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 ¡ September ¡2014 ¡

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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COMPETITIVE ADVANTAGES

Premium potash product with supply deficit that cannot be met by existing production processes; 180% premium over MOP Current SOP consumption is ~5 million tpa, demand potential is 10-12 million tpa Large surface mineral deposit - low cost and low risk mining, with easy access to ore for test work. Known process – existing production facility in Azerbaijan ¡ Reserves supporting 645,000 tons of SOP production per annum over 40 year mine life plus two additional areas of potential resources Established infrastructure nearby, designated development lands and efficient state permitting; no federal permits for plant site Water rights, large mine operations and groundwater discharge permits all secured. Only major permit remaining (air permit) will be completed in parallel with feasibility study. PFS completed November 2013: $1.0 billion NPV at 10%; 20.5% after tax IRR; excludes potential revenue from alumina rich material Mining friendly jurisdiction with strong state and municipal government support. MOUs under negotiation for $641m of support infrastructure, project financing expression

• f support received from Export Development Canada

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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 4.8 million tonnes sold in 20131 50 million tonnes sold in 20131 Improves yield, quality, taste and enhances shelf life1 Crop quality/yield diminish as chloride builds up1

1 CRU 2013

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Chemical makeup assumes 92.5% K2SO4 and 95% KCl product * Within target markets

Consumption of SOP restricted by limited production capacity, with little expansion potential SOP share of potash market: Current: 5 Mt Potential: 10-12 Mt* Trend toward high nutrient fertilizers Trend towards pricing of SOP based on incremental revenue through yield/quantity improvements vs. premiums over MOP

SOP – A DISTINCT & VALUABLE POTASH PRODUCT

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

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SOP MARKET DYNAMICS

1CRU 2013

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Europe 24% N. America 7% C & S America 6% China 49% Africa 5% RoW 9%

SOP Consumption by Region ¡

Region Process ¡ Method World ¡ Capacity Process ¡Inputs Products Avg ¡Cost ¡/ ¡ Ton1 Future ¡ Outlook China/ ¡ Europe ¡ ¡ Mannheim 2.3Mt ¡ 43%

• MOP
• Sulfuric ¡Acid
• Energy
• SOP
• Hydrochloric ¡Acid

¡ ¡ $453 ¡ High ¡Cost/ by-­‑product ¡ limits ¡ growth Europe MOP ¡and ¡ Kieserite 1.2Mt ¡ 22%

• MOP
• Kieserite
• Energy
• SOP
• Magnesium ¡ ¡

Chloride ¡ ¡ $440 ¡ No ¡ addiQonal ¡ deposits China/ ¡ USA/ ¡ Chile Salt ¡Lakes 1.9Mt ¡ 35%

• Lake ¡Brines
• Energy

¡ ¡

• SOP
• Magnesium ¡

Chloride

• Sodium ¡Chloride

$381 ¡ No ¡ addiQonal ¡ suitable ¡ lakes

Existing SOP Production by Process ¡ New sources of SOP from these existing processes are unlikely due to lack of primary sources and difficulties surrounding secondary source production. ¡ CRU predicts SOP consumption

• f 9,500,000 tonnes per annum

by 2019 – where will this production come from? ¡

SOP PREMIUM PRICE TRENDS

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U.S. $/tonne

1 ¡Compass ¡Minerals ¡Q2 ¡2014 ¡Report, ¡2 ¡Potash ¡Corp ¡Q2 ¡2014 ¡Report ¡

Potash Corp Q2/14 realized price $263/tonne2

¡-­‑ ¡ ¡ ¡ ¡ ¡100.0 ¡ ¡ ¡200.0 ¡ ¡ ¡300.0 ¡ ¡ ¡400.0 ¡ ¡ ¡500.0 ¡ ¡ ¡600.0 ¡ ¡ ¡700.0 ¡ ¡ ¡800.0 ¡ ¡ Q1 ¡ Q2 ¡ Q3 ¡ Q4 ¡ Q1 ¡ Q2 ¡ Q3 ¡ Q4 ¡ Q1 ¡ Q2 ¡ 2012 ¡ 2013 ¡ 2014 ¡ POT ¡-­‑ ¡North ¡America ¡(MOP) ¡ CMP ¡-­‑ ¡(SOP) ¡

Recent quotes from blenders in Uberaba, Brazil $750/tonne Compass Q2/14 realized price $738/tonne1

CURRENT PREMIUM 180% FOR SOP IN US

SIGNIFICANT GROWTH POTENTIAL EASY ACCESS TO LOCAL MARKETS

SOP MARKET TARGETS

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1 CRU 2013 2 From PRK Study August 2013, based on crops that are best suited for SOP

United States

SOP consumption: 385,000 tons1 Potential consumption: 920,000 tons2 Large scale production of chloride intolerant crops such as nuts in California and citrus fruits in Florida drive a large part of US SOP demand. Consumption

• f these crops continues – e.g. Almond crops have grown by 7% per year

since the mid 1990s.

