Wrap Text
Financial Report for the half year ended 30 June 2018
Kore Potash plc
(Incorporated in England and Wales)
Registration number 10933682
ASX share code: KP2
AIM share code: KP2
JSE share code:KP2
ISIN: GB00BYP2QJ94
(“Kore Potash” or the “Company”)
FINANCIAL REPORT FOR THE HALF YEAR ENDED 30 JUNE 2018
Kore Potash, the potash exploration and development company whose flagship asset is the Kola
Project (“Kola” or the “Project”), located within the Company’s 97%-owned Sintoukola Potash
Project in the Republic of Congo, is pleased to provide its financial statements for the half year
ended 30 June 2018 (the "Period"). The full report is available on the Company's website at
http://www.korepotash.com/wp-content/uploads/2018/09/Half-Year-Report-June-2018.docx.pdf
Highlights
- On 29 March 2017 Kore Potash completed its listing on the AIM market of the London Stock
Exchange (“AIM”) as well as a secondary listing on the main board of the Johannesburg Stock
Exchange (“JSE”), in addition to its existing Australian Securities Exchange (“ASX”) listing.
- US$13.14M was raised through the placing and direct subscription of new ordinary shares in
the Company, and a convertible loan note, at a 67% premium to the Company’s last closing
share price on the ASX. The Placees have been granted equity warrants on the basis of one
equity warrant for every US$1.00 invested in the Placing exercisable at AUS$0.30 for one
ordinary share with a 3 year subscription period.
- Kore Potash through its 97% subsidiary Sintoukola Potash S.A. was awarded the Sintoukola 2
Exploration Permit, dated 9th February 2018, by the government of the Republic of Congo
(RoC). This permit covers areas the Company believes are prospective for Potash
mineralisation.
- The Kola Definitive Feasibility Study (“DFS”) is at an advanced stage. Work continues to
complete the overall estimate of the construction schedule, capital and operating costs and
the DFS Report and the Company expects to receive the DFS from the engineering consortium
undertaking the work by the end of September 2018 upon which it will commence its review.
- The Company has contracted a consortium of French engineering companies comprising of
Technip France, Vinci Construction Grands Projets, Egis International and Louis Dreyfus
Armateurs SAS. (“the French Consortium” or “FC”) to complete the DFS.
- The FC now anticipate completion of the current scope of work for the DFS by the end of
September 2018 following which the Company will commence its review of the completed
DFS, prior to finalising and publishing the report.
- A licence for the Company to use an Offshore Area for the transhipment of potash and the
discharge of waste brine has been authorised by the Minister of Transport, Civil Aviation and
Merchant Marine of the Republic of Congo was issued to the Company on 6 September 2018.
- Amendments to the Kola environmental and social impact assessment (the “ESIA”) have been
made reflecting project design changes since the ESIA was approved on 10 October 2013. The
amendments were submitted to the Director General of the office of the Minister of
Environment and Tourism on 7 July 2018 for their review.
- The ratification, into RoC law, of the mining convention for the Kola Project is still in progress.
- Appointment of Brad Sampson to replace Sean Bennett as Chief Executive Officer and
Executive Director, effective from 4 June 2018.
- Appointment of Jose Antonio Merino as a Non-Executive Director on 23 May 2018. Jose
Antonio is nominated by Sociedad Quimica y Minera de Chile S.A. (“SQM”) and replaced Pablo
Altimiras, whose resignation was announced on 26 April 2018.
- The Company declared a maiden sylvinite Mineral Resource Estimate for the Dougou
Extension sylvinite Deposit on 20 August 2018.
For further information, please visit www.korepotash.com or contact:
Kore Potash Tel: +27 11 469 9140
Brad Sampson – CEO
Tavistock Communications Tel: +44 (0) 20 7920 3150
Jos Simson
Edward Lee
Canaccord Genuity – Nomad and Broker Tel: +44 (0) 20 7523 4600
Martin Davison
James Asensio
Renaissance Capital – JSE Sponsor Tel: +27 (11) 750 1448
Yvette Labuschagne
12 September 2018
JSE Sponsor: Rencap Securities (Pty) Limited
Operating results
Net operating loss after tax for the half-year ended 30 June 2018 was US$4,570,790 (H1 2017:
US$691,130). The Company incurred a one-off expenses totalling US$1,087,911 for the half-year
relating to the London and Johannesburg listings and re-domicile expenses, non-cash expense in
regard to the issuance of options and performance rights of US$676,255 (H1 2017: US$ 906,265),
salaries, employee benefits and consultancy expense of US$712,539 (H1 2017: US$455,012) and other
administration expenses of US$1,994,967 (H1 2017: US$865,694). The foreign exchange gain for the
period was US$99,749 (H1 2017: USD 1,664,560 gain).
