Emmerson : 72% Increase in Resource Estimate,Potash Project

Million Tonnes

K2O (%)

(potash seam)

Indicated Category

375.2

9.36

Inferred Category

161.8

8.96

Total (Indicated &

536.9

9.24

Inferred)

Million Tonnes (potash

K2O (%)

seam)

Indicated Category

375.2

9.36

Inferred Category

161.8

8.96

Total (Indicated &

536.9

9.24

Inferred)

Potash

CFR Brazil Potash Price

$ 300.00

Assumed low side price of

Price

(Assumed)

Scoping Study

Freight (Brazil)

$(15.00)

Emmerson Scoping Study

Logistics to Port

$ (10.00)

Emmerson Scoping Study

Mine Gate Netback Price

$275.00

Capex

Assumed Capex (incl

$406,000,000

Emmerson Scoping Study

financing costs)

Production Rate (tpa)

800,000

Emmerson Scoping Study

Assumed Mine Life (years)

20

Pay back capital over life of

mine

Life-of-Mine Product Tonnes

16,000,000

Capex per tonne of

$(25.38)

production (LoM)

Opex

U/G (t/ROM)

$(5.50)

Emmerson Scoping Study

A/G (t/ROM)

$(7.20)

Emmerson Scoping Study

Sustaining Capital (t/ROM)

$(4.20)

Emmerson Scoping Study

Other Costs and Admin

$(0.70)

Emmerson Scoping Study

G&A

$(0.40)

Emmerson Scoping Study

Opex to Mine Gate

$(18.00)

(t/ROM)

Processing

Product Purity

95.0%

Minimum requirement for

saleable K60 MOP

Cut-off - Net Recovered Grade

6.85%

(%KCl)

Emmerson Scoping Study

Process Recovery Rate

83.00%

Cut-off Grade (%KCl)

8.25%

K2O:KCl Conversion Factor

0.6317

Cut-off Grade

(%K2O)

5.21%

Hayden Locke

Emmerson Plc

Tel: +44 (0) 207 236 1177

Edward

McDermott

Damon Heath

Shard Capital Partners

Tel: +44 (0) 20 7186 9950

Isabella Pierre

Isabel de Salis

St Brides Partners Ltd

Tel: +44 (0) 20 7236 1177

Megan Dennison

Financial PR/IR

Criteria

Commentary

Sampling

·

Samples were obtained by core sampling with all drilling of the potash unit fully cored.

techniques

· The PKB drillholes obtained core samples by double tube core drilling or trepan drilling. Trepan drilling is a technique used for

large diameter holes where a ring at the periphery of the hole is destructively drilled, leaving a solid core centre for sampling.

The PZ drillholes and Emmerson drillholes cored the potash by diamond drilling, Emmerson by HQ double tube through the

potash.

· Geophysical logging was completed for natural gamma on the PKB drillholes and for density. The geophysical logs for these

drillholes are unavailable and it is not stated if the PZ drillholes were also geophysically logged. Emmerson logged the full

drillhole for natural gamma, and caliper. A smaller sub-section containing the potash unit was then logged in detail with the

acoustic televiewer, and for resistivity and self-potential. The geophysical logging was conducted by International Geophysical

Technology, S.L in 2016 (KMSL1 to KMSL3), and GeoAtlas of Morocco in 2019 (KMSL4 to KMSL12). Resistivity and self-potential

was not completed on KMSL-3. The geophysical tools are calibrated off site apart from the caliper which was calibrated on site

using the PQ drill rods. The consistencies of the geophysical outputs indicate no material bias and are seen to accurately

characterise the individual potash unit and potash seam correlation.

· Specific documentation of sampling and testing objectives and procedures for the PKB and PZ series (completed between 1955

and 1958 and 1962 and 1969 respectively) are unavailable. However, from analysis of the sample intervals and drillhole logs it

can be deduced that the PKB drillholes were sampled to lithological boundaries and/or the natural gamma logs were used to

guide the sample selection. The PZ series indicates that samples were taken above and below the main potash units in order to

accurately define them.

· All potash seams were fully sampled where they were intersected. In the PZ drilling, where the potash seam was partially

intersected or the drillhole did not reach the appropriate depth, a wedge was used to drill a daughter hole in order to gain a full

intersection.

· The KMSL drillholes were sampled to lithological and mineralogical boundaries, with sample lengths varying between 0.01 m

and 3.13 m. The PKB sample lengths vary between 0.1 m and 2.83 m, and PZ between 0.06 m and 3.58 m.

