Kore Potash Regulatory News (KP2)

Kore Potash

Brad Sampson - CEO

Tel: +27 11 469 9140

Tavistock Communications

Jos Simson

Edward Lee

Tel: +44 (0) 20 7920 3150

Canaccord Genuity - Nomad and Broker

James Asensio

Henry Fitzgerald-O'Connor

Tel: +44 (0) 20 7523 4600

Shore Capital - Joint Broker

Jerry Keen

Toby Gibbs

James Thomas

Tel: +44 (0) 20 7408 4050

Drill-hole

Sample ID

Seam

From (m)

To (m)

KCl inSample (%)

KCl inpreparedSolvent(g/l)

Lithology

Dissolution @90 Deg C(10-4 g/(cm2*s))

ED_01

ED_01_HWSS_01

HWS

422.43

422.58

60.31

170

sylvinite

0.278

ED_01

ED_01_HWSS_01

HWS

422.43

422.58

61.10

180

sylvinite

0.352

ED_01

ED_01_HWSS_02

HWS

422.80

422.93

43.06

190

sylvinite

0.453

ED_01

ED_01_HWSS_02

HWS

422.80

422.93

40.05

200

sylvinite

0.253

ED_01

ED_01_HWSS_03

HWS

423.15

423.25

59.20

170

sylvinite

0.394

ED_01

ED_01_HWSS_03

HWS

423.15

423.25

56.83

180

sylvinite

0.332

ED_01

ED_01_HWSS_04

HWS

423.48

423.59

43.69

190

sylvinite

0.302

ED_01

ED_01_HWSS_04

HWS

423.48

423.59

40.37

200

sylvinite

0.242

ED_01

ED_01_HWSS_05

HWS

424.00

424.15

47.02

170

sylvinite

0.234

ED_01

ED_01_HWSS_06

HWS

426.15

426.25

76.78

180

sylvinite

0.366

ED_03

ED_03_HWSS_06

HWS

403.04

403.16

56.83

190

sylvinite

0.352

ED_03

ED_03_HWSS_06

HWS

403.04

403.16

57.30

200

sylvinite

0.448

ED_03

ED_03_HWSS_05

HWS

402.52

402.63

57.62

170

sylvinite

0.411

ED_03

ED_03_HWSS_05

HWS

402.52

402.63

59.68

180

sylvinite

0.339

ED_03

ED_03_HWSS_02

HWS

400.17

400.27

62.85

190

sylvinite

0.366

ED_03

ED_03_HWSS_02

HWS

400.17

400.27

61.10

200

sylvinite

0.436

ED_03

ED_03_HWSS_04

HWS

401.38

401.51

62.21

170

sylvinite

0.296

ED_03

ED_03_HWSS_04

HWS

401.38

401.51

62.37

180

sylvinite

0.244

ED_01

ED_01_TSS_03

TS

401.46

401.62

81.68

170

sylvinite

0.500

ED_01

ED_01_TSS_03

TS

401.46

401.62

73.29

180

sylvinite

0.368

ED_01

ED_01_TSS_05

TS

404.52

404.68

27.70

190

sylvinite

0.196

ED_01

ED_01_TSS_05

TS

404.52

404.68

32.45

200

sylvinite

0.187

ED_01

ED_01_TSS_06

TS

405.21

405.31

46.86

170

sylvinite

0.333

ED_01

ED_01_TSS_06

TS

405.21

405.31

58.73

180

sylvinite

0.226

ED_01

ED_01_TSS_08

TS

408.53

408.63

72.82

190

sylvinite

0.357

ED_01

ED_01_TSS_08

TS

408.53

408.63

72.66

200

sylvinite

0.395

ED_01

ED_01_TSS_09

TS

408.78

408.88

71.87

170

sylvinite

0.398

ED_01

ED_01_TSS_11

TS

411.26

411.36

52.87

180

sylvinite

0.266

ED_01

ED_01_TSS_11

TS

411.26

411.36

50.81

190

sylvinite

0.280

ED_01

ED_01_TSS_12

TS

411.88

411.98

51.29

200

sylvinite

0.304

DX_01

DX_01_TSS_02

TS

425.17

425.29

45.12

170

sylvinite

0.138

DX_01

DX_01_TSS_02

TS

425.17

425.29

47.6483

180

sylvinite

0.262

DX_01

DX_01_TSS_06

TS

432.14

432.25

57.7795

190

sylvinite

0.215

DX_01

DX_01_TSS_09

TS

436.93

437.04

65.8528

200

sylvinite

0.305

DX_01

DX_01_TSS_10

TS

437.26

437.37

69.8103

170

sylvinite

0.372

DX_01

DX_01_TSS_12

TS

439.63

439.74

70.7601

180

sylvinite

0.234

Abbreviations used:

