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REG - Kore Potash PLC - Confirmation of mineral resource for Kola Deposit

Kore PotashAnnouncement

27/02/2025 08:45

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RNS Number : 6982Y Kore Potash PLC 27 February 2025

CONFIRMATION OF MINERAL RESOURCE FOR KOLA DEPOSIT

508 Mt Measured and Indicated Sylvinite Resource grading 35.4% KCI

Kore Potash Plc

("Kore Potash" or the "Company")

27 Feb 2025

This announcement is a restatement of the Mineral Resource estimate for the
Kola deposit ("Kola" or the "Project"), located on the Company's 97%-owned
Sintoukola Potash Project (SP), in the Republic of Congo ("RoC").

The Mineral Resource estimate was originally released by the Company's
wholly-owned subsidiary, Kore Potash Limited, which was formerly listed on the
ASX under the ticker "K2P".

The original announcement was entitled 'UPDATED MINERAL RESOURCE FOR THE HIGH
GRADE KOLA DEPOSIT' dated 6 July 2017 (the "2017 Announcement").

This announcement contains additional information on pages 6 to 12 summarising
the material information set out in Appendix 1 relating to the Kola Mineral
Resource in accordance with ASX Listing Rule 5.8.1. No other material changes
have been made to the original announcement.

This announcement has been released alongside the Company's Optimised Kola
DFS, released today. The information in this document provides the basis for
the information in the Optimised Kola DFS.

Highlights

· More than half a billion tonnes of Sylvinite in the Measured and
Indicated categories at a grade of 35.4% KCl, which is on par with the highest
grade operating potash mines globally;

· Sylvinite of exceptional purity: less than 0.2% insoluble material
(typically >5% in comparable deposits globally) and less than 0.2%
magnesium. These qualities are highly desirable characteristics in potash
ores, supporting lower processing costs;

· The deposit is very shallow at less than 300 m depth. The Sylvinite
seams are extensive and have a thickness and continuity of grade that are
likely to be amenable to a high-productivity, low-cost mining method; and,

· The Mineral Resource provides the basis for the Optimised DFS,
announced today.

Figure 1. Map showing the location of the Kola and Dougou Mining Leases within
the Republic of Congo

André Baya, CEO of Kore, commented:

"From our 2017 MRE, we always knew that the Kola deposit is world-class. With
this 2025 announcement, our Competent Person only reconfirms that our data is
accurate, reliable and rightly used as the calculation basis for our Optimised
DFS.

With more than half a billion tonnes of Sylvinite, Kola should support a long
life-of-mine and at a grade of over 35% KCl, the deposit remains on par with
the world's highest grading operating potash mines. We anticipate that this,
coupled with the advantages offered by Kola's location, shallow depth, seam
thickness and continuity, could allow Kore to build one of the most profitable
potash mines globally. Furthermore, the Kola deposit remains open laterally in
most directions, creating further opportunity for resource expansion through
further drilling during the production phase."

Table 1. Sylvinite Mineral Resource for the Kola deposit

Prepared by independent mining industry consultants, the Met-Chem division of DRA Americas Inc., a subsidiary of the DRA Group, this table was first published in the 2017 Announcement and has not changed.

Notes: The Mineral Resources are reported in accordance with The Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves
(the "JORC Code", 2012 edition). Resources are reported at a cut-off grade of
10% KCl. Tonnes are rounded to the nearest 100 thousand. The average density
of the Sylvinite is 2.10 (g/cm3). Zones defined by structural anomalies have
been excluded. Mineral Resources which are not Ore Reserves do not have
demonstrated economic viability. The estimate of Mineral Resources may be
materially affected by environmental, permitting, legal, marketing, or other
relevant issues. Readers should refer to Appendix 1 for a more detailed
description of the deposit and Mineral Resource estimate. The Mineral
Resources are considered to have reasonable expectation for eventual economic
extraction using underground mining methods.

Sylvinite resource is 'open' laterally

The Inferred Sylvinite Mineral Resource stands at 340 Mt grading 34.0% KCl,
mostly hosted by the Upper and Lower Seam. Additional seismic data would be
required to potentially upgrade this material into the Indicated category.
Beyond this, the deposit is 'open' laterally to the east, southwest and south.

The potash seams

The Measured and Indicated Mineral Resource is hosted by four seams which are
flat to gently dipping (mostly less than 15 degrees). From uppermost these
are: The Hangingwall Seam (HWS), Upper Seam (US) and Lower Seam (LS), as shown
in Figure 2. The seams are hosted within a thick package of rock-salt. The
lower Footwall Seam (FWS) is an Inferred resource restricted to relatively
narrow zones and will not be considered for mining. Figures 24 to 27 of
Appendix 1 show the distribution of the Sylvinite in plan-view. The bulk of
the Measured and Indicated Mineral Resource is hosted by the Upper Seam
(representing 64% of the contained potash) which is largely continuous across
the deposit and has an average thickness of 4.0 metres. The Sylvinite HWS and
LS have an average thickness of 3.3 and 3.7 metres, respectively. The
Sylvinite is present in broad zones with a dominant northwest-southeast
orientation.

If present, Carnallitite occurs below the Sylvinite, within the seams.
Contacts between the Sylvinite and Carnallitite are always abrupt and the two
rock types are not inter-mixed, supporting a clear distinction in the resource
model and ultimately in the mine plan. A large Carnallitite Mineral Resource
estimate was also prepared (Table 9 in Appendix 1) but is not considered for
extraction.

The increased data available for the resource update enabled inclusion of 30
Mt of HWS into the Measured and Indicated Mineral Resource. At more than 55%
KCl, Sylvinite of the Hangingwall seam (HWS) is a candidate for the world's
highest grading potash seam.

Resource model and estimate

The Mineral Resource Estimate was prepared by independent resource industry
consultants Met-Chem division of DRA Americas Inc., a subsidiary of the DRA
Group - and reported in accordance with The Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (the "JORC Code", 2012
edition). Appendix 1 provides the required 'Checklist of Assessment and
Reporting Criteria'. Kore undertook interpretation of the potash layers and
other stratigraphic units and contacts in conjunction with the MSA Group of
Johannesburg.

The deposit modelling took advantage of the high quality of seismic data,
acquired by the Company in 2010 and 2011 and subsequently re-processed to a
high standard in 2016 by DMT Petrologic GmbH of Germany. The new seam model
and classification approach was driven by the drill-hole and re-processed
seismic data.

The Sylvinite model was developed by quantitative analysis of seam position
relative to the top of the Salt Member and to zones of relative salt
disturbance (RDS). The resulting model is illustrated in Figure 2. The small
(<5%) reduction in contained potash in the Measured and Indicated Mineral
Resource versus the 2012 estimate is primarily a result of a reduction in the
extent of the Indicated Mineral Resource envelope and by the application of a
dip-correction to the seam model. Structurally anomalous areas have been
removed from the resource. Further description of the resource model and
estimate is provided in Appendix 1.

Figure 2. Typical Cross section through the Kola deposit showing the potash
seams and main stratigraphic units.

Note: the 'S' or 'C' after HWS, US, LS, FWS denotes Sylvinite or Carnallitite.

The Mineral Resource is supported by a large number of cored drill-holes. In
total, the Company has drilled 52 holes at Kola, of which 46 reached target
depth, and 42 contained significant Sylvinite mineralization, as listed in
Table 6 of Appendix 1. Holes EK_46 to EK_52 were drilled after the effective
date of the 2012 Mineral Resource estimate.

ADDITIONAL INFORMATION - MATERIAL INFORMATION SUMMARY - LISTING RULE 5.8.1

Geological Interpretation

Recognition and correlation of potash and other important layers or contacts
between holes is straightforward and did not require assumptions to be made,
due the continuity and unique characteristics of each of the evaporite layers;
each being distinct when thickness, grade and grade distribution, and
stratigraphic position relative to other layers is considered. Further support
is provided by the reliable identification of 'marker' units within and at the
base of the evaporite cycles. Correlation is further aided by the downhole
geophysical data (Figure 18) clearly shows changes in mineralogy of the
evaporite layers and is used to validate or adjust the core logged depths of
the important contacts. The abrupt nature of the contacts, particularly
between the Rock-salt, Sylvinite and Carnallitite contributes to above.

Between holes the seismic interpretation is the key control in the form and
extent of the Sylvinite, in conjunction with the application of the geological
model. The controls on the formation of the Sylvinite is well understood and
the 'binary' nature of the potash mineralization allows an interpretation with
a degree of confidence that relates to the support data spacing, which in turn
is reflected in the classification. In this regard geology was relied upon to
guide and control the model, as described in detail in Appendix 1, section
3.5. Alternative interpretations were tested as part of the modeling process
but generated results that do not honor the drill-hole data as well as the
adopted model.

The following features affect the continuity of the Sylvinite or Carnallitite
seams, all of which are described further in Appendix 1, Section 3.5. By using
the seismic data and the drill-hole data, the Mineral Resource model captures
the discontinuities with a level of confidence reflected in the
classification.

• where the seams are truncated by the anhydrite

• where the Sylvinite pinches out becoming Carnallitite
or vice versa

• areas where the seams are leached within zones of
subsidence

Outside of these features, grade continuity is high reflecting the small range
in variation of grade of each seam, within each domain. Further description of
grade variation is provided in Appendix 1.

Sampling Techniques

Sampling was carried out according to a strict quality control protocol
beginning at the drill rig. Holes were drilled to PQ size (85 mm core
diameter) core, with a small number of holes drilled HQ size (63.5 mm core
diameter). Sample intervals were between 0.1 and 2.0 metres and sampled to
lithological boundaries. All were sampled as half-core except very recent
holes (EK_49 to EK_51) which were sampled as quarter core. Core was cut using
an Almonte© core cutter without water and blade and core holder cleaned down
between samples. Sampling and preparation were carried out by trained
geological and technical employees. Samples were individually bagged and
sealed.

A small number of historic holes were used in the Mineral Resource model; K6,
K18, K19, K20, K21. K6 and K18 were the original holes twinned by the Company
in 2010. The grade data for these holes was not used for the Mineral Resource
estimate but they were used to guide the seam model. The 2010 twin hole
drilling exercise validated the reliability of the geological data for these
holes (see Appendix 1, section 1.7).

Sub-sampling techniques and sample preparation

Excluding QA-QC samples 2368 samples were analysed at two labs in 44 batches,
each batch comprising between 20 and 250 samples. Samples were submitted in 46
batches and are from 41 of the 47 holes drilled at Kola. The other 6
drill-holes (EK03, EK_21, EK_25, EK_30, EK_34, EK_37) were either stopped
short of the evaporite rocks or did not intersect potash layers. Sample
numbers were in sequence, starting with KO-DH-0001 to KO-DH-2650 (EK_01 to
EK_44) then KO-DH-2741 to KO-DH-2845 (EK_46 and EK_47).

The initial 298 samples (EK_01 to EK_05) were analysed at K-UTEC in
Sondershausen, Germany and thereon samples were sent to Intertek- Genalysis in
Perth. Samples were crushed to nominal 2 mm then riffle split to derive a 100
g sample for analysis. K, Na, Ca, Mg, Li and S were determined by ICP-OES. Cl
is determined volumetrically. Insolubles (INSOL) were determined by filtration
of the residual solution and slurry on 0.45 micron membrane filter, washing to
remove residual salts, drying and weighing. Loss on drying by Gravimetric
Determination (LOD/GR) was also competed as a check on the mass balance.
Density was measured (along with other methods described in section 3.11)
using a gas displacement Pycnometer.

Drilling Techniques

Holes were drilled by 12- and 8-inch diameter rotary Percussion through the
'cover sequence', stopping in the Anhydrite Member and cased and grouted to
this depth. Holes were then advanced using diamond coring with the use of
tri-salt (K, Na, Mg) mud to ensure excellent recovery. Coring was PQ (85 mm
core diameter) as standard and HQ (64.5 mm core diameter) in a small number of
the holes.

Classification

Drill-hole and seismic data are relied upon in the geological modelling and
grade estimation. Across the deposit the reliability of the geological and
grade data is high. Grade continuity is less reliant on data spacing as within
each domain grade variation is small reflecting the continuity of the
depositional environment and 'all or nothing' style of Sylvinite formation.

It is the data spacing that is the principal consideration as it determines
the confidence in the interpretation of the seam continuity and therefore
confidence and classification; the further away from seismic and drill-hole
data the lower the confidence in the Mineral Resource classification, as
summarized in Table 2. In the assigning confidence category, all relevant
factors were considered, and the final assignment reflects the Competent
Persons view of the deposit.

Table 2. Description of requirements for the maximum extent of the

Measured, Indicated and Inferred classifications

Drill-hole requirement Seismic data requirement Classification extent
Measured Average of 1 km spacing Within area of close spaced 2010/2011 seismic data (100-200 m spacing) Not beyond the seismic requirement
1 to 2.5 km spaced 2010/2011 seismic data and1 to 2 km spaced oil industry Maximum of 1.5 km beyond the seismic data requirement if sufficient drill-hole

seismic data support
Indicated 1.5 to 2 km spacing
Few holes, none more than 2 km from another 1-3 km spaced oil industry seismic data Seismic data requirement and maximum of 3.5 km from drill- holes

Inferred

Sample Analysis Method

Quality of Assay Data and Laboratory Tests

For drill-holes EK_01 to EK_47, a total of 412 QAQC samples were inserted into
the batches comprising 115 field duplicate samples, 84 blank samples and 213
certified reference material (CRM) samples. Duplicate samples are the other
half of the core for the exact same interval as the original sample, after it
is cut into two. CRMs were obtained from the Bureau of Reference (BCR), the
reference material programme of the European Commission. Either river sand or
later barren Rock-salt was used for blank samples. These QA-QC samples make up
17% of the total number of samples submitted which is in line with industry
norms. Sample chain of custody was secure from point of sampling to point of
reporting.

