone Phase I Project – Corporate Presentation
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World-class Resources & Reserves
Milestone Project Advantages
Good Location & Infrastructure
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Innovative Technology & Access to Market
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Supportive Government & Community
Milestone Potash Project 01
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Management Team
Western Potash Corp., a wholly owned subsidiary ofWestern Resources Corp., is dedicated to becoming apioneer in the potash selective solution mining sector.
The Company intends to develop its world-class depositin a more innovative, efficient and low-cost manner.
Corporate Vision
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Skilled Management Team
Patrick Power – Director• Co-Founder of Western Potash Corp.• Instrumental in assisting the Company in its Strategic and Market
Financings since inception• Over 25 years experience in mining finance, management and venture
capital
Zheng Mianping – Director • Over 50 years experience as a pioneer of the salt lake mineral industry• Has Degrees in Geology and Engineering and was awarded the Chinese
National Science Congress Award as well as the State Science and Technology Progress Award
Bill Xue – Chairman of the Board• Appointed to Western Potash Corp. Board of Directors in Sept. 2015• Over 20 years experience in project and investment management
(public and private sectors)• Law Degree and MBA
George Gao –Director and CEO• Currently COO of Western Resources Corp.• Previously President of the Beijing Mining Exchange & Head of Business
Development and Chief Representative for Toronto Stock Exchange • MBA and Bachelor of Economics
Tony Gao – Director of Finance• Canadian Chartered Professional Accountant, Chartered Accountant and
Certified Management Accountant• Bachelor of Law Degree• Master of Management and Professional Accounting Degree
Matthew Wood – Senior Vice President, Projects• Former President of Vale Potash Canada Limited, and Senior Project Leader
of Vale’s Kronau Project• Extensive experience in potash solution mining, process and project
management with two large multi-national companies• Ph.D in chemical engineering
Jerry Zhang – Director of Administration• Corporate Secretary• Extensive experience in administration management with government and
private enterprises• MA in International Communication & Ph.D in International Relations.
Zhimao Ma – Director and Vice Chairman• Senior Engineer and General Manager of Legal and Assets Management
Department of CBC• Deep potash and fertilizer commercial experience• Bachelor of Science Degree and Masters Degree
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Disclaimer
TSX: WRX FSE: WR0
May. 2007
Western Potash
Incorporated
May. 2008
Western Potash IPO
on TSX Venture
Jul. 2011
WPX graduated
to TSX
Dec. 2012
Completed Feasibility
Study on 2.8 million
tonne capacity
Milestone Project
Apr. 2013
Milestone Project
EA approved
Sep. 2015
Tairui Innovation Capital
Management Ltd. Holds
51% stake
Jun. 2013
China BlueChemical
(Canada) secured 19.9%
investment
Dec. 2016
Completed Class 3 AACE
Milestone Phase I Project
Final Engineering Report
Apr. 2017
WPC went private, WRX
became parent Company
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Historical Achievements
Jun. 2017
Amended EA
approval received
Aug. 2017
Signed Project
Agreement with RM
of Lajord
04
Nov. 2017
Renegotiated Water
Supply Agreement
with City of Regina
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Capex ~$ 100 million
Annual Production 146,000 tonnes
Lifespan 12 years
146,000 Tonne Phase I Project
Milestone Potash Project
Capex ~$3.3 billion
Annual Production 2.8 million tonnes
Lifespan 40+ years
2,800,000 Tonne Phase II & III Project
Currency $: Canadian dollars
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Western Potash Corp. acquired 17 quarter sections of surface land for Milestone Phase I Project site, and the Phase II and Phase III 2.8 million tonne full scale plant site
Mineral rights that WPC has acquired totals more than 148,000 acres of mineral leases (crown and freehold)
The mineral rights in dark green are owned by WPC
Rights in light green are partially owned by WPC
Large-scale resource with significant exploration upside to support 40+ year mine life
Land and Mineral Rights Acquired
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Average KCl
Grade (%)
In-Place Tonnage
(Mt)
In-Place KCl
Tonnage (Mt)
Recoverable KCl
(Mt)
Proven Reserves 26.99 171.21 46.22 35.842,6
Probable Reserves 26.80 509.67 136.57 101.442,6
Measured Resource 20.9 230.6 48.2 15.713,4,6
