SO4.L Regulatory News (SO4)

AUSTRALIAN INSTITUTIONAL PLACEMENT

Salt Lake Potash Limited (SO4 or Company) is pleased to advise that it has received binding commitments for a successful share placement to existing and new institutional shareholders and investors to raise A$20.0 million.

HIGHLIGHTS

§ SO4 will issue 58.8 million new ordinary shares at A$0.34 each to raise gross proceeds of A$20 million (Placement).

§ The Placement further strengthens SO4's share register with strong demand from existing institutional shareholders.

§ The funds will enable SO4 to continue to deliver the Lake Way Project to schedule, with commissioning expected in December 2020 and first production in Q1 2021.

TONY SWIERICZUK, Chief Executive Officer

"We are very pleased to have completed this capital raising with the support of our existing shareholders and to bring in a number of new institutional investors. These funds will enable us to continue the rapid development of Lake Way as we progress towards project financial close."

Placement

The Company has agreed to place approximately 58.8 million shares to a number of existing and new institutional shareholders and sophisticated investors at A$0.34 each to raise A$20.0 million before costs, further confirming the continued support for SO4 and the Lake Way Project.

The Placement funds will be used primarily on Lake Way Project development, including Process Plant procurement and construction and ongoing operation of Stage 1 & 2 Evaporation Ponds. The funds will enable SO4 to continue to deliver the Lake Way Project to schedule for commissioning in December 2020 and first production in Q1 2021.

SO4 has been working closely with its debt partner Taurus Funds Management (Taurus) to progressively de-risk the project since the release of the Bankable Feasibility Study and the initial Taurus investment. The teams are working collaboratively to finalise the Facility Agreement, following which the Company will draw down on the Project Development Facility.

SO4 Directors and management intend to subscribe for a total of 3.5 million shares in the Placement, including 2,250,000 shares by Chairman, Mr Ian Middlemas and 505,883 shares by Managing Director and CEO, Mr Tony Swiericzuk, subject to shareholder approval.

Euroz Securities Limited and Canaccord Genuity (Australia) Limited acted as Joint Lead Managers to the Placement, and MST Access acted as Co-Manager to the Placement.

The issue price of A$0.34 represents a 10.9% discount to the 10 day VWAP of $0.382 on ASX.

The Placement will be completed in two tranches as follows:

(a) 56,067,647 shares will be issued on 24 April 2020 under ASX Listing Rule 7.1 (26,722,306 shares) and ASX Listing Rule 7.1A (29,345,341 shares). Following the issue of these shares the Company will have 16,011,812 remaining issue capacity under ASX Listing Rule 7.1 and no remaining issue capacity under ASX Listing Rule 7.1A.

(b) 2,755,883 shares to be subscribed for by Directors will be issued during June 2020 following shareholder approval. A notice of general meeting will be sent to shareholders shortly.

Related Party transactions

The proposed participation in the Placement by Mr Tony Swiericzuk, Mr Ian Middlemas and the subscription for 7,352,942 shares in the Placement by Lombard Odier Asset Management (Europe) Limited, a substantial shareholder in the Company, constitute related party transactions under Rule 13 of the AIM Rules for Companies. The independent directors, having consulted the Company's nominated adviser, Grant Thornton UK LLP, consider that the terms of the transactions are fair and reasonable insofar as the Company's shareholders are concerned.

Settlement and dealings

Application will be made to the AIM Market of the London Stock Exchange ("AIM") for 56,067,647 Ordinary Shares, pursuant to the Placement, which rank pari passu with the Company's existing issued Ordinary Shares, to be admitted to trading. Dealings on AIM are expected to commence at 8:00am on or around 24 April 2020 (Admission).

Total Voting Rights

For the purposes of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules (DTRs), following Admission of the first tranche of shares, SO4 will have 350,529,953 Ordinary Shares on issue with voting rights attached. SO4 holds no shares in treasury. This figure of 350,529,953 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the ASX Listing Rules or the DTRs.

The voluntary halt of trading of the Company's shares on ASX was lifted prior to the opening of trade on 17 April 2020, following an announcement to the ASX market regarding the above.

For further information please visit www.so4.com.au or contact:

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Forward Looking Statements

This announcement may include forward-looking statements. These forward-looking statements are based on Salt Lake Potash Limited's expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Salt Lake Potash Limited, which could cause actual results to differ materially from such statements. Salt Lake Potash Limited makes no undertaking to subsequently update or revise the forward-looking statements made in this announcement, to reflect the circumstances or events after the date of that announcement.