June 2011 Quarterly Report

Highlights:
Completed the acquisition of Potassio do Atlantico Ltda (PALTDA) which holds the highly prospective and potentially large-scale Atlantic Potash Project in NE Brazil.

  • The Project is located approximately 30 kilometres to the south of Brazil’s only operating potash mine, Vale’s Taquari-Vassouras underground mine.
  • The Project covers a large land position of approximately 178,000 hectares (1,780km²) in the attractive carnallite and sylvinite potash bearing Sergipe-Alagoas basin.
  • Environmental Drilling Licences approved for initial four exploration drill wells.
  • Drilling contractor and drilling support services to be finalised and announced shortly with drilling anticipated to commence in the 3rd quarter 2011.
  • Projects are located in one of largest global potash markets close to existing infrastructure including roads, water, power, gas and end-users.
  • Brazil currently imports around 90 per cent of its potash needs.