Investor Presenta,on JUNE 2016
FORWARD LOOKING STATEMENTS 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 of 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. 2
ABOUT US Potash Ridge is a near term producer of premium fer,lizer with world class development assets in Utah and Quebec. The Company is uniquely posi,oned to take advantage of strong markets for Sulphate of Potash. 3 TSX:PRK
HIGHLIGHTS Sulphate of Blawn Potash (SOP): Valleyfield Strategy Mountain Premium Potash/ (Quebec) (Utah) Significant Supply Deficit • Up to 585,000 tpy of SOP; • Domes,c selling price 3x • Become the first SOP • 40,000 tpy of SOP; poten,al to phase-in regular potash (“MOP”) producer using CDN$48.8 million capex produc,on to reduce front end Mannheim process in • Global consump,on is ~5 • 34.7% aoer tax IRR capex North America and, million tonnes per year (“tpy”) • Proven process used • Prefeasibility complete: longer term, the • Demand poten,al is throughout Europe and Asia 20.5% aoer tax IRR largest North American 10 million tpy SOP producer • Produc,on scheduled to • Large surface mineral deposit; • Exis,ng producers unable to over 40-year reserve life commence in Q4 2017 • Major permits and water expand to meet supply deficit • Strategic loca,on near by-product rights secured; infrastructure hydrochloric acid demand nearby • Expansion poten,al at site • Poten,al upside from alumina • Poten,al for over $14m in residue in tailings average annual cash flows (Y1-Y5) • Poten,al for over US$250M in average annual cash flow 4 TSX:PRK
SOP: SUPERIOR PRODUCT WITH ATTRACTIVE MARKET DYNAMICS SOP (K 2 SO 4 ) MOP (KCI) SOP: A top performing commodity in last 5 years US$178/tonne in US$709/tonne in NA (1) North America (2) SOP 900.0 MOP Global market demand 800.0 Global market 55 million tpy 5 million tpy, poten,al market 700.0 of 10 million tpy Market is in over supply, with 600.0 Fundamental supply deficit – idle capacity and mul,ple limited ability to grow projects in pipeline 500.0 produc,on using exis,ng processes 400.0 Contains chloride – no nutrient value; in many instances Low chloride, high sulphur – 300.0 detrimental to plants providing benefits to crops not 200.0 available with MOP 100.0 Improves yield, taste, Chloride can leach into appearance and shelf life; ideal groundwater or build-up in arid - for salty or sandy soils or arid soil condi,ons, impac,ng Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2013 2014 2015 2016 climates yields and crop quality POT - North America (MOP) CMP - (SOP) CMP Guidance - (SOP) Significant benefits over MOP Primarily for corn and for fruits, vegetables, nuts, grain crops that can SERVING AN UNDERSERVED MARKET potatoes, tobacco – many withstand chloride other high value crops 1 Compass Minerals Q1 2016 Report, 2 Potash Corp Q1 2016 Report 5 TSX:PRK
GLOBAL SOP PRODUCTION AND CONSUMPTION CONSUMPTION ROW PRODUCTION 500k tpy EUROPE 1,850k tpy RUSSIA 120k tpy EUROPE NORTH 1,200k tpy AMERICA CHINA 400k tpy 2,500k tpy SE ASIA MIDDLE EAST 250k tpy 100k tpy USA CHINA 300k tpy 2,500k tpy AFRICA 250k tpy SOUTH AMERICA 300k tpy CHILE 150k tpy Regional consumpIon driven by access to product due to supply constraints Source: CRU 2013 6
DIVERSIFIED SOP PROJECTS VALLEYFIELD, QUEBEC Bring ini,al 40,000 tpy SOP into produc,on in Q4 2017 Finalize SOP ouake and other commercial arrangements Complete permitng and break ground in 2016 Leverage management teams’ strong project development and financing exper,se Develop EPC or similar construc,on arrangements BLAWN MOUNTAIN, UTAH to minimize execu,on risk Poten,al for up to 585,000 tpy SOP produc,on Evaluate scaling with targeted first produc,on in late 2019 7 TSX:PRK
