Strategic importance of Phosphorus (P)

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Essential nutrient for all life forms

Especially important in root development

Mined phosphate rock is one of the world’s most important sources of phosphorus

90% of the world phosphate production is used in fertilizers

Its functions cannot be performed by any other nutrient

In the natural environment, phosphorus is supplied to plants through the weathering and dissolution of rocks – very low solubility

Phosphorus is a vital resource to global food production

Photo credit: CIMMYT

Phosphorus-deficient wheat plants (right)

There are no substitute for phosphorus in

agriculture

. .

PHOSPHATE ROCK TYPES

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Igneous

₋ As a result of volcanic eruption ₋ Fewer impurities

Sedimentary ₋ Formed ~70 million years ago ₋ Derived from living creatures

and contain organic matter The two deposits have widely differing mineralogical, textural and chemical characteristics

80%

of the world phosphate production is derived from sedimentary deposits

Geology

Source: FAO

Economic and potentially economic phosphate deposits of the world

Phosphate rock is one of the world’s most important

sources of phosphorus

Sedimentary Rock Characteristics

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High grade P₂O₅ – 35-37%

High Cd level

Some line problems with Cl level

P₂O₅ grade – 31.5-33.5%

Preferred for SSP and TSP production

Can be used for acid production

Sometimes needs SiO2 and Al2O3 adjustment

Medium level of organic material

Group 1 - Boucraa (Morocco), Togo and Senegal

Group 2 - Khouribga (Morocco), Israel, Jordan

The largest sedimentary deposits are found in

North Africa, China, the Middle East, and the US

(Source: USGS) 300 Billion tons – Estimate of world resource of phosphate rock

Phosphate Rock Mining & Production

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Over 75% of the world commercial phosphate deposits is surface-mined

₋ Utilizes many forms of extraction from manual methods to the use of highly-mechanized technologies

Remainder of global production is recovered by underground mining

Mined phosphate rocks can range from 5% to over 40% in grade

Phosphate rocks is processed to remove impurities and upgrade the rock quality

Current world phosphate rock production capacity is estimated at:

~165-195million tonnes/year; or

~50 million tonnes/year of P₂O₅ (ie. diphosphorus pentoxide)

67%

of global production concentrated

in just 3 countries

Global Distribution of Phosphate Reserves

Source: USGS 2009

Phosphate Rock for Direct Application

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Direct application of un-acidulated phosphate rock as phosphorus fertilizer has received considerable attention in the last years

₋ Direct application is advisable only with some phosphate rocks and under specific conditions

The following factors play important role in determining agronomic economic effectiveness of phosphate rock:

₋ Particle size of the rock ₋ Soil properties and climate of the

region ₋ Timing and method of application ₋ Crop and farming system used ₋ Residual effect of the rock ₋ Use of the rock as a soil amendment

P₂O₅ content: 28-33% Solubility in citric acid: 30-33% P₂O₅ solubility in formic acid: 50-55%

Sedimentary Rock Morocco, Jordan, Togo, Israel, China,

Syria, Egypt, Senegal, etc.

Igneous Rock Russia (Kola Peninsula), South Africa,

China, DRC, Ethiopia, Canada

Phosphate rock producers like the US, Brazil, Tunisia and Finland target domestic markets

Phosphate rocks that have a high phosphorus content and are highly soluble in slightly acidic soils make

great candidates for direct application

Rock Characteristics

Phosphate Rock Producers

Fertilizers

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Fertilizers are combinations of the nutrients that plants must have to grow, in a form they can use. These plant nutrients can be supplied through organic fertilizers such as plant residues or livestock manure, or mineral fertilizers, which are chemically processed to meet crop needs.

Three primary nutrients in fertilizers are essential

elements to global agriculture

Nitrogen (N)

Phosphorus (P)

Potassium (K)

Effects of NPK on a poor Zimbabwe soil

Source: IPNI

Phosphate Use in Fertilizers

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Note 1 Single Super Phosphate fertilizer 2 Triple Superphosphate

Phosphorus (P) additions are needed in most areas of the world to improve soil fertility and crop production. Direct application of unprocessed phosphate rock (PR) to soil may provide a valuable source of plant nutrients in specific conditions (Source: IPNI)

Fertilizer uses of phosphate rock:

Phosphoric Acid Nitro-Phosphate Fertilizers Basic Fertilizers (SSP₁, TSP₂) Direct application

Rock Quality for Fertilizers

SiO₂ – as low as possible to improve grinding capacity

CO₂ – high CO₂ gives high reactivity to the rock

Al₂O₃, Fe₂O₃, MgO – reduce P₂O₅ availability in the product, but increase strength during granulation

Producing Phosphate Fertilizers

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Phosphoric acid is produced by attacking rock phosphate using a wet process, to facilitate separation and reduce dust

Nitro-phosphates are fertilizers produced by attacking phosphate rock with nitric-acid:

₋ PEC process in which the calcium nitrate is not separated from the product

₋ Norsk Hydro or Odda process in which the calcium nitrate is separated by cooling and filtration, and is used to make CAN