Indicated Resource 21.2 539.5 114.4 36.843,4,6
Inferred Resource 25.8 10,706 2,765 708.183,4,5,6
Notes:
1 Search radius of 800 m used for Proven and Measured; 1.6 km outside radius and 2.5 km inner radius (between drill holes) used for Probable and Indicated; and 8.0 km radius used for Inferred. K2O cut-off grade = 15%; Density = 2.08 t/m3, KCl = 1.58303 K2O
2 Accounts for known geologic anomalies, unknown geologic anomalies (5% for Proven, 9% for Probable), and recoverable tonnages of KCl contained in caverns within the search radius. Accounts for 87.3% cavern, and 93.5% plant KCl recoveries
3 Accounts for known geologic anomalies, unknown geologic anomalies (5% for Measured, 9% for Indicated, 25% for Inferred), extraction ratio (34.6%) and appropriate buffer zones around towns and plant site4 Resources exclude amounts that have been identified as Reserves. Resources that are not Reserves have no demonstrated economic viability 5 Inferred Resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of Inferred Resources will ever be
upgraded to a higher category6 The Proven and Probable reserves that are reported are based on the January 2013 NI-43-101 report and are for wells M003 through M009. The recoverable KCl Measured and Indicated Resources are based on the
January 2013 NI-43-101 report and are for Wells M001, M002 and M002A. The Recoverable KCl Inferred Resources are based on the January 2013 NI-43-101 report and are within Crown and Leased Freehold Areas.
Large-scale resource with significant exploration upside to support 40+ year mine life
Reserves & Resources Overview1
Large-Scale, High-Grade Resource
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• Strategically located about 35 km southeast of Regina, Saskatchewan, Canada
• Mineral Lease secured, Engineering for Phase I Project completed, Environmental Assessment approved
Strategically Located
• Adjacent to mining rights of other big potash companies, and in the same region as other operating solution mines
Saskatchewan owns about 46% of the world’s potash reserves, and is the largest potash producer in the world.
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Full Infrastructures Available
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RAILNATURAL GAS PORTROAD POWER WATER
All utilities required for the Milestone Project are nearby, water supply secured for the full scale project by agreement with Regina Wastewater Treatment Plant
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Horizontal Drilling
Selective solution Mining
Innovative Solutions add up to the efficiency envisioned at Milestone
Proven & Innovative Mining Technology
Crystallization
Ponds
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Milestone Potash Project- General Geology Overview
Depth to potash members:
~800m near Saskatoon
1,600m-1,700m near Regina
3,000m in North Dakota
Salt Back
Thickness (m) Formation Grade (KCl %)
12.20m
4.80m
5.3m
26.7%
29.9%
—
39.5%
Patience Lake Member
Belle Plaine Member
Esterhazy Member
Lower Salt Interbed and White Bear Member
Quality Resource: High Grade KCl, Low Carnallite & Insolubles
Salt Back
Phase I Project Mining Target
-Potash Geology M-008 (WPX Western Riceton 16-05-14-17 W2M)
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Salt Back
✓Higher formation temperature yields at least 18% savings in energy consumption
✓Higher formation temperature increases solution mining efficiency
Formation Temperature Advantage
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• Eti Soda Ankara, Turkey• Intrepid Potash Moab, Utah
• Selective Solution Mining has been proven in other operations around the world
• Mosaic Belle Plaine Potash Mine• K+S Legacy Projects, Canada
• Crystallization Ponds / Product Drying and Finishing in operating mines in Saskatchewan
Using Proven Technology
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Using Innovative Technology
The success of the innovative technology in the Milestone Phase I Project could revolutionize the way potash is extracted in Canada
Lower Environmental Impact compared to traditional methods
• No Tailings on surface, salt remained underground – less subsidence
• Half the water consumption – Phase I water source is brackish ground water not suitable for human consumption
• Reduced energy consumption due to crystallization ponds –less greenhouse gasses
• Safer operation – no underground workers
Technical Advantages from Horizontal Drilling Method• Highest extraction and access to all 3 potash
members• Less drill holes vs. Conventional solution mining• Cavern stability strengthened• Highly increased safety vs. conventional mining• No oil use for cavern control
