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Salt Lake Potash #SO4 – Final Results 2018

28th September 2018 / Leave a comment

AIM and ASX listed company Salt Lake Potash Limited (“SO4” or the “Company”), announces its results for the year ended 30 June 2018.

The Company’s Report and Accounts can be viewed at www.saltlakepotash.com.au.

The Company also advises that an Appendix 4G (Key to Disclosures: Corporate Governance Council Principles and Recommendations) and the 2018 Corporate Governance Statement have been released today and are available on the Company’s website: www.saltlakepotash.com.au/corporate-governance/.

For further information please visit www.saltlakepotash.com.au or contact:

Clint McGhie	Salt Lake Potash Limited	Tel: +61 8 9322 6322
Colin Aaronson/Richard Tonthat/Ben Roberts	Grant Thornton UK LLP (Nominated Adviser)	Tel: +44 (0) 20 7383 5100
Derrick Lee/Beth McKiernan	Cenkos Securities plc (Joint Broker)	Tel: +44 (0) 131 220 6939
Jerry Keen/Toby Gibbs	Shore Capital (Joint broker)	Tel: +44 (0) 20 7468 7967

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

OPERATING AND FINANCIAL REVIEW

Operations

The Company’s aim is to develop the first salt-lake brine Sulphate of Potash (SOP) operation in Australia, starting with a Demonstration Plant producing up to 50,000tpa of SOP, at the Goldfields Salt Lakes Project (GSLP) located in the Northern Goldfields of Western Australia. The Company’s multi-lake portfolio, and the comprehensive technical achievements to date, highlight the potential for a very economic, large scale and long term project.

Highlights

The Company has undertaken a significant level of work during the year across a range of disciplines and has achieved a number of very important milestones, substantially progressing the Company’s aim is to develop the first salt-lake SOP operation in Australia. Highlights during, and subsequent to the end of, the financial year include:

LAKE WAY

MOU with Blackham Resources to access Lake Way

· The Company entered into a Memorandum of Understanding (MOU) with Blackham Resources Limited (Blackham) to investigate the potential development of a SOP operation based at Lake Way, near Wiluna.

Pursuant to the MOU with Blackham, the Company would construct an initial pond system to dewater Blackham’s Williamson Pit, which contains approximately 1.2GL of super-saturated brine, with a very high average SOP content of 25kg/m³. These Williamson Ponds would comprise approximately 1/3 of the total Demonstration Plant pond area, and dewatering of the Williamson Pit offers a shorter development time due to its very high grade and salt saturation.

Scoping Study for Low Capex, High Margin Demonstration Plant

· The Company completed a Scoping Study on the development of a 50,000tpa SOP Demonstration Plant at Lake Way that supports a low capex, highly profitable, staged development model, with total capital costs of approximately A$49m and average cash operating costs (FOB) of approximately A$387/t.

The Demonstration Plant is intended to validate the technical and commercial viability of brine SOP production from the GSLP, providing the basis to build a world class, low cost, long life SOP operation across the 9 lakes in the GSLP.

LAKE WELLS

Process Testwork

· The Company completed pilot scale crystalliser validation testwork at a leading crystalliser vendor in the United States, processing approximately 400 kg of crystalliser feed salt (schoenite concentrate), produced from previous Lake Wells development work at Saskatchewan Research Council (SRC). The testwork successfully produced high quality SOP crystals, representative of a full scale plant product.

· The Site Evaporation Trial (SET) at Lake Wells was decommissioned after completing over 18 months of operation under site conditions and through all seasons. The SET processed approximately 412 tonnes of brine and produced over 10 tonnes of harvest salts.

MOU with Australian Potash to study sharing infrastructure and other costs at Lake Wells

· Subsequent to year end, the Company and Australian Potash Limited (ASX: APC) entered into a Memorandum of Understanding and Co-operation Agreement to undertake a joint study of the potential benefits of development cost sharing for each Company’s projects at Lake Wells.

· The Company’s first Mining Lease at Lake Wells was granted subsequent to year end, a significant milestone in the Projects development pathway.

LAKE BALLARD

· An initial surface aquifer exploration program was completed at Lake Ballard, comprising a total of 160 shallow test pits and 10 test trenches. This work provides preliminary data for the geological and hydrological models for the surface aquifer of the Lake, as well as brine, geological and geotechnical samples.

· Subsequent to year end exploration drilling and excavation continued with a view to reporting an initial JORC mineral resource estimate for the shall aquifer.

LAKE IRWIN

· A surface aquifer exploration program was completed at Lake Irwin, comprising 56 shallow test pits and 5 test trenches. This work provides preliminary data for the geological and hydrological models of the surface aquifer of the Lake, as well as brine, geological and geotechnical samples.

REGIONAL LAKES

· The Company undertook initial surface brine sampling of the near surface aquifer and reconnaissance of access and infrastructure at all remaining Lakes held under the GSLP.

GOLDFIELDS SALT LAKE PROJECT

First MOU for an Offtake Agreement with Mitsubishi

· The Company executed its first MOU for an Offtake Agreement with Mitsubishi, for the sales and offtake rights for up to 50% of the SOP production, from a Demonstration Plant at the GSLP, for distribution into Asia and Oceania and potentially other markets.

World Class Scale Revealed with Initial Exploration Target Estimation

· The Company released an initial estimate of Exploration Targets for eight of the nine lakes comprising the Company’s GSLP. The ninth lake, Lake Wells, already having a Mineral Resource reported in accordance with the JORC code.

The total “stored” Exploration Target for the GSLP is 290Mt – 458Mt of contained Sulphate of Potash (SOP) with an average SOP grade of 4.4 – 7.1kg/m³ (including Lake Wells’ Mineral Resource of 80-85Mt). On a “drainable” basis the total Exploration Target ranges from 26Mt – 153Mt of SOP. The total playa area of the lakes is approximately 3,312km².

The potential quantity and grade of this Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Background

The Company is the owner of the Goldfields Salt Lakes Project (GSLP), which comprises nine large salt lakes in the Northern Goldfields Region of Western Australia.

The GSLP has a number of important, favourable characteristics:

· Very large paleochannel hosted brine aquifers, with chemistry amenable to evaporation of salts for SOP production, extractable from both low-cost trenches and deeper bores;

· Over 3,300km² of playa surface, with in-situ clays suitable for low cost on-lake pond construction;

· The total “stored” Exploration Target for the GSLP is 290Mt – 458Mt of contained Sulphate of Potash (SOP) with an average SOP grade of 4.4 – 7.1kg/m³ (including Lake Wells’ Mineral Resource of 80-85Mt). On a “drainable” basis the total Exploration Target ranges from 26Mt – 153Mt of SOP. [The potential quantity and grade of this Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource].

· Excellent evaporation conditions;

· Excellent access to transport, energy and other infrastructure in the Goldfields mining district;

· Lowest quartile capex and opex potential based on the Lake Wells Scoping Study;

· Clear opportunity to reduce transport costs by developing lakes closer to infrastructure and by capturing economies of scale;

· Multi-lake production offers operational flexibility, cost advantages and risk mitigation from localised weather events;

· The very high level of technical validation already undertaken at Lake Wells substantially applies to the other lakes in the GSLP; and

· Potential co-product revenues, particularly where transport costs are lowest.

The Company’s long term plan is to develop an integrated SOP operation of global scale, producing high quality organic SOP from a number (or all) of the lakes within the GSLP, after confirming the technical and commercial elements of the Project through construction and operation of a Demonstration Plant producing up to 50,000tpa of SOP.

Demonstration Plant

The Company believes the advantages of the Demonstration Plant approach are:

· While substantial salt-lake brine production of SOP is undertaken in China, Chile and the USA, it is new in Australia and overseas production models need to be tested and adapted for Australian conditions.

· Proof of concept for SOP production from salt-lake brines in Australia will substantially de-risk the full-scale project, with commensurate improvement in financing costs and alternatives. While the Demonstration Plant does not benefit from economies of scale, it will provide financiers and partners a very reliable cost basis for larger scale, longer term operations, while still being low capex and high margin in its own right.

· Refinement of design and costing of engineering elements at Demonstration Plant scale should result in considerable time and cost savings at larger scale.

· Market acceptance of a new product in conservative agricultural markets is best achieved progressively and in conjunction with existing, established partner(s). It is important to establish Salt Lake’s product(s) as premium, sustainable nutrients in the key long-term markets, and staged production increments are the best way to achieve this objective.

· A Demonstration Plant offers an accelerated pathway to initial production, with limited infrastructure requirements and a faster, simpler approval process. The Demonstration Plant is intended to operate for 12-24 months to establish parameters for larger scale production, and then be integrated into a larger operation. The Company’s objective is to commence construction in 2018, harvesting first salts in 2019, and producing first SOP in 2020.

Lake Way

Salt Lake holds two Exploration Licences (one granted and one under application) covering most of Lake Way, including the paleochannel defined by previous exploration. The Northern end of the Lake is largely covered by a number of Mining Leases, held by Blackham Resources Limited (Blackham), the owner of the Wiluna Gold Mine.

The Company entered into a Memorandum of Understanding with Blackham in March 2018 to investigate the development of an SOP operation on Blackham’s existing Mining Leases at Lake Way, including initially a 50,000tpa Demonstration Plant.

Lake Way is located less than 15km south of Wiluna. The Wiluna region is an historic mining precinct dating back to the late 19th century. It has been a prolific nickel and gold mining region with well developed, high quality infrastructure in place.

The Goldfields Highway is a high quality sealed road permitted to carry quad road trains and passes 2km from the Lake. The Goldfields Gas Pipeline is adjacent to SLP’s tenements, running past the eastern side of the Lake.

Scoping Study

In July 2018, the Company completed a Scoping Study on development of a 50,000tpa sulphate of potash (SOP) Demonstration Plant at Lake Way that supports a low capex, highly profitable, staged development model.

The Demonstration Plant is supported by an Indicated and Measured Mineral Resource (drainable) within the Blackham mining lease area totalling 500,000t (Stored Resource – 2Mt), a multiple of the resource required to support a 50,000tpa Demonstration Plant for 2-3 years.

Table 1: Key Scoping Study Outcomes

Capital Costs (-10% & +30%)
Total Capital Costs Including: – Temporary facilities – EPCM – Growth allowance (contingency)	A$49m A$0.4m A$4.8m A$6.3m
Average Total Cash Cost (FOB) (+/- 30%)
Average Total Cash Cost (FOB) Comprising: – Mine Gate Opex – Transport and handling – Royalties	A$387/t A$251/t A$96/t A$40/t
Forecast SOP Price:	A$667/t (US$500/t)
Study Manager:	Wood (formerly Amec Foster Wheeler)
Average Annual Production:	50,000 tonnes of SOP

Development Process

The Company has previously established that larger production volumes (400,000tpa) can result in operating costs in the lowest cost quartile for SOP production globally*. This is principally a result of the economies of scale inherent in the GSLP’s advantageous location in the Northern Goldfields mining district, mostly in the main cost centres of transport, labour and power.

Pursuant to the MOU with Blackham, the Company will construct an initial pond system to dewater the Williamson Pit, which contains approximately 1.2GL of super-saturated brine, with a very high average SOP content of 25kg/m³. These Williamson Ponds will comprise approximately 1/3 of the total Demonstration Plant pond area, and dewatering of the Williamson Pit offers a shorter development time due to its very high grade and saturation.

Process Testwork

The Company undertook a range of process development testwork to enhance the process model for both Lake Way and Lake Wells.

A large scale, continuous Site Evaporation Trial (SET) at Lake Wells was successfully completed over 18 months of operation under site conditions and through all seasons. The results of the SET are an Australian first and have provided significant knowledge to the Company on the salt crystallisation pathway under site conditions in Australia.

The SET processed approximately 412 tonnes of Lake Wells brine and produced 10.3 tonnes of harvest salts. Site-produced harvest salts have been used in a range of subsequent process development testwork programs.

The Company has used the harvest salts produced by the SET to perform comprehensive process development testwork at Saskatchewan Research Council (SRC). Most recently, SRC completed locked cycle testwork that validated the SysCAD process flowsheet and demonstrated that the process converges quickly to operate at steady state.

In addition to locked cycle testing, 1,000kg of harvest salts from Lake Wells SET were processed by SRC to produce approximately 350kg of the flotation concentrate (crystalliser feed salt) which was then provided to a globally recognized crystalliser vendor for crystalliser testwork and equipment design. The tests generated samples with large chrystal size, similar to full scale production, and allowed the vendor to refine the design and pricing of a key process equipment item.

Building on the knowledge gained from the Lake Wells project, a staged engineering approach was used in the process development for Lake Way, whereby initial evaporation modelling was undertaken followed by laboratory tests and then field trials. The initial brine evaporation modelling, conducted by international solar pond experts, Ad Infinitum, indicated that the predicted harvest salts produced at Lake Way are comparable to those produced at Lake Wells (containing a mix of Halite, Kainite and Schoenite) and therefore suitable for conversion into SOP.

Laboratory evaporation tests were conducted by international laboratory and testing company, Bureau Veritas (BV), to validate the evaporation model. BV completed a series of laboratory-scale brine evaporation trials at their Perth facility, under simulated average Lake Way climate conditions. This testwork confirmed the modelled brine evaporation pathways. Furthermore it demonstrated that the Williamson pit brine follows a similar evaporation pathway to Lake Way lake brine with similar brine chemistry and salts produced. This indicates that the Williamson Pit brine is a pre-concentrated version of the Lake Way brine, which provides the advantage of a large volume of brine that is essentially accelerated in the evaporation pathway.

A range of process development testwork to provide and validate inputs to the Lake Way Scoping Study production model was also undertaken, including field evaporation tests and metallurgical processing testwork on harvest salts. The testwork incorporates brines from the Lake itself, as well as the super-concentrated brines from the Williamson Pit.

The results of testwork undertaken to date support the Company’s aim to produce an organic premium SOP product from the GSLP. Salt Lake continues to progress testwork to refine products in line with offtake partner expectations.

MOU for Offtake with Mitsubishi

The Company executed a MOU for an Offtake Agreement with Mitsubishi for the sales and offtake rights for up to 50% of the SOP production from a Demonstration Plant at the GSLP, for distribution into Asia and Oceania and potentially other markets.

Salt Lake Potash is progressing its GSLP development strategy, initially involving construction of a Demonstration Plant producing up to 50,000tpa of high quality SOP, with its plans to distribute production through a small number of global distribution partnerships.

The Mitsubishi MOU is non-binding and sets out the key terms for a subsequent formal Offtake Agreement as the Demonstration Plant is developed. As well as quantities and target markets, the MOU’s other terms include:

· Market pricing and commission mechanisms;

· Specifications and delivery parameters;

· Mitsubishi to provide strategic advice on marketing within the region; and

· The parties to continue discussions regarding funding requirements for the GSLP.

Mitsubishi Australia Limited is a wholly owned subsidiary of Mitsubishi Corporation. Mitsubishi is one of the world’s largest trading and investment enterprises that develops and operates businesses across virtually every industry, including industrial finance, energy, metals, machinery, chemicals, and daily living essentials. Its current activities expand far beyond its traditional trading operations to include investments and business management in diverse fields including natural resources development, manufacturing of industrial goods, retail, new energy, infrastructure, finance and new technology-related businesses.

MOU with Australian Potash

In September 2018, Salt Lake entered into a Memorandum of Understanding and Co-operation Agreement with Australian Potash Limited (ASX: APC) to undertake a joint study of the potential benefits of development cost sharing for each Company’s project developments at Lake Wells.

The Companies’ substantial project holdings at Lake Wells are contiguous with many common infrastructure elements, including access roads, proximity to the Leonora rail terminals, and potential power and fresh water solutions. Both Companies anticipate substantial potential Capex and Opex benefits from some level of infrastructure sharing, with further potential benefits arising from shared or common evaporation and salt processing facilities.

The Companies have agreed to constitute a joint study team to carry out an initial assessment of the merits of infrastructure cooperation. The team will also conduct a high-level review of potential benefits of upstream operational synergies. A substantial part of the Study work will be outsourced to independent engineers and both Companies intend to continue with their independent project developments in parallel with the Study.

The Company’s first Mining Lease at Lake Wells was granted in September 2018, a significant milestone in the Projects development pathway.

Results of Operations

The net loss of the Consolidated Entity for the year ended 30 June 2018 was $11,327,108 (2017: net loss of $9,200,509). This loss is mainly attributable to:

(i) Exploration and evaluation expenses of $8,545,647 (2017: $7,717,231) which are attributable to the Group’s accounting policy of expensing exploration and evaluation expenditure incurred by the Group subsequent to the acquisition of the rights to explore and up to the successful completion of definitive feasibility studies for each separate area of interest;

(ii) Non-cash share-based payment expenses of $1,284,062 (2017: $580,976) which are attributable to the Group’s accounting policy of expensing the value (estimated using an option pricing model) of Incentive Securities issued to key employees and consultants. The value is measured at grant date and recognised over the period during which the option holders become unconditionally entitled to the options and/or rights; and

(iii) Business development expenses of $1,110,578 (2017: $559,247) which are attributable to additional business development and investor relations activities required to support the growth and development of the Goldfields Salt Lakes Project, including travel costs associated with representing the Company at international conferences and investor meetings.

Financial Position

As at the date of this report, the Company had working capital in excess of $4 million which includes cash and cash equivalents.

At 30 June 2018, the Company had cash reserves of $5,709,446 (2017: $15,596,759).

At 30 June 2018, the Company had net assets of $7,019,989 (2017: $17,046,443), a decrease of 59% compared with the previous year. This decrease is a result of the exploration and evaluation activity during the year, which has been expensed as discussed in the results of operations section above.

Business Strategies and Prospects for Future Financial Years

The objective of the Group is to create long-term shareholder value through the discovery, exploration and development of its projects.

To date, the Group has not commenced production of any minerals. To achieve its objective, the Group currently has the following business strategies and prospects:

(i) Complete a PFS for the Lake Way Demonstration Plant;

(ii) Commence construction of the Williamson Ponds at Lake Way and dewatering of Blackham’s Williamson Pit;

(iii) Commence construction of the on-lake infrastructure and Plant for the Lake Way Demonstration Plant;

(iv) Complete a PFS on the Lake Wells Project;

(v) Develop an organic premium SOP product in conjunction with offtake partners and potential customers; and

(vi) Continue additional exploration activities including drilling, test pumping and other testwork across the Company’s multi lake portfolio.

All of these activities are inherently risky and the Board is unable to provide certainty of the expected results of these activities, or that any or all of these likely activities will be achieved. The material business risks faced by the Group that could have an effect on the Group’s future prospects, and how the Group manages these risks, include:

The Company’s exploration properties may never be brought into production – The exploration for, and development of, mineral deposits involves a high degree of risk. Few properties which are explored are ultimately developed into producing mines. To mitigate this risk, the Company will undertake systematic and staged exploration and testing programs on its mineral properties and, subject to the results of these exploration programs, the Company will then progressively undertake a number of technical and economic studies with respect to its projects prior to making a decision to mine. However there can be no guarantee that the studies will confirm the technical and economic viability of the Company’s mineral properties or that the properties will be successfully brought into production;

The Company’s activities will require further capital – The exploration and any development of the Company’s exploration properties will require substantial additional financing. Failure to obtain sufficient financing may result in delaying or indefinite postponement of exploration and any development of the Company’s properties or even a loss of property interest. There can be no assurance that additional capital or other types of financing will be available if needed or that, if available, the terms of such financing will be favourable to the Company;

The Company’s licences may be subject to Native title and Aboriginal Heritage – There may be areas over which legitimate common law and/or statutory Native Title rights of Aboriginal Australians exist. If Native Title rights do exist, the ability of the Company to gain access to the Projects (through obtaining consent of any relevant landowner), or to progress from the exploration phase to the development and mining phases of operations may be adversely affected;

The Company has contractual rights in respect of the Mining Leases on which it plans to build a Demonstration Plant at Lake Way – The Company entered into a Memorandum of Understanding with Blackham in March 2018 that outlines the respective rights and obligations of both parties. The Demonstration Plant will initially be based on Mining Leases held by Blackham and the ability of the Company to proceed with its plans at Lake Way will be dependent on ongoing co-operation with Blackham. The parties intend to formalise arrangements in a Split Commodity Agreement;

The Company’s activities are subject to Government regulations and approvals – Any material adverse changes in government policies or legislation in Western Australia and Australia that affect mining, processing, development and mineral exploration activities, income tax laws, royalty regulations, government subsidies and environmental issues may affect the viability and profitability of any planned development the GSLP. No assurance can be given that new rules and regulations will not be enacted or that existing rules and regulations will not be applied in a manner which could adversely impact the Group’s mineral properties;

The Company may be adversely affected by fluctuations in commodity prices – The price of potash and other commodities fluctuates widely and is affected by numerous factors beyond the control of the Company. Future production, if any, from the Company’s mineral properties will be dependent upon the price of potash and other commodities being adequate to make these properties economic. The Company currently does not engage in any hedging or derivative transactions to manage commodity price risk. As the Company’s operations change, this policy will be reviewed periodically going forward; and

Global financial conditions may adversely affect the Company’s growth and profitability – Many industries, including the mineral resource industry, are impacted by these market conditions. Some of the key impacts of the current financial market turmoil include contraction in credit markets resulting in a widening of credit risk, devaluations and high volatility in global equity, commodity, foreign exchange and precious metal markets, and a lack of market liquidity. Due to the current nature of the Company’s activities, a slowdown in the financial markets or other economic conditions may adversely affect the Company’s growth and ability to finance its activities. If these increased levels of volatility and market turmoil continue, the Company’s activities could be adversely impacted and the trading price of the Company’s shares could be adversely affected.

EARNINGS PER SHARE

	2018 Cents	2017 Cents
Basic and diluted loss per share	(6.47)	(6.61)

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

Significant changes in the state of affairs of the Consolidated Entity during the financial year were as follows:

(i) On 18 August 2017, the Company issued 42,000 shares to an advisor as part of their annual fees.

(ii) On 17 November 2017, the Company issued 1,100,000 incentive options to a key consultant as an incentive to attract and retain their services.

(iii) On 1 December 2017, Mr Mark Hohnen retired as a Non-Executive Director of the Company.

(iv) On 22 December 2017, the Company issued 2,300,000 performance rights to key employees and consultants of the Company pursuant to the Salt Lake Potash Limited Performance Rights Plan, and 800,000 incentive options to a key consultant as an incentive to attract and retain their services.

(v) On 12 March 2018, the Company entered a Memorandum of Understanding (MOU) with Blackham Resources Limited (Blackham) to investigate the potential development of a Sulphate of Potash (SOP) operation based at Lake Way, near Wiluna. Under the MOU, the Company will acquire Blackham’s brine rights and Blackham will acquire gold rights to the Company’s Lake Way holdings, with each company retaining a royalty on their respective holdings.

(vi) On 9 April 2018, the Company announced that it had executed a Memorandum of Understanding with Mitsubishi Australia Limited and Mitsubishi Corporation (Mitsubishi), setting out the basis for the first Offtake Agreement for the Goldfields Salt Lakes Project. The formal Offtake Agreement will provide Mitsubishi with sales and offtake rights for up to 50% of the Sulphate of Potash (SOP) production from a Demonstration Plant at the GSLP, for distribution into Asia and Oceania and potentially other markets.

SIGNIFICANT EVENTS AFTER BALANCE DATE

(i) Announced the results from a Scoping Study on the Lake Wells project which confirmed its potential to produce low cost SOP by solar evaporation of lake brines for domestic and international fertiliser markets;

(ii) On 10 August 2018, the Company appointed Mr Clint McGhie as Company Secretary and Chief Financial Officer following the resignation of Mr Sam Cordin; and

(iii) On 14 September 2018, the Company announced that it entered into a Memorandum of Understanding and Co-operation Agreement with Australian Potash Limited (ASX: APC) to study the potentially very substantial benefits of sharing infrastructure and other costs at Lake Wells.

Other than as noted above, as at the date of this report there are no matters or circumstances which have arisen since 30 June 2018 that have significantly affected or may significantly affect:

· the operations, in financial years subsequent to 30 June 2018, of the Consolidated Entity;

· the results of those operations, in financial years subsequent to 30 June 2018, of the Consolidated Entity; or

· the state of affairs, in financial years subsequent to 30 June 2018, of the Consolidated Entity.

ENVIRONMENTAL REGULATION AND PERFORMANCE

The Group’s operations are subject to various environmental laws and regulations under the relevant government’s legislation. Full compliance with these laws and regulations is regarded as a minimum standard for all operations to achieve.

Instances of environmental non-compliance by an operation are identified either by external compliance audits or inspections by relevant government authorities.

There have been no significant known breaches by the Group during the financial year.

DIVIDENDS

No dividends were paid or declared since the start of the financial year. No recommendation for payment of dividends has been made.

