Growth Through the Salt of the Earth
September 2012
Disclaimer
Forward-Looking Statements and Cautionary Notes
This presentation contains statements that constitute “forward-looking statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934 and “forward-looking information” within the meaning of applicable Canadian securities legislation (collectively, “forward-looking statements”). Forward-looking statements often, but not always, are identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “targeting” and “intend” and statements that an event or result “may”, “will”, “should”, “could”, or “might” occur or be achieved and other similar expressions.
The forward-looking statements that are contained in this presentation are based on various assumptions and estimates by Western Potash Corp. (the “Company”) and involve a number of risks and uncertainties. As a consequence, actual results might differ materially from results forecast or suggested in these forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause the actual results to differ include: risks relating to fluctuations in the price of potash; the inherently hazardous nature of mining-related activities; uncertainties concerning resource estimates; results of exploration; availability of capital and financing on acceptable terms; inability to obtain required regulatory approvals; unanticipated difficulties or costs in any reclamation which may be necessary; market conditions and general business, economic, competitive, political and social conditions. These statements are based on a number of assumptions. The material assumptions upon which such forward-looking statements are based include, among others: that the demand for potash will develop as anticipated; that the price of potash will remain at levels that will render the Company’s potash projects economic; that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies, labour disturbances, interruption in transportation or utilities, or adverse weather conditions; that the Company will continue to have the ability to attract and retain skilled staff; and that there are no material unanticipated variations in the cost of energy or supplies, or in the pre-production capital and operating cost estimate as disclosed in the Company’s Preliminary Feasibility Study.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements, there may be other factors which cause actual results to differ. Forward-looking statements contained herein are made as of the date of this presentation and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
This presentation may contain information regarding a historical mineral resource. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. The Company is not treating the historical estimate as current mineral resources or mineral reserves.
The economic analysis contained in the Preliminary Feasibility Study (the highlights of which are contained in this presentation) is based on measured and indicated resources. The Preliminary Feasibility Study forms the fundamental basis of a NI 43-101 Technical Report titled “NI 43-101 Technical Report Summarizing the Preliminary Feasibility Study for a Potash Solution Mine on the Milestone Project (Subsurface Mineral Lease KLSA 008), Saskatchewan” dated effective October 31, 2011 and prepared by Agapito Associates, Inc. and AMEC Americas Limited. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Cautionary Note to U.S. Readers
This presentation contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. The Company advises US investors that the mining guidelines of the US Securities and Exchange Commission (the “SEC”) set forth in the SEC’s Industry Guide 7 strictly prohibit information of this type in documents filed with the SEC. The Company is exempt from the requirements of Industry Guide 7 pursuant to the Canada-US Multi-Jurisdictional Disclosure System. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits on adjacent or similar properties are not indicative of mineral deposits on the Company’s properties.
National Instrument 43-101 Standards for Disclosure of Mineral Projects (“NI 43-101”) is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. The disclosure in this presentation may use terms that comply with reporting standards in Canada. In addition, the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource”, “inferred mineral resource”, “probable mineral reserve” and “proven mineral reserve” are defined in and required to be used by the Company by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and normally are not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into mineral reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility studies, pre-feasibility studies or other economic studies, except in prescribed cases, such as in a preliminary economic assessment under certain circumstances. It cannot be assumed that all or any part of the measured mineral resources, indicated mineral resources or inferred mineral resources will ever be upgraded to a higher category.
Accordingly, information contained in this presentation containing descriptions of the Company’s mineral deposits may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.
Milestone Project Timeline
Phase 1 & 2
Drill Program
(20, 153m)
*Initial 43 101
Technical
Report
Scoping Study
Delivered
Purchased over 2,550 acres
to build the plant site.
**NI 43-101 Technical Report Delivered
Measured
67 Mt recoverable KCL
Indicated
187 Mt recoverable KCL
Inferred
701 Mt recoverable KCL
Feasibility
Completion
Q4 2012
2009
2010
2011
2012
*Effective October 31st 2011, NI 43-101 Technical Report Summarizing the Prefeasibility Study for a Potash Solution Mine on the Milestone Project (Subsurface Mineral Lease KLSA 008), Saskatchewan. Agapito Associates Inc. Q.P. : Michael
P. Hardy, Ph.D.,P.E.,P.Eng., Douglas M. Hambley, Ph.D., P.E.,P.Eng.,P.G. AMEC Americas Limited Q.P.: Paul O’Hara, P.Eng. Western Potash Corp. Q.P.: Dean Pekeski, P.Geo., Greg Vogelsang, P.Eng., P.Geo.
**Effective July 12, 2010, Concerning Mineral Resource Estimates Subsurface Mineral Permits KP 408 and KP 409 Saskatchewan. Agapito Associates Inc. Q.P.: Michael P. Hardy, Ph.D.,P.E.,P.Eng., Douglas M. Hambley, Ph.D., P.E.,P.Eng.,P.G. Western Potash Corp. Q.P.-Dean Pekeski, P.Geo.
Milestone Property
2009
2D Seismic Work
Drill Program
2010
Drill Program
Resource Estimate Delivered
Scoping Study Delivered
2011
Drill Program
MOU City of Regina (Water)
Plant Site Acquired
Updated Technical Report Delivered
PFS Completed
2012
Feasibility Process Continues
Environmental review commences
World Class Resource
NI 43 101 Technical Report
Measured Recoverable
Resource
•
66.6 Million Tonnes
25.75% KCL
Indicated Recoverable
Resource
• 186.68 Million Tonnes
25.97% KCL
Inferred Recoverable
Resource
• 708.18 Million Tonnes
25.96% KCL
Effective July 12, 2010, Concerning Mineral Resource Estimates Subsurface Mineral Permits KP 408 and KP 409 Saskatchewan. Agapito Associates Inc. Q.P.: Michael P. Hardy, Ph.D.,P.E.,P.Eng., Douglas M. Hambley, Ph.D., P.E.,P.Eng.,P.G. Western Potash Corp. Q.P.-Dean Pekeski, P.Geo.
