SO4.L Regulatory News (SO4)

Salt Lake Potash Limited (the Company or SO4) is pleased to announce that it has successfully completed the domestic tranche of a placement of 16,250,000 ordinary shares of no par value of the Company at an issue price of A$0.32 per share to institutional and sophisticated investors in Australia, to raise gross proceeds of A$5,200,000 (Placement).

Further, at the request the Company, trading on the Australian Securities Exchange for the Company's ordinary shares of no par value has been temporarily suspended from 23 March 2016 pending a further announcement regarding an additional capital raising.

The suspension was granted by the ASX at the Company's request in accordance with the ASX Listing Rules, in order to allow a proposed capital raise to be finalised. The Company anticipates the suspension on the ASX will remain in place until the earlier of such time it makes an announcement to the market in relation to the outcome of the proposed additional capital raise, or the commencement of trading on 24 March 2016. Trading in the Company's ordinary securities will continue on AIM during this period.

The Placement

Baillieu Holst Limited (Baillieu) and Argonaut Securities Pty Ltd (Argonaut) acted as Joint Lead Manager to the Placement, which was oversubscribed. The issue price of A$0.32 represents a 12.0% discount to the 20-day VWAP.

The Company expects to complete the placement on or about 31 March 2016 and expects to issue the Placement shares under Listing Rules 7.1 and 7.1A.

The Company has also received strong interest in equity funding from overseas based strategic and sophisticated agricultural investors and has requested a one day voluntary suspension of the Company's securities to finalise discussions with the interested parties.

Information required under ASX Listing Rule 3.10.5A:

(a) Dilution to existing shareholders as a result of the issue under Listing Rule 7.1A is 0.5%, dilution to existing shareholders as a result of the issue under Listing Rule 7.1 is 12.8% and the total dilution to existing shareholders is 13.3%. Details regarding the participation of existing and new shareholders is not able to be determined yet and will be provided at completion;

(b) The Company will issue 644,611 shares under Listing Rule 7.1A because the Placement was considered to be a more efficient mechanism for raising funds. The Placement did not expose the Company to additional costs, a protracted process and market volatility that may have been experienced with a pro-rata issue or other type of issue in which existing ordinary shareholders would have been eligible to participate;

(c) No underwriting arrangements are in place for the Placement under rule 7.1A; and

(d) A fee of up to 6% may be paid to Ballieu and Argonaut in connection with the Placement under rule 7.1A.

Settlement and dealings

Application will be made to the Australian Securities Exchange ("ASX") and the AIM market of the London Stock Exchange ("AIM") for 16,250,000 new ordinary shares, which rank pari passu with the Company's existing issued ordinary shares, to be admitted to trading on both the ASX and AIM. Dealings on AIM are expected to commence at 8:00 a.m. on or around 5 April 2016 ("Admission").

Following the Admission of the new ordinary shares, the Company's issued share capital will comprise 122,302,596 ordinary shares. The Company does not hold any shares in treasury. This figure of 122,302,596 ordinary shares may be used by the Company's shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

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.

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