Quebec Valleyfield Project TSX:PRK
VALLEYFIELD PROJECT (QUEBEC) Located near hydrochloric acid customers MOU signed for o9ake of ini<al produc<on Phase 1 - Economic Summary (CDN$) Discussions underway for second phase of hydrochloric acid o9ake IniXal capital cost $48.8 million Engineering study completed by SNC on March 29, 2016 Plan to build under EPC contract IRR (unlevered aZer tax) 34.7% Phase 1 - 40,000 tpy of SOP CDN$14.1 million average annual cash flow for first 5 years NPV (aZer tax at 10%) $74.0 million Poten,al to build addi,onal units ( scalable in increments of 10,000 tpy) SOP price/tonne $900 (U.S.$700 ) Permitng expected to take three months Strong interest in SOP ouake MOP price/tonne $350 (U.S.$178) Awrac,ve financing support in Quebec Expect to start construc,on in late 2016: 12-month construc<on schedule Opex/tonne $460 9 TSX:PRK
VALLEYFIELD: STRATEGICALLY LOCATED Located in industrial area near Montreal, Quebec 1 2 Property secured in industrial zone Strong local support 3 4 Rail access at site Port within 2 km, allowing access into key U.S. markets 5 Within 2 km of sulphuric acid supplier – discussions 6 ini,ated with suppliers Located near hydrochloric acid customers 7 Quebec Government highly suppor,ve of new investments 8 that create employment (including providing financial support) 10 TSX:PRK
PROVEN MANNHEIM PROCESS Converts MOP to SOP POTASSIUM CHLORIDE (MOP) Proven produc,on process (150 year history) , POTASSIUM SULPHATE with numerous opera,ng (SOP) facili,es in Europe and China (about 40% of current SOP MANNHEIM SULPHURIC produc<on is from Mannheim) ACID FURNACE HYDRO- High quality, consistent CHLORIC ACID produc,on process (HCL) Scale allows for construc,on ENERGY ,me of 12-months 11 TSXV:PRK
VALLEYFIELD NEXT STEPS 1 2 3 4 5 6 Engineering Study Permieng Acid Commercial SOP Ofake Financing ConstrucXon Arrangements Completed by SNC Expected to Mul,ple expressions Discussions ongoing Expect to commence on March 29, 2016 take three months of interest in ouake. with preliminary in late 2016 Plan to have a third engineering study party build, own, Finalize EPC Nego,a,ons set An,cipate 12-month complete operate hydrochloric arrangements to commence construc,on ,metable acid and sulphuric now engineering Quebec government acid infrastructure study complete financial support programs available Third party will also be responsible for acid ouake and logis,cs 12 TSX:PRK
Utah Blawn Mountain Project TSX:PRK
BLAWN MOUNTAIN PROJECT (UTAH) Surface mining with adjacent processing facility PFS Economic Summary (US$) Known process to convert alunite ore into SOP, by-product sulphuric acid and an alumina-rich material IniXal capital cost $1,124 million Prefeasibility Study completed by Norwest in December 2013 IRR (unlevered aZer tax) 20.5% P+P reserves support 40 year mine life, Poten<al to increase life of opera<ons through addi<onal explora<on NPV (aZer tax at 10%) $1.0 billion Project permiwed; water rights secured MOU nego,ated with third party for ouake of sulphuric acid SOP price/ton $649 Engineering study will assess the poten,al to phase project to significantly reduce up-front capital cost Opex/ton (1) $173 Poten,al to fast track next stage of development (1) Net of acid credit and excluding royal<es. 14 TSX:PRK
BLAWN MOUNTAIN PROJECT (UTAH) UTAH 1 2 3 4 5 Area 2 Mining Zone Processing Plant Loca,on Access Road Area 1 Mining Zone Ore Test Pit An Awrac,ve Place for Mining 4 5 2 3 Major resource producing state • 1 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 15 TSX:PRK
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