·

KMSL1 was point sampled for semi-quantitative XRD analysis. The sample locations were identified to represent all the

different lithologies in, above and below the potash horizon.

Drilling

·

The PKB series were cased through the Miocene and alluvial sediments and open hole drilled by tricone with drill bits ranging

techniques

from 15.88 cm to 21.59 cm in diameter. Salient intervals in this section were selectively cored by double tube diamond drilling

Drill sample ·

Core recovery is summarised in the PKB logs, by geological unit and drilling method, and is greater than 90% within the potash

recovery

salt unit. There is no information in the PZ logs on core recovery, and it was not recorded for the KMSL holes.

Logging

·

The PKB drillholes have summary lithological logs of the major lithological units, any significant changes within these units and

the boundaries of the potash horizon including description of the main potash minerals where they could be visually identified.

General dip measurements are recorded for the lower salt unit. No drillhole logs are available for PKB-7,PKB-8 and PKB-9.

· The PZ drillholes have summary lithological logs recording the same information as the PKB series. No drillhole logs are

available for PZ45 and PZ116, and there is incomplete information for drillholes PZ24, PZ50 and PZ121.

·

The KMSL drillholes were photographed, and lithologically logged. The logs were depth corrected using the downhole

geophysical information to ensure they were as accurate as possible.

·

Within the total database including the drillholes outside of Emmerson's licences, approximately 98% of the sampled

intersections have been logged. Only PZ116 of the 68 drillholes within the Emmerson licences does not have a lithological log

of the sampled intersection, approximately 0.1% of the Emmerson sampled intersections (188.43 m). PZ116 lies at the

northeastern edge of the deposit. Previous reports and maps by Touhami show that this drillhole was barren, however, a list of

drillhole intercepts provided by ONHYM indicates there is a potash horizon of approximately 1.8 m at over 10% K2O. This

conflicting information needs to be verified by future drilling.

Sub-

·

All drillholes were orientated vertically to perpendicularly intersect the sub-horizontal potash horizon. This ensured that the

sampling

samples represented close to the true thickness of the potash unit and are appropriate for characterising the grade and

techniques

mineralogical variability within the horizon.

and sample

·

No information on further sample preparation is available for the historical samples. In several instances samples were

preparation

combined after initial analysis for %K2O. However, it is not stated if full core or split core was sent for analysis.

· The KMSL core was split in half by a diamond core saw using a saturated CaCl2 brine. The sample intervals were then marked

up on the core for further cutting, then weighed and vacuum packed in a plastic sample bag. The samples were sent for

preparation at ALS in Seville, Spain. The whole sample was dried and crushed to 70% passing -2 mm then a 250 g fraction was

pulverised to 85% passing -75 µm.

·

Emmerson inserted three internal pulp duplicates, five external pulp duplicates, three blank samples and three standard

samples into the sample stream for KMSL1 to KMSL3 to assess the quality control of the analytical laboratory.

· 51 control samples were introduced into the 2019 exploration programme, including 11 duplicates, 11 blanks and 11 standard

samples. 15 check samples were also performed, with nine being re-tested by the original SGS laboratory and six being tested

at a second check laboratory, SRC. Golder reviewed all control sample results from the 2019 exploration programme and

consider the results to demonstrate good reliability and repeatability between the primary SGS and secondary SRC check

laboratory.

· Both ALS and SGS are internationally accredited and well-regarded laboratories.

·

The sample techniques used in the KMSL exploration series are considered appropriate for the type of lithologies and

mineralisation sampled. In addition, the quality control samples provide a duplicate check on 15% of the sample population

with other control samples, over 25% which is considered good. These techniques have ensured samples representative of the

potash mineralisation have been taken in the KMSL and historical drillholes.

Quality of

·

The PKB drillholes obtained 19 samples from six holes which were analysed for %K2O at the M.Pellet BRPM laboratory. The

assay data

analytical technique is not specified in the available historical information.

and

The PZ drillholes analysed 522 samples for %K2O through an unspecified technique. 141 of these samples were also analysed

laboratory

·

tests

for %Na+, %Ca2+, %Mg2+, %Cl-, and %SO42-.