Brazil

SOP consumption: 42,000 tons per year2 (0.4% of total potash consumption) Potential consumption: 2.1 million tons2 Brazil is the world’s largest grower of coffee, soybeans and citrus fruits, all SOP crops. Low consumption is entirely due to lack of SOP availability.

China

SOP consumption 2.5 million tons per year1 Potential consumption: 5.5 million tons per year2 China produces close to half of the world’s fruits and vegetables, and nearly

• ne-third of the world’s tobacco and tea. SOP consumption almost doubled

between 2007 and 20121, with large untapped growth potential.

THE BLAWN MOUNTAIN PROJECT

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ANTICIPATED MINE RAMP-UP 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 tons of SOP per annum Historical work expedites project development Mineral deposit to be surface mined Proven process backed by extensive metallurgical testing

ORE TEST PIT

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ALMOST 100 YEARS OF POTASH PRODUCTION

UTAH: AN ATTRACTIVE MINING JURISDICTION

1Forbes Magazine, December, 2012 2Fraser Institute, April, 2013

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 Leasehold and royalty agreements negotiated No known adverse environmental or social issues 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

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ADVANCED PERMITTING STAGE

The following table identifies the various permits and approvals that the Corporation has or still needs to obtain prior to start-up of the mine and processing plant:

Major&Required&Permits&

Major&Permits&or&Approvals& 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+ Water+Appropriations+ Utah+Office+of+State+Engineer+ May,+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+Permit+ Utah+Division+of+Air+Quality+ +

PREVIOUS WORK ACCELERATES PROJECT DEVELOPMENT

EXTENSIVE DEVELOPMENT COMPLETED IN 1970’s

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• Approximately $25 million spent (~$100 million

in today’s dollars).

• Programs included:

Drilling, Resource estimate, Feasibility Study, mine plan, Engineering, Permitting and 3-year operation of a pilot plant processing up to 11 tons per day.

• Alumina originally primary product;

SOP was by-product

• Project ultimately shelved due to poor

economic conditions in early 1980s

• Potash Ridge owns all historical data

SIMPLE PROVEN FLOWSHEET

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

• Plant currently operating in Azerbaijan. (Ganja Refinery)
• Flowsheet similar to commercial-scale production

processes historically used in US and Australia.

RECENT EXTENSIVE TEST WORK CONFIRMS FLOWSHEET

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

Crushing & Grinding

PREFEASIBILITY STUDY – SUMMARY

• 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;

• 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

1Inclusive 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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Economic Indicators

NPV (after tax, at 10%) $1.0 billion IRR (after tax) 20.5% Payback period (from commencement of operations) 5 years Average annual SOP production 645,000 tons Average annual sulphuric acid production 1,440,000 tons SOP price (average) $649/ton Sulphuric acid price (average) $135/ton Project life 40 years Initial capital cost (including 15% contingency) $1,124 million Operating cost (excluding royalties) $173/ton SOP

The economic evaluation is based on the following assumptions:

• Site construction commences mid

2016;

• 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%.

SOP CAPITAL COST BREAKDOWN1

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CAPITAL ¡COST: ¡$1.124 ¡billion ¡

¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡(15% ¡conKngency) ¡

14% ¡ ¡ ¡SOP ¡Leaching, ¡ ¡ CrystallizaQon ¡ ¡ and ¡Drying ¡ 42% ¡ ¡ CalcinaQon ¡ 13% ¡ ¡ Crushing ¡& ¡ Grinding ¡ 31% ¡ ¡ ¡ ConQngency, ¡ Indirects ¡and ¡ Infrastructure ¡