At 30 June 2018, the Group had $145,043,137 in capitalised Exploration and Evaluation asset (31 Dec
2017: $140,254,520). Cash and cash equivalents reduced by US$2,236,134 during the period to
US$14,219,356 at 30 June 2018. Expenditure incurred on the Kola Definitive Feasibility Study and
capitalised into Exploration and Evaluation Assets along with operating expenses was partially offset
by the capital raise described below. The total equity of the Group increased from $154,286,056 at 31
December 2017 to $158,820,432 at 30 June 2018.
Corporate activities
London and JSE listings successfully completed along with a well-supported Fundraising
- On 29 March 2018 the Company successfully completed its admission to AIM and a concurrent
secondary listing of its ordinary shares on the main board of the Johannesburg Stock Exchange
(“JSE”) as part of its strategy to better access capital markets where there is a strong
understanding of large scale African mining projects and therefore attract a broader investor
base. The Company remains listed on the ASX.
- On 29 March 2018, the Company also raised gross aggregate proceeds of US$13.14m,
comprising a total of US$12.89m raised from existing and new investors (the “Placees”)
through the placing and direct subscription of 83,523,344 ordinary shares in the Company at
a placing price of AUD0.20 per new Ordinary Share, which was at a 67% premium to the
Company’s last closing share price on the ASX prior to the raise. In addition, the Company
raised US$250,000 from the Chairman, David Hathorn, through a convertible loan note that
has converted into ordinary shares on 27 July 2018 pursuant to shareholder approval at the
annual general meeting of the Company held on 27 June 2018. The Placees have been granted
equity warrants on the basis of one equity warrant for every US$1.00 invested exercisable at
AUD0.30 for one ordinary share with a 3 year subscription period.
- Brad Sampson was appointed as Chief Executive Officer on 4 June 2018. Brad, a mining
engineer, has more than 25 years’ resources industry experience across numerous locations
including West and Southern Africa. In addition to significant mine development and
operating experience, Brad has held leadership positions at several publicly listed companies.
Brad was most recently CEO of Australian Securities Exchange listed Tiger Resources. Prior to
this Brad held senior positions at Newcrest Mining Ltd, was CEO at AIM/ASX listed Discovery
Metals Ltd, and other notable positions include General Manager at Goldfields operations in
South Africa and Australia.
- Appointment of Jose Antonio Merino as a Non-Executive Director nominated by SQM. Jose
Antonio joined SQM in 2016 and is currently M&A Director, prior to which he worked at EPG
partners as head of a mining private equity fund, at Asset Chile, a Chilean boutique investment
bank and at Santander Investment. He is a qualified civil engineer having graduated from
Pontificia Universidad Catolica de Chile.
- On 27 June 2018, the Company’s AGM was held with all resolutions passed.
Operational activities
The Kola Definitive Feasibility Study
- The Company’s activities are focused on the development of the Sintoukola Potash project
and the Company is currently working to complete a DFS on this project. The DFS is being
undertaken by the French Consortium.
- The DFS is at an advanced stage with test work and engineering design complete and work to
conclude capital and operating cost estimates are continuing. The FC now anticipate
completion of the current scope of work for the DFS by the end of September 2018 and to
then present it to the Company for review prior to its finalisation and publication.
- In parallel with the completion of the DFS the Company has commissioned third-party review
of some aspects of the DFS with a view to optimising the DFS outcomes and subsequent
Engineering, Procurement and Construction (EPC) pricing.
- The Company is also engaging with the FC to optimise the capital costs of the project prior to
finalisation of capital and operating cost estimates.
Environmental and social impact assessment (“ESIA”)
- The Kola ESIA received a Certificate of Conformity from the Government of the Republic of
the Congo on 10 October 2013.
