Kore Potash Regulatory News (KP2)

24 January 2023

Kore Potash Plc

("Kore Potash" or the "Company")

Updated Dougou Extension (DX) PFS and Production Target

Kore Potash plc, the potash development company with 97%-ownership of the Kola and DX Potash Projects in the Sintoukola Basin, located within the Republic of Congo ("RoC"), is pleased to announce an update of the JORC (2012) compliant Mineral Resource, Ore Reserve, Pre-Feasibility Study ("PFS") information and Production Target at the DX Project. The updated Mineral Resource incorporates the most recent drilling results and interpretation of the geophysical data. A summary of the results is presented herein.

Highlights

· Production Target of 15.5MT sylvinite at a grade of 30.63 % KCl demonstrates initial project life of 12 years at a production rate of 400,000 tpa Muriate of Potash ("MOP").

· Production Target based on Proven and Probable Ore Reserves and 13% of the Inferred Mineral Resources that represents 30% of the life of project MOP production.

· NPV10 (real) of US$275 million and 27% IRR on a real post tax basis at life of project average granular MOP price of US$450/t.

· Approximately 2.9 years post-tax payback period from first production.

· Proven and Probable Ore Reserve of 9.31 Mt sylvinite at an average grade of 35.7% KCl.

· Mineral Resource of 129 Mt at an average grade of 24.9% KCl.

· Higher confidence in the distribution of Sylvinite within the Top Seams and improved understanding of the Sylvinite/Carnallite boundary within the Hanging Wall Seam.

· See link to the full announcement with appendices, graphs and tables below:

http://www.rns-pdf.londonstockexchange.com/rns/6083N_1-2023-1-23.pdf

Cautionary Statement

· There is a low level of geological confidence associated with Inferred Mineral Resources. There is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised.

· The Updated Production Target for DX is an interim evaluation of the potential viability of the DX project and is limited to a Pre-Feasibility level technical and economic assessment (AACE Class IV estimate).

· The Production Target is based on Proven and Probable Ore Reserves of 9.31 Mt sylvinite at an average grade of 35.7% KCl, plus production from 13% of the total Inferred Mineral Resources totalling 30% of LOM MOP production. The average KCl grade of the MOP product is 98.5%.

· The Production Target is not reliant on any exploration targets or qualifying foreign estimates.

· The Production Target is based on the material assumptions outlined in this announcement. These include assumptions on availability of funding. While the Company considers all the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the PFS will be achieved.

· To achieve the range of outcomes indicated in the Production Target, base case funding in the order of US$316 million will likely be required. Investors should note that there is no certainty that the Company will be able to raise that amount of funding when needed. It is also possible that such funding may only be available on terms that may be dilutive to or otherwise affect the value of the Company's existing shares.

· It is also possible that the Company could pursue other 'value realisation' strategies such as a sale, partial sale or joint venture of the project. If it does, this could materially reduce the Company's proportionate ownership of the project.

· Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Updated Production Target.

· The Mineral Resources and Ore Reserves underpinning the Production Target and forecast financial information in this combined AIM/JSE/ASX release were prepared by independent expert Dr. Michael Hardy, Competent Persons in accordance with the requirements of the JORC Code 2012 edition (JORC).

Brad Sampson, CEO of Kore, commented: "We are pleased to be able to update shareholders on the value of the DX project. The most recent drilling and geophysical data has further improved confidence in the DX Deposit and the economic attractiveness of the DX Project.

"The updated resource further confirms this Project to be a low operating cost potash operation that can produce approximately 400,000 tonnes per annum of MOP. What makes DX unique is its low capex and shallow deposit containing high grade potassium chloride, qualities which are very rare in the potash industry."

Executive Summary

The DX Project is located in the RoC, approximately 65 km North of Pointe Noire and 13 km from the coast (Figure 1). Kore Potash has completed a full update of the Production Target previously published in "Updated DX Pre-Feasibility Study Production Target" on 11 November 2020 that includes:

· drilling results as published in "DX Project drilling results and progress update" on 27 May 2021;

· additional geophysical interpretation of the area;

· compilation of a new geological model incorporating the drilling and geophysical information;

· new Mineral Resource; and,

· new Ore Reserves.