DIRECTORS’ INTERESTS

As at the date of this report, the Directors’ interests in the securities of the Company are as follows:

	Interest in securities at the date of this report
	Ordinary Shares¹	Incentive Options ²	Performance Rights ³
Mr Ian Middlemas	11,000,000	–	–
Mr Matthew Syme	4,500,000	2,500,000	2,000,000
Mr Mark Pearce	4,000,000	–	200,000
Mr Bryn Jones	–	–	200,000

Notes:

¹ Ordinary Shares means fully paid Ordinary Shares in the capital of the Company.

² Incentive Options means an unlisted share option to subscribe for one Ordinary Share in the capital of the Company.

³ Performance Rights means Performance Rights issued by the Company that convert to one Ordinary Share in the capital of the Company upon satisfaction of various performance conditions.

SHARE OPTIONS, PERFORMANCE SHARES AND PERFORMANCE RIGHTS

At the date of this report the following options and performance shares have been issued over unissued Ordinary Shares of the Company:

· 750,000 Unlisted Options exercisable at $0.40 each on or before 29 April 2019;

· 750,000 Unlisted Options exercisable at $0.50 each on or before 29 April 2020;

· 1,000,000 Unlisted Options exercisable at $0.60 each on or before 29 April 2021;

· 250,000 Unlisted Options exercisable at $0.40 each on or before 30 June 2021;

· 500,000 Unlisted Options exercisable at $0.50 each on or before 30 June 2021;

· 750,000 Unlisted Options exercisable at $0.60 each on or before 30 June 2021;

· 400,000 Unlisted Options exercisable at $0.70 each on or before 30 June 2021;

· 5,000,000 ‘Class A’ Performance Shares expiring on or before 31 December 2018;

· 7,500,000 ‘Class B’ Performance Shares on or before 31 December 2019;

· 10,000,000 ‘Class C’ Performance Shares on or before 12 June 2020;

· 1,350,000 Performance Rights subject to the PFS Milestone expiring on 31 December 2018;

· 1,350,000 Performance Rights subject to the BFS Milestone expiring on 31 December 2019;

· 1,350,000 Performance Rights subject to the Construction Milestone expiring on 30 June 2020; and

· 1,350,000 Performance Rights subject to the Production Milestone expiring on 30 June 2021.

During the year ended 30 June 2018, no Ordinary Shares have been issued as a result of the exercise of Unlisted Options, and no Ordinary Shares have been issued as a result of the conversion of Performance Shares or Rights. Subsequent to year end and until the date of this report, no Ordinary Shares have been issued as a result of the exercise of Unlisted Options.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2018

		30 June 2018	30 June 2017
	Notes	$	$

Finance income	3	238,208	123,477
Other income	4	456,709	604,468
Exploration and evaluation expenses		(8,545,647)	(7,717,231)
Corporate and administrative expenses		(1,081,738)	(1,071,000)
Business development expenses		(1,110,578)	(559,247)
Share based payment expense	5	(1,284,062)	(580,976)
Loss before tax		(11,327,108)	(9,200,509)
Income tax expense	6	–	–
Loss for the year		(11,327,108)	(9,200,509)
Other comprehensive income Items that may be reclassified subsequently to profit or loss:
Foreign currency translation differences reclassified to profit or loss on disposal of controlled entity		–	(454,468)
Other comprehensive loss for the year, net of tax		–	(454,468)
Total comprehensive loss for the year		(11,327,108)	(9,654,977)
Basic and diluted loss per share attributable to the ordinary equity holders of the company (cents per share)	16	(6.47)	(6.61)

The above Consolidated Statement of Profit or Loss and other Comprehensive Income should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2018

	Notes	30 June 2018 $	30 June 2017 $

ASSETS
Current Assets
Cash and cash equivalents	7	5,709,446	15,596,759
Trade and other receivables	8	227,273	300,058
Total Current Assets		5,936,719	15,896,817

Non-Current Assets
Property, plant and equipment	9	535,344	303,511
Exploration and evaluation expenditure	10	2,276,736	2,276,736
Total Non-Current Assets		2,812,080	2,580,247
TOTAL ASSETS		8,748,799	18,477,064

LIABILITIES
Current Liabilities
Trade and other payables	11	1,620,527	1,348,791
Finance lease		11,829	13,011
Provisions	12	57,462	19,181
Total Current Liabilities		1,689,818	1,380,983

Non-Current Liabilities
Finance lease		38,992	49,638
Total Non-Current Liabilities		38,992	49,638
TOTAL LIABILITIES		1,728,810	1,430,621

NET ASSETS		7,019,989	17,046,443

EQUITY
Contributed equity	13	123,501,153	123,484,561
Reserves	14	2,105,886	821,824
Accumulated losses		(118,587,050)	(107,259,942)
TOTAL EQUITY		7,019,989	17,046,443

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2018

	Contributed Equity	Share- Based Payment Reserve	Foreign Currency Translation Reserve	Accumulated Losses	Total Equity
	$	$	$	$	$
Balance at 1 July 2017	123,484,561	821,824	–	(107,259,942)	17,046,443
Net loss for the year	–	–	–	(11,327,108)	(11,327,108)
Total comprehensive loss for the year	–	–	–	(11,327,108)	(11,327,108)

Shares issued in lieu of fees	18,476	–	–	–	18,476
Share issue costs	(1,884)	–	–	–	(1,884)
Share based payment expense	–	1,284,062	–	–	1,284,062
Balance at 30 June 2018	123,501,153	2,105,886	–	(118,587,050)	7,019,989

Balance at 1 July 2016	106,761,669	240,848	454,468	(98,059,433)	9,397,552
Net loss for the year	–	–	–	(9,200,509)	(9,200,509)
Exchange differences reclassified to profit or loss on disposal of controlled entity	–	–	(454,468)	–	(454,468)
Total comprehensive loss for the year	–	–	(454,468)	(9,200,509)	(9,654,977)

Shares issued in lieu of fees	86,400	–	–	–	86,400
Share placement	17,630,000	–	–	–	17,630,000
Share issue costs	(993,508)	–	–	–	(993,508)
Share based payment expense	–	580,976	–	–	580,976
Balance at 30 June 2017	123,484,561	821,824	–	(107,259,942)	17,046,443

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2018

	Note	30 June 2018 $	30 June 2017 $

Cash flows from operating activities
Payments to suppliers and employees		(10,275,823)	(8,657,842)
Exploration investment scheme received		30,000	120,000
R&D tax incentive		456,709	–
Interest received		242,852	114,423
Net cash outflow from operating activities	15(a)	(9,546,262)	(8,423,419)

Cash flows from investing activities
Payments for property, plant and equipment		(256,890)	(162,675)
Net cash outflow from investing activities		(256,890)	(162,675)

Cash flows from financing activities
Proceeds from issue of shares		–	17,630,000
Lease payments		(11,829)	–
Transaction costs from issue of shares		(72,332)	(945,448)
Net cash inflow/(outflow) from financing activities		(84,161)	16,684,552

Net increase/(decrease) in cash and cash equivalents held		(9,887,313)	8,098,458
Net foreign exchange differences		–	16
Cash and cash equivalents at the beginning of the year		15,596,759	7,498,285
Cash and cash equivalents at the end of the year	15(b)	5,709,446	15,596,759

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies adopted in preparing the financial report of Salt Lake Potash Limited (Salt Lake or Company) and its consolidated entities (Consolidated Entity or Group) for the year ended 30 June 2018 are stated to assist in a general understanding of the financial report.

Salt Lake is a Company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the Australian Securities Exchange (ASX), and the AIM Market (AIM) of the London Stock Exchange.

The financial report of the Group for the year ended 30 June 2018 was authorised for issue in accordance with a resolution of the Directors on 26 September 2018.

(a) Basis of Preparation

The financial report is a general purpose financial report, which has been prepared in accordance with Australian Accounting Standards (“AASBs”) and other authoritative pronouncements of the Australian Accounting Standards Board (“AASB”) and the Corporations Act 2001. The Group is a for-profit entity for the purposes of preparing the consolidated financial statements.

The financial report has been prepared on a historical cost basis. The financial report is presented in Australian dollars.

Going concern

The consolidated financial statements have been prepared on a going concern basis which assumes the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business.

For the year ended 30 June 2018, the Consolidated Entity incurred a net loss of $11,327,108 (2017: $9,654,977) and experienced net cash outflows from operating and investing activities of $9,821,628 (2017: $8,586,094). As at 30 June 2018, the Group had cash and cash equivalents of $5,709,446 (2017: $15,596,759) and net current assets of $4,246,901 (2017: $14,515,834).

The Company has recently completed a successful Scoping Study for the Lake Way Demonstration Plant and is currently in the process of finalising parameters for the Pre-Feasibility Study and construction of holding ponds to dewater Blackham’s Williamson Pit. The Scoping Study on the development of a 50,000tpa sulphate of potash (SOP) Demonstration Plant at Lake Way supports a low capex, highly profitable, staged development model. In order to continue to progress the Demonstration Plant at Lake Way and ongoing studies for the wider GSLP, the Company will be required to raise additional capital during the current financial year.

Based on the successful results of the Scoping Study and having previously raised funds for the GSLP, the Directors are confident that they will be able to raise additional capital as and when required to continue to fund operations. In addition, the Directors have been involved in a number of recent successful capital raisings for other listed resource companies, and accordingly, they are satisfied that they will be able to raise additional capital when required to enable the Consolidated Entity to meet its obligations as and when they fall due, and accordingly, consider that it is appropriate to prepare the financial statements on the going concern basis.

Should the Consolidated Entity be unable to raise additional capital as and when required, the Consolidated Entity would need to reduce operational expenditure to continue as a going concern. In the event that the Consolidated Entity is unable to achieve the matters referred to above, uncertainty would exist that may cast doubt on the ability of the Consolidated Entity to continue as a going concern.

These consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or to the amounts and classification of liabilities that might be necessary should the Consolidated Entity be unable to continue as a going concern.

(b) Statement of Compliance

The financial report complies with Australian Accounting Standards and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

In the current year, the Group has adopted all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for the current annual reporting period.

New and revised standards and amendments thereof and interpretations effective for the current reporting period that are relevant to the Group include:

· AASB 2016-1 Amendments to Australian Accounting Standards – Recognition of Deferred Tax Assets for Unrealised Losses which clarify that the existence of a deductible temporary difference depends solely on a comparison of the carrying amount of an asset and its tax base at the end of the reporting period, and is not effected by possible future changes in the carrying amount or expected manner of recovery of the asset;

· AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107 which amend existing presentation and disclosure requirements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes; and

· AASB 2017-2 Amendments to Australian Accounting Standards – Further Annual Improvements 2016-2016 Cycle which clarify the existing disclosure requirements and scope of AASB 12 Disclosure of Interest in Other Entities to apply to interests that are classified as held for sale or distribution.

The adoption of these new and revised standards has not resulted in any significant changes to the Group’s accounting policies or to the amounts reported for the current or prior periods.

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective have not been adopted by the Group for the annual reporting period ended 30 June 2018. Those which may be relevant to the Group are set out in the table below.

Standard/Interpretation	Application date of standard	Application date for Group
AASB 9 Financial Instruments, and relevant amending standards	1 January 2018	1 July 2018
AASB 15 Revenue from Contracts with Customers, and relevant amending standards	1 January 2018	1 July 2018
AASB 2016-5 Amendments to Australian Accounting Standards – Classification and Measurement of Share-based Payment Transactions	1 January 2018	1 July 2018
AASB Interpretation 22 Foreign Currency Transactions and Advance Consideration	1 January 2018	1 July 2018
AASB 16 Leases	1 January 2019	1 July 2019

Management has reviewed the requirements of these accounting standards and has assessed that these will not have any significant impact on the Group’s financial statements based on the following:

· At 30 June 2018, the Group’s only financial assets and liabilities are cash, receivables, finance lease and payables for which no significant measurement changes have been introduced under AASB 9. The changes to the impairment model are not anticipated to have an impact on the Group as receivables are primarily comprised of GST and interest;

· The Group does not currently have any revenue contracts and accordingly AASB 15 is not expected to have an impact on the Group’s results; and

· The Group’s main operating lease is for office space, currently at a cost of $10,170 per month. Under AASB 16, an asset (the right to use the leased item) and a financial liability to pay rentals will be recognised. AASB 16 will not apply to short term contracts of less than 12 months.

(c) Principles of Consolidation

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of the Company as at 30 June 2018 and the results of all subsidiaries for the year then ended.

Subsidiaries are all entities (including structured entities) over which the group has control. The group controls an entity when the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity.

The financial statements of the subsidiaries are prepared for the same reporting period as the Company, using consistent accounting policies. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Company.

Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are de-consolidated from the date that control ceases. Intercompany transactions and balances, income and expenses and profits and losses between Group companies, are eliminated.

(d) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less.

(e) Trade and Other Receivables

Trade receivables are recognised and carried at the original invoice amount less a provision for any uncollectable debts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written‑off as incurred.

Short term receivables from related parties are recognised and carried at the nominal amount due and are interest free.

(f) Investments and Other Financial Assets

(i) Classification

Financial assets in the scope of AASB 139 Financial Instruments: Recognition and Measurement are classified as either financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments, or available-for-sale investments, as appropriate. When financial assets are recognised initially they are measured at fair value, plus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs. The Group determines the classification of its financial assets after initial recognition and, when allowed and appropriate, re-evaluates this designation at each financial year-end.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when the Group provides money, goods or services directly to a debtor with no intention of selling the receivable. They are included in current assets, except for those with maturities greater than twelve months after the reporting date which are classified as non-current assets. Loans and receivables are included in receivables in the statement of financial position.

Loans and receivables are carried at amortised cost using the effective interest rate method.

(ii) Impairment

Collectability of trade and other receivables is reviewed on an ongoing basis. Individual debts that are known to be uncollectible are written off when identified. An impairment allowance is recognised when there is objective evidence that the Consolidated Entity will not be able to collect the receivable. Financial difficulties of the debtor, default payments or debts more than 60 days overdue are considered objective evidence of impairment. The amount of the impairment loss is the receivable carrying amount compared to the present value of estimated future cash flows, discounted at the original effective interest rate.

(g) Property, Plant and Equipment

(i) Recognition and measurement

All classes of property, plant and equipment are measured at historical cost.

Plant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment losses. Such cost includes the cost of replacing parts that are eligible for capitalisation when the cost of replacing the parts is incurred. Similarly, when each major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement only if it is eligible for capitalisation. All other repairs and maintenance are recognised in the Statement of Profit or Loss and other Comprehensive Income as incurred.

(ii) Depreciation and Amortisation

Depreciation is provided on a straight line basis on all property, plant and equipment.

	2018	2017
Major depreciation and amortisation periods are:
Plant and equipment:	22%- 40%	22%- 40%

The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each financial year end.

(iii) Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

(h) Exploration and Development Expenditure

Expenditure on exploration and evaluation is accounted for in accordance with the ‘area of interest’ method.

Exploration and evaluation expenditure encompasses expenditures incurred by the Group in connection with the exploration for and evaluation of mineral resources before the technical feasibility and commercial viability of extracting a mineral resource are demonstrable.

For each area of interest, expenditure incurred in the acquisition of rights to explore is capitalised, classified as tangible or intangible, and recognised as an exploration and evaluation asset. Exploration and evaluation assets are measured at cost at recognition and are recorded as an asset if:

a. the rights to tenure of the area of interest are current; and

b. at least one of the following conditions is also met:

· the exploration and evaluation expenditures are expected to be recouped through successful development and exploitation of the area of interest, or alternatively, by its sale; and

· exploration and evaluation activities in the area of interest have not at the reporting date reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing.

Exploration and evaluation expenditure incurred by the Group subsequent to acquisition of the rights to explore is expensed as incurred, up to costs associated with the preparation of a feasibility study.

(i) Impairment

Capitalised exploration costs are reviewed each reporting date to establish whether an indication of impairment exists. If any such indication exists, the recoverable amount of the capitalised exploration costs is estimated to determine the extent of the impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in previous years.

Where a decision is made to proceed with development, accumulated expenditure is tested for impairment and transferred to development properties, and then amortised over the life of the reserves associated with the area of interest once mining operations have commenced. Recoverability of the carrying amount of the exploration and evaluation assets is dependent on successful development and commercial exploitation, or alternatively, sale of the respective areas of interest.

(i) Payables

Liabilities are recognised for amounts to be paid in the future for goods and services received. Trade accounts payable are normally settled within 60 days. Payables are carried at amortised cost.

(j) Provisions

Provisions are recognised when the group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

(k) Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable.

Interest income

Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial assets.

(l) Income Tax

The income tax expense for the period is the tax payable on the current period’s taxable income based on the national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses.

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability. An exception is made for certain temporary differences arising from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised in relation to these temporary differences if they arose on goodwill or in a transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or taxable profit or loss.

Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in controlled entities where the Company is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.

Unrecognised deferred income tax assets are reassessed at each balance date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.

Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against tax liabilities and the deferred tax liabilities relate to the same taxable entity and the same taxation authority.

Tax consolidation

Salt Lake Potash Limited and its wholly-owned Australian subsidiaries have formed an income tax consolidated group under the tax consolidation regime. Each entity in the group recognises its own current and deferred tax liabilities, except for any deferred tax assets resulting from unused tax losses and tax credits, which are immediately assumed by the Company. The current tax liability of each group entity is then subsequently assumed by the Company. The tax consolidated group has entered a tax sharing agreement whereby each company in the Group contributes to the income tax payable in proportion to their contribution to the net profit before tax of the tax consolidated group.

(m) Employee Entitlements

Provision is made for the Group’s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits that are expected to be settled within 12 months have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits expected to be settled more later than 12 months after the year end have been measured at the present value of the estimated future cash outflows to be made for those benefits.

(n) Earnings per Share

Basic earnings per share (EPS) is calculated by dividing the net profit attributable to members of the Company for the reporting period, after excluding any costs of servicing equity, by the weighted average number of Ordinary Shares of the Company, adjusted for any bonus issue.

Diluted EPS is calculated by dividing the basic EPS earnings, adjusted by the after tax effect of financing costs associated with dilutive potential Ordinary Shares and the effect on revenues and expenses of conversion to Ordinary Shares associated with dilutive potential Ordinary Shares, by the weighted average number of Ordinary Shares and dilutive Ordinary Shares adjusted for any bonus issue.

(o) Goods and Services Tax

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST.

Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

(p) Acquisition of Assets

A group of assets may be acquired in a transaction which is not a business combination. In such cases the cost of the group is allocated to the individual identifiable assets (including intangible assets that meet the definition of and recognition criteria for intangible assets in AASB 138) acquired and liabilities assumed on the basis of their relative fair values at the date of purchase.

(q) Impairment of Non-Current Assets

The Group assesses at each reporting date whether there is an indication that a non-current asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs of disposal and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets and the asset’s value in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the cash-generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount.

In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

An assessment is also made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss. After such a reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.

(r) Issued and Unissued Capital

Ordinary Shares are classified as equity. Issued and paid up capital is recognised at the fair value of the consideration received by the Company.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

(s) Foreign Currencies

(i) Functional and presentation currency

The functional currency of each of the Group’s entities is measured using the currency of the primary economic environment in which that entity operates. The consolidated financial statements are presented in Australian dollars which is the Company’s functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction.

Exchange differences arising on the translation of monetary items are recognised in the Statement Profit or Loss and other Comprehensive Income, except where deferred in equity as a qualifying cash flow or net investment hedge.

Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the extent that the gain or loss is directly recognised in equity, otherwise the exchange difference is recognised in the other Comprehensive Income.

(iii) Group companies

The financial results and position of foreign operations whose functional currency is different from the Group’s presentation currency are translated as follows:

· assets and liabilities are translated at year-end exchange rates prevailing at that reporting date;

· income and expenses are translated at average exchange rates for the period; and

· items of equity are translated at the historical exchange rates prevailing at the date of the transaction.

Exchange differences arising on translation of foreign operations are transferred directly to the group’s foreign currency translation reserve in the statement of financial position. These differences are recognised in the Statement of Profit or Loss and other Comprehensive Income in the period in which the operation is disposed.

(t) Share-Based Payments

Equity-settled share-based payments are provided to officers, employees, consultants and other advisors. These share-based payments are measured at the fair value of the equity instrument at the grant date. Fair value is determined using the Binomial option pricing model. Further details on how the fair value of equity-settled share based payments has been determined can be found in Note 20.

The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the Company’s estimate of equity instruments that will eventually vest. At each reporting date, the Company revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in profit or loss over the remaining vesting period, with a corresponding adjustment to the share based payments reserve.

Equity-settled share-based payments may also be provided as consideration for the acquisition of assets. Where Ordinary Shares are issued, the transaction is recorded at fair value based on the quoted price of the Ordinary Shares at the date of issue. The acquisition is then recorded as an asset or expensed in accordance with accounting standards.

(u) Use and Revision of Accounting Estimates, Judgements and Assumptions

The preparation of the financial report requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements are described in the following notes:

· Exploration and Evaluation Expenditure (Note 10)

· Share-Based Payments (Note 20)

2. SEGMENT INFORMATION

The Consolidated Entity operates in one operating segment and one geographical segment, being mineral exploration in Australia. This is the basis on which internal reports are provided to the Directors for assessing performance and determining the allocation of resources within the Consolidated Entity.

3. FINANCE INCOME

		2018	2017
	Note	$	$

Interest income		238,208	123,477
		238,208	123,477

4. OTHER INCOME

		2018	2017
	Note	$	$

Gain on disposal of controlled entity¹		–	454,468
Exploration Incentive Scheme		–	150,000
R&D tax incentive		456,709	–
		456,709	604,468

Notes:

¹ During the 2017 year, the Company sold its United States subsidiary, Golden Eagle Uranium, for a nominal amount which resulted in a gain on disposal of A$454,468 relating to prior exchange differences on translation of Golden Eagle Uranium that have been transferred from the foreign currency translation reserve.

5. EXPENSES

		2018	2017
	Note	$	$

(a) Depreciation included in statement of comprehensive income
Depreciation of plant and equipment	9	75,031	37,088

(b) Employee benefits expense (including KMP)
Salaries and wages		1,942,801	1,342,932
Superannuation expense		176,466	126,503
Share-based payment expense	20	1,284,062	580,976
Total employment expenses included in profit or loss		3,403,329	2,050,411

6. INCOME TAX

	2018	2017
	$	$

(a) Recognised in the statement of comprehensive income
Current income tax
Current income tax benefit in respect of the current year	–	–
Deferred income tax
Deferred income tax	–	–
Income tax expense reported in the statement of Profit or Loss and other Comprehensive income	–	–

(b) Reconciliation between tax expense and accounting loss before income tax
Accounting loss before income tax	(11,327,108)	(9,200,509)

At the domestic income tax rate of 27.5% (2017: 27.5%)	(3,114,955)	(2,530,140)
Expenditure not allowable for income tax purposes	511,763	280,752
Income not assessable for income tax purposes	(125,595)	(124,979)
Adjustment in respect of current income tax of previous years	(3,447)	–
Deferred tax assets not brought to account	2,732,234	2,374,367
Income tax expense/(benefit) reported in the statement of Profit or Loss and other Comprehensive income	–	–

	2018	2017
	$	$

(c) Deferred Tax Assets and Liabilities
Deferred income tax at 30 June relates to the following:

Deferred Tax Liabilities
Accrued income	4,833	6,110
Exploration and evaluation assets	43,209	43,209
Deferred tax assets used to offset deferred tax liabilities	(48,042)	(49,319)
	–	–

Deferred Tax Assets
Accrued expenditure	21,813	7,200
Capital allowances	243,070	341,543
Tax losses available for offset against future taxable income	9,183,494	6,368,677
Deferred tax assets used to offset deferred tax liabilities	(48,042)	(49,319)
Deferred tax assets not brought to account	(9,400,335)	(6,668,101)
	–	–

The benefit of deferred tax assets not brought to account will only be brought to account if:

· future assessable income is derived of a nature and of an amount sufficient to enable the benefit to be realised;

· the conditions for deductibility imposed by tax legislation continue to be complied with; and

· no changes in tax legislation adversely affect the Group in realising the benefit.

Deferred tax assets have not been recognised in respect to tax losses because it is not probable that future taxable profit will be available against which the Group can utilise the benefits.

(d) Tax Consolidation

The Company and its wholly-owned Australian resident entities have formed a tax consolidated group and are therefore taxed as a single entity. The head entity within the tax consolidated group is Salt Lake Potash Limited.

7. CASH AND CASH EQUIVALENTS

	2018	2017
	$	$

Cash on hand and at bank	1,596,390	15,524,703
Deposit on call	4,113,056	72,056
	5,709,446	15,596,759

8. TRADE AND OTHER RECEIVABLES

	2018	2017
	$	$

Accrued interest	17,572	22,216
GST and other receivables	209,701	277,842
	227,273	300,058

9. PROPERTY, PLANT AND EQUIPMENT

	2018	2017
	$	$
(a) Plant and Equipment
Gross carrying amount – at cost	652,644	345,780
Accumulated depreciation	(117,300)	(42,269)
Carrying amount at end of year, net of accumulated depreciation	535,344	303,511

(b) Reconciliation
Carrying amount at beginning of year, net of accumulated depreciation	303,511	115,275
Additions	306,864	225,324
Depreciation charge	(75,031)	(37,088)
Carrying amount at end of year, net of accumulated depreciation	535,344	303,511

Finance Leases

The carrying value of plant and equipment held under finance leases at 30 June 2018 was $55,857 (2017: $64,036). Additions during the year include $Nil (2017: $64,036) of plant and equipment under finance lease.

