Investor Presenta,on JUNE 2016 FORWARD LOOKING STATEMENTS Certain - - PowerPoint PPT Presentation

Investor Presenta,on

JUNE 2016

Certain statements in this presenta,on may cons,tute "forward-looking" statements which involve known and unknown risks, uncertain,es and other factors which may cause the actual results, performance or achievements of Potash Ridge Corpora,on (the "Corpora,on"), 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 presenta,on, such statements use such words as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "an,cipate", "es,mate" and other similar terminology. These statements reflect the Corpora,on's current expecta,ons regarding future events and opera,ng performance and speak only as of the date of this presenta,on. Forward-looking statements involve significant risks and uncertain,es, which include, but are not limited to the factors discussed under “A Cau,onary Note Regarding Forward Looking Statements” and "Risk Factors" in the Corpora,on’s Annual Informa,on Form dated March 28, 2016, and should not be read as guarantees

• f future performance or results, and will not necessarily be accurate indica,ons of whether or not such results will

be achieved. Although the forward-looking statements contained in this presenta,on are based upon what management of the Corpora,on believes are reasonable assump,ons, the Corpora,on 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 presenta,on and are expressly qualified in their en,rety by this cau,onary statement. Subject to applicable securi,es laws, the Corpora,on assumes no obliga,on to update or revise them to reflect new events or circumstances.

FORWARD LOOKING STATEMENTS

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Potash Ridge is a near term producer of premium fer,lizer with world class development assets in Utah and Quebec.

ABOUT US

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The Company is uniquely posi,oned to take advantage of strong markets for Sulphate of Potash.

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• Domes,c selling price 3x

regular potash (“MOP”)

• Global consump,on is ~5

million tonnes per year (“tpy”)

• Demand poten,al is

10 million tpy

• Exis,ng producers unable to

expand to meet supply deficit

HIGHLIGHTS

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Sulphate of Potash (SOP):

Premium Potash/ Significant Supply Deficit

• Become the first SOP

producer using Mannheim process in North America and, longer term, the largest North American SOP producer

• 40,000 tpy of SOP;

CDN$48.8 million capex

• 34.7% aoer tax IRR
• Proven process used

throughout Europe and Asia

• Produc,on scheduled to

commence in Q4 2017

• Strategic loca,on near by-product

hydrochloric acid demand

• Expansion poten,al at site
• Poten,al for over $14m in

average annual cash flows (Y1-Y5)

• Up to 585,000 tpy of SOP;

poten,al to phase-in produc,on to reduce front end capex

• Prefeasibility complete:

20.5% aoer tax IRR

• Large surface mineral deposit;
• ver 40-year reserve life
• Major permits and water

rights secured; infrastructure nearby

• Poten,al upside from alumina

residue in tailings

• Poten,al for over US$250M in

average annual cash flow

Strategy Valleyfield

(Quebec)

Blawn Mountain

(Utah)

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• 100.0

200.0 300.0 400.0 500.0 600.0 700.0 800.0 900.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2013 2014 2015 2016 POT - North America (MOP) CMP - (SOP) CMP Guidance - (SOP)

SOP: A top performing commodity in last 5 years

SOP: SUPERIOR PRODUCT WITH ATTRACTIVE MARKET DYNAMICS

SOP (K2SO4)

US$709/tonne in NA(1) Global market demand 5 million tpy, poten,al market

• f 10 million tpy

Fundamental supply deficit – limited ability to grow produc,on using exis,ng processes Low chloride, high sulphur – providing benefits to crops not available with MOP Improves yield, taste, appearance and shelf life; ideal for salty or sandy soils or arid climates Significant benefits over MOP for fruits, vegetables, nuts, potatoes, tobacco – many

• ther high value crops

MOP (KCI)

US$178/tonne in North America(2) Global market 55 million tpy Market is in over supply, with idle capacity and mul,ple projects in pipeline Contains chloride – no nutrient value; in many instances detrimental to plants Chloride can leach into groundwater or build-up in arid soil condi,ons, impac,ng yields and crop quality Primarily for corn and grain crops that can withstand chloride

1 Compass Minerals Q1 2016 Report, 2 Potash Corp Q1 2016 Report

SERVING AN UNDERSERVED MARKET

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MOP SOP

GLOBAL SOP PRODUCTION AND CONSUMPTION

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CHINA 2,500k tpy EUROPE 1,850k tpy USA 300k tpy CHILE 150k tpy RUSSIA 120k tpy SE ASIA 250k tpy MIDDLE EAST 100k tpy EUROPE 1,200k tpy NORTH AMERICA 400k tpy SOUTH AMERICA 300k tpy CHINA 2,500k tpy AFRICA 250k tpy ROW 500k tpy PRODUCTION CONSUMPTION

