Apc Minerals Limited · ASX:APC

Apc Minerals — Australian Potash — Investor Presentation (August 2017)

32 slides from Apc Minerals's investor presentation, Aug 29, 2017

1. Slide 1: Investor Presentation: Australia's Premier Sulphate of Potash Project

   For personal use only Investor Presentation Australia’s Premier Sulphate of Potash Project 29 AUGUST 2017 Australian Potash Limited (ASX:APC) 1

2. Slide 2: Cautionary Statement & Disclaimer

   Cautionary Statement & Disclaimer For personal use only Scoping study – cautionary statement The Study referred to in this announcement is a preliminary technical and economic investigation of the potential viability of the Lake Wells Potash Project. It is based on low accuracy technical and economi

3. Slide 3: Competent Persons Statement

   Competent Persons Statement For personal use only The information in the announcement that relates to Exploration Targets and Mineral Resources is based on information that was compiled by Mr Jeffery Lennox Jolly. Mr Jolly is a principal hydrogeologist with AQ2, a firm that provides consulting servi

4. Slide 4: Corporate Information

   Corporate Information For personal use only Financial information Board of Directors Share price (25-Aug-17) A$0.105 Matt Shackleton Executive Chairman Rhett Brans Non-executive Director Number of shares 251M Brett Lambert Non-executive Director Market Capitalisation A$26M Cash & receivables1 A$4M R

5. Slide 5: Lake Wells Sulphate of Potash (SOP) Project

   For personal use only Lake Wells Sulphate of Potash (SOP) Project Western Australia, 100% owned Australian Potash Limited (ASX:APC) 5

6. Slide 6: Rapidly Advancing Australia's Premier SOP Project

   Rapidly Advancing Australia’s Premier SOP Project For personal use only • 100% ownership of +2,000km2 Lake Wells SOP project – low risk mining jurisdiction – no Native Title • Long life, lowest cost quartile SOP operation – large easily extractable resource – highly efficient capital expenditure – s

7. Slide 7: Sulphate of Potash (SOP)

   Sulphate of Potash (SOP) For personal use only Global potash market c. US$60 billion per annum SOP is forecast to grow from current 10% to 20% by 2025 SOP, or Potassium Sulphate (K2O4), is a premium quality nutrient for the growth of high-value crops – chloride-free and highly concentrated – contain

8. Slide 8: Sulphate of Potash (SOP): Demand fundamentals

   Sulphate of Potash (SOP) For personal use only Demand fundamentals driven by – Reduction in arable land and chase for higher yields – Rising global population and income growth in key emerging markets – Changing dietary preferences towards high value crops – Improved produce storage and shelf life –

9. Slide 9: SOP industry cost of production curve

   Sulphate of Potash (SOP) For personal use only SOP industry cost of production curve Scoping study results position Lake Wells in the bottom quartile of the cost curve Source: Argonaut, March 2017 SOP industry cost curve incentivising primary production brine assets, such as Lake Wells – high cost s

10. Slide 10: Fly-Through: The Lake Wells SOP Project

    Fly-Through For personal use only The Lake Wells SOP Project www.australianpotash.com.au/#howitworks Australian Potash Limited (ASX:APC) 10

11. Slide 11: Activities Rapidly Advancing Lake Wells

    Activities Rapidly Advancing Lake Wells For personal use only Resource • Currently installing # 5 of 7 test-production bores Accurate Reserve estimation • Long-term test-pumping Q3/4 2017 is driven by data • • Resource extension Q3 2017 Reserve estimation Q4 2017/Q1 2017 Low permeability sub- Fresh

12. Slide 12: Part 1: Brine - Extraction

    Part 1: Brine - Extraction For personal use only Borefield brine abstraction is a developed technology APC will use bores to extract the brine • Currently Australia’s largest indicated SOP resource estimated using specific yield, indicating significant de- risking of resource • To convert resources

13. Slide 13: Part 1: Brine - Large Robust Resource Estimate

    Part 1: Brine - Large Robust Resource Estimate For personal use only Massive aquifer of +20 billion tonnes SOP brine Highly permeable sands in upper & basal production aquifers 15m – 35m wide Indicated Inferred Total Mt SOP 12.7 2.0 14.7 SOP grade mg/l 8,267 5,963 7,896 Aquifer volume 17,050 3,279 2

14. Slide 14: Part 1: Extracting the Brine

    Part 1: Extracting the Brine Palaeochannel Borefield Development For personal use only • Brine borefield developed into the +55km palaeochannel hosting SOP resource – Stage 1 c. 35 bores – Stage 2 c. 72 bores • Recharge through millions of tonnes of brine above depressurised production aquifer • On-

15. Slide 15: Part 2: Evaporation

    Part 2: Evaporation For personal use only • SOP trial-production ponds program Q4 2017/Q1 2018 – Pilot pond network completed with first fills to be complete September 2017 – Aiming to produce feeder salts for spec. SOP products – Highly impermeable sub-surface clay layers are a distinct advantage a

16. Slide 16: Capital Efficient On-lake Concentration Ponds

    Part 2: Evaporation Capital Efficient On-lake Concentration Ponds For personal use only Unlined on-playa evaporation ponds are used in the world’s largest brine SOP operations APC plans to build concentration ponds on the lake surface Table demonstrating additional CAPEX required for projects develo