10. EXPLORATION AND EVALUATION EXPENDITURE

		2018	2017
	Note	$	$
(a) Areas of Interest
SOP Project		2,276,736	2,276,736
Carrying amount at end of year, net of impairment¹		2,276,736	2,276,736

(b) Reconciliation
Carrying amount at start of year		2,276,736	2,276,736
Impairment losses		–	–
Carrying amount at end of year net of impairment ¹		2,276,736	2,276,736

Notes:

¹ The ultimate recoupment of costs carried forward for exploration and evaluation is dependent on the successful development and commercial exploitation or sale of the respective areas of interest.

SOP Project

Salt Lake holds a number of large salt lake brine projects (Projects) in Western Australia and the Northern Territory, each having potential to produce highly sought after Sulphate of Potash (SOP) for domestic and international fertiliser markets.

11. TRADE AND OTHER PAYABLES

	2018	2017
	$	$

Trade creditors	1,483,554	1,250,959
Accrued expenses	136,973	97,832
	1,620,527	1,348,791

Terms and conditions of the above financial liabilities:

– Trade payables are non-interest bearing and are normally settled on 30-day terms.

12. PROVISIONS

	2018	2017
	$	$

Statutory employee benefits	57,462	19,181
	57,462	19,181

13. CONTRIBUTED EQUITY

	30 June 2018 $	30 June 2017 $
Share Capital
175,049,596 (30 June 2017: 175,007,596) Ordinary Shares	123,501,153	123,484,561
	123,501,153	123,484,561

(a) Movements in Ordinary Shares During the Past Two Years Were as Follows:

		Number of Ordinary Shares	Issue Price $	$

01-Jul-17	Opening Balance	175,007,596		123,484,561
18-Aug-17	Share issue ¹	42,000	0.44	18,476
Jul-17 to Jun-18	Share issue costs	–	–	(1,884)
30-Jun-18	Closing balance	175,049,596		123,501,153

01-Jul-16	Opening Balance	133,827,596	–	106,761,669
09-Sep-16	Share issue ¹	180,000	0.48	86,400
02-May-17	Share placement	30,700,000	0.43	13,201,000
21-Jun-17	Share placement	10,300,000	0.43	4,429,000
Jul-16 to Jun-17	Share issue costs	–	–	(993,508)
30-Jun-17	Closing balance	175,007,596	–	123,484,561

Notes:

¹Shares issued to a key consultant of the Company in lieu of fees.

(b) Rights Attaching to Ordinary Shares:

The rights attaching to fully paid Ordinary Shares (Ordinary Shares) arise from a combination of the Company’s Constitution, statute and general law.

Ordinary Shares issued following the exercise of Unlisted Options in accordance with Note 14(c) or Performance Shares in accordance with Note 14(d) or Performance Rights in accordance with Note 14(e) will rank equally in all respects with the Company’s existing Ordinary Shares.

Copies of the Company’s Constitution are available for inspection during business hours at the Company’s registered office. The clauses of the Constitution contain the internal rules of the Company and define matters such as the rights, duties and powers of its shareholders and directors, including provisions to the following effect (when read in conjunction with the Corporations Act 2001 or the listing rules of the ASX and AIM (Listing Rules)).

(i) Shares

The issue of shares in the capital of the Company and options over unissued shares by the Company is under the control of the Directors, subject to the Corporations Act 2001, ASX Listing Rules and any rights attached to any special class of shares.

(ii) Meetings of Members

Directors may call a meeting of members whenever they think fit. Members may call a meeting as provided by the Corporations Act 2001. The Constitution contains provisions prescribing the content requirements of notices of meetings of members and all members are entitled to a notice of meeting. A meeting may be held in two or more places linked together by audio-visual communication devices. A quorum for a meeting of members is two shareholders.

The Company holds annual general meetings in accordance with the Corporations Act 2001 and the Listing Rules.

(iii) Voting

Subject to any rights or restrictions at the time being attached to any shares or class of shares of the Company, each member of the Company is entitled to receive notice of, attend and vote at a general meeting. Resolutions of members will be decided by a show of hands unless a poll is demanded. On a show of hands each eligible voter present has one vote. However, where a person present at a general meeting represents personally or by proxy, attorney or representative more than one member, on a show of hands the person is entitled to one vote only despite the number of members the person represents.

On a poll each eligible member has one vote for each fully paid share held and a fraction of a vote for each partly paid share determined by the amount paid up on that share.

(iv) Changes to the Constitution

The Company’s Constitution can only be amended by a special resolution passed by at least three quarters of the members present and voting at a general meeting of the Company. At least 28 days’ written notice specifying the intention to propose the resolution as a special resolution must be given.

(v) Listing Rules

Provided the Company remains admitted to the Official List of the ASX, then despite anything in its Constitution, no act may be done that is prohibited by the Listing Rules, and authority is given for acts required to be done by the Listing Rules. The Company’s Constitution will be deemed to comply with the Listing Rules as amended from time to time.

14. RESERVES

		2018	2017
	Note	$	$

Share-based payments reserve	14(b)	2,105,886	821,824
		2,105,886	821,824

(a) Nature and Purpose of Reserves

(i) Share-based payments reserve

The share-based payments reserve is used to record the fair value of Unlisted Options, Performance Rights and Performance Shares issued by the Group.

(b) Movements in the share-based payments reserve during the past two years were as follows:

		Number of Performance Rights	Number of Performance Shares	Number of Unlisted Options	$

01-Jul-17	Opening Balance	4,100,000	22,500,000	2,500,000	821,824
23-Sep-17	Performance Rights forfeited	(1,000,000)	–	–	–
28-Nov-17	Issue of unlisted options	–	–	1,100,000	–
22-Dec-17	Issue of unlisted options	–	–	800,000	–
22-Dec-17	Issue of Performance Rights	2,300,000	–	–	–
Jul-17 to Jun-18	Share based payments expense	–	–	–	1,284,062
30-Jun-18	Closing balance	5,400,000	22,500,000	4,400,000	2,105,886

01-Jul-16	Opening Balance	–	22,500,000	2,705,443	240,848
22-Nov-16	Expiry of unlisted options	–	–	(205,443)	–
01-Mar-17	Issue of Performance Rights	3,000,000	–	–	–
09-Jun-17	Issue of Performance Rights	200,000	–	–	–
20-Jun-17	Issue of Performance Rights	1,000,000	–	–	–
30-Jun-17	Lapsed Performance Rights	(100,000)	–	–	–
Jul-16 to Jun-17	Share based payments expense	–	–	–	580,976
30-Jun-17	Closing balance	4,100,000	22,500,000	2,500,000	821,824

(c) Terms and Conditions of Unlisted Options

The Unlisted Options are granted based upon the following terms and conditions:

· Each Unlisted Option entitles the holder to the right to subscribe for one Ordinary Share upon the exercise of each Unlisted Option;

· The Unlisted Options outstanding at the end of the financial year have the following exercise prices and expiry dates:

· 750,000 Unlisted Options exercisable at $0.40 each on or before 29 April 2019;

· 750,000 Unlisted Options exercisable at $0.50 each on or before 29 April 2020;

· 1,000,000 Unlisted Options exercisable at $0.60 each on or before 29 April 2021;

· 250,000 Unlisted Options exercisable at $0.40 each on or before 30 June 2021;

· 500,000 Unlisted Options exercisable at $0.50 each on or before 30 June 2021;

· 750,000 Unlisted Options exercisable at $0.60 each on or before 30 June 2021; and

· 400,000 Unlisted Options exercisable at $0.70 each on or before 30 June 2021.

· The Unlisted Options are exercisable at any time prior to the Expiry Date, subject to vesting conditions being satisfied (if applicable);

· Ordinary Shares issued on exercise of the Unlisted Options rank equally with the then Ordinary Shares of the Company;

· Application will be made by the Company to ASX and to the AIM market of the London Stock Exchange for official quotation of the Ordinary Shares issued upon the exercise of the Unlisted Options;

· If there is any reconstruction of the issued share capital of the Company, the rights of the Unlisted Option holders may be varied to comply with the Listing Rules which apply to the reconstruction at the time of the reconstruction; and

· No application for quotation of the Unlisted Options will be made by the Company.

(d) Terms and Conditions of Performance Shares

The Convertible Performance Shares (Performance Shares) were granted as part of the consideration to acquire Australia Salt Lake Potash Pty Ltd on the following terms and conditions:

· Each Performance Share will convert into one Ordinary Share upon the satisfaction, prior to the Expiry Date, of the respective Milestone:

– 5,000,000 Performance Shares subject to Class A Milestone: The announcement by the Company to ASX of the results of a positive Pre-feasibility Study on all or part of the Project Licences;

– 7,500,000 Performance Shares subject to Class B Milestone: The announcement by the Company to ASX of the results of a positive Definitive Feasibility Study on all or part of the Project Licences; and

– 10,000,000 Performance Shares subject to Class C Milestone: The commencement of construction activities for a mining operation on all or part of the Project Licences (including the commencement of ground breaking for the construction of infrastructure and/or processing facilities) following a final investment decision by the Board as per the project development schedule and budget in accordance with the Definitive Feasibility Study, within five years from the date of issue.

· Expiry Date means:

– in relation to the Class A Performance Shares, 31 December 2018 (amended following Shareholder approval on 11 June 2018);

– in relation to the Class B Performance Shares, 31 December 2019 (amended following Shareholder approval on 11 June 2018);

and

– in relation to the Class C Performance Shares, 5 years from the date of issue (12 June 2020);

· If the Milestone for a Performance Share is not met by the Expiry Date, the total number of the relevant class of Performance Shares will convert into one Ordinary Share per holder;

· The Company shall allot and issue Ordinary Shares immediately upon conversion of the Performance Shares for no consideration;

· Ordinary Shares issued on conversion of the Performance Shares rank equally with the then Ordinary Shares of the Company;

· In the event of any reconstruction, consolidation or division into (respectively) a lesser or greater number of securities of the Ordinary Shares, the Performance Shares shall be reconstructed, consolidated or divided in the same proportion as the Ordinary Shares are reconstructed, consolidated or divided and, in any event, in a manner which will not result in any additional benefits being conferred on the Performance Shareholders which are not conferred on the Ordinary Shareholders;

· The Performance Shareholders shall have no right to vote, subject to the Corporations Act;

· No application for quotation of the Performance Shares will be made by the Company; and

· The Performance Shares are not transferable.

(e) Terms and Conditions of Performance Rights

The Performance Rights are granted based upon the following terms and conditions:

· Each Performance Right automatically converts into one Ordinary Share upon vesting of the Performance Right;

· Each Performance Right is subject to performance conditions (as determined by the Board from time to time) which must be satisfied in order for the Performance Right to vest;

· The Performance Rights have the following expiry dates:

– 1,350,000 Performance Rights subject to the PFS Milestone expiring on 31 December 2018 (amended following Shareholder approval on 11 June 2018);

– 1,350,000 Performance Rights subject to the BFS Milestone expiring on 31 December 2019 (amended following Shareholder approval on 11 June 2018);

– 1,350,000 Performance Rights subject to the Construction Milestone expiring on 30 June 2020; and

– 1,350,000 Performance Rights subject to the Production Milestone expiring on 30 June 2021.

· Ordinary Shares issued on conversion of the Performance Rights rank equally with the then Ordinary Shares of the Company;

· Application will be made by the Company to ASX AIM market of the London Stock Exchange for official quotation of the Ordinary Shares issued upon conversion of the Performance Rights;

· If there is any reconstruction of the issued share capital of the Company, the rights of the Performance Right holders may be varied to comply with the Listing Rules which apply to the reconstruction at the time of the reconstruction; and

· No application for quotation of the Performance Rights will be made by the Company.

15. STATEMENT OF CASH FLOWS

(a) Reconciliation of the Loss after Tax to the Net Cash Flows from Operations

	2018	2017
	$	$

Net loss for the year	(11,327,108)	(9,200,509)

Adjustment for non-cash income and expense items
Depreciation of plant and equipment	75,031	37,088
Share based payment expense	1,284,062	580,976
Gain on disposal of controlled entity	–	(454,468)
Shares issued in lieu of fees	18,476	86,400

Change in operating assets and liabilities
(Increase)/decrease in trade and other receivables	84,784	(173,475)
Increase in trade and other payables	280,212	693,100
Increase in provisions	38,281	7,469

Net cash outflow from operating activities	(9,546,262)	(8,423,419)

16. EARNINGS PER SHARE

30 June 2018

30 June 2017

The following reflects the income and share data used in the calculations of basic and diluted earnings per share:

Net loss attributable to the owners of the Company used in calculating basic and diluted earnings per share

(11,327,108)

(9,200,509)

	Number of Shares 2018	Number of Shares 2017
Weighted average number of ordinary shares used in calculating basic and diluted earnings per share	175,043,958	139,217,150

(a) Non-Dilutive Securities

As at balance date, 4,400,000 Unlisted Options (which represent 4,400,000 potential Ordinary Shares), 22,500,000 Performance Shares (which represent 22,500,000 potential Ordinary Shares) and 5,400,000 Performance Rights (which represent 5,400,000 potential Ordinary Shares) were considered non-dilutive as they would decrease the loss per share.

(b) Conversions, Calls, Subscriptions or Issues after 30 June 2018

No securities have been issued since 30 June 2018.

There have been no other conversions to, calls of, or subscriptions for Ordinary Shares or issues of potential Ordinary Shares since the reporting date and before the completion of this financial report.

17. RELATED PARTIES

(a) Subsidiaries

		% Equity Interest
Name	Country of Incorporation	2018 %	2017 %

Ultimate parent entity:
Salt Lake Potash Limited	Australia
Subsidiaries of Salt Lake Potash Limited
Australia Salt Lake Potash Pty Ltd (ASLP)	Australia	100	100
Subsidiary of ASLP
Piper Preston Pty Ltd	Australia	100	100
Peak Coal Pty Ltd	Australia	–⁽ⁱ⁾	100

(i) Peak Coal was deregistered in April 2018.

(b) Ultimate Parent

Salt Lake Potash Limited is the ultimate parent of the Group.

(c) Transactions with Related Parties

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Transactions with Key Management Personnel, including remuneration, are included at Note 18.

18. KEY MANAGEMENT PERSONNEL

(a) Details of Key Management Personnel

The KMP of the Group during or since the end of the financial year were as follows:

Directors

Mr Ian Middlemas Chairman

Mr Matthew Syme Chief Executive Officer

Mr Mark Pearce Non-Executive Director
Mr Bryn Jones Non-Executive Director

Mr Mark Hohnen Non-Executive Director (resigned 1 December 2017)

Other KMP

Mr David Maxton Chief Operating Officer (appointed 12 April 2018)

Mr Clint McGhie Chief Financial Officer and Company Secretary (appointed 10 August 2018)

Mr Grant Coyle Business Development Manager (appointed 16 July 2018)

Mr Sam Cordin Chief Financial Officer and Company Secretary (resigned 10 August 2018)

Unless otherwise disclosed, the KMP held their position from 1 July 2017 until the date of this report.

	2018	2017
	$	$

Short-term employee benefits	726,607	591,898
Post-employment benefits	49,875	52,928
Share-based payments	595,394	556,016
Total compensation	1,371,876	1,200,842

(b) Loans from Key Management Personnel

No loans were provided to or received from Key Management Personnel during the year ended 30 June 2018 (2017: Nil).

(c) Other Transactions

Apollo Group Pty Ltd, a Company of which Mr Mark Pearce is a Director and beneficial shareholder, was paid or is payable $150,000 (2017: $150,000) for the provision of serviced office facilities, corporate and administration services for the year ended 30 June 2018. The amount is based on a monthly retainer due and payable in advance, with no fixed term, and is able to be terminated by either party with one month’s notice. At 30 June 2018, $25,000 (2017: $12,500) was included as a current liability in the Statement of Financial Position.

19. PARENT ENTITY DISCLOSURES

	2018	2017
	$	$

(a) Financial Position
Assets
Current assets	5,929,459	15,738,697
Non-current assets	2,106,089	2,027,221
Total assets	8,035,548	17,765,918

Liabilities
Current liabilities	1,689,818	1,430,620
Non-current liabilities	38,992	–
Total liabilities	1,728,810	1,430,620

Equity
Contributed equity	123,501,153	123,484,561
Accumulated losses	(119,300,301)	(107,971,087)
Reserves	2,105,886	821,824
Total equity	6,306,738	16,335,298

(b) Financial Performance
Loss for the year	(11,329,214)	(10,366,123)
Total comprehensive loss	(11,329,214)	(10,366,123)

(c) Other information

The Company has not entered into any guarantees in relation to its subsidiaries.

Refer to Note 23 for details of contingent assets and liabilities.

20. SHARE-BASED PAYMENTS

(a) Recognised Share-based Payment Expense

From time to time, the Group provides incentive Unlisted Options and Performance Rights to officers, employees, consultants and other key advisors as part of remuneration and incentive arrangements. The number of options or rights granted, and the terms of the options or rights granted are determined by the Board. Shareholder approval is sought where required.

In the current and prior year, the Company has also granted shares in lieu of payments to a consultant in accordance with the terms of engagement.

During the past two years, the following equity-settled share-based payments have been recognised:

	2018	2017
	$	$

Expenses arising from equity-settled share-based payment transactions relating incentive options and performance rights	1,284,062	580,976
Expenses arising from equity-settled share-based payment transactions to suppliers and consultants	18,476	86,400
Total share-based payments recognised during the year	1,302,538	667,376

(b) Summary of Unlisted Options and Performance Rights Granted as Share-based Payments

The following Unlisted Options and Performance Rights were granted as share-based payments during the past two years:

Series	Issuing Entity	Security Type	Number	Grant Date	Expiry Date	Exercise Price $	Grant Date Fair Value $
2018
Series 20	Salt Lake Potash Limited	Options	250,000	22-Nov-17	30-Jun-21	0.40	0.284
Series 21	Salt Lake Potash Limited	Options	350,000	22-Nov-17	30-Jun-21	0.50	0.256
Series 22	Salt Lake Potash Limited	Options	500,000	22-Nov-17	30-Jun-21	0.60	0.233
Series 23	Salt Lake Potash Limited	Options	150,000	15-Dec-17	30-Jun-21	0.50	0.228
Series 24	Salt Lake Potash Limited	Options	250,000	15-Dec-17	30-Jun-21	0.60	0.207
Series 25	Salt Lake Potash Limited	Options	400,000	15-Dec-17	30-Jun-21	0.70	0.188
Series 26	Salt Lake Potash Limited	Rights	575,000	15-Dec-17	30-Jun-18	–	0.486
Series 27	Salt Lake Potash Limited	Rights	575,000	15-Dec-17	30-Jun-19	–	0.486
Series 28	Salt Lake Potash Limited	Rights	575,000	15-Dec-17	30-Jun-20	–	0.486
Series 29	Salt Lake Potash Limited	Rights	575,000	15-Dec-17	30-Jun-21	–	0.486

2017
Series 4	Salt Lake Potash Limited	Rights	550,000	30-Nov-16	30-Jun-18	–	0.506
Series 5	Salt Lake Potash Limited	Rights	550,000	30-Nov-16	30-Jun-19	–	0.506
Series 6	Salt Lake Potash Limited	Rights	550,000	30-Nov-16	30-Jun-20	–	0.506
Series 7	Salt Lake Potash Limited	Rights	550,000	30-Nov-16	30-Jun-21	–	0.506
Series 8	Salt Lake Potash Limited	Rights	200,000	07-Feb-17	30-Jun-18	–	0.543
Series 9	Salt Lake Potash Limited	Rights	200,000	07-Feb-17	30-Jun-19	–	0.543
Series 10	Salt Lake Potash Limited	Rights	200,000	07-Feb-17	30-Jun-20	–	0.543
Series 11	Salt Lake Potash Limited	Rights	200,000	07-Feb-17	30-Jun-21	–	0.543
Series 12	Salt Lake Potash Limited	Rights	50,000	08-Jun-17	30-Jun-18	–	0.428
Series 13	Salt Lake Potash Limited	Rights	50,000	08-Jun-17	30-Jun-19	–	0.428
Series 14	Salt Lake Potash Limited	Rights	50,000	08-Jun-17	30-Jun-20	–	0.428
Series 15	Salt Lake Potash Limited	Rights	50,000	08-Jun-17	30-Jun-21	–	0.428
Series 16	Salt Lake Potash Limited	Rights	250,000	08-Jun-17	30-Jun-18	–	0.412
Series 17	Salt Lake Potash Limited	Rights	250,000	08-Jun-17	30-Jun-19	–	0.412
Series 18	Salt Lake Potash Limited	Rights	250,000	08-Jun-17	30-Jun-20	–	0.412
Series 19	Salt Lake Potash Limited	Rights	250,000	08-Jun-17	30-Jun-21	–	0.412

(c) Summary of Unlisted Options and Performance Rights Granted as Share-based Payments

The following table illustrates the number and weighted average exercise prices (WAEP) of Unlisted Options granted as share-based payments at the beginning and end of the financial year:

Unlisted Options	2018 Number	2018 WAEP	2017 Number	2017 WAEP
Outstanding at beginning of year	2,500,000	$0.51	2,705,443	$0.81
Granted by the Company during the year	1,900,000	$0.57	–	–
Forfeited/cancelled/lapsed/expired	–	–	(205,443)	$4.46
Outstanding at end of year	4,400,000	$0.53	2,500,000	$0.51
Exercisable at end of year	3,500,000	$0.51	1,500,000	$0.45

The outstanding balance of Unlisted Options as at 30 June 2018 is represented by:

· 750,000 Unlisted Options exercisable at $0.40 each on or before 29 April 2019;

· 750,000 Unlisted Options exercisable at $0.50 each on or before 29 April 2020;

· 1,000,000 Unlisted Options exercisable at $0.60 each on or before 29 April 2021;’

· 250,000 Unlisted Options exercisable at $0.40 each on or before 30 June 2021;

· 500,000 Unlisted Options exercisable at $0.50 each on or before 30 June 2021;

· 750,000 Unlisted Options exercisable at $0.60 each on or before 30 June 2021; and

· 400,000 Unlisted Options exercisable at $0.70 each on or before 30 June 2021.

The following table illustrates the number and weighted average exercise prices (WAEP) of Performance Rights granted as share-based payments at the beginning and end of the financial year:

Performance Rights	2018 Number	2018 WAEP	2017 Number	2017 WAEP
Outstanding at beginning of year	4,100,000	–	–	–
Granted by the Company during the year	2,300,000	–	4,200,000	–
Forfeited/cancelled/lapsed/expired	(1,000,000)	–	(100,000)	–
Outstanding at end of year	5,400,000	–	4,100,000	–

The outstanding balance of Performance Rights as at 30 June 2018 is represented by:

· 1,350,000 Performance Rights subject to the PFS Milestone expiring on 31 December 2018 (amended following Shareholder approval on 12 June 2018);

· 1,350,000 Performance Rights subject to the BFS Milestone expiring on 31 December 2019 (amended following Shareholder approval on 12 June 2018);

· 1,350,000 Performance Rights subject to the Construction Milestone expiring on 30 June 2020; and

· 1,350,000 Performance Rights subject to the Production Milestone expiring on 30 June 2021.

(d) Weighted Average Remaining Contractual Life

At 30 June 2018, the weighted average remaining contractual life of Unlisted Options on issue that had been granted as share-based payments was 2.39 years (2017: 2.93 years) and of Performance Rights on issue that had been granted as share-based payments was 1.75 years (2017: 2.5 years).

(e) Range of Exercise Prices

At 30 June 2018, the range of exercise prices of Unlisted Options on issue that had been granted as share-based payments was $0.40 to $0.70 (2017: $0.40 to $0.60). Performance Rights have no exercise price.

(f) Weighted Average Fair Value

The weighted average fair value of Unlisted Options granted as share-based payments by the Group during the year ended 30 June 2018 was $0.231 (2017: nil) and of Performance Rights granted as share-based payments was $0.486 (2017: $0.496).

(g) Option and Performance Right Pricing Models

The fair value of the equity-settled share options granted is estimated as at the date of grant using the Binomial option valuation model taking into account the terms and conditions upon which the Unlisted Options were granted. The fair value of Performance Rights granted is estimated as at the date of grant based on the underlying share price (being the five day volume weighted average share price prior to issuance).