Source: CRU 2013

Regional consumpIon driven by access to product due to supply constraints

BLAWN MOUNTAIN, UTAH

Poten,al for up to 585,000 tpy SOP produc,on Evaluate scaling with targeted first produc,on in late 2019

VALLEYFIELD, QUEBEC

Bring ini,al 40,000 tpy SOP into produc,on in Q4 2017 Complete permitng and break ground in 2016

DIVERSIFIED SOP PROJECTS

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Finalize SOP ouake and other commercial arrangements Leverage management teams’ strong project development and financing exper,se Develop EPC or similar construc,on arrangements to minimize execu,on risk

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Valleyfield Project

Quebec

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VALLEYFIELD PROJECT (QUEBEC)

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Located near hydrochloric acid customers

MOU signed for o9ake of ini<al produc<on Discussions underway for second phase of hydrochloric acid o9ake

Engineering study completed by SNC on March 29, 2016 Plan to build under EPC contract Phase 1 - 40,000 tpy of SOP CDN$14.1 million average annual cash flow for first 5 years Poten,al to build addi,onal units (scalable in increments of 10,000 tpy) Permitng expected to take three months Strong interest in SOP ouake Awrac,ve financing support in Quebec Expect to start construc,on in late 2016: 12-month construc<on schedule

Phase 1 - Economic Summary (CDN$)

IniXal capital cost $48.8 million IRR (unlevered aZer tax) 34.7% NPV (aZer tax at 10%) $74.0 million SOP price/tonne $900 (U.S.$700 ) MOP price/tonne $350 (U.S.$178) Opex/tonne $460

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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 2 km of sulphuric acid supplier – discussions ini,ated with suppliers Located near hydrochloric acid customers Quebec Government highly suppor,ve of new investments that create employment (including providing financial support)

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1 2 3 4 5 6 7

VALLEYFIELD: STRATEGICALLY LOCATED

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PROVEN MANNHEIM PROCESS

Converts MOP to SOP Proven produc,on process (150 year history), with numerous opera,ng facili,es in Europe and China (about 40% of current SOP produc<on is from Mannheim) High quality, consistent produc,on process Scale allows for construc,on ,me of 12-months

POTASSIUM CHLORIDE (MOP) SULPHURIC ACID ENERGY

MANNHEIM FURNACE

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

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VALLEYFIELD NEXT STEPS

1

Engineering Study

Completed by SNC

• n March 29, 2016

Finalize EPC arrangements

2

Permieng

Expected to take three months

3

Acid Commercial Arrangements

Plan to have a third party build, own,

• perate hydrochloric

acid and sulphuric acid infrastructure Third party will also be responsible for acid ouake and logis,cs

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SOP Ofake

Mul,ple expressions

• f interest in ouake.

Nego,a,ons set to commence now engineering study complete

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Financing

Discussions ongoing with preliminary engineering study complete Quebec government financial support programs available

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ConstrucXon

Expect to commence in late 2016 An,cipate 12-month construc,on ,metable

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Blawn Mountain Project

Utah

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BLAWN MOUNTAIN PROJECT (UTAH)

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Surface mining with adjacent processing facility Known process to convert alunite ore into SOP, by-product sulphuric acid and an alumina-rich material Prefeasibility Study completed by Norwest in December 2013 P+P reserves support 40 year mine life,

Poten<al to increase life of opera<ons through addi<onal explora<on

Project permiwed; water rights secured MOU nego,ated with third party for ouake of sulphuric acid Engineering study will assess the poten,al to phase project to significantly reduce up-front capital cost Poten,al to fast track next stage of development

PFS Economic Summary (US$)

IniXal capital cost $1,124 million IRR (unlevered aZer tax) 20.5% NPV (aZer tax at 10%) $1.0 billion SOP price/ton $649 Opex/ton(1) $173

(1) Net of acid credit and excluding royal<es.

