Potash – Where are miners looking?

INDUSTRIAL METALS, MINERALS AND MINEABLE ENERGYINVESTMENT SUMMIT 2010

LONDON CHAMBER OF COMMERCE & INDUSTRY ● WEDNESDAY, 30 NOV 2010www.ObjectiveCapitalConferences.com

Potash – Where are miners looking?Jess Pridmore – Business Dev’t Director, Intierra Resource Intelligence

Global PotashMining & Exploration

Activity

Jess Pridmore

Intierra – What We Do

Intierra has been capturing, processing and displaying volatile quasi-public data about the global mining industry to provide a powerful web based competitor intelligence service, known as IntierraLive for over 20 years.

The Intierra system is described as the most sophisticated in terms of functionality and comprehensive in content available, providing simple data querying, alerting and mapping functionality for content as diverse as:

• corporate information, • mining property, • commodities, • news, and• lease and technical data.

The service is used by 210 companies which includes 8 of the 10 major global mining companies, along with major banks and financial institutions.

• over 40,000 companies• over 3, 500 listed companies• over 39,000 global projects

- grass roots projects to operating mines etc• 163 commodities• Lease coverage – covering major global mining juristictions

ie: Canada, Australia, Burkina Faso etc

IntierraLive

IntierraLive is the most comprehensive information tool available for the resource industry and we currently cover:

Potash Production

Of the four producing countries listed in the Intierra database, • Brazil produced 717 kt and• Russia 2,497kt from their single operations, • whilst the USA produced a total of 1357kt from six operations • and Canada 10,979kt from ten operations.

The Potash Industry Status Quo

As it stands now, the potash industry is consolidated, with eight companies controlling more than 80% of global supplies:

•Potash Corporation of Saskatchewan•Agrium•Mosaic•Germany-based K+S ADR•Russian firms Uralkali and Silvinit •Belarus-based Belaruskali •Israel Chemicals ADR

Historic Muriate of Potash Prices

Potash Projects around the World

Increasing Resources

Increasing Resources

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Sourced from Intierra (market reports from ASX,TSX, NYSE, JSE,AIM,LSE)

Potash: Resource &/or Production


Significant Potash Transactions since Jan 09

Name Date Cash Paid Buyer Seller

Burr Potash Deposit 29-Jan-10 356,824,264AUDBHP Billiton Limited (100.00%

acquired) Athabasca Potash Inc.

Mt Marion Lithium Deposit 13-Aug-09 3,200,000AUDReed Resources Ltd (100.00%

acquired)Richmond, William

Robert

tasio Rio Colorado Potash Project 5-Feb-09 1,300,290,653AUD Vale S.A. (100.00% acquired) Rio Tinto Limited

Spar Potash Project 16-Jun-09 EquityEncanto Potash Corp

(100.00% acquired) Lion Energy Corp.


Potash Projects Status

Exploration - 21%

Feasibility Study - 3%

Construction - 3%

Grass Roots - 37%

Operating - 19%

Pre-feas/Scoping - 6% Adv. Exploration - 10%

Care/Maintenance - 1%


Potash Projects

Congo (Republic of) - 2%

Chile - 2%

Russia - 4%

Other - 8%

Canada - 29%

Australia - 18%

United States - 18%

Argentina - 12%

Brazil - 7%


Pre-operating Potash Projects

Other - 7%

Russia - 3%

Congo (Republic of) - 3%

Brazil - 7%

United States - 15%

Argentina - 15%

Australia - 22%

Canada - 28%


Operating Potash Projects

Canada - 33%

United States - 29%

Chile - 10%

Russia - 10%

Brazil - 3%

England - 3%

Germany - 3%Israel - 3%

Jordan - 3% Spain - 3%


Potash –Mining Styles

Operating ProjectsStyle of Mining

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20%

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Brine/Evaporite Insitu Leach Open Pit Underground Underground, InsituLeach

Potash Feasibility Studies

Jansen Lake Canada Pre-Feasibility * * 8,800,000 BHP Billiton LimitedGremiachinskoye Russia Feasibility 2013 2,000 * 4,600,000 OJSC EuroChemRio Colorado Argentina Feasibility 2013 4,118 * 2,900,000 Vale S.A.Legacy Canada Feasibility 2014 2,781 47 2,860,000 Potash One Inc.Milestone Canada Pre-Feasibility 2015 2,500 40 2,500,000 Western Potash Corp.Cerrado Verde Brazil Scoping 2013 197 40 1,100,000 Amazon Mining Holding plc

Ochoa United States Pre-Feasibility 887 30 1,000,000 IC Potash Corp.

Mengo DRC Pre-Feasibility 2012 723 54 600,000 MagIndustries Corp.

Bayovar Peru Pre-Feasibility 2013 125 * 250,000 Americas Petrogas Inc.HB (Carlsbad) Canada Feasibility 2013 120 8 200,000 Intrepid Potash, Inc.

Kings Valley United States Scoping * 427 18 115,000 Western Lithium USA Corp

Olaroz Salar Argentina Scoping * 80 * 36,000 Orocobre Limited

Study TypeCountryProperty LOMCAPEXForecast

Production OwnerStart Date

Potash Drill Intersections (Dec 09 to now)


Potash – Future Trends

Strong demand in upcoming years

Underpinned by strong fertiliser demand from :-

•Diet change - shift to protein

•Continued expected growth in biofuels

•Increased food demand, less available land

Investment Risk?

• Rank projects according to political, security, operational, terrorism risks

• - what/where/who would you invest in?

• Come to workshop!

Conclusion

-8 companies controlling 80% of global potash supply-165 properties around the world. Canada has significantly increased its resource base over past 5 years

-Resources: Congo, Eritrea, north and south America, Australia-Producers: Canada, America, Russia, Chile and Brazil

-4 significant capital raising in past 2 years. 2 in Canada, 1 Australia, 1 Argentina

-2/3rd projects pre-production phases. Mostly grass roots and exploration.Canada still largest at 28%, US 15% Aust on 22% + Argentina on 15% (looking to establish themselves as producers)

-Brazil on 7%. Also Thailand, India, Congo , Chile, Eritrea and Ethiopia all cite resources and/or reserves of potash which are potentially exploitable. (Uzbekistan, Turkmenistan and also Germany upcoming areas)

Conclusion

Feasibility Studies: Current producing countries + Congo, Peru, Argentina• 12 Pre Feas/Scoping• 5 Feasibility Study• 5 ConstructionMining style: industry move to Brine/Evaporation methods (100 brine deposits.

Cheaper to exploit)

For more information

www.intierra.com

IntierraLive Workshops

Intierra will be hosting the following workshops:12.35 – Uranium14.15 – Potash16.05 – Coal

Economy & Finance

Potash – Where are miners looking?