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Milestone Phase I Project- Solution Mining Caverns
• Comprehensive laboratory testing
• Detailed transient model of solution mining and subsidence
• Production schedule integrated with processing
• Cavern mine plan for life of the Phase I Project
• Detailed engineering completed for casing and well drilling
• Innovative technology enables targeted extraction of potash
• Surface land above caverns undisturbed, farming continues
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Milestone Phase I Project- Technical Expertise
• 38 years of service to the mining industry
• 28 years experience with Solution Mining
• Clients include: Rio Tinto (PRC in Argentina), Intrepid Potash, Vale, Potash One (K+S), Western Potash (Milestone), Encanto, Yara (in Ethiopia), Yancoal, EtiSoda, Kazan ( in Turkey), MagIndustries, others
• Salt, conventional underground mining and solution mining
• Previously Amec Foster Wheeler
• Global Engineering & Consulting Company
• Saskatoon Office Potash Studies:- Western Potash Corp: Milestone- Yancoal Canada Resources: Southey - Mosaic Belle Plaine: Stage 2 Expansion
• Saskatoon Office Potash Construction Projects:- K+S Potash Canada: Legacy- PotashCorp: Rocanville, Cory, Allan,
Lanigan, Picadilly
wood. & Agapito are both world-class engineering firms
Disclaimer
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Strong ties with the Community
• Strong ties with local communities• Ongoing community sponsorship• Focus on local business and local
employment• Solid relationships with local,
provincial governments and First Nations
• Community newsletter
Community and Government Engagement
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Milestone Phase I Project- Community Investment
• Direct, Indirect and Induced benefits of the Phase I Project over $300M into the local and provincial economy
• Partner with the community in areas of water quality, energy efficiency, water reduction, innovation and infrastructure projects
• Support initiatives that contribute to long-term sustainability of the local community
• Phase II & III estimated to contribute over $700M annually to GDP including over $2.4M annually (indexed with CPI minus food) directly to the City of Regina for recycled water usage
Direct economic impacts result from expenditures that are directly associated with constructing and operating the mine,such as labour, materials and equipmentIndirect impacts occur when the mine’s suppliers purchase goods and services and employ workers to fulfill their contractswith the mineInduces impacts occur when labour from the mine purchase goods and services at a household level
The Phase I Project will inject (CAD)$300 million into the economy!
• Project design is completed by experienced engineering firms
• CAPEX/OPEX engineering design Class 3 AACE standard, at ±10% estimate
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• Environmental permits complete
• Canada’s only greenfield potash project ready for construction
Technologically Reliable
Economically Viable
Milestone Phase I Project
2017
2018
2020
Further mitigate the uncertainties of Milestone Phase I Project & lock in project financing
Complete the Phase I Project’s financing, construction and achieve production
Prove Phase I operation; complete engineering for Phase II, paving the pathway to the financing for Phase II 1.4 million tonnes per year production
Phase II, completes financing, construction and into production; getting ready for kick-off of the Phase III expansion of a further 1.4 million tonnes per year
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2020
2021
2022
2027
10 Year Strategy to
World-Class Production
TSX: WRX FSE: WR0
Forward-Looking Statements and Cautionary NotesExcept for statements of historical fact, this presentation contains statements that constitute “forward-looking statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934 and “forward-looking information” within the meaning of applicable Canadian securities legislation (collectively, “forward-looking statements”). Forward-looking statements often, but not always, are identified by the use of forward-looking terminology such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “targeting” and “intend” and statements that an event or result “may”, “will”, “should”, “could”, or “might” occur or be achieved and other similar expressions. Forward-looking statements include, but are not limited to, statements concerning plans of Western Potash Corp. (the “Company”) at the Milestone Project, the estimated potash production and the timing thereto and capital and operating costs.