· The Emmerson samples were analysed by XRF (for metals and other major constituents), ICP-OES (soluble elements) and

gravimetric analysis (insoluble residue) at ALS in Loughrea, Ireland. SRC Geoanalytical laboratories in Canada were used as a

control laboratory and analysed five pulp duplicate samples. The analysis methods were soluble and insoluble digestion and

ICP-OES. Both laboratories are internationally accredited.

· 10 Emmerson point samples were analysed by semi-quantitative XRD at the National Museum of Natural History, Madrid,

Spain, (CSIC).

· 51 control samples were introduced into the 2019 exploration programme, including 11 duplicates, 11 blanks and 11 standard

samples. 15 check samples were also performed, with nine being re-tested by the original SGS laboratory and six being tested

at a second check laboratory, SRC.

· The results of the quality control samples from the KMSL data (blanks, standards and duplicates) show good accuracy and

repeatability in the analysis and preparation of the samples with no contamination being introduced in the process.

Verification

·

No historical core from the PKB or PZ series was available for sampling and assaying which meant verification of the majority of

of sampling

the data was difficult.

and

·

Verification of the historical data and database, which constitutes 98% of the data used in the resource estimate, has been

assaying

completed through Emmerson's recent twin drilling of five historical holes, resurveying of historical drillhole collars, and a

check between the scanned BRPM summary logs and the digitised database for 10% of the data (14 drillholes) was performed

by SRK.

· The Emmerson "twin" holes varied in distance from their nearest historical collars but were positioned to check drillholes in five

strategic locations. KMSL1 is 300 m east of PZ88 in the, KMSL2 is 20 m southwest of PZ111 located in the central Khemisset

sub-basin,KMS-3 is 90 m north of PZ3 in the north central Khemisset sub-basin, KMSL10 is 30m from HH4 in the northeast sub-

basin and KMSL11 is 102m from PZ78 in the northeast sub-basin. Overall, the general position and thickness of the potash

horizon in the five locations confirmed the historical information and the presence of potash. The downhole grade profiles can

be easily correlated between the twin drillholes and in all instances and lithological logging is consistent. No assay data was

available for HH4 and therefore in this instance the results could not be directly compared to KMSL11

Location of

·

There is no information in the PKB summary drill logs on how the drillhole collars were surveyed but these documents do

data points

describe the co-ordinates are given in the Merchich North Lambert Maroc system. The PKB drillhole collars have several

sources of information collected from historical documents and through recent surveying. The first set of co-ordinates (BRPM-

MDPA) are shown typed in the front of the scanned drillhole log where it is available. The second set of co-ordinates (ONHYM)

were supplied to Emmerson from historical drilling reports held by ONHYM. The third set of co-ordinates are from handheld GPS

surveys completed by Emmerson in 2016 of collars that could still be located. PKB-1,PKB-2,PKB-6 and PKB-8 were located and

resurveyed by Emmerson, initially by handheld GPS, and then by differential GPS. These drillholes were located between 3 m

and 547 m from their original BRPM-MDPA positions and between 3 m and 85 m from the ONHYM locations. Where drillholes

could not be found, the ONHYM locations were used preferentially over the original BRPM-MDPA positions. Of the four PKB

holes in the Emmerson licences, only PKB-2 and PKB-6 were located and resurveyed.

·

Similarly, there is no information in the PZ summary drill logs on how the drillhole collars were surveyed apart from a

reference, in some cases, that the collar elevations were estimated from the Khemisset topographic map (1:50,000 scale). The

co-ordinates are also given in the Merchich North Lambert Maroc co-ordinate system and the drill collars have various different

co-ordinates from different sources. The sources for the co-ordinates are the three described for the PKB series.

· Historical borehole coordinates and collar elevations have been compiled by Emmerson from several sources, including BRPM

and ONHYM survey reports/borehole logs, and handheld GPS coordinates previously taken. In 2017 and 2018, Emmerson

conducted re-surveying to validate collar coordinates by attempting to identify historical boreholes in the field resulting in

corrections to 67% of original borehole coordinates; 92 of the previous 137 boreholes in the database. The remaining 45

boreholes could not be found and remain unchanged, with coordinates sourced from original BRPM reports. Golder has

subsequently conducted a review of all available coordinate data and re-calculated the displacements between original and re-

surveyed coordinates, which range from 0.10m to 2,175.51m, with 73% showing 30m or less, and 43% with 10m or less. The

largest discrepancies were found within the Central and Southwest sub-basins or outside the Emmerson license areas.

