T h e M i l e s t o n e P r o j e c t

Transcription

1 T h e M i l e s t o n e P r o j e c t June 2014 Growth Through the Salt of the Earth

2 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: the ability of the Company to access capital, the ability of the Company to conclude a transaction(s) with third parties to fund the development of our projects and mineral properties (including the Milestone Project); 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 any of the capital and operating cost estimates as may be disclosed in the Company s public record, as filed on SEDAR. 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. If disclosed, no qualified person acting for the Company will have done sufficient work to classify the historical estimates as current mineral resources or mineral reserves. The Company does not treat any historical estimate as current mineral resource or mineral reserve. The Company has prepared and filed an NI Technical Report titled NI Technical Report Summarizing the Feasibility Study for a Potash Solution Mine on the Milestone Project (Subsurface Mineral Lease KLSA 008), Saskatchewan dated November 25, 2013 and effective December 6, The report was prepared by Agapito Associates, Inc. and AMEC Americas Limited. The economic analysis used in the report was based on measured and indicated resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Qualified Persons under NI Please refer to the specific document accessible, cross-referenced or otherwise referred to in this presentation for the description of the particular applicable qualified person(s) in respect of that document. For general purposes, please note the following. The Feasibility Study was read and approved by Dr. Michael P. Hardy, P.E. (US), P.Eng. (SK), Dr. Douglas F. Hambley, P.E. (US), P.Eng. (SK), P.G. (US), Dr. Bo Yu, P.E. (US), Ryan P. Leland, P.Eng., A. Stuart Middleton, P.Eng., and Paul O Hara, P.Eng., all independent Qualified Persons as defined by NI The Feasibility Study has been prepared by Agapito Associates, Inc. and AMEC Americas Limited. The in-house Qualified Persons for the purposes of NI guidelines are J. Patricio Varas, P.Geo., and Dean Pekeski, P.Geo., both of whom have reviewed and approved the scientific and/or technical contents of this presentation. Cautionary Note to U.S. Readers and NI 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 Standards of Disclosure for Mineral Projects ( NI ) 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 ; 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. Mineral resources that are not mineral reserves do not have demonstrated economic viability. 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. TSX - WPX FSE - AHE 2

3 Experienced Management Patricio Varas President & CEO Professional Geologist with over 25 years experience in exploration, project development and corporate management WPX President and CEO since inception Executive Vice President Dean Pekeski Professional Geologist with over 17 years experience in mineral exploration Previously the VP of Exploration with WPX Project Director Richard Lock Over 24 years engineering experience in the mining industry Involved with Rio Tinto's Diavik Diamonds Project - Took the project from the evaluation stage to production VP Corporate Development John Costigan Over 25 years experience in technical sales /marketing to the mining, food, and pulp & paper multinationals VP of Corporate Development at WPX since inception Limin Sun Executive Vice President, Communications 15 years of mining industry experience focusing on government relations, public company administration and human resources Extensive international relations experience with Ivanhoe Group Companies VP Corporate Finance & Director Patrick Power Over 17 years of experience as a stock market professional and as director of public companies Played a critical role in raising approximately 80 million for WPX to date Executive Vice President, Corporate David Thornley-Hall Over 20 years securities industry experience, corporate finance and regulatory compliance Former Managing Director of the UK office of a Canadian dollar bond brokerage and CEO of Parallel Resources Ltd. TSX - WPX FSE - AHE 3

4 Western Potash Corp. Delivers Raised over $140 million to date Executed a strategic alliance with CBCHC Obtained Environmental Assessment Approval Completed Feasibility Study (AMEC, 2012) Secured long-term sustainable water supply Defined a world-class potash deposit Secured strategic land package & critical pipeline right-of-way TSX - WPX FSE - AHE 4

5 Milestone Project Location 100% owned interest in the Milestone Project Targeting Asian Markets Canada Japan China The Milestone Project Milestone Project located in Saskatchewan, Canada TSX - WPX FSE - AHE 5

6 Infrastructure in Place Buffalo Pound Lake (c.12km) Railway Belle Plaine Regina 33 Port Kronau Drinkwater 6 Lajord Water (access) 39 Rouleau City Potash Mine Regina Effluent Discharge Waste Water Treatment Plant Minor Gas Pipeline Major Gas Pipeline Power Lines N Rail Major Road Creek/River Milestone Plant Location Milestone Indicated Resources Gray Milestone 306 Riceton Western Potash Milestone Project Lang Power Natural Gas Roadways Western Potash is securing the necessary infrastructure critical to the development of Milestone TSX - WPX FSE - AHE 6

7 Milestone Technically De-Risked Large Scale and High Grade reserve base Feasibility Study Completed (AMEC, 2012) Water Supply Secured (Definitive Agreement with the City Of Regina) critical pipeline right-of-way obtained Environmental Assessment Approval issued by the Saskatchewan Ministry of Environment on the Milestone Project in March 2013 TSX - WPX FSE - AHE 7

8 Milestone Solution Mining Solution mining advantages versus Conventional Mining: Reduced Capital Costs Shorter payback period - higher IRR Faster timeline to production Ability to mine deep deposits Lower technical, environmental and safety risk Well established methodology The Milestone Project benefits from using Solution Mining methods TSX - WPX FSE - AHE 8

9 CBC (Canada) Holding Corp. CBCHC completed a strategic investment of $32M in WPX June, 2013 and now holds a 19.9% interest in Western Potash. Includes offtake considerations. CBC (Canada) Holding Corp. and Western Potash Corp. intend to jointly develop Western s Milestone Project Validates WPX as world class asset and reduces debt investors risk China BlueChemical Ltd. is the controlling shareholder of CBCHC China Blue is a majority owned subsidiary of China National Offshore Oil Corporation (CNOOC) TSX - WPX FSE - AHE 9

10 Strategy Toward Production Committee Selection Evaluation of Financial Frameworks Partner Investigation Negotiations Financing & Closing Early Construction Begins TSX - WPX FSE - AHE 10

11 Why Invest in WPX? Mitigation of Technical Risk to attract production financing Global potash market strengthening Chinese potash demand expected to increase Strong and experienced management Healthy cash position Milestone is one of the most advanced and independent greenfield potash projects globally TSX - WPX FSE - AHE 11

12 West Georgia St. Vancouver, BC V7Y 1C6 Canada Thank you Growth Through the Salt of the Earth