Table 3 - Summary of QA-QC sample composition.

As confirmation of the accuracy of the API-derived KCl grades for EK_49 to
EK_51, samples for the intervals that were not taken for geotechnical
sampling, were sent to Intertek-Genalysis for analysis. The results are within
5% of the API-derived KCl and thickness, and so the latter was used.

Verification of Sampling and Assaying

As described in Appendix 1, section 1.6, 40 samples of a variety of grades and
drill-holes were sent for umpire analysis and as described, these support the
validity of the original analysis. Other validation comes from the routine
geophysical logging of the holes. Gamma data provides a very useful check on
the geology and grade of the potash and for all holes a visual comparison is
made in log form. API data for a selection of holes (EK_05, EK_13, EK_14,
EK_24) were formally converted to KCl grades, an extract of which is shown in
Figure 3. In all cases the API derived KCl supports the reported
intersections.

Figure 3. Example of KCl % from laboratory analysis (bars) compared with KCl
grades from API data.

Validation of historic drilling data

As mentioned above; K6, K18, K19, K20, K21 were used in the geological
modelling but not for the grade estimate. K6 and K18 were twinned in 2010 and
the comparison of the geological data is excellent, providing validation that
the geological information for the aforementioned holes could be used with a
high degree of confidence.

Estimation and Modelling Techniques

Table 4 and Table 5 provide the Mineral Resource for Sylvinite and
Carnallitite at Kola. This Mineral Resource replaces that dated 21 August
2012, prepared by CSA Global Pty Ltd. This update incorporates reprocessed
seismic data and additional drilling data. Table 10 and Table 11 provide the
Sylvinite and Carnallitite Mineral Resource from 2012. The updated Measured
and Indicated Mineral Resource categories are not materially different from
the 2012 estimate and is of slightly higher grade. The Inferred category has
reduced due to the reduction in the FWSS tonnage, following the updated
interpretation of it being present within relatively narrow lenses that are
more constrained than in the previous interpretation. There is no current plan
to consider the FWSS as a mining target and so the reduction in FWSS tonnage
is of no consequence to the project's viability.

Table 4. June 2017 Kola Mineral Resources for Sylvinite,

reported under JORC code 2012 edition, using a 10% KCl cut-off grade.

July 2017 - Kola Deposit Potash Mineral Resources - SYLVINITE
Million Tonnes KCl Mg Insolubles
% % %
Measured ‒ ‒ ‒ ‒

Hangingwall Seam
Indicated 29.6 58.5 0.05 0.16
Meas. + Ind. 29.6 58.5 0.05 0.16
Inferred 18.2 55.1 0.05 0.16
Measured 153.7 36.7 0.04 0.14

Upper Seam
Indicated 169.9 34.6 0.04 0.14
Meas. + Ind. 323.6 35.6 0.04 0.14
Inferred 220.7 34.3 0.04 0.15
Measured 62.0 30.7 0.19 0.12

Lower Seam
Indicated 92.5 30.5 0.13 0.13
Meas + Ind. 154.5 30.6 0.15 0.13
Inferred 59.9 30.5 0.08 0.11
Measured ‒ ‒ ‒ ‒

Footwall seam
Indicated ‒ ‒ ‒ ‒
Meas + Ind. ‒ ‒ ‒ ‒
Inferred 41.2 28.5 0.33 1.03

Total Measured + Indicated Sylvinite 507.7 35.4 0.07 0.14

Total Inferred Sylvinite 340.0 34.0 0.08 0.25

Notes: Tonnes are rounded to the nearest hundred thousand. The average density
of the Sylvinite is 2.10. Structural anomaly zones have been excluded. Mineral
Resources which are not Ore Reserves do not have demonstrated economic
viability. The estimate of Mineral Resources may be materially affected by
environmental, permitting, legal, marketing, or other relevant issues.

Table 5. July 2017 Kola Mineral Resources for Carnallitite,

reported under JORC code 2012 edition, using a 10% KCl cut-off grade.

July 2017 - Kola Deposit Potash Mineral Resources - CARNALLITITE
Million Tonnes KCl Mg Insolubles
% % %
Measured ‒ ‒ ‒ ‒

Hangingwall Seam
Indicated 26.6 24.6 7.13 0.11
Meas. + Ind. 26.6 24.6 7.13 0.11
Inferred 88.3 24.7 7.20 0.12
Measured 73.6 19.4 6.19 0.20

Upper Seam
Indicated 109.6 20.7 6.47 0.20
Meas. + Ind. 183.2 20.2 6.36 0.20
Inferred 414.2 21.3 6.41 0.12
Measured 267.7 16.9 5.37 0.16

Lower Seam
Indicated 305.3 17.5 5.52 0.16
Meas + Ind. 573.0 17.2 5.45 0.16
Inferred 763.9 16.6 5.20 0.12

Total Measured + Indicated 782.8 18.1 5.72 0.17

Carnallitite

Total Inferred Carnallitite 1,266.4 18.7 5.73 0.12

Notes: Tonnes are rounded to the nearest hundred thousand. The average density
of the Sylvinite is 1.73. Structural anomaly zones have been excluded. Mineral
Resources which are not Ore Reserves do not have demonstrated economic
viability. The estimate of Mineral Resources may be materially affected by
environmental, permitting, legal, marketing, or other relevant issues.

Cut-off parameters

For Sylvinite, a cut-off grade (COG) of 10% was determined by an analysis of
the Pre-feasibility and 'Phased Implementation study' operating costs analysis
and a review of current potash pricing. The following operating costs were
determined from previous studies per activity per tonne of MoP (95% KCl)
produced from a 33% KCl ore, with a recovery of 89.5%:

• Mining US$30/t

• Process US$20/t

• Infrastructure US$20/t

• Sustaining Capex US$15/t

• Royalties US$10/t

• Shipping US$15/t

For the purpose of the COG calculation, it was assumed that infrastructure,
sustaining capex, royalty and shipping do not change with grade (i.e. are
fixed) and that mining and processing costs vary linearly with grade. Using
these assumptions of fixed costs (US$60/t) and variable costs at 33% (US$50/t)
and a potash price of US$250/t, we can calculate a cut-off grade where the
expected cost of operations equals the revenue. This is at a grade of 8.6%
KCl. To allow some margin of safety, a COG of 10% is therefore proposed. For
Carnallitite, reference was made to the Scoping Study for Dougou which
determined similar operating costs for solution mining of Carnallitite and
with the application of a US$250/t potash price a COG of 10% KCl is
determined.

Mining Factors and assumptions

For the Kola MRE, it was assumed that all sylvinite greater with grade above
the cut-off grade except, for that within the delineated geological anomalies,
has reasonable expectation of eventual economic extraction, by conventional
underground mining. Geological anomalies were delineated from process 2D
seismic data.

The Kola Project has been the subject of scoping and feasibility studies which
found that economic extraction of 2 to 5m thick seams with conventional
underground mining machines is viable and that mining thickness as low as 1.8m
can be supported. Globally, potash is mined in similar deposits with seams of
similar geometry and form. The majority of the deposit has seam thickness well
above 1.8m; the average for the sylvinite HWS, US, LS and FWS is 3.3, 4.0, 3.7
and 6.6m respectively.

For the Mineral Resource Estimate a cut-off grade of 10% KCl was used for
sylvinite. The average grade of the deposit is considered of similar grade or
higher than the average grade of several operating potash mines. It is assumed
that dilution of 20 cm or as much as 10-15% of the seam thickness would not
impact the deposit viability significantly. The thin barren rock-salt layers
within the seams were included in the estimate as internal dilution

Metallurgical Factors and assumptions

Furthermore, metallurgical testwork was performed on all Sylvinite seams
(HWSS, USS, LSS and FWSS) at the Saskatchewan Research Council (SRC) which
confirmed the viability of processing the Kola ore by conventional flotation.

- ENDS -

For further information, please visit www.korepotash.com
(https://url.avanan.click/v2/___http:/www.korepotash.com___.YXAxZTpzaG9yZWNhcDphOm86NDI5NWQ0MWM3OTdhNzdkNGIzZGJjN2VhNmJiYjE0NGQ6Njo4Y2MwOjY0NWFiMWI2ZDM2NjMzN2FlYTU4YTNiM2VhYmU0NzljMGVkYjkzMWVjMjYzOGQxMmUyZDM2YTFhMTQwM2EwZTA6cDpGOk4)
or contact:

Kore Potash

Andre Baya, CEO
Andrey Maruta, CFO Tel: +44 (0) 20 3963 1776
Tavistock Communications Tel: +44 (0) 20 7920 3150

Emily Moss

Nick Elwes Josephine Clerkin

SP Angel Corporate Finance - Nomad and Broker Tel: +44 (0) 20 7470 0470

Ewan Leggat

Charlie Bouverat

Grant Barker
Shore Capital - Joint Broker Tel: +44 (0) 20 7408 4050

Toby Gibbs

James Thomas
Questco Corporate Advisory - JSE Sponsor Tel: +27 63 482 3802

Doné Hattingh

Forward-Looking Statements

This news release contains statements that are "forward-looking". Generally,
the words "expect," "potential", "intend," "estimate," "will" and similar
expressions identify forward-looking statements. By their very nature and
whilst there is a reasonable basis for making such statements regarding the
proposed placement described herein; forward-looking statements are subject to
known and unknown risks and uncertainties that may cause our actual results,
performance or achievements, to differ materially from those expressed or
implied in any of our forward-looking statements, which are not guarantees of
future performance. Statements in this news release regarding the Company's
business or proposed business, which are not historical facts, are "forward
looking" statements that involve risks and uncertainties, such as resource
estimates and statements that describe the Company's future plans, objectives
or goals, including words to the effect that the Company or management expects
a stated condition or result to occur. Since forward-looking statements
address future events and conditions, by their very nature, they involve
inherent risks and uncertainties. Actual results in each case could differ
materially from those currently anticipated in such statements.

Investors are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date they are made.

Competent Person Statement

The information in this announcement that relates to Mineral Resources is
based on information compiled or reviewed by, Garth Kirkham, P.Geo., who has
read and understood the requirements of the JORC Code, 2012 Edition. Mr.
Kirkham is a Competent Person as defined by the JORC Code, 2012 Edition,
having a minimum of five years of experience that is relevant to the style of
mineralization and type of deposit described in this announcement, and to the
activity for which he is accepting responsibility. Mr. Kirkham is member in
good standing of Engineers and Geoscientists of British Columbia (Registration
Number 30043) which is an ASX-Recognized Professional Organization (RPO). Mr.
Kirkham is a consultant engaged by Kore Potash Plc to review the documentation
for Kola Deposit, on which this announcement is based, for the period ended 29
October 2018. Mr. Kirkham has verified that this announcement is based on and
fairly and accurately reflects in the form and context in which it appears,
the information in the supporting documentation relating to preparation of the
review of the Mineral Resources.

APPENDIX 1 - JORC TABLE 1
Section 1: Sampling Techniques and Data

1.1 Sampling Techniques

KCl data for EK_49 to EK_51 was based on the conversion on calibrated API data
from downhole geophysical logging, as is discussed in Section 6. Subsequent
laboratory assay results for EK_49 and EK_51 support the API derived grades.

Figure 1 - Whole PQ-sized core shortly after drilling, Sylvinite clearly
visible as the orange-red rock type. The seam in this example is the
Hangingwall Seam Sylvinite comprised between 50 and 60% sylvite. The easily
identifiable and abrupt nature of the contacts is visible.

1.2 Drilling Techniques

Holes were drilled by 12 and 8 inch diameter rotary Percussion through the
'cover sequence', stopping in the Anhydrite Member and cased and grouted to
this depth. Holes were then advanced using diamond coring with the use of
tri-salt (K, Na, Mg) mud to ensure excellent recovery. Coring was PQ (85 mm
core diameter) as standard and HQ (64.5 mm core diameter) in a small number of
the holes.

1.3 Drill sample recovery

Core recovery was recorded for all cored sections of the holes by recording
the drilling advance against the length of core recovered. Recovery is between
95 and 100% for the evaporite and all potash intervals, except in EK_50 for
the Carnallitite interval in that hole (as grade was determined using API data
for that hole this is of no consequence). The use of tri-salt (Mg, Na, and K)
chloride brine to maximize recovery was standard. A fulltime mud engineer was
recruited to maintain drilling mud chemistry and physical properties. Core is
wrapped in cellophane sheet soon after it is removed from the core barrel, to
avoid dissolution in the atmosphere, and is then transported at the end of
each shift to a de-humidified core storage room where it is stored
permanently.