The table below lists the inputs to the valuation model used for share options and Performance Rights granted by the Group in the current and prior year:

2018

Inputs	Series 20	Series 21	Series 22	Series 23	Series 24	Series 25
Options
Exercise price	0.40	0.50	0.60	0.50	0.60	0.70
Grant date share price	0.50	0.50	0.50	0.465	0.465	0.465
Dividend yield ¹	–	–	–	–	–	–
Volatility ²	70%	70%	70%	70%	70%	70%
Risk-free interest rate	1.99%	1.99%	1.99%	2.16%	2.16%	2.16%
Grant date	22-Nov-17	22-Nov-17	22-Nov-17	15-Dec-17	15-Dec-17	15-Dec-17
Expiry date	30-Jun-21	30-Jun-21	30-Jun-21	30-Jun-21	30-Jun-21	30-Jun-21
Expected life of option ³	3.61	3.61	3.61	3.54	3.54	3.54
Fair value at grant date	0.284	0.256	0.233	0.228	0.207	0.188

Notes:

¹ The dividend yield reflects the assumption that the current dividend payout will remain unchanged.

² The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may not necessarily be the actual outcome.

³ The expected life of the options is based on the expiry date of the options as there is limited track record of the early exercise of options.

Inputs	Series 26	Series 27	Series 28	Series 29
Performance Rights
Exercise price	–	–	–	–
Grant date share price	$0.465	$0.465	$0.465	$0.465
Grant date	15-Dec-17	15-Dec-17	15-Dec-17	15-Dec-17
Expiry date	30-Jun-18 ³	30-Jun-19 ⁴	30-Jun-20	30-Jun-21
Expected life of right ¹	0.5 years	1.5 years	2.5 years	3.5 years
Fair value at grant date ²	$0.486	$0.486	$0.486	$0.486

Notes:

¹ The expected life of the Performance Rights is based on the expiry date of the performance rights as there is limited track record of the early conversion of performance rights.

²The fair value of Performance Rights granted is estimated as at the date of grant based on the underlying share price (being the five day volume weighted average share price prior to issuance).

³Subsequent to grant, the expiry date was amended to 31 December 2018 following Shareholder approval on 11 June 2018. This has no impact on the fair value of the securities, however the period that the expense is being recognised over has been modified.

⁴Subsequent to grant, the expiry date was amended to 31 December 2019 following Shareholder approval on 11 June 2018. This has no impact on the fair value of the securities, however the period that the expense is being recognised over has been modified.

2017

Inputs	Series 4	Series 5	Series 6	Series 7
Exercise price	–	–	–	–
Grant date share price	$0.51	$0.51	$0.51	$0.51
Grant date	30-Nov-16	30-Nov-16	30-Nov-16	30-Nov-16
Expiry date	30-Jun-18	30-Jun-19	30-Jun-20	30-Jun-21
Expected life of right ¹	1.6 years	2.6 years	3.6 years	4.6 years
Fair value at grant date ²	$0.506	$0.506	$0.506	$0.506

Inputs	Series 8	Series 9	Series 10	Series 11
Exercise price	–	–	–	–
Grant date share price	$0.53	$0.53	$0.53	$0.53
Grant date	07-Feb-17	07-Feb-17	07-Feb-17	07-Feb-17
Expiry date	30-Jun-18	30-Jun-19	30-Jun-20	30-Jun-21
Expected life of right ¹	1.3 years	2.3 years	3.3 years	4.3 years
Fair value at grant date ²	$0.577	$0.577	$0.577	$0.577

Inputs	Series 12	Series 13	Series 14	Series 15
Exercise price	–	–	–	–
Grant date share price	$0.43	$0.43	$0.43	$0.43
Grant date	08-Jun-17	08-Jun-17	08-Jun-17	08-Jun-17
Expiry date	30-Jun-18	30-Jun-19	30-Jun-20	30-Jun-21
Expected life of right ¹	1.1 years	2.1 years	3.1 years	4.1 years
Fair value at grant date ²	$0.431	$0.431	$0.431	$0.431

Inputs	Series 16	Series 17	Series 18	Series 19
Exercise price	–	–	–	–
Grant date share price	$0.41	$0.41	$0.41	$0.41
Grant date	08-Jun-17	08-Jun-17	08-Jun-17	08-Jun-17
Expiry date	30-Jun-18	30-Jun-19	30-Jun-20	30-Jun-21
Expected life of right ¹	1.0 years	2.0 years	3.0 years	4.0 years
Fair value at grant date ²	$0.431	$0.431	$0.431	$0.431

Notes:

¹ The expected life of the Performance Rights is based on the expiry date of the performance rights as there is limited track record of the early conversion of performance rights.

²The fair value of Performance Rights granted is estimated as at the date of grant based on the underlying share price (being the five day volume weighted average share price prior to issuance).

21. AUDITORS’ REMUNERATION

The auditor of Salt Lake Potash Limited is Ernst and Young.

	2018	2017
	$	$
Amounts received or due and receivable by Ernst and Young for:
– an audit or review of the financial report of the entity and any other entity in the consolidated group	25,000	25,000
– tax and other advisory services	8,188	5,000
	33,188	30,000

22. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

(a) Overview

The Group’s principal financial instruments comprise receivables, payables, finance leases, cash and short-term deposits. The main risks arising from the Group’s financial instruments are credit risk, liquidity risk and interest rate risk.

This note presents information about the Group’s exposure to each of the above risks, its objectives, policies and processes for measuring and managing risk, and the management of capital. Other than as disclosed, there have been no significant changes since the previous financial year to the exposure or management of these risks.

The Group manages its exposure to key financial risks in accordance with the Group’s financial risk management policy. Key risks are monitored and reviewed as circumstances change (e.g. acquisition of a new project) and policies are revised as required. The overall objective of the Group’s financial risk management policy is to support the delivery of the Group’s financial targets whilst protecting future financial security.

Given the nature and size of the business and uncertainty as to the timing and amount of cash inflows and outflows, the Group does not enter into derivative transactions to mitigate the financial risks. In addition, the Group’s policy is that no trading in financial instruments shall be undertaken for the purposes of making speculative gains. As the Group’s operations change, the Directors will review this policy periodically going forward.

The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The Board reviews and agrees policies for managing the Group’s financial risks as summarised below.

(b) Credit Risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. This arises principally from cash and cash equivalents and trade and other receivables.

There are no significant concentrations of credit risk within the Group. The carrying amount of the Group’s financial assets represents the maximum credit risk exposure, as represented below:

	2018	2017
	$	$
Financial assets
Cash and cash equivalents	5,709,446	15,596,759
Trade and other receivables	227,273	300,058
	5,936,719	15,896,817

With respect to credit risk arising from cash and cash equivalents, the Group’s exposure to credit risk arises from default of the counter party, with a maximum exposure equal to the carrying amount of these instruments. Where possible, the Group invests its cash and cash equivalents with banks that are rated the equivalent of investment grade and above. The Group’s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties.

The Group does not have any significant customers and accordingly does not have significant exposure to bad or doubtful debts.

Trade and other receivables comprise interest accrued and GST refunds due. Where possible the Consolidated Entity trades only with recognised, creditworthy third parties. Receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not significant. At 30 June 2018, none (2017 none) of the Group’s receivables are past due.

(c) Liquidity Risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Board’s approach to managing liquidity is to ensure, as far as possible, that the Group will always have sufficient liquidity to meet its liabilities when due. At 30 June 2018 and 2017, the Group had sufficient liquid assets to meet its financial obligations.

The contractual maturities of financial liabilities, including estimated interest payments, are provided below. There are no netting arrangements in respect of financial liabilities.

	≤6 Months $	6-12 Months $	1-5 Years $	≥5 Years $	Total $
2018 Group
Financial Liabilities
Finance lease	5,914	5,915	38,992	–	50,821
Trade and other payables	1,620,527	–	–	–	1,620,527
	1,626,441	5,915	38,992	–	1,671,348

2017 Group
Financial Liabilities
Finance lease	5,914	5,914	50,821	–	62,649
Trade and other payables	1,348,791	–	–	–	1,348,791
	1,354,705	5,914	50,821	–	1,411,440

(d) Interest Rate Risk

The Group does not have any long-term borrowing or long term deposits, which would expose it to significant cash flow interest rate risk.

The Group currently does not engage in any hedging or derivative transactions to manage interest rate risk.

(e) Capital Management

The Group defines its Capital as total equity of the Group, being $7,019,989 as at 30 June 2018 (2017: $17,046,443). The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while financing the development of its projects through primarily equity based financing. The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Given the stage of development of the Group, the Board’s objective is to minimise debt and to raise funds as required through the issue of new shares.

The Group is not subject to externally imposed capital requirements.

There were no changes in the Group’s approach to capital management during the year. During the next 12 months, the Group will continue to explore project financing opportunities, primarily consisting of additional issues of equity.

(f) Fair Value

The Group uses various methods in estimating the fair value of a financial instrument. The methods comprise:

· Level 1 – the fair value is calculated using quoted prices in active markets.

· Level 2 – the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices).

· Level 3 – the fair value is estimated using inputs for the asset or liability that are not based on observable market data.

At 30 June 2018 and 30 June 2017, the carrying value of the Group’s financial assets and liabilities approximate their fair value.

23. CONTINGENT ASSETS AND LIABILITIES

(i) Contingent Assets

As at the date of this report, no contingent assets had been identified in relation to the 30 June 2018 financial year.

(ii) Contingent Liability

As at the date of this report, no contingent liabilities had been identified in relation to the 30 June 2018 financial year.

24. COMMITMENTS

Management have identified the following material commitments for the consolidated group as at 30 June 2018 and 30 June 2017:

	2018	2017
	$	$

Exploration commitments
Within one year	1,896,500	1,061,000
Later than one year but not later than five years	–	–
	1,896,500	1,061,000

25. EVENTS SUBSEQUENT TO BALANCE DATE

(ii) On 10 August 2018, the Company appointed Mr Clint McGhie as Company Secretary and Chief Financial Officer following the resignation of Mr Sam Cordin.

Other than as above, as at the date of this report there are no matters or circumstances which have arisen since 30 June 2018 that have significantly affected or may significantly affect:

· the operations, in financial years subsequent to 30 June 2018, of the Consolidated Entity;

· the results of those operations, in financial years subsequent to 30 June 2018, of the Consolidated Entity; or

· the state of affairs, in financial years subsequent to 30 June 2018, of the Consolidated Entity.

ASX ADDITIONAL INFORMATION

1. TWENTY LARGEST HOLDERS OF LISTED SECURITIES

The names of the twenty largest holders of listed securities as at 31 August 2018 are listed below:

Name	Number of Ordinary Shares	Percentage of Ordinary Shares
COMPUTERSHARE CLEARING PTY LTD	43,433,570	24.81
ARREDO PTY LTD	11,000,000	6.28
CITICORP NOMINEES PTY LIMITED	8,804,536	5.03
PERSHING AUSTRALIA NOMINEES PTY LTD	8,016,017	4.58
HOWITT MGMT PTY LTD	4,620,000	2.64
HOPETOUN CONSULTING PTY LTD	4,500,000	2.57
MR MARK STUART SAVAGE	3,600,000	2.06
AWJ FAMILY PTY LTD	3,020,000	1.73
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED	3,006,923	1.72
J P MORGAN NOMINEES AUSTRALIA LIMITED	2,720,100	1.55
AROIDA INVESTMENTS PTY LTD	2,439,636	1.39
MR NEIL DAVID IRVINE	2,307,493	1.32
AEGEAN CAPITAL PTY LTD	2,237,749	1.28
MR TERRY PATRICK COFFEY & HAWKES BAY NOMINEES LIMITED	2,230,064	1.27
BELL POTTER NOMINEES LTD	2,018,721	1.15
ROSEBERRY HOLDINGS PTY LTD	2,000,000	1.14
APOLLO GROUP PTY LTD	2,000,000	1.14
SUNSET CAPITAL MANAGEMENT PTY LTD	1,800,000	1.03
VYNBEN PTY LTD	1,725,498	0.99
D GRAY & CO PTY LTD	1,610,000	0.92
Total Top 20	113,090,307	64.60
Others	61,959,289	35.40
Total Ordinary Shares on Issue	175,049,596	100.00

2. DISTRIBUTION OF EQUITY SECURITIES

An analysis of numbers of holders of listed securities by size of holding as at 31 August 2018 is listed below:

	Ordinary Shares
Distribution	Number of Shareholders	Number of Ordinary Shares
1 – 1,000	1,101	300,105
1,001 – 5,000	399	1,031,382
5,001 – 10,000	157	1,222,564
10,001 – 100,000	326	13,141,101
More than 100,000	140	159,354,444
Totals	2,123	175,049,596

There were 1,135 holders of less than a marketable parcel of Ordinary Shares.

3. VOTING RIGHTS

See Note 13(b) of the Notes to the Financial Statements.

4. SUBSTANTIAL SHAREHOLDERS

Substantial holders who have notified the Company in accordance with section 671B of the Corporations Act 2001are as follows:

Distribution	Number of Ordinary Shares
Lombard Odier Asset Management (Europe) Limited	17,071,000
Arredo Pty Ltd	11,000,000

5. UNQUOTED SECURITIES

Performance Shares	Performance Shares Subject to Pre-Feasibility Study Milestone (Class A) expiring	Performance Shares Subject to Definitive Feasibility Study Milestone (Class B) expiring	Performance Shares Subject to Construction Milestone (Class C) expiring
Holder	31-Dec-18	31-Dec-19	12-Jun-20
JBJF Management Pty Ltd	1,700,000	2,550,000	3,400,000
Mr Aharon Arakel & Mrs Ida Arakel	1,650,000	2,475,000	3,300,000
Howitt MGMT Pty Ltd	1,540,000	2,310,000	3,080,000
Others (less than 20%)	110,000	165,000	220,000
Total	5,000,000	7,500,000	10,000,000
Total holders	4	4	4

Unlisted Options	Unlisted Options exercisable at $0.40	Unlisted Options exercisable at $0.50	Unlisted Options exercisable at $0.60	Unlisted Options exercisable at $0.40	Unlisted Options exercisable at $0.50	Unlisted Options exercisable at $0.60	Unlisted Options exercisable at $0.70
Holder	29-Apr-19	29-Apr-20	29-Apr-21	30-Jun-21	30-Jun-21	30-Jun-21	30-Jun-21
Hopetoun Consulting Pty Ltd	750,000	750,000	1,000,000	–	–	–	–
JJB Advisory Limited	–	–	–	250,000	350,000	500,000	–
Mr Sapan Ghai	–	–	–	–	100,000	150,000	250,000
Mr Hannes Huster	–	–	–	–	–	100,000	150,000
Others (less than 20%)	–	–	–	–	50,000	–	–
Total	750,000	750,000	1,000,000	250,000	500,000	750,000	400,000
Total holders	1	1	1	1	3	3	2

As at 31 August 2018, there are 5,400,000 Performance Rights issued under an employee incentive scheme.

6. ON-MARKET BUYBACK

There is currently no on-market buyback program for any of Salt Lake Potash Limited’s listed securities.

7. EXPLORATION INTERESTS

Summary of Exploration and Mining Tenements held as at 31 August 2018

Project	Status	License Number	Area (km²)	Interest (%)
Western Australia
Lake Wells	Granted	E38/2710	192.2	100%
	Granted	E38/2821	131.5	100%
	Granted	E38/2824	198.2	100%
	Granted	E38/3055	298.8	100%
	Granted	E38/3056	3.0	100%
	Granted	E38/3057	301.9	100%
	Granted	E38/3124	39.0	100%
	Granted	L38/262	113.0	100%
	Granted	L38/263	28.6	100%
	Granted	L38/264	32.6	100%
	Granted	E38/3247	350.3	100%
	Application	M38/1278	87.5	100%
Lake Way	Granted	E53/1878	217.0	100%
	Application	E53/1897	77.5	100%
Lake Ballard	Granted	E29/912	607.0	100%
	Granted	E29/913	73.2	100%
	Granted	E29/958	30.0	100%
	Granted	E29/1011	68.2	100%
	Granted	E29/1020	9.3	100%
	Granted	E29/1021	27.9	100%
	Granted	E29/1022	43.4	100%
Lake Marmion	Granted	E29/1000	167.4	100%
	Granted	E29/1001	204.6	100%
	Granted	E29/1002	186.0	100%
	Granted	E29/1005	68.2	100%
Lake Irwin	Granted	E37/1233	203.0	100%
	Granted	E39/1892	203.0	100%
	Granted	E38/3087	139.2	100%
	Granted	E37/1261	107.3	100%
	Granted	E38/3113	203.0	100%
	Granted	E39/1955	118.9	100%
	Granted	E37/1260	203.0	100%
	Granted	E39/1956	110.2	100%
Lake Minigwal	Granted	E39/1893	246.2	100%
	Granted	E39/1894	158.1	100%
	Granted	E39/1962	369.0	100%
	Granted	E39/1963	93.0	100%
	Granted	E39/1964	99.0	100%
	Granted	E39/1965	89.9	100%
Lake Noondie	Granted	E57/1062	217.0	100%
	Granted	E57/1063	217.0	100%
	Granted	E57/1064	55.8	100%
	Granted	E57/1065	120.9	100%
	Granted	E36/932	108.5	100%
Lake Barlee	Granted	E77/2441	173.6	100%
	Granted	E30/495	217.0	100%
	Granted	E30/496	217.0	100%
Lake Raeside	Granted	E37/1305	155.0	100%
Lake Austin	Application	E21/205	117.8	100%
	Application	E21/206	192.2	100%
	Application	E58/529	213.9	100%
	Application	E58/530	217.0	100%
	Application	E58/531	96.1	100%
Lake Moore	Application	E59/2340	217.0	100%
	Application	E59/2341	217.0	100%
	Application	E59/2342	217.0	100%
	Application	E59/2343	201.5	100%
	Application	E59/2344	217.0	100%
	Application	E70/5195	124.0	100%
Northern Territory
Lake Lewis	Granted	EL 29787	146.4	100%
	Granted	EL 29903	125.1	100%

8. MINERAL RESOURCES STATEMENT

Salt Lake’s Mineral Resource Statement as at 30 June 2018 is grouped by deposit, all of which form part of the Lake Wells SOP in Western Australia. To date, no Ore Reserves have been reported for these deposits. Subsequent to 30 June 2018, the Company reported a Mineral Resource Estimate for Lake Way. The Lake Way Mineral Resource does not form part of this statement.

Governance

The Company engages external consultants and Competent Persons (as determined pursuant to the JORC Code 2012) to prepare and estimate the Mineral Resources. Management and the Board review these estimates and underlying assumptions for reasonableness and accuracy. The results of the Mineral Resource estimates are then reported in accordance with the requirements of the JORC Code 2012 and other applicable rules (including ASX Listing Rules).

Where material changes occur during the year to the project, including the project’s size, title, exploration results or other technical information, previous resource estimates and market disclosures are reviewed for completeness.

The Company reviews its Mineral Resources as at 30 June each year. A revised Mineral Resource estimate will be prepared as part of the annual review process where a material change has occurred in the assumptions or data used in previously reported Mineral Resources. However, there are circumstances where this may not be possible (e.g. an ongoing drilling programme), in which case a revised Mineral Resource estimate will be prepared and reported as soon as practicable.

Results of Annual Review

In November 2015, the Company reported its maiden JORC Mineral Resource estimate for the Lake Wells Project, totalling 29 million tonnes (Mt) of Sulphate of Potash (SOP) with approximately 80% in the ‘Measured’ category with excellent brine chemistry of 4,009 mg/L Potassium (K), 19,175 mg/L (SO₄). The resource was calculated only on the upper 16 metres of the Lake, with mineralisation remaining open at depth across most of the Lake.

In February 2016, an expanded Mineral Resource Estimate (MRE) was calculated at Lake Wells totalling 80-85 million tonnes of SOP. This represents an additional 51-56 Mt of Inferred Resource calculated in the strata below the previously reported shallow Resource of 29 Mt.

During the year ended 30 June 2018, the Company continued exploration and development activities for Lake Wells including surface aquifer characterisation (test pits and trenches), deep aquifer exploration, long term pump testing, evaporation pond trials and process testwork.

In addition, in March 2018, the Company released an initial estimate of Exploration Targets for eight of the nine lakes comprising the GSLP. The ninth lake, Lake Wells (as discussed above) already has a Mineral Resource reported in accordance with the JORC code.

The total “stored” Exploration Target for the GSLP is 290Mt – 458Mt of contained SOP, with an average SOP grade of 4.4 – 7.1kg/m³ (including Lake Wells’ Mineral Resource of 80-85Mt). On a “drainable” basis the total Exploration Target ranges from 26Mt – 153Mt of SOP. The total playa area of the lakes is approximately 3,312km². The potential quantity and grade of this Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

As a result of the annual review of the Company’s Mineral Resources, there has been no change to the Mineral Resources reported for the Lake Wells Project in February 2016 as at 30 June 2018.

Total Mineral Resource Estimate

Classification	Geological Unit	Bulk Volume (Million m³)	Porosity	Brine Volume (Million m³)	Average SOP¹(K₂SO₄) Concentration (kg/m³)	K₂SO₄Tonnage (Mt)
Measured	Playa Lake Sediments	5,427	0.464	2,518	8.94	23
Indicated	Playa Lake Sediments	775	0.464	359	8.49	3
Inferred	Playa Lake Sediments (Islands)	1,204	0.464	558	5.34	3
Inferred	Paleovalley Sediment	10,600	0.40	4,240	9.07	38
Inferred	Fractured Siltstone Aquifer	6,717	0.22-.30	1,478 – 2,015	8.79	13-18

Competent Person Statement – Mineral Resource Statement

The information in this Mineral Resource Statement that relates to Mineral Resources is based on, and fairly represents, information compiled by Mr Ben Jeuken, a Competent Person, who is a member Australian Institute of Mining and Metallurgy. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr Jeuken has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.

Mr Jeuken has approved the Mineral Resource Statement as a whole and consents to its inclusion in the form and context in which it appears.

9. COMPETENT PERSONS STATEMENTS

The information in this report that relates to the Lake Way Mineral Resource is extracted from the report entitled ‘Scoping Study for Low Capex, High Margin Demonstration Plant at Lake Way’ dated 31 July 2018. This announcement is available to view on www.saltlakepotash.com.au. The information in the original ASX Announcement that related to Mineral Resources was based on, and fairly represents, information compiled by Mr Ben Jeuken, who is a member Australian Institute of Mining and Metallurgy and a member of the International Association of Hydrogeologists. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr Jeuken has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Salt Lake Potash Limited confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. Salt Lake Potash Limited confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

The information in this report that relates to the Lake Wells Mineral Resource is extracted from the reports entitled ‘Lake Wells Resource Increased by 193% to 85Mt of SOP’ dated 22 February 2016 and ‘Significant Maiden SOP Resource of 29Mt at Lake Wells’ dated 11 November 2015. These announcements are available to view on www.saltlakepotash.com.au. The information in the original ASX Announcements that related to Mineral Resources was based on, and fairly represents, information compiled by Mr Ben Jeuken, who is a member Australian Institute of Mining and Metallurgy and a member of the International Association of Hydrogeologists. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr Jeuken has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Salt Lake Potash Limited confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. Salt Lake Potash Limited confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

The information in this report that relates to Exploration Targets is extracted from the report entitled ‘Exploration Targets Reveal World Class Scale Potential’ dated 28 March 2018 The information in the original ASX Announcement that related to Exploration Targets or Mineral Resources is based on information compiled by Mr Ben Jeuken, who is a member Australian Institute of Mining and Metallurgy. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr Jeuken has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Jeuken consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

10. PRODUCTION TARGET

The Lake Way Demonstration Plant Production Target stated in this report is based on the Company’s Scoping Study as released to the ASX on 31 July 2018. The information in relation to the Production Target that the Company is required to include in a public report in accordance with ASX Listing Rule 5.16 and 5.17 was included in the Company’s ASX Announcement released on 31 July 2018. The Company confirms that the material assumptions underpinning the Production Target referenced in the 31 July 2018 release continue to apply and have not materially changed.

The Lake Wells Production Target stated in this report is based on the Company’s Scoping Study as released to the ASX on 29 August 2016. The information in relation to the Production Target that the Company is required to include in a public report in accordance with ASX Listing Rule 5.16 and 5.17 was included in the Company’s ASX Announcement released on 29 August 2016. The Company confirms that the material assumptions underpinning the Production Target referenced in the 29 August 2016 release continue to apply and have not materially changed.

11. FORWARD LOOKING STATEMENTS

This report contains ‘forward-looking information’ that is based on the Company’s expectations, estimates and projections as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to pre-feasibility and definitive feasibility studies, the Company’s business strategy, plans, development, objectives, performance, outlook, growth, cash flow, projections, targets and expectations, mineral reserves and resources, results of exploration and related expenses. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as ‘outlook’, ‘anticipate’, ‘project’, ‘target’, ‘potential’, ‘likely’, ‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘may’, ‘would’, ‘could’, ‘should’, ‘scheduled’, ‘will’, ‘plan’, ‘forecast’, ‘evolve’ and similar expressions. Persons reading this news release are cautioned that such statements are only predictions, and that the Company’s actual future results or performance may be materially different. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to the risk factors set out in Schedule 2 of the Company’s Notice of General Meeting and Explanatory Memorandum dated 8 May 2015.

