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January 2013 - Presentation

Nov 02, 2014



January 2013 - Presentation

  • 1. Premium Potash ProjectDriven by a ProvenManagement Team

2. FORWARD LOOKING STATEMENTSCertain statements in this presentation may constitute "forward-looking" statements which involveknown and unknown risks, uncertainties and other factors which may cause the actualresults, performance or achievements of Potash Ridge Corporation (the "Corporation"), or industryresults, to be materially different from any future results, performance or achievements expressed orimplied by such forward-looking statements. When used in this presentation, such statements usesuch wordsas"may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate" and othersimilar terminology. These statements reflect the Corporations current expectations regarding futureevents and operating performance and speak only as of the date of this presentation. Forward-lookingstatements involve significant risks and uncertainties, which include, but are not limited to the factorsdiscussed under A Cautionary Note Regarding Forward Looking Statements and "Risk Factors" inthe final prospectus of the Corporation dated November 27, 2012, and should not be read asguarantees of future performance or results, and will not necessarily be accurate indications ofwhether or not such results will be achieved. Although the forward-looking statements contained in thispresentation are based upon what management of the Corporation believes are reasonableassumptions, the Corporation cannot assure investors that actual results will be consistent with theseforward-looking statements. These forward-looking statements are made as of the date of thispresentation and are expressly qualified in their entirety by this cautionary statement. Subject toapplicable securities laws, the Corporation assumes no obligation to update or revise them to reflectnew events or circumstances.2 3. A potash company focused on itsBlawn Mountain property in UtahSOP: 680,000 tonnes per annumBauxite: 3.3 million tonnes per annum3 4. EXPERIENCED AND PROVEN MANAGEMENTGuy Bentinck President & CEOChartered Accountant;20 years mining/resource experienceSherritt: CFO and SVP Capital ProjectsJeff Hillis CFORoss PhillipsChartered Accountant;VP, Development10 years mining sector finance, including10 years experience in large resourceCFO of several public mining companies and energy sector projectsIberian Minerals, Excellon, Falconbridge Sherritt, Capital PowerLaura Nelson VP, Government andPaul Hampton VP, ProjectRegulatory Affairs ManagementExtensive experience in government Geologist and Metallurgical Engineer;relations, permitting and power planning, including~30 years experience inthe successful permitting of the Red Leaf oil shaledesign, construction, start-up and managementprojectof mineral processing facilitiesRed Leaf Resources, Utah GovernmentSNC, Washington Group, Outotec OVER 80 YEARS COMBINED EXPERIENCE4 5. COMPETATIVE ADVANTAGESLarge mineral deposit containing premium-quality potashStrategically located in a mining friendly jurisdiction with established infrastructure nearbyState-owned land allows for an efficient permitting processHistorical work expedites project developmentLower risk surface mining deposit; expected low-cost producer30 year mine life, with upside potentialPEA completed: $1.3 billion NPV at 10%; 21.3% after tax IRR5 6. POTASH:ESSENTIAL TO THE WORLDS FOOD SUPPLY No known substitute Increasing world population Growing per capita income Decreasing arable land Increasing use of biofuels~5% EXPECTED ANNUAL GROWTH IN DEMAND TO 20166 7. SULPHATE OF POTASH (SOP) IS A PREMIUM PRODUCTSulphate of Potash (SOP)Muriate of Potash (MOP)Potassium Sulphate (K2SO4)Potassium Chloride (KCl)6 million tonnes sold in 2011155.8 million tonnes sold in 20112Potassium and sulphur are essential nutrients2Crop quality/yield diminish as chloride builds up2Improves yield, quality, taste and enhances shelf life2AVERAGE 47% PRICE PREMIUM OVER MOP371Source: Fertecon 2Source: CRU 3Based on historical data 8. USES OF SOPFruits TobaccoVegetables TeaNuts Dry soilsHorticultural Plants Salty soil8 9. SOP PREMIUM PRICE TRENDS U.S. $/tonne 900 800 700 600 500 400 300 200 SOP1 MOP2 1000 200620072008 2009 2010 20112012HISTORICAL PRICE PREMIUM FOR SOP HAS RANGEDBETWEEN 30% AND 61%9 1SOP, standard grade cif NW Europe (Source: Fertilizer Week)2MOP, all grades, fob Vancouver/Portland (Source: CRU) 10. SOP MARKET CHARACTERISTICS Global SOP Consumption and Commodity Price112,000$1,000$90010,000Rest of $800Africa the WorldEurope$7004.6% 14.9%8,00023.3% $600 (US$/tonne)Tonnes (000s)6,000 $500 N. America8.6%$400China4,00044.3% $300$2002,000$100 Central and 0$0South America 2000 200420082012201620204.3% Global SOP Consumption Historical Standard FOB NW Europe (US$/tonne SOP) Estimated Standard FOB NW Europe (US$/tonne SOP)10 1Source: Fertecon, CRU 11. SOP MARKET DYNAMICSSOP share of potash market: Limited production and premiumCurrent: ~10% price has restricted demandPotential: >28%1 Trend toward highPotential to use SOP in typical cereal crop fertilizer blends nutrient fertilizers instead of ammonium sulphateSOP consumption:China (pop. 1.3 billion): 1.9 million tpy IndiaIndia: (pop. 1.2 billion) 50,000 tpy (