· The KMSL drillhole collars were surveyed by handheld GPS, then differential GPS in the Merchich North Lambert Maroc co-

ordinate system.

·

The KMSL drillholes were also surveyed for downhole deviation. There is no information on the downhole survey of the

historical drillholes, so they have been assumed vertical. The nature of deep drilling is such that holes over a depth of 300 m

are likely to deviate significantly from the vertical. However, relative to the space of the drillholes, between 0.5 km and 4 km,

this will insignificantly affect the location of the sample points.

· No detailed topographic surveys have been undertaken across the Khemisset Basin. Therefore, publically available Advanced

Spacebourne Thermal Emission and Reflection Radiometer (ASTER) data, year 2000, has been use as the source of the

topography for the work completed to date.

· After the coordinate corrections, boreholes showed discrepancies ranging from +13.0m to -37.8m compared to the topography

data, dropping to +7.4m to -5.0m in the Northeast sub-basin. KMSL drillhole coordinates showed discrepancies of within 2m of

the topography data which gives confidence in the reliability of the dataset. For geological modelling, all boreholes were

registered to the topography surface.

Data

·

The combination of PKB and PZ drillholes are distributed across the Khemisset basin, and in particular the Emmerson licences,

spacing and

at an approximate grid spacing of 3 km. A closer grid spacing of 1,500 m covers the main potash body south of Khemisset

distribution

town and the drilling is as close as 500 m within the north deposit under and around Khemisset town.

· Following the infill drilling programme in 2019, spacings in the Northeast sub-basin has reduced to 1.0-1.5km.

· The drill spacing has accurately defined the extents of the potash mineralisation which into four deposit areas, the central

north Khemisset sub-basin, the central Khemisset sub-basin, the Souk Jmaâ (southwest) sub-basin and the Oued Beht

(northeast) sub-basin.

· The drilling has also defined areas of low and high grade within the basin, and several potash layers. These have not been

correlated in the geological modelling due to a lack of available historical geophysical logging which could help map these

distinct layers between drillholes. However, these layers can be observed within the KMSL drillholes with the use of downhole

geophysical logs which are up to 10 km apart, suggesting the mineralisation is very consistent within and between the

separate sub-basins.

· Historical 2D seismic surveys completed across the central Khemisset sub-basin suggest that the drillhole spacing is not close

enough at 3 km to constrain major faults.

· In 2018, Emmerson commissioned Geocon Co. Ltd ("Geocon") to conduct a further 69km of 2D seismic surveying across the

Khemisset deposit. The data comprises 10, 2D Mini-SOSIE lines that have been processed and interpreted by Velseis Processing

(Pty) Ltd ("Velseis"). Seismic data was processed, including depth conversion from two-way time, and used for the

interpretation of key stratigraphic horizon reflectors and structural features. The interpretations made by Velseis were

subsequently reviewed and updated by Emmerson. Whilst the interpretations of reflector horizons have not been used in the

geological model by Golder, they have been used to constrain a basin boundary fault in the south of the northeast sub-basin.

The seismic data also provides additional information to support interpretations of basin formation, geological deposition and

potential fault structures across the wider deposit.

·

The current data spacing across the deposit is considered to support the declaration of Indicated and Inferred Mineral

Resources.

Orientation

·

The drilling was orientated vertically to intersect as close to the true thickness of the sub-horizontal potash unit.

of data in

·

There is one instance of known faulting intersecting KMSL2 which has displaced the top of the potash horizon and decreased

relation to

geological

the thickness. It is not clear if this has occurred in the historical drillholes as it has not been logged. However, local variations

structure

and faulting can have a big influence over the volume of mineralisation cases such as this where it is thin and extensive with

wide spaced drilling. As KMSL2 is a twin, this will not expect to materially affect the thickness or extent of the potash

mineralisation.

Sample

·

No information is available regarding sample handling, transport and security in the historical holes. As the exploration was

security

conducted by the state organisation, Bureau de Recherches et de Participation Minières (BRPM), there is limited potential for

disturbance or tampering of any kind.

· The KMSL samples were stored in plastic drums in a safe container at the Emmerson field offices. There is 24-hour security on

the site. The samples are couriered by DHL to the sample preparation laboratory (ALS) in Seville, Spain. The pulps are then also

couriered to the analytical laboratories by DHL.

Audits or

·

Golder reviewed the sampling and logging as part of the Resource Update. The procedures were set up initially by Enrique