2. Disclaimer
This presentation contains certain “forward looking statements”, which include but is not limited to, statements with
respect to the future financial or operating performance of Verde Potash Plc (the “Company”), its subsidiaries and
its projects, statements regarding use of proceeds, exploration prospects, identification of mineral reserves, costs
of and capital for exploration projects, exploration expenditures, timing of future exploration and permitting,
requirements for additional capital, government regulations of mining operations, environmental risks, reclamation
expenses, title disputes or claims, and limitations of insurance coverage. Forward looking statements can
generally be identified by the use of words such as “plans”, “expects”, or “does not expect” or “is expected”,
“anticipates” or “does not anticipate”, or “believes”, “intends”, “forecasts”, “budget”, “scheduled”, “estimates” or
variations of such words or phrases or state that certain actions, event, or results “may”, “could”, “would”, “might”,
or “will be taken”, “occur” or “be achieved”. Forward looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance or achievements of the Company
to be materially different from any future results, performance or achievements expressed or implied by said
statements. There can be no assurances that forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated in said statements. Accordingly, readers
should not place undue reliance on forward-looking statements.
Total resources include all categories unless otherwise stated. All currency are in Canadian $ unless otherwise
stated.
TSXv : NPK 2
3. Verde Potash
Brazilian fertilizer company
• Founded and led by strong and successful Brazilian team
• Listed on the Toronto Venture Exchange (NPK : TSX-V)
Cerrado Verde Potash Project
• 105.1Mt @ 10.3% K2O of Potash inferred resource
• ThermoPotash
• Low Capex: US$196.8m
• Strong Economics: US$445.5M
• Conventional Potash - KCl
• New technology under development
• University of Cambridge partnership
Investment Highlights
• High grade potash at surface
• Close proximity to fertilizer distribution and farms
• Strong government support: tax advantages and potential
financing
Potash rock at surface grading 11% K2O
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4. Capital Structure & Share Price
Shares Issued 32,122,769 Share Price
$12.00 0.9
0.8
Options 2,862,136 $10.00
0.7
$8.00 0.6
0.5
$6.00
Warrants 208,686 0.4
$4.00 0.3
0.2
$2.00
Diluted 35,193,591 0.1
$0.00 0
52 week: Hi/Lo C$10.95/C$0.93
Market Cap (at $7.40) C$237 million Analyst Coverage
Salman Partners Jaret Anderson
Average Volume (3 mo.) 126,526
Wellington West Robert Winslow
Cash Position ~C$14 million Ocean Equities Natasha Liddell
Octagon Capital Max Vichniakov
Debt 0 Bottom Fish
Kaiser Bottom Fish (John Kaiser)
John Kaiser
TSXv : NPK 4
5. Brazil’s Agribusiness: Feeding the World
•Brazil has almost 20% of world‟s •The great agricultural frontier is Brazil‟s
undeveloped potential arable land Cerrado, or Savannah away from the
Amazon forest
Undeveloped Potential Arable Land
600
Amazon
500
Available
Brazil
Millions of Hectares
400
Planted
300 Cerrado
200
100
South
0
Brazil US Russia China India
America
Source: Food and Agriculture Organization, UN
•Brazil has world‟s largest renewable fresh
•Climate allows for multiple crops during
water reserve
the year
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6. Brazil’s Fertilizer Supply & Consumption
Evolution of Agribusiness
• Brazil is the world‟s fastest
growing potash consumer
• Brazil‟s poor soils and crop mix
make potash a very important
nutrient
Dependency on Imported Potash
• Potash ranks in the top ten of
Brazilian imports by dollar value
(2008 #6, 2009 #10)
• Brazilian government targets 2020