- Subsequently, the DFS design has incorporated a number of value adding design changes to
Kola since the approval of the ESIA and the Company undertook to amend the ESIA
accordingly.
- The work to amend the Kola ESIA is complete. The amended ESIA was submitted to the
Director General of the office of the Minister of Environment and Tourism on 7 July 2018 and
is currently awaiting the Minister’s approval.
- In addition to the ESIA, the Company is completing an analysis to identify and close any gaps
between the ESIA approved by the Government of the RoC and established international
industry practice and the Equator Principles. This process will generate an environmental and
social action plan (ESAP) that the Company believes will meet debt financiers’ requirements.
- Public consultations with Interested and Affected Parties on the amendments to the ESIA took
place between 7 -15 July 2018.
- The ESIA for the Dougou Mining License was approved by the Minister of Tourism and
Environment of the RoC on 13 July 2018. The ESIA approval is granted for a 12 month period
and is renewable annually until construction of a project commences.
Work streams initiated with RoC stakeholders and authorities
- The Company is progressing discussions toward a Memorandum of Understanding for power
supply with an existing independent power producer (IPP), Centrale Electrique du Congo.
- Discussions with ENI Congo are continuing for the supply of gas (for drying and/ or for self-
generating power).
- A licence for the Company to use an Offshore Area for the transhipment of potash and the
discharge of waste brine has been authorised by the Minister of Transport, Civil Aviation and
Merchant Marine of the Republic of Congo was issued to the Company on 6 September 2018.
- A Resettlement Action Plan (“RAP”) for the project land and a second framework RAP for the
services corridor (for gas and power conveyance) have been prepared.
- A new Declaration d’Utilité Publique (“DUP”) process covering the entire project land area
(mine, over land conveyor, process plant and services corridor) is expected to be launched
shortly by the Ministry of Land Affairs and Public Domain. The DUP will define any
compensation arrangements required as a result of Kore’s activity on the land area.
RoC regulatory requirements
- The Mining Convention (approved by the cabinet on 8 June 2017) is currently in the process
of ratification into RoC law.
- The Company has submitted a proposed Mining Research Convention to the Government in
relation to the Sintoukola 2 exploration licence that was granted to the Company on 9
February 2018. The approval of a Mining Research Convention is a required step prior to
commencement of exploration activity (including drilling).
- The intra-group transfer of the Dougou Mining License from Sintoukola Potash S.A., to the
operating entity incorporated in the RoC, Dougou Potash Mining S.A, is expected to be
approved by the Ministry of Mines and Geology shortly and implemented through
Governmental Decree.
Exploration activity
- No field-work exploration activities were undertaken during the period, or are currently
underway, and as such no exploration results were received or are expected in the near term.
- Based on results from drilling in 2017 and earlier, and an interpretation of historic seismic
data, the Company declared a maiden sylvinite Mineral Resource Estimate for the Dougou
Extension sylvinite Deposit on 20 August 2018. The combined Inferred and Indicated sylvinite
Mineral Resource Estimate is 232 Mt grading 38.1% KCl (Table 1), reported according to JORC
2012. Added to the Kola sylvinite Deposit, this new deposit brings the Company’s total
sylvinite Mineral Resources to over 1 billion tonnes.
