April 2015 - Presentation

Blawn&Mountain&Project&!

April&2015&

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 Corporation’s Annual Information Form dated March 5, 2015, 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.

Information in this presentation with respect to the NI 43-101 Prefeasibility Study (including mineral reserves) was prepared by Norwest Corporation. Steven B. Kerr, CPG, P.Geo., Lawrence D. Henchel, P.Geo., and Jason N. Todd, QP, of Norwest and Robert I. Nash, P.Eng., and L. Ravindra Nath, QP of Intermountain Consumer Professional Engineers, Inc. reviewed the NI 43-101 Prefeasibility Study Each of Steven B. Kerr, CPG, P.Geo., Lawrence D. Henchel, P.Geo., Jason N. Todd, QP, Robert I. Nash, P.Eng., and L. Ravindra Nath, QP, is a "Qualified Person" and independent of Potash Ridge within the meaning of NI 43-101.

Corporate&Objec:ve:&To&construct&and&operate&

a&processing&plant&to&produce&sulphate&of&

Potash&(“SOP”)&from&the&Blawn&Mountain&

property&in&Utah&&&

3

Blawn&Mountain&Project&!

4

Average&SOP&produc:on&of&680,000&tonnes&per&annum&

!

40&year&project&life&backed&by&reserves&Blawn&Mountain&Project&!

POTASH OVERVIEW

5!

POTASSIUM AND SULPHUR ARE ESSENTIAL NUTRIENTS

SULPHATE&OF&POTASH:&A&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!2013! 50!million!tonnes!sold!in!2013!

Improves!yield,!quality,!taste!and!enhances!shelf!life!

Crop!quality/yield!diminish!as!chloride!builds!up!

6

•  Sulphate!of!Potash!(“SOP”)!is!a!high!grade!potash!ferPlizer!containing!two!nutrients!(potassium!and!sulphur)!

•  Yield!benefits!of!applying!SOP!and!significant!supply!shortages!result!in!high!SOP!prices!

SOP&MARKET&DYNAMICS&

7

Europe 24%

N. America

7%

C & S America

6%

China 49%

Africa 5% RoW

9%

SOP&Consump:on&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/byYproduct!

limits!growth!

Europe! MOP!and!Kieserite!

1.2Mt!22%!

•  MOP!•  Kieserite!•  Energy!

•  SOP!•  Magnesium!!

Chloride!!!

$440!!No!

addiPonal!deposits!

China/!USA/!Chile!

Salt!Lakes! 1.9Mt!35%!

•  Lake!Brines!•  Energy!!!

•  SOP!•  Magnesium!

Chloride!•  Sodium!Chloride!

$381!!

No!addiPonal!suitable!lakes!

Exis:ng&SOP&Produc:on&by&Process&

New!producPon!of!SOP!from!these!exisPng!processes!are!unlikely!due!to!absence!of!new!salt!lakes!sources!and!dealing!with!hydrochloric!acid!from!MOP!conversion!

CRU!predicts!a!doubling!of!SOP!consumpPon!to!9,500,000!tonnes!per!annum!by!2019!–!uncertain!where!will!this!producPon!come!from!

SOP&PREMIUM&PRICE&TRENDS&

8 1!Compass!Minerals!Q3!2014!Report,!2!Potash!Corp!Q3!2014!Report!

TREND&TOWARDS&PRICING&OF&SOP&BASED&ON&INCREMENTAL&REVENUE&THROUGH&YIELD/QUANTITY&IMPROVEMENTS&VS.&PREMIUMS&OVER&MOP&

Recent quotes from blenders in Uberaba, Brazil $750/tonne

Compass Q4/14 realized price $750/tonne1

Potash Corp Q4/14 realized price $284/tonne2

PROJECT OVERVIEW

9!

HIGHLIGHTS&

10

SOP&is&a&premium&potash&with&a&supply&deficit&that&cannot&be&met&by&exis:ng&produc:on&processes&

•  Current!premium!over!regular!potash!around!160%!•  Current!worldwide!consumpPon!is!~5!million!tonnes!per!annum,!

demand!potenPal!is!10Y12!million!tonnes!per!annum!

Large&surface&mineral&deposit&&•  Low!cost!and!low!risk!mining,!with!easy!access!to!ore!!•  Over!40!year!reserve!life,!with!upside!potenPal!

Land&advantage&•  Mining!friendly!jurisdicPon!!•  Strong!state!and!municipal!government!support!•  Established!infrastructure!nearby!

