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Sample Header for slide Consultants in Geology and Engineering Understanding Saskatchewan s Potash Industry from Geology to the Press Release May 6, 2011

Outline Potash Geology 101 Potash Exploration Basics Potash Mining Methods Potash Resource Calculations Understanding Press Releases Exploration Costs

Saskatchewan Geology Athabasca Basin Precambrian Shield Phanerozoic Basin

Geologic Time http://destinationofmarvel.blogspot.com/2010/10/geological-timeline.html

Resources Saskatchewan is fortunate as we have many significant deposits that are desired around the world Potash/Salt Coal Clay/Kaolin Copper/Zinc Diamonds Gold Sodium Sulfate Uranium Stone Silica Sand

Potash Deposits of the World

Potash- Elk Point Basin

Potash Deposition North America 385 mya Middle Devonian Courteous of Ron Blakley

Prairie Evaporite Formation Fuzesy, 1982

Potash Geology in the Saskatoon Area

Potash Patience Lake Member Thickness

Potash Belle Plaine Member Thickness

Potash Esterhazy Member Thickness

Potash Holders in Saskatchewan

Potash Saskatchewan produces 33% of worlds potash Sylvinite is halite and sylvite (K 2 O) To convert K 2 O to KCl multiply by 1.583 21% K 2 O is 33.24% KCl Make sure you know what units they are reporting in Carnallite KMgCl 3 6(H 2 O) Insolubles Clay, dolomite, anhydrite

How to know it is GOOD Potash! - Seismic

Encanto 2011

How to get Potash! Courtesy of Encanto Potash Inc.

Core Handling on Site Courtesy of Encanto Potash Inc.

North Rim s Core Facility

Logging Core

Potash Resource Calculations

HOLE From (m) To (m) Thickness (m) K 2 O Grade over Potash Zone (%) Area with Exclusions (m 2 ) Volume (m 3 ) Gross Sylvinite Tonnage 2 -No Deductions- (MMT) 1 Net K 2 O Resource 3 (MMT) 1 KCl Resouce 4 Hole 1 900.00 903.50 3.50 21.00 2,000,000 7,000,000 3.06 0.85 1.34 Hole 2 903.50 906.50 3.00 21.00 2,000,000 6,000,000 2.62 0.73 1.15 Hole 3 900.00 903.00 3.00 21.00 2,000,000 6,000,000 2.62 0.73 1.15 Hole 4 903.50 906.50 3.00 22.00 2,000,000 6,000,000 2.75 0.76 1.20 Hole 5 901.00 904.50 3.50 25.00 2,500,000 8,750,000 4.55 1.26 2.00 Total 6,500,000 20,750,000 15.59 4.32 6.84 Weighted Average 3.19 22.85 BELLE PLAINE Hole 1 916.00 920.50 4.50 22.00 10,063,523 45,285,856 20.72 5.74 9.09 Hole 2 915.50 920.50 5.00 25.00 5,802,753 29,013,766 15.09 4.18 6.62 Hole 3 915.50 920.50 5.00 23.50 6,887,689 34,438,444 16.83 4.67 7.39 Hole 4 915.50 920.50 5.00 21.00 4,218,504 21,092,519 9.21 2.55 4.04 Hole 5 915.50 920.50 5.00 20.00 5,661,748 28,308,742 11.78 3.26 5.17 Total 32,634,217 158,139,325 73.63 20.41 32.31 Weighted Average 4.85 22.37 *Indicated resource from 0.0-2.0km Radius of influence. (Area calculations include anomaly, free hold, road allowance and buffer deductions) 1 MMT = Million metric tonnes 2 Sylvinite Tonnage based on 2.08T/m 3 sylvinite and is before deductions 3 Sylvinite Resources based on 35% extraction ratio; 10% deduction for anomalies and 12% plant loss 4 KCl Resource calculated by multiplying net K 2 O by 1.583 LOWER PATIENCE LAKE (MMT) 1 Formation Area with Exclusions (m 2 ) Area with Exclusions (km 2 ) Area with Exclusions (sections) Sylvinite Tonnage (MMT) All K 2 O Resource (MMT) All KCl Resource (MMT) Sylvinite Tonnage Per Section (MMT/Section)* * K 2 O Tonnage Per Section (MMT/Secti on)** KCl Tonnage Per Section (MMT/Secti on)** LPL 6,500,000 6.50 2.51 15.59 4.32 6.84 6.21 1.72 2.73 BP 32,634,217 32.63 12.60 73.63 20.41 32.31 5.84 1.62 2.56 Total 39,134,217 39.13 15.11 89.23 24.73 39.15 12.06 3.34 5.29 **Assuming 640 acres (2589988.11 m 2 ) per section Indicated Resource Summary