1.4 Logging

The entire length of each hole was logged, from rotary chips in the 'cover
sequence' and core in the evaporite. Logging is qualitative and supported by
quantitative downhole geophysical data including gamma, acoustic televiewer
images, density and caliper data which correlates well with the geological
logging. Figure 18 (#_bookmark17) shows a typical example geophysical data
plotted against lithology. Due to the conformable nature of the evaporite
stratigraphy and the observed good continuity and abrupt contacts, recognition
of the potash seams is straightforward and made with a high degree of
confidence. Core was photographed to provide an additional reference for
checking contacts at a later date.

Figure 2 Left: logging the core. Right: Labelling the cut core, one half for
analysis the other retained as a record

1.5 Sub-sampling techniques and sample preparation

The initial 298 samples (EK_01 to EK_05) were analysed at K-UTEC in
Sondershausen, Germany and thereon samples were sent to Intertek- Genalysis in
Perth. Samples were crushed to nominal 2 mm then riffle split to derived a 100
g sample for analysis. K, Na, Ca, Mg, Li and S were determined by ICP-OES. Cl
is determined volumetrically. Insolubles (INSOL) were determined by filtration
of the residual solution and slurry on 0.45 micron membrane filter, washing to
remove residual salts, drying and weighing. Loss on drying by Gravimetric
Determination (LOD/GR) was also competed as a check on the mass balance.
Density was measured (along with other methods described in section 3.11)
using a gas displacement Pycnometer.

1.6 Quality of Assay Data and Laboratory Tests

Table 1 Summary of QA-QC sample composition.

In addition, two batches of 'umpire' analyses were submitted to a second lab. The first batch comprised 17 samples initially analysed at K-UTEC sent to Intertek-Genalysis for umpire. The second umpire batch comprised 23 samples from Intertek-Genalysis sent to SRC laboratory in Saskatoon for umpire. The results are shown in
Figure 5 (#_bookmark2)
below and demonstrate excellent validation of the primary laboratory analyses.

Figure 5. Left: K-UTEC K2O original vs Genalysis K2O umpire check. Right:
Genalysis K2O original vs SRC K2O umpire check

EK_49 to EK_51

Potash intersections for EK_49 to EK_51 were partially sampled for
geotechnical test work and so were not available in full for chemical
analysis. Gamma ray CPS data was converted to API units which were then
converted to KCl % by the application of a conversion factor known, or
K-factor. The geophysical logging was carried out by independent downhole
geophysical logging company Wireline Workshop (WW) of South Africa, and data
was processed by WW. Data collection, data processing and quality control and
assurance followed a stringent operating procedure. API calibration of the
tool was carried out at a test-well at WW's base in South Africa to convert
raw gamma ray CPS to API using a coefficient for sonde NGRS6569 of 2.799 given
a standard condition of a diameter 150mm bore in fresh water (1.00gm/cc mud
weight).

To provide a Kola-specific field-based K-factor, log data were converted via a
K-factor derived from a comparison with laboratory data for drill- holes
EK_13, EK_14 and EK_24. In converting from API to KCl (%), a linear
relationship is assumed (no dead time effects are present at the count rates
being considered). In order to remove all depth and log resolution variables,
an 'area‐under‐the‐curve' method was used to derive the K factor. This
overcomes the effect of narrow beds not being fully resolved as well as the
shoulder effect at bed boundaries. For this, laboratory data was converted to
a wireline log and all values between ore zones were assigned zero. A block
was created (Figure 6) (#_bookmark3) that covered all data and both wireline
gamma ray log (GAMC) and laboratory data log were summed in terms of area
under the curves. From this like-for -like comparison a K factor of 0.074 was
calculated. In support if this factor, it compares well with the theoretical
K-factor derived using Schlumberger API to KCl conversion charts which would
be 0.0767 for this tool in hole of PQ diameter (125 mm from caliper data. As a
check on instrument stability over time, EK_24 is logged frequently. No drift
in the gamma-ray data is observed (Figure 7 (#_bookmark4) ).

Figure 6. Extract from work by Wireline Workshop comparing assay KCl% (grey
bars) with API data (brown line)

and the resulting API-derived KCl% (blue outlined bars) for previous
drill-holes.

This work is for the determination of the K-factor for the conversion from API
to KCl%, for drill-holes EK_49 to EK_51

Figure 7. Gamma ray plots for 'check' hole EK_24 over time plotted
super-imposed on each other as a check of tool stability

1.7 Verification of Sampling and Assaying

As described in section 1.6, 40 samples of a variety of grades and drill-holes
were sent for umpire analysis and as described, these support the validity of
the original analysis. Other validation comes from the routine geophysical
logging of the holes. Gamma data provides a very useful check on the geology
and grade of the potash and for all holes a visual comparison is made in log
form. API data for a selection of holes (EK_05, EK_13, EK_14, EK_24) were
formally converted to KCl grades, an extract of which is shown in Figure 8.
(#_bookmark5) In all cases the API derived KCl supports the reported
intersections.

Figure 8. Example of KCl % from laboratory analysis (bars) compared with KCl
grades from API data.

Validation of historic drilling data

1.8 Location of Data Points

A total of 50 Resource related drill-holes have been drilled by the Company;
EK_01 to EK_52. EK_37 and EK_48 were geotechnical holes. All of these holes
are listed in Table 5. (#_bookmark18) Table 6 (#_bookmark19) provides details
of Sylvinite intersections or absence of for all holes. Of the 50 Resource
holes, 4 stopped short above the Salt Member due to drilling difficulties. Of
the 46 Resource holes drilled into the Salt Member, all except 4 contained a
significant Sylvinite intersection.

The collars of all drill-holes up to EK_47 including historic holes were
surveyed by a professional land surveyor using a DGPS. EK_48 to EK_52 were
positioned with a handheld GPS initially (with elevation from the LIDAR data)
and later with a DGPS. All data is in UTM zone 32 S using WGS 84 datum.

Topography for the bulk of the Mineral Resource area is provided by high
resolution airborne LIDAR (Light Detection and Ranging) data collected in
2010, giving accuracy of the topography to <200 mm. Beyond this SRTM 90
satellite topographic data was used. Though of relatively low resolution, it
is sufficient as the deposit is an underground mining project.

1.9 Data Spacing and Distribution

Figure 9 (#_bookmark6) shows drill-hole and seismic data for Kola. Table 13
(#_bookmark35) provides a description of the support data spacing. In most
cases drill-holes are 1- 2 km apart. A small number of holes are much closer
such as EK_01 and K18, EK_04 and K6, EK_14 and EK_24 which are between 50 and
200 m apart.

Figure 9. Map showing the Kola Mineral Resource classification 'extents' (for
the US and LS), drill-holes and seismic lines

The drill-hole data is well supported by 186 km of high frequency closely
spaced seismic data acquired by the Company in 2010 and 2011 that was
processed to a higher standard in 2016. This data provides much guidance of
the geometry and indirectly the mineralogy of the potash seams between and
away from the holes, as well as allowing the delineation of discontinuities
affecting the potash seams. The combination of drill-hole data and the seismic
data supports geological modelling with a level of confidence appropriate for
the classification assigned to the Measured, Indicated and Inferred sections
of the deposit. The seismic data is described in greater detail below.

Seismic data and processing

Two sources of seismic data were used to support the Mineral Resource model:

1) Historical oil industry seismic data of various vintage and
acquired by several companies, between 1989 and 2006. The data is of low
frequency and as final SEG-Y files as PreStack Time Migrated (PreSTM) form.
Data was converted to depth by applying a velocity to best tie the top-of-salt
reflector with drill-hole data. The data allows the modelling of the top of
the Salt Member (base of the Anhydrite Member) and some guidance of the
geometry of the layers within the Salt Member.

2) The Company acquired 55 lines totalling 185.5 km of data (excluding
gaps on two lines) in 2010 and 2011. These surveys provide high frequency data
specifically to provide quality images for the relatively shallow depths
required (surface to approximately 800 m). Survey parameters are provided in
Table 2. (#_bookmark7) Data was acquired on strike (tie lines) and dip lines
as shown in Figure 9. (#_bookmark6) Within the Measured Mineral Resource area
lines are between 100 and 200 m apart. Data was re-processed in 2016, for the
2017 Mineral Resource update, by DMT Petrologic GmbH (DMT) of Germany. DMT
worked up the raw field data to poststack migration (PoSTM) and PreSTM format.
By an iterative process of time interpretation of known reflectors (with
reference to synthetic seismograms) the data was converted to Prestack depth
migrated (PSDM) form. Finally, minor adjustments were made to tie the data
exactly with the drill-hole data. Figure 10 (#_bookmark8) provides an example
of the final depth migrated data.

The Competent Person reviewed the seismic data and processing and visited DMT
in Germany for meetings around the final delivery of the data to the Company.

Table 2. 2010, 2011 Seismic Survey Parameters

Source Type IVI Minivibrator
Interval 8 m
Sweep Length 16000ms 16000ms
Receiver Interval 8 m
Recording System SERCEL 408 (2010), 428XL (2011)
Record Length 1000ms
Sample Rate 0.5 ms
Channels 200
Geometry Type Split Spread, roll on /off

Figure 10. Example of final Pre-stack depth migrated (PSDM) data with key
reflectors identified. 1: top of dolomite 2: Top of salt (base of anhydrite or
SALT_R) 3: position of roof of the Upper Seam roof (US_R). 4: base of cycle 8
(BoC8) 5: 'intrasalt' marker 6: base of Salt Member

1.10 Orientation of Data In Relation To Geological Structure

All exploration drill-holes were drilled vertically and holes were surveyed to
check for deviation. In almost all cases tilt was less than 1 degree (from
vertical). Dip of the potash seam intersections ranges from 0 to 45 degrees
with most dipping 20 degrees or less. All intersections with a dip of greater
than 15 degrees were corrected to obtain the true thickness, which was used
for the creation of the Mineral Resource model.

1.11. Sample Security

At the rig, the core is under full time care of a Company geologist and end of
each drilling shift, the core is transported by Kore Potash staff to a secure
site where it is stored within a locked room. Sampling is carried out under
the fulltime watch of Company staff; packed samples are transported directly
from the site by Company staff to DHL couriers in Pointe Noire 3 hours away.
From here DHL airfreight all samples to the laboratory. All core remaining at
site is stored is wrapped in plastic film and sealed tube bags, and within an
air-conditioned room (17-18 degrees C) to minimize deterioration (Figure 11)
(#_bookmark9) .

Figure 11. Kore Potash air-conditioned core shed in the Republic of Congo

1.12 Audits or Reviews

The Competent Person has visited site to review core and to observe sampling
procedures. As part of the Mineral Resource estimation, the drill-hole data
was thoroughly checked for errors including comparison of data with the
original laboratory certificates; no errors were found.

Section 2: Reporting of Exploration Results

Only criteria that are relevant are discussed and only if they are not
discussed elsewhere in the report

2.1 Mineral Tenement and Land Tenure Status

The Kola deposit is within the Kola Mining Lease (Figure 12) (#_bookmark10)
which is held 100% under the local company Kola Mining SARL which is in turn
held 100% by Sintoukola Potash SA RoC, of which Kore Potash holds a 97% share.
The lease was issued August 2013 and is valid for 25 years. There are no
impediments on the security of tenure.

2.2. Exploration Done By Other Parties

Potash exploration was carried out in the area in the1960's by Mines de
Potasse d' Alsace S.A in the 1960's. Holes K6, K18, K19, K20, K21 are in the
general area. K6 and K18 are within the deposit itself and both intersected
Sylvinite of the Upper and Lower Seam; it was the following up of these two
holes by Kore Potash (then named Elemental Minerals) that led to the discovery
of the deposit in 2012.

Oil exploration in the area has taken place intermittently from the 1950's
onwards by different workers including British Petroleum, Chevron, Morel et
Prom and others. Seismic data collected by some of these companies was used to
guide the evaporite depth and geometry within the Inferred Mineral Resource
area. Some oil wells have been drilled in the wider area such as Kola-1 and
Nkoko-1 (Figure 9) (#_bookmark6) .

2.3 Geology

Regional Geology and Stratigraphy

Figure 14 (#_bookmark11) provides a stratigraphic column for the area. The
potash seams are hosted by the 300-900 m thick Lower Cretaceous-aged (Aptian
age) Loeme Evaporite formation These sedimentary evaporite rocks belong to the
Congo (Coastal) Basin which extends from the Cabinda enclave of Angola to the
south well into Gabon to the north, and from approximately 50 km inland to
some 200-300 km offshore. The evaporites were deposited between 125 and 112
million years ago, within a post-rift 'proto Atlantic' sub-sea level basin
following the break-up of Gondwana forming the Africa and South America
continents.

Figure 12. Simplified Geological Map of the Congo Basin showing the location
of the Kola Deposit.

The evaporite is covered by a thick sequence of carbonate rocks and clastic
sediments of Cretaceous age to recent (Albian to Miocene), referred to as the
'Cover Sequence', which is between 170 and 270 m thick over the Kola deposit.
The lower portion of this Cover Sequence is comprised of dolomitic rocks of
the Sendji Formation. At the top of the Loeme Formation, separating the Cover
Sequence and the underlying Salt Member is a layer of anhydrite and clay
typically between 5 and 15 m thick and referred to as the Anhydrite Member. At
Kola, this layer rests un-conformably over the Salt-Member, as described in
more detail below.