The Production Target models the DX project producing 400,000 tpa MOP via selective solution mining of high grade sylvinite seams.

The DX Production Target demonstrates a scheduled life of project of 12 years producing 4.82 Mt MoP.

The Production Target is based on the Ore Reserves, and a portion of the Inferred Resources representing less than 30% of Life Of Mines ("LOM") production.

Table 1: Summary of Production Target Economic Evaluation

Consultants Team

The Production Target was prepared by Agapito Associates Inc. The Company's team provided infrastructure information and costs, project management, exploration and site management services and oversaw the financial analysis conducted by Fraser McGill.

Ore Reserves and Mineral Resources

Ore Reserves (Table 2) were determined from Measured and Indicated Mineral Resource. The Sylvinite is hosted by two layers ('seams') referred to as the HWSS and the TSS, separated by 8 to 15 m of rock-salt. Table 3 provides the Mineral Resource. Further detail on the Ore Reserves and Mineral Resource Estimate is provided in Appendix B (JORC Code Table 1, Sections 1-4).

Table 2: DX Sylvinite Ore Reserves

Notes to Table 2: The Ore Reserves in Table 2 are gross numbers and the attributable numbers are presented in Appendix C: Kore Potash Mineral Resources and Ore Reserves as of 20 January 2023.

Table 3: DX Sylvinite Mineral Resource (inclusive of Ore Reserves)

Notes to Table 3: The Sylvinite Mineral Resources in Table 3 are gross numbers and the attributable numbers are presented in Appendix C: Kore Potash Mineral Resources and Ore Reserves as of 20 January 2023.

Reasonable Basis for Forward-Looking Statements (including production target and forecast financial information) and Ore Reserves

This release, inclusive of Appendix A: Summary results of Production Target for DX Project, contains a series of forward-looking statements. The Company has concluded that it has a reasonable basis for providing these forward-looking statements and the forecast financial information included in this release. This includes a reasonable basis to expect that it will be able to fund the development of the DX Project when required.

The detailed reasons for these conclusions are outlined throughout this release. All material assumptions, including the modifying factors, upon which the production target and forecast financial information is based are disclosed in this release (including the summary information in Appendix B). This announcement has been prepared in accordance with the requirements of the JORC and the ASX Rules.

The Ore Reserves and Inferred Mineral Resources underpinning the Production Target have been prepared by a Competent Person in accordance with the requirements of JORC. Details of those Ore Reserves and Mineral Resources are as set out in Appendix A: Summary results of Production Target for DX Project, of this release.

The 400,000 tonnes per annum MOP Production Target over a 12 year LOM is underpinned by scheduling of Proven and Probable Ore Reserves, plus production from Inferred Resources totalling no more than 30% of LOM MOP production. No exploration targets or qualifying foreign estimates underpin the Production Target.

This announcement has been approved by the Board of Kore Potash plc.

ENDS

For further information, please visit www.korepotash.com or contact:

Competent Persons Statement:

The estimated Ore Reserves and Mineral Resources underpinning the Production Target have been prepared by Competent Persons in accordance with the requirements of the JORC Code.

All information in this report that relates to Mineral Resources is based on information compiled by Dr. Douglas F. Hambley, Ph.D., P.E., P.Eng., P.G. of Agapito Associates Inc. Dr. Hambley is a licensed Professional Geologist in the states of Illinois (196-000007) and Indiana (2175), USA, and is an Honorary Registered Member (HRM) of the Society of Mining, Metallurgy and Exploration, Inc. (SME, Member 1299100RM), a Recognized Professional Organization' (RPO) included in a list that is posted on the ASX website from time to time. Dr. Hambley served on the Illinois Board of Licensing for Professional Geologists from its establishment in 1996 until 2000. He is currently a member of the Resource and Reserve and Registered Member Ethics Committees of SME and the Industrial Minerals Subcommittee of the Mineral Resource/Mineral Reserve Committee of the Canadian Institute for Mining, Metallurgy and Petroleum (CIM).