The full version of the 2018 Annual Report is available on the Company’s website at www.saltlakepotash.com.au

Salt Lake Potash #SO4 – Scoping Study For Low Capex, High Margin Demonstration Plant At Lake Way

31st July 2018 / Leave a comment

Salt Lake Potash Limited (SO4) is pleased to announce that a Scoping Study on development of a 50,000tpa sulphate of potash (SOP) Demonstration Plant at Lake Way supports a low capex, highly profitable, staged development model, with total capital costs of approximately A$49m and average cash operating costs (FOB) of approximately A$387/t.

Cautionary Statement

The Scoping Study referred to in this announcement has been undertaken to determine the potential viability of a Demonstration Plant constructed at the Lake Way Project (Project) and to reach a decision to provide a basis for proceeding with more definitive studies. The Scoping Study has been prepared to an accuracy level of ±30%. The results should not be considered a profit forecast or production forecast.

The Scoping Study is a preliminary technical and economic study of the potential viability of the Lake Way Project. In accordance with the ASX Listing Rules, the Company advises it is based on low-level technical and economic assessments that are not sufficient to support the estimation of ore reserves. Further evaluation work including infill drilling and appropriate studies are required before Salt Lake Potash will be able to estimate any ore reserves or to provide any assurance of an economic development case.

100% of the total production target is in the Indicated and Measured resource category.

The Scoping Study is based on the material assumptions outlined elsewhere in this announcement. These include assumptions about the availability of funding. While Salt Lake Potash considers all the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Scoping Study will be achieved.

To achieve the range outcomes indicated in the Scoping Study, additional funding will likely be required. Investors should note that there is no certainty that Salt Lake Potash will be able to raise funding when needed. It is also possible that such funding may only be available on terms that dilute or otherwise affect the value of the Salt Lake Potash’s existing shares. It is also possible that Salt Lake Potash could pursue other ‘value realisation’ strategies such as sale, partial sale, or joint venture of the Project. If it does, this could materially reduce Salt Lake Potash’s proportionate ownership of the Project.

The Company has concluded it has a reasonable basis for providing the forward looking statements included in this announcement and believes that it has a reasonable basis to expect it will be able to fund the development of the Project. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Scoping Study.

SCOPING STUDY OUTCOMES

Capital Costs (-10% & +30%)
Total Capital Costs Including: – Temporary facilities – EPCM – Growth allowance (contingency)	A$49m A$0.4m A$4.8m A$6.3m
Average Total Cash Cost (FOB) (+/- 30%)
Average Total Cash Cost (FOB) Comprising: – Mine Gate Opex – Transport and handling – Royalties	A$387/t A$251/t A$96/t A$40/t
Forecast SOP Price:	A$667/t (US$500/t)
Study Manager:	Wood (formerly Amec Foster Wheeler)
Average Annual Production:	50,000 tonnes of SOP
Product Specifications:	Industry Standard Sulphate of Potash (K₂SO₄): K₂O: min. 52% SO₄: min.54% Cl: <1%
Mineral Resource:	The Demonstration Plant is 100% supported by an Indicated and Measured Mineral Resource (drainable) within the Blackham mining lease area totalling 0.5Mt (Stored Resource – 2Mt), a multiple of the resource required to support a 50,000tpa Demonstration Plant for 2-3 years.
Evaporation Pond Construction:	On-lake, unlined halite ponds On-lake, partially (wall) lined harvest ponds
Transport Route (export):	Quad road train haulage to Geraldton
Tenure:	The Demonstration Plant will initially be based on Mining Leases owned by Blackham Resources Limited, under the Memorandum of Understanding (MOU) described in the ASX Announcement dated 12 March 2018. Longer term and larger volume production will be based on SLP’s Lake Way exploration permits.
Timeline:	The Company’s objective is to produce initial harvest salts in mid-late 2019 for initial SOP production in early 2020, subject to permitting, weather and other parameters. There are potentially considerable time savings from utilising the super-saturated brines in the Williamson Pit at Lake Way and testwork continues to define these parameters.

DEVELOPMENT PROCESS

The Demonstration Plant is intended to validate the technical and commercial viability of brine SOP production from the Company’s Goldfields Salt Lakes Project (GSLP), providing the basis to build a world class, low cost, long life SOP operation across the 9 lakes in the GSLP.

The Company will pursue a fast track, staged approach to the development of a Demonstration Plant at Lake Way, taking advantage of the unique circumstances of the Williamson Pit to accelerate the development timeline, while also de-risking the project at each stage.

Pursuant to the MOU with Blackham Resources Ltd (Blackham), the Company will construct an initial pond system to dewater the Williamson Pit, which contains approximately 1.2GL of super-saturated brine, with a very high average SOP content of 25kg/m³. These Williamson Ponds will comprise approximately 1/3 of the total Demonstration Plant pond area, and early dewatering of the Williamson Pit offers a much shorter development time due to its very high grade and saturation.

SLP plans to construct the Williamson Ponds by the end of 2018, in parallel with completing a Feasibility Study for the Demonstration Plant, followed by initial kainite salt harvesting in mid-late 2019.

After the Feasibility Study, the Company anticipates completing the balance of the on-lake infrastructure – evaporation ponds and trenches – while the fabrication of the process plant is completed offsite. Stockpiled kainite harvest salt will be used for commissioning when the plant is installed, also on existing Mining Leases, with the Company planning for initial SOP production in early 2020, subject to weather, permitting and other factors.

LONGER TERM OUTLOOK

The excellent economic parameters support the development of a Demonstration Plant on the Blackham Mining Leases at Lake Way, which would likely be followed by expanded production onto SLP’s current Exploration Permits, covering most of the Lake and including the paleochannel identified by previous exploration.

Expansion of production beyond the Demonstration Plant would capture substantial economies of scale inherent in bulk transport, reduced royalties and spreading the fixed cost base, amongst other things.

The Company has previously estimated Exploration Targets for the whole of Lake Way ranging from 28-54Mt of SOP (stored) and 3-19Mt (drainable), indicating potential for the Lake to support a much larger SOP operation. [The potential quantity and grade of this Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource].

Following demonstration of the viability of SOP production in the GSLP the Company plans to expand production to the other lakes, which have broadly similar salt production potential and transport solutions in some cases superior to Lake Way. The company is investigating integrated production scenarios across a number of lakes, ranging from centralised processing of intermediate concentrates to centralised stockpiling, transport staging, packaging and logistics.

As production volumes increase, particularly to the lakes south of Lake Way, the optimal transport solution is likely to be based on bulk rail haulage from Leonora or Malcolm sidings, through Kalgoorlie to port. Transport and handling is the largest cost centre for SOP production, and there is substantial potential to capture economies of scale from this logistics solution.

The Company has been in discussion with a range of parties about potential financing structures for a Demonstration Plant on the GSLP, including debt, equity, off-take, royalty and joint venture structures. The Company is well funded to continue Feasibility Study work while these discussions continue.

The Company is in the process of drafting a formal agreement with Blackham, in accordance with the MOU. Both parties currently anticipate dewatering of the Williamson Pit in late 2018/early 2019.

CEO Matt Syme said “This Scoping Study confirms our expectations that a Demonstration Plant at Lake Way is the ideal model for starting development of the broader SOP project across our extensive salt lake portfolio. The advantages inherent in our location and the cost benefits associated with low cost trench extraction and on-lake ponds are apparent, and these advantages will increase significantly with scale. The low capex, excellent operating margins and ability to de-risk the Project through staged development also give us the opportunity to optimise the numerous financing alternatives before us. We are excited to be at the leading edge of a whole new industry in Australia and we are looking forward to developing the most sustainable and rewarding fertiliser project in the world.”

BACKGROUND

SLP is the owner of the Goldfields Salt Lakes Project (GSLP), which comprises nine large salt lakes in the Northern Goldfields Region of Western Australia.

The GSLP has a number of important, favourable characteristics:

Ø Very large paleochannel hosted brine aquifers, with chemistry amenable to evaporation of salts for SOP production, extractable from both low-cost trenches and deeper bores;

Ø Over 3,300km² of playa surface, with in-situ clays suitable for low cost on-lake pond construction;

Ø The total “stored” Exploration Target for the GSLP is 290Mt – 458Mt of contained Sulphate of Potash (SOP) with an average SOP grade of 4.4 – 7.1kg/m³ (including Lake Wells’ Mineral Resource of 80-85Mt). On a “drainable” basis the total Exploration Target ranges from 26Mt – 153Mt of SOP. [The potential quantity and grade of this Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource].

Ø Excellent evaporation conditions;

Ø Excellent access to transport, energy and other infrastructure in the Goldfields mining district;

Ø Lowest quartile capex and opex potential based on the Lake Wells Scoping Study;

Ø Clear opportunity to reduce transport costs by developing lakes closer to infrastructure and by capturing economies of scale;

Ø Multi-lake production offers operational flexibility, cost advantages and risk mitigation from localised weather events;

Ø The very high level of technical validation already undertaken at Lake Wells substantially applies to the other lakes in the GSLP; and

Ø Potential co-product revenues, particularly where transport costs are lowest.

The Company’s long term plan is to develop an integrated SOP operation of global scale producing high quality organic SOP from a number (or all) of the lakes within the GSLP, after confirming the technical and commercial elements of the Project through construction and operation of a Demonstration Plant producing up to 50,000tpa of SOP.

DEMONSTRATION PLANT

The Company believes the advantages of the Demonstration Plant approach are:

· Refinement of design and costing of engineering elements at Demonstration Plant scale should result in considerable time and cost savings at larger scale.

· Market acceptance of a new product in conservative agricultural markets is best achieved progressively and in conjunction with existing, established partner(s). It is important to establish SLP’s product(s) as premium, sustainable nutrients in the key long-term markets, and staged production increments are the best way to achieve this objective.

LAKE WAY

The Company’s recent Memorandum of Understanding with Blackham Resources Limited (see ASX Announcement dated 12 March 2018) offers the potential for an expedited path to development at Lake Way, possibly the best site for a 50,000tpa Demonstration Plant in Australia.

Lake Way has some compelling advantages which make it potentially an ideal site for an SOP operation, including:

· Substantial capital and operating savings potential from sharing overheads and infrastructure with the Wiluna Gold Mine. This includes the accommodation camp, flights, power, maintenance, infrastructure and other costs.

· The site has an excellent freight solution, located 2km from the Goldfields Highway, which is permitted for heavy haulage 4 trailer road trains to the railhead at Leonora or by road to Geraldton. It is also adjacent to the Goldfields Gas Pipeline.

· A Demonstration Plant would likely be built on Blackham’s existing Mining Licences.

· SLP would dewater the Williamson Pit, prior to Blackham mining, planned for early-mid 2019. The pit contains an estimated 1.2GL of brine at the exceptional grade of 25kg/m³ of SOP. This brine is potentially the ideal starter feed for evaporation ponds, having already evaporated from the normal Lake Way brine grade, which averages around 14kg/m³_.

· The high grade brines at Lake Way will result in lower capital and operating costs due to lower extraction and evaporation requirements.

· Historical exploration and initial sampling indicate the presence of clays in the upper levels of the lake which should be amenable to low cost, on-lake evaporation pond construction.

PROJECT OVERVIEW

The Demonstration Plant will produce up to 50,000tpa of high quality, standard SOP from hypersaline brine extracted from Lake Way via a system of shallow trenches.

The extracted brine will be transported to a series of solar evaporation ponds built on the Lake where selective evapo-concentration will precipitate potassium double salts in the final evaporation stage. These potassium-rich salts will be mechanically harvested and processed into SOP in a separation and crystallisation plant. The final product will then be transported for sale to the domestic and international markets.

The Company has previously tested and verified at Lake Wells all the major technical foundations for production of SOP from salt lake brine under actual site conditions and across all seasons. These technical achievements are broadly applicable across all the lakes in the GSLP and form part of the inputs into the Scoping Study.

The Study has established the indicative costs of the Demonstration Plant to +/- 30% accuracy for Operating Costs and -10%/+30% for Capital Expenditure.

MAJOR STUDY PARAMETERS

Table 1: Key Assumptions and Inputs
Maximum Study Accuracy Variation	+/- 30%
Annual Production (steady state)	50,000tpa
Proportion of Production Target – Measured & Indicated	100%

Mineral Resource (Blackham Mining Leases)
SOP Stored Resource (Indicated)	2Mt
SOP Drainable Resource (Indicated)	490,000t
Williamson Pit (Measured)	32,000t

Mining Method (Extraction)
Trenches – Average 5m deep	30km
Brine Delivery	595m³/h
Brine Chemistry (SOP Lake Brine only)	15kg/m³

Evaporation Ponds
Area	389ha
Halite Ponds (unlined)	308ha
Harvest Ponds (partially lined)	81ha
Recovery of Potassium from feed brine	63%
Recovery of Sulphate from feed brine	21%

Plant
Operating time (h/a)	7,950
Total Staffing	20

Operating Costs (±30%)
Minegate	A$251/t
Transport and Handling	A$96/t
Royalties ¹	A$40/t
Total Cash Costs (FOB)	A$387/t

Capital Costs (-10%/+30%)
Direct	A$37.3m
Indirect	A$5.2m
Growth Allowance	A$6.3m
Total Capital	A$48.9m
¹Royalties (State Government 2.5% and Other 4.5%)

* Operating costs do not include deprecation or sustaining capital. The Demonstration Plant is intended to operate for 2-3 years to validate the production model, and a successful Demonstration Plant will naturally then be intregrated into a larger production operation.

STUDY CONSULTANTS

The Scoping Study was managed by Wood (formerly Amec Foster Wheeler). Wood is a recognised leader in potash mining and processing with capabilities extending to detailed engineering, procurement and construction management. Wood also managed the Company’s Scoping Study for Lake Wells released in August 2016.

In addition to Wood, the Company engaged international brine-processing experts Carlos Perucca Processing Consulting Ltd (CPPC) and AD Infinitum Ltd (AD Infinitum) and their principals Mr Perucca and Mr Bravo, who are highly regarded experts in the potash industry. Mr Bravo previously worked as Process Manager Engineer at SQM, the third largest salt lake SOP producer globally. He specialises in the front end of brine processing from feed brine through to the crystallisation of harvest salts. Mr Perucca has over 25 years of experience in mineral process engineering and provided high-level expertise with respect to plant operations for the processing of harvest salts through to final SOP product. AD Infinitum and CPPC were responsible for the brine evaporation and salt processing components in the Scoping Study.

The Company engaged Bis Consulting (Bis) to provide an independent transport study on the logistics options for SOP from Lake Way. Bis is a leading provider of resources logistics in Australia, offering bulk logistics and materials handling.

Independent expert potash market forecasts and assessments were provided by CRU International Limited and Fertiliser Sales Development Ltd.

Area	Responsibility
Study Manager	Wood
Resource Estimation	Groundwater Science
Hydrogeology	SLP
Brine Extraction	SLP
Brine Evaporation	Ad-Infinitum/Knight Piésold
Geotechnical	Knight Piésold
Process Plant
– Design basis/criteria	CPPC/SLP
– Process plant design	Wood
Plant Infrastructure	Wood
Area Infrastructure	Wood/SLP
Product Transport and Logistics	Bis Consulting
Environmental and Heritage	Pendragon
Capex Estimate Compilation	Wood
Opex Estimate Compilation (mine-gate)	Wood
Economic Analysis	Wood
Recommendations	Wood/SLP

CAPITAL EXPENDITURE

The initial capital cost to develop from the Demonstration Plant has been estimated at A$43 million (before growth allowance). Capital expenditure was estimated at an accuracy of -10% to +30%.

Area	$Am
Brine Extraction	1.6
Evaporation	7.8
Process Plant	20.3
Plant Infrastructure	3.0
Area Infrastructure	0.1
Regional Infrastructure	2.6
Miscellaneous	1.9
Total Direct	37.3
Temporary Facilities	0.4
EPCM	4.8
Total Indirect	5.2
Total Bare	42.5
Growth Allowance	6.3
Total Initial Capital	48.9

* Errors due to rounding

The benefits of Lake Way’s location are evident in the low area and regional infrastructure costs. The availability of a wide flat playa area amenable in-situ clays offers the opportunity to construct low capex evaporation ponds on the Lake.

OPERATING COSTS

The operating cost estimates are based on an accuracy of ±30%.

Area	Cost per tonne ($A)
Labour	$ 57
Power	$ 24
Maintenance	$ 22
Reagents	$ 14
Consumables	$ 81
Miscellaneous	$ 32
General and Administration	$ 21
Total (Operating Costs per tonne) Mine Gate	$ 251
Transportation	$ 96
Total (Operating Costs per tonne)	$ 347
Royalties (2.5% State Government and 4.5% Others)	$ 40
Total Operating Cost per tonne	$ 387

* Errors due to rounding

PROJECT GEOLOGY AND RESOURCE

Geological Setting

The investigation area is in the Northern Goldfields Province on the Archaean Yilgarn Craton. The province is characterised by granite-greenstone rocks that exhibit a prominent northwest tectonic trend and low to medium-grade metamorphism. The Archaean rocks are intruded by east-west dolerite dykes of Proterozoic age, and in the eastern area there are small, flat-lying outliers of Proterozoic and Permian sedimentary rocks. The basement rocks are generally poorly exposed owing to low relief, extensive superficial cover, and widespread deep weathering.

A key feature of the Goldfields is the presence of paleochannel aquifers. Palaeochannels are former deep river valleys that eroded into the bedrock within the broad palaeodrainages the sedimentary sequence in the northern goldfields is approximately 130m thick comprising basal Eocene sand overlain by plastic clay, which is in turn concealed by the lakebed sediments and surface alluvial cover.

The stratigraphy of the lake and paleochannel system is described below

Lake Bed Sediments

The hydrogeology of Lake Way is that of a terminal groundwater sink. The large area of the playa and the shallow water table observed at all sites beneath the playa will facilitate evaporative loss. The brine potash resource extends the full depth of the lakebed sediments, with higher permeability noted at the weathered bedrock contact.

The Lake bed sediments are dominated by red-brown lacustrine clays. Logging and observation of the stratigraphy from the test pits indicated that multiple paleosurfaces are evident within the lake sediments, with characteristics very similar to the current lacustrine and fringing environments.

Moving east from the lake edge the sedimentary sequence consists of clean, evaporitic sands, beneath the surface sands there is evidence of vegetated type paleosurfaces. These surfaces are characterised by thin beds of dark brown to black (organic enriched) evaporitic sands overlying lacustrine clays with abundant remnant root channels.

Beneath these the sandy silty clays are firm to hard and notably competent.

The lakebed sediments in the vicinity of the Williamson pit are approximately 3 – 4m thick, they were initially dewatered prior to mining and have remained dry since. Test pits excavated within the dewatered zone had a water level 2.5mbgl after 24 hours.

Paleochannel Sediments

The paleochannel sediments are overlain by the brine rich Lacustrine sequence. The paleochannel sediments are dominated by dense grey and redbrown clays. These clays have a low permeability and are not considered a principal source of brine. At the base of the clays there is a high permeability basal sand aquifer.

Paleochannel Basal Sand Aquifer

Drilling conducted by AGC Woodward Clyde (1992)¹ on behalf of WMC Ltd in the early 1990’s located a Tertiary paleochannel beneath the eastern margins of the lakebed outside Blackham’s Mining Leases, the basal sands within the paleochannel were observed to be 20 – 40m thick. The hydrochemistry of the paleochannel water is high in Potassium, Magnesium sulphate and therefore represents a prospective exploration target and future source of brine, it is not included within the current resource estimate.

¹Woodward Clyde, 1992, Mt Keith Project Process Water Supply Study, Lake Way Area, Prepared for WMC Engineering Services Ltd.

Basement

The shallowness of sediments, particular to the west of the WIllaimson pit and the island, means that the weathered basement is at excavatable depths. Further to the east the lakebed sequence thickens to depth approaching 15 – 20m. Basement geology is complex with mafic, felsic and metasedimentary rocks existing in multiple, thin, NNW-SSE trending lineations along with an abundance of (often, recently activated) faults. Brine flows from basement contacts is highly variable but, in places, can be very rapid.

Williamson Pit

There is a significant brine resource within the Williamson Pit. The top of the brine sits approximately 30m below ground level (bgl). There is only minor evidence of inflow from above the standing brine level from either the bedrock or the lakebed sediments.

The annual sequence of seepage and rainfall followed by evaporation has, over the past 10 years since the pits closure, concentrated the salts to the point where they are almost twice the concentration than the brine contained within the lakebed sediments.

MINERAL RESOURCE

The Lake Way Mineral Resource (Blackham tenements only) was estimated by Groundwater Science Pty Ltd, an independent hydrogeological consultant with substantial salt lake brine expertise.

The Mineral Resource Estimate (MRE) underpinning the production target, classified as Indicated and Measured, was prepared by a Competent Person and is reported in accordance with the JORC Code (2012 Edition) in this announcement.

Total Mineral Resource Estimate

(Blackham tenements only)

Sediment Hosted Brine – Indicated (94%)

Playa Area	Lakebed Sediment Volume	Brine Concentration			Mineral Tonnage Calculated from Total Porosity			Mineral Tonnage Calculated from Drainable Porosity
		K	Mg	SO₄	Total Porosity	Brine Volume	SOP Tonnage	Drainable Porosity	Brine Volume	SOP Tonnage
(km²)	(Mm³)	(kg/m³)	(kg/m³)	(Kg/m³)		(Mm³)	(kt)		(Mm³)	(kt)
55.4	290	6.9	7.6	28.3	0.43	125	1,900	0.11	31.9	490

Williamson Pit Brine – Measured (6%)

Brine Volume (Mm³)

Potassium Conc. (kg/m³)

Magnesium Conc. (kg/m³)

Sulphate Conc.

(kg/m³)

SOP Tonnage (kt)

1.26

11.4

14.47

Table 3: Lake Way Project – Mineral Resource Estimate (JORC 2012)

Hydrology Summary

The Lake Way catchment as defined using Geoscience Australia’s 1 second DEM and MapInfo Discover Hydrology Package, the catchment area is 3,767 km².

A runoff model was developed for the Lake Way Catchment using the WaterCress software package. The model was constructed and calibrated to the adjacent and analogous Gascoyne River catchment, and then run using the catchment area defined for Lake Way and rainfall data from the Wiluna BOM station. Average calculated annual run-off is 3.9% of annual rainfall but is highly variable.

The morphology of the playa shape and surface is consistent with the classification system described by Bowler, (1986). The Northern part of the Playa exhibits morphology typical of significant surface water influence and periodic inundation (smooth playa edges, one island). The southern part of the playa exhibits morphology consistent with a groundwater dominated playa with rare inundation (irregular shoreline, numerous islands).

Exploration History

Significant historical exploration work has been completed in the Lake Way area focusing on nickel, gold and uranium. The Company has reviewed multiple publicly available documents including relevant information on the Lake Way’s hydrogeology and geology.

A review of the Department of Mines and Petroleum’s WAMEX database was undertaken. The database contains more than 6,200 mineral exploration drill holes across the Lake Way region, with about 1,000 drill holes within the Blackham Mining Lease area above.

Recent Exploration Activities

A comprehensive surface aquifer exploration program was completed on the Blackham Mining Leases, comprising a total of 36 shallow test pits and 2 test trenches. This work provides preliminary data for the geological and hydrological models of the surface aquifer of the Lake and was used in the establishment of the Mineral Resource for Lake Way’s surface aquifer.

Estimation and Modelling Techniques

Area

The lateral extent of the indicated resource is defined by the tenement boundary and the Playa edge. Within the tenement area there are two significant features that reduce the total area, namely the island in the central north of the tenement (3.2km²) and the Williamson pit and associated dewatered zone (4km²). The total area of the resource is 55.4 km². The resource is open to the east and south of the Blackham Resources tenements.

Thickness

The top of the indicated resource is defined by the water table. The average water table depth beneath the playa surface noted in the piezometers and test pits ranged 0.3 to 0.5m averaging 0.4m.

The base of the indicated resource is defined by the depth to the base of the lakebed sediments within the Blackham Mining Leases as determined from the test pits, piezometers, air core drilling and previous work. Test pits to the west terminated in weathered basement at around 3mbgl whilst some air core holes to the east didn’t encounter base of the lakebed sediments until 9mbgl. All air core holes and test pits terminated in saturated material.

The base of the lakebed sediments was interpolated from recent and historic drill hole information and the recent data using the Leapfrog software. The interpolation provided an average thickness of 5.3m.

Porosity

Total porosity (Pt) relates to the volume of brine filled pores contained within a unit volume of aquifer material. A fraction of this pore volume can by drained under gravity, this is described as the drainable porosity (or specific yield). The remaining fraction of the brine, which is held by surface tension and cannot be drained under gravity, is described as the un-drainable porosity (or specific retention). The resource estimate is reported for both total porosity and drainable porosity to assess the Lake Way resource.

Twenty four (24) samples were selected from push tube locations next to test pit locations and from test pit excavations and LYTR01 (Trench 1) across the playa. The push tube samples were analysed by E-Precision Laboratories in Perth and the remaining samples by Core Laboratories in Perth. Samples were selected on the basis of spatial variability across the playa and being representative of the lakebed stratigraphy. Eighteen (18) of the samples were also tested for drainable porosity (Specific Yield). The samples selected, and the results are shown in Table.