to be fertilizer-independent
• Brazil is to be ranked #1 globally for
potash imports in 2020 at 7.2
million tonnes of K2O1
Source: FAO,UN
Note
1Source: FERTECON report (FERTECON, 2009, /15/)
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7. Management and Directors
Management Independent Directors
Cristiano Veloso Founder, President, CEO Peter Gundy Chairman
• 12 years experience; Brazilian entrepreneur ex Banco do • Former Chairman of Neo Materials Technologies Inc.; VP of
Brasil S/A, CEMIG; LL.B, LL.M International Business Law Brascan Inc; Executive VP, Finance of Potash Corporation of
Saskatchewan Limited and Chairman of Renaissance
Maurício Sampaio VP Operations Securities Inc. Currently co-proprietor of Veritprop Ltd. In
• 30 years experience; ex President of Brazilian Agribusiness Toronto
Association, Operations and Marketing Director for Bunge
Fertilizantes and Operations Director for Fertiza Dr Getulio Lamartine de Paula Fonseca
• Former General Director National Department of Power &
Pedro Ladeira VP Engineering Water Supply; Executive-Secretary Industry & Commerce
• 17 years experience; ex Operations Director at Cementos Ministry; Served as a member of the advisory boards of
Minetti; Process and Production Manager for Holcim Brazil Vallourec & Mannesmann, CPRM & Ferbasa
Ysao Munemassa Exploration Manager
• 41 years experience; ex BP Minerals, VALE, Union Dr Henrique Brandão Cavalcanti
Carbide, INCO, Teck Cominco, Newmont Gold • Former Brazil‟s Minister of the Environment (1994), Deputy
Minister of Mines Energy (1967-69), Deputy Minister of
Dr Derek Fray Metallurgical Consultant Interior (1969-74). Has held senior posts at SIDERBRAS
• 45 years experience; University of Cambridge Professor & Brazilian Steel Corporation, International Environmental
Director of Research Bureau in Geneva and CAEMI. Has Represented Brazil at
the United Nations and World Health Organization
Jed Richardson VP Corporate Development
• 10 years experience; ex Mining Analyst with Dr Renato Gomes
Sprott/Cormark and RBC Capital Markets, Mining engineer • Director of the ABCI Institute (Brazilian International Trade
with Alcan Aluminium Scholars) Lawyer and member of Brazilian and Portuguese
Bar Associations
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8. Location, Location, Location
~ 60% of Brazil’s
fertilizer
consumption
takes place in
Minas Gerais state
where Verde’s
projects are
located and
adjacent states
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9. Transportation Advantage
From Saskatchewan to Brazil
$43.29 1 $30-35 $80-115
Saskatchewan /tonne Port of Vancouver /tonne Port of Santos /tonne NPK Blenders
Total: $153-193/tonne
Verde Potash
Transportation Cost 2
Cerrado Verde to NPK Mixers
(per tonne)
Minas Gerais $22.27
Mato Grosso $59.72
Goias $29.66
Parana $67.33
Mato Grosso do Sul $57.27
Cerrado Verde Bahia $47.63 NPK Blenders
Sao Paulo $40.85
1Government of Canada, Ministry of Transportation
2 Agroconsult TSXv : NPK 9
10. Potash at Surface
Growing Resource
• Initial NI 43-101 Inferred Resource of 105.1Mt @
10.3% (7.5% cut-off)
• Potassium rich rock (Muscovite and Microcline)
distributed over an area approximately: 100km x
10km x 20m to 80m thick
• 26,000m drilling program underway (see press
release dated May 9, 2011)
Low-Cost Mining
• High Grade
• Open Pit
• Drilling Results include up to 64m @ 10.3% K2O
Potash rock at surface being drilled
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11. Cerrado Verde Project – Business Plan
ThermoPotash Conventional Potash - KCl
• Developed in the 70‟s • New technology under development
• Potash rich rock mixed with limestone • Patent application filed in Dec/10 for the
and heated produces ThermoPotash production of KCl
• Slow-release, non-chloride, multi- • Developed by Dr. Derek Fray, Professor