Figure 13. Generalised stratigraphy of the Congo Basin, showing the Loeme
Evaporite Formation with the Lower Cretaceous post-rift sedimentary sequence.
From Brownfield, M.E., and Charpentier, R.R., 2006, Geology and total
petroleum systems of the West-Central Coastal Province (7203), West Africa:
U.S. Geological Survey Bulletin 2207-B, 52 p. Figure modified from Baudouy and
Legorjus (1991).

Figure 14 (#_bookmark11) provides a more detailed stratigraphic column for the
Kola area. Within the Salt Member, ten sedimentary-evaporative cycles (I to X)
are recognized with a vertical arrangement of mineralogy consistent with
classical brine-evolution models; potash being close to the top of cycles. The
Salt Member and potash layers formed by the seepage of brines unusually rich
in potassium and magnesium chlorides into an extensive sub sea-level basin.
Evaporation resulted in precipitation of evaporite minerals over a long period
of time, principally halite (NaCl), carnallite (KMgCl(3)·6H(2)O) and
bischofite (MgCl(2)·6H(2)O), which account for over 90% of the evaporite
rocks. Sylvinite formed by the replacement of Carnallitite within certain
areas. Small amounts of gypsum, anhydrite, dolomite and insoluble material
(such as clay, quartz, organic material) is present, typically concentrated in
relatively narrow layers at the base of the cycles (interlayered with
Rock-salt), providing useful 'marker' layers. The layers making up the Salt
Member are conformable and parallel or sub-parallel and of relatively uniform
thickness across the basin, unless affected by some form of discontinuity.

Figure 14. Lithological log for drill-hole EK_13 illustrating the stratigraphy of the Kola deposit. In this hole the Hangingwall seam (and overlying seams referred to as the Top Seams) are preserved and are of Sylvinite. Ordinarily these seams are 'truncated' by the unconformity at the base of the Anhydrite Member, and the Upper and Lower Seams are Sylvinite.

The potash layers

There are upwards of 100 potash layers within the Salt Member ranging from 0.1
m to over 10 m in thickness. The Kola deposit is hosted by 4 seams within
cycles 7, 8 and 9 (Figure 14) (#_bookmark11) , from uppermost these are;
Hangingwall Seam (HWS), Upper Seam (US), Lower Seam (LS), Footwall Seam (FWS).
Seams are separated by Rock-salt.

Individual potash seams are stratiform layers that can be followed across the
basin are of Carnallitite except where replaced by Sylvinite, as is described
below. The potash mineralogy is simple; no other potash rock types have been
recognized and Carnallitite and Sylvinite are not inter-mixed. The seams are
consistent in their purity; all intersections of Sylvinite are comprised of
over 97.5% euhedral or subhedral haliteand sylvite of medium to very coarse
grainsize (0.5 mm to ≥ 5 mm). Between 1.0 and 2.5% is comprised of anhydrite
(CaSO(4)) and a lesser amount of insoluble material. At Kola the potash layers
are flat or gently dipping and at depths of between 190 and 340 m below
surface.

Table 3. Summary of grade and thickness of the potash layers.

KCl % Thickness m
Weighted Range Average Range

Average
Sylvinite Hangingwall Seam 54.8 48.5-59.9 3.3 2.5-4.1
Carnallitite Hangingwall Seam 24.6 24.6-25.0 1.0 0.8-1.1

Sylvinite Upper Seam 35.5 23.8-41.6 4.0 1.0-8.1
Carnallitite Upper Seam 20.4 18.2-26.1 6.5 1.4-9.5

Sylvinite Lower Seam 30.5 8.4-40.4 3.7 0.9-7.8
Carnallitite Lower Seam 17.4 13.6-20.2 8.4 0.9-18.4

Sylvinite Footwall Seam 27.7 19.3-32.2 6.6 2.5-13.2

The contact between the Anhydrite Member and the underlying salt is an
unconformity (Figure 14 (#_bookmark11) and Figure 17) (#_bookmark16) and due
to the undulation of the layers within the Salt Member at Kola, the thickness
of the salt member beneath this contact varies. This is the principal control
on the extent and distribution of the seams at Kola and the reason why the
uppermost seams such as the Hangingwall Seam are sometimes absent, and the
lower seams such as the Upper and Lower Seam are preserved over most of the
deposit.

The most widely distributed Sylvinite seams at Kola are the US and LS, hosted
within cycle 8 of the Salt Member. These seams have an average grade of 35.5
and 30.5 % KCl respectively and average 3.7 and 4.0 m thick. The Sylvinite is
thinned in proximity to leached zones or where they 'pinch out' against
Carnallitite (Figure 17) (#_bookmark16) . They are separated by 2.5-4.5 m
thick Rock-salt layer referred to as the interburden halite (IBH). Sylvinite
Hangingwall Seam is extremely high grade (55-60% KCl) but is not as widely
preserved as the Upper and Lower Seam being truncated by the Anhydrite Member
over most of the deposit. Where it does occur it is approximately 60 m above
the Upper Seam and is typically 2.5 to

4.0 m thick. The Top Seams are a collection of narrow high-grade seams 10-15 m
above the Hangingwall Seam but are not considered for extraction at Kola as
they are absent (truncated by the Anhydrite Member) over almost all of the
deposit.

The Footwall Seam occurs 45 to 50 m below the Lower Seam. The mode of
occurrence is different to the other seams in that it is not a laterally
extensive seam, but rather elongate lenses with a preferred orientation,
formed not by the replacement of a seam, but by the 'accumulation' of
potassium at a particular stratigraphic position. It forms as lenses of
Sylvinite up to 15 m thick and always beneath areas where the Upper and Lower
seam have been leached. It is considered a product of re-precipitation of the
leached potassium, into pre-existing Carnallitite- Bischofitite unit at the
top of cycle 7.

Figure 18 (#_bookmark17) shows a typical intersection of US and LS along with
downhole geophysical images and laboratory analyses for key components. The
insoluble content of the seams and the Rock-salt immediately above and below
them is uniformly low (<0.2%) except for the FWS which has an average
insoluble content of 1%. Minor anhydrite is present throughout the Salt
Member, as 0.5-3 mm thick laminations but comprise less than 2.5% of the rock
mass of the potash layers.

Reflecting the quiescence of the original depositional environment, the
Sylvinite seams exhibit low variation in terms of grade, insoluble content,
magnesium content; individual sub-layers and mm thick laminations within the
seams can be followed across the deposit. The grade profile of the seams is
consistent across the deposit except for the FWS; the US is slightly higher
grade at its base, the LS slightly higher grade at its top (Figure 18)
(#_bookmark17) . The HWS is 50 to 60% sylvite (KCl) throughout (Figure 1)
(#_bookmark0) . The FWS, forming by introduction of potassium and more
variable mode of formation has a higher degree of grade variation and
thickness.

Sylvinite Formation

The original sedimentary layer and 'precursor' potash rock type is
Carnallitite and is preserved in an unaltered state in many holes drill-holes,
especially of LS and in holes that are lateral to the deposit. It is comprised
of the minerals carnallite (KMgCl(3)·6H(2)O), halite (NaCl) (these two
minerals comprise 97.5% of the rock) and minor anhydrite and insolubles
(<2.5%). The Carnallitite is replaced by Sylvinite by a process of
'outsalting' whereby brine (rich in dissolved NaCl) resulted in the
dissolution of carnallite, and the formation of new halite (in addition to
that which may already be present) and leaving residual KCl precipitating as
sylvite. This 'outsalting' process produced a chloride brine rich in Mg and
Na, which presumably continued filtering down and laterally through the Salt
Member. This process is illustrated in Figure 15. (#_bookmark13)

The grade of the Sylvinite is proportional to the grade of the precursor
Carnallitite. For example, in the case of the HWS when Carnallitite is 90
percent carnallite (and grades between 24 and 25 percent KCl), if all
carnallite was replaced by sylvite the resulting Sylvinite would theoretically
be 70.7 percent (by weight) sylvite. However, as described above the inflowing
brine introduced new halite into the potash layer, reducing the grade so that
the final grade of the Sylvinite of layer 3/IX is between 50 and 60 percent
KCl (sylvite).

Figure 15. The formation of the Sylvinite seam (2) is by a gradual leaching of
Cl, Mg (and minor K and Na) from the original Carnallitite seam (1); causing a
reduction in thickness, change in mineralogy and an increase in grade.

Figure 16. Photograph of (PQ size) core from an intersection of Upper Seam in
drill-hole EK_38. The seam is partially replaced; the upper part of the seam
(a to b) is Sylvinite (USS) and the lower part (between b and c) is
Carnallitite (USC). Classified as 'type B' seam (as per Table 4 (#_bookmark15)
below). The easily identifiable and abrupt nature of the contacts is visible.

Importantly, the replacement of Carnallitite by Sylvinite advanced laterally
and always in a top-down sense within the seam. This Sylvinite- Carnallitite
transition (contact) is observed in core (Figure 16 (#_bookmark14) and Figure
14) (#_bookmark11) and is very abrupt. Above the contact the rock is
completely replaced (Sylvinite with no carnallite) and below the contact the
rock is un-replaced (Carnallitite with no sylvite). In many instances the full
thickness of the seam is replaced by Sylvinite, in others the Sylvinite
replacement advanced only part-way down through the seam as in Figure
(#_bookmark14)

16. (#_bookmark14) Carnallitite is reliably distinguished from Sylvinite based
on any one of the following:

· Visually: Carnallitite is orange, Sylvinite is orange-red or
pinkish-red in colour and less vibrant.

· Gamma data: Carnallitite < 350 API, Sylvinite >350 API

· Magnesium data: Sylvinite at Kola does not contain more than 0.1%
Mg. Instances of up to 0.3% Mg within Sylvinite explained by 1-2 cm of
Carnallitite included in the lowermost sample where underlain by Carnallitite.
Carnallitite contains upwards to 5% Mg.

· Acoustic televeiwer and caliper data clearly identify Carnallitite
from Sylvinite (Figure (#_bookmark11) 14) (#_bookmark11) .

Based on the 'stage' of replacement, 5 seam types are recognized (Table 4
(#_bookmark15) ). The replacement process was extremely effective, no mixture
of Carnallitite and Sylvinite is observed, and within a seam, Carnallitite is
not found above Sylvinite.

Table 4. Type of seam based upon the thickness extent of the replacement of
the Carnallitite by Sylvinite and then leaching of Sylvinite.

Type Description
A No replacement. Full Carnallitite seam.
B Part replacement of the seam by Sylvinite, underlain by remaining Carnallitite
C Full thickness of the seam replaced by Sylvinite, but no further volume loss
D full replacement of the seam with continuation of out-salting and further
volume and K loss, giving a thinned Sylvinite seam
E complete or near complete loss of potash, residual Fe discoloration may allow
recognition of the original seam contacts, also referred to as a 'ghost' seam

It is thought that over geological time groundwater and/or water released by
the dehydration of gypsum (during conversion to anhydrite in the Anhydrite
Member) infiltrated the Salt Member under gravity, centred on areas of
'relatively disturbed stratigraphy' referred to as RDS zones (not to be
confused with subsidence anomalies, see section 3.5). In these areas the salt
appears to be gently undulating over broad zones, or forms more discrete
strike extensive gentle antiformal features. There appears to be a correlation
of these areas with small amounts undulation of the overlying strata and the
Salt Member and thickening of the Bischofitite at the top of Cycle 7 (some
45-50 m below the LS). The cause of the undulation appears to be related to
immature salt-pillowing and partial inversion in a 'thin-skinned' extensional
setting.

Figure 17 (#_bookmark16) is a cross-section through a portion of the Kola
deposit and illustrates many of these features. The process appears to have
been very gradual and non-destructive; where leached, the salt remains in-tact
and layering is preserved. Brine or voids are not observed. Fractures within
the Salt Member appear to be restricted to areas of localized subsidence, as
observed in potash deposits mined elsewhere, and described in more detail in
section 3.5.

Within and lateral to the RDS zones, brine moved downward then laterally,
preferentially along the thicker higher porosity Carnallitite layers,
replacing the carnallite with sylvite (as described in preceding text) 10s to
100's metres laterally and to a depth of 80-90 m below the Anhydrite Member.
Beyond the zone affected by sylvite replacement, the potash is of unaltered
primary Carnallitite. In the intermediate zone, the lower part of the layer
may not be replaced supporting a lateral then 'top-down' replacement of the
seams. For the most part the US is 'full' (fully replaced by Sylvinite), and
the LS more often than not is Carnallitite especially within synformal areas
giving rise to pockets or troughs of Carnallitite (Figure 17) (#_bookmark16) .
The HWS, being close to the anhydrite is only preserved in synformal areas
where it is always Sylvinite (being close to the top of the Salt Member), or
lateral to the main deposit where it is likely to be Carnallitite, relating to
the broader control on the zone of Sylvinite formation discussed below.

Figure 17. Typical Cross-section through the Kola deposit. The section shows
the Mineral Resource model (I.e. it is not schematic) Note the 4 x vertical
exaggeration. Sylvinite shown in pink. Carnallitite in green. Explanation of
the annotations: a) centre of an RDS zone of the discrete antiformal type with
development of FWSS at the top of the cycle 7 Bischofitite. Within it, the US
and LS are leached. Subsidence of the overlying strata is apparent and in this
case the zone is also recognized as subsidence anomaly excluded from the
resource. b) broad pocket or trough where HWSS is preserved with lateral
truncation of the seam against the Anhydrite Member. Beneath the HWSS the US
and LS are Carnallitite. c) broad RDS zone, within which USS and LSS are well
developed. The LSS is underlain by a thin layer of Carnallitite (LSC).