The forward-looking statements that are contained in this presentation are based on the opinions and estimates of management of the Company as of the date of this presentation and they are subject to known and unknown risks, uncertainties, and otherfactors that may cause the actual results of the Company to be materially different from those expressed or implied by such forward-looking statements. Such factors include, among others: risks relating to fluctuations in the price of potash; theinherently hazardous nature of mining-related activities; uncertainties concerning resource estimates; results of exploration; availability of capital and financing on acceptable terms; inability to obtain required regulatory approvals; unanticipated difficultiesor costs in any reclamation which may be necessary; market conditions; and general business, economic, competitive, political and social conditions. The material assumptions upon which such forward-looking statements are based include, among others:the ability of the Company to access capital; the ability of the Company to conclude a transaction(s) with third parties to fund the development of our projects and mineral properties (including the Milestone Project); that the demand for potash willdevelop as anticipated; that the price of potash will remain at levels that will render the Company’s potash projects economic; that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies,labour disturbances, interruption in transportation or utilities, or adverse weather conditions; that the Company will continue to have the ability to attract and retain skilled staff; and that there are no materialunanticipated variations in the cost of energy or supplies, or in any of the capital and operating cost estimates as may be disclosed in the Company’s public record, as filed on SEDAR
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements, there may be other factors which cause actual resultsnot to be as anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this presentation and the Company does not undertake to update any forward-looking statements contained in this presentation,except in accordance with applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly,readers should not place undue reliance on forward-looking statements.
The Company has prepared and filed an NI 43-101 Technical Report titled “NI 43-101 Technical Report Summarizing the Scoping Study for a Pilot Scale Selective Solution Mining Operation on the Milestone Project (Subsurface Mineral Lease KLSA 008),Saskatchewan” dated August 4, 2015 and effective July 2, 2015 (the “Pilot Study”). The report was prepared by Agapito Associates, Inc. and Novopro Projects Inc. The economic analysis used in the report was based on measured and indicated resources.Mineral resources that are not mineral reserves do not have demonstrated economic viability.
The Pilot Study is a preliminary economic assessment, is preliminary in nature and includes inferred mineral resources, which are considered too speculative geologically to have the economic considerations applied to them that would enable them to becategorized as mineral reserves. There is no certainty that inferred resources will be converted to the measured and indicated categories, that the measured and indicated resources will be converted to the proven and probable mineral reserve categoriesand there is no certainty that the Pilot Study will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability; the estimate of mineral resources in the Pilot Study may be materially affected by environmental,permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
The projected mining method, potential production profile and plan and mine plan referred to in the Pilot Study and this presentation are conceptual in nature and additional technical studies will be required in order to fully assess their viability. There isno certainty that a potential mine will be realized or that a production decision will be made. A mine production decision that is made without a feasibility study carries additional potential risks that include, but are not limited to, the inclusion of inferredmineral resources, which are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mine design and mining schedules, metallurgical flow sheets andprocess plant designs will require additional detailed work and economic analysis and internal studies to ensure satisfactory operational conditions and decisions regarding future targeted production.
To the extent that the use of the terms “ore,” “mineable” “production,” and “mining” occurs on this presentation or in the Pilot Study, its use is intended solely to differentiate between mineralized material (including dilution) above an economic cut-offgrade and waste rock; there is no inference of mineral reserves.
Cautionary Note to U.S. Readers and NI 43-101
This presentation contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. The Company advises US investors that the mining guidelines of the US Securitiesand Exchange Commission (the “SEC”) set forth in the SEC’s Industry Guide 7 strictly prohibit information of this type in documents filed with the SEC. The Company is exempt from the requirements of Industry Guide 7 pursuant to the Canada-US Multi-Jurisdictional Disclosure System. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits on adjacent or similar properties are not indicative of mineral deposits on theCompany’s properties.
Accordingly, information contained in this presentation containing descriptions of the Company’s mineral deposits may not be comparable to similar information made public by United States companies subject to the reporting and disclosurerequirements under the United States federal securities laws and the rules and regulations thereunder.
Disclaimer
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Thank You
610 – 2010 11th Avenue
Regina, SK . S4P 0J3
Canada
www.westernpotash.com