Investor Presentation FEBRUARY 2017 FORWARD LOOKING STATEMENTS - - PowerPoint PPT Presentation

Investor Presentation

FEBRUARY 2017

Certain statements in this presentation may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Potash Ridge Corporation (the "Corporation"), or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this presentation, such statements use such words as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate" and other similar terminology. These statements reflect the Corporation's current expectations regarding future events and operating performance and speak only as of the date of this presentation. Forward-looking statements involve significant risks and uncertainties, which include, but are not limited to the factors discussed under “A Cautionary Note Regarding Forward Looking Statements” and "Risk Factors" in the Corporation’s Annual Information Form dated March 28, 2016, and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. Although the forward-looking statements contained in this presentation are based upon what management of the Corporation believes are reasonable assumptions, the Corporation cannot assure investors that actual results will be consistent with these forward-looking statements. These forward- looking statements are made as of the date of this presentation and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Corporation assumes no obligation to update or revise them to reflect new events or circumstances.

FORWARD LOOKING STATEMENTS

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ABOUT US

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Potash Ridge is a near term producer of potassium sulphate (SOP) fertilizer using two different processes; one in Utah and one in Quebec.

OUR VISION IS TO BECOME THE SOP MARKET LEADER IN NORTH AMERICA

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• Become lowest cost

North American SOP producer

• Become first producer

using Mannheim process in North America

• Acquired in 2015
• 40,000 tpy of SOP
• CDN$50 million capex
• 30% after tax IRR
• Proven process
• Production targeted in H1 2018
• Scalable
• Potential for $14m in average

annual cash flows

• NPV (after tax 10%) $82 million
• Original SOP project
• 230,000 tpy of SOP
• US $458 million capex
• 20.1% after tax IRR
• Lowest cost producer in North

America (US$ 172/ton)

• Major permits and water rights

secured; infrastructure nearby

• Potential for US$100M in

average annual cash flow

• NPV (after tax 10%) $482 million

Strategy Valleyfield

(Quebec)

Blawn Mountain

(Utah)

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Potassium Sulphate (SOP)

• Low-chloride fertilizer required for

fruits, vegetables, nuts

• Domestic selling price 3x potash

(“MOP”)

• Global consumption ~7 million

tonnes per year (“tpy”)

• Demand potential is 10 million tpy
• 400k t current production in North

America versus projected demand

• f 1M t demand
• One other North American

producer

• Qualifies as “organic”

Potassium Sulphate (SOP)

Low chloride, high sulphur – providing benefits to crops not available with MOP Global potential market demand of 10 million tpy Capacity growth limited in current North American process US$630/tonne in North America Improves yield, taste, appearance and shelf life Significant benefits for fruits, vegetables, nuts, tobacco

POTASSIUM SULPHATE: Two Macronutrients in One

ALUNITE CRUSHING & GRINDING CALCINATION WATER LEACH

In fertilizers, there are 6 macro nutrients required for a plant’s life cycle. No substitutes

SO2 ACID PLANT SUPHURIC ACID

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Nitrogen Phosphate Potassium Magnesium Calcium Sulphur

Potassium Chloride (MOP)

Contains chloride – detrimental to plants and soil Global market 55 million tpy Market is in over supply, with idle capacity and multiple projects in pipeline US$150/tonne in North America Chloride can leach into groundwater or build-up in arid soil conditions, impacting yields and crop quality Primarily for corn and grain crops that can withstand chloride 5

POTASSIUM APPLICATION IMPROVES YIELD AND QUALITY – IMPACT ON TOMATOES

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Uni Univer ersit ity of

• f Florida: Com
• mparison
• n of
• f Pot

Potassiu ium Sou

• urces

es and Rates es For

• r Tom
• mato Pr

Prod

• ductio

ion in Florid ida

100lb/acre 200lb/acre 300lb/acre

POTASSIUM SULPHATE ELIMINATES CHLORIDE DAMAGE

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Clem emson Uni Univer ersity, The e Australia ian and New Zealand Fie ield ld Guid ide e to

• Diseases

es, Pe Pests and Disorders of

• f Grapes

es

Peach and grape leaves suffering salt (chloride) damage

SOP: A top performing commodity in last 5 years

SOP: SUPERIOR PRODUCT WITH ATTRACTIVE MARKET DYNAMICS

1 Compass Minerals Q3 2016 Report, 2 Potash Corp Q3 2016 Report

SERVING AN UNDERSERVED MARKET

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MOP2 SOP1 $US/ton

• 200.0

400.0 600.0 800.0 1,000.0 1,200.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

SOP price influenced by high-value crop economics not MOP price

SOURCES OF POTASSIUM SULPHATE SOP

CHEMICAL REACTION: Mannheim Process

50% of all SOP produced uses Mannheim Process Used in Asia, Middle East and Europe Soluble and granular form