Deposit-scale structural Control

Some of the longer seismic lines show that the relative disturbance of the
salt over much of Kola relates to the 'elevation' of the stratigraphy due to
the formation of a northwest-southeast orientated horst block, bound either
side by half-graben. The horst block referred to as the 'Kola High' and is
approximately 8 km wide and at least 20 km in length (Figure 12)
(#_bookmark10) . Lateral to this 'high' Sylvinite is rarely found except
immediately beneath (within 5-10 m of) the Anhydrite Member.

Figure 18. Extract from a typical geological log with downhole geophysical
data (left: gamma data, centre: acoustic televiewer image). Grade (KCl %) bar
chart on right with values. Photo cross-references: a) USS b) Rock-salt of the
'interburden halite' c) LSS. The red intervals in the geological column are
Sylvinite and grey are Rock-salt.

2.4 Drill-Hole Information

All drill-hole collar information for holes relevant to the Mineral Resource
estimate is provided in Table 6, (#_bookmark19) including historic holes.
Hydrological drill-holes are excluded as they were drilled to a shallow depth.
All holes except one were drilled vertically and deflection from this angle
was less than 3 degrees for almost all holes. Holes were surveyed with a
gyroscope or magnetic deviation tool to obtain downhole survey data.

Table 5. Collar positions for recent holes. Projection: UTM zone 32 S Datum:
WGS 84. All holes were drilled vertically except for EK_37 geotechnical hole.

BH ID Depth East North elevation Azimuth Dip Collar survey
EK_01 609.35 797604.55 9547098.68 41.43 - -90 DGPS
EK_02 309 798211.65 9546225.64 53.99 - -90 DGPS
EK_03 271.4 798686.74 9545549.28 24.66 - -90 DGPS
EK_04 440.46 799721.78 9543865.33 34.45 - -90 DGPS
EK_05 315.15 799235.09 9544693.43 38.32 - -90 DGPS
EK_06 650.9 800284.11 9542829.85 49.4 - -90 DGPS
EK_07 342.1 796505.2 9548735.45 26.09 - -90 DGPS

EK_08 329.55 796493.94 9546975.9 30.42 - -90 DGPS
EK_09 309.2 797116.04 9547873.21 29.91 - -90 DGPS
EK_10 342.25 800424 9544635 45.1 - -90 DGPS
EK_11 318.2 799950.1 9545480.55 29.01 - -90 DGPS
EK_12 347.2 795852.49 9547881.26 19.64 - -90 DGPS
EK_13 636 798683.02 9543651.32 47.39 - -90 DGPS
EK_14 383.6 799337.27 9542686.57 43.83 - -90 DGPS
EK_15 336.33 797168.26 9546244.66 34.12 - -90 DGPS
EK_16 588 799441.27 9546375.17 24.53 - -90 DGPS
EK_17 337.6 797507.23 9546423.04 45.84 - -90 DGPS
EK_18 317.45 794976.62 9547596.23 17.33 - -90 DGPS
EK_19 302.06 798396.48 9548055.22 38.47 - -90 DGPS
EK_20 320.45 795322.6 9548799.75 25.12 - -90 DGPS
EK_21 209.88 795928.17 9547951.21 18.14 - -90 DGPS
EK_22 378.16 800876.83 9541992.75 31.92 - -90 DGPS
EK_23 362.45 801320.4 9542828.09 35.14 - -90 DGPS
EK_24 345.22 799462.12 9542814.67 38.77 - -90 DGPS
EK_25 287.3 797864.56 9541351.31 36.31 - -90 DGPS
EK_26 383.25 796908.88 9542686.81 37.31 - -90 DGPS
EK_27 365.35 803063.39 9542099.4 34.08 - -90 DGPS
EK_28 339.22 797998.95 9544406.69 37.17 - -90 DGPS
EK_29 368.4 801309.48 9541101.01 27.44 - -90 DGPS
EK_30 237.6 801888.23 9542032.48 14.91 - -90 DGPS
EK_31 344.25 797969.27 9548724.19 35.17 - -90 DGPS
EK_32 302.3 795475.7 9550547.55 18.2 - -90 DGPS
EK_33 332.3 794740.62 9548509.08 27.15 - -90 DGPS
EK_34 264.2 798987.28 9547333.75 53.08 - -90 DGPS
EK_35 278.3 795573.12 9546521.7 23.46 - -90 DGPS
EK_36 353.3 796814.83 9544913.12 34.2 - -90 DGPS
EK_37 257.5 799616 9544212 34 243 -72 DGPS
EK_38 335.3 793905.57 9547076.1 17.21 - -90 DGPS
EK_39 350.35 801914.25 9544206.86 42.46 - -90 DGPS
EK_40 343.25 799497.66 9541413.9 44.69 - -90 DGPS
EK_41 329.4 803046.56 9540983.55 11.4 - -90 DGPS
EK_42 353.4 794865.16 9545182.98 34.89 - -90 DGPS
EK_43 360.9 793004.43 9545808.29 20.11 - -90 DGPS
EK_44 317.25 792925.71 9547953.53 20.36 - -90 DGPS
EK_45 344.35 791897.51 9546839.83 25.72 - -90 DGPS
EK_46 260.37 792742.42 9544772.3 14.35 - -90 DGPS
EK_47 291.2 790593.2 9547860.11 26.08 - -90 DGPS
EK_48 217.5 798852 9545167 51 - -90 GPS and LIDAR
EK_49 349.7 797950 9543242 48.3 - -90 GPS and LIDAR
EK_50 322.8 798331 9545613 27.16 - -90 GPS and LIDAR
EK_51 326.5 794805 9546190 21.6 - -90 GPS and LIDAR

Table 6. Sylvinite intersections in all drill-holes drilled at Kola to date,
also identifying holes where the seam was absent or the hole stopped short of
the target depth.

Thicknesses have been corrected for dip where necessary so that they are can
be considered true thickness. For explanation of seam abbreviations refer to
Table 7. (#_bookmark20)

Drill-hole Depth from m Depth To m True Thickness m Seam K2O % KCl % Mg % Insol %
EK_01 273.53 277.7 4.17 US 26.28 41.62 0.05 0.08
EK_01 281.07 283.9 2.83 LS 24.08 38.14 0.27 0.07
EK_02 274.77 276.32 1.55 LS 5.30 8.39
EK_03 hole stopped short of Salt Member
EK_04 285.97 290.5 4.53 US 21.42 33.92 0.03 0.10
EK_04 293.58 294.45 0.87 LS 23.01 36.44 1.13 0.08
EK_05 274.65 279.08 4.43 US 23.49 37.19 0.07 0.08
EK_06 275 282 6.18 US 24.47 38.76 0.03 no data
EK_07 238.44 243.64 5.20 US 21.46 33.99 0.03 no data
EK_07 248.66 249.85 1.19 LS 17.83 28.24 0.03 no data
EK_08 246.7 247.7 1.00 US 20.48 32.43 0.05 no data
EK_08 257.56 258.92 1.36 LS 14.10 22.32 0.57 no data
EK_09 246.31 252.61 4.45 US 21.72 34.40 0.03 no data
EK_09 257 258.5 1.27 LS 21.32 33.77 1.34 no data
EK_10 275.06 279.25 3.88 US 26.48 41.93 0.02 no data
EK_10 282.25 288.16 5.71 LS 19.39 30.71 0.10 no data
EK_11 293 302.07 9.07 FWS 15.96 25.27 0.04 no data
EK_11 233.12 236.03 2.44 LS 15.76 24.95 0.03 no data
EK_12 247.2 251.71 4.51 US 24.86 39.37 0.01 no data
EK_12 255.74 260.65 4.91 LS 18.13 28.72 0.04 no data
EK_13 258.74 262.47 3.73 HWS 34.35 54.41 0.11 no data
EK_14 294.71 299.05 4.34 US 21.91 34.69 0.13 no data
EK_15 265.83 269.8 3.21 US 22.56 35.72 0.03 no data
EK_16 298.39 300.92 2.53 FWS 12.08 19.13 0.03 no data
EK_17 326.42 329.1 2.68 FWS unsampled
EK_17 256.85 261.03 3.20 US 22.65 35.87 0.02 0.17
EK_17 263.93 269.07 4.21 LS 19.79 31.34 0.01 0.10
EK_18 286.59 299.82 13.23 FWS 19.24 30.48 0.08 1.77
EK_19 278.22 282.76 4.54 US 21.59 34.19 0.02 0.09
EK_19 285.9 288.29 2.39 LS 20.96 33.20 0.03 0.07
EK_20 245.85 249.96 4.11 US 23.90 37.85 0.05 0.11
EK_21 hole stopped short of Salt Member
EK_22 no Sylvinite seams
EK_23 296.32 300.36 4.04 US 23.51 37.24 0.02 0.08
EK_24 261.22 267.48 6.05 US 24.85 39.36 0.03 0.11
EK_25 no Sylvinite seams
EK_26 261.05 261.6 0.55 HWS unsampled
EK_26 311.25 313.68 2.39 US 17.93 28.40 0.04 0.15
EK_27 306.32 310.22 3.90 US 25.34 40.13 0.01 0.13
EK_27 313.15 318.09 4.94 LS 18.89 29.92 0.03 0.09
EK_28 241.68 249.82 6.75 US 22.17 35.11 0.02 0.12
EK_28 255.14 262.97 6.49 LS 20.03 31.72 0.03 0.11
EK_29 291.2 292.87 1.67 US 15.05 23.83 0.06 0.18
EK_30 hole stopped short of Salt Member

EK_31 no Sylvinite seams
EK_32 290.67 295.32 4.65 FWS 18.02 28.54 0.03 1.35
EK_33 214.9 217.79 2.89 HWS 33.61 53.22 0.02 0.14
EK_33 274 277.54 3.54 US 20.30 32.16 0.03 0.20
EK_34 hole stopped short of Salt Member
EK_35 264.03 269.3 4.95 FWS 17.86 28.29 0.04 1.21
EK_36 281.1 285.75 4.65 US 19.17 30.37 0.02 0.14
EK_37 geotechnical hole (stopped above Salt Member)
EK_38 209.6 212.06 1.77 HWS 30.60 48.46 0.03 0.17
EK_38 265.8 268.79 2.99 US 22.73 36.00 0.03 0.19
EK_39 342.08 344.92 2.84 FWS 13.10 20.74 0.33 1.36
EK_39 286.82 290.5 3.68 US 21.94 34.75 0.03 0.19
EK_39 293.49 298.63 5.14 LS 17.94 28.40 0.05 0.17
EK_40 279.14 286.11 6.97 LS 17.80 28.19 0.01 0.09
EK_41 319.85 325.8 5.95 FWS 20.30 32.15 0.03 1.43
EK_41 267.38 269.92 2.24 LS 14.42 22.84 0.02 0.11
EK_42 287.4 291.71 4.00 US 23.45 37.13 0.01 0.10
EK_42 294.96 298.37 3.16 LS 22.09 34.99 0.01 0.08
EK_43 222.58 225.69 3.11 HWS 37.82 59.89 0.04 0.14
EK_44 296 305.25 9.25 FWS 16.91 26.79 0.04 1.14
EK_44 231.65 235.5 3.46 LS 20.25 32.07 0.03 0.18
EK_45 196.48 200.23 3.75 HWS 34.22 54.19 0.04 no data
EK_46 218.95 220.03 1.08 US 16.90 26.76 0.03 0.16
EK_46 227 231.92 4.92 LS 23.60 37.38 0.02 0.09
EK_47 216.83 219.34 2.51 US 24.49 38.78 0.03 0.12
EK_47 224.33 226.26 1.93 LS 25.50 40.39 0.06 0.08
EK_48 geotechnical hole (stopped above Salt Member)
EK_49 255.85 259.91 4.06 HWS 37.19 58.90 no data no data
EK_49 318.3 319.57 1.27 US 16.23 25.70 no data no data
EK_50 252.57 254.43 1.86 US 17.01 26.94 no data no data
EK_51 267.45 272.35 4.72 US 23.26 36.84 no data no data
EK_51 276.1 281.63 5.34 LS 17.83 28.23 no data no data
EK_52 no Sylvinite seams

2.5 Data Aggregation methods

For the reporting of seam grades and thickness, the standard 'length-weighted'
averaging method was used to determine the grade of the full thickness of each
drilling intersection: each sample grade is multiplied by its length (in
metres) then the sum of these is divided by the combined thickness.

The top and base of the seam is abrupt visually and in terms of grade and so
the determination of the interval from and to depth (and thus thickness) is
straightforward.

Each seam is comprised of sub-layers that are either mineralised sylvinite (or
carnallitite) or rock-salt (halite). The sub-layers of high grade comprise
over 70-80% of the seam being thicker than the narrow sub-layers of rock-salt.
The high grade intervals are relatively consistent in grade and can be
correlated hole-to-hole; there is no inappropriate inclusion of short
high-grade material within reported intervals.

No capping of high or low grade material was carried out as it is not
justified given the absence of anomalously high or ow grade areas or
intervals. The range of grades for each seam is relatively low and consistent.

No metal equivalents were calculated.