Kore’s Potash Mineral Resources
Table 1. Kore’s Potash Mineral Resources, provided as Gross and Net Attributable (to Kore’s 97%
holding)
Table 1. Kore’s Potash Mineral Resources provided as Gross and Net Attributable (to Kore’s 97% holding)
KOLA SYLVINITE DEPOSIT
Gross Net Attributable
Million Contained KCl Million Grade KCl Contained KCl
Mineral Resource Category Grade KCl %
Tonnes million tonnes Tonnes % million tonnes
Measured 216 34.9 75 209 34.9 73
Indicated 292 35.7 104 283 35.7 101
Sub-Total
508 35.4 180 492 35.4 174
Measured + Indicated
Inferred 340 34.0 116 330 34.0 112
TOTAL 848 34.8 295 822 34.8 286
DOUGOU EXTENSION SYLVINITE DEPOSIT
Gross Net Attributable
Million Contained KCl Million Grade KCl Contained KCl
Mineral Resource Category Grade KCl %
Tonnes million tonnes Tonnes % million tonnes
Measured - - - - - -
Indicated 111 37.2 41 108 37.2 40
Sub-Total
111 37.2 41 108 37.2 40
Measured + Indicated
Inferred 121 38.9 47 117 38.9 46
TOTAL 232 38.1 88 225 38.1 85
TOTAL SYLVINITE, KOLA & DOUGOU EXTENSION DEPOSITS COMBINED
Measured + Indicated +
1,080 35.5 384 1,048 35.5 372
Inferred
DOUGOU CARNALLITE DEPOSIT
Gross Net Attributable
Million Contained KCl Million Grade KCl Contained KCl
Mineral Resource Category Grade KCl %
Tonnes million tonnes Tonnes % million tonnes
Measured 148 20.1 30 144 20.1 29
Indicated 920 20.7 190 892 20.7 185
Sub-Total
1,068 20.6 220 1,036 20.6 214
Measured + Indicated
Inferred 1,988 20.8 414 1,928 20.8 401
TOTAL 3,056 20.7 634 2,964 20.7 615
KOLA CARNALLITE DEPOSIT
Gross Net Attributable
Million Contained KCl Million Grade KCl Contained KCl
Mineral Resource Category Grade KCl %
Tonnes million tonnes Tonnes % million tonnes
Measured 341 17.4 59 331 17.4 58
Indicated 441 18.7 83 428 18.7 80
Sub-Total
783 18.1 142 760 18.1 138
Measured + Indicated
Inferred 1,266 18.7 236 1,228 18.7 229
TOTAL 2,049 18.5 378 1,988 18.5 367
Table 1 Notes:
- The Mineral Resource Estimates are reported in accordance with the JORC code 2012 edition.
- Table entries are rounded to the appropriate significant figure.
- The Kola Mineral Resource Estimate was reported on the 6 July 2017. The Competent Person (CP) is Garth Kirkham of Met-
Chem division of DRA Americas Inc., a subsidiary of the DRA Group. It was reported using a cut-off grade (CoG) of 10% KCl.
- The Dougou Extension Mineral Resource Estimate was reported on the 20 of August 2018; the CP is Mr. Andrew Pedley of
Kore Potash. The Dougou Extension MRE is reported using a CoG of 15% KCl.
- The Dougou Mineral Resource Estimate was reported on the 9 February 2015; the Competent Persons are Dr. Sebastiaan
van der Klauw and Ms. Jana Neubert of ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH (“ERCOSPLAN“).
- The form and context of the Competent Person’s findings as presented in this document have not materially changed since
the resource was first reported.
Condensed consolidated statement of profit or loss and other comprehensive income for the half-
year ended 30 June 2018
6 months ended 6 months ended Year ended
30 June 2018 30 June 2017 31 Dec 2017
Notes US$ US$ US$
Continuing operations
Interest income 20,454 36,678) 50,858)
20,454 36,678) 50,858)
Expenses
Directors remuneration (420,210) (162,080) (365,371)
Equity compensation benefits 5 (676,255) (906,265) (1,919,924)
Salaries, employee benefits and consultancy expense (712,539) (455,012) (1,595,607)
London listing and re-domicile expenses (1,087,911) - (1,549,554)
Other administration expenses 6 (1,994,967) (865,694) (1,746,603)
Net unrealised and realised foreign exchange gains 99,749 1,664,560 2,864,226
Fair value change of a derivative financial liability 18 213,313 - -
Interest and finance expenses (1,542) (3,317) (39,378)
Loss before income tax expense (4,559,909) (691,130) (4,301,353)
Income tax expense 7 (10,881) - (42,969)
Loss for the period from continuing operations (4,570,790) (691,130) (4,344,322)
Other comprehensive (loss)/income
Items that may be reclassified subsequently to
profit or loss
