Sage Potash Corp. · TSXV:SAGE
Sage Potash — Investor Presentation (June 2024)
25 slides from Sage Potash's investor presentation, June 2024
Slide 1: TSXV: SAGE OTC: SGPTF
I ne ff ti F LK: & OO: ° “SQc: we BF Oz F = > ti § W)
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 Highly attractive 2 Large scale and 3 Potential to satisfy 4 Mechanical long-term potash industry high-grade potash significant portion of evaporation = lower fundamentals tied to long- resource US potash demands environmental impact term global megatrends 5 Short-term timel
Slide 4: Corporate Overview
CORPORATE OVERVIEW Sage’s land portfolio consists of nearly 90,000 acres of State and Private Mineral leases and BLM Prospecting Permit Applications US Based Tier-1 Potash deposit - Local Transportation cost advantage of USD$100 $150/ton Preliminary engineering towards PEA, Feasibility and pilot pro
Slide 5: A Highly Attractive Location
A HIGHLY ATTRACTIVE LOCATION 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 mining and processing knowledge Regional exploration
Slide 6: Extensive Land Holdings
EXTENSIVE LAND HOLDINGS Over 90,000 acres of mineral leases and PPA’s ID WY Salt Lake City NV Utah CD Moab AZ NM CORPORATE PRESENTATION 2023 6 . 24
Slide 7: Resource Estimate Table
RESOURCE Notes: Deductions for unknown seismic anomalies are 25 percent as no three-dimensional (3D) seismic has been completed. ESTIMATE TABLE (f)Inferred Resource ROI is 0–2,400 m. (g) Potential Quantity ROI is 0–5,000 m for the Western Natural Gas 1 well and 2,400–5,000 m for the Johnson 1 well.
Slide 8: The Sage Way
THE SAGE WAY Pioneering a new “Close to cash” and rational Short timeline to scalable production market growth and supply, as production 1-2 years approach in the U.S. compared to conventional vs. 8-10 years large-scale greenfield projects Expand out Planned Organic Advanced risk of cash flow Certif
Slide 9: Incremental Production Advantages
INCREMENTAL PRODUCTION ADVANTAGES Low risk geology for near Staged commissioning term production targets and maintenance Immediate Risk Mitigation Incremental personnel Close to Cash Flow into hiring and training strong potash pricing CORPORATE PRESENTATION 2023 9 . 24
Slide 10: Access to Modern Infrastructure
ACCESS TO MODERN INFRASTRUCTURE A network of highways and Located close to low-cost Access to available Educated workforce with roads in and out of the project power and electricity oil and gas access to local infrastructure area, and strong highway system to key customer areas Progressive, Safe, St
Slide 11: 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 based on seismic work and 14 (36– 43% KCl) historic well correlations Cycle 18 combined potash Formations are flat lying with zones of 12.74 m (41.78 f min
Slide 12: Solution Mining
SOLUTION MINING Solubility Curve - Potash (KCI) vs. Salt (NaCl) 60 At 26°C and above, KCl becomes more soluble than NaCl NaCl-saturated brine dissolves KCl 50 Increasing temperature increases KCl solubility Solubility (g per 100g H20) Sage: 68 C˚ Western: 58-65 C˚ Increasing temperature improves the
Slide 13: Seismic Interpretation
SEISMIC INTERPRETATION Why the Paradox Basin? 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 CORPORATE PRESENTATIO
Slide 14: Mechanical Evaporation
MECHANICAL EVAPORATION Reduced water consumption Reduced land footprint Less visual impact on the surroundings Modular “packaged” units for the systematic staging of production expansion Increased tolerance to climate/weather impacts Year-round production CORPORATE PRESENTATION 2023 14 . 24
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 • Sump development • Well connection • Directionally drilled from the central drill
Slide 16: Conceptual Mining Unit Production Design
CONCEPTUAL MINING UNIT PRODUCTION DESIGN 320-acre mining unit Ability to support production of 150,000 TPY for 20 years Existing land position can host up to 70 potential mining units CORPORATE PRESENTATION 2023 16 . 24
Slide 17: Project Schedule
PROJECT SCHEDULE 2024 2025 2026 Q.1 Q.2 Q.3 Q.4 Q.1 Q.2 Q.3 Q.4 Q.1 Q.2 Well(s) Permitting and Engineering Completed Pilot Plant Procurement Drilling, Pre-Production wells Plant operations, permitting and engineering Laboratory Analysis Resource Update Re-enter and core helium well Western natural g
Slide 18: Project Economics
PROJECT ECONOMICS Robust Commercial Attributes able to withstand historically low market troughs High-grade potash (43% KCl) content with virtually no insolubles or Carnallite Favorable Geology • High formation temperature ideal for potash solution with lowest energy requirements • Thick flat lying
Slide 19: Potash Demand
POTASH DEMAND Potash demand has had an annual growth rate of 2.5–3% since 20001 Canadian and U.S. Potash Demand Forecast1 The Canadian and U.S. potash demand is 14 forecast to grow to an estimate of 12.55 CANADA UNITED STATES million Mt in 2030.1 12 10 World demand is driven by the developing 8 Mill
Slide 20: Potash Market
POTASH MARKET Net import reliance of potash in the United States from 2017 to 2022 (in percent) Solubility Curve - Potash (KCI) vs. Salt (NaCl) The United States is the largest 120% global consumer of Potash, yet it 100% imports 94% of its potash1 92% 92% 91% 90% 93% 94% 80% 60% The US only produces
Slide 21: Management Team & Directors
MANAGEMENT TEAM & DIRECTORS PAT AVERY PETER HOGENDOORN AMIR RAHIMTULA SHILO SAZWAN CEO SAGE POTASH (US) CORP. CEO, SAGE POTASH CORP. GLOBAL FINANCE & TRADE PARTNER STRATEGIC OPERATIONS PARTNER Current Director of Fertoz, an Australian 30 years of financing junior mining and Amir is President of Tran
Slide 22: Management Team & Directors (Continued)
MANAGEMENT TEAM & DIRECTORS (CONTINUED) GORDON ELLIS MATTHEW LECHTZIER DAVID REID CLARK SAZWAN SELMA SIERRA DIRECTOR, P. GEO. DIRECTOR DIRECTOR DIRECTOR DIRECTOR SAGE POTASH (USA) Gordon Ellis P.Eng (retired) Senior VP of Ivanhoe Mines and Ivanhoe Global Co-Chairman of Mining at DLA Piper Clark Sazw
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 o I
Slide 24: Company Share Structure
COMPANY SHARE STRUCTRE MANAGEMENT & FOUNDERS 21,437,500 SEED SHAREHOLDERS 26,907,900 ISSUED AND OUTSTANDING 53,039,905 DIRECTORS AND OFFICERS OPTIONS 8,200,000 CONSULTANT OPTIONS 1,300,000 BROKER WARRANTS 795,670 FULLY DILUTED PRE-FINANCING 65,388,517 *CEO, Management, & Directors hold approximately
Slide 25: info@sagepotash.com
TSXV: SAGE OTC: SGPTF info@sagepotash.com