Sage Potash Corp. · TSXV:SAGE
Sage Potash — Investor Presentation (May 2023)
25 slides from Sage Potash's investor presentation, May 24, 2023
Slide 1: Sage Plain Potash Project
Forward Looking Statement SA G E P L A I N P O TA SH P R O J E C T TSX.V: SAGE OTC: SGPTF Q2 2023
Slide 2: Forward Looking Statement
Forward Looking Statement The information included in this presentation is forward-looking and is subject to uncertainties and risks. The results or events predicted in this presentation may differ materially from actual results or events. Such information is sometimes accompanied by words such as “
Slide 3: Key Project Highlights
Key Project Highlights 1 2 3 4 Highly attractive Large scale and Potential to satisfy Mechanical long-term potash industry high-grade significant portion of evaporation = lower fundamentals tied to long- potash resource US potash demands environmental impact term global megatrends 5 6 7 8 Short-term
Slide 4: Corporate Overview
Corporate Overview ü Sage’s land portfolio consists of nearly 90,000 acres of State and Private Mineral leases and BLM Prospecting Permit Applications ü US Based Tier 1 Potash deposit o Local Transportation Dividend of $150/t ü Preliminary engineering towards PEA, Feasibility and pilot production ü
Slide 5: The Sage Way
The Sage Way “Close to cash” and rational Pioneering a new Short timeline to market growth and supply, as scalable production production 1-2 years compared to conventional approach in the U.S. vs. 8-10 years large-scale greenfield projects Expand out Planned Organic Advanced risk of cash flow Certif
Slide 6: Incremental Production Advantages
Incremental Production Advantages Low risk geology for near Staged commissioning and maintenance term production targets Immediate Risk Mitigation Close to Cash Flow into Incremental personnel hiring and training strong potash pricing C O R P O R A T E P R E S E N T A T I O N pg. 6
Slide 7: A Highly Attractive Location
A Highly Attractive Location Within the Paradox Basin of Southeast Utah Why the Paradox Basin? • Paradox Basin known to host extensive undeveloped world class potash resources • 2 Billion tons *USGS • Cycle 18 Potash Beds have attractive thicknesses and high grade for solution mining • Access to min
Slide 8: Available Modern Infrastructure
Available Modern Infrastructure A network of highways and Located close to Access to Educated workforce roads in and out of the project low-cost power available oil with access to local area, and strong highway and electricity and gas infrastructure system to key customer areas Progressive, Safe, St
Slide 9: High Grade, Thick Potash Beds & Ideal Formation Temperatures
High Grade, Thick Potash Beds & Ideal Formation Temperatures Potash Cycle 18 Johnson 1 Well Core • Potash beds are continuous • Grades of 23–27% K2O (36– based on seismic work and 14 43% KCl) historic well correlations • Cycle 18 combined potash • Formations are flat lying with zones of 12.74 m (41.