The results show a broad concentration into two layers with the upper layer 0 – 1.5m having a porosity in the region of 50% and the lower layer having a porosity of around 40%. Drainable porosity is generally lower towards the base of the lakebed sediments. This differentiation is consistent with the geology, the upper layer being more friable and sandy and the lower layers being more dense clay.

Test pit or Trench name	Depth	Total Porosity (%)	Drainable porosity (%)	Comments
LYTT024	0.45 – 0.9	50	n/a
LYTT021	0.6 – 1.1	50	n/a
LYTT020	0.5 – 1.0	54	n/a
LYTT017	0.6 – 1.1	50	n/a
LYTT019	0.6 – 1.1	48	n/a
LYTT014	0.3 – 0.8	52	n/a
LYTT026	0.3 – 0.6	39	10
LYTT019	0.3 – 0.6	26	16
LYTT019	1.5 – 2.0	47	13
LYTT019	3.0 – 4.0	35	8
LYTT014	0.3 – 0.6	46	11
LYTT015	1.5 – 2.0	41	5
LYTT026	3.0 – 4.0	47	24	Outlier
LYTT035	3.0 – 3.5	43	5
LYTT035	0 – 0.5	39	12
LYTT032	0 – 0.5	38	13.8
LYTT029	4.0 – 5.0	38	5.2	Northernmost zone, stiff compact clay content
LYTT029	1.0 – 4.0	47	3	Northernmost zone, clay dominant throughout
LYTT010	0.5 – 4.0	38	3	Potentially dewatered sediment
LYTT020	3.0 – 4.0	50	6	Low Sy value compared to total porosity
LYTR01	0.5 – 1.5	48	14.2
LYTR01	1 – 1.2	37	26	Clean Sand
LYTR01	1.5 – 3	48	1.5	Outlier
LYTR01	3 – 4	36	5

Table 4: Laboratory Derived Parameters – Total Porosity and Drainable Porosity

Long Term Test Pumping

Sustained pump tests on two test trenches provided reliable data for the preparation of a surface aquifer hydrogeological model for Lake Way.

The testing was conducted as a “constant head test” whereby flow rate was adjusted to maintain a constant trench water level. Drawdown was observed at nearby observation bores placed at distances of 10m, 20m and 50m from the trench.

Trench dimensions and pumping test results are presented in Table 5.

Average flow rates over the duration of testing ranged from 94 to 110m³/day. Higher flow rates are associated with evaporite deposits in the Playa Sediments.

These results are encouraging and continue to support the design of the SOP operation at Lake Way.

Hole Id	Depth	Trench Length	Test Duration	Total Volume Pumped	Average Pumping Rate
Hole Id	(m)	(m)	(days)	(m³)	(m³/day)
Trench 1	4.0	112	9.8	1,074	110
Trench 2	4.0	100	9.0	858	94

Table 5: Summary of Trench Test Pumping

Brine chemistry was consistent throughout the duration of the test.

Analysis of the data from trench pumping trials at test trenches LYTR01 and LYTR02 yields estimates of drainable porosity of 13% and 15% respectively. These values are consistent with literature values for clastic sediment and are consistent with estimates of playa sediment drainable porosity reported by other Salt Lake Brine evaluation studies.

Williamson Pit

The Measured Resource is calculated as the tonnage of minerals dissolved in the liquid brine contained within the Williamson Pit shell.

The potassium tonnage of the resource is then calculated as: Brine volume times average concentration = tonnage

The Williamson pit was mined during 2005 and 2006. At the end of mining a detailed survey was undertaken (2006) prior to the open cut operation being allowed to fill with water.

This data represents the most recent information available on the pit shell.

A drone survey of the pit in 2016 established that the water level was at RL1462 (Referenced to Blackham mine grid). Using this RL and the pit shell the volume was calculated in Surpac to be 1,150,495m³.

Brine Chemistry

Lake Way

All brine samples are considered to be composite samples representing the whole excavated or drilled depth at each location. Given that the proposed abstraction techniques will involve trenches excavated to at least 4m across a large portion of the playa the use of composite samples is representative of the resource that will be extracted.

Potassium

(kg/m³)

Chloride

(kg/m³)

Sodium

(kg/m³)

Calcium

(kg/m³)

Magnesium

(kg/m³)

Sulphate

SO₄
(kg/m³)

Average

6.8

125

0.518

7.7

Table 6: Lake Way Average Brine Chemistry

The spatial distribution of Potassium Concentration is quite consistent ranging from 5,910 to 8,760mg/L averaging 6,769mg/L.

Williamson Pit

A total of 9 brine samples were taken at different water levels in three locations in the Pit. Brine concentration was consistent laterally and vertically within the Pit and average of the nine (9) samples in estimating the Measured Resource is:

Potassium

(kg/m³)

Chloride

(kg/m³)

Sodium

(kg/m³)

Calcium

(kg/m³)

Magnesium

(kg/m³)

Sulphate

SO₄
(kg/m³)

Average

11.4

180

107

0.176

14.5

Table 7: Williamson Pit Average Brine Chemistry

Mining Factors or Assumptions

The measured resource will be pumped directly from the pit into a holding pond for processing. Mining of the indicated resource will be undertaken by gravity drainage of the brine by pumping from trenches.

Metallurgical Factors or Assumptions

No metallurgical factors or assumptions have been applied.

The brine is characterised by elevated concentration of potassium, magnesium and sulphate elements and distinctly low in calcium ion. Such a chemical makeup is considered highly favourable for efficient recovery of potassium double salts from the playa brines (the main feedstock for SOP fertiliser production), using conventional evaporation methods.

Environmental Factors or Assumptions

Environmental impacts are expected to be; localized reduction in saline groundwater level, surface disturbance associated with trench and pond construction and accumulation of salt tails. The project is in a remote area and these impacts are not expected to prevent project development.

The project is located with the Goldfields Groundwater Proclamation Area. A license to take groundwater will be required under the Rights in Water and Irrigation Act 1914. This act is administered by the Government of Western Australia, Department of Water and Environmental Regulation.

MINING AND SCHEDULING

Brine Extraction

Brine will be extracted from the Lake using a network of surface trenches. A trenching system comprising of 30 km of trenches up to 5m deep will be installed.

The trench system will feed the evaporation ponds at an average annual demand of 163 L/s. The trenches will be excavated at a nominal gradient, with a single transfer point into the halite pond system.

Brine Evaporation

The extracted brine is concentrated in a series of solar ponds to induce the sequential precipitation of salts and eventually producing potassium double salts in the harvest ponds. Evaporation modelling, pond sizing and design was completed by international experts, Ad Infinitum and CPPC.

Evaporation Ponds

The operational area of the evaporation ponds required for the final 50,000 t/a SOP production rate is 350ha.

A comprehensive geotechnical investigation by the Company and Knight Piesold confirmed the availability of in-situ clays ideal for on-lake evaporation pond construction.

On-lake harvest ponds have considerable environmental and commercial advantages, as any seepage from the ponds simply return to the brine pool in the Lake.

The Demonstration Plant Scoping Study considers low cost, un-lined ponds for the evaporation and crystallisation of halite (NaCl) and small quantities of other rejected salts such as gypsum (Ca.SO₄.2H₂O).

The kainite and carnallite harvest ponds will be partially lined, with a HDPE liner around the inside walls (berms). Knight Piésold’s modelling confirm that the high clay content and low soil permeability of the Lake Way playa sediments mean seepage of unlined evaporation ponds is very low.

Ongoing testwork will determine whether the harvest ponds can also be constructed without partial lining as indicated by preliminary modelling, which would result in further capital savings.

The pond systems will produce, on average 326Kt per annum of harvest salts, with an average Potassium (K) content of 8.76%. The Company has developed a high level of understanding of salt harvest parameters through computer simulations, laboratory evaporation trials and SLP’s unique experience in operating evaporation trials in the field at Lake Wells. The combination of this experience has been used to build and refine the mass balance model for the Demonstration Plant.

The harvest salts will be drained, windrowed and harvested using conventional equipment, a cost-effective and reliable harvesting method in Australia.

PROCESSING PLANT

Salts harvested form the evaporation ponds are then treated in a processing plant to first purify and then convert these salts into SOP, while minimising deportment of sodium chloride (the principal contaminant) to the product.

Key design parameters for the process plant are presented in Table 8, below.


Operating Time
Brine extraction; evaporation ponds and harvesting	8,200 h/a
Process plant	7,950 h/a
Feed Brine Composition
Potassium content	6.8 g/L
Sulphate content	26 g/L
Pond feed brine flow rate (for 50,000t/a case)	595m³/h @ 8,760 h/a
Overall potassium recovery	63%
Overall sulphate recovery	21%

Table 8: Process Plant Parameters

Overall potassium recoveries are lower in the Demonstration Plant as potassium reporting to the carnallite ponds is not processed at this scale. Carnallite salt will be stockpiled for Stage II processing.

The scale of the process plant is designed around the largest scale of standard road transportable modules that can be constructed off-site and transported to site, minimising site based construction costs. The majority of the process plant components are readily available, off the shelf items. There are several long lead-time items, such as the atmospheric draft tube baffle crystalliser, which will be sourced from international specialist vendors.

The Scoping Study anticipates production of 50,000tpa of high quality, organic standard SOP with the following specifications:

Potassium (K₂O)	Min. 52%
Sulphate (SO₄)	Min. 54%
Chloride (Cl)	< 1%

SLP’s research indicates that, once in production, organic certification for the product should be obtainable if desired.

Discussions with partners and end users around the optimal product preparation for the Demonstration Plant are ongoing, including the possibility of agglomerated or and compacted of a granular products.

WATER AND POWER

A raw water requirement of around 45m³/h is estimated, of which 7m³/h is treated in a reverse osmosis unit for potable and boiler feed water. A number of potential sources have been identified, as a consequence of the long exploration and mining history in the area, including from existing mining voids and known subterranean aquifers.

The operating power requirement for the plant is 0.8MW. There is substantial surplus capacity available from the Wiluna Gold Mine power station. The Company is also investigating stand-alone renewable energy alternatives.

TRANSPORT

The lakes of the GSLP are located close to the major regional transport and energy infrastructure corridors. Transport from site to port is the single largest cost for (export oriented) Australian salt lake SOP projects and the GSLP has a considerable advantage in this regard, with excellent proximity to the Kalgoorlie-Leonora rail line and the Goldfields Highway. The Company has made substantial progress in understanding and optimising its transport proposition, with major economies of scale to be achieved as the production volume increases.

The Lake Way development has been fast-tracked due to its significant infrastructure and transport advantages.

The Company engaged Bis Consulting to undertake a transport study for production from the Demonstration Plant. Bis is a leading provider of resources logistics in Australia, offering bulk logistics and materials handling processes.

Transport cost estimates were undertaken by Bis based on market data, industry databases, industry contacts and Bis’ existing knowledge of the Western Australian infrastructure market.

The outcome of the transport study provided a number of alternatives, however for Demonstration Plant production volumes, the most efficient route to international markets was via Geraldton port.

Total transport and handling costs have been estimated at $95/t of SOP product, packed in 2 tonne bags and loaded on flat bed trailers. The main road routes for Wiluna to Geraldton are currently permitted for quad road trains.

Geraldton Port is capable of handling fully loaded Panamax size vessels up to 70,000 tonnes and 225m in length. The Port handles approximately 19mt per annum of trade per year with significant excess capacity available for handling and storage.

At a slightly higher cost, a bimodal solution is available based on containerised product road hauled to Leonora and then by rail to Fremantle, Esperance or elsewhere from Kalgoorlie.

MINING INFRASTRUCTURE

Lake Way was identified due to its strategic location and significant infrastructure advantages. The Wiluna region is an historic mining precinct dating back to the late 19th century. It has been a prolific nickel and gold mining region and therefore has well developed, high quality infrastructure in place.

Lake Way has some compelling advantages which makes it an ideal site for an SOP operation, including the substantial capital and operating savings from sharing overheads and infrastructure with the Wiluna Gold Mine. This includes potentially the accommodation camp, flights, power, maintenance, infrastructure and other costs. There is also a large mining camp and sealed airstrip at the nearby Mount Keith Nickel Mine.

This proximity to existing infrastructure requires relatively minor area infrastructure upgrades and modifications for the Demonstration Plant development. The site has an excellent freight solution, located 2km from Goldfields Highway, which is permitted for heavy haulage 4 trailer road trains (refer to Transport section). It is also adjacent to the Goldfields Gas Pipeline.

PRODUCT QUALITY AND MARKETING

Fertilisers consist of essential plant nutrients that are applied to farmed crops in order to achieve favourable quality and yield. They replace the nutrients that crops remove from the soil, thereby sustaining the quality of crops, and are considered the most effective means for growers to increase yields.

The key components of agricultural fertilisers are nitrogen (ammonia and urea), phosphates (ammonium phosphates), and potassium (muriate of potash and sulphate of potash). In addition, sulphate has gained increased attention over the past several years due to soils becoming deficient in sulphur (the ‘fourth macronutrient’).

Global fertiliser demand is expected to increase significantly in the coming years due to the world population growth accompanied by decreasing arable land per capita, changes in diet and growth in income. These increases will provide an incentive for farmers to increase fertiliser use for improved yields and quality.

The most widely available source of potassium used by growers is Muriate of Potash (MOP or KCl), with around 65 million tonnes consumed annually. SOP is a speciality type of potassium fertilisers that is produced and consumed on a smaller scale.

MOP is widely used in all types of farming, however it can be detrimental to some plants, especially fruits and vegetables, due to its chloride content. SOP is primarily used as a source of potassium for crops intolerant to chloride. SOP is priced at a premium to MOP, due to supply constraints, high production costs and because of its ability to be used on chloride intolerant crops (such as fruits, vegetables, beans, nuts, potatoes, tea, tobacco and turf grass), which typically sell at sufficiently higher prices to absorb the premium cost.

SOP can be used in most applications where MOP is used and is preferred in many circumstances as it enhances yield and quality, shelf life and improves taste. SOP generally outperforms MOP in terms of crop quality and yield. SOP performs particularly well with crops that have a low tolerance to the chloride in MOP and in arid, saline and heavily cultivated soils. The low volume of SOP consumption relative to market demand is partly a result of the scarcity of reliable SOP supply.

SOP’s premium to the MOP price is correlated to the conversion costs from MOP to SOP (Mannheim Process) where MOP is used as an input in the process. The premium has been around 60% for the past decade. In recent years, this premium has expanded significantly, as decreases in the MOP price have not translated to similar declines in the price of SOP, indicating that the SOP market is supply constrained.

SOP can be sold as a standard powder or as a premium granular or soluble grade product. Granular and coarse SOP is generally priced at a premium. Salt Lake Potash plans to sell at a premium to the market price as a certified organic producer, similar to Compass Minerals. The primary production of SOP from salt lakes allows for organic certification.

The current spot price for SOP ranges from US$580-US$635 per tonne in the main North American markets, with different (and less visible) prices in other global markets.

The Company’s Fertiliser marketing consultant, Fertiliser Sales Development (FSD) has over 25 years experience in the sales, marketing and distribution of various fertiliser products. FSD expects the long-term price for SOP FOB ex-Western Australia to be at least US$500/t for standard grade.

The Company’s main initial target market is the Asia-Pacific and East-Asia, a region forecasting significant increases in the demand for SOP. SOP production is not easily substitutable and is in supply deficit, therefore the Company is confident in the current and forecasted levels of demand.

Off-take

In April 2018, SLP executed a Memorandum of Understanding (MOU) with Mitsubishi Australia Limited and Mitsubishi Corporation (Mitsubishi). The Offtake Agreement will provide Mitsubishi with sales and offtake rights for up to 50% of the SOP production from the Demonstration Plant, for distribution into Asia and Oceania and potentially other markets.

Discussions are ongoing with various parties for the balance of the Demonstration Plant production.

ENVIRONMENTAL & SOCIAL IMPACT ASSESSMENT

SLP’s consultants Pendragon Environmental under took a gap analysis to identify gaps in historical environmental knowledge, potential issues arising from the approval process, identify statutory approval requirements for the Demonstration Plant and provide a time frame for the environmental approvals.

As the proposed activities are to take place on active mining leases SLP has access to previous completed detailed environmental reports. The key findings for areas that required additional work:

· Native Terrestrial Flora and Fauna – Ground truthing of specific infrastructure prior to submission of mining proposal.

· Ground water – water balance and water quality requirements for plant operations.

· Surface water – drainage study to be incorporated in to final location of trenches and pond layout.

· Heritage – No registered Aboriginal sites were found within the impact area. Continuing engagement with the Aboriginal Community is required.

PERMITTING AND FISCAL REGIME

The Demonstration Plant will initially be based on Mining Leases held by Blackham Resources Limited, under the Memorandum of Understanding (MOU) described in the ASX Announcement dated 12 March 2018.

For supporting infrastructure or areas not included under Blackham’s ground, the Company will obtain Miscellaneous Licences.

The Company has agreed to extend the MOU timeline with Blackham Resources Ltd to 31 August 2018 as drafting of formal Spilt Commodity Agreement progresses.

The Company is also in ongoing discussions with the Native Title holders at Wiluna regarding an Exploration Agreement covering SLP’s exploration permits. We continue to work toward a mutually beneficial relationship with the Wiluna community.

Royalties

Potash has not been produced in Western Australia since 1950. The current royalty legislation does not include any specific rate for potash produced in WA. The ad valorem or value-based rate of royalty, which applies under the Mining Regulations 1981, is applied to a commodity based on the extent to which the commodity has been processed. As the SOP is sold in its final form (not subject to any further refinement or processing before sale to consumers) a royalty rate of 2.5% is expected.

Other royalties provided for in the Scoping Study estimates include to the holder of Blackham tenements.

PROJECT TIMING

The Company will pursue a staged approach to development of a Demonstration Plant at Lake Way, taking advantage of the unique circumstances of the Williamson Pit to accelerate the production timeline, while also de-risking the project at each stage.

Completion of the Scoping Study provides the basis to now proceed with a Feasibility Study, to be completed in late 2018 or early 2019.

In parallel, SLP and Blackham have applied for a permit to construct the Williamson Ponds, to allow dewatering of the Williamson Pit in time to meet Blackham’s mine plan. Both companies aim to complete the construction and dewatering by late 2018/early 2019, subject to permitting, weather and other constraints.

The Williamson Ponds comprise approximately one third of the total Demonstration Plant pond area and will provide the opportunity to resolve design and construction processes and costs to a very high standard for the Feasibility Study. In order to manage the chemistry of the Williamson brines, ancillary brine trenches will also be required, which will similarly provide a high standard of hydrogeological and construction data.

Williamson brines are the highest grade brine resource in Australia, containing approximately 25kg/m³ of SOP. They are also super-saturated with other salts, boasting an average Total Dissolved Salt content of approximately 30%. This means that the brines will precipitate halite and gypsum salts almost immediately they are pumped from the Pit.

This offers the opportunity to use the Williamson brines to lay down a salt base in the harvest ponds much more quickly than would normally be the case for less concentrated brines. A salt base is an important element of evaporation pond construction, providing a platform or pavement for harvest equipment, and can take many months to develop depending on requirements, brine chemistry and weather.

The very high grade of the Williamson brines also reduces the evaporation time required for precipitation of kainite harvest salts.

Construction of the Williamson ponds, dewatering of the Williamson Pit and the initial evaporation and salt precipitation, will provide a very high level of information and understanding of the parameters for brine extraction and evaporation in an Australian context, at a scale directly representative of the complete operation. For a very modest capital expenditure, this information will substantially reduce the perceived risk, and improve the financing parameters, for the balance of the project.

[Note that the capital expenditure estimated in the Scoping Study for the full Demonstration Plant evaporation pond system totals $7.8m, and the Williamson Ponds are one third of that area.]

Subject to permitting, performance, weather and other factors, the construction of the balance of the on-lake infrastructure – mainly the remaining ponds and brine trenches – will ideally follow on directly from completion of the Williamson Ponds and the Feasibility Study.

The Study estimates the extraction trench network capital expenditure is a further $1.6m, meaning the total capital expenditure for on-lake infrastructure is $9.4m, slightly less than 20% of the total capex. If the construction and operation of the Williamson Ponds validates the modelled performance of unlined harvest ponds, then the potential savings from not using partial HDPE liners, will significantly reduce capex for the balance of the pond system.

The longest lead time for the main plant components is 36 weeks, for the crystalliser, which will be fabricated off-shore. The Scoping Study estimates total fabrication and installation time for the process plant at approximately 9-12 months, meaning a decision taken at the anticipated time of completion of the Feasibility Study would result in plant commissioning in early 2020, utilising stockpiled kainite harvest salts.

The Company will continue to investigate opportunities to reduce the development schedule by early ordering of long-lead time items and modular delivery and installation of plant components, an option available for a small scale, skid mounted plant.

The Company’s anticipated delivery schedule is naturally provisional at this stage, subject to permitting, performance, financing, weather and other factors.

SENSITIVITY ANALYSIS

The Scoping Study was prepared at a ±30% accuracy to investigate the technical and economic parameters of a SOP production operation at Lake Way, exploiting the identified brine resources.

Key inputs into the economic assessment of the Project were based on the following sensitivities:

	Operating Cost Analysis Operating Cost (A$/t)
	-30%	20%	-10%	Base	+10%	+20%	+30%
Mine Gate	$176	$201	$226	$251	$276	$301	$326
Transportation & Handling	$67	$77	$86	$96	$106	$115	$125
Royalties	$28	$32	$36	$40	$44	$48	$52
Total	$271	$310	$348	$387	$426	$464	$503

	Capital Cost (A$m) *
	-10%	Base	+10%	+20%	+30%
Direct	A$33.6	A$37.3	A$41.0	A$44.8	A$48.5
Indirect	A$4.7	A$5.2	A$5.7	A$6.2	A$6.8
Growth Allowance	A$5.7	A$6.3	A$6.9	A$7.6	A$8.2
Total	A$43.9	A$48.8	A$53.7	A$58.6	A$63.4

Table 8: Sensitivity Analysis

SUMMARY OF MODIFYING FACTORS

The Modifying Factors included in the JORC Code have been assessed as part of the Scoping Study, including mining (brine extraction), processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and government factors. The Company has received advice from appropriate experts when assessing each Modifying Factor.

A summary assessment of each relevant Modifying Factor is provided below.

Mining (Brine Extraction) – refer to section entitled ‘Mining and Scheduling’ in the Announcement.

The Company engaged an independent hydrogeological consultant with substantial salt lake brine expertise, Groundwater Science Pty Ltd, to complete the Mineral Resource Estimate for the Lake Way project. The Principal Hydrogeologist of Groundwater Science, Mr Jeuken, has over 10 years of experience in groundwater resources assessment and management for mining. He has experience in salt lake brine potash evaluation, aquifer testing, wellfield planning and installation for mining, and the development of conceptual hydrogeological models

The hydrological model was produced by the Company in consultation with independent experts. The two methods of extraction outlined in the Announcement are common practice for brine extraction. These extraction methods are used by the three main current operations which include Great Salt Lake in the US, Lop Nur Salt Lake (Luobupo) and SQM in Chile.

Processing (including Metallurgical) – refer to sections entitled ‘Mining and Scheduling’ and ‘Processing Plant’ in the Announcement.

The Company engaged brine-processing experts Carlos Perucca Processing Consulting Ltd (CPPC) and AD Infinitum Ltd (AD Infinitum) and their principals Mr Perucca and Mr Bravo, who are highly regarded international experts in the potash industry. Mr Bravo previously worked as Process Manager Engineer at SQM, the third largest salt lake SOP producer globally. He specialises in the front end of brine processing from feed brine through to the crystallisation of harvest salts. Mr Perucca has over 25 years of experience in mineral process engineering and will provide high-level expertise with respect to plant operations for the processing of harvest salts through to final SOP product. AD Infinitum and CPPC were responsible for the brine evaporation and salt processing components in the Scoping Study.

Lake Way’s process development relied heavily on experience applied by Wood and specialist consultants (CPPC and Ad Infinitum) who are well experienced from working on similar operations. Production of SOP from lake brines is well understood and a well-established process.

Infrastructure – refer to section entitled ‘Mining Infrastructure’ in the Announcement.

Lake Way’s proximity to the West Australian goldfields means relatively minor area infrastructure upgrades and modifications are required.

The Scoping Study was managed by Wood. Wood is a recognised global leader in potash mining and processing with capabilities extending to detailed engineering, procurement and construction management. Wood are able to leverage an international network, including access to its Centre of Potash Excellence located in Saskatoon, Canada. All capital and operating costs were estimated by Wood.

Transport cost estimates were undertaken by Bis Consulting based on market data, industry databases, industry contacts and Bis’ existing knowledge of the Western Australian infrastructure market.

Marketing – refer to section entitled ‘Product Quality and Marketing’ in the Announcement.

Independent potash market forecasts and assessments were provided by experts FSD, Greenmarkets, CRU International.