1 Excludes utilities and other infrastructure

not incurred by Potash Ridge ($641 million): Build-own-operate arrangements under negotiation. Acid Plant ($280 million)* Natural Gas Line ($83 million) Water Treatment Plant ($60 million)* Expect to access government funding programs Rail Spur ($76 million) Access road ($53 million) To be incurred by Mine Contractor Mine Capital ($89 million)

*MOU ¡signed ¡with ¡Tetra ¡Tech ¡contemplates ¡their ¡parQcipaQon ¡to ¡build, ¡own ¡and ¡operate ¡these ¡assets ¡

OPERATING COSTS: $173/TON OF SOP

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7% ¡ ¡ Other ¡ ¡ ($14M) ¡ 14% ¡ RoyalQes ¡ ($33M) ¡

Excludes ¡credit ¡for ¡potenQal ¡alumina ¡rich ¡material ¡revenue. ¡ Includes ¡15% ¡conQngency ¡(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

Potash Ridge Salt Lakes MOP/ Sulphate Salts Mannheim Process

Cash Production Costs

Avg Cost/Ton

$381 $440 $453 $173

Potash Ridge

Expected In Production

1 CRU 2013

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1 1

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 ¡

STRONG MARKET FOR SULPHURIC ACID

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US market is world’s largest importer of sulphuric acid, mostly from Canada and through the Gulf Coast (from Europe and Mexico) Current imports of 3 million tonnes per annum; expected to increase to 5 million tonnes per annum by 2018

• Increase in market demand from mine expansions, new development and

increases in industrial use

• Imports from Canada and Mexico expected to decline due to lower production
• f smelter acid (Canada) and higher domestic consumption (Mexico)

Consumers looking for stable supply for existing operations and to satisfy growth plans Mountain West US market approximately 5.1 million tonnes per annum and expected to grow to 6.5 million tonnes by 2018. MOU in place for sale of approximately 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 potential revenue from the sale of approximately 1.2

million tonnes of this alumina rich material

• Landed cost of bauxite in China is approximately $85 per tonne

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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) 5,556 11,128 10,815 9,051 Port Vancouver Conakry Aratu Jamaica

MILESTONES

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Preliminary Economic Assessment issued November, 2012 Metallurgical test program initiated January, 2012 Pilot Plant Test work initiated & SOP from test work produced May, 2013 Prefeasibility Study supporting 40-year mine life issued December, 2013 Large Mining Permit Application submitted December, 2013 Water Rights Granted May, 2014 Ground Water Permit approved July, 2014 Large Mining Permit approved August, 2014 Strategic Partnership with Tetra Tech announced August, 2014 Air Quality Permit 1H 2016 Issue Feasibility Study 2H 2015 Complete metallurgical test program 2H 2015 Receive final permits 1H 2016 Mine construction start up Mid 2016 Ramp up of mining Mid 2017

Note: Timelines are based on obtaining sufficient financing to advance Feasibility Study

Expected Achieved

CAPITAL STRUCTURE

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Millions Common Shares 81.7 Non-voting Common Shares 5.1 Total Shares Outstanding 86.8 Warrants – $ 0.50

(1)

10.7 Warrants – $1.00

(2)

5.1 Broker options/warrants 3.4 Stock options

(3)

7.2 Total Fully Diluted Shares 113.2

As at June 30, 2014

• 1. Expiry occurs on November 27, 2014
• 2. Expiry occurs on December 5, 2014
• 3. Stock options have exercise prices varying between $0.14 and $1.00. Expiry dates occur between 2021 and 2024

INSIDERS HOLD 5%, 10% FULLY DILUTED

COMPETITIVE ADVANTAGES

Premium potash product with supply deficit that cannot be met by existing production processes; 180% premium over MOP Current SOP consumption is ~5 million tpa, demand potential is 10-12 million tpa Large surface mineral deposit - low cost and low risk mining, with easy access to

• re for test work. Known process – existing production facility in Azerbaijan ¡

Reserves supporting 645,000 tons of SOP production per annum over 40 year mine life plus two additional areas of potential resources Established infrastructure nearby, designated development lands and efficient state permitting; no federal permits for plant site Water rights, large mine operations and groundwater discharge permits all secured. Only major permit remaining (air permit) will be completed in parallel with feasibility study. PFS completed November 2013: $1.0 billion NPV at 10%; 20.5% after tax IRR; excludes potential revenue from alumina rich material Mining friendly jurisdiction with strong state and municipal government support. MOUs under negotiation for $641m of support infrastructure, project financing expression of support received from Export Development Canada

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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