Western Potash Delivers Scoping Study for Scalable Pilot Plant at Milestone - Seite 3

Projected Production Capacity		146,000 tonnes per year
Capital Cost		$80.6M CAD
Operating Cost		$80 CAD per tonne (excluding logistics and royalties)
Transportation Cost		$70 CAD per tonne
Sustaining Capital		$12M CAD (in year 5)
Accuracy		+/- 25%
Potash Price		$315 USD per tonne (Standard grade)
CAD/USD exchange rate		1.22
Operating life of mine		12 years
After-Tax/Royalties IRR		25.2%
After-Tax/Royalties NPV		$56.7M CAD

The Pilot Study is based on a mineral resource in the Esterhazy member (the target mining horizon) in the study area, consisting of a Measured Resource of 7.17 million tonnes (Mt) grading 39.5% KCl, an Indicated Resource of 11.56 Mt grading 39% KCl and an Inferred Resource of 1.77 Mt grading 39% KCl. A cutoff grade of 15.8% KCl (10% K2O) was used to define the top and bottom of the target member.

Table 1 below evaluates the key economic sensitivities of the Project. Since the analysis is based on a cash flow estimate, actual financial results may vary from these predictions. The Pilot Study concludes that the Project is economically viable. Successful operation of the pilot plant would support potential future feasibility studies of a larger commercial scale facility.