SOP

EVAPORATION: Salt Lake

Finite resource Found in USA, Chile, China, Europe Granular form

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SOP

MINERAL PROCESSING: Alunite

Proven process Soluble and granular form

POTASH RIDGE’S TWO SOP PROJECTS

BLAWN MOUNTAIN (Utah) VALLEYFIELD FERTILIZER CORP. (Quebec)

SOP CONSUMPTION MATCHES LOCAL AVAILABLE PRODUCTION

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Green Markets, Northern Shoreline, company reports

500 1000 1500 2000 2500 3000 3500 4000 4500 5000 North A. South A. Europe Asia Middle East

North America is Underserved

Current Production Existing Consumption Estimated Demand

000’s tonnes

TWO PROJECTS STRATEGICALLY LOCATED TO SERVE SOP-DEMANDING CROPS

Valleyfield Blawn Mountain Almonds Grapes Apples Lettuce Citrus Vegetables Potatoes Tobacco

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Valleyfield Project

Qu Quebec

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VALLEYFIELD PROJECT (QUEBEC)

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Low capex with fixed price contract (CAD$50 million) Short build time: 9-12 months 40,000 tpy of SOP (scalable) Other locations in North America being for expansion opportunities Utilities and logistics infrastructure well-established Technology and commercial relationships create barrier to entry Land use approved by local city council – enthusiastic government support Long term offtake for hydrochloric acid by product secured Long term supply of sulphuric acid secured

Phase 1 - Economic Summary (CDN$)

Initial capital cost $50.0 million IRR (unlevered after tax) 30% NPV (after tax at 10%) $82.0 million SOP price/tonne $820 Opex/tonne 3701 Margin/tonne $450

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(1) Net of acid credit.

Located in industrial area near Montreal, Quebec Property secured in industrial zone Strong local support Rail access at site Port within 2 km, allowing access into key U.S. markets Within 5 km of sulphuric acid supplier Located near hydrochloric acid customers Quebec Government highly supportive of new investments that create employment (including providing financial support)

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VALLEYFIELD: STRATEGICALLY LOCATED

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PROVEN MANNHEIM PROCESS

Converts MOP to SOP Proven production process (150 year history), with numerous operating facilities in Europe and China (50% of current SOP production is from Mannheim) High quality, consistent production process Scale allows for construction time of 12-months Migao Corp. (long-term SOP producer) engaged to provide procurement and technical services

POTASSIUM CHLORIDE SULPHURIC ACID HEAT

MANNHEIM FURNACE

POTASSIUM SULPHATE (SOP) HYDRO- CHLORIC ACID (HCl)

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Raw Material Finished Products 2-Stage Process

550oC .84t .56t 1.0t 1.2t

VALLEYFIELD MILESTONES

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Engineering

 Preliminary engineering completed Q1 2017 Phase I near completion  Partnered with Migao

• Corp. to leverage 20-year

Mannheim experience Expected to proceed with execution in Q1, 2017

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Permitting

Applications being submitted Q1 2017  City has passed resolution for use

• f land

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Commercial Arrangements

Negotiating long term supply of MOP  Long term supply

• f sulphuric acid

secured  Lock in natural gas contract  HCl offtake with Jones Hamilton secured

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SOP Offtake

Negotiating long term

• fftake agreements

Direct sales to local growers

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Financing

Debt and Equity negotiations ongoing at Valleyfield level Quebec & Federal government financial programs available

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Construction Milestones

Break ground Q2 2017 Complete construction Q1 2018 Ramp up to full production H1 2018

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Blawn Mountain Project

Utah

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BLAWN MOUNTAIN PROJECT (UTAH)

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Will be lowest cost producer in north America 45+ years proven + probable reserves Initial production rate of 255,000 tons per year Can expand to 645,000 tons per year All infrastructure within 30 miles Processing technology optimized by Potash Ridge over last 3 years Commercial arrangements well advanced Permits and water rights secured Offtake for sulphuric acid byproduct secured Upside potential through monetization of tailings rich in alumina

PFS Economic Summary (US$)

Initial capital cost $458 million IRR (unlevered after tax) 20.1% NPV (after tax at 10%) $482 million SOP price/ton $673 Opex/ton(1) $172 Margin/ton $501

(1) Net of acid credit and excluding royalties.

