South Harz Potash Limited announced the key outcomes from the recently completed Scoping Study on its development of the Ohmgebirge deposit at its 100%- owned, world-class South Harz Potash Project in Thuringia, Germany (Ohmgebirge Development). The Scoping Study has demonstrated the technical and financial robustness of a vertical shaft access, underground mining operation at Ohmgebirge with a conventional cold water leach - hot crystallization process producing approximately 1 Mtpa of premium Muriate of Potash (MOP) product for sale predominantly into proximate European fertilizer markets. The South Harz Board has approved progression to a Pre-Feasibility Study (PFS) on the Ohmgebirge Development, which is scheduled for completion in Fourth Quarter CY2023.

The PFS is set to focus on a 1 Mtpa MOP operation. A two-phase alternative (500 + 500 ktpa) with a lower peak financing requirement is also planned to be progressed alongside. Requisite environmental and social impact assessment and permitting requirements are well understood and set to parallel the next phases of technical feasibility work to progress the Ohmgebirge Development as expeditiously as possible.

Further substantial upside potential at South Harz includes: The Scoping Study utilises a weighted average FOB Hamburg equivalent MOP price of USD 385/t. This includes an assumed price of USD 370/t for Standard European MOP product which compares with an average price for this product of approx. USD 340/t (real basis, FOB NW Europe) over the past decade, and the prevailing spot price of over USD 900/t (FOB NW Europe). Conservative salt price and sales volumes assumptions have also been adopted for the Ohmgebirge Development.

Clear potential upside to both inputs delivers the prospect of considerably greater revenue realisation from both MOP and salt sales at Ohmgebirge than currently incorporated. The Ohmgebirge Development focuses on the mining, processing and sale of MOP from solely the Ohmgebirge Sylvinite deposit (290 Mt resource). The broader South Harz Potash Project comprises multiple deposits with total potash resources exceeding 5 Bt.

Substantial long-term opportunity exists in developing multiple potash mining operations in the district. Opportunities to partner proximate existing regional mine infrastructure with potential capital and permitting synergies are also set to be examined. The South Harz Project hosts a globally large-scale potash JORC (2012) Mineral Resource estimate of 258 Mt at 13.5% K2O of Indicated Resources and 5.0 Bt at 10.6% K2O of Inferred Resources across four 100%-owned project areas located favourably within central Europe.1 This comprises three perpetual potash mining licences, Ohmgebirge, Ebeleben and Mühlhausen-Nohra, and two potash exploration licences, Küllstedt and Gräfentonna, covering a total area of approximately 659km².

With strong established infrastructure and proximity to the key European market, the South Harz Project is well positioned to enable rapid development across multiple deposits.