Why Saskatchewan

Benefits Overview

Canada’s prominent position in the world potash industry derives almost exclusively from Saskatchewan. With more than a third of global potash production and nearly half of known deposits worldwide, Saskatchewan continues to be a world leader.

Saskatchewan is well known for its multiple thick seams of consistently high-grade potash. As a result, the product is not only high quality, but requires a relatively low cost to extract – proven through 50+ years of mining. With the employment of solution mining, Saskatchewan can expect long and prosperous production, with a minimal footprint.

Saskatchewan has a well-developed infrastructure, a stable (and supportive) geopolitical environment, and easy access to international markets (in particular, the United States) making Saskatchewan the logical choice for serious resource development.

In summary, Saskatchewan has:

• nearly 50% of known deposits worldwide
• consistent high-grade potash, multiple thick seams
• proven low-cost continuous mining
• small footprint and long mine life (solution mining)
• excellent access to US and international markets
• well developed infrastructure
• predictable freight to tidewater
• geopolitical stability

Typical Saskatchewan solution potash mine economics:

Capex Per tonne ($Cdn)

• Primary Mining: $881/t
• Secondary Mining: $167/t
• Total: $1,048/t

Operating Costs Mine Mouth ($Cdn)

• Process Plant* $56/t
• Mine Operating* $11/t
• Total: $67/t

Corporate SG&A: $13/t

Transportation Costs (FOB Vancouver ): $45/t

*Operating costs assume water costs of $0.55/1m², natural gas $5/GJ, power $.05/kW & $5.85/Kva demand

*Costs are based on the typical solution mining approach. Gensource Potash Corporation is driving towards dramatic improvements

Typical Saskatchewan solution mining math