All&major&permits&obtained&–&state&permidng&process&

•  Water!rights,!large!mine!operaPons,!groundwater!discharge!permits!all!secured!

•  Air!emission!standard!to!be!filed!as!part!of!feasibility!study!–!no!issues!anPcipated!

Known&produc:on&process&•  Historical!producPon!in!the!US!and!Australia!•  Mothballed!plant!in!in!Azerbaijan!–!may!be!restarted!

Commercial&arrangements&well&advanced&

•  MOUs!signed!for!3rd!parPes!to!build!support!infrastructure!•  MOU!signed!for!sulphuric!acid!ogake!•  IndicaPons!of!financial!support!from!Export!Development!

Canada,!Utah!Infrastructure!Fund!and!commercial!banks!

Addi:onal&revenue&from&byeproducts&

•  1.5!million!tonnes!per!annum!of!sulphuric!acid!•  3!million!tonnes!per!annum!of!alumina!material!(highYquality!

bauxite!subsPtute)!–!revenue!not!included!in!current!economics!

ALMOST 100 YEARS OF POTASH PRODUCTION

UTAH:&AN&ATTRACTIVE&MINING&JURISDICTION&

1Forbes!Magazine,!November,!2014!!!!!!!2Fraser!InsPtute,!April,!2013!

Major!resource!producing!state!

ExisPng!potash!producPon!

Best!state!for!business1!

Top!quarPle!mining!jurisdicPon2!

11

VERY&STRONG&SUPPORT&FROM&STATE&AND&MUNICIPAL&LEADERS&AND&COMMUNITY&

12

Blawn!Mountain!is!one!of!the!largest!projects!in!rural!Utah!for!decades!

Direct!and!indirect!jobs:!•  7,300!during!construcPon!•  3,100!during!operaPons!

Economic!impact!to!State:!•  $1.1!billion!per!annum!during!

construcPon!•  $375!million!per!annum!once!

operaPonal!

~$30!million!per!annum!of!royalPes!directed!towards!State!educaPon!fund!

“The! partnership! between! Potash! Ridge! and! SITLA! to! develop! the!Blawn!Mountain! Project! is! a! prime! example! of!why!Utah! is! a! great!place! to! do!business.! Thanks! to! the! vision! and! leadership! of! Beaver!and! Iron! County! Commissioners,! SITLA! and! others,! we! have! an!exciPng! opportunity! before! us.! This! Project! will! bring! a! significant!number!of!high!paying!jobs!to!rural!Utah!and!other!parts!of!our!state.!The!Governor!is!very!pleased!with!the!progress!that!has!occurred!and!is! encouraged! that,! with! the! experience! of! the! Potash! Ridge!management!team!in!developing! largeYscale!mining!projects,!we!will!see!this!project!in!full!operaPon.”!

Utah’s'Lieutenant'Governor'Spencer'J.'Cox'

"Potash! Ridge's! Blawn!Mountain! Project! is! a! worldYclass! operaPon.!We!are!very!pleased!with!the!achievements!made!by!the!CorporaPon!in!expediPng!development!of!the!Project.!Blawn!Mountain!is!slated!to!boost!Utah's!economy!by!several!billion!dollars!over!the!next!40!years!and! provide! largeYscale! economic! development! in! economically!underserved!areas!in!Beaver!and!Iron!County.”!

Beaver'County'Commissioner'Mark'Whitney'

"Iron!County!enthusiasPcally!supports!the!prospect!of!Potash!Ridge!developing! the! Blawn! Mountain! Project! in! neighboring! Beaver!County.! This! project! has! tremendous! appeal! economically! as! a!primary!sector!industry!that!will!create!thousands!of!jobs!in!Beaver!and!Iron!County.!We!are!pleased!to!see!the!efforts!of!Potash!Ridge!advance!this!Project!and!again!express!our!desire!to!see!it!succeed.”!

Iron'County'Commissioners'Adams,'Brinkerhoff'and'Miller'

OUR&LAND&ADVANTAGE&

13

StateYowned!land!designated!for!development:!!

•  Property!is!in!very!remote!locaPon!•  No!objecPons!when!mine!permit!

applicaPon!was!made!

•  No!environmental,!aboriginal!or!social!issues!

All!necessary!support!infrastructure!nearby:!

•  Close!to!highway,!rail,!natural!gas!and!power!transmission!

•  Close!to!construcPon!materials,!skilled!workforce!and!equipment!suppliers!

•  Water!available!in!nearby!valley!–!water!right!already!obtained!