Conventional Potash Mining Mined with an automated continuous miner, capable of mining ~650t/h Mine ore is loaded onto conveyers and transported to the shaft and transported up the shaft for processing Uses a natural support, leaving some ore in place as pillars, generally 35% is mined and 65% is left in place Thermal Gradient at 1000m is ~27 o C

Conventional Potash Mining Continuous Tunnel Boring Machine (TBM) Conveyor system Rotary Head Mining Machine

Solution Potash Mining Potash is mined from underground caverns Mined by using heated brine and in-situ temperature (heat should be about 65 o C in the cavern) A solution of KCl, carnallite and insolubles is pumped to surface for processing Caverns are cylindrical shape ~50m wide and ~40m tall Thermal Gradient at 1600m is ~42 o C Currently two operating solution mines: PCS Patience Lake and Mosaic s Belle Plaine Mine

Solution Potash Mining Taken from Potash One Website

Hybrid Zone Conventional Mining Belt Hybrid Belt Solution Mining Belt

Potash Press Releases Member Table 1: Solution Mining Scenario Indicated and Inferred Mineral Resource Thicknes s (m) Average K₂O Grade (%)¹ Solution Mining Scenario Indicated Resource Summary* Average KCl Grade (%)¹ In-Place Sylvinite Tonnage (MMT)² Net K 2 O Resource (MMT) 3 Net KCl Resource (MMT) 3 Net KCl Resource Per Section (MMT/Sec) 4 Patience Lake 7.02 19.69 31.17 529.85 24.36 38.56 2.75 Belle Plaine 8.39 17.41 27.56 614.33 25.61 40.54 2.98 Total Excluding Interbed Formation 15.41 18.57 29.39 1,144.18 49.97 79.10 5.73 Thicknes s (m) Average K₂O Grade (%)¹ Inferred Resource Summary** Average KCl Grade (%)¹ In-Place Sylvinite Tonnage (MMT)² Net K 2 O Resource (MMT) 3 Net KCl Resource (MMT) 3 Net KCl Resource Per Section (MMT/Sec) 4 Patience Lake 7.16 19.28 30.52 403.74 18.64 29.50 2.82 Belle Plaine 8.44 17.62 27.89 464.61 19.60 31.03 3.04 Total Excluding Interbed 15.60 18.46 29.22 868.35 38.24 60.53 5.86 *Search Radius: 2.0km (between drill holes); MMt = million tonnes; Density used 2.08; KCl = 1.58303 K 2 O **Search Radius: 2.0km inner radius and 5.0km outer radius (between drill holes); MMt = million tonnes; Density used 2.08; KCl = 1.58303 K 2 O 1 "Average K₂O Grade" and "Average KCl Grade" refer to the weighted averages. 2 " In-Place Sylvinite Tonnage" refers to Volume of Rock*Density of Sylvinite in the project area. 3 "Net K₂O Resource" and "Net KCL Resource" refer to total amount of extractable K₂O and KCl resource in the project area. (Volume of Rock*Density of Sylvinite*Grade*Deductions). Deductions include 10% for unknown anomalies, a 35% extraction ratio, and 24% for cavern and plant losses. 4 Assuming 640 acres (2589988.11 m 2 ) per section. Encanto Potash March 18 th Release

Potash Press Releases Table 2: Conventional Mining Scenario Indicated and Inferred Mineral Resource Conventional Mining Scenario Indicated Resource Summary* Member Thickness (m) Average K₂O Grade (%)¹ Average KCl Grade (%)¹ In-Place Sylvinite Tonnage (MMT)² Net K 2 O Resource (MMT)³ Net KCl Resource (MMT)³ Net KCl Resource Per Section (MMT/Sec) 4 Patience Lake 3.30 24.36 38.56 117.25 7.91 12.53 1.90 Belle Plaine 5.07 22.09 34.97 344.29 21.06 33.34 2.65 Total 8.37 22.87 36.20 461.54 28.98 45.87 4.55 Member Thickness (m) Average K₂O Grade (%)¹ Inferred Resource Summary** Average KCl Grade (%)¹ In-Place Sylvinite Tonnage (MMT)² Net K 2 O Resource (MMT)³ Net KCl Resource (MMT)³ Net KCl Resource Per Section (MMT/Sec) 4 Patience Lake 3.31 24.14 38.21 88.61 5.93 9.39 1.89 Belle Plaine 5.15 22.28 35.27 238.83 14.74 23.33 2.71 Total 8.46 22.96 36.35 327.44 20.67 32.72 4.59 *Search Radius: 2.0km (between drill holes); MMT = million tonnes; Density used is 2.08; KCl = 1.58303 K 2 O **Search Radius: 2.0km inner radius and 5.0km outer radius (between drill holes); MMT = million tonnes; Density used is 2.08; KCl = 1.58303 K 2 O 1 "Average K₂O Grade" and "Average KCl Grade" refer to the weighted averages. 2 " In-Place Sylvinite Tonnage" refers to Volume of Rock*Density of Sylvinite in the project area. 3 "Net K₂O Resource" and "Net KCL Resource" refer to total amount of extractable K₂O and KCl resource in the project area. (Volume of Rock*Density of Sylvinite*Grade*Deductions). Deductions include 10% for unknown anomalies, a 35% extraction ratio, and 12% for plant losses. 4 Assuming 640 acres (2589988.11 m 2 ) per section. Encanto Potash March 18 th Release

Potash Press Releases Gross Insitu Tonnes WITHOUT Deductions Net Tonnes WITH deductions Deductions Seismic Anomalies Undetectable anomalies Carnallite zones Geographical buffers (towns, lands not owned) Extraction Ratio (usually 35%) so that means they take out 35% and leave 65% of the product in the ground Plant and transportation losses

Potash Exploration Costs Mineral Exploration Grass Roots Early Stage Exploration Desktop Studies $ 25,000.00 Mineral Resource Assessment Early Stage Definition Regional Studies $ 25,000.00 Definition of Potential area of sufficent acres $ 25,000.00 Subtotal $ 50,000.00 Note: these are cost estimates only Regional/favourable geology search $ 25,000.00 Historical Data Search $ 25,000.00 Speculative Mineral Potential Subtotal $ 75,000.00 Identification Stage Exploration Identification Studies $ 50,000.00 Acquiring Ground $ 5,000,000.00 Acquiring Historical Seismic $ 100,000.00 Conduct New 2D Seismic $ 1,000,000.00 Identifying Targets $ 25,000.00 Recommending Mining Methods $ 20,000.00 Speculative Mineral Potential Subtotal $ 6,195,000.00 Verification Stage Exploration Drill Program Design (3 to 5 wells) $ 25,000.00 Drill Program Evironmental $ 50,000.00 Subtotal $ 5,480,000.00 Execution of Drilling $ 5,000,000.00 Wellsite Geology $ 100,000.00 Sampling $ 25,000.00 Core Description $ 50,000.00 Core Photography $ 50,000.00 Core Storage $ 100,000.00 Mineral Resource Calculation $ 30,000.00 NI 43-101 Report Creation $ 50,000.00 Inferred and Partial Indicated Mineral Potential

Potash Exploration Costs Mineral Deposit Appraisal Definition Phase 3D Seismic Program $ 2,000,000.00 Design and execute Drilling Program to Increase Confidence $ 5,000,000.00 in deposit (3-5 wells) Geological Services $ 500,000.00 Update NI 43-101 $ 65,000.00 Mining Integrity Review $ 65,000.00 Inferred and Indicated Mineral Potential Concept Study Subtotal $ 7,630,000.00 Estimate measured resource $ 100,000.00 Preliminary mining method $ 100,000.00 Estimate production schedule $ 100,000.00 Estimate CAPEX and OPEX $ 100,000.00 Inferred and Indicated Mineral Potential Subtotal $ 400,000.00 Pre-Feasibility Phase Calculated measured resource $ 100,000.00 Mining Method with geotechnical data $ 100,000.00 List mining equipment $ 100,000.00 Upgrade CAPEX and OPEX $ 100,000.00 Indicated and Measured Mineral Potential Subtotal $ 400,000.00 Note: these are cost estimates only Total Estimated Project Cost $ 20,230,000.00