2.6 Relationship between mineralisation widths and intercept lengths

Generally the seams have a low angle of dip and no correction was deemed
necessary for reporting of exploration results as the intersected length is
not materially different from the true thickness. For the Mineral Resource
Estimate, because of the large volume informed by each drillhole, as a
conservative measure the few mineralised intersections where the dip of the
seam is 15 degrees or greater were corrected to obtain true thickness. The dip
corrected thickness was used in the Mineral Resource Estimate.

2.7 Diagrams

Maps, diagrams, cross-sections, and other images are provided in this
document.

2.8 Balanced Reporting

Table 6 provides the intersections of the sylvinite seams for all drillholes.

2.9 Other Substantive exploration data

There has been a large amount of work completed to support the exploration
results including downhole gamma-ray logging and acoustic televiewer logging,
2D seismic surveys, mineralogical work, process test work, bulk density work,
hydrogeological test work, geotechnical test work, largely completed to
support the Pre-Feasibility and the Definitive Feasibility Study.

2.10 Further Work

If further conversion of Indicated resources to Measured and Inferred to
Indicated Mineral Resource is deemed important, additional seismic data would
need to be acquired. Furthermore, the deposit is open laterally, in places to
the west and east (though in the case of the latter is limited by the Mining
Lease boundary) and probably to the greatest extent to the southeast, along
the strike of the Kola High. Additional drilling and seismic data may allow
the delineation of additional resources in these areas if results of the work
are positive

Section 3: Estimation and Reporting of Mineral Resources

3.1 Database Integrity

Geological data is collected in hardcopy then captured digitally by data
entry. All entries are thoroughly checked. During import into Micromine©
software, an error file is generated identifying any overlapping intervals,
gaps and other forms of error. The data is then compared visually in the form
of strip logs against geophysical data.

Laboratory data was imported into an Access database using an SQL driven
software, to sort QA-QC samples and a check for errors is part of the import.
Original laboratory result files are kept as a secure record. For the Mineral
Resource model a 'stratigraphic file' was generated, as synthesis of key
geological units, based on geological, geophysical and assay data. The
stratigraphic file was then used as a key input into the Mineral Resource
model; every intersection and important contact was checked and re-checked, by
visual comparison with the other data types in log format. Kore Potash is in
the process of creating an updated database, to include the most recent
geology and assay data.

For the process of setting up a Mineral Resource database, Met-Chem division
of DRA Americas Inc., a subsidiary of the DRA Group underwent a rigorous
exercise of checking the database, including a comparison with the original
laboratory certificates. Once an explanation of the files had had been
provided, no errors were found with the assay or stratigraphic data, or with
the other data types imported (collar, survey, geophysics). The database is
considered as having a high degree of integrity.

3.2 Site Visits

The Competent Person visited the project from the 5-7 November 2016 to view
drill-hole sites, the core shed and sample preparation area. Explanation of
all procedures were provided by the Company, and a procedural document for
core logging, marking and sampling reviewed. Time was spent reviewing core and
hard copy geological logs. All was found to meet or exceed the industry
standards.

3.3 Geological Interpretation

Recognition and correlation of potash and other important layers or contacts
between holes is straightforward and did not require assumptions to be made,
due the continuity and unique characteristics of each of the evaporite layers;
each being distinct when thickness, grade and grade distribution, and
stratigraphic position relative to other layers is considered. Further support
is provided by the reliable identification of 'marker' units within and at the
base of the evaporite cycles. Correlation is further aided by the downhole
geophysical data (Figure 18) (#_bookmark17) clearly shows changes in
mineralogy of the evaporite layers and is used to validate or adjust the core
logged depths of the important contacts. The abrupt nature of the contacts,
particularly between the Rock-salt, Sylvinite and Carnallitite contributes to
above.

Between holes the seismic interpretation is the key control in the form and
extent of the Sylvinite, in conjunction with the application of the geological
model. The controls on the formation of the Sylvinite is well understood and
the 'binary' nature of the potash mineralization allows an interpretation with
a degree of confidence that relates to the support data spacing, which in turn
is reflected in the classification. In this regard geology was relied upon to
guide and control the model, as described in detail section 3.5. Alternative
interpretations were tested as part of the modeling process but generated
results that do not honor the drill-hole data as well as the adopted model.

The following features affect the continuity of the Sylvinite or Carnallitite
seams, all of which are described further in Section 3.5 and are illustrated
in Figure 17. (#_bookmark16) By using the seismic data and the drill-hole
data, the Mineral Resource model captures the discontinuities with a level of
confidence reflected in the classification.

• where the seams are truncated by the anhydrite

• where the Sylvinite pinches out becoming Carnallitite or vice
versa

• areas where the seams are leached within zones of subsidence

Table 7. An explanation of seam and lithological nomenclature and
abbreviations

Potash seams Seam (where undifferentiated) Where Sylvinite Where Carnallitite
Hangingwall Seam HWS HWSS HWSC
Upper Seam US USS USC
Lower Seam LS LSS LSC
Footwall Seam FWS FWSS FWSC

Post-fix to identify roof or floor
Upper Seam (undifferentiated) roof US_R
Upper Seam (undifferentiated) floor US_F
Upper Seam Sylvinite roof USS_R
Upper Seam Sylvinite floor USS_F
Lower Seam roof LS_R
And application of _R or _F to other seams

Other stratigraphic units and surfaces
Salt Roof (base of Anhydrite Member) SALT_R
Base of cycle 8 marker BoC8
Cycle 7 Bischofitite Cy7B
Interburden halite (Rock salt between the US and LS) IBH

seams that are not underlain by Carnallitite full Sylvinite
seams that are not underlain by Sylvinite full Carnallitite

3.4 Dimensions

In its entirety, the deposit is 14 km in length (deposit scale strike) and 9
km in width. The shallowest point of the upper most Sylvinite (of the HWS) is
approximately 190 metres below surface. The depth to the deepest Sylvinite (of
the FWS) is approximately 340 metres below surface. The thickness of the seams
is summarized in Table 3 (#_bookmark12) and the distribution of the seams in
Figure 24 (#_bookmark30) to Figure 27. (#_bookmark32)

3.5 Estimation and Modelling Techniques

Table 8 (#_bookmark21) and Table 9 (#_bookmark22) provide the Mineral Mineral
Resource for Sylvinite and Carnallitite at Kola. This Mineral Mineral Resource
replaces that dated 21 August 2012, prepared by CSA Global Pty Ltd. This
update incorporates reprocessed seismic data and additional drilling data.
Table (#_bookmark23) 10 (#_bookmark23) and Table 11 (#_bookmark24) provide the
Sylvinite and Carnallitite Mineral Mineral Resource from 2012. The updated
Measured and Indicated Mineral Mineral Resource categories are not materially
different from the 2012 estimate and is of slightly higher grade. The Inferred
category has reduced due to the reduction in the FWSS tonnage, following the
updated interpretation of it being present within relatively narrow lenses
that are more constrained than in the previous interpretation. There is no
current plan to consider the FWSS as a mining target and so the reduction in
FWSS tonnage is of no consequence to the project's viability.

Table 8. June 2017 Kola Mineral Resources for Sylvinite, reported under JORC
code 2012 edition, using a 10% KCl cut-off grade.

July 2017 - Kola Deposit Potash Mineral Resources - SYLVINITE
Million Tonnes KCl Mg Insolubles
% % %
Measured ‒ ‒ ‒ ‒

Hangingwall Seam
Indicated 29.6 58.5 0.05 0.16
Meas. + Ind. 29.6 58.5 0.05 0.16
Inferred 18.2 55.1 0.05 0.16
Measured 153.7 36.7 0.04 0.14

Upper Seam
Indicated 169.9 34.6 0.04 0.14
Meas. + Ind. 323.6 35.6 0.04 0.14
Inferred 220.7 34.3 0.04 0.15
Measured 62.0 30.7 0.19 0.12

Lower Seam
Indicated 92.5 30.5 0.13 0.13
Meas + Ind. 154.5 30.6 0.15 0.13
Inferred 59.9 30.5 0.08 0.11
Measured ‒ ‒ ‒ ‒

Footwall seam
Indicated ‒ ‒ ‒ ‒
Meas + Ind. ‒ ‒ ‒ ‒
Inferred 41.2 28.5 0.33 1.03

Total Measured + Indicated Sylvinite 507.7 35.4 0.07 0.14

Total Inferred Sylvinite 340.0 34.0 0.08 0.25

Notes: Tonnes are rounded to the nearest hundred thousand. The average density
of the Sylvinite is 2.10. Structural anomaly zones have been excluded. Mineral
Resources which are not Mineral Reserves do not have demonstrated economic
viability. The estimate of Mineral Resources may be materially affected by
environmental, permitting, legal, marketing, or other relevant issues.

Table 9. July 2017 Kola Mineral Resources for Carnallitite, reported under
JORC code 2012 edition, using a 10% KCl cut-off grade.

July 2017 - Kola Deposit Potash Mineral Resources - CARNALLITITE
Million Tonnes KCl Mg Insolubles
% % %
Measured ‒ ‒ ‒ ‒

Hangingwall Seam
Indicated 26.6 24.6 7.13 0.11
Meas. + Ind. 26.6 24.6 7.13 0.11
Inferred 88.3 24.7 7.20 0.12
Measured 73.6 19.4 6.19 0.20

Upper Seam
Indicated 109.6 20.7 6.47 0.20
Meas. + Ind. 183.2 20.2 6.36 0.20
Inferred 414.2 21.3 6.41 0.12
Measured 267.7 16.9 5.37 0.16

Lower Seam
Indicated 305.3 17.5 5.52 0.16
Meas + Ind. 573.0 17.2 5.45 0.16
Inferred 763.9 16.6 5.20 0.12

Total Measured + Indicated 782.8 18.1 5.72 0.17

Carnallitite

Total Inferred Carnallitite 1,266.4 18.7 5.73 0.12

Notes: Tonnes are rounded to the nearest hundred thousand. The average density
of the Sylvinite is 1.73. Structural anomaly zones have been excluded. Mineral
Resources which are not Mineral Reserves do not have demonstrated economic
viability. The estimate of Mineral Resources may be materially affected by
environmental, permitting, legal, marketing, or other relevant issues.

August 2012 - previous Mineral Resource Estimates

Table 10. August 2012 Kola Mineral Resources for Sylvinite - now replaced by
the June 2017 Mineral Resource estimate

August 2012 - Kola Deposit Potash Mineral Resource - SYLVINITE
Million Tonnes KCl
%
Measured ‒ ‒

Hangingwall Seam
Indicated ‒ ‒
Meas. + Ind. ‒ ‒
Inferred 47 55.0
Measured 171 35.6

Upper Seam
Indicated 159 34.9
Meas. + Ind. 330 35.2
Inferred 96 34.5
Measured 93 30.4

Lower Seam
Indicated 150 30.2
Meas. + Ind. 243 30.3
Inferred 107 30.3
Measured ‒ ‒

Footwall Seam
Indicated ‒ ‒
Meas. + Ind. ‒ ‒
Inferred 225 27.9

Total Measured + Indicated sylvinite 573 33.1
Total Inferred sylvinite 475 32.5

Table 11. August 2012 Kola Mineral Resources for Carnallitite - now replaced
by the June 2017 Mineral Resource estimate

August 2012 - Kola Deposit Potash Mineral Resource - CARNALLITITE
Million Tonnes KCl
%
Measured 74 20.3

Upper Seam Carnallite
Indicated 151 21.0
Meas. + Ind. 225 20.8
Inferred 182 21.3
Measured 221 17.0

Lower Seam Carnallite
Indicated 298 17.5
Meas. + Ind. 519 17.3
Inferred 291 17.3

Total Measured + Indicated Carnallitite 744 18.4

Total Inferred Carnallitite 473 18.8

Mineral Resource modelling

As described in section 3.3, the spatial application of the geological model
was central to the creation of the Mineral Resource model. Geological controls
were used in conjunction with the seismic data interpretation. The process
commenced with the interpretation of the depth migrated drill-hole-tied
seismic data in Micromine 2013 © involving the following. Table 7
(#_bookmark20) provides an explanation of abbreviations used in text.

1. Interpretation of the base of anhydrite surface or salt roof (SALT_R)
which is typically a distinct seismic event (Figure (#_bookmark8) 10)
(#_bookmark8) .

2. Interpretation of base of salt, the 'intra-salt marker' and 'base
cycle 8' (BoC8) markers. Based on synthetic seismograms the latter is a
negative event picking out the contrast between the top of the Cy78 and
overlying Rock-salt.

Using Leapfrog Geo 4.0 (Leapfrog) surfaces were created for the SALT_R and
BoC8. In doing so, an assessment of directional control on the surfaces was
made; following the observation based on the sectional interpretation a
WNW-ESE 'strike' is evident. Experimental semi-variograms were calculated for
the surface elevation values at 10° azimuth increments. All experimental
semi-variograms were plotted; 100° and 10° produce good semi-variograms for
the directions of most and least continuity respectively (Figure 19)
(#_bookmark25) . This directional control was adopted for the modelling of
surfaces, created in Leapfrog on a 20 by 20 m 'mesh' using a 2:1 ellipsoid
ratio (as indicated by the semi- variogram ranges).