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BLAWN MOUNTAIN PROJECT (UTAH)

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• Drilling work to date has established 45+

years of reserves

• Over 100 years of potential potash

production

• Ranked #2 state for business and top 10

mining jurisdiction globally(1)

• 100% state-owned land
• Strong state government and local support
• All necessary infrastructure nearby

(1) Forbes Magazine, 2015 Ranking and Fraser Institute, 2015

1 2 3 5 4 1 Area 2 Mining Zone 2

Processing Plant Location

3 Access Road 4 Area 1 Mining Zone 5 Ore Test Pit

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PERMITTING ESSENTIALLY COMPLETED The following table identifies the major permits and approvals that the Corporation has or still needs to obtain prior to construction:

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PERMIT/APPROVAL ISSUING AGENCY COMPLETED

Exploration Permit Utah Division of Oil, Gas and Mining October, 2011 US Army Corps of Engineers Jurisdictional Waters Concurrence US Army Corps of Engineers March, 2014 Groundwater Permits Utah Division of Water Quality July, 2014 Large Mine Operation Approval Utah Division of Oil, Gas and Mining August, 2014 Air Quality Emission Standard Utah Division of Air Quality Air Quality Emission Standard requires the engineering to be partially completed before the application is filed. It is technically not a permit, but more an agreed upon emission target that the Project must be designed to meet.

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INDUSTRY PROVEN FLOWSHEET

ALUNITE CRUSHING & GRINDING CALCINATION WATER LEACH ALUMINA RICH TAILINGS SO2 SOP SOLUTION ACID PLANT CRYSTALLIZING DRYING, COMPACTING & SIZING SUPHURIC ACID SOP 21

• Existing plant in Azerbaijan currently mothballed (Ganja Refinery)
• Flowsheet similar to commercial-scale production processes historically used

in US and Australia

• Extensive test work optimizes proven technology of SOP process
• Planned additional test work will include bulk samples at equipment vendor

facilities – will result in vendors providing production guarantees

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• PFS economics exclude revenue from alumina rich material

BLAWN MOUNTAIN DEVELOPMENT TIMELINE

Late 1970’s $25 million invested developing Project April 2012 Initial resource estimate August 2014 Large Mine Operating Permit issued December 2012 IPO $80M market cap March 2014 US ACOE confirms no US federal permits required; exploration lease converted to mining lease July 2014 Groundwater Discharge Permit issued December 2013 Prefeasibility Study established 40 years of reserves November 2012 Preliminary Economic Assessment 2011 Project Acquired October 2014 Entered into offtake and marketing arrangement for by- product sulphuric acid

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January 2017 Updated PFS issued showing reduced capex and maintaining strong economics

BLAWN MOUNTAIN MILESTONES

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Maintain Value Created to Date While Raising Pre-Construction Capital

 Mining lease modified in June 2015 to defer lease payments  Permits remain intact  Commercial arrangements already negotiated for support infrastructure remain in place

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Evaluated Reduced Scale Alternative

 Completed updated PFS in Q1 2017 Next step to obtain EPC quote

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Offtake

 MOU signed for sale

• f by-product

sulphuric acid In discussions with potential offtake

• f SOP partners

Ongoing discussions with potential partners to assess the upside for the alumina

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Financing

Strong interest in construction financing – continue dialogue with potential financiers

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GUY BENTINCK

President & Chief Executive Officer

• Chartered Professional Accountant
• 20 years mining/resource experience
• Sherritt CFO and SVP Capital Projects

EXPERIENCED AND PROVEN MANAGEMENT

ROSS PHILLIPS

Chief Operating Officer & Chief Financial Officer

• MA (Econ)/MBA/CFA/CPA
• 15 years experience in large

resource and energy sector projects

• Sherritt, Capital Power

JAY HUSSEY

President, Valleyfield Fertilizer & VP Corporate Finance

• 20 years capital markets consulting
• 9 years SOP operational experience with

Migao Corporation (TSX-listed, China-based, Mannheim SOP producer)

OVER 55

YEARS

COMBINED EXPERIENCE

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CAPITAL STRUCTURE

126.4M

Total Common Shares Outstanding

10.6M

Stock Options

25.2M

Warrants

162.2M

Total Fully Diluted Shares 25

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Date/Price Price Proceeds $mm

February 2011 $0.05 $1.1 August 2011 $0.25 5.4 November 2011 $0.25 1.5 December 2011 $0.25 0.5 December 2011 $0.75 10.5 December 2012 $1.00 20.0 November 2015 $0.03 0.6 April 2016 $0.15 1.75 May 2016 $0.25 $1.4 January 2017 Convertible Debenture $3.4 Total $46.15

CAPITAL RAISES

As of February 13, 2017

Shares outstanding 126 million 52 week range $0.50 - $0.05 February 13 , 2017 share price $0.25 Market Cap $31 million Management and Board 2.2 million shares

MARKET FIGURES

10 King Street East, Suite 300 Toronto, Ontario 416.362.8640 www.potashridge.com