RESERVES&AND&MINE&LIFE&

Drilling!work!to!date!has!established!40!years!of!reserves!–!calculated!by!independent!engineer!(Norwest)!

Drilling!to!date!has!focused!only!on!two!of!the!four!areas!within!the!15,400!acre!land!posiPon

14

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&

DRILLED&

NOT&YET &DRILLED &

THE&BLAWN&MOUNTAIN&PROPERTY&

15

AREA&1&MINING&ZONE&

PROCESSING&PLANT&LOCATION&

AREA&2&MINING&ZONE&

ACCESS&ROAD&

ORE&TEST&PIT&Note!that!ore!is!at!surface!

16

PERMITTING&ESSENTIALLY&COMPLETED&

The!following!table!idenPfies!the!major!permits!and!approvals!that!the!CorporaPon!has!or!sPll!needs!to!obtain!prior!to!construcPon:!

Permit/Approval& Issuing&Agency& Completed&

ExploraPon!Permit!! Utah!Division!of!Oil,!Gas!and!Mining! October,!2011!

US!Army!Corps!of!Engineers!JurisdicPonal!Waters!Concurrence! US!Army!Corps!of!Engineers! March,!2014!

Groundwater!Permits! Utah!Division!of!Water!Quality! July,!2014!

Large!Mine!OperaPon!Approval! Utah!Division!of!Oil,!Gas!and!Mining! August,!2014!

Air!Quality!Emission!Standard! Utah!Division!of!Air!Quality!

Air!Quality!Emission!Standard!requires!the!feasibility!study!to!be!parPally!completed!before!the!applicaPon!is!filed.!It!is!technically!not!a!permit,!but!more!an!agreed!upon!emission!target!that!the!Project!must!be!designed!to!meet.!!

SIMPLE&PROVEN&FLOWSHEET&

Alunite

Calcination

Water Leach

Alumina Rich Material

SOP Solution Crystallizing Drying, Compacting & Sizing SOP

SO2 Acid Plant Sulphuric Acid

17

WELL UNDERSTOOD FLOWSHEET USING COMMONLY USED EQUIPMENT

•  Extensive!test!work!confirms!flowsheet;!!•  Test!work!during!feasibility!study!will!include!bulk!

samples!at!equipment!vendor!faciliPes!–!will!result!in!vendors!providing!producPon!guarantees!

Crushing & Grinding

•  ExisPng!plant!in!Azerbaijan!currently!mothballed!(Ganja!Refinery)!

•  Flowsheet!similar!to!commercialYscale!producPon!processes!historically!used!in!US!and!Australia!

18

Crystallizers&

Acid&Plant&

Primary&Crusher&

Roaster&

Evaporator&Hot&Water&Leaching&

ILLUSTRATIVE&EQUIPMENT&LIST&

PREFEASIBILITY&STUDY&–&SUMMARY&

•  Reserves!support!40!year!mine!life,!with!potenPal!to!increase!life!of!operaPons!through!exploraPon!of!two!addiPonal!zones!of!known!mineralizaPon!

•  Project!ater!tax!Net!Present!Value!(“NPV”)!of!$1.0!billion!using!a!10%!discount!rate:!

•  Unlevered!ater!tax!internal!rate!of!return!(“IRR”)!of!20.5%!•  Excludes!credit!for!potenPal!alumina!rich!material!revenue.!

19

NPV!(ater!tax,!at!10%)(1)! $1.0!billion!

IRR!(ater!tax)(1)!

20.5%!

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!1Inclusive!of!byYproduct!acid!revenues!and!royalPes;!no!credit!assumed!for!potenPal!revenue!from!the!sale!of!alumina!rich!material.!!

CAPEX/OPEX&SUMMARY&

20

7%!!Other!!($14M)!

14%!RoyalPes!($33M)!

Potash Ridge Salt Lakes MOP/ Sulphate Salts

Mannheim Process

Produc:on&Cost&per&Ton&by&Produc:on&Method&(1)!

$381 $440

$453

$173(2)

Potash Ridge Expected In Production

1 CRU/Company Information 2 Includes acid by-product credit (assumes $135/ton price), excludes potential revenue from alumina rich material

1 1 1

•  Approximately!28%!of!direct!capital!costs!are!supported!by!fixedYprice!quotes!•  OpPon!exist!to!phase!construcPon!to!reduce!upfront!capex!requirements!

Capital&Cost&Breakdown!