FSD’s scoping level assessment of local and regional markets indicates that various markets around the world and particularly in the Asia-Pacific region would absorb the planned production output of the Demonstration Plant either to fill new demand or to substitute lower quality or higher cost supply.

Salt Lake has undertaken initial market discussions with local and international fertiliser industry participants, which have indicated substantive interest in a new and stable supplier of high quality organic SOP from an Australian salt lake project.

The execution of an initial non-binding MoU with Mitsubishi confirmed there is a reasonable expectation the Company will be able to execute off-take agreements with customers.

The current spot price for SOP is around US$625 (FOB Northwest America).

The Company’s target market is the Asia-Pacific, a region forecasting significant increases in the demand for SOP. SOP production is not easily substitutable and is in supply deficit, therefore the Company is confident in the current and forecasted levels of demand.

Salt Lake will continue to focus on developing marketing relationships and discussions with potential additional off-take and trade partners.

Economic – refer to sections entitled ‘Product Quality and Marketing’ in the Announcement.

A detailed financial model and discounted cash flow (DCF) analysis has been prepared in order to demonstrate the economic viability of the Project. The financial model and DCF were modelled with conservative inputs to provide management with a baseline valuation of the Project. Sensitivity analysis was performed on all key assumptions used. Key inputs and assumptions are outlined in Table 1 to allow analysts and investors to calculate Project valuations based on their own revenue assumptions.

The Company engaged the services of a funding and debt advisory firm, Argonaut. Argonaut is a financial advisory and investment banking firm which specialises in the metals, oil & gas and agri-business sectors. Argonaut is well regarded as a specialist capital markets service provider and have raised project development funding (including debt, equity, hybrid instruments and strategic capital/partners) for companies across a range of commodities including substantial experience in the industrial and speciality minerals sector. Following the assessment of a number of key criteria, Argonaut has confirmed in writing that, provided a definitive feasibility study arrives at a result not materially worse than the Scoping Study, the Company should be able to raise sufficient funding to develop the Project.

An assessment of various funding alternatives available to Salt Lake has been made based on precedent transactions that have occurred in the mining industry, including an assessment of alternatives available to companies that operate in industrial and specialty minerals sector. The assessment and advice from Argonaut (referred to above) indicates that financing for industrial mineral companies often involves a broader mix of funding sources than just traditional debt and equity, and the potential funding alternatives available to the Company including, but not limited to: royalty financing; mezzanine finance; prepaid off-take agreements; equity; joint venture participates; strategic partners/investors at project or company; senior secured debt/project finance; secondary secured debt; and equipment leasing. It is important to note that no funding arrangements have yet been put in place, as these discussions will usually commence upon completion of a Feasibility Study with results not worse than this Scoping Study. The composition of the funding arrangements ultimately put in place may also vary, so it is not possible at this stage to provide any further information about the composition of potential funding arrangement.

Since the acquisition of the Project in June 2015, the Company has completed comprehensive exploration programs across the GSLP, with the delineation of Mineral Resources at both Lake Wells and Lake Way, and the successful completion of positive Scoping Studies on Lake Wells and now for the Demonstration Plant for Lake Way. Over the last six months, the Company’s market capitalisation has ranged between A$75m and A$110m.

Salt Lake has a high quality Board and management team comprising highly respected resource executives with extensive finance, commercial and capital markets experience. The Company’s Chairman has previously raised over A$1 billion from capital markets for a number of exploration and development companies.

As a result, the Board has a high level of confidence that the Project will be able to secure funding in due course, having particular regard to:

– Required capital expenditure;

– Salt Lake Potash’s market capitalisation;

– Recent funding activities by Directors in respect of other resource projects;

– Recently completed funding agreements for similar or larger scale development projects;

– The range of potential funding options available;

– The favourable key metrics generated by the Project and GSLP; and

– Investor interest.

Environmental – refer to section entitled ‘Environmental & Social Impact Assessment’ in the Announcement.

An opportunities and constraints assessment was completed for the Project by Pendragon Environmental, a leading Western Australian environmental management consultancy. Based on the Project’s stage of development, Pendragon Environmental confirmed there are no current impediments on the Project.

To date, SO4 has only undertaken preliminary desktop studies for the purposes of identifying potential environmental opportunities and constraints. Extensive data is available across the Scoping Project area from work undertaken historically by Blackham Resources. The further development of the Project may require additional detailed flora, fauna and other studies; this is dependent on the final design criteria.

Social, Legal and Governmental – refer to section entitled ‘Permitting and Fiscal Regime’ in the Announcement.

The Company has taken legal advice in relation to relevant Modifying Factors.

Based on the legal advice received the Company considers there is presently no reason to believe that the development of the Demonstration Plant is not able to be developed, constructed and operated on Blackham Resources Limited’s current Mining Leases, subject to obtaining necessary regulatory approvals.

FORWARD LOOKING STATEMENTS

This announcement may include forward-looking statements. These forward-looking statements are based on Salt Lake’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Salt Lake, which could cause actual results to differ materially from such statements. Salt Lake makes no undertaking to subsequently update or revise the forward-looking statements made in this announcement, to reflect the circumstances or events after the date of that announcement.

COMPETENT PERSONS STATEMENTS

The information in this report that relates to Mineral Resources and Exploration Results for Lake Way is based on information compiled by Mr Ben Jeuken, who is a member Australian Institute of Mining and Metallurgy and a member of the International Association of Hydrogeologists. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr Jeuken has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Jeuken consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

APPENDIX 1 – LAKE WAY BRINE CHEMISTRY ANALYSIS

HOLE ID	East	North	K (mg/L)	Cl (mg/L)	Na (mg/L)	Ca (mg/L)	Mg (mg/L)	SO₄ (mg/L)	TDS (g/L)
HA016	234302	7035685	6,130	110,400	66,300	581	6,300	23,600	219
HA013	234890	7035481	6,070	108,500	65,900	623	6,070	24,000	216
HA031	233697	7037711	5,910	117,600	70,200	615	6,940	23,400	227
HA022	234734	7037719	6,550	111,400	68,500	636	6,050	23,600	217
HA017	234302	7035685	6,090	101,600	63,100	664	5,450	24,200	202
HA014	234458	7035223	6,050	104,250	63,900	666	5,620	23,700	206
HA010	235063	7034408	6,350	112,150	68,100	621	6,180	23,900	221
HA012	234299	7033837	6,550	115,700	68,600	574	6,690	25,300	228
HA008	234918	7033057	7,280	121,350	73,900	537	6,530	28,200	241
HA006	235652	7033571	6,910	128,050	78,600	528	7,000	25,500	249
HA003	235863	7032512	7,210	131,450	77,200	499	7,510	26,200	259
HA019	234752	7036712	6,030	113,600	67,600	591	7,010	25,700	225
HA029	231655	7036814	6,730	131,200	79,500	447	8,070	33,000	263
HA024	233715	7039225	6,100	130,850	75,000	536	8,650	25,300	253
HA031	233697	7037711	6,690	117,300	71,100	563	6,220	27,100	232
HA021	233742	7036709	5,960	110,250	65,000	610	6,150	23,300	216
HA002	236273	7032823	7,180	134,900	79,200	482	7,410	26,900	262
HA025	233868	7032968	6,810	126,800	76,500	519	7,160	26,300	248
LYTT002	229968	7036837	7,350	145,050	90,000	367	10,900	38,700	307
LYTT003	230702	7036399	8,160	151,150	91,400	305	12,200	42,600	324
LYTT004	231815	7035595	6,700	126,350	76,200	441	8,090	29,400	261
LYTT005	232341	7035793	6,760	122,700	74,500	553	7,100	25,100	248
LYTT006	232183	7035073	6,970	129,000	78,700	514	7,500	26,600	260
LYTT007	231817	7034412	6,600	130,400	78,100	484	8,010	28,900	266
LYTT012	233601	7037586	6,470	120,100	74,300	575	7,240	25,800	243
LYTT026	234600	7036800	7,060	125,450	77,700	519	7,030	26,200	250
LYTT025	234600	7035600	6,330	115,700	71,500	559	6,960	27,300	235
LYTT024	234600	7034800	6,240	113,400	70,100	581	6,850	26,300	229
LYTT021	234600	7034000	6,390	117,100	71,600	571	6,890	26,000	237
LYTT020	234600	7033200	6,840	124,050	74,900	549	7,020	26,100	249
LYTT016	234600	7032000	6,990	137,650	86,000	458	8,290	29,300	278
LYTT023	235300	7034800	6,510	123,700	72,000	556	6,790	25,100	238
LYTT019	236300	7033200	6,800	121,600	73,500	532	7,040	26,600	246
LYTT017	235300	7032400	7,150	129,450	80,300	498	7,400	27,200	260
LYTT022	235650	7034000	6,630	119,150	74,600	543	7,010	26,700	241
LYTT018	235300	7033200	7,270	128,050	78,500	492	7,340	28,800	261
LYTT013	234890	7035481	6,510	117,750	72,500	562	7,000	25,400	237
LYTT014	234458	7035223	6,840	123,700	76,000	586	7,020	26,100	248
LYTT015	233600	7033200	7,150	128,750	78,900	517	7,300	28,000	259
LYTT027	235511	7040910	7,080	133,850	83,300	390	9,930	37,800	282
LYTT028	237073	7040940	6,360	130,350	80,800	410	10,200	36,900	276
LYTT028	237073	7040940	7,210	145,150	87,000	358	11,600	37,800	304
LYTT030	230700	7041600	7,300	133,500	81,200	362	9,150	33,000	278
LYTT031	229531	7041686	8,760	147,100	89,700	347	11,300	41,100	314
LYTT032	229551	7040432	7,030	137,850	81,900	408	10,400	29,900	281

APPENDIX 2 – JORC TABLE ONE

Section 1: Sampling Techniques and Data

Criteria

JORC Code explanation

Commentary

Sampling techniques

Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

Aspects of the determination of mineralisation that are Material to the Public Report.

In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

Lake Way

Sampling involved the excavation of 36 test pits over the tenement area to a depth of 4mbgl or weathered basement whichever was encountered first. Two trenches were also dug to 4m depth, Trench 1 112m long in a north south orientation and Trench 2 100m long in an east west orientation.

A brine sample and duplicate were taken from each test pit and trench for analysis.

Samples were taken manually by initially rinsing out the bottle with brine from the pit or trench and then placing the bottle in the test pit or trench and allowing it to fill.

Samples were analysed for K, Mg, Ca, Na, Cl, SO4, HCO3, NO3, pH, TDS and specific gravity.

Each test pit was geologically logged and a sample taken each 1m depth.

Williamson Pit

Samples were taken manually at three locations along the pit lake and at three depths at each location giving a total of 9 sampling locations in total.

At each location a brine sample and duplicate were taken for analysis.

Samples were analysed for K, Mg, Ca, Na, Cl, HCO₃, SO₄ and NO₃

Drilling techniques

Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

Lake Way

No drilling was undertaken.

Test pits were dug with an excavator approximately 2m long x 1m wide x 4m deep.

Williamson Pit

No drilling was undertaken.

Drill sample recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Lake Way

Samples from the test pits were logged each bucket and a representative sample bagged.

100% of excavated sample was available for sampling. The ability to see the bulk sample facilitated the selection of a representative sample.

There is no relationship between sample recovery and grade and no loss of material as a result of excavation.

Williamson Pit

Not Applicable

Logging

Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

The total length and percentage of the relevant intersections logged.

Lake Way

The geological logging is sufficient for the purposes of identifying variations in sand/ clay and silt fraction within the top 4m. For a brine abstraction project, the key parameters are the hydraulic conductivity and storativity of the host rock, which will be determined during test pumping of the trenches.

The logging is qualitative.

The entire pit depth was logged in every case.

Williamson Pit

Not Applicable

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

Whether sample sizes are appropriate to the grain size of the material being sampled.

Lake Way

Not applicable

At all test pits brine samples were taken from the pit after 24hours or once the pit had filled with brine. The brine samples taken from the pits are bulk samples which is an appropriate approach given the long-term abstraction technique of using many kilometres of trenches to abstract brine from the upper 4m.

All the samples taken were incorporated into a rigorous QA / QC program in which Standards and Duplicates were taken. The samples were taken in sterile plastic bottles of 250ml capacity.

Excavated lake bed samples were sealed in plastic bags. For all brine samples (original or check samples) the samples were labelled with the alphanumeric code Y8001, Y80002 …

Lake bed samples were labelled with the test pit locator LYTT01, LYTT02 etc. and the depth from which they were taken.

Williamson Pit

All the samples taken were incorporated into a rigorous QA / QC program in which duplicates were taken. The samples were taken in sterile plastic bottles of 250ml capacity.

For all brine samples (original or check samples) the samples were labelled with the alphanumeric code Y8001, Y80002.

Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

Lake Way

The brine samples were sent to Bureau Veritas Laboratories in Perth, WA with the duplicates being held by SLP. Every 10th duplicate was sent to Intertek, an alternate laboratory for comparison purposes.

No laboratory analysis was undertaken with geophysical tools.

Soil samples and laboratory derived hydraulic conductivity, total porosity and drainable porosity samples were analysed by Core Laboratories in Perth WA. All laboratories used are NATA certified.

Williamson Pit

The brine samples were sent to Bureau Veritas Laboratories in Perth, WA a NATA registered laboratory with the duplicates being held by SLP.

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

The use of twinned holes.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

Discuss any adjustment to assay data.

Lake Way

Not applicable

All sampling and assaying is well documented and contained on SLP’s internal database

No adjustments have been made to assay data

Williamson Pit

Not applicable, no adjustments were made to the data

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

Specification of the grid system used.

Quality and adequacy of topographic control.

Lake Way

All coordinates were collected by handheld GPS.

The grid system is the Australian National Grid Zone MGA 51 (GDA 94)

There is no specific topographic control as the lake surface can essentially be considered flat.

Williamson Pit

The pit lake sampling locations were located with a GPS. Whilst the samples were taken from a boat in the lake, movement was limited as far as possible.

The depth from the pit lake surface to the ground surface was measured from calibrated drone survey footage

When the samples were being taken the depth to the base of the pit was also measured and recorded at each of the three sampling locations.

All coordinates were collected by handheld GPS.

The grid system is the Australian National Grid Zone MGA 51 (GDA 94)

The is no specific topographic control as the pit lake surface can essentially be considered flat.

Data spacing and distribution

Data spacing for reporting of Exploration Results.

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

Whether sample compositing has been applied.

Lake Way

The lake area contained within the Blackham tenement was calculated by digitising the lake surface and removing the area covered by the islands and the dewatered area of the Williamson pit, the approximate area is 55.4km². 36 test pits and 2 trenches were excavated over the BRT surface resulting in 1 excavation per 1.5Km². Which is a high density of investigation for a salt-lake and sufficient to establish variations in depth to basement, sedimentology and local hydraulic conductivity.

Sample compositing not applicable

Williamson Pit

The Williamson pit is orientated north south and is approximately 600m long, 100m wide with a calculated brine volume of 1,150,495m3. Nine samples were taken giving a sample density of 1 per 128,000/m3 given the limited size of the pit and no observed inflows the sample density was deemed appropriate for this resource.

Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

Lake Way

There are no structural or geological controls with respect to sampling the lake bed sediments. The variation in depth to basement does control the potential depth of future trench systems to the west of Williamson pit and the main island.

Geological influence on the brine is limited to the aquifer parameters of the host rock, namely the hydraulic conductivity, drainable porosity and storativity.

Williamson Pit

Not Applicable.

Sample security

The measures taken to ensure sample security.

SLP field geologists were responsible for taking the samples and transporting them to the BV lab.

The security measures for the material and type of sampling at hand was appropriate

Audits or reviews

The results of any audits or reviews of sampling techniques and data.

Data review is summarised in the report and included an assessment of the quality of assay data and laboratory tests and verification of sampling and assaying. No audits of sampling techniques and data have been undertaken.

Section 2: Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	On the 9^th March 2018 Salt Lake Potash Ltd. and Blackham Resources Ltd. signed a gold and brine minerals memorandum of understanding. Under this MOU Blackham has granted the brine rights on its Lake Way tenement free from encumbrances to SLP. The tenements referred to in the MOU are; Exploration licences E53/1288, E53/1862, E53/1905, E53/1952, Mining Licences, M53/121, M53/122, M53/123, M53/147, M53/253, M53/796, M53/797, M53/798, M53/910, and Prospecting Licences P53/1642, P53/1646, P53/1666, P53/1667, P53/1668. All tenure is granted to Blackham Resources Ltd.
Exploration done by other parties	Acknowledgment and appraisal of exploration by other parties.	There is a database of approximately 6200 boreholes across Lake Way of which some 1000 are within the Blackham tenement. The primary source for the information is the publicly available Western Australian Mineral Exploration (WAMEX) report data base. Recent sterilisation drilling has also been undertaken by Blackham resources to the south and east of the BRT area. The majority of previous work has been concerned with investigating the bedrock and calcrete for gold and Uranium, it is of limited value in defining the stratigraphy of the lakebed sediments. The data has been shown to be useful in the determination of the depth to base of lakebed sediments and has been used to develop an overall estimate of the volume of lake bed sediments that has been applied to the mineral resource calculations.
Geology	Deposit type, geological setting and style of mineralisation.	The deposit is a salt-lake brine deposit. The lake setting is typical of a Western Australian palaeovalley environment. Ancient hydrological systems have incised palaeovalleys into Archaean basement rocks, which were then infilled by Tertiary-aged sediments typically comprising a coarse-grained fluvial basal sand overlaid by palaeovalley clay with some coarser grained interbeds. The clay is overlaid by recent Cainozoic material including lacustrine sediment, calcrete, evaporite and aeolian deposits.
Drill hole Information	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	No drilling was undertaken. 36 test pits and 2 trenches were excavated on the lake surface. All test pit and trench details and locations of all data points are presented in the report.
Data aggregation methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated.	Within the salt-lake extent no low-grade cut-off or high-grade capping has been implemented due to the consistent nature of the brine assay data. Test pit and trench data aggregation comprised calculation of a hydraulic conductivity for the whole sequence using the Hvorslev (1951) recovery analysis technique.
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).	The chemical analysis from each of the test pits has shown the that the brine resource is consistent and continuous through the full thickness of the Lake Playa sediments unit. The unit is flat lying all test pits were excavated into the lake sediments to a depth of 4m or basement, the intersected depth is equivalent to the vertical depth and the thickness of mineralisation.
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Addressed in the announcement.
Balanced reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	All results have been included.
Other substantive exploration data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	All material exploration data has been reported.
Further work	The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	Further trench testing and numerical hydrogeological modelling to be completed that incorporates the results of the test pumping. The model will be the basis of the annual brine abstraction rate and mine life.

Section 3: Estimation and Reporting of Mineral Resources (Williamson Pit and Lake Way)

Criteria	JORC Code explanation	Commentary
Database integrity	Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes. Data validation procedures used.	Cross-check of laboratory assay reports and database. Extensive QA/QC as described in Section 3 Sampling Techniques and Data
Site visits	Comment on any site visits undertaken by the Competent Person and the outcome of those visits. If no site visits have been undertaken indicate why this is the cases.	A site visit was undertaken by the Competent Person (CP) from 29th to 30th April 2018. The CP visit was documented in Letter Report SLP-18-1-L001 (Groundwater Science, 2018).
Geological interpretation	Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit. Nature of the data used and of any assumptions made. The effect, if any, of alternative interpretations on Mineral Resource estimation. The use of geology in guiding and controlling Mineral Resource estimation. The factors affecting continuity both of grade and geology.	The shallow geological profile beneath the lake is relatively homogenous. The porosity of the material is consistent with depth; hence the geological interpretation has little impact on the resource except to define its thickness. The island is excluded from the resource estimate as access is not permitted. Mining the Williamson Pit has resulted in an area of approximately 4km² being dewatered, this areas has also been excluded from the resource estimate.
Dimensions	The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.	The resource extends beneath 55.4km² of the Blackham Resources Tenements on Lake Way. The top of the resource is defined by the water table surface; on average 0.3m below ground surface. The average thickness of the resource is 5.3m as determined from the leapfrog model. The Williamson Pit volume has been estimated as 1.26million m³.
Estimation and modelling techniques	The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used. The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data. The assumptions made regarding recovery of by-products. Estimation of deleterious elements or other non-grade variables of economic significance (eg sulphur for acid mine drainage characterisation). In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed. Any assumptions behind modelling of selective mining units. Any assumptions about correlation between variables. Description of how the geological interpretation was used to control the resource estimates. Discussion of basis for using or not using grade cutting or capping. The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.	Brine concentration was interpolated using both Ordinary kriging and Voronoi polygons The thickness of the lakebed sediments was developed using the Leapfrog software package and an inverse distance weighted calculation applied to the WAMEX boreholes database covering Lake Way. Average test pit spacing was 500m. No check estimates were available No recovery of by-products was considered Deleterious elements were not considered Selective mining units were not modelled. Correlation between variables was not assumed. The geological interpretation from the WAMEX database was used to inform the Leapfrog model which was used to define the thickness of the orebody. Grade cutting or capping was not employed due to the homogenous nature of the orebody.
Moisture	Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.	Not applicable to brine resources. See discussion of moisture content under Bulk Density
Cut-off parameters	The basis of the adopted cut-off grade(s) or quality parameters applied.	No cut-off parameters were used
Mining factors or assumptions	Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.	Mining will be undertaken by gravity drainage of brine from trenches. Test pumping of two trenches was undertaken to obtain preliminary aquifer characteristics.
Metallurgical factors or assumptions	The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.	The brine is characterised by elevated concentration of potassium, magnesium and sulphate elements and distinctly deficient in calcium ions. Such a chemical makeup is considered highly favorable for efficient recovery of Schoenite from the lake brines (the main feedstock for Sulphate of Potash production), using conventional evaporation methods
Environmen-tal factors or assumptions	Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.	Environmental impacts are expected to be; localized reduction in saline groundwater level, surface disturbance associated with trench and pond construction and accumulation of salt tails. The project is in a remote area and these impacts are not expected to prevent project development.
Bulk density	Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples. The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit. Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.	Bulk density is not relevant to brine resource estimation. Volumetric moisture content or volumetric porosity was measured based on determination of 19 samples (average sample spacing 1.5m) to yield an average value of 43% v/v.
Classification	The basis for the classification of the Mineral Resources into varying confidence categories. Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data). Whether the result appropriately reflects the Competent Person’s view of the deposit.	The data is considered sufficient to assign a measured resource classification to brine within the Williamson Pit shell. The data is considered sufficient to assign an indicated resource classification to brine within the lakebed sediments within the Blackham Resources tenements excluding the Williamson Pit dewatered area and the area of the island. The result reflects the view of the Competent Person
Audits or reviews	The results of any audits or reviews of Mineral Resource estimates.	No audit or reviews were undertaken.
Discussion of relative accuracy/ confidence	Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate. The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.	It is expected that all the Williamson Pit brine will be extracted. For the lakebed sediments the estimated tonnage represents the in-situ brine with no recovery factor applied. It will not be possible to extract all of the contained brine by pumping from trenches. The amount which can be extracted depends on many factors including the permeability of the sediments, the drainable porosity, and the recharge dynamics of the aquifers. No production data are available for comparison

For further information please visit www.saltlakepotash.com.au or contact:

Matt Syme/Sam Cordin	Salt Lake Potash Limited	Tel: +61 8 9322 6322
Jo Battershill	Salt Lake Potash Limited	Tel: +44 (0) 20 7478 3900
Colin Aaronson/Richard Tonthat	Grant Thornton UK LLP (Nominated Adviser)	Tel: +44 (0) 20 7383 5100
Derrick Lee/Beth McKiernan	Cenkos Securities plc (Joint Broker)	Tel: +44 (0) 131 220 6939
Jerry Keen/Toby Gibbs	Shore Capital (Joint broker)	Tel: +44 (0) 20 7468 7967

Salt Lake Potash #SO4 June 2018 Quarterly Report

30th July 2018 / Leave a comment

The Board of Salt Lake Potash Limited (the Company or SLP) is pleased to present its Quarterly Report for the period ending 30 June 2018.

The Company’s primary focus is progressing the development of a Demonstration Plant at the Goldfields Salt Lakes Project (GSLP), intended to be the first salt-lake brine Sulphate of Potash (SOP) production operation in Australia.

Highlights for the quarter and subsequently include:

LAKE WAY

Demonstration Plant Scoping Study

Ø The Company and its consultants have substantially advanced the Scoping Study for a 50,000tpa Demonstration Plant at Lake Way, with completion expected shortly.

Process Testwork

Ø A range of process development testwork is continuing, including process pathway modelling by international experts and a bulk sample evaporation trial processing both Lake Way representative brine and Williamson Pit brine.

Geotechnical Investigations

Ø An initial geological and geotechnical investigation by the Company and Knight Piesold confirmed the availability of in-situ clays amenable for on-lake evaporation pond construction.

LAKE WELLS

Process Testwork

Ø The Company completed pilot scale crystalliser validation testwork at a leading crystalliser vendor in the United States, processing approximately 400 kg of crystalliser feed salt (schoenite concentrate), produced from previous Lake Wells development work at Saskatchewan Research Council (SRC). The testwork successfully produced high quality SOP crystals, representative of a full scale plant product.