Figure 19. Semi-variograms of BoC8 elevations for 100° and 10° azimuths

The following steps were then carried out:

1. The BoC8 surface was projected up to the position of the Upper Seam
roof (US_R) by 'gridding' the interval between these units from drill- hole
data. On seismic lines, The US_R interpretation was then adjusted to fit
reflectors at that position (Figure 10) (#_bookmark8) , taking into account
interference features common in the data in the Salt Member close to the
SALT_R

2. In all cases drill-hole intersections were honoured. In addition to
USS and USC intersections, the small number of leached US intersections (type
D and E in Table 4, (#_bookmark15) all within subsidence zones) were used to
guide the seam model.

3. The new US_R interpretation along seismic lines, was then 'gridded'
in Leapfrog, also into a mesh of 20 m by 20 m resolution making use of the
100° directional control and 2:1 anisotropy, to create a new US_R surface.

The Mineral Resource model has two potash domains in order to represent the
geology I.e. Sylvinite or Carnallitite. A third non-potash domain areas of
leaching and/or subsidence as described in the following text. Using the
reference horizons the Sylvinite and Carnallitite seam model was developed as
follows:

1. The US_R surface was fixed as the reference horizon for the modelling
of the US, LS and HWS. The US_R surface was imported into Datamine Studio 3
(Datamine), using the same 20 by 20 m cells as described above.

2. The US Sylvinite (USS) model was developed by analysing the position
of the cell in relation to the SALT_R and to the RDS zones. The latter were
interpreted from seismic data. As described in section 2.3 these attributes
are the main geological controls.

3. To a lesser extent the dip of the seam and the relative elevation of
each cell, relative to the cells within a 100 by 100 m area were also
considered, to further identify Sylvinite with the understanding that areas of
very low dip are more likely to be of Carnallitite.

4. Beyond the 2010/2011 seismic data (within the Indicated Mineral
Resource area) the influence of the distance from RDS zones was reduced and
the proximity to the SALT_R and the dip and relative elevation were assigned
greater consideration.

5. Seam thickness of the USS was determined by gridding the drill-hole
data of the full Sylvinite intersections (excluding those that have a
Carnallitite basal layer or are leached) using Inverse distance squared
(IDW(2)) and adjusting it to account for the influence of 2 and 3 above. The
Sylvinite thickness was then subtracted from the elevation of the US_R to
create the USS floor (USS_F), on the 20m by 20m mesh.

6. Only the true thickness of drill-hole intersections were used (i.e.
corrections for any dip were made) for the above. As the seam model thickness
developed in a vertical sense, areas of the model with a dip were corrected so
that the true thickness was always honoured.

7. Even if the USS has zero thickness the surface for the USS_F was
created, overlying exactly that of the US_R to facilitate the creation of DTMs
for each surface.

8. The same method (effectively the inverse) was applied to create the
US Carnallitite model (USC) below the USS. The roof of the USC (USC_R) is the
same surface as the USS_F (Figure 20) (#_bookmark26) .

9. A number of iterations of the model were produced and assessed. The
selected model was the one that produced a result that ties well with the
drill-hole data and honours the proportional abundance of Sylvinite as
intersected in the drill-holes.

Figure 20. Cross-section showing the construction of the USS and USC seam
model

The Lower Seam model was created in a similar manner as follows:

1. The LS is separated by between 2 and 6 metres (Figure 21)
(#_bookmark27) of barren Rock-salt, also referred to as the
Interburden-haliteor IBH. This layer is an important geotechnical
consideration and so care was taken to model it. The IBH thickness from
drill-hole data was 'gridded' in Datamine using IDW(2) into the 20 by 20
cells. This thickness was then subtracted from the elevation of the US_F to
obtain the LS_R elevation from which a DTM was made.

2. Unlike the USS the LSS is more often than not underlain by a layer of
Carnallitite (type B in Table 4) (#_bookmark15) . For the LSS model the
thickness of the LSS from drill-hole data was gridded using IDW(2) into the 20
x 20 mesh without influence from distance to the SALT_R or RDS zones. However,
based on the geological understanding that LSS rarely occurs beneath USC the
LSS model was cut accordingly, based on the USC model. Reflecting the model
and based on analysis the following rule was also applied; that if the US is
'full' (type A in Table 4) (#_bookmark15) then the LSS is also full but only
if the LS_R is within 30 m of the SALT_R. Finally, if the US_R is truncated by
the SALT_R, then the remaining LS is modelled as full LSS due to its proximity
to the SALT_R.

For the US and LS Inferred Resources, the distribution of Sylvinite and
Carnallitite was by manual interpretation based on available drill-hole data
and plots of the distance between the seam and the SALT_R. The thickness of
the USS and LSS was determined by gridding all USS drill- hole data. The
Carnallitite was then modelled as the Inverse of the Sylvinite model, in
adherence to the geological model.

Figure 21. Histogram for the thickness of the Rock-salt between the US and LS
(the IBH)

The Hangingwall seam model was created as follows

1. The distance between the US_R and HWS_R in drill-hole intersection
was gridded using IDW(2) into the 20 by 20 m mesh. This data was then added to
the elevation of the US_R to create a HWS_R.

2. Being close to the SALT_R (within 30 m in all cases) there is less
variation in domain type; in all areas except for the zone labelled 'A' on
Figure 24 (#_bookmark30) the USS is full Sylvinite (not underlain by USC). For
all HWS outside of zone A the model was created by gridding the thickness
using IDW(2) into the 20 x 20 mesh.

3. The HWS model was created without input from distance to the SALT_R
or RDS zones for the reasons stated above, by gridding of the drill-hole
intersections.

4. Within the area labelled 'A' on Figure 24, (#_bookmark30) the HWSS
is underlain by HWSC and so this was incorporated into the model.

5. Finally, the HWS was 'pinched' upwards from a distance of 4 m below
the SALT_R to reflect the geological observation that close to this surface
the seam is leached.

Modelling of the Footwall Seam (FWS)

1. A different approach was adopted for the modelling of the FWS as the
mode of occurrence is different to the other seams as described in section
2.3. Only Sylvinite (FWSS) was modelled as Carnallitite FWS is poorly
developed or absent, and low grade.

2. Drill-hole and seismic data was used to identify areas of leaching of
the Salt Member based on subsidence of the overlying strata signs of marked
disturbance of the salt, within which FWSS is typically developed. These were
delineated in plan view (Figure 27) (#_bookmark32) .

3. Where possible drill-hole data was used to guide thickness of the
FWS, in other areas the thickness was interpreted using the seismic data. The
FWS was 'constructed' from the top of the Cy7B upwards (Figure 17
(#_bookmark16) ).

Subsidence Anomalies

As is standard practice in potash mining zones of subsidence which pose a
potential risk to mining were identified using seismic and drill-hole data
(Figure 22 (#_bookmark28) and Figure 23) (#_bookmark29) and classified from 1
to 3 depending on severity where 3 is highest. Several drill-holes within or
adjacent to these features show that the Salt Member is intact but has
experienced some disturbance and leaching.

The HWS, US and LS Mineral Resource models were 'cookie-cut' by these
anomalies before calculation of the Mineral Resource estimate. The FWSS model
was not cut as that Sylvinite is considered the product of potassium
precipitation below the influence of the subsidence anomalies.

Truncation by the Anhydrite Member

Finally, all the potash seams were truncated (cut) by the SALT_R surface (base
of the Anhydrite Member) as it is an unconformity. Figure 24 (#_bookmark30) to
Figure 27 (#_bookmark32) show the distribution of Sylvinite by seam and a
typical cross-section of the final seam model is provided in Figure 17.
(#_bookmark16)

Figure 22. An example of a class 2 and class 3 subsidence anomaly visible in
seismic data cross-section, displayed with a 2:1 vertical exaggeration. In
both cases drill-holes are within are adjacent to the features.

Figure 23. Plan view showing the distribution of subsidence anomalies, cut out
from the Mineral Resource before estimation

Figure 24. Plan view of HWSS distribution. The entire seam is classified as
Inferred except for portions of the areas labelled A, B and C which are
classified as Indicated.

GRADE ESTIMATION SECTION

Traditional block modelling was employed for estimating %KCl, %Na, %Cl, %Mg,
%S, %Ca and %Insols (insolubles). No assumptions were made regarding
correlation between variables. The block model is orthogonal and rotated by 20
degrees reflecting the orientation of the deposit. The block size chosen was
250m x 250m x 1m to roughly reflect drill hole spacing, seam thickness and to
adequately descretize the deposit without injecting error.

Volumetric solids were created for the individual mineralized zones (i.e.
Hangingwall Seam, Upper Seam, Lower Seam, Footwall Seam) for both Sylvinite
and Carnallitite using drill hole data and re-processed depth migrated seismic
data. The solids were adjusted by moving the nodes of the triangulated domain
surfaces to exactly honour the drill hole intercepts. Numeric codes denoting
the zones within the drill hole database were manually adjusted to ensure the
accuracy of zonal intercepts. No assay values were edited or altered.

Once the domain solids were created, they were used to code the drill hole
assays and composites for subsequent statistical analysis. These solids or
domains were then used to constrain the interpolation procedure for the
mineral resource model, the solids zones were then used to constrain the block
model by matching composites to those within the zones in a process called
geologic matching. This ensures that only composites that lie within a
particular zone are used to interpolate the blocks within that zone.

Relative elevation interpolation methods were also employed, which is helpful
where the grade is layered or banded and is stratigraphically controlled. In
the case of Kola, layering manifests itself as a relatively high-grade band at
the footwall, which gradually decreases toward the hanging wall. Due to the
undulations of the deposit, this estimation process accounts for changes in
dip that are common in layered and stratified deposits.

The estimation plan includes the following:

· Store the mineralized zone code and percentage of mineralization.

· Apply the density, based on calculated specific gravity.

· Estimate the grades for each of the metals using the relative
elevation method and an inverse distance using three passes. The three
estimation passes were used to estimate the Resource Model because a more
realistic block-by-block estimation can be achieved by using more restrictions
on those blocks that are closer to drill holes, and thus better informed.

· Include a minimum of five composites and a maximum of twenty, with
a maximum of four from any one drill hole.

The nature and distribution of the Kola Deposit shows uniform distribution of
KCl grades without evidence of multiple populations which would require
special treatment by either grade limiting or cutting. Therefore, it was
determined that no outlier or grade capping was necessary.

The grade models have been developed using inverse distance and anisotropic
search ellipses measure 250 x 150 x 50 m and have been oriented relative to
the main direction of continuity within each domain. Anisotropic distances
have been included during interpolation; in other words, weighting of a sample
is relative to the range of the ellipse. A sample at a range of 250 m along
the main axis is given the same weight as a sample at 50 m distance located
across the strike of the zone. Table 13 (#_bookmark35) summarize the search
ellipse dimensions for the estimation passes for the Kola.

Table 12. Estimation Strategy for Kola

1(st) Rotation Angle 2(nd) Rotation Angle 3rd Rotation Angle Max. Samples per Drillhole

Pass Major Axis Semi-Major Axis Minor Axis Azimuth Dip Min. No. Of Comps Max. No. Of Comps
1 1000 1000 100 20 0 0 6 9 3
2 1500 1500 100 20 0 0 3 9 3
3 3500 3500 100 20 0 0 1 9 3

A full set of cross-sections, long sections, and plans were used to check the
block model on the computer screen, showing the block grades and the
composite. There was no evidence that any blocks were wrongly estimated. It
appears that block grades can be explained as a function of: the surrounding
composites, the solids models used, and the estimation plan applied. In
addition, manual ballpark estimates for tonnage to determine reasonableness
was confirmed along with comparisons against the nearest neighbor estimate.

Check Estimate

As a check on the global tonnage, an estimate was made in Microsoft Excel by
using the average seam thickness and determining a volume based on the
proportion of holes containing Sylvinite versus the total number of holes
(excluding those that did not reach the target depth) then applying the mean
density of 2.1 (t/m(3)) to determine the total tonnes. This was carried out
for the USS and LSS within the Measured and Indicated categories. A deduction
was made to account for loss within subsidence anomalies. The tonnage of this
estimate is within 10% of the tonnage of the reported Mineral Resource.

Figure 25. Plan view of USS distribution

Figure 26. Plan view of LSS distribution

3.6 Moisture

Mineral Resource tonnages are reported on an insitu basis (with natural
moisture content), Sylvinite containing almost no moisture and Carnallitite
containing significant moisture within its molecular structure. Moisture
content of samples was measured using the 'Loss on Drying' (LOD) method at
Intertek Genalysis as part of the suite of analyses carried out. Data shows
that for Sylvinite the average moisture content is 0.076 % and the maximum
value was 0.6%. Representative moisture analyses of Carnallitite are difficult
as it is so hygroscopic. 38% of the mass of the mineral carnallite is due to
water (6 H(2)0 groups within its structure). Using the KCl data to work out a
mean carnallite content, the Carnallitite has an average moisture content
approximately 25% insitu. It can be reliably assumed that this amount of
moisture would have been held by the Carnallitite samples at the time of
analysis of potassium, in a temperate atmosphere for the duration that they
were exposed.

3.7 Cut-off parameters

· Mining US$30/t

· Process US$20/t

· Infrastructure US$20/t

· Sustaining Capex US$15/t

· Royalties US$10/t

· Shipping US$15/t

3.8 Mining factors or assumptions

The Kola Project has been the subject of scoping and feasibility studies which
found that economic extraction of 2 to 5m thick seams with conventional
underground mining machines is viable and that mining thickness as low as 1.8m
can be supported. Globally, potash is mined in similar deposits with seams of
similar geometry and form. The majority of the deposit has seam thickness well
above 1.8m; the average for the sylvinte HWS, US, LS and FWS is 3.3, 4.0, 3.7
and 6.6m respectively.