BYePRODUCT&REVENUE&FROM&SALE&OF&SULPHURIC&ACID&

21

Strong!market!for!sulphuric!acid!in!United!States!

United!States!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!producPon!of!smelter!acid!(Canada)!and!higher!domesPc!consumpPon!(Mexico)!

Consumers!looking!for!stable!supply!for!exisPng!operaPons!and!to!saPsfy!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!with!a!third!party!marketer!for!ogake!of!the!sulphuric!acid!producPon!

22

POTENTIAL&ECONOMIC&UPSIDE&FROM&ADDITIONAL&PROCESSING&AND&SALE&OF&TAILINGS&

&&&&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!

ProducPon!of!SOP!process!leaves!alumina!rich!waste!material!which,!with!beneficiaPon,!may!be!used!as!a!subsPtute!to!bauxite!as!a!feedstock!into!a!Bayer!alumina!producPon!facility.!!

Metallurgical!tesPng!confirmed!the!alumina!in!this!material!is!soluble!in!high!temperature!causPc!soluPons!(Bayer!plants)!

China!is!looking!for!new!sources!of!bauxite!following!Indonesia’s!raw!material!export!ban!

Material!has!considerable!environmental!benefits!over!bauxite!(low!concentraPons!of!iron!oxide!and!other!deleterious!elements!commonly!found!in!bauxite)!

Further!tesPng!is!underway!to!determine!whether!the!alumina!rich!material!could!meet!specificaPons!for!feed!material!in!the!producPon!of!ceramic!proppants!in!North!America.!

Current!economics!do!not!include!potenPal!revenue!from!the!sale!of!approximately!3!million!tonnes!of!this!alumina!rich!material!

TransportaPon!advantage!to!China!versus!other!possible!sources!of!bauxite!imports:!

MILESTONES&

23

Preliminary!Economic!Assessment!issued! November,!2012!

Metallurgical!test!program!iniPated! January,!2012!

Pilot!Plant!Test!work!iniPated!&!SOP!from!test!work!produced!! May,!2013!

Prefeasibility!Study!supporPng!40Yyear!mine!life!issued! December,!2013!

Large!Mining!Permit!ApplicaPon!submixed! 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!

Complete!metallurgical!test!program! 6!months!

Obtain!Air!Quality!Permit! 12!months!

Issue!Feasibility!Study! 12!months!

Receive!final!permits! 16!months!

Mine!construcPon!start!up! 18!months!

Ramp!up!of!mining! 2.5!years!

(1)!From!commencement!of!feasibility!study!

Expected (1) Achieved

MANAGEMENT AND BOARD

24!

EXPERIENCED&AND&PROVEN&MANAGEMENT&

OVER 70 YEARS COMBINED EXPERIENCE 25

Guy&Ben:nck&President&and&Chief&Execu:ve&Officer&

Chartered!Professional!Accountant!20!years!mining/resource!experience!Sherrix!CFO!and!SVP!Capital!Projects!

Ross&Phillips&Chief&Opera:ng&Officer/Chief&Financial&Officer&

MA!(Econ)/MBA/CFA/CPA!10!years!experience!in!large!resource!and!energy!sector!projects!Various!finance!posiPons!in!Sherrix!and!Capital!Power!

Paul&Hampton&VP&Project&Management&

Geologist!and!Metallurgical!Engineer!30!years!in!design,!construcPon!and!management!of!mineral!processing!faciliPes!SNC,!Washington!Group,!Outotec!

DIVERSE&BOARD&WITH&COMPLEMENTARY&SKILLS&&

26

Robert&Gross&Chairman&&Governance&Commikee&Chair&

Lawyer!based!in!Salt!Lake!City,!Utah!Former!President,!First!Interstate!Bank!of!Utah!and!Blue!Healthcare!Bank!Recognized!authority!on!corporate!governance!

Steve&Harapiak&Technical&Commikee&Chair&

Engineer!Former!President,!Potash!CorporaPon!of!Saskatchewan!Significant!experience!in!engineering,!construcPng!and!project!management!

Rahoul&Sharan&Audit&Commikee&Chair&&

Chartered!Accountant.!founder!of!Potash!Ridge!Has!led!the!successful!financing!efforts!for!over!15!companies!in!several!industries!totaling!several!hundred!million!dollars!worth!of!transacPons!

Guy&Ben:nck&President&and&Chief&Execu:ve&Officer&

Chartered!Accountant!20!years!mining/resource!experience!Sherrix!CFO!and!SVP!Capital!Projects!

Blawn&Mountain&Project&!