Cashflow Report for Q3 2018

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

Martin Davison

James Asensio

Tel: +44 (0) 20 7523 4600

Name of entity

KORE POTASH PLC

ABN

Quarter ended ("current quarter")

621 843 614

30 SEPTEMBER 2018

1.

Cash flows from operating activities

-

-

1.1

Receipts from customers

1.2

Payments for

(857)

(11,458)

(a) exploration and evaluation

(b) development

-

-

(c) production

-

-

(d) staff costs

(613)

(2,045)

(e) administration and corporate costs

(942)

(4,566)

1.3

Dividends received (see note 3)

-

-

1.4

Interest received

32

43

1.5

Interest and other costs of finance paid

-

-

1.6

Income taxes refunded

-

1

1.7

Research and development refunds

-

-

1.8

Other (provide details if material)

-

-

1.9

Net cash from / (used in) operating activities

(2,380)

(18,025)

2.

Cash flows from investing activities

-

(5)

2.1

Payments to acquire:

(a) property, plant and equipment

(b) tenements (see item 10)

-

-

(c) investments

-

-

(d) other non-current assets

-

-

2.2

Proceeds from the disposal of:

-

-

(a) property, plant and equipment

(b) tenements (see item 10)

-

-

(c) investments

-

-

(d) other non-current assets

-

-

2.3

Cash flows from loans to other entities

-

-

2.4

Dividends received (see note 3)

-

-

2.5

Other (provide details if material)

-

-

2.6

Net cash from / (used in) investing activities

-

(5)

3.

Cash flows from financing activities

-

12,895

3.1

Proceeds from issues of shares

3.2

Proceeds from issue of convertible notes

-

250

3.3

Proceeds from exercise of share options

-

-

3.4

Transaction costs related to issues of shares, convertible notes or options

-

-

3.5

Proceeds from borrowings

-

-

3.6

Repayment of borrowings

-

-

3.7

Transaction costs related to loans and borrowings

-

-

3.8

Dividends paid

-

-

3.9

Other (provide details if material)

-

-

3.10

Net cash from / (used in) financing activities

-

13,145

4.

Net increase / (decrease) in cash and cash equivalents for the period

14,219

16,455

4.1

Cash and cash equivalents at beginning of period

4.2

Net cash from / (used in) operating activities (item 1.9 above)

(2,380)

(18,025)

4.3

Net cash from / (used in) investing activities (item 2.6 above)

-

(5)

4.4

Net cash from / (used in) financing activities (item 3.10 above)

-

13,145

4.5

Effect of movement in exchange rates on cash held

(172)

97

4.6

Cash and cash equivalents at end of period

11,667

11,667

5.

Reconciliation of cash and cash equivalentsat the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

Current quarter$US'000

Previous quarter$US'000

5.1

Bank balances

11,667

14,219

5.2

Call deposits

-

-

5.3

Bank overdrafts

-

-

5.4

Other (provide details)

-

-

5.5

Cash and cash equivalents at end of quarter (should equal item 4.6 above)

11,667

14,219

6.

Payments to directors of the entity and their associates

Current quarter$US'000

6.1

Aggregate amount of payments to these parties included in item 1.2

393

6.2

Aggregate amount of cash flow from loans to these parties included in item 2.3

-

6.3

Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

All transactions included in item 6.1 are for payment of directors fees.

7.

Payments to related entities of the entity and their associates

Current quarter$US'000

7.1

Aggregate amount of payments to these parties included in item 1.2

-

7.2

Aggregate amount of cash flow from loans to these parties included in item 2.3

-

7.3

Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

8.

Financing facilities availableAdd notes as necessary for an understanding of the position

Total facility amount at quarter end$US'000

Amount drawn at quarter end$US'000

8.1

Loan facilities

-

-

8.2

Credit standby arrangements

-

-

8.3

Other (please specify)

-

250

8.4

Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

The Company raised US$250,000 from the Chairman, David Hathorn, through a convertible loan note. At the Company's Annual General Meeting on 27 June 2018, the shareholders approved the conversion of the convertible loan to ordinary shares, the Convertible Note was converted into 1,618,250 ordinary shares and 250,000 Equity Warrants on 27 July 2018.

9.

Estimated cash outflows for next quarter

$US'000

9.1

Exploration and evaluation

4,049

9.2

Development

-

9.3

Production

-

9.4

Staff costs

710

9.5

Administration and corporate costs

964

9.6

Other (provide details if material)

-

9.7

Total estimated cash outflows

5,723

10.

Changes in tenements(items 2.1(b) and 2.2(b) above)

Tenement reference and location

Nature of interest

Interest at beginning of quarter

Interest at end of quarter

10.1

Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced

-

-

-

-

10.2

Interests in mining tenements and petroleum tenements acquired or increased

-

-

-

-