3.9 Metallurgical factors or assumptions

The Kola Sylvinite ore represents a simple mineralogy, containing only
sylvite, halite and minor fragments of other insoluble materials. Sylvinite of
this nature is well understood globally and can be readily processed.
Separation of the halite from sylvite by means of flotation has been proven in
potash mining districts in Russia and Canada. Furthermore, metallurgical
test-work was performed on all Sylvinite seams (HWSS, USS, LSS and FWSS) at
the Saskatchewan Research Council (SRC) which confirmed the viability of
processing the Kola ore by conventional flotation.

3.10 Environmental Factors or assumptions

The Kola deposit is located in a sensitive environmental setting in an area
that abuts the Conkouati-Douli National Park (CDNP. Approximately 60% of the
deposit is located within the economic development zone of the CDNP, while the
remainder is within the buffer zone around the park. The economic development
zone does permit mining activities if it is shown that impact can be
minimised. For these reasons, Sintoukola Potash has focussed its efforts on
understanding the environmental baseline and the potential impacts that the
project will have. Social, water, hydrobiology, cultural, archeological,
biodiversity, noise, traffic and economic baseline studies were undertaken as
part of the ESIA process between 2011 and 2013. This led to the preparation of
an Equator Principles compliant ESIA in 2013 and approval of this study by the
government in the same year.

Waste management for the project is simplified by the proximity to the ocean,
which acts as a viable receptor for NaCl from the process plant. Impacts on
the forest and fauna are minimised by locating the process plant and employee
facilities at the coast, outside the CDNP. Relationships with the national
parks, other NGO's and community and government stakeholders have been
maintained continuously since 2011 and engagement is continuing for the
ongoing DFS. All stakeholders remain supportive of the project.

3.11 Bulk Density

The separation of Carnallitite and Sylvinite (no instances of a mixed ore-type
have been observed) and that these rock types each comprise over 97.5% of only
two minerals (Carnallitite of carnalliteand halite; Sylvinite of sylvite and
halite) means that density is proportional to grade. The mineral sylvite has a
specific gravity of 1.99 and halite of 2.17. Reflecting this, the density of
Sylvinite is less if it contains more sylvite. The same is true of
Carnallitite, carnallite having a density of 1.60.

Conventional density measurements using the weight in air and weight in water
methods were problematic due to the soluble nature of the core and difficulty
applying wax to salt. As an alternative, gas pycnometer analyses were carried
out (71 on Sylvinite and 37 on Carnallitite samples). Density by pycnometer
was plotted against grade for each, as shown for in Figure 28 (#_bookmark33)
and Figure 29 (#_bookmark34) . (#_bookmark34) A regression line was plotted,
the formula of which was used in the Mineral Resource model to determine the
bulk density of each block. As a check on the pycnometer data, the theoretical
bulk density (assumes a porosity of nil) was plotted using the relationship
between grade and density described above. As a further check, a 'field
density' was determined for Sylvinite and Carnallitite from EK_49 and EK_51 on
whole core, by weighing the core and measuring the volume using a calliper,
before sending samples for analysis. An average field density of 2.10 was
derived from the Sylvinite samples, with an average grade of 39% KCl, and 1.70
for Carnallitite with an average grade of 21% KCl, supporting the pycnometer
data. The theoretical and field density data support the approach of
determining bulk-density.

Figure 28. Density of Sylvinite samples, by gas pycnometer and by theoretical
calculation,

plotted against KCl %.

Figure 29. Density of Sylvinite samples, by gas pycnometer and by theoretical
calculation,

plotted against KCl %.

3.12 Classification

It is the data spacing that is the principal consideration as it determines
the confidence in the interpretation of the seam continuity and therefore
confidence and classification; the further away from seismic and drill-hole
data the lower the confidence in the Mineral Resource classification, as
summarized in Table 13. (#_bookmark35) In the assigning confidence category,
all relevant factors were considered and the final assignment reflects the
Competent Persons view of the deposit.

Table 13. Description if requirements for the maximum extent of the Measured,
Indicated and Inferred classifications, as illustrated in plan view in figures
Figure 24 (#_bookmark30) to Figure 27 (#_bookmark32)

Drill-hole requirement Seismic data requirement Classification extent
Within area of close spaced 2010/2011 seismic data (100-200 m spacing) Not beyond the seismic requirement

Measured Average of 1 km spacing
1 to 2.5 km spaced 2010/2011 seismic data and1 to 2 km spaced oil industry Maximum of 1.5 km beyond the seismic data requirement if sufficient drill-hole

seismic data support
Indicated 1.5 to 2 km spacing
Few holes, none more than 2 km from another 1-3 km spaced oil industry seismic data Seismic data requirement and maximum of 3.5 km from drill- holes

Inferred

3.13 Audits or reviews

No audits or reviews of the Mineral Resource have been carried out other than
those of professionals working with Met-Chem division of DRA Americas Inc., a
subsidiary of the DRA Group as part of the modelling and estimation work.

3.14 Discussion of relative accuracy/confidence

The Competent Person has a very high degree of confidence in the data and the
results of the Mineral Resource Estimate. The use of tightly spaced seismic
that was reprocessed using state-of-the-art techniques combined with high
quality drill data formed the solid basis from which to model the deposit.
Industry standard best practices were followed throughout, and rigorous
quality assurance and quality control procedures were employed at all stages.
The Competent Person was provided all information and results without
exception and was involved in all aspects of the program leading up to the
estimation of resources. The estimation strategy and method accurately depict
tonnages and grades with a high degree of accuracy both locally and globally.

There is no production data from which to base an opinion with respect to
accuracy and confidence.

Glossary of Terms
Term Explanation
Albian The uppermost subdivision of the Early/Lower Cretaceous epoch/series. Its
approximate time range is 113.0 ± 1.0 Ma to 100.5 ± 0.9 Ma (million years
ago)
anhydrite Anhydrous calcium sulphate, CaSO(4).
Aptian a subdivision of the Early or Lower Cretaceous epoch or series and encompasses
the time from 125.0 ± 1.0 Ma to 113.0 ± 1.0 Ma
assay in this case refers to the analysis of the chemical composition of samples in
the laboratory
bischofite Hydrous magnesium chloride minerals with formula, MgCl(2)·6H(2)O and
CaMgCl(2)·12H(2)O
brine Brine is a high-concentration solution of salt in water
carbonate any rock composed mainly of carbonate minerals such as calcite or dolomite
carnallite an evaporite mineral, a hydrated potassium magnesium chloride with formula
KMgCl. (3)· 6(H(2)O)
carnallitite a rock comprised predomiantly of the minerals carnallite and halite
clastic Clastic rocks are composed of fragments, or clasts, of pre-existing minerals
and rock.
clay A fine-grained sedimentary rock.
collars (drill-hole) the top of the drill-hole
composite (sample) an interval of uniform length for which attributes such as grade are
determined by combining or cutting original samples of greater or lesser
length, to obtain a uniform support size
conformable refers to layers of rock between which there is no loss of the geological
record
core (drill) the cylindrical length of rock extracted by the process of diamond drill
coring
Cretaceous the last of the three periods of the Mesozoic Era. The Cretaceous began
145.0 million years ago and ended 66 million years ago
cross-section an image showing a slice (normally vertical) through the sub-surface
diamond coring the method of extracting cores of rock by using a circular diamond-tipped bit
(though may be tungsten carbide)
dip in this case refers to the angle of inclination of a layer of rock, measured
in degrees or % from horizontal
dolomite anhydrous carbonate mineral composed of calcium magnesium carbonate, ideally
CaMg(CO(3))(2). The term is also used for a sedimentary carbonate rock
composed mostly of the mineral dolomite.mineral form is indicated by italic
font
domain (mineral) a spatial zone within which material is modelled/expected to be of a type or
types that can be treated in the same way, in this case in terms of resource
estimation
drill-hole a hole drilled to obtain samples of the mineralization and host rocks, also
known as boreholes or just holes
euhedral crystals with well defined crystal form
evaporite Sediments chemically precipitated due to the evaporation of an aqueous
solution or brine
gamma-ray A gamma ray or gamma radiation is penetrating electromagnetic radiation
arising from the radioactive decay of atomic nuclei.
geotechnical Refers to the physical behavior of rocks, particularly relevant for the Mine
design requiring geotechnical engineering
Gondwana Gondwana or Gondwanaland, was a supercontinent that formed from the
unification of several cratons in the Late Neoproterozoic, merged with
Euramerica in the Carboniferous to form Pangaea, and began to fragment in the
Mesozoic
graben A graben is a basin bound by normal faults either side, formed by the
subsidence of the basin due to extension
gypsum soft sulfate mineral composed of calcium sulfate dehydrate, with the chemical
formula CaSO. (4)·2H(2)O.
halite The mineral form of sodium chloride (NaCl), salt.
horst a horst is a raised fault block bounded by normal faults. A horst is a
raised block of the Earth's crust that has lifted, or has remained stationary,
while the land on either side (grabens) have subsided
Indicated Mineral Resource An 'Indicated Mineral Resource' is that part of a Mineral Resource for which
quantity, grade (or quality), densities, shape and physical characteristics
are estimated with sufficient confidence to allow the application of Modifying
Factors in sufficient detail to support mine planning and evaluation of the
economic viability of the deposit. Geological evidence is derived from
adequately detailed and reliable exploration, sampling and testing gathered
through appropriate techniques from locations such as outcrops, trenches,
pits, workings and drillholes, and is sufficient to assume geological and
grade (or quality) continuity between points of observation where data and
samples are gathered. An Indicated Mineral Resource has a lower level of
confidence than that applying to a Measured Mineral Resource and may only be
converted to a Probable Ore Reserve.
Inferred Mineral Resource An 'Inferred Mineral Resource' is that part of a Mineral Resource for which
quantity and grade (or quality) are estimated on the basis of limited
geological evidence and sampling. Geological evidence is sufficient to imply
but not verify geological and grade (or quality) continuity. It is based on
exploration, sampling and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings and
drillholes. An Inferred Mineral Resource has a lower level of confidence than
that applying to an Indicated Mineral Resource and must not be converted to an
Ore Reserve. It is reasonably expected that the majority of Inferred Mineral
Resources could be upgraded to Indicated Mineral Resources with continued
exploration.
insoluble material in this report, refers to material that cannot be dissolved by water such as
clay, quartz, anhydrite
JORC Joint Ore Reserves Committee of The Australasian Institute of Mining and
Metallurgy, Australian Institute of Geoscientists and Minerals Council of
Australia (JORC). JORC issues the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves, last updated 2012
(JORC 2012).
lithological refers to the observed characteristics if a rock type (or lithology)
Measured Mineral Resource A 'Measured Mineral Resource' is that part of a Mineral Resource for which
quantity, grade (or quality), densities, shape, and physical characteristics
are estimated with confidence sufficient to allow the application of Modifying
Factors to support detailed mine planning and final evaluation of the economic
viability of the deposit. Geological evidence is derived from detailed and
reliable exploration, sampling and testing gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings and
drillholes, and is sufficient to confirm geological and grade (or quality)
continuity between points of observation where data and samples are gathered.
A Measured Mineral Resource has a higher level of confidence than that
applying to either an Indicated Mineral Resource or an Inferred Mineral
Resource. It may be converted to a Proved Ore Reserve or under certain
circumstances to a Probable Ore Reserve.
Mineral Reserve the economically mineable part of a Measured and/or Indicated Mineral
Resource. It includes diluting materials and allowances for losses, which
may occur when the material is mined or extracted and is defined by studies at
Pre-Feasibility or Feasibility level as appropriate that include application
of Modifying Factors. Such studies demonstrate that, at the time of
reporting, extraction could reasonably be justified
potash refers to any of various mined and manufactured salts that contain potassium
in water-soluble form. In this report generally refers to the potassium
bearing rock types
pycnometer A laboratory device used for measuring the density of solids.
recovery (of drill core) refers to the amount of core recovered as a % of the amount that should have
been recovered if no loss ws incurred.
rift refers to the splitting apart of the earth's crust due to extension, typically
resulting in crustal thinning and normal faulting
rock-salt rock comprising predominantly of the mineral halite
sediment A naturally occurring material that is broken down by processes of weathering
and erosion, and is subsequently transported by the action of wind, water, or
ice, and/or by the force of gravity acting on the particles.
seismic in this case seismic reflection, a method of exploration geophysics that uses
the principles of seismology to estimate the properties of the Earth's
subsurface from reflected seismic waves. The method requires a controlled
seismic source of energy, such as dynamite or Tovex blast, a specialized air
gun or a seismic vibrator
stratigraphy Stratigraphy is a branch of geology concerned with the study of rock layers
(strata) and layering (stratification). It is primarily used in the study of
sedimentary and layered volcanic rocks
strike refers to the direction of preferred control of the mineralization be it
structural or depositional. In this direction it is expected that there be
greater correlation of attributes
sylvinite a rock type comprised predominantly of the mineral sylvite and halite
sylvite an evaporite mineral, potassium chloride (KCl)
unconformity An unconformity is a buried erosional or non-depositional surface separating
two rock masses or strata of different ages, indicating that sediment
deposition was not continuous

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