nutrient fertilizer and Director of Research (University of
• Ideal fertilizer for Brazil‟s nutrient poor, Cambridge, UK)
well drained, acidic soils
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12. ThermoPotash Scoping Study
NI 43-101 Preliminary Economic Production Rate 1.1Mtpy2 2.2Mtpy2
(Brazil market share of (2%) (4%)
Assessment Completed Potash “K2O”)
• PEA completed by SRK Consulting
(U.S.), Inc. studied open pit mining NPV (10%) US$445.5m US$844.1m
and pyrometallurgy process to
create the ThermoPotash fertilizer NPV (12%) US$331.6m US$642.0m
IRR 32.7% 40.0%
Potential Cost Savings Operational Cost US$41.80/t US$36.36/t
• Use of natural gas or eucalyptus
charcoal instead of pet coke as
CapEx US$155.3m US$218.4m
heating fuel source Contingency US$23.3m US$32.8m
• Utilization of Amazon‟s potential Pre-construction US$18.2m US$18.2m
limestone source Total CapEx US$196.8m US$269.4m
• Reduction of ICMS1 value-added
Payback 2.38 years 1.87 years
taxes
• Flow sheet Optimization
NOTE
12
1 Tax on the Circulation of Goods, Interstate and intercity Transportation and Communication Services
2 These figures can be found on page IV of the Preliminary Economic Assessment available on SEDAR published on December 13, 2010
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13. ThermoPotash : Benefits
Benefits to farmers
• Provides potash in a slow release form
• Provides substantial doses of other
macronutrients
• Reduces limestone use for pH correction
• No change to final fertilizer application
quantities or techniques
Benefits to fertilizer blenders
• Overseas imports price is set 2 months
before it arrives at facility, plus possible
port delays
• 60% of fertilizer consumption occurs in 4
month window
• Transport distance creates unusable
powder from granules
• Potential to replace 581,236 tonnes of
imported KCl in the region
Port of Santos
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14. ThermoPotash Agronomic Results
Nutrient Availability Tests Limestone Replacement Tests
(See August 11, 2010 release) (See October 14, 2010 release)
• Tests showed that ThermoPotash • Every tonne of ThermoPotash used
(TK) provided statistically equivalent reduces limestone required by 490
nutrients to plants as KCl kg
Slow and Controlled Release
(See October 15, 2010 release)
• Resin tests confirmed slow
release properties of
ThermoPotash (best suited for
Brazilian soils)
Potassium Leaching Tests
(See December 16, 2010 release)
• TK suffers minimal nutrient loss as a
result of leaching, whereas KCl loses
26% under the same conditions
Carrot‟s planted at Sekita using TK & KCl: statistically inconclusive results
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15. Conventional Potash - KCl
New Technology has potential to revolutionize Potash industry
• Method invented for reacting Verde‟s
potassium rich rock with a simple mixture of
salts to form water-soluble potash
• Invented by Dr. Derek Fray, Professor and
Director of Research at the University of
Cambridge, UK, sponsored by Verde
• Reactions occur at moderate temperatures
of 800-1000°C
• The route allows for the production of SOP
and KCl
• Verde has commissioned a leading
commercial lab to scale up the current Potassium rich rock
processing concept to industrial levels
• If the process proves economic it could
revolutionize the Potash market
Dr Derek Fray, University of Cambridge, UK
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16. Apatita Phosphate Project
• 30km of mineralized phosphate with
widths between 1km and 5km (see
November 8, 2010 release)
• Average grade of 7.13% P2O5 from 435
surface grab samples
• 12 hole, 1,022m drilling program
provided encouraging results at two
prospect regions:
• Alto da Serra zone - high grade potential