o DX: Dougou Extension

o MRE: Mineral Resource Estimate

o TS: Top Seam

o HWS: Hanging wall Seam

Section 1 - Sampling Techniques and Data

JORC Criteria

JORC Explanation

Commentary

1.1 SAMPLING TECHNIQUES

• Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

• Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

• Core samples were selected from holes ED_01 (for the Hanging Wall Seam [HWS] and Top Seam [TS]), ED_03 (for HWS), and DX_01 (for TS), and were either half PQ (85 millimeter [mm] diameter) or half HQ (64 mm diameter).

• In AAI's laboratory, the core samples were selected and prepared based on the criteria that (1) the sample length was about 5 centimeters (cm); (2) the sample had smooth surfaces; and (3) the sample contained homogeneous core pieces with no sharp interfaces between insolubles, halite, and other potash minerals. After selection, each half-core was cut roughly into even quarter-cores, which were used for dissolution rate testing. The selected samples were labelled and stored in sealed plastic bags. Before testing, the top and bottom surfaces of the samples were sealed with a moisture-resistant epoxy and the remaining exposed surfaces were sanded to a smooth finish. When dissolution testing was complete, the 36 tested samples, along with the pre-concentrated solvent samples, were sent to SRC for further mineral components assay.

• In all cases, the original whole core was cut along a 'center-line' marked such that both halves are as close to identical as possible, most relevant where layers are gently dipping. In this way the dissolution samples are representative, as were the original samples.

1.2. DRILLING TECHNIQUES

• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

• Holes were drilled in two stages. Rotary Percussion (12 then 8 inch or similar diameter) through the 'cover sequence', stopping in the Anhydrite Member and cased and grouted to this depth. Holes were then advanced using diamond coring with the use of tri-salt (K, Na, Mg) mud to ensure acceptable recovery (over 95%). Coring was HQ (65 mm core diameter) or PQ (85 mm core diameter). All holes were drilled vertically.

1.3. DRILL SAMPLE RECOVERY

• Method of recording and assessing core and chip sample recoveries and results assessed.

• Measures taken to maximise sample recovery and ensure representative nature of the samples.

• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

• Core recovery was recorded for all cored sections of Kore Potash's holes by recording the drilling advance against the length of core recovered. Recovery is between 95 and 100% for the evaporite and all potash intervals. A fulltime mud engineer was recruited to maintain drilling mud chemistry and physical properties. Mud properties are recorded in drilling reports for each hole.

• Core was wrapped in cellophane sheet soon after removal from the core barrel, to avoid dissolution in the atmosphere, and was then transported at the end of each shift to a de-humidified core storage room where it was stored until sampled for the dissolution test work.

• Reflecting the good core recovery there are no concerns relating to bias due to selection recovery/loss.

1.4. LOGGING

• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.

• The total length and percentage of the relevant intersections logged.

• All the core sent to AAI for dissolution testing were individually described by a geologist at the drill site, recording the lithology, mineralogy and grainsize.

• In all cases each sample was sylvinite rich. The sylvinite rock-types are straightforward to distinguish based on colour, gamma-ray data and close observation in the hand.

• Quality photographs of each of the dissolution samples were taken, to provide a reference, important given that no core remains for these intervals.

1.5 SUB-SAMPLING TECHNIQUES AND SAMPLE PREPARATION

• If core, whether cut or sawn and whether quarter, half or all core taken.

• If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

• For all sample types, the nature, quality and appropriateness of the sample preparation technique.

• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

• Whether sample sizes are appropriate to the grain size of the material being sampled.

• The half core samples sent to AAI for dissolution testing comprise the remaining half core from previously sampled and assayed core.

• Samples intervals were choses to provide a suite a samples representative of the sylvinite layers. Effort was made to submit samples with a range of KCl content as estimated visually and with guidance from previous grade data and gamma-ray data.

• In AAI's laboratory, the core samples for dissolution testing were selected and prepared based on the criteria that (1) the sample length was about 5 centimetres (cm); (2) the sample had smooth surfaces; and (3) the sample contained homogeneous core pieces with no sharp interfaces between insolubles and halite and other potash minerals.

• Each half-core was cut roughly into even quarter-cores, which were used for dissolution rate testing.

• The top and bottom surfaces of the samples were sealed with a moisture-resistant epoxy and the remaining exposed surfaces were sanded to a smooth finish.

