Premium Potash and Bauxite Project Driven by a Proven Management - - PowerPoint PPT Presentation

Premium Potash and Bauxite Project Driven by a Proven Management Team

TSX ¡: ¡PRK ¡

FORWARD LOOKING STATEMENTS

2

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 final prospectus of the Corporation dated November 27, 2012, 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.

A potash company focused on its Blawn Mountain property in Utah

3

SOP: 680,000 tonnes per annum Bauxite material: 3.3 million tonnes per annum

EXPERIENCED AND PROVEN MANAGEMENT OVER 80 YEARS COMBINED EXPERIENCE

Guy Bentinck President & CEO

Chartered Accountant; 20 years mining/resource experience Sherritt: CFO and SVP Capital Projects

Ross Phillips Chief Operating Officer

10 years experience in large resource and energy sector projects Sherritt, Capital Power ¡

Jeff Hillis Chief Financial Officer

Chartered Accountant; 10 years mining sector finance, including CFO

• f several public mining companies

Iberian Minerals, Excellon, Falconbridge ¡

Paul Hampton VP, Project Management

Geologist and Metallurgical Engineer; ~30 years experience in design, construction, start-up and management of mineral processing facilities SNC, Washington Group, Outotec

4

Laura Nelson VP, Government and Regulatory Affairs

Extensive experience in government relations, permitting and power planning, including the successful permitting of the Red Leaf oil shale project Red Leaf Resources, Utah Government ¡

COMPETITIVE ADVANTAGES

Large mineral deposit containing premium-quality potash and bauxite material Strategically located in a mining friendly jurisdiction with established infrastructure nearby State-owned land allows for an efficient permitting process Historical work expedites project development Lower risk surface mining deposit; expected lowest cost producer 30 year mine life, with upside potential PEA completed: $1.3 billion NPV at 10%; 21.3% after tax IRR; excludes bauxite material revenue

5

POTASH OVERVIEW

6

No known substitute Increasing world population Growing per capita income Decreasing arable land Increasing use of biofuels

~5% EXPECTED ANNUAL GROWTH IN DEMAND TO 2016

POTASH: ESSENTIAL TO THE WORLD’S FOOD SUPPLY

7

AVERAGE 47% PRICE PREMIUM OVER MOP3

SULPHATE OF POTASH (SOP) IS A PREMIUM PRODUCT

Sulphate of Potash (SOP) Muriate of Potash (MOP)

Potassium Sulphate (K2SO4) Potassium Chloride (KCl) 6 million tonnes sold in 20111 55.8 million tonnes sold in 20112 Potassium and sulphur are essential nutrients2 Crop quality/yield diminish as chloride builds up2 Improves yield, quality, taste and enhances shelf life2

1Source: Fertecon 2Source: CRU 3Based on historical data

8

USES OF SOP

Fruits Vegetables Nuts Horticultural Plants Tobacco Tea Dry soils Salty soil

9

HISTORICAL PRICE PREMIUM FOR SOP HAS RANGED BETWEEN 30% AND 61%

SOP PREMIUM PRICE TRENDS

1SOP, standard grade cif NW Europe (Source: Fertilizer Week) 2MOP, all grades, fob Vancouver/Portland (Source: CRU)

U.S. $/tonne

SOP1 MOP2

10

0 ¡ 100 ¡ 200 ¡ 300 ¡ 400 ¡ 500 ¡ 600 ¡ 700 ¡ 800 ¡ 900 ¡ 2006 ¡ 2007 ¡ 2008 ¡ 2009 ¡ 2010 ¡ 2011 ¡ 2012 ¡ 2013 ¡

SOP MARKET CHARACTERISTICS

1Source: Fertecon, CRU

11

Global SOP Consumption and Commodity Price1 ¡

$0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 2,000 4,000 6,000 8,000 10,000 12,000 2000 2004 2008 2012 2016 2020 (US$/tonne) Tonnes (000s)

Global SOP Consumption Historical Standard FOB NW Europe (US$/tonne SOP) Estimated Standard FOB NW Europe (US$/tonne SOP)

Europe 23.3%

• N. America

8.6% China 44.3% Rest of the World 14.9% Africa 4.6% Central and South America 4.3%

SIGNIFICANT GROWTH POTENTIAL

SOP MARKET DYNAMICS

Limited production and premium price has restricted demand

SOP share of potash market: Current: ~10% Potential: >28%1

Trend toward high nutrient fertilizers

Potential to use SOP in typical cereal crop fertilizer blends instead of ammonium sulphate