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UTAH

An Awrac,ve Place for Mining

BLAWN MOUNTAIN PROJECT (UTAH)

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• Major resource producing state
• Over 100 years of potash produc,on
• Best state for business and top quar,le

mining jurisdic,on(1)

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

(1) Forbes Magazine, 2015 Ranking and Fraser Ins<tute, April, 2013

1 2 3 5 4 1 Area 2 Mining Zone 2 Processing Plant Loca,on 3 Access Road 4 Area 1 Mining Zone 5 Ore Test Pit

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RESERVES AND MINE LIFE

Drilling work to date has established 40 years of reserves – calculated by independent engineer (Norwest) Drilling to date has focused only on two

• f the four areas

within the 15,400 acre land posi,on

NOT DRILLED DRILLED

Mineral Reserves by Category November 6, 2013 Reserve Category Total

Proven ('000 tons) Probable ('000 tons)

Alunite Ore (ROM tons) 136,254 289,540 425,794 Ore (average K2O (%) grade) 3.56 3.49 3.51 Ore (average K2SO4 (%) grade) 6.59 6.46 6.49 SOP (tons) 8,457 17,970 26,427 Sulphuric Acid (tons) @ 98% Purity 18,888 40,136 59,024

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PERMITTING ESSENTIALLY COMPLETED The following table iden,fies the major permits and approvals that the Corpora,on has or s,ll needs to obtain prior to construc,on:

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PERMIT/APPROVAL ISSUING AGENCY COMPLETED

ExploraXon Permit Utah Division of Oil, Gas and Mining October, 2011 US Army Corps of Engineers JurisdicXonal Waters Concurrence US Army Corps of Engineers March, 2014 Groundwater Permits Utah Division of Water Quality July, 2014 Large Mine OperaXon 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 parXally completed before the applicaXon 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 MATERIAL SO2 SOP SOLUTION ACID PLANT CRYSTALLIZING DRYING, COMPACTING & SIZING SUPHURIC ACID SOP

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• Exis,ng plant in Azerbaijan currently mothballed (Ganja Refinery)
• Flowsheet similar to commercial-scale produc,on processes historically used in

US and Australia

• Extensive test work confirms flowsheet
• Planned addi,onal test work will include bulk samples at equipment vendor

facili,es – will result in vendors providing produc,on guarantees

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• Economics exclude revenue from alumina rich material

BLAWN MOUNTAIN DEVELOPMENT TIMELINE

Late 1970’s $25 million invested developing Project April 2012 Ini,al resource es,mate August 2014 Large Mine Opera,ng Permit issued December 2012 IPO $80M market cap March 2014 US ACOE confirms no US federal permits required; explora,on 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 ouake and marke,ng arrangement for by- product sulphuric acid

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BLAWN MOUNTAIN NEXT STEPS

1

Maintain Value Created to Date While Raising Pre-ConstrucXon Capital

• Mining lease modified

in June 2015 to defer lease payments

• Permits remain intact
• Commercial arrangements

already nego,ated for support infrastructure remain in place

2

Further Evaluate Reduced Scale AlternaXve

• Engineering firm

will evaluate phased development of project

• Ul,mate goal will be to
• btain EPC quote on

reduced scale alterna,ve

3

Ofake

• Ini,ate discussions

with poten,al ouake partners aoer comple,on of reduced scale alterna,ve evalua,on

4

Financing

• Strong interest in

construc,on financing – con,nue dialogue with poten,al financiers

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GUY BENTINCK

President & Chief Execu<ve Officer

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

EXPERIENCED AND PROVEN MANAGEMENT

ROSS PHILLIPS

Chief Opera<ng Officer & Chief Financial Officer

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

resource and energy sector projects

• Sherriw, Capital Power

JAY HUSSEY

VP Corporate Finance & President, Valleyfield Fer<lizer

• 20 years capital markets consul,ng
• 9 years SOP experience with

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

RIPTON RAMSINGH

Project Consultant

• BSc Applied Chemistry/MBA
• 30 years experience in alumina

industry

• Hatch, Alumina Partners of Jamaica,

OVER

80

YEARS

COMBINED EXPERIENCE

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CAPITAL STRUCTURE

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 Total $42.75

AcXvity $mm

Various engineering studies $10.4 Drilling 6.8 Employee costs 6.3 Engineering and permitng consul,ng costs 5.4 Mineral leases 2.5 Other 1.2 Total $32.6

CAPITAL RAISES CAPITALIZED COSTS

125.9M

Total Common Shares Outstanding

9.3M

Stock OpIons

19.2M

9.9M @ $0.08 Warrants (exp. Nov 2017) 6.5M @ $0.30 Warrants (exp. Apr 2019) 2.8 M @ $0.50 Warrants (exp. May 2019)

154.4M

Total Fully Diluted Shares

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Share Price (June 1) $0.36 Market Cap (basic) $45M 52 week hi-lo $0.50 - $0.03

www.potashridge.com

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