Slide 10: Resource Estimate Table
Resource Estimate Table Weighted Weighted Area With In-Place Sylvinite Gross K2O Gross KCl Cycle 18 Thickness Average Average Exclusions Tonnage Tonnage Tonnage Member (m) K2O Grade KCl Grade (km2) (MMT)(a, b, c, d) (MMT)(a, b, c, d) (MMT) (%) (%) Inferred Mineral Resources Upper Cycle 18 10.55 7.26
Slide 11: Extensive Land Holdings
Extensive Land Holdings • Over 90,000 acres of mineral leases and PPA’s C O R P O R A T E P R E S E N T A T I O N
Slide 12: Solution Mining
Solution Mining At 26°C and above, KCl becomes more soluble than NaCl NaCl-saturated brine dissolves KCl Increasing temperature increases KCl solubility Increasing temperature improves the economics Lower water usage via water recycling Allows for rapid development Lower CAPEX/OPEX Less surface and
Slide 13: Seismic Interpretation
Seismic Interpretation Future Well Placements • The 2D seismic indicates flat, undisturbed Cycle 18 • Pilot well will be placed on a 2D seismic line to reduce the risk • Disposal well will be located between the Sage 1 and Sage 2 pilot wells • A water well to be located nearby Cycle 18 C O R P O R A
Slide 14: Mechanical Evaporation
Mechanical Evaporation ü Reduced water consumption ü Reduced land footprint ü Less visual impact on the surroundings ü Modular “packaged” units for the systematic staging of production expansion ü Increased tolerance to climate/weather impacts ü Year-round production EVALED® RV: mechanical vapor rec
Slide 15: Production/Vertical Configuration
Production/Vertical Configuration Pilot Production 15k TPY Commercial Production 50k -150k TPY Well Field Development 200-500 TPY Single Well Solution Mining Dual Well Solution Mining Multi Cavern Single or Dual Well • Directionally drilled from the • Sump development • Well connection central drill
Slide 16: Conceptual Mining Unit Production Design
Conceptual Mining Unit Production Design • Ability to expand from 50,000 to 150,000 TPY for 20 years • Equates to 320-acre mining unit • 50-60 potential mining units C O R P O R A T E P R E S E N T A T I O N
Slide 17: Potash Price
Potash Price Potash price increased most significantly of all fertilizers in 20211 Change In Reported Fertilizer Prices (Updated Fall 2021)1 KCl Sage Consumption Competitors Low High Corn Belt REGION PRICE RANGE (MT FOB)1 Pacific Northwest $708-$719 Sage’s target market encompasses most states west
Slide 18: Potash Demand
Potash Demand Potash demand has had an annual Canadian and U.S. Potash Demand Forecast1 growth rate of 2.5–3% since 20001 14 Canada United States 12 The Canadian and U.S. potash demand is forecast to grow to an estimate of 12.55 10 million Mt in 2030.1 8 Million Metric Tons World demand is driven by
Slide 19: Potash Market
Potash Market Net import reliance of potash in the United States from 2017 to 2022 (in percent) 120% 100% 92% 92% 91% 90% 93% 94% S H A R E 80% The United States is the largest global 60% consumer of Potash, yet it imports 94% I M P O R T of its potash 1 40% 20% 0% 2017 2018 2019 2020 2021 2022 The
Slide 20: Management Team
MANAGEMENT TEAM C O R P O R A T E P R E S E N T A T I O N | M A R C H 2 0 2 3
Slide 21: Management Team & Directors
Management Team & Directors Peter Hogendoorn Pat Avery J. Patricio Varas, P. Geo. CEO, Sage Potash Corp. CEO Sage Potash (US) Corp. COO & VP of Exploration • 30 years of financing junior mining and • Current Director of Fertoz, an Australian • Over 36 years of experience in mineral phosphate company
Slide 22: Management Team & Directors (continued)
Management Team & Directors (continued) Selma Sierra | Director Sage Potash Matthew Lechtzier | Director Gordon Ellis | Director, P. Geo. David Reid | Director (USA) • Gordon Ellis P.Eng (retired) • Global Co-Chairman of Mining at DLA Piper • Senior VP of Ivanhoe Mines and • Recently appointed to Di
Slide 23: Partnership Model
Partnership Model Sage Potash Corp. Partner with Existing SOP/MOP Producers and Distributors • Short-term production/early risk mitigation/ • Dedicated Precursor Supply/Custom Blends high-confidence geology • Joint Marketing Agreements • Proven expertise in solution mining and fertilizer markets • W
Slide 24: Company Share Structure
Company Share Structure Management & Founders 21,437,500 Seed Shareholders 26,907,900 Issued and Outstanding 48,345,400 Directors and Officers Options 8,200,000 Consultant Options 1,300,000 Broker Warrants 501,360 Fully Diluted Pre-Financing 58,346,760 *CEO, Management, & Directors hold approximatel
Slide 25: Thank you
Thank you Contact us: info@sagepotash.com +1.604.236.4182 C O R P O R A T E P R E S E N T A T I O N | M A R C H 2 0 2 3