India

SOP consumption: China (pop. 1.3 billion): 1.9 million tpy India: (pop. 1.2 billion) 50,000 tpy (<1% of country’s potash consumption)

Brazil

SOP consumption = 32,000 tpy (0.4% of total potash consumption) Premium crops grown on 20% of planted land

12

1Based on crops that are best suited for SOP

THE BLAWN MOUNTAIN PROJECT

13

ANTICIPATED PRODUCTION BY 2016

PROJECT OVERVIEW

14

Large alunite deposit, which is expected to be processed into SOP, by-product bauxite material and sulphuric acid Target 680,000 SOP tonnes and 3.3 million bauxite material tonnes per year; start up by 2H-2016 Historical work expedites project development Mineral deposit to be surface mined Proven process

ALMOST 100 YEARS OF POTASH PRODUCTION

UTAH: AN ATTRACTIVE MINING JURISDICTION

1Forbes Magazine, November, 2011 2Fraser Institute, February, 2012

Major resource producer Existing potash production Best state for business1 Top quartile mining jurisdiction2

15

OUR LAND ADVANTAGE

State-owned land Simpler permitting process Leasehold and royalty agreements negotiated No known adverse environmental, social

• r aboriginal issues

Sufficient water nearby – rights application made

16

MUNICIPAL AND STATE SUPPORT OF PROJECT

ESTABLISHED INFRASTRUCTURE NEARBY

Roads, rail and natural gas Construction materials and equipment suppliers nearby Skilled labour force Access to ports of Los Angeles (530 miles) and Houston (1,550 miles)

17

SOP AND ALUMINA HOSTED IN ALUNITE

(K2SO4 ⋅ Al2(SO4)3 ⋅ 2Al2O3 ⋅ 6H2O) Volcanic rock mined for over 500 years Contains alumina (Al2O3), potassium (K2O), and sulphur (SO3) Historic source of SOP and alumina in U.S. and Australia Long-term (30+ years) SOP and alumina production in Azerbaijan

18

19 ¡

HISTORICAL PRODUCTION OF SULPHATE OF POTASH & ALUMINA FROM ALUNITE

Australia ¡

COMMERCIALLY PROVEN PROCESS

New South Wales, Australia

• 1878 - Alunite ore shipped from New South

Wales to England where it was processed.

• World War I – Alunite mine and processing

facility produced aluminum sulphate and alumina

• 1940-1949 – An alunite mine and processing

facility in Lake Campion produced potash and

• alumina. Plant shut down post World War II for

economic reasons Ganja, Azerbaijan Alunite mine and processing facility operated from1960s until 1994. Plant shut-down due to lack of power following collapse of Soviet Union Production: (per annum)

• 103,000 tonnes of SOP
• 300,000 tonnes of bauxite

Utah, United States

• 1915-1930 SOP produced from alunite
• Alunite mine and processing plant

produced SOP and alumina however the mine shut down after World War 1 as demand for alumina subsided.

• 1941-1945 Kalunite Project

ORE TEST PIT

20 ¡

PREVIOUS WORK ACCELERATES PROJECT DEVELOPMENT

EXTENSIVE DEVELOPMENT ON BLAWN MOUNTAIN COMPLETED IN 1970’s

21

• Approx. $25 million spent

(~ $100 million in today’s dollars)

Drilling Resource estimate Feasibility study Mine plan Engineering Permitting Pilot plant: 3-year operation processing 11 tonnes/day

• Project ultimately shelved due to poor economic conditions in early 1980s
• Potash Ridge owns all historical data

SIMPLE PROVEN FLOWSHEET

Potash Ridge expects the processing plant to produce:

• 680,000 tonnes of SOP per annum
• 3.3 million tonnes per annum of 51% alumina content bauxite material
• 1.6 million tonnes of concentrated sulphuric acid per annum

Alunite Beneficiation Calcination Water Leach

51% alumina content bauxite material

Potash Sulphate Solution Crystalizer Compaction Drying Potash Sulphate SO2 Acid Plant Sulphuric Acid 22

Flowsheet mirrors historical production processes

RECENT TEST WORK CONFIRMS FLOWSHEET

• Pilot scale test work scheduled to start end- April;
• Objective of pilot scale test work is process optimization
• Except to be completed pilot plant testing by end of 2013

BAUXITE MATERIAL OVERVIEW

23

Bauxite ¡material ¡suitable ¡for ¡a ¡Bayer ¡Process ¡

• Non-­‑tradiGonal ¡high-­‑grade ¡alumina ¡(51%) ¡resource ¡
• Low ¡iron ¡/ ¡Gtanium ¡concentraGons ¡compared ¡to ¡a ¡tradiGonal ¡bauxite ¡
• Avoids ¡the ¡producGon ¡of ¡bauxite ¡residue ¡“red ¡mud” ¡waste ¡ ¡
• No ¡idenGfied ¡heavy ¡metals ¡
• Favorable ¡access ¡to ¡markets ¡via ¡exisGng ¡rail ¡and ¡port ¡infrastructure ¡

24 ¡

HIGH GRADE BAUXITE MATERIAL BY-PRODUCT

Potash ¡Ridge ¡bauxite ¡material: ¡

• THA ¡= ¡50.9 ¡% ¡ ¡(Tri ¡-­‑hydrate ¡Alumina) ¡
• Quartz ¡= ¡20.6 ¡% ¡(Form ¡of ¡Silica) ¡
• Fe2O3 ¡= ¡2.58 ¡% ¡(Ferrous ¡Oxide ¡<Iron>) ¡
• TiO2 ¡= ¡1.42 ¡% ¡(Titanium ¡Oxide) ¡
• P2O5 ¡= ¡0.59 ¡% ¡(Phosphorous ¡Pent-­‑oxide) ¡

Typical ¡bauxite: ¡

• THA ¡= ¡41.66 ¡% ¡ ¡(Tri ¡-­‑hydrate ¡Alumina) ¡
• Total ¡SiO2 ¡= ¡7.32% ¡(Total ¡Silica) ¡
• Quartz ¡= ¡1.86 ¡% ¡(Form ¡of ¡Silica) ¡
• Fe2O3 ¡= ¡5.98 ¡% ¡(Ferrous ¡Oxide ¡<Iron>) ¡
• TiO2 ¡= ¡2.43 ¡% ¡(Titanium ¡Oxide) ¡
• P2O5 ¡= ¡0.06 ¡% ¡(Phosphorous ¡Pent-­‑oxide) ¡
• TOC ¡= ¡0.19% ¡(Total ¡Organic ¡Carbon) ¡

GOOD TIMING FOR NEW BAUXITE

25 ¡

Source: ¡CRU ¡Analysis, ¡Bauxite ¡and ¡Alumina ¡Market ¡Outlook, ¡2011 ¡ ¡

¡ Alumina demand forecasted to rise by 6.6% per year over the next five years

• Australian infrastructure constraints
• Restrictions on Indonesian bauxite exports (2014) as the government looks to develop a

domestic processing industry

• Few new politically secure regions of the world for new sources of bauxite

Chinese demand growth Indian demand growth Growing Chinese alumina refining capacity has resulted in significant increase in bauxite demand Alumina demand in India is forecast to more than double to 8.5 million tonnes by 2016 from 3.8 million tonnes in 2010 By 2016 China is expected to account for around 43% of global alumina refining capacity in 2010 China imported 76% of its 30 million tonnes of bauxite imports from Indonesia Domestic bauxite production is expected to grow but projects have proved difficult to progress due to local obstacles, post 2014 several projects are expected to rely on imported bauxite

26 ¡

TRANSPORTATION ADVANTAGE VS OTHER BAUXITE SOURCES TO CHINA

Blawn Mountain, Utah Boke, Guinea Trombetas, Brazil Kingston, Jamaica Shipping distance to Shandong Province, China (nm) 5,744 11,128 10,815 9,051 Average alumina grade 51% 40 – 60% 50 – 60% 45% Port Long Beach Conakry Aratu Jamaica

Bauxite ¡grade ¡comparisons: ¡ Gove ¡/ ¡Weipa, ¡Australia ¡~50% ¡alumina ¡and ¡Indonesian ¡bauxite ¡~40% ¡alumina ¡

Qingdao ¡ Los ¡Angeles ¡ Jamaica ¡ Aratu ¡ Conakry ¡ BLAWN ¡MOUNTAIN ¡

NI 43-101 CONFIRMATION DRILLING

27

Historic - 320 holes drilled in 1970’s

Phase 1

Area 1 – 34 holes (19 core; 15 RC)

Phase 2

Area 1 – 38 holes (12 core; 26 RC) Area 2 – 50 holes (6 core; 44 RC)

Phase 3

Area 1 – 2 RC holes Area 2 – 16 RC holes

140 drill holes completed ¡

Initial Mine Plan for 30 Years using NI 43-101 Compliant M&I Resources ¡

SIGNIFICANT RESOURCE IDENTIFIED

1 Contained within alunite 2 Using 1.00% cut-off grade 3 The historic resources are not NI 43-101 compliant although reasonable methodologies were applied at the time. A qualified person has not

done sufficient work to classify, and the Corporation is not treating the estimates as current mineral resources or mineral reserves.

4

Area Measured + Indicated Inferred Resource tons (000's) Alunite grade SOP tons (000's) SOP Resource tons (000's) Alunite grade SOP tons (000's) SOP grade1 grade1 NI-43-101 Compliant 2 1 156,285 37.6% 9,315 15.8% 392 46.5% 24 13.1% 2 464,442 35.6% 26,395 15.9% 250,769 34.7% 13,476 15.5% Total: Areas 1 & 2 620,726 35.8% 35,710 15.9% 251,160 34.7% 13,500 15.5% Historic Resources 3 3 11,600 44.0% 987 19.3% 281,400 44.0% 23,950 19.3% 4 51,700 36.5% 3,667 19.4% 49,200 38.0% 3,645 19.5% Total: Areas 3 & 4 63,300 37.9% 4,654 19.4% 330,600 43.1% 27,595 19.3%

28

MILESTONES

29

a

43-101 Measured and Indicated Resource to support 30-year mine life

a

Issue Preliminary Economics Assessment

a

Commence metallurgical test program

a

Commence Pilot Plant test work

a

Produce SOP from test work Produce Bauxite-type material from test work Issue Prefeasibility Study Complete metallurgical test program Submit Large Mining Permit Application Issue Feasibility Study Final permits obtained

June 2013 End-June 2013 End 2013 End 2013 Mid-2014 Mid-2014 EXPECTED

EXPECTED TO BE LOWEST COST SOP PRODUCER

30

Alunite Leach Polyhalite Leach Salt Lakes MOP/ Sulphate Salts Mannheim Process

Process Method World Capacity Process Inputs Products Avg Cost / Tonne Mannheim 60% ! MOP ! Sulfuric Acid ! Energy ! SOP ! HCI $550 MOP and Kieserite 25% ! MOP ! Kieserite ! Energy ! SOP ! Magnesium Chloride $386 Salt Lakes 15% ! Lake Brines ! Energy ! SOP ! Magnesium Chloride ! NaCI $300 Polyhalite Leach – ! Polyhalite ! Water ! Energy ! SOP ! Kieserite $162 Alunite Leach – ! Alunite ! Energy ! SOP ! H2SO4 ! Bauxite substitute $101

Cash Cost by Production Method

Avg Cost/Tonne

Process Method and Cost Comparisons

POTASH RIDGE

Expected In Production Includes expected and in-production data

1 The cost is converted from $92 per short ton. Excludes bauxite credits.

¡

$300 $386 $550 $162 $1011 $155

PRELIMINARY ECONOMIC ANALYSIS RESULTS

31 ¡

PROJECT HIGHLIGHTS Annual Production Rates: SOP 680,000 tonnes Sulphuric Acid 1.6 million tonnes Initial Mine Plan1 30 years Capital Cost2 $1.075 billion

1 Future planned work may expand resource base and extend life of project beyond 30 years 2 Excludes third party costs: power generation ($160 million), sulphuric acid plant ($180 million) and water treatment plant ($40 million) 3 Excludes potential credits related to sale of 3.3 million tonnes per annum of bauxite material

FINANCIAL HIGHLIGHTS NPV @ 10% (after tax)3 $1,331 million Unlevered IRR (after tax)3 21.3%

SOP CAPITAL COST BREAKDOWN1

32 ¡

CAPITAL ¡COST: ¡$1.075 ¡billion ¡

¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡(25% ¡conTngency) ¡

24% ¡ ¡ ¡SOP ¡Leaching, ¡ ¡ CrystallizaGon ¡ ¡ and ¡Drying ¡ 18% ¡ ¡ CalcinaGon ¡ 17% ¡ ¡ BeneficiaGon ¡ 41% ¡ ¡ ¡ ConGngency ¡ ¡ and ¡ ¡ Indirects ¡

