Premium Potash Project Driven by a Proven Management Team TSX ¡: ¡PRK ¡ OTCQX ¡: ¡POTRF ¡ November ¡2013 ¡
FORWARD LOOKING STATEMENTS 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. 2
Focused on near term sulphate of potash (“SOP”) production at its Blawn Mountain property in Utah SOP 645,000 tons average per annum 40 year Project Life backed by reserves 3
EXPERIENCED AND PROVEN MANAGEMENT Guy Bentinck President & CEO Chartered Accountant; 20 years mining/resource experience Sherritt: CFO and SVP Capital Projects Ross Phillips Chief Operating Officer Jeff Hillis Chief Financial Officer 10 years experience in large resource and Chartered Accountant; energy sector projects 10 years mining sector finance, including CFO of several public mining companies Sherritt, Capital Power ¡ Iberian Minerals, Excellon, Falconbridge ¡ Paul Hampton VP, Project Laura Nelson VP, Government and Management Regulatory Affairs Geologist and Metallurgical Engineer; Extensive experience in government relations, permitting and power planning, including the ~30 years experience in design, construction, successful permitting a large mine in Utah start-up and management of mineral processing facilities Red Leaf Resources, Utah Government ¡ SNC, Washington Group, Outotec OVER 80 YEARS COMBINED EXPERIENCE 4
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 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, designated development lands and efficient state permitting Lower risk surface mining deposit; expected low cost producer 5
POTASH OVERVIEW 6
POTASH: ESSENTIAL TO THE WORLD’S FOOD SUPPLY 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 7
SOP: PREMIUM FERTILIZER Sulphate of Potash (SOP) Muriate of Potash (MOP) 50% K 2 O Equivalent 60% K 2 O Equivalent 17% S 0% S <1.0% Cl 45% Cl 5.4 million tons sold in 2011 1 50 million tons sold in 2011 2 Improves yield, quality, taste and Crop quality/yield diminish as enhances shelf life 2 chloride builds up 2 POTASSIUM AND SULPHUR ARE ESSENTIAL NUTRIENTS 8 1 Source: Fertecon 2 Source: CRU Chemical makeup assumes 92.5% K 2 SO 4 and 95% KCl product
SOP – A DISTINCT & VALUABLE POTASH PRODUCT Especially valued for chloride sensitive crops, SOP improves yields on high value crops such as: Fruits Tobacco Vegetables Tea Nuts Dry soils Horticultural Plants Salty soil 9
SOP PREMIUM PRICE TRENDS Average ¡Realized ¡MOP ¡and ¡SOP ¡Price ¡in ¡North ¡America ¡ U.S. $/ton ¡1,200.0 ¡ ¡ Recent quotes from blenders in Uberaba, Brazil $1,110/ton 1 ¡1,000.0 ¡ ¡ Compass Q3/13 realized price $712/ton 2 ¡800.0 ¡ ¡ ¡600.0 ¡ ¡ ¡400.0 ¡ ¡ Potash Corp Q3/13 realized price $360/ton 3 ¡200.0 ¡ ¡ POT ¡-‑ ¡North ¡America ¡(MOP) ¡ CMP ¡-‑ ¡(SOP) ¡ ¡-‑ ¡ ¡ ¡ ¡ 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 ¡ 1 ¡From ¡Verde ¡Potash ¡PresentaPon, ¡November ¡2013, ¡ 2 ¡From ¡Compass ¡Minerals ¡Q3 ¡2013 ¡Report, ¡ 3 ¡From ¡Potash ¡Corp ¡Q3 ¡2013 ¡Report ¡ CURRENT PREMIUM 90% FOR SOP IN US 10
SOP MARKET CHARACTERISTICS Global SOP Consumption and Commodity Price 1 ¡ 12,000 $1,000 $900 10,000 $800 Rest of Africa the World $700 Europe 4.6% 8,000 14.9% 23.3% $600 (US$/tonne) Tonnes (000s) 6,000 $500 N. America 8.6% $400 China 4,000 44.3% $300 $200 2,000 $100 Central and 0 $0 South America 2000 2004 2008 2012 2016 2020 4.3% Global SOP Consumption Historical Standard FOB NW Europe (US$/tonne SOP) Estimated Standard FOB NW Europe (US$/tonne SOP) 11 1 Source: Fertecon, CRU
SOP MARKET DYNAMICS SOP share of potash market: Limited production and premium Current: ~10% price has restricted demand Potential: >28% 1 Trend toward high Trend towards pricing of SOP based on incremental revenue through yield/quantity improvements vs. premiums over MOP nutrient fertilizers SOP consumption: 385,000 tons United States Potential consumption 920,000 tons 2 SOP consumption: China (pop. 1.3 billion): 1.9 million tons per year China & India India: (pop. 1.2 billion) 50,000 tons per year (<1% of country’s potash consumption) SOP consumption = 32,000 tons per year (0.4% of total potash Brazil consumption) Premium crops grown on 20% of planted land SIGNIFICANT GROWTH POTENTIAL EASY ACCESS TO LOCAL MARKETS 1 Based on crops that are best suited for SOP 12 2 From PRK Study August 2013
THE BLAWN MOUNTAIN PROJECT 13
PROJECT OVERVIEW 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 ANTICIPATED INITIAL PRODUCTION IN 2017 14
UTAH: AN ATTRACTIVE MINING JURISDICTION Major resource producer Existing potash production Best state for business 1 Top quartile mining jurisdiction 2 ALMOST 100 YEARS OF POTASH PRODUCTION 15 1 Forbes Magazine, December, 2012 2 Fraser Institute, April, 2013
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 MUNICIPAL AND STATE SUPPORT OF PROJECT 16
EXTENSIVE DEVELOPMENT ON BLAWN MOUNTAIN COMPLETED IN 1970’s Drilling Resource estimate Feasibility study Approx. $25 million spent Mine plan (~ $100 million in today’s dollars) 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 PREVIOUS WORK ACCELERATES PROJECT DEVELOPMENT 17
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