Basic fertilizers are produced by attacking the rock with:

₋ sulfuric acid to receive SSP; or ₋ phosphoric acid to produce TSP

Path to Product

Phosphate Rock Beneficiation

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The beneficiation process allows a concentration of ~1.5x but higher ratios up to 9x are possible with some rocks

All phosphate ores have to be beneficiated before use

Evaluation of phosphate quality and level of beneficiation has considerable effect on economics

₋ CaO/P₂O₅ ratio, rather than P₂O₅ has the main effect on the production cost ₋ Level of impurities in the final product is also important

Technologies may be used to remove gangue and increase P₂O₅ levels

Type of beneficiation process depends on: ₋ Nature of Rock ₋ Process in which the rock will be used ₋ Cost

Photo credit – Fox Mining Machinery

Beneficiation Process

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By screening out the +1mm and -200 mesh

(74m), it is possible to increase the P₂O₅ level

of the rock by 2-3%, 28- 29% to 31-32% P₂O₅

This operation can be done in both dry and

wet process

Calcination removes

organic matter and

increases P₂O₅ by

removing carbonate CaCO₃ CaO + CO₂

ADVANTAGES Removes organic matter Boosts P₂O₅ content Reduces Cadmium

DISADVANTAGES

Sulfides formation Reduces reactivity which

causes instability in

some phosphoric acid

production units Cost

Phosphate is floated out

forming the gangue. Carbonate

and clay are removed by

floatation and the phosphate

rock is removed from the

bottom of the cell

Used to increase P₂O₅ from 5-6% to 36%+ in Kola, South

Africa and Finland

PARAMETERS OF THE PROCESS

“Liberation” of the rock by

size reduction

Reagents

PH control

Level of organic material in

the rock

ADVANTAGES The rock is fine (-35 mesh)

and less dusty P₂O₅ increases even for

rock with “flat” curve for

particle size distribution

The P₂O₅ level in the phosphate rock has different

size fractions which can be presented by a normal

curve

Dry Mechanical Washing Calcination Floatation

Industry Trends

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Growing fertilizer demand

Population growth

Growing food demand

Improving diets in

developing countries

Diminishing arable land per capita

Farm yield enhancement

policies

Growing biofuel

demand

Phosphate reserves depleting globally: ₋ Some estimate 15 million tonnes of phosphate

reserve depletion to occur within the next 75-100 years

Demand increasing: ₋ Annual consumption of 40m tonnes ₋ Global consumption expected to grow 2% per

annum globally (FAO, USGS)

30%

Morocco’s share in global exports of phosphate

Growing need to maximise agricultural yield

Phosphate Rock Outlook

Source: IFA Fertilizer Outlook 2011-2015 (e) estimated, (f) forecast

YearGlobal P₂O₅ Demand

(in Mt)

2008-2009 33.6

2009-2010 38.3

2010-2011 (e) 40.9

2011-2012 (f) 41.7

2015-2016 (f) 45.2

Average Annual

Growth Rate3.1%

Industry Stats

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Production (2008) Reserves

China 50 4100

US 31 1200

Morocco 28 5700

Russia 11 200

Tunisia 7.8 100

(in million tonnes)

Top 5 Phosphate Producers

Phosphate Supply and Reserves

in Kt

Annual

Growth in Kt

Annual

Growth in Mt

Avg

Grade

Africa 7,498 7.90% 1,393 0.80% 7,106 26%

Americas 11,417 1.30% 11,614 1.60% 5,412 23%

Asia 15,484 4.50% 20,560 3.00% 1,590 24%

Europe 4,708 0.00% 4,031 6.10% 480 7%

Oceania 565 0.90% 859 -0.40% 140 18%

Total 39,672 3.60% 38,456 2.80% 15,528 -

Supply Demand Reserves

62%

of identified recoverable phosphate rock reserves are in Morocco (Source: CRU)

Source: FAO

Source: USGS

Disclaimer

This presentation contains forward-looking statements or forward-looking information within the meaning of applicable securities legislation (hereinafter collectively referred to as "forward-looking statements") concerning the Company's plans for its properties, projects, operations, subsidiaries and other matters. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management regarding operations of the Company which are subject to a variety of business and market risks, including political and regulatory risks associated with mining and exploration in Mali.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements.

These forward-looking statements are based on certain assumptions which the Company believes are reasonable, however, forward-looking statements are subject to a variety of business and political risks and uncertainties. Some of the important risks and uncertainties that could affect forward-looking statements are also described in the Company's continuous disclosure filings made with Canadian securities regulatory authorities, which are available at the SEDAR website and on the Company’s website. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, they may adversely affect the Company’s business and prospects and actual results may vary materially from those described in forward-looking statements. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, other than as required by applicable laws. Investors are therefore cautioned against placing undue reliance on forward-looking statements.

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Great Quest Metals Ltd

TSX-V: GQ

Suite 515, 475 Howe Street Vancouver, BC, V6C 2B3

WWW.GREATQUEST.COM

Tel +1 604.689.2882 Toll Free 1.877.325.3838 Fax +1 604.684.5854 Email info@greatquest.com