Dr. Hambley has more than 15 years' experience that is relevant to the style of mineralisation and type of Deposit under consideration and to the activity he is undertaking to qualify as a Competent Person, as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Dr. Hambley consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

All information in this report that relates to Ore Reserves is based on information compiled or reviewed by, Dr. Michael Hardy, a Competent Person who is a registered member in good standing (Member #01328850) of Society for Mining, Metallurgy and Exploration (SME) which is an RPO included in a list that is posted on the ASX website from time to time.

Dr. Michael Hardy has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Michael Hardy has verified that this report is based on and fairly and accurately reflects in the form and context in which it appears, the information in the supporting documentation relating to preparation of the Ore Reserves.

Dr. Michael Hardy president of Agapito Associates Inc. is not associated or affiliated with Kore Potash or any of its affiliates. Dr Hambley is not associated or affiliated with Kore Potash or any of its affiliates. Agapito Associates Inc. will receive a fee for the preparation of the Report in accordance with normal professional consulting practices. This fee is not contingent on the conclusions of the Report and Agapito Associates Inc. Neither Michael Hardy or Douglas Hambley will receive other benefit for the preparation of the Report, or have any pecuniary or other interests that could reasonably be regarded as capable of affecting their ability to provide an unbiased opinion in relation to the Dougou Extension Potash Project. Agapito Associates Inc. does not have, at the date of the Report, and has not had within the previous years, any shareholding in or other relationship with Kore Potash or the Dougou Extension Potash Project and consequently considers itself to be independent of Kore Potash.

Forward-Looking Statements

This release contains certain statements that are "forward-looking" with respect to the financial condition, results of operations, projects and business of the Company and certain plans and objectives of the management of the Company. Forward-looking statements include those containing words such as: "anticipate", "believe", "expect," "forecast", "potential", "intends," "estimate," "will", "plan", "could", "may", "project", "target", "likely" and similar expressions identify forward-looking statements. By their very nature forward-looking statements are subject to known and unknown risks and uncertainties and other factors which are subject to change without notice and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct, which may cause the Company's actual results, performance or achievements, to differ materially from those expressed or implied in any of our forward-looking statements, which are not guarantees of future performance.

Neither the Company, nor any other person, gives any representation, warranty, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statement will occur. Except as required by law, and only to the extent so required, none of the Company, its subsidiaries or its or their directors, officers, employees, advisors or agents or any other person shall in any way be liable to any person or body for any loss, claim, demand, damages, costs or expenses of whatever nature arising in any way out of, or in connection with, the information contained in this document.

In particular, statements in this release regarding the Company's business or proposed business, which are not historical facts, are "forward-looking" statements that involve risks and uncertainties, such as Mineral Resource estimates market prices of potash, capital and operating costs, changes in project parameters as plans continue to be evaluated, continued availability of capital and financing and general economic, market or business conditions, and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Shareholders are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. The forward-looking statements are based on information available to the Company as at the date of this release. Except as required by law or regulation (including the ASX Listing Rules), the Company is under no obligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise.

Summary information

This announcement has been prepared by Kore Potash plc. This document contains general background information about Kore Potash plc current at the date of this announcement and does not constitute or form part of any offer or invitation to purchase, otherwise acquire, issue, subscribe for, sell or otherwise dispose of any securities, nor any solicitation of any offer to purchase, otherwise acquire, issue, subscribe for, sell, or otherwise dispose of any securities. The announcement is in summary form and does not purport to be all-inclusive or complete. It should be read in conjunction with the Company's other periodic and continuous disclosure announcements which are available to view on the Company's website www.korepotash.com.

The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published or distributed should inform themselves about and observe such restrictions.

Not financial advice

This document is for information purposes only and is not financial product or investment advice, nor a recommendation to acquire securities in Kore Potash plc. It has been prepared without considering the objectives, financial situation or needs of individuals. Before making any investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction.

Market Abuse Regulation

This announcement is released by the Company and contains inside information for the purposes of the Market Abuse Regulation (EU) 596/2014 ("MAR") and is disclosed in accordance with the Company's obligations under Article 17 of MAR. The person who arranged for the release of this announcement on behalf of the Company was Brad Sampson, CEO. This announcement has been authorised for release by the Board of Directors.