17. Slide 17: On-lake Concentration Ponds, Off-lake Harvest Ponds

    Part 2: Evaporation On-lake Concentration Ponds, Off-lake Harvest Ponds For personal use only The Lake Wells SOP Project concentration ponds will be built on‐lake to take advantage of topographic features and highly‐impermeable sub‐surface clay layers • On-playa evaporation ponds taking advantage of

18. Slide 18: Part 3: Processing - Low CAPEX Development

    Part 3: Processing - Low CAPEX Development For personal use only Capital efficient 2 stage development strategy First mover advantage SCOPING STUDY CAPEX 4 Stage 1 Stage 2 Low upfront CAPEX Production SOP (tonnes) 150,000 300,000 400 450 $AUD $AUD Annual SOP production (ktpa) 400 Pre production cape

19. Slide 19: Part 3: Processing – Lowest Quartile OPEX

    Part 3: Processing – Lowest Quartile OPEX For personal use only Feasibility study H1 2018 Significant OPEX optimisation SCOPING STUDY OPEX 4 Stage 1 Stage 2 Scope to optimise the cost base through feasibility study COST AREA $AUD $AUD • Pond permeability (smaller ponds = Reagents/consumable 127 126

20. Slide 20: Part 3: Processing

    Part 3: Processing For personal use only Capital efficient 2 stage development Managing market penetration • Granulation plant • Design can produce 100% premium grade granulated SOP or standard SOP to meet the market • Ultra-premium soluble SOP product line being modelled = meeting customer’s 2020 d

21. Slide 21: Logistics – APC Will Use the Existing Rail

    Logistics – APC Will Use the Existing Rail For personal use only Extensive existing infrastructure Bulk minerals rail terminals c.300kms Leg Mode Km $A/t Lake Wells ‐ Road 300 14 Leonora Leonora ‐ Rail 800 55 Fremantle Lake Wells – Fremantle 69 For comparison, if RAIL was not an option: Lake Wells ‐

22. Slide 22: Schedule to Deliver Over the Next Months

    Schedule to Deliver Over the Next 12 Months For personal use only CY2017 CY2018 Q3 Q4 H1 H2 Final commissioning of pilot evaporation ponds ✓ Finalisation of test‐pumping program ✓ Completion of geotechnical field work ✓ JORC Reserve estimate ✓ Reporting of Feasibility Study results ✓ Environment Pro

23. Slide 23: Why Australian Potash' Lake Wells Project?

    Why Australian Potash’ Lake Wells Project? For personal use only Australia’s Premier Sulphate of Potash Project Rapid time-line to project execution Largest Indicated JORC Resource estimate: resource has been significantly de-risked – +7,000m of drilling into palaeochannel, extensive test-pumping –

24. Slide 24: JORC Mineral Resource Estimate

    JORC Mineral Resource Estimate For personal use only Drainable K Volume of Specific SOP Grade SOP Brine Concentration Aquifer Yield (mg/L) Resource Hydrogeological Unit Volume (mg/L) Weighted Weighted MCM Mean MCM MT Mean Value Mean Value Indicated Resources Western High Grade Zone Surficial Aquifer

25. Slide 25: Yamarna Gold Project

    For personal use only Yamarna Gold Project Western Australia, 100% owned Australian Potash Limited (ASX:APC) 25

26. Slide 26: Yamarna Greenstone Belt

    Yamarna Greenstone Belt For personal use only The last under-explored belt in the Eastern Goldfields +6m ounces gold discovered to date Gruyere Gold Project JV: Gold Road Resources/Gold Fields Ltd – 148mt @ 1.3g/t for 6.2M ounces gold – Gold Fields’ 50% buy-in A$350m APC tenement outline – 7.5Mtpa p

27. Slide 27: Yamarna Shear - Dilationary Zone

    Yamarna Shear - Dilationary Zone For personal use only Outstanding regional success • June 2017 adjoining neighbour Gold Road Resources (ASX: GOR) 2 3 Axford released outstanding gold APC tenement results 2kms south-east of outline APC’s tenement holding at Ibanez prospect including – 10m @ 28.76g/t

28. Slide 28: Yamarna Gold Project

    Yamarna Gold Project For personal use only Structurally analogous to Canada’s Abitibe archaean greenstone belt Australian Potash Limited (ASX:APC) 28

29. Slide 29: Yamarna Gold Project: Exploration program commencing immediately

    Yamarna Gold Project For personal use only Exploration program commencing immediately Drill targets being defined Yamarna Gold Project – Northern terminus of the ‘Yamarna’ Shear – Dextral Lateral Ramp thrust domain – Strong Timmins (Abitibi Belt, Canada) similarities Axford – Relatively easy to cons

30. Slide 30: Activities August – December 2017

    Activities August – December 2017 For personal use only – Comprehensive lithological model using existing database being developed now – Project scale soil sampling and analysis program to refine high-priority drill targets to commence SEPTEMBER 2017 – Targeting drill programs to commence 4Q 2017 –

31. Slide 31: Directors & Management

    Directors & Management For personal use only Matt Shackleton Rhett Brans Brett Lambert Executive Chairman Non-executive Director Non-executive Director Matt is a resources executive and Chartered Mr Brans is an experienced director and civil Mr Lambert is a mining engineer and Accountant with 20 yea

32. Slide 32: Registered Office Address

    For personal use only Registered Office Address 31 Ord Street, West Perth WA 6005 PO Box 1941, West Perth WA 6872 Reception: +61 8 9322 1003 Email: m.shackleton@australianpotash.com.au Website: www.australianpotash.com.au ABN 58 149 390 394 Australian Potash Limited (ASX:APC) 32

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