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Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ......

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Western Potash Corp. January 2018 Milestone Phase I Project – Corporate Presentation
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Page 1: Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ... • Extensive experience in potash solution mining, process and project management

Western Potash Corp.January 2018

Milestone Phase I Project – Corporate Presentation

Page 2: Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ... • Extensive experience in potash solution mining, process and project management

5

World-class Resources & Reserves

Milestone Project Advantages

Good Location & Infrastructure

1

2

3

Innovative Technology & Access to Market

4

Supportive Government & Community

Milestone Potash Project 01

WESTERN

POTASHTSX: WRX FSE: WR0

Management Team

Page 3: Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ... • Extensive experience in potash solution mining, process and project management

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

WESTERN

POTASH02

Page 4: Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ... • Extensive experience in potash solution mining, process and project management

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

03 WESTERN

POTASH

Page 5: Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ... • Extensive experience in potash solution mining, process and project management

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

WESTERN

POTASH

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

Page 6: Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ... • Extensive experience in potash solution mining, process and project management

TSX: WRX FSE: WR0 05WESTERN

POTASH

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

Page 7: Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ... • Extensive experience in potash solution mining, process and project management

TSX: WRX FSE: WR0 06WESTERN

POTASH

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

Page 8: Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ... • Extensive experience in potash solution mining, process and project management

TSX: WRX FSE: WR0 07WESTERN

POTASH

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

Page 9: Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ... • Extensive experience in potash solution mining, process and project management

TSX: WRX FSE: WR0 08WESTERN

POTASH

• 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.

Page 10: Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ... • Extensive experience in potash solution mining, process and project management

WESTERN

POTASH

Full Infrastructures Available

TSX: WRX FSE: WR0

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

09

Page 11: Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ... • Extensive experience in potash solution mining, process and project management

TSX: WRX FSE: WR0 10WESTERN

POTASH

Horizontal Drilling

Selective solution Mining

Innovative Solutions add up to the efficiency envisioned at Milestone

Proven & Innovative Mining Technology

Crystallization

Ponds

Page 12: Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ... • Extensive experience in potash solution mining, process and project management

TSX: WRX FSE: WR0 11WESTERN

POTASH

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)

Page 13: Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ... • Extensive experience in potash solution mining, process and project management

TSX: WRX FSE: WR0 12WESTERN

POTASH

Salt Back

✓Higher formation temperature yields at least 18% savings in energy consumption

✓Higher formation temperature increases solution mining efficiency

Formation Temperature Advantage

Page 14: Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ... • Extensive experience in potash solution mining, process and project management

TSX: WRX FSE: WR0 13WESTERN

POTASH

• 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

Page 15: Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ... • Extensive experience in potash solution mining, process and project management

TSX: WRX FSE: WR0 14WESTERN

POTASH

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

Page 16: Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ... • Extensive experience in potash solution mining, process and project management

TSX: WRX FSE: WR0 15WESTERN

POTASH

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

Page 17: Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ... • Extensive experience in potash solution mining, process and project management

TSX: WRX FSE: WR0 16WESTERN

POTASH

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

Page 18: Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ... • Extensive experience in potash solution mining, process and project management

Disclaimer

TSX: WRX FSE: WR0 17WESTERN

POTASH

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

Page 19: Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ... • Extensive experience in potash solution mining, process and project management

TSX: WRX FSE: WR0 18WESTERN

POTASH

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!

Page 20: Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ... • Extensive experience in potash solution mining, process and project management

• Project design is completed by experienced engineering firms

• CAPEX/OPEX engineering design Class 3 AACE standard, at ±10% estimate

19WESTERN

POTASHTSX: WRX FSE: WR0

• Environmental permits complete

• Canada’s only greenfield potash project ready for construction

Technologically Reliable

Economically Viable

Milestone Phase I Project

Page 21: Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ... • Extensive experience in potash solution mining, process and project management

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

20WESTERN

POTASH

2020

2021

2022

2027

10 Year Strategy to

World-Class Production

TSX: WRX FSE: WR0

Page 22: Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ... • Extensive experience in potash solution mining, process and project management

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

TSX: WRX FSE: WR0 21WESTERN

POTASH

Page 23: Western Potash Corp. · • Appointed to Western Potash Corp. Board of Directors in Sept. 2015 ... • Extensive experience in potash solution mining, process and project management

Thank You

610 – 2010 11th Avenue

Regina, SK . S4P 0J3

Canada

www.westernpotash.com


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