LAKE BALLARD

Ø The Company’s Section 18 application over the Lake Ballard and Lake Marmion projects was granted, and the Company mobilised an amphibious excavator to complete the surface aquifer exploration program.

LAKE IRWIN

Ø A surface aquifer exploration program was completed at Lake Irwin, comprising of 56 shallow test pits and 5 test trenches. This work provides preliminary data for the geological and hydrological models of the surface aquifer of the Lake, as well as brine, geological and geotechnical samples.

The Goldfields Salt Lakes Project

The Company’s long term plan is to develop an integrated SOP operation, producing from a number (or all) of the lakes within the GSLP, after confirming the technical and commercial elements of the Project through construction and operation of a Demonstration Plant producing up to 50,000tpa of SOP.

The GSLP has a number of important, favourable characteristics:

Ø Very large paleochannel hosted brine aquifers, with chemistry amenable to evaporation of salts for SOP production, extractable from both low cost trenches and deeper bores;

Ø Over 3,300km² of playa surface, with in-situ clays suitable for low cost on-lake pond construction;

Ø Excellent evaporation conditions;

Ø Excellent access to transport, energy and other infrastructure in the major Goldfields mining district;

Ø Lowest quartile capex and opex potential based on the Lake Wells Scoping Study;

Ø Clear opportunity to reduce transport costs by developing lakes closer to infrastructure and by capturing economies of scale;

Ø Multi-lake production offers operational flexibility and protection from localised weather events;

Ø The very high level of technical validation already undertaken at Lake Wells substantially applies to the other lakes in the GSLP; and

Ø Potential co-product revenues, particularly where transport costs are lowest.

Salt Lake Potash will progressively explore the lakes in the GSLP with a view to estimating resources for each Lake, in parallel with the development of the Demonstration Plant. Exploration of the lakes will be prioritised based on likely transport costs, scale, permitting pathway and brine chemistry.

The Company’s recent Memorandum of Understanding with Blackham Resources Limited (see Announcement dated 12 March 2018) offers the potential for an expedited path to development at Lake Way, possibly the best site for a 50,000tpa Demonstration Plant in Australia.

The Company and its consultants have substantially advanced the Lake Way Project Scoping Study, with completion expected in the coming weeks.

LAKE WAY

Lake Way is located in the Goldfields region of Western Australia, less than 15km south of Wiluna. The surface area of the Lake is over 270km².

SLP holds two Exploration Licences (one granted and one under application) covering most of the Lake, including the paleochannel defined by previous exploration. The Northern end of the Lake is largely covered by a number of Mining Leases (MLs), held by Blackham Resources Limited, the owner of the Wiluna Gold Mine.

The Wiluna region is an historic mining precinct dating back to the late 19th century. It has been a prolific nickel and gold mining region and therefore has well developed, high quality infrastructure in place.

SLP’s MOU with Blackham provides the basis to investigate the development of an SOP operation on Blackham’s existing Mining Leases at Lake Way, including initially a 50,000tpa Demonstration Plant.

Lake Way has some compelling advantages which make it potentially an ideal site for an SOP operation, including:

Ø Substantial likely capital and operating savings from sharing overheads and infrastructure with the Wiluna Gold Mine, including the accommodation camp, flights, power, maintenance, infrastructure and other costs.

Ø The site has excellent potential freight solutions, adjacent to the Goldfields Highway, which is permitted for heavy haulage, 4 trailer road trains to the railhead at Leonora, or via other heavy haulage roads to Geraldton Port.

Ø A Demonstration Plant would likely be built on Blackham’s existing Mining Licences.

Ø SLP would dewater the existing Williamson Pit on Lake Way, prior to Blackham mining, planned for early 2019. The pit contains an estimated 1.2GL of brine at the exceptional grade of 25kg/m³ of SOP. This brine is potentially the ideal starter feed for evaporation ponds, having already evaporated from the normal Lake Way brine grade, which averages over 14kg/m³_.

Ø The high grade brines at Lake Way will result in lower capital and operating costs due to lower extraction and evaporation requirements.

Ø There would be substantial savings to both parties from co-operating on exploration activities on each other’s ground.

Ø The presence of clays in the upper levels of the lake which should be amenable to low cost, on-lake evaporation pond construction.

Geological Interpretation

Significant historical exploration work has been undertaken in the Lake Way area focusing on nickel, gold and uranium. The Company has reviewed multiple publicly available documents including relevant information on the Lake Way’s hydrogeology and geology.

The Department of Mines and Petroleum’s WAMEX database. The database contains more than 6,200 mineral exploration drill holes across the Lake Way area, about 1,000 of which are on the Blackham area.

Groundwater exploration was undertaken at Lake Way in the early 1990s by AGC Woodward Clyde to locate and secure a process water supply for WMC Resources Limited’s Mt Keith nickel operation. There was a wide and extensive program of exploration over 40km of paleodrainage that focused on both the shallow alluvium and deeper paleochannel aquifers.

The comprehensive drilling program comprised 64 air-core drill holes totalling 4,336m and five test production bores (two of which were within SLP’s exploration licences). The aquifers identified were a deep paleochannel sand unit encountered down the length of the Lake Way investigation area and a shallow mixed alluvial aquifer from surface to a depth of approximately 30m.

Geology

The Lake Way drainage is incised into the Archean basement and now in-filled with a mixed sedimentary sequence, the paleochannel sands occurring only in the deepest portion. The mixed sediments include sand, silts and clays of lacustrine, aeolin, fluvial and colluvial depositional origins. The surficial deposits also include chemical sediments comprising calcrete, silcrete and ferricrete. These sediments provide a potential reservoir for large quantities of groundwater.

The deep paleochannel sand aquifer is confined beneath plasticine clay up to 70m thick. The sand comprises medium to coarse grained quartz grains with little clay – it is approximately 30m thick and from 400m to 900m in width.

Hydrogeology

The shallow aquifer comprises a mixture of alluvium, colluvium and lake sediments extending beyond the lake playa and continuing downstream. Five test production bores were developed by AGC Woodward Clyde, of which two are within SLP’s tenements. Constant Rate Tests (CRT) bore yields ranged from 520 kL/day up to 840 kL/day in permeable coarse-grained sand.

Mineral Resource

The Scoping Study will include the estimate of an initial Mineral Resource on Blackham’s MLs, to support the Demonstration Plant’s brine extraction model. The work includes the collation of extensive historical geological and hydrogeological data.

Process Testwork

The Company has continued a range of process development testwork to provide and validate inputs to the Lake Way Scoping Study production model. The testwork incorporates brines from the Lake itself, as well as the super-concentrated brines from the Williamson Pit.

Initial brine evaporation modelling, conducted by international solar pond experts, Ad Infinitum, indicates the salts produced at Lake Way will be comparable to those produced at Lake Wells and therefore suitable for conversion into SOP.

International laboratory and testing company, Bureau Veritas (BV), has completed a series of laboratory-scale brine evaporation trials at their Perth facility, under simulated average Lake Way climate conditions. The aim of the BV trials is to monitor the chemical composition of the brine and salts produced through the evaporation process to confirm:

· Concentration thresholds in the brine chemistry which can be used to maximise the recovery of potassium in the harvest salts and minimise the quantity of dilutive salts fed to a process plant;

· The quantity and composition of harvest salts which will form the plant feed in commercial production; and

· The potential for any internal evaporation pond recycle streams that may improve harvest salt recovery.

The laboratory testwork confirmed the modelled brine evaporation pathways. The Williamson pit brine follows a similar evaporation pathway to Lake Way lake brine with similar brine chemistry and salts produced.

The strongly correlated evaporation pathway of the Williamson Pit brine and the Lake Way brine provides an advantage incorporating the Williamson Pit brine into a long-term development model.

LAKE WELLS

Process Testwork

The Company continues a range of process development testwork to enhance the Lake Wells process model.

A large scale, continuous Site Evaporation Trial (SET) at Lake Wells was successfully completed over 18 months of operation under site conditions and through all seasons.

The results of the SET are Australian first and have provided significant knowledge to the Company on the salt crystallisation pathway under site conditions in Australia.

The Company has used the harvest salts produced by the SET to perform comprehensive process development testwork at Saskatchewan Research Council (SRC). Most recently, SRC completed locked cycle testwork utilising 1,000kg of harvest salts from Lake Wells SET to produce 400kg of flotation concentrate. Approximately 350kg of the flotation concentrate (crystalliser feed salt) was provided to a globally recognized crystalliser vendor for crystalliser equipment and design testwork.

	Mass (kg)	K (%)	SO4 (%)	Mg (%)	Cl (%)	Na (ppm)	H₂0 (%)
Crystalliser Feed Salt	356.1	19.3	49.8	6.12	0.34	0.19	24.2

Table 1: Crystalliser Feed Salts

Solubility software modelling was performed to confirm the crystalliser process conditions and expected outcomes prior to any testwork being performed. The testwork consisted of two main phases; an initial glassware test to validate the conditions and a subsequent small scale pilot test to produce a larger product sample.

In both tests parameters such as temperature, slurry composition and brine chemistry were monitored to validate the modelled process.

The glassware and continuous pilot crystalliser tests have confirmed the production of high quality potassium sulphate via the crystallisation process.

	K (%)	K₂SO₄ (%) equivalent)	Mg (%)	Cl (ppm)	Na (ppm)
Pilot Crystalliser test results	44.5	99%	< 0.25	< 100	< 300

Table 2: Continuous Pilot Crystalliser

LAKE BALLARD

The Company mobilised an amphibious excavator on the Lake to complete a surface aquifer exploration program. The Company received confirmation from the Minister for Finance, Energy and Aboriginal Affairs that the Company’s Section 18 application over the Lake Ballard and Lake Marmion projects had been granted.

The objective of the program is to gather geological and hydrological data about the shallow brine aquifer hosted by the Quaternary Alluvium stratigraphic sequence in the upper levels of the Lake. The program is to evaluate the geology of the shallow Lake Bed Sediments, and to undertake pumping trials to provide estimates of the potential brine yield from trenches in the shallow sediment. The excavator program will also provide important geological and geotechnical information for potential construction of trenches and on-lake brine evaporation ponds.

LAKE IRWIN

Surface Aquifer Exploration Program

Following the initial trench development in 2017, the Company returned to Lake Irwin with the amphibious excavator to undertake a program of test pits and additional trench excavation.

The completed program included 56 test pits and 5 trenches across the lake surface covering both the northern and southern lobes, to provide geological information. Twelve of these pits were slug tested to obtain bulk hydraulic conductivity parameters for the lakebed sediments. The Company plans to run long-term pump tests across the Lake to determine hydraulic conductivity and specific yield.

Geological Interpretation

Lake Irwin (LI) is made up of two distinct areas, Lake Irwin North and South, linked by a very narrow channel. The geology of lake Irwin south comprises a variable thickness of evaporitic (gypsum) sand overlying lacustrine clays to maximum excavation depth.

Based on work completed to date, the thickness of the evaporitic sand layer tended to be greatest in open lake areas and around the margins of islands. Thick evaporitic beds in open lake areas extend from surface to well below the static brine level. The underlying clay is generally red-brown in colour and relatively firm.

Inflow into test pits at Lake Irwin south was generally moderate to high and primarily originating from the surface evaporite sands and some deeper granular/pebble gypsum beds.

The shallow geology of the majority of LI North was similar to that in the narrow channels of LI South. A thin surface crust of halite dominated salt overlying a bed of dark brown clay to sandy clay which, in turn, overlies a red-brown lacustrine clay to maximum excavation depth. The upper red-brown clay unit often contained a significant portion of large (50-150mm), matrix supported gypsum crystals.

The absence of a significant evaporite sand layer in the northern sediment resulted in slower fill rates in the pits and trenches.

At the northwestern corner of the lake the sedimentary sequence contained fluvial sediments characterised by very soft, unstable, weakly bedded, upward fining clayey sands to sandy clays with intervening beds of pure clay. This material was interpreted to be ox-bow and floodplain sediments marginal to the main river channel. Initial flow into the pits from this looser, sandy material was high.

Underlying these fluvial sediments is a sequence of hard, very dense, clayey coarse sands with occasional beds of rounded pebbles. This coarse-grained material represents the main river channel where it entered the lake. Brine flow in these areas was medium to low.

Competent Persons Statement

The information in this report that relates to Process Testwork Results is based on, and fairly represents, information compiled by Mr Bryn Jones, BAppSc (Chem), MEng (Mining) who is a Fellow of the AusIMM, a ‘Recognised Professional Organisation’ (RPO) included in a list promulgated by the ASX from time to time. Mr Jones is a Director of Salt Potash Limited. Mr Jones has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Jones consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this Announcement that relates to Exploration Results for Lake Way is extracted from the report entitled ‘Initial Results Confirm Lake Way Potential’ dated 26 April 2018 and ‘Emerging World Class SOP Potential Supported by Lake Way’ dated 12 December 2017. The information in the original ASX Announcement that related to Exploration Results, for Lake Way is based on information compiled by Mr Ben Jeuken, who is a member Australian Institute of Mining and Metallurgy. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr Jeuken has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Jeuken consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement

Table 3 – Summary of Exploration and Mining Tenements

As at 30 June 2018, the Company holds interests in the following tenements:

Australian Projects:

Project

Status

Type of Change

License Number

Area (km²)

Term

Grant Date

Date of First Relinquish-ment

Interest (%)

1-Apr-18

Interest

(%)

30-Jun-18

Western Australia

Lake Wells

Central

Granted

–

E38/2710

192.2

5 years

05-Sep-12

4-Sep-17

100%

South

Granted

–

E38/2821

131.5

5 years

19-Nov-13

18-Nov-18

100%

North

Granted

–

E38/2824

198.2

5 years

04-Nov-13

3-Nov-18

100%

Outer East

Granted

–

E38/3055

298.8

5 years

16-Oct-15

16-Oct-20

100%

Single Block

Granted

–

E38/3056

3.0

5 years

16-Oct-15

16-Oct-20

100%

Outer West

Granted

–

E38/3057

301.9

5 years

16-Oct-15

16-Oct-20

100%

North West

Granted

–

E38/3124

39.0

5 years

30-Nov-16

29-Nov-21

100%

West

Granted

–

L38/262

113.0

20 years

3-Feb-17

2-Feb-38

100%

East

Granted

–

L38/263

28.6

20 years

3-Feb-17

2-Feb-38

100%

South West

Granted

–

L38/264

32.6

20 years

3-Feb-17

2-Feb-38

100%

South

Application

–

L38/287

95.8

–

100%

South Western

Granted

–

E38/3247

350.3

5 years

25-Jan-18

24-Jan-23

100%

South

Application

–

M38/1278

87.47

–

100%

Lake Ballard

West

Granted

–

E29/912

607.0

5 years

10-Apr-15

10-Apr-20

100%

East

Granted

–

E29/913

73.2

5 years

10-Apr-15

10-Apr-20

100%

North

Granted

–

E29/948

94.5

5 years

22-Sep-15

21-Sep-20

100%

South

Granted

–

E29/958

30.0

5 years

20-Jan-16

19-Jan-21

100%

South East

Granted

–

E29/1011

68.2

5 years

11-Aug-17

10-Aug-22

100%

South East

Granted

–

E29/1020

9.3

5 years

21-Feb-18

20-Feb-23

100%

South East

Granted

–

E29/1021

27.9

5 years

21-Feb-18

20-Feb-23

100%

South East

Granted

–

E29/1022

43.4

5 years

21-Feb-18

20-Feb-23

100%

Lake Irwin

West

Granted

–

E37/1233

203.0

5 years

08-Mar-16

07-Mar-21

100%

Central

Granted

–

E39/1892

203.0

5 years

23-Mar-16

22-Mar-21

100%

East

Granted

–

E38/3087

139.2

5 years

23-Mar-16

22-Mar-21

100%

North

Granted

–

E37/1261

107.3

5 years

14-Oct-16

13-Oct-21

100%

Central East

Granted

–

E38/3113

203.0

5 years

14-Oct-16

13-Oct-21

100%

South

Granted

–

E39/1955

118.9

5 years

14-Oct-16

13-Oct-21

100%

North West

Application

–

E37/1260

203.0

–

100%

South West

Application

–

E39/1956

110.2

–

100%

Lake Minigwal

West

Granted

–

E39/1893

246.2

5 years

01-Apr-16

31-Mar-21

100%

East

Granted

–

E39/1894

158.1

5 years

01-Apr-16

31-Mar-21

100%

Central

Granted

–

E39/1962

369.0

5 years

8-Nov-16

7-Nov-21

100%

Central East

Granted

–

E39/1963

93.0

5 years

8-Nov-16

7-Nov-21

100%

South

Granted

–

E39/1964

99.0

5 years

8-Nov-16

7-Nov-21

100%

South West

Granted

E39/1965

89.9

5 years

3-May-18

2-Jun-23

100%

Lake Way

Central

Granted

–

E53/1878

217.0

5 years

12-Oct-16

11-Oct-21

100%

South

Application

–

E53/1897

77.5

–

100%

Lake Marmion

North

Granted

–

E29/1000

167.4

5 years

03-Apr-17

02-Apr-22

100%

Central

Granted

–

E29/1001

204.6

5 years

03-Apr-17

02-Apr-22

100%

South

Granted

–

E29/1002

186.0

5 years

15-Aug-17

14-Aug-22

100%

West

Granted

–

E29/1005

68.2

5 years

11-Jul-17

10-Jul-22

100%

Lake Noondie

North

Application

–

E57/1062

217.0

–

100%

Central

Application

–

E57/1063

217.0

–

100%

South

Application

–

E57/1064

55.8

–

100%

West

Application

–

E57/1065

120.9

–

100%

East

Application

–

E36/932

108.5

–

100%

Lake Barlee

North

Application

–

E49/495

217.0

–

100%

Central

Granted

–

E49/496

220.1

5 years

17-Dec-17

16-Dec-22

100%

South

Granted

–

E77/2441

173.6

5 years

09-Oct-17

08-Oct-22

100%

Lake Raeside

North

Application

–

E37/1305

155.0

–

100%

Lake Austin

North

Application

–

E21/205

117.8

–

100%

West

Application

–

E21/206

192.2

–

100%

East

Application

–

E58/529

213.9

–

100%

South

Application

–

E58/530

217.0

–

100%

South West

Application

–

E58/531

96.1

–

100%

Northern Territory

Lake Lewis

South

Granted

–

EL 29787

146.4

6 years

08-Jul-13

7-Jul-19

100%

North

Granted

–

EL 29903

125.1

6 years

21-Feb-14

20-Feb-19

100%

For further information please visit www.saltlakepotash.com.au or contact:

Matt Syme/Sam Cordin	Salt Lake Potash Limited	Tel: +61 8 9322 6322
Jo Battershill	Salt Lake Potash Limited	Tel: +44 (0) 20 7478 3900
Colin Aaronson/Richard Tonthat	Grant Thornton UK LLP (Nominated Adviser)	Tel: +44 (0) 20 7383 5100
Derrick Lee/Beth McKiernan	Cenkos Securities plc (Joint Broker)	Tel: +44 (0) 131 220 6939
Jerry Keen/Toby Gibbs	Shore Capital (Joint broker)	Tel: +44 (0) 20 7468 7967

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

Salt Lake Potash #SO4 – Notice of GM

11th May 2018 / Leave a comment

Salt Lake Potash Limited #SO4 wishes to advise that a General Meeting of the Company will be held at the Conference Room, Ground Floor, BGC Centre, 28 The Esplanade, Perth, Western Australia on Monday 11 June 2018 at 10:00am (WST).

The business of the meeting will be to approve the adoption of a new Company Constitution and seek approval to vary the terms of existing Performance Rights and Performance Shares.

The Company’s primary focus is to construct a Demonstration Plant, before expanding to full-scale production at the Goldfields Salt Lakes Project (GSLP), intended to be the first salt-lake brine SOP production operation in Australia.

The Company has selected GSLP’s lakes for scale and potential brine volume, known hypersaline brine characteristics, potential for both shallow trench extraction and from deeper paleochannel aquifer bores, large playa surface for cost-effective evaporation pond construction and proximity to the important transport and energy infrastructure and engineering expertise available in the Western Australian Goldfields. While proceeding with pre-feasibility study technical work for Lake Wells, the Company has also completed initial work across all of the other regional lakes in the GSLP.

As a result of the Company’s work on regional lakes, the Company identified an opportunity at Lake Way. This lead to the Company executing a Memorandum of Understanding (MOU) with Blackham Resources Limited (Blackham) to investigate the potential development of a SOP operation based at Lake Way, near Wiluna.

The strategic decision to shift focus to Lake Way resulted in the Company’s resources being focused on Lake Way. The Directors of the Company believe that of participants of the Performance Rights Plan and the Vendors should be not be directly affected by decision of the Company to shift to Lake Way and seek approval for an extension on the pre-feasibility study and definitive feasibility study milestones by six months.

Equally, the proposed variations will ensure that the Company can explore and exploit the valuable commercial opportunity under the MOU, without the additional burden of attempting to complete the pre-feasibility study and definitive feasibility study before the original expiry dates.

The Company is also proposing to adopt the new Company Constitution to reflect changes to the Australian Corporations Act, the ASX Listing Rules and other regulatory requirements since the Company adopted its current Constitution in 2006.

The Notice of General Meeting was sent to shareholders today and is available for download on the Company’s website: www.saltlakepotash.com.au

For further information please visit www.saltlakepotash.com.au or contact:

Matt Syme/Sam Cordin	Salt Lake Potash Limited	Tel: +61 8 9322 6322
Jo Battershill	Salt Lake Potash Limited	Tel: +44 (0) 20 7478 3900
Colin Aaronson/Richard Tonthat	Grant Thornton UK LLP (Nominated Adviser)	Tel: +44 (0) 20 7383 5100
Derrick Lee/Beth McKiernan	Cenkos Securities plc (Joint Broker)	Tel: +44 (0) 131 220 6939
Jerry Keen/Toby Gibbs	Shore Capital (Joint broker)	Tel: +44 (0) 20 7468 7967

Salt Lake Potash #SO4 announces March 2018 Quarterly Report

30th April 2018 / Leave a comment

The Board of Salt Lake Potash Limited (the Company or SLP) is pleased to present its Quarterly Report for the period ending 31 March 2018.

The Company’s primary focus is to construct a Demonstration Plant at the Goldfields Salt Lakes Project (GSLP), intended to be the first salt-lake brine Sulphate of Potash (SOP) production operation in Australia.

Highlights for the quarter and subsequently include:

LAKE WAY

MOU with Blackham Resources to access Lake Way

Ø The Company entered into a Memorandum of Understanding (MOU) with Blackham Resources Limited (Blackham) to investigate the potential development of a SOP operation based at Lake Way, near Wiluna.

Surface Sampling Program

Ø A preliminary surface sampling program on Blackham’s tenements confirms the average SOP grade of over 14kg/m³, making Lake Way one of Australia’s highest grade SOP brine sources.

Geotechnical Investigations

Ø An initial geological and geotechnical investigation by the Company and Knight Piesold confirmed the availability of in-situ clays amendable for on-lake evaporation pond construction. A total of 24 auger holes were excavated across Blackham’s tenements and laboratory tested.

Surface Aquifer Exploration

Ø Review and modelling of the large volume of historical exploration data for Lake Way confirms the likelihood of a large hypersaline brine pool on both Blackham and SLP’s tenements.

Ø The Company is in the process of mobilising a drill rig and an amphibious excavator on the Lake to complete an initial surface aquifer exploration program.

Ø The surface aquifer program will include the construction of test pits and trenches for long-term pump testing.

Process Testwork

Ø The Company has commenced a range of process development testwork including process pathway modelling by international experts, a bulk sample evaporation trial and site-based evaporation trial at Lake Way.

First MOU for an Offtake Agreement with Mitsubishi

Ø The Company executed its first MOU for an Offtake Agreement with Mitsubishi, for the sales and offtake rights for up to 50% of the SOP production, from a Demonstration Plant at the GSLP, for distribution into Asia and Oceania and potentially other markets.

LAKE WELLS

Process Testwork

Ø The Saskatchewan Research Council (SRC) completed locked cycle testwork utilising 1T of harvest salts from Lake Wells SET to produce 400kg of flotation concentrate. The flotation concentrate is scheduled for crystalliser design testwork in the USA.

Ø The Site Evaporation Trial (SET) at Lake Wells was decommissioned after completing over 18 months of operation under site conditions and through all seasons. The SET processed approximately 412 tonnes of brine and produced over 10 tonnes of harvest salts.

LAKE IRWIN

Ø A surface aquifer exploration program was continued at Lake Irwin, with additional 29 shallow test pits and 2 test trenches. This work provides preliminary data for the geological and hydrological models of the surface aquifer of the Lake, as well as brine, geological and geotechnical samples.

GSLP’s World Class Scale Revealed with an Initial Exploration Target Estimation

The Company released an initial estimate of Exploration Targets for eight of the nