Premium Potash Project Driven by a Proven Management Team TSX : - - PowerPoint PPT Presentation

Premium Potash Project Driven by a Proven Management Team

TSX ¡: ¡PRK ¡ OTCQX ¡: ¡POTRF ¡ November ¡2013 ¡

FORWARD LOOKING STATEMENTS

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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 27, 2013, 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.

Focused on near term sulphate of potash (“SOP”) production at its Blawn Mountain property in Utah

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SOP 645,000 tons average per annum 40 year Project Life backed by reserves

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

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Laura Nelson VP, Government and Regulatory Affairs

Extensive experience in government relations, permitting and power planning, including the successful permitting a large mine in Utah Red Leaf Resources, Utah Government ¡

COMPETITIVE ADVANTAGES

Large mineral deposit containing premium-quality potash and alumina rich material Average of 770,000 tons SOP per annum during first 10 years, 645,000 tons per annum over life

• f mine ¡

40 year mine life, with mineral reserves of 426 million tons of ore PFS completed November 2013: $1.0 billion NPV at 10%; 20.5% after tax IRR; excludes potential revenue from alumina rich material Historical work expedites project development; proven production process Mining friendly jurisdiction, established infrastructure nearby, designated development lands and efficient state permitting Lower risk surface mining deposit; expected low cost producer

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POTASH OVERVIEW

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

POTASH WORLD DEMAND +5% EXPECTED ANNUAL DEMAND TO 2016; SOP HIGHER GROWTH POTENTIAL

POTASH: ESSENTIAL TO THE WORLD’S FOOD SUPPLY

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POTASSIUM AND SULPHUR ARE ESSENTIAL NUTRIENTS

SOP: PREMIUM FERTILIZER

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

50% K2O Equivalent 60% K2O Equivalent 17% S 0% S <1.0% Cl 45% Cl 5.4 million tons sold in 20111 50 million tons sold in 20112 Improves yield, quality, taste and enhances shelf life2 Crop quality/yield diminish as chloride builds up2

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Chemical makeup assumes 92.5% K2SO4 and 95% KCl product

SOP – A DISTINCT & VALUABLE POTASH PRODUCT

Fruits Vegetables Nuts Horticultural Plants Tobacco Tea Dry soils Salty soil Especially valued for chloride sensitive crops, SOP improves yields on high value crops such as:

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¡-­‑ ¡ ¡ ¡ ¡ ¡200.0 ¡ ¡ ¡400.0 ¡ ¡ ¡600.0 ¡ ¡ ¡800.0 ¡ ¡ ¡1,000.0 ¡ ¡ ¡1,200.0 ¡ ¡ Q1 ¡ Q2 ¡ Q3 ¡ Q4 ¡ Q1 ¡ Q2 ¡ Q3 ¡ Q4 ¡ Q1 ¡ Q2 ¡ Q3 ¡ Q4 ¡ Q1 ¡ Q2 ¡ Q3 ¡ Q4 ¡ Q1 ¡ Q2 ¡ Q3 ¡ Q4 ¡ Q1 ¡ Q2 ¡ Q3 ¡ Q4 ¡ Q1 ¡ Q2 ¡ Q3 ¡ 2007 ¡ 2008 ¡ 2009 ¡ 2010 ¡ 2011 ¡ 2012 ¡ 2013 ¡

Average ¡Realized ¡MOP ¡and ¡SOP ¡Price ¡in ¡North ¡America ¡

POT ¡-­‑ ¡North ¡America ¡(MOP) ¡ CMP ¡-­‑ ¡(SOP) ¡

CURRENT PREMIUM 90% FOR SOP IN US

SOP PREMIUM PRICE TRENDS

U.S. $/ton

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1 ¡From ¡Verde ¡Potash ¡PresentaPon, ¡November ¡2013, ¡2 ¡From ¡Compass ¡Minerals ¡Q3 ¡2013 ¡Report, ¡3 ¡From ¡Potash ¡Corp ¡Q3 ¡2013 ¡Report ¡

Compass Q3/13 realized price $712/ton2 Potash Corp Q3/13 realized price $360/ton3 Recent quotes from blenders in Uberaba, Brazil $1,110/ton1

SOP MARKET CHARACTERISTICS

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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 EASY ACCESS TO LOCAL MARKETS

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

Trend towards pricing of SOP based on incremental revenue through yield/quantity improvements vs. premiums over MOP

United States

SOP consumption: 385,000 tons Potential consumption 920,000 tons2

China & India

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

Brazil

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

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THE BLAWN MOUNTAIN PROJECT

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ANTICIPATED INITIAL PRODUCTION IN 2017

PROJECT OVERVIEW

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Large alunite deposit, which is expected to be processed into SOP, and possible alumina rich material Average 645,000 SOP tons per annum Historical work expedites project development Mineral deposit to be surface mined Proven process backed by extensive metallurgical testing

ALMOST 100 YEARS OF POTASH PRODUCTION

UTAH: AN ATTRACTIVE MINING JURISDICTION

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

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OUR LAND ADVANTAGE

State-owned land designated for development Efficient permitting process Leasehold and royalty agreements negotiated No known adverse environmental or social issues Sufficient water nearby – rights application made Roads, rail, transmission and natural gas nearby Construction materials, equipment suppliers and skilled labour force

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MUNICIPAL AND STATE SUPPORT OF PROJECT

PREVIOUS WORK ACCELERATES PROJECT DEVELOPMENT

EXTENSIVE DEVELOPMENT ON BLAWN MOUNTAIN COMPLETED IN 1970’s

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• 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 up to 11 tons/day

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

PREFEASIBILITY STUDY – KEY HIGHLIGHTS

• Surface mine with conventional crushing, roasting, leaching and crystallization processes;
• Life of mine average of 645,000 tons of SOP per annum;
• Proven & Probable mineral reserves of 426 million tons;
• Reserves support 40 year mine life, with potential to increase life of operations through

exploration of two additional zones of known mineralization;

• Project after tax Net Present Value (“NPV”) of $1.0 billion using a 10% discount rate:
• Total sales of 26 million tons of SOP over life of mine;
• Unlevered after tax internal rate of return (“IRR”) of 20.5%; payback period of 5 years

after commencement of operations;

• Installed SOP capital cost of $1.1 billion;
• Strong cash flow generation with cash flow from operations of $234 million per annum

excluding the two year ramp up period;

• Approximately 28% of direct capital costs are supported by packaged quotes;
• Expect to be a low cost producer: $173 per ton of SOP (inclusive of by-product acid

revenues and exclusive of royalties); no credit assumed for potential revenue from the sale of alumina rich material.

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PREFEASIBILITY – ECONOMIC SUMMARY

Economic ¡Indicators

NPV ¡(aRer ¡tax, ¡at ¡10%) ¡

$1.0 ¡billion ¡ IRR ¡(aRer ¡tax) ¡ 20.5% ¡ Payback ¡period ¡(from ¡commencement ¡of ¡operaPons) ¡ 5 ¡years ¡ Average ¡annual ¡SOP ¡producPon ¡ 645,000 ¡tons ¡ Average ¡annual ¡sulphuric ¡acid ¡producPon ¡ 1,440,000 ¡tons ¡ SOP ¡price ¡(average) ¡ $649/ton ¡ Sulphuric ¡acid ¡price ¡(average) ¡ $135/ton ¡ Project ¡life ¡ 40 ¡years ¡ IniPal ¡capital ¡cost ¡(including ¡15% ¡conPngency) ¡ $1,124 ¡million ¡ OperaPng ¡cost ¡(excluding ¡royalPes) ¡ $173/ton ¡SOP ¡ 19

The economic evaluation is based

• n the following assumptions:
• Site construction commences

late 2015;

• Production ramp-up over 2

years (2017-2018), reaching full production in 2019;

• SOP pricing from CRU forecast

below current North American SOP prices;

• Average tax rate of 35%.

SIMPLE PROVEN FLOWSHEET

Alunite Calcination Water Leach Alumina Rich Material SOP Solution Crystallizing Drying, Compacting & Sizing SOP SO2 Acid Plant Sulphuric Acid 20

Flowsheet similar to historical production processes

RECENT EXTENSIVE TEST WORK CONFIRMS FLOWSHEET

• Plant to process 10.4 million tons per annum
• Metallurgical testing on-going for Feasibility Study

Crushing & Grinding

ORE TEST PIT

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PREFEASIBILITY STUDY – RESERVES ESTABLISHED

Drilling to date has focused

• nly on two of the four areas

within the 15,400 acre land parcel Supports 40 years of

• perations

Reserves demonstrate the economic and technical viability of the Project

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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 Mineral Reserves by Category November 6, 2013 ¡

SOP CAPITAL COST BREAKDOWN1

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CAPITAL ¡COST: ¡$1.124 ¡billion ¡

¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡(15% ¡con@ngency) ¡

14% ¡ ¡ ¡SOP ¡Leaching, ¡ ¡ CrystallizaPon ¡ ¡ and ¡Drying ¡ 42% ¡ ¡ CalcinaPon ¡ 13% ¡ ¡ Crushing ¡& ¡ Grinding ¡ 31% ¡ ¡ ¡ ConPngency, ¡ Indirects ¡and ¡ Infrastructure ¡

Acid Plant ($280 million) Mine Capital ($89 million) Build-own-operate arrangements under negotiation. Natural Gas Line ($83 million) Rail Spur ($76 million) Water Treatment Plant ($60 million) Access road ($53 million)

¡

OPERATING COSTS: $173/TON OF SOP

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

Excludes ¡potenPal ¡alumina ¡rich ¡material ¡credit. ¡ Includes ¡15% ¡conPngency ¡(excluding ¡non-­‑energy ¡and ¡labour ¡costs). ¡ ¡ ¡ ¡

Total Cash Production Costs Annual Average Cost($)/Ton SOP (Constant 2013 $US)

Direct Plant and Mine Cash Production Cost $414 Credit for Value of Acid $(302) Subtotal of Direct Plant and Mine Cash Production Cost $112 Site G&A, Property Taxes & Corporate Overhead $27 3rd Party Facility Charges $34 Total before royalty $173 Royalties $45 Total Cash Production Cost $218

EXPECTED TO BE LOWEST COST SOP PRODUCER

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Alunite Leach Salt Lakes MOP/ Sulphate Salts Mannheim Process

Process Method World Capacity Process Inputs Products Avg Cost / Ton Mannheim 60% ! MOP ! Sulfuric Acid ! Energy ! SOP ! HCI $495 MOP and Kieserite 25% ! MOP ! Kieserite ! Energy ! SOP ! Magnesium Chloride $347 Salt Lakes 15% ! Lake Brines ! Energy ! SOP ! Magnesium Chloride ! NaCI $340 Alunite Leach – ! Alunite ! Energy ! SOP ! H2SO4 $173

Cash Cost by Production Method

Avg Cost/Ton

Process Method and Cost Comparisons

POTASH RIDGE

Expected In Production

$340 $347 $495 $1731

BY-PRODUCT OVERVIEW

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SULPHURIC ACID

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Driven by local US Market Mountain West US market approximately 5.6 million tons per annum Expected increase in this market from mine expansions and new mine development Potash Ridge will provide stable supply to consumers MOU in place for 20% of acid production

• Leaching process leaves alumina rich material which, with beneficiation, may be used as

a substitute to bauxite as a feedstock into a Bayer alumina production facility.

• Metallurgical testing confirmed the alumina in this material is soluble in high temperature

caustic solutions

• May also be acceptable as a raw material feed for low temperature refineries
• Further testing is underway to determine whether the alumina rich material could meet

specifications for feed material in the production of ceramic proppants in North America.

• PFS economics do not include revenue from the sale of alumina rich material

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UPSIDE POTENTIAL FROM LEACH RESIDUE

SOURCES OF SMELTER FEED TO CHINA Blawn Mountain, Utah Boke, Guinea Trombetas, Brazil Kingston, Jamaica Distance to Shandong Province, China (nm) 5,744 11,128 10,815 9,051 Port Long Beach Conakry Aratu Jamaica

MILESTONES

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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 & produce SOP from test work

a

Complete baseline environmental surveys

a

Issue Prefeasibility Study supporting 40-year mine life (pending filing) Complete metallurgical test program Submit Large Mining Permit Application Issue Feasibility Study Final permits obtained

End 2015 End 2013 Mid-2015 Mid-2014 to End 2015 EXPECTED

Construction Start up Ramp up

End 2015 2017

CAPITAL STRUCTURE

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Millions Common Shares 81.7 Non-voting Common Shares 5.0 Total Shares Outstanding 86.7 Warrants – $ 0.50 10.7 Warrants – $1.00 5.0 Broker options/warrants 3.4 Stock options 6.3 Total Fully Diluted Shares 112.1

As at September 30, 2013

INSIDERS HOLD 5%, 10% FULLY DILUTED

COMPETITIVE ADVANTAGES

Large mineral deposit containing premium-quality potash and alumina rich material Average of 770,000 tons SOP per annum during first 10 years, 645,000 tons per annum life of mine ¡ 40 year mine life, with mineral reserves of 426 million tons of ore PFS completed November 2013: $1.0 billion NPV at 10%; 20.5% after tax IRR; excludes potential revenue from alumina rich material Historical work expedites project development; proven production process Mining friendly jurisdiction, established infrastructure nearby, state lands and efficient permitting Lower risk surface mining deposit; expected low cost producer

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CONTACT US

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Toronto office: 3 Church Street, Suite 600 Toronto, Ontario M5E 1M2 Phone: 416-362-8640 ext 101 Salt Lake City office: 170 S. Main Street, Suite 500 Salt Lake City, UT 80101 Phone: 801-433-6027

www.potashridge.com

info@potashridge.com

www.potashridge.com

Qualified Persons Each of the Qualified Persons (“QPs”) shown below has reviewed and approved the scientific and technical disclosures contained in the PFS and in this release and are independent of the company. QPs have verified the data including sampling, analytical and test data underlying the information or opinions contained herein. The QPs responsible are:

Norwest Corporation Jason Todd – Mining and Financial Steven Kerr – Geology Lawrence Henchel – Mineral Resources ICPE Robert Nash – Engineering Ravindra Nath – Engineering