Exchange differences on translating foreign
(3,786,338) 7,923,150 13,590,884
operations
Other comprehensive (loss)/income for the period (3,786,338) 7,923,150 13,590,884
Total comprehensive (loss)/income for the period (8,357,128) 7,232,020 9,246,562
Loss attributable to:
Owners of the Company (4,538,341) (691,130) (4,344,322)
Non-controlling interest (32,449) - -
(4,570,790) (691,130) (4,344,322)
Total comprehensive (loss)/income attributable to:
Owners of the Company (7,892,158) 7,232,020 9,246,562
Non-controlling interest (464,970) - -
(8,357,128) 7,232,020 9,246,562
Earnings per Share from Continuing Operations
Basic and diluted loss per share (cents per share) 16 (0.56) (0.09) (0.57)
30 June 2018 30 June 2017 31 Dec 2017
Notes US$ US$ US$
ASSETS
Current Assets
Cash and cash equivalents 14,219,356 33,946,629 16,455,490
Trade and other receivables 312,251 230,668 299,399
Total Current Assets 14,531,607 34,177,297 16,754,889
Non-Current Assets
Trade and other receivables 134,938 121,631 139,163
Property, plant and equipment 357,081 387,827 413,801
Exploration and evaluation expenditure 8 145,043,137 117,038,885 140,254,520
Total Non-Current Assets 145,535,156 117,548,343 140,807,484
TOTAL ASSETS 160,066,763 151,725,640 157,562,373
LIABILITIES
Current Liabilities
Trade and other payables 9 846,131 533,416 3,276,317
Derivative financial liability 17 400,200 - -
Total Current Liabilities 1,246,331 533,416 3,276,317
TOTAL LIABILITIES 1,246,331 533,416 3,276,317
NET ASSETS 158,820,432 151,192,224 154,286,056
EQUITY
Issued share capital – Ordinary Shares 10 859,234 204,510,196) 771,396
Redeemable Preference Shares - - 65,631
Reserves 216,046,613 23,010,292) 206,805,823
Accumulated losses (57,620,445) (76,328,264) (53,356,794)
Equity attributable to the shareholders of Kore
Potash plc 159,285,402 151,192,224 154,286,056
Non-controlling interests (464,970) - -
TOTAL EQUITY 158,820,432 151,192,224 154,286,056
Condensed consolidated statement of changes in equity for the half-year ended 30 June 2018
Foreign
Share Redeemable Currency Non-
Ordinary Premium Merger Preference Accumulated Option Translation Owners of Controlling Total
Shares Reserve Reserve Share Losses Reserve Reserve the Parent Interest Equity
US$ US$ US$ US$ US$ US$ US$ US$ US$ US$
Balance at 1 Jan 2018 771,396 - 203,738,800 65,631 (53,356,794) 11,814,770 (8,747,747) 154,286,056 - 154,286,056
Loss for the period - - - - (4,538,341) - - (4,538,341) (32,449) (4,784,102)
Other comprehensive income - - - - - - (3,353,817) (3,353,817) (432,521) (3,786,338)
Total comprehensive income - - - - (4,538,341) - (3,353,817) (7,892,158) (464,970) (8,570,440)
Transfer of previously lapsed
options - - - - 888,202 (888,202) - - - -
Transactions with owners:
Issue of shares 87,838 12,806,554 - - - - - 12,894,392 - 12,894,392
Share based payments - - - - - 676,255 - 676,255 676,255
Redeemable Preference
Shares cancelled - - - (65,631) - - - (65,631) - (65,631)
Free-attaching warrants - - - - (613,512) - - (613,512) - (613,512)
Balance at 30 June 2018 859,234 12,806,554 203,738,800 - (57,620,445) 11,602,823 (12,101,564) 159,285,402 (464,970) 158,820,432
Balance at 1 Jan 2017 200,572,926 - - - (75,637,134) 36,279,828 (22,338,631) 138,876,989 - 138,876,989
Loss for the period - - - - (691,130) - -) (691,130) - (691,130)
Other comprehensive income - - - - - - 7,923,150) 7,923,150) - 7,923,150)
Total comprehensive income - - - - (691,130) - 7,923,150) 7,232,020 - 7,232,020
Transactions with owners:
Issue of shares (net of costs) 3,937,270 - - - - 239,680 -) 4,176,950) - 4,176,950)
Share based payments - - - - - 906,265 -) 906,265) - 906,265)
Balance at 30 June 2017 204,510,196 - - - (76,328,264) 37,425,773 (14,415,481) 151,192,224) - 151,192,224)
Condensed consolidated statement of changes in equity for the half-year ended 30 June 2018
Foreign
Share Redeemable Currency Non-
Premium Merger Preference Accumulated Option Translation Owners of controlling Total
Ordinary Shares Reserve Reserve Share Losses Reserve Reserve the Parent Interest Equity
US$ US$ US$ US$ US$ US$ US$ US$ US$ US$
Balance at 1 Jan 2017 200,572,926 - - - (75,637,134) 36,279,828 (22,338,631) 138,876,989 - 138,876,989
Loss for the period - - - - (4,344,322) - - (4,344,322) - (4,344,322)
Other comprehensive income - - - - - - 13,590,884 13,590,884 - 13,590,884
Total comprehensive income - - - - (4,344,322) - 13,590,884 9,246,562 - 9,246,562
Transfer of previously lapsed - - -
options - 26,624,662 (26,624,662) - - - -
Redeemable Preference Shares - - - 65,631 - - - 65,631 - 65,631
Share issue (net of costs) 3,937,270 - - - - 239,680 - 4,176,950 - 4,176,950
Share based payments - - - - - 1,919,924 - 1,919,924 - 1,919,924
Scheme of Arrangement (203,738,800) - 203,738,800 - - - - - - -
Balance at 31 Dec 2017 771,396 - 203,738,800 65,631 (53,356,794) 11,814,770 (8,747,747) 154,286,056) - 154,286,056
Condensed consolidated statement of cash flows for the half-year ended 30 June 2018
6 months ended 6 months ended Year ended
30 June 2018 30 June 2017 31 Dec 2017
Notes US$ US$ US$
Cash Flows from Operating Activities
Net cash used in operating activities 18 (4,604,070) (1,374,158) (4,957,110)
Cash Flows from Investing Activities
Payments for plant and equipment (4,547) (37,563) (94,262)
Payments for exploration and evaluation (11,043,648) (13,065,335) (28,023,569)
Interest received 10,675 36,678) 50,858
Net Cash Flows Used in Investing Activities
(11,037,520) (13,066,220) (28,066,973)
Cash Flows from Financing Activities
Proceeds from issue of shares 12,894,392 5,000,000 5,000,000
Proceed from Convertible Note 250,000 - -
Payment for share issue costs - (823,050) (823,050)
Net Cash Flows Generated from Financing
Activities 13,144,392 4,176,950 4,176,950
Net decrease in cash and cash equivalents (2,497,198) (10,263,428) (28,847,133)
Cash and cash equivalents at beginning of
period 16,455,490 42,609,787 42,609,786
Foreign currency differences 261,064 1,600,270 2,692,837
Cash and Cash Equivalents at Period End 14,219,356 33,946,629 16,455,490
Forward-Looking Statements
This report 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 report 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 relating to Exploration Targets, Exploration Results, Mineral Resources or Ore
Reserves in this report is based on, or extracted from previous reports, as referred to in footnotes
herein, and available to view on the Company’s website. The Mineral Resource Estimate for the Kola
Deposit was prepared by Competent Person Mr. Garth Kirkham, P.Geo., a Member of the Association
of Professional Engineers and Geoscientists of British Columbia. The Mineral Resource Estimate for
the Dougou carnallite Deposit was prepared by Competent Persons Dr. Sebastiaan van der Klauw and
Ms. Jana Neubert, senior geologists and employees of ERCOSPLAN Ingenieurgesellschaft Geotechnik
und Bergbau mbH and members of good standing of the European Federation of Geologists. The
Mineral Resource Estimate for the Dougou Extension sylvinite Deposit was prepared by Competent
Person Mr. Andrew Pedley a full-time employee of Kore Potash, a registered professional natural
scientist (Pr. Sci. Nat) with the South African Council for Natural Scientific Professions and member of
the Geological Society of South Africa. The Company confirms that it is not aware of any new
information or data that materially affects the information included in the original market
announcements and, in the case of estimates of Mineral Resources or Ore Reserves that all material
assumptions and technical parameters underpinning the estimates in the relevant market
announcement continue to apply and have not materially changed. The Company confirms that the
form and context in which the Competent Person’s findings are presented have not been materially
modified from the original market announcement.
Date: 12/09/2018 11:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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