Slide 1: Gensource Potash Corp Corporate Presentation
Gensource POTA S H CO RP Corporate Presentation TSXV:GSP Aug 2018
Slide 2: Disclaimer
2 Disclaimer This presentation does not constitute and offer to sell, or the solicitation for the offer to buy, the securities of Gensource. The scientific and technical information contained in this presentation has been reviewed and approved by Mike Ferguson, P.Eng., who is the President and Chief
Slide 3: Gensource Potash Corp. Vision – Mission - Values
3 Gensource Potash Corp. Vision – Mission - Values Vision: Mission: Values: Achieve food security Create a series of The core priorities by supplying the world independent, scalable for Gensource are with a key and environmentally integrity, macronutrient at an sustainable Potash forthrightness, aff
Slide 4: Gensource Project Summary – Vanguard 1
4 Gensource Project Summary – Vanguard 1 Focussed on developing 100%-owned ‘Vanguard’ Highlights project located in central Saskatchewan, Canada • Vanguard 1 Project is in the first quartile of all potash producers worldwide: sub-US$40.00/t cash costs where Saskatchewan is ranked the 2nd most attrac
Slide 5: Potash: Problem & Opportunity
5 Potash: Problem & Opportunity Supply Side Development of Crop Prices Demand Side Producers Suffer From: A Historical Overview: Customers Suffer From: v Lack of Competition: Potash is v Lack of Competition: Potash supply is 11.5 controlled by oligopolistic controlled by oligopolistic supply-side su
Slide 6: Gensource Value Proposition
6 Gensource Value Proposition To disrupt the existing supply chain by deploying innovative extraction methods and partnering directly 100% Potash 3. JV Partnerships Direct Delivery with potash users 2. Innovative Extraction Method Gensource Potash JVCo. Mineral Reserve Potash Partner Using brackish
Slide 7: High Quality Asset Base
7 High Quality Asset Base Saskatchewan Canada Projects situated in world’s largest potash basin Bankable Feasibility Compelling Project NPV and IRR 1 Study completed Strong local and provincial May 31, 2017 (unlevered – 100% Equity Base Case) support Ranked #1 mining jurisdiction Indicator Pre Sask.
Slide 8: Drilling & Geology – Reserves & Resources
8 Drilling & Geology – Reserves & Resources Gensource Potash’s ‘Vanguard 1 Area’ Mineral Resources were The mineral resources for the Vanguard 1 Project area have been estimated by Ordinary Kriging techniques using a grid model in estimated based on the principles established by the Guidelines on Ma
Slide 9: Vanguard 1 Cost Breakdown
9 Vanguard 1 Cost Breakdown CapEx Breakdown Project economics includes fully drawn contingency expense Item ‘000 CA$ Contingency, Mining, 8.5% 9.1% Mining $ 23,738 Wellfield, 6.2% Wellfield $ 17,304 Process Plant $ 70,610 Project Indirects, Storage & Loadout $ 957 27.9% Process Plant, 25.2% Site Inf
Slide 10: Vanguard 1 Cost Breakdown (OpEx)
10 Vanguard 1 Cost Breakdown OpEx Breakdown All-in costs per tonne of $US 95.97 (Ex Works) Cash Margins OpEx, Price/ Net $ Margin % Net $ Margin % $39.57 Shipping , Tonne No Shipping With Shipping $74.35 $225 $129.03 57% $53.68 24% $250 $154.03 62% $79.68 32% Sustaining CapEx, $11.66 $275 $179.03 65
Slide 11: Conversion Cost per Tonne @ Capacity (USD)
Conversion Cost per Tonne @ Capacity (USD) Gen 0 20 40 60 80 100 120 140 160 180 200 sour ce V Q SL ang uard Po tash D ev e 1 Corp lopmen Roc t SQM anville Pota shCo Atacam ICL rp L a Wes Dead anigan tern Se Opex Pot a Work Po Mile Enca s nto tashCo tone Pot rp A Ural Muskow llan kali S e k an Pota
Slide 12: Comparative Mining Methods
12 Comparative Mining Methods Conventional Selective Dissolution Specifications Conventional Solution Mining Vanguard 1 Min. Viable Production Rate 2.5 Mt/a 2.0 Mt/a 250 kt/a CapEx per Tonne (USS) $ 1,990 * $ 1,620 * $ 840 ** Operating Costs (US$) $ 80/t * $ 118/t * $ 39.57/t ** Development Time 7-1
Slide 13: Economics