of 2m at 9.49% P2O5
• Nau de Guerra zone - high grade
potential of 1m at 8.43% P2O5 and 3m at
6.35% P2O5
• First concentration test result: 29.8%
P2O5 with significant potential for
improvement
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17. Brazilian Government Commitment
Memorandum of Understanding (“MOU”) Signed
with State of Minas Gerais
(see April 7, 2011 release)
• Potential financing for working capital and fixed
investment support; funds administered by the
Development Bank of Minas Gerais (BDMG)
• Secretary of Finance‟s approval of special tax
treatment defined as:
• Suspension of “ICMS” tax payable on:
a) imports of foreign goods;
b) imports of foreign raw materials;
c) purchases of domestic raw materials
• Eeffective tax load of 4% payable on sales of
fertilizer products
• Tax benefit will reduce:
• capital and operational expenditures for the Minas Gerais State Governor, Antonio Augusto, and
Cristiano Veloso, Verde Potash‟s CEO
proposed TK production
• sales tax on TK
17
20. Time for Something Different
Verde‟s
Carnallite Sylvinite
K Rock
Depth 0m 500 - 1000m 1000 - 1500m
Open Pit Mining Solution Mining Conventional Underground
Grade 10-13% K2O 10-14% K2O 20-25% K2O
Time 2 yrs 5-7 years 7-10 years
Cap-Ex $200 million $1-2 billion $2-3 billion
Energy Costs Fluid and Boreholes Conventional Mining
Op Cost Low mining costs Solution Separation Flotation Separation
Product ThermoPotash KCl KCl
TSXv : NPK 20
21. Process and Operating Costs
ThermoPotash Production Process Estimated Operating Cost
1. Mining (1.1mtpy) 1
• Potassium rich rock comes from open pit and •Energy
the limestone comes from suppliers in the $18.45 •petroleum coke, electricity
surrounding area or Verde‟s quarry
•Raw Materials
2. Grinding $2.35 •limestone
• Potassium rock and limestone are ground by
upright rod mill •Labour
$8.91
3. Mixing
• The ground rock and limestone are mixed •Maintenance
and 4% moisture is added $1.80
4. Pelletization and Drying
• Material is rolled into pellets by disc •Equipment Operation
$5.50
pelletizers, and dried by exhaust gas from the
rotary kiln •Marketing
$1.76
5. Rotary Kiln and Quenching
• After drying, pellets go into the rotary kiln to •Non-Operating Expenses
be heated to 1250oC and rapidly cooled $3.04 •administration
6. Packaging of ready ThermoPotash product
US$41.80/tonne
1These figures can be found on pages 17-15 & 17-16 of the Preliminary Economic Assessment
available on SEDAR published on December 13, 2010
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22. Pricing Estimates
Mato Bahia
325,18ty
Marketing Study Grosso
$141.61
895,043t/y
Goias $93.98
• Agroconsult conducted an independent $189.85
$130.13
495,68t/y
$142.64 Minas
market study to understand potential sale $112.98 Gerais
896,051t/y
price and market size of ThermoPotash $182.31
Cerrado Verde $160.04
• Prices derived exclusively on how blenders
can optimize NPK formulas using Mato Grosso
do Sul
ThermoPotash and keep raw material costs 246,621t/y Parana
$179.47 778,17t/y Sao Paulo
equal $122.20 $131.01 722,513t/y
$63.68 $131.77
$90.92
Optimized Formulation vs. Standard Formulation in 4-20-20 Fertilizer4
Highlighted
Standard - w/o TK Optimized Formulation - w/ TK Market
Weight Price N P K Weight Price N P K Annual Market
(kg) (US$) (kg) (US$)
Am. Sulphate 74.2 19.18 1.48% 0.00% 0.00% 5.6 1.45 0.11% 0.00% 0.00%
Potential: 4,359,267
(US$258.52/t) tonnes
SSP 352.8 89.28 0.00% 7.06% 0.00% 0 0.00 0.00% 0.00% 0.00% Potential Sale Price:
(US$253.07/t) US$179.47/t3
MAP 239.7 123.22 2.52% 12.94% 0.00% 370.4 190.41 3.89% 20.00% 0.00% Delivery-adjusted
(US$514.06/t)
KCl 333.3 171.83 0.00% 0.00% 20.00% 288.6 148.79 0.00% 0.00% 17.32% Price: US$122.20/t3
(US$515.55/t)
ThermoPotash 0 0 0.00% 0.00% 0.00% 335.5 61.16 0.00% 0.00% 2.68%
($182.31/t)