1 Excludes third party costs: power generation ($160 million), sulphuric acid plant ($180 million) and water treatment plant ($40 million)

¡

OPERATING COSTS: $101/TONNE1

33 ¡

7% ¡ 79% ¡ ¡ Direct ¡Plant ¡and ¡Mine ¡ ¡ ProducGon ¡Costs ¡ ¡ ($188M) ¡ 7% ¡ ¡ Other ¡ ¡ ($14M) ¡ 14% ¡ RoyalGes ¡ ($33M) ¡

1 ¡The cost is converted from $92 per short ton. Excludes bauxite credits 2 ¡750,000 ¡tons ¡(SOP) ¡+ ¡1.8M ¡tons ¡(sulphuric ¡acid) ¡= ¡2.55 ¡million ¡tons ¡or ¡2.3 ¡million ¡tonnes ¡ 3 ¡Includes ¡10% ¡conGngency ¡

¡ ¡ ¡

Cost ¡Breakdown ¡ Millions ¡ Direct ¡Plant ¡and ¡Mine ¡Costs ¡ $188 ¡ RoyalGes ¡ $33 ¡ Other ¡ $14 ¡ TOTAL: ¡ $235 ¡ Divided ¡by ¡ 2.55 ¡tons2 ¡ Cost ¡per ¡ton ¡ $92 ¡ Cost ¡per ¡tonne ¡ $1013 ¡

CAPITAL STRUCTURE

34 ¡

Millions ($) Common Shares 81.3 Non-voting Common Shares 5.0 Total Shares Outstanding 86.3 Warrants – $ 0.50 10.7 Warrants – $1.00 5.0 Broker options/warrants 3.4 Stock options 6.8 Total Fully Diluted Shares 112.3

PROJECT TIMELINE

35 ¡

Stage Activity 2013 2014 2015 2016 2017

Confirmation Drilling

Areas 1 & 2

Process Development

Metallurgical Testing and Pilot Plant (process

• ptimization)

Permitting

Project Permitting

Financing

Capital Raise

Engineering Studies

Prefeasibility Feasibility/Mine Design

Implementation

Basic Engineering Procurement Detailed Engineering Construction

Production

Commissioning

MANAGEMENT AND BOARD CURRENTLY OWN 4%

STRONG BOARD WITH DIVERSE SKILLS AND LOCAL EXPERIENCE

Rahoul Sharan, Chairman

Chartered Accountant with over 30 years diversified mining experience Former Chairman and CEO of Uranium Power Corporation

Navin Dave

Chairman and CEO of Stat-Ops International Former Managing Partner, KPMG LLP

Robert C. Gross

Former Chief of Staff to Utah Governor Former Senior Advisor, Coalition Authority of Iraq Former Chairman and President of First Interstate Bank Former President and CEO of Blue Healthcare Bank

Rocco Rossi

Experienced business strategist and public company director Former President and COO of MGI Software Corp.

Phil Williams

Director, Investment Banking of Dundee Capital Markets Inc. Former VP, Business Development Pinetree Capital and Mega Uranium Ltd.

Stephen Harapiak

President and COO Victory Nickel Inc. Former CEO, Potash Corp.

36

Guy Bentinck

President & CEO

SKILLED SERVICE PROVIDERS

Hazen Research:

• Pilot plant
• Metallurgical testing

Norwest:

• Resource estimates
• Permitting
• Prefeasibility study
• Feasibility study
• Water rights

Stoel Rives:

• Permitting
• Water rights

ICPE

• Engineering

37

COMPETITIVE ADVANTAGES

Large mineral deposit containing premium-quality potash and bauxite material Strategically located in a mining friendly jurisdiction with established infrastructure nearby State-owned land allows for an efficient permitting process Historical work expedites project development Lower risk surface mining deposit; expected lowest cost producer 30 year mine life, with upside potential PEA completed: $1.3 billion NPV at 10%; 21.3% after tax IRR; excludes bauxite material revenue

38

CONTACT US

E-mail: info@potashridge.com Phone: 416.362.8640 ext 101 Website: www.potashridge.com Head office: 3 Church Street, Suite 600 Toronto, Ontario M5E 1M2

39 ¡