Each module and partnership creates significant cash flows to Gensource Potash Corp, creating a potash streaming company 13 Economics Assumptions Gensource’s small-scale concept facilitates a development timeline of approximately two Resource/Engineering Investment $ 8,000,000 years from constructio
Slide 14: Binding Take-or-Pay Off-Take Agreement Signed in May 2018
14 Binding Take-or-Pay Off-Take Agreement Signed in May 2018. Following a non-binding MOU with a large diversified North American agriculture player, a definitive Off-Take Agreement was executed effective May 1st, 2018. …Additionally, a second non-binding MOU is progressing slowly towards an Off-Tak
Slide 15: Current Status
15 Current Status The Vanguard One Project Project Development Area Will Support Multiple Production Modules Vanguard One is now SHOVEL READY: Gensource is currently pursuing üDetailed feasibility study complete, negotiations with 5 other off- üOff-Take Agreement complete, take and Joint Venture par
Slide 16: Development Timelines
16 Development Timelines* Proposed production horizon - 2 years * Subject to project financing
Slide 17: Development Upside: Project 2
17 Development Upside: Project 2 Overview Resource Area A second project area, known as ‘Lazlo’, is also an ideal The resource in the Lazlo area is rich and widespread, and is candidate for a selective dissolution operation. Located in located along a well-serviced infrastructure corridor. the “Davi
Slide 18: Management & Board
18 Management & Board Management Directors Mike Ferguson, P. Eng. - President & CEO Mike Ferguson, P. Eng. - President & CEO Led the world-class team that developed Potash One’s Legacy Led the world-class team that developed Potash One’s Legacy Project, Project, the only Saskatchewan greenfield pota
Slide 19: Capital Structure
19 Capital Structure Market Capitalization $47 Million Recent Share Price $0.13 52 Week Range $0.06 - $0.20 Basic Shares Outstanding 351 M Options 30.5 M Warrants 38.8 M Cash Position ~ $1.07M Debt $0 Management, Directors & ~ 27% Business Associates
Slide 20: Contact Us
20 Contact Us Mike Ferguson, P. Eng. Rob Theoret, B.Comm., CIM President & CEO CFO mike@gensource.ca rob@gensource.ca 306-974-6414 306-974-6406 Suite 1100, 201 1st Ave. South Website Saskatoon, Saskatchewan www.gensource.ca S7K 1J5
Slide 21: Appendix
Appendix Gensource POTASH CORP
Slide 22: Technical Strength
22 Technical Strength These individuals, together with Mike Ferguson, comprised the core Potash One team responsible for the project’s success Max Ramey, P.Eng. – Solution Mining Solution mining lead for the Potash One - Legacy Project (as well as the Rio Tinto - Potasio Rio Colorado Project in Arge
Slide 23: Existing Mines have Environmental Issues
23 Existing Mines have Environmental Issues Gensource is NOT a conventional Potash Mine Gensource facility is 300 metres by 300 metres Conventional = HUGE environmental footprint v Massive salt tailings stored on surface for indefinite period v Large fresh water consumption v Large demand on utiliti
Slide 24: Selective Dissolution
24 Selective Dissolution Cost effective and efficient recovery method Horizontal Well Pattern Horizontal Cavern for Selective Dissolution v Using brackish formation water, an extraction brine is pumped through horizontal caverns where only KCl (potash) is dissolved v The saturated brine (NaCl and KC
Slide 25: Proven Technique – Intrepid Potash
25 Proven Technique – Intrepid Potash Cane Creek Mine (Moab, UT) - has historically experienced many production challenges but deployed selective dissolution methods to overcome the problems Complex geology v Significant faulting and folding associated with Cane Creek anticline v Cannot be mined usi
Slide 26: Proven Technique – Intrepid Potash
26 Proven Technique – Intrepid Potash Selective dissolution successfully deployed at Cane Creek Mine (Moab, UT) starting in 2006 Pitchfork Well Pattern Before and After Selecting Mining v Inject saturated brine to selectively mine potash – saturated brine targets potash only, salt matrix remains int