Resources

A NI 43-101 compliant mineral resource estimate (MRE) was prepared by independent consultants K-UTEC AG Salt Technologies, a German consulting firm with expertise in potash mining, in July 2015. The total MRE includes the Sylvinite (SYL), Upper Carnallitite (UCAR), Lower Carnallitite (LCAR) and the Kainitite (KAI) potash bearing beds. The MRE, which drill tested about 40% of the licence area to a depth of 500 metres, comprises a Measured and Indicated Mineral Resource totaling 2.8 Bt at an average grade of 18.6% KCl, for a total of 525.8 Mt of contained KCl and an Inferred Mineral Resource of 2.1 Bt at an average grade of 17.5% KCl, for a total of 366 Mt contained KCl.

Seismic data confirms the continuity of the potash layers throughout the rest of the licence area with maximum depths of about 600 to 800 meters in the central part of the basin and becoming shallow again to the east. The geological estimate of the endowment of the remaining 60% of the Danakil Potash Project licence area is an additional 7 to 9 billion tonnes. This suggests a potential overall resource size of 12 to 14 billion tonnes of potash bearing salt beds within the licence boundary, making it potentially one of the world’s largest undeveloped potash mineral deposits.

A summary of the July 2015 Mineral Resource Estimate for the Danakil Project is presented in the tables below.