Forward-‐Looking Statements FSE: P9P This presentation contains "forward-‐looking information" and "forward-‐looking statements" within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-‐looking statements or forward-‐looking information. Such forward-‐looking information and statements are frequently identified by words such as "may," "will," "should," "anticipate," "plan," "expect," "believe," "estimate," "intend" and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Pacific Potash in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-‐looking information and statements involve known and unknown risks and uncertainties that may cause Pacific Potash’s actual results, performance and achievements to differ materially from those expressed or implied by the forward-‐looking information and statements and accordingly, undue reliance should not be placed thereon. Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Managements Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Pacific Potash disclaims any obligation to update or revise any forward-‐looking information or statements except as may be required by law. Contents J. Dahrouge, P. Geol., a director of Pacific Potash Corporation, who is a qualified person as required by NI 43-‐101, has read and approved the technical disclosure within this presentation.
Pacific Potash Corporation FSE: P9P Pacific Potash Corporation (“The Company”) is a TSX-‐V (PP) listed junior resource mining company based in Vancouver, British Columbia. The company holds and is actively exploring two Potash properties: • the Provost Potash Property (PPP) encompasses 43,938 acres, within east-‐central, Alberta and is held 100% by the company; and • the 50:50 Property is held jointly with Grizzly Discoveries Inc., and surrounds the Provost Potash Property. It is located about 45 km west of the historic Unity Potash Mine in Saskatchewan, along the Alberta-‐ Saskatchewan border. Key Drivers • Pacific Potash Corporation is the first mover of Potash exploration in Alberta • Historic gamma ray logs from oil and gas wells within the PPP and surrounding area, indicate the presence of Potash within the upper part of the Prairie Evaporite Formation • Current demand for Potash is expected to increase, along with an anticipated production shortfall Recent News • October 2011 o The company received drilling permits for the Provost Potash Property o Drilling commenced on October 24th 2011 for the Provost Potash Property o Permits are pending for the 50:50 Property • September 2011 o Signed a Letter of Intent with Grizzly Discoveries Inc., which provides a framework for the joint exploration of the 50:50 Property • August 2011 o Retained Taylor Land Services who initiated permitting, site selection and negotiations with surface rights owners. o Retained Barlon Engineering to manage the 3rd quarter drill program at Provost
Benefits of Alberta FSE: P9P Potash In Alberta – A Brief History • 1st Recorded Occurrence of Potash in Alberta (1945) o VCO # 15 near Vermillion, Alberta (about 100 km northwest of Provost) o Up to 4 m of carnallite (KMgCl3 2O), 12m of possible sylvite (KCI) o Historic work noted peak grades of 10% K2O • 2 nd o Provost No. 2 – Provost Alberta (about 10 km west of Provost Potash Property -‐ PPP) o Variable occurrences Potash minerals noted over a 110m interval o Historic work noted peak grades of 4.1% K2O • 1 st Potash Exploration -‐ Development (Not Alberta, but close) o Verbata No. 2 -‐ Unity, Saskatchewan (located about 45 east of the PPP) o 3.3 m thick (10’10”) of 2O equivalent o Shaft sunk in 1952, but no reported production, as water and sand from the Blairmore Formation flooded the shaft
The Alberta Advantage Infrastructure • Well developed infrastructure within the area • Roads • Paved highways and roads • Gravel secondary roads • Rail • The CPR passes through Provost, while the CNR is within about 40 km to the north • Both lines provide access to shipment facilities across Canada and the United States • Service Lines • Power Lines • Gas Lines • Location • 250 km southeast of Edmonton, Alberta • 270 km west of Saskatoon • Towns • Provost, Alberta is near the northwest corner of the property • Suitable for immediate accommodation, supplies, services and workforce Tax & Royalties • Alberta was ranked the No. 1 jurisdiction for Mining and Exploration by the Fraser Institute (March 2011) • The Alberta Department of Energy (Mineral Development Division) advised that the royalty on potash would be similar to that of salt: •
The Properties FSE: P9P Provost Potash and 50:50 Property(s) Location Provost, Alberta, near the Saskatchewan Border (250 km southeast of Edmonton), about 45 km west of the historic Unity Potash Mine Geology Potash is within the Patience Lake Member, within the uppermost parts of the Devonian Prairie Evaporite Formation (PEF), at depths of 1,300 to 1,450 m Property(s) The Provost Potash Property encompasses two Metallic and Industrial Mineral (MAIM) permits totalling 17,781 hectares (43,938 acres) The surrounding 50:50 Property consists of 24 MAIM permits totalling more than 500,000 acres. Access Year-‐round, via paved highways, roads and secondary gravel roads. The CNR and CPR cross the property(s). Power Network of power, gas and various service lines. Exploration Season Year round (in snowfall or precipitation)
Regional Geology (Historic Drill Sites) FSE: P9P Provost Property Devonian Prairie Evaporite Formation (PEF) occurs at depths of 1,300 to 1,450 m. Within the region, the Patience Lake Member occurs near the top of the PEF. It consists of interbedded Halite (NaCl); Carnallite (KMgCL3-‐ 2O) and Sylvite (KCl); and clay minerals. Historical Interpretations Several historic oil and gas holes have penetrated the PEF in the region. Downhole gamma ray logs from within the PPP and surrounding area may indicate the presence of significant potash. Hole: PVR Provost 4-‐18-‐38-‐1W4* • Peak value of 375APL (~25% K2O) across 2.25 m and Cautionary Language • Peak value of 225 API (~15% K2O) across * The use of gamma ray logs to identify potash layers, while an important exploration tool, is 1.75 m dependent on many variables (background Hole: Sage et al Provost 11-‐20-‐37-‐1W4* radiation levels, calibration errors, size of individual beds, etc.) and is not an absolute • Strong gamma response, no scale provided measure of grade and thickness. Estimates for Hole: Murphy Cds Lk 7-‐30-‐36 28W4* K2O are based on Schlumberger’s (1974) approximation of 15 API = 1% K2O for potash • Peak value of 255 API (~17% K2O) across bearing units. Until these intervals are 2.25 m confirmed by chemical analysis, they should not be considered as an absolute measure of grade Hole: Provost No.2 across width. • To 4% K2O -‐ Provost No. 2 Mossop & Shetson, 1994; Klarenbach 2009 Notes: Assay data not available – DPEF is not currently known to outcrop at or near the Property.
Provost Potash Property Fall 2011 Exploration FSE: P9P Drill Site 1 Location North-‐East of the Sage et al Provost 11-‐20-‐37-‐1W4 historical drill hole Commencement • Monday October 24th 2011 Estimated Depth • ~1450 m Drill Site 2 Location North-‐East of PVR-‐Provost 4-‐18-‐38-‐1W4 historic drill hole Commencement • Pending the conclusion of Drill Site 3 Depth • ~1450 m Drill Site 3 This site is located about 10 km north of the PPP, within the 50:50 Property, and will be completed jointly with Grizzly Discoveries Inc. Exploration Programs The 2011 Exploration is managed by: Dahrouge Geological Consulting Ltd. , Barlon Engineering , and Taylor Land Services .
Solution Mining FSE: P9P Advantages • Mineral solubility is heightened by increasing temperatures • Depth to the PEV (ie.>1,100 m) is suitable for solution mining • Active Mining Process (Saskatchewan) – Patience Lake Mine – Belle Plain Mine • Reduced development costs, timeline and mining risks o No underground workings, access or personnel needed o Development and production is easily scalable o Faster timeline to production compared to conventional mining o Lower technical risk o Reduced environmental footprint • Ability to mine deep or irregularly shaped deposits • Reduced CAPEX o Shorted Payback Period o Higher IRR
Management Team FSE: P9P Steve Khan -‐ MBA, CFA Director & CEO • Currently serves as President, Director and Chairman of Strathmore Minerals and is a founder and former senior executive officer of Fission Energy as well as Director for several other TSXV listed companies • Former senior executive of a number of Canadian national brokerage houses • Has initiated and managed major joint venture projects with Chinese and Korean and a Global Fortune 500 Japanese private company • Over 27 years of leadership in the global venture capital markets • BSc. and MBA from UBC, Chartered Financial Analyst Balbir Johal -‐ B.A, LL.B Director and Executive Chairman • Lawyer since 1983 serving public companies as a senior officer and director • Served as a senior officer and director for; Centurion Minerals, Abzu Gold, Signature Resources, Mega Copper, Urastar Energy Ltd., etc. • B.A from UBC and Bachelor of Law from the University of Windsor • Over 20 years in the global capital markets – resources and exploration Steve Butrenchuck -‐ P.Geo, M.Sc President • Over 40 years in mining and mineral exploration, development and operations • Currently a director of Passport Potash Inc. (former President and CEO of Passport Potash Inc. and a senior officer and director of several public resources companies; BonTerra Resources, Equinox Exploration, etc. • • Former Consulting Geologist for the Geological Survey of British Columbia • Member of the Assoc. of Prof. Engineers and Geoscientists of Alberta
Management Team FSE: P9P Jody Dahrouge -‐ B.Sc., Sp.C., P.Geol. Director and Sr. VP Exploration • Over 20 years of leadership in international mineral exploration and resource companies • Senior executive officer, director and/or geologist with Commerce Resources, Quantum Rare Earth, Fission Energy, and Equitas Resources • Member of the Assoc. of Prof. Eng, Geologists and Geophysicists of AB and BC • Qualified geological professional in; asset analysis, M&A evaluation, etc. • Jody Dahrouge is Pacific Potash Corporation’s qualified person for the purposes of NI 43-‐101 Bryce Clark -‐ CFA Director and Chief Financial Officer • Over 20 years of executive administration for public and private companies • Current/Former CEO/CFO of New Destiny Mining, Harmony Gold, etc. Don Larmour – B.Eng, P.Eng Advisory Board Member • 30 years experience in potash industry • 28 years with Potash Corp. of Saskatchewan • President and principle of Global Potash Solutions Consulting • Intricate knowledge of conventional and solution mining operations • Expertise in all aspects of potash processing, construction auditing, plant commissioning and environmental compliance
Contact FSE: P9P Pacific Potash Corporation Legal Counsel – 595 Howe Street Anfield Sujir Kennedy and Durno Law Vancouver, British Columbia -‐ Granville Street Vancouver, British Columbia, Canada V7Y 1C3 Phone: Fax: Website: www.pacificpotash.com Transfer Agent Computershare Trust Toronto Stock Exchange -‐ Venture 2nd Floor – 510 Burrard Street TSX-‐V: PP Vancouver, British Columbia, Canada Frankfurt Stock Exchange Phone: P9P Auditor Richard L. Tremblay Manning Elliot Manager of Corporate Development 1050 Howe Street Toll Free (North America): Vancouver, British Columbia, Canada Email: firstname.lastname@example.org F Dan Patience Investor Relations Toll Free (North America): 1.800.499.2388 Email: email@example.com