Total Weight 1000 403.53 4.00% 20.00% 20.00% 1000 401.81 4.00% 20.00% 20.00%
NOTE
1 Price currently paid by blenders for fertilizers delivered at Uberaba fertilizer complex, Minas Gerais state.
2 Expected sale price for Minas Gerais State
3 Weighted-average of the highlighted market
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4 Agroconsult (see press release dated October 26, 2010)
23. Why It Hasn’t Been Done Before?
1200 120
Potash Shipments (MMt)
1000 Shipments Brazil 100
Potash Price ($/t)
800 China 80
600 60
400 40
200 20
0 0
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2002 2003 2004 2005 2006 2007 2008 2009 2010E
Potash price was too low Existing Production Gov’t Built
• When Verdete was first tested KCl • Large conventional mines are
was only $70/t privatized government assets
• In 2007 KCl price was still $200/t • No new large mines since 1980‟s
reaching $1100/t during 2008 • Now it would cost billions with long
• Now $400/t FOB, $600/t in Brazil lead times to production
TSXv : NPK 23
24. ThermoPotash Partnerships
ArcelorMittal to Fund Agronomic Trials (See Sept. 22, 2009 release)
• Agreement represents a first step in developing corporate demand for ThermoPotash. ArcelorMittal
has 170,000ha of cultivated eucalyptus forests for charcoal production.
Agrifirma to Undertake Agronomic Trials (See Nov. 24 & Dec. 9, 2009 release)
• Agreement secures real world field trials of ThermoPotash for use in corn and soy plantation, also as
part of process for conversion of Cerrado scrubland for commercial cultivation. Agrifirma is a Jersey-
based land fund with 42,000ha of farmland in Brazil
Sekita to Fund Agronomic Trials (See March 22, 2010 release)
• Agreement establishes a relationship with one of the largest Brazilian vegetable producers.
ThermoPotash to be tested in real world conditions for use with various vegetables. Its farms are
located less than 10km from the Cerrado Verde Project
Included in Sugarcane Fertilizer Taskforce (See August 4, 2009 release)
• ROCKAPL („Rock‟ Arranjo Produtivo Local) is a collaborative effort between government and private
enterprise focused on developing fertilizer alternatives for sugarcane destined for ethanol production
University of Uberlandia Undertakes Agronomic Trials (See December 2009 release)
• Agreement with Dr. Gaspar Korndörfer, Professor of Agriculture at the Universidade Fedederal de
Universidade Fedederal de Uberlandia Uberlandia, secures initial agronomic studies used for the planning of Amazon‟s metallurgical test
work and laboratory scale tests on the application of ThermoPotash
University of Lavras Agreement (See August 31, 2009 release)
• Agreement with the University of Lavras to complete a full slate of tests to register the ThermoPotash
product as a fertilizer in Brazil
TSXv : NPK 24
25. Phosphate in Brazil
Avg Production
Resource 1 Reserve 2 Grade P2O5 Capacity4
Company Project Status Type (Mt) (Mt) P2O5 (%) Concentr.3 (ktpy)
Fosfertil/Vale Tapira Operating Carbonatite 1,309.2 7.69 35.5 2,030
Copebras/Anglo Ouvidor Operating Carbonatite 256.7 7.63 38.0 1,300
Vale Araxa Operating Carbonatite 88.7 11.12 35/33 910
Fosfertil/Vale Catalao Operating Carbonatite 223.6 8.96 36/34 1,209
Vale Cajati Operating Carbonatite 85.1 5.45 36.0 528
Fosfertil/Vale Patos Operating Metasediments 304.6 12.36 24.0 150
Fosfertil/Vale Salitre Implementati Carbonatite 852.0 10.74 - 1,600 forecast
on
Vale Anitapolis Implementati Carbonatite 54.0 9.01 - 300 forecast
on
MBAC5 Itafos Operating Metasediments 44.0 5.39 28/30 50
Notes
1 Resource and Grades: Salitre-DNPM 1975/Anitapolis:, DOU 1980 (DOU = Official Diary of Brazil)
2 Reserve and Grades: DNPM 2006 Mineral Annuary
3 Concentration/Production: ANDA Annuary 2008
4 Major Phosphate Rock Producer by Bete,Inc. for Cargill Fertilizer, inc 1998. Values updated to 2010 including exchange variation and inflation
5 BMO – MBAC report figures April 2010 and Website info September 2010 TSXv : NPK 25