1.6 QUALITY OF ASSAY DATA AND LABORATORY TESTS

• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

• For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

• Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

• The quarter-core samples were weighed and recorded on a precision electronic scale, with accuracy to 1%, before and after dissolution rate testing.

• Sample surfaces were sketched on the data sheet, and the surface areas were then calculated by digitizing the borders using AutoCAD™.

• A 50-ml sample of the pre-concentrated KCl and NaCl solution was extracted before testing for chemical analysis.

• At the laboratory scale, the calculation of dissolution rate is based on weight loss, immersion time, and the vertical dissolution surface area of the core sample.

1.7. VERIFICATION OF SAMPLING AND ASSAYING

• The verification of significant intersections by either independent or alternative company personnel.

• The use of twinned holes.

• Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

• Discuss any adjustment to assay data.

• The intersections sampled for the dissolution samples were previously reported and verified at that time.

• The descriptions of the dissolution samples were stored in an MS Excel sheet listing the 'from' depth, 'to' depth and the geological observations for each.

1.8. LOCATION OF DATA POINTS

• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

• Specification of the grid system used.

• Quality and adequacy of topographic control.

• The dissolution samples were taken from three drill-holes within the DX deposit; ED_01, ED_03 and DX_01. The positions of these holes were determined by a professional surveyor using a DGPS, and expected to be accurate to within 100 mm in X, Y and Z.

• The drill-hole positions are as follows, given in UTM zone 32 S using WGS 84 datum. They are shown on figure 1 of the announcement.

1.9. DATA SPACING AND DISTRIBUTION

• Data spacing for reporting of Exploration Results.

• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

• Whether sample compositing has been applied.

• Figure 1 of the announcement shows the location of these drill-holes.

1.10. ORIENTATION OF DATA IN RELATION TO GEOLOGICAL STRUCTURE

• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

• If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

• The potash layers are massive and of relatively uniform grade distribution, being controlled by the original horizontally layered sedimentary deposition of the potash mineral carnallite.

• Intersections have a sufficiently low angle of dip, and drill-holes are vertically drilled; the intersected thickness is assumed to be the true thickness.

1.11. SAMPLE SECURITY

• The measures taken to ensure sample security.

• The chain of custody of the dissolution samples was secure. At the rig, the core was under full-time supervision of Company geologists, working around the clock. At the end of each drilling shift, the core was transported by Kore Potash staff to a secure site where it was stored in a locked room.

• Sampling and packing of the samples were carried out under the observation of Company staff; packed samples were transported directly from the site by Company staff to DHL couriers in Pointe Noire 3 hours away. From here DHL airfreight all samples to the laboratory in the U.S.

1.12. AUDITS OR REVIEWS

• The results of any audits or reviews of sampling techniques and data.

• Kore's sampling standard operating procedures for logging and sampling have been audited on several occasions by external parties, for the completion of the MRE for the Kola, Dougou and DX Deposits.

Section 2 - Reporting of Exploration Results

JORC Criteria

JORC Explanation

Commentary

2.1 MINERAL TENEMENT AND LAND TENURE STATUS

• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

• The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.

• The Dougou Extension Deposit is entirely within the Dougou Mining Permit (issued on the 9th May 2017 under decree No. 2017-139) which is held 100% by the local company Dougou Mining SARL which is in turn held 100% by Sintoukola Potash SA RoC, which Kore Potash holds a 97% share.

• There are no impediments on the security of tenure.

2.2 EXPLORATION DONE BY OTHER PARTIES

• Acknowledgment and appraisal of exploration by other parties.

• Potash exploration was carried out in the area in the1960's by Mines de Potasse d' Alsace S.A. Holes K52 and K62 are within the Deposit area. High quality geological logs are available for these holes. Hole K52 intersected Sylvinite HWS and was the initial reason for Kore's interest in the area, beginning with the twin-hole drilling of K52 in 2012 by ED_01.

• Oil exploration well Yangala-1 (outside of the DX deposit) was drilled in 1961 by Societe des Petrole d'Afrique Equatoriale (SPAFE).

• Previous 2D Seismic data was acquired by oil exploration companies British Petroleum Congo and Chevron during the 1980's and by Morel et Prom in 2006.

2.3. GEOLOGY

• The potash seams are hosted by the 400-500 m thick Loeme Evaporite formation, comprised of sedimentary evaporite rocks with minor clastic layers. The evaporites were deposited during the Aptian epoch of the Lower Cretaceous, probably between 125 and 112 million years ago, within a sub-sea level basin following the break-up of Gondwana into the African and South American continents.

• In terms of classification nomenclature, the evaporite is of the basin-wide 'mega-halite' type, formed by the cyclic evaporation of sea-water sourced, seepage-fed brines in an extensive subsiding basin, each cycle generally following the expected brine evolution and resultant mineral precipitation model: dolomite then gypsum then halite then the bitterns of Mg and K as chlorides (as opposed to sulphates). To precipitate the thick potash beds the system experienced prolonged periods within relatively narrow a range of high salinity.

• Reflecting the chloride-Mg-K dominated brine composition, halite (NaCl), carnallite (KMgCl3·6H2O) and bischofite (MgCl2·6H2O) account for over 90% of the evaporite rocks. Sylvinite is only found close to the top of the Salt. Carnallitite is a rock comprised predominantly of carnallite and halite. Sylvinite is a rock comprised predominantly of sylvite (KCl) and halite. The term 'rock-salt' is used to refer to a rock comprising of halite without appreciable other minerals/materials.

• The Salt was deposited in a cyclic manner; 11 cycles have been recognised, of which most are preserved at Dougou Extension, the important 'Top Seam' (TS) and 'Hanging wall Seam' (HWS) potash seams are within the mid to upper part of cycle 9.

• All layers in the Salt member have good continuity and the thickness of the interval between them is consistent. Even narrow mm-scale layers or sub-layers can be correlated many km. In most holes all potash layers are present and have a low angle of dip (

• Where sylvinite, the TS and HWS have an average thickness of 5.2 and 3.6 metres respectively.

• Capping the salt dominated part (Salt Member or 'Salt') is low permeability layer of anhydrite, gypsum and clay (the Anhydrite Member) between 10 and 16 m thick over the deposit. It is at a depth of between 290 and approximately 520 m at DX. Importantly, the contact between the Anhydrite Member and the underlying salt is an unconformity. Reflecting this, and that the layers of the Salt are gently undulating, in some areas there is a greater thickness of Salt above the seams than in others, or the seams may be 'truncated'

• The potash seams were originally deposited as carnallitite but have been replaced in some areas by sylvinite, by a process of non-destructive leaching of Mg, OH and some NaCl from carnallite, converting it to sylvite. This process has taken place preferentially over the Yangala High, initiating at the top of the Salt Member and typically not advancing further than 40 m below this contact, but rarely as much as 80 m (as in drill-hole ED_01). The thickness of the Salt above the seams is the principal control on the whether the seam is sylvinite or carnallitite, and thus the extent of the sylvinite Mineral Resources. The process advanced on a downward moving 'front' and was very efficient; when converted no residual carnallite remains within the sylvinite. Un-replaced carnallitite may occur below the sylvinite (never above it) but the contact is always abrupt and easily identified in core.

2.4. DRILL HOLE INFORMATION

• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

• easting and northing of the drill hole collar

• elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

• dip and azimuth of the hole

• down hole length and interception depth

• hole length.

• If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

• The drill-hole positions are as follows, given in UTM zone 32 S using WGS 84 datum. Holes were drilled vertically, and no significant deviation was reported in drill-hole downhole surveys.

2.5 DATA AGGREGATION METHODS

• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.

• Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

• The assumptions used for any reporting of metal equivalent values should be clearly stated.

• No selective cutting of high- or low-grade material was carried out as is not justified given massive nature of the potash mineralization and absence of localised high/low grade areas.

• No aggregation of grades was carried out for the reporting of the dissolution samples.

• No metal equivalents were calculated.

2.6 RELATIONSHIP BETWEEN MINERALISATION WIDTHS AND INTERCEPT LENGTHS

• These relationships are particularly important in the reporting of Exploration Results.

• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

• The drill-core and acoustic televiewer images provide a reliable measurement of dip (and the latter provides azimuth). Seams have sufficiently low degree of dip, and drill-holes are vertical so correction of thickness for apparent thickness is not warranted.

2.7 DIAGRAMS

• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

• Relevant diagrams are provided in the announcement including a map showing the drill-holes from which the dissolution samples were collected.

2.8 BALANCED REPORTING

• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

• The integration of seismic data into the geological model was incorporated into the PFS as reported in "Dougou Extension (Dx) Project Ore-Feasibility Study on 13 May 2020.

2.9 OTHER SUBSTANTIVE EXPLORATION DATA

• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

No other substantive exploration data was considered.

2.10 FURTHER WORK

• The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

• Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

• The dissolution test work results will be incorporated into the ongoing Phase 1 of the DFS for the DX deposit