Focus Commences Bayovar 12 PEA and Provides Update - Seite 2

*The reader is cautioned that the potential quantity and grade of this target is conceptual in nature and there has been insufficient exploration to define this quantity of mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. Calculated based on 13 phosphate beds averaging 0.67m in thickness over an area of 1,400 hectares, using a density (dry) of 1.25 g/cm³.

The Company's maiden resource estimate at Bayovar 12 was announced on September 8, 2014:

Category	Million Tonnes Wet *	Million Tonnes Dry *	Grade (% P2O5)
Indicated (61%)	151.78	114.99	12.37
Inferred (39%)	96.83	73.36	12.44

*

In-Situ Resource, no minimum thickness applied. Wet Density: 1.65 g/cm3 Dry Density: 1.25 g/cm3 Dry tonnage resources are included in the wet tonnage resources. The independent estimate and report, based on Focus' initial 20-hole drill program, was prepared by GolderAssociates supervised by Jerry DeWolfe, MSc. P.Geo, and an Independent Qualified Person responsible under NI 43-101.

The resource estimate is based on 20 boreholes (2,027m) drilled over 650 ha of the 12,575 ha property, at drill spacings of 800m. The resources are distributed between 13 individual soft, free digging, horizontal phosphate beds hosted within the Diana Formation, a sequence of diatomites that begin as shallow as 26m below surface. The mineralization is open in all directions. The grades and widths of individual beds are very consistent, unaffected by faulting or structural features, and easily correlated across the deposit. Vale is believed to be mining the same beds at its Bayovar Mine 15km to the west of Bayovar 12.

Background

The Bayovar 12 concession shows potential to host a large sedimentary phosphate deposit. The Bayovar district is situated in the Sechura Desert, a north-trending basin approximately 22,000 square kilometres in area comprising Miocene-aged sedimentary rocks. Phosphate was discovered in the 1950s during drilling for petroleum. It occurs as beds of pelletal phosphate within the Diana Formation, a sequence of phosphate-bearing diatomites and sandstones. The phosphate layers are remarkably regular in P₂O₅ content over long distances, a typical characteristic of marine phosphate deposits. At Vale's Bayovar mine, the soft and friable nature of the phosphate rock and diatomite permits mining by conventional truck and shovel without the use of explosives.