Salt Lake Potash : First SOP Samples Produced from Lake Wells

ASX ANNOUNCEMENT

2 November 2016 FIRST SOP SAMPLES PRODUCED FROM LAKE WELLS EXCELLENT RESULTS FROM EVAPORATION AND PROCESS TESTWORK

Salt Lake Potash Limited (the Company or Salt Lake) is pleased to announce that ongoing results from a range of process development testwork have significantly enhanced the Lake Wells process model and reinforced the potential for the Project to become a globally significant Sulphate of Potash (SOP) crop nutrient source.

Highlights:

• Substantial volumes of brine from Lake Wells have been concentrated into harvest salts (Potassium and Sulphate mixed salts) in three separate trials under simulated and actual site conditions.

• International process development company, Hazen Research Inc. (Hazen), have processed 240kg of Lake Wells brine to produce harvest salts. Flotation trials on the salts achieved excellent separation of halite from the harvest salts. The conversion and crystallisation of the salts then produced the first Sulphate of Potash (SOP) samples from Lake Wells brine.

  Figure 1 - Lake Wells' SOP

• An extensive Site Evaporation Trial (SET) has been established at Lake Wells. The SET has to date processed approximately 30 tonnes of brine and begun to produce harvest salts on a continuous basis. The SET will continue to operate for up to 12 months generating site specific evaporation data and producing sufficient harvest salts for bulk production of SOP samples for distribution to potential partners and customers.

• Process testwork at Bureau Veritas (BV) in Perth has processed 90kg of brine to produce 3.25kg of mixed product salts and BV is continuing trials on a further 2,500kg of brine aimed at refinement of the Lake Wells process design.

Enquiries: Matthew Syme

Telephone: [phone]

ASX ANNOUNCEMENT | 2 November 2016

The Lake Wells SOP Production Process

The proposed process for production of SOP at Lake Wells first sees brine extracted from Lake Wells concentrated in a series of solar ponds to induce the sequential precipitation of salts, firstly eliminating waste halite and eventually producing potassium-containing salts (Harvest Salts) in the harvest ponds.

The Harvest Salts are treated in a processing plant to convert these salts into SOP, while minimising deportment of chloride (a contaminant) to the product. The SOP production process consists of crushing, reverse flotation to remove chlorides, conversion of the mixed sulphate salts to schoenite, and crystallisation of the schoenite to SOP before drying and packaging.

Figure 1 - Simplified Lake Wells SOP Conceptual Flowsheet

Bench Scale Trial - Hazen Research

Hazen Research, Inc. is a world class industrial research and development firm located in Golden, Colorado that has developed hundreds of hydrometallurgical, pyrometallurgical, and mineral beneficiation processes for most commercial metals and industrial minerals, and many inorganic and organic chemicals, including potash and other crop nutrients.

Salt Lake engaged Hazen to complete an evaporation, flotation and crystallisation trial on a representative sample of Lake Wells brine. The Hazen evaporation test was monitored using a USBM theoretical model; the actual evaporation pattern followed the modelled theoretical pattern very closely.

Hazen first evaporated an initial 240kg charge of brine under simulated site conditions producing 14kg of harvest salts for further testing.

ASX ANNOUNCEMENT | 2 November 2016

Figure 2 - Brine Evaporation at Hazen - Prior to Halite Harvest.

Sighter rougher reverse flotation tests were then conducted on the harvest salts (see Figure 3). Excellent initial halite separations were achieved in reverse flotation with approximately 90% of the halite removed from the harvest salts. Further rougher tests followed by rougher-cleaner and rougher-scavenger tests are planned to refine the process design in the coming months.

ASX ANNOUNCEMENT | 2 November 2016

Figure 3 - Rougher Flotation Test On Lake Wells Derived Mixed Sulphate Salts.

Flotation tails (harvest salt concentrate) were then converted to schoenite under controlled temperature and dilution conditions and filtered to recover the schoenite concentrate. XRD and ICP analysis of the converted schoenite showed excellent conversion to approximately 99% schoenite.

The schoenite was added to a saturated K2SO4 brine at 55ºC. At these conditions, SOP was crystallized from solution by selective dissolution and the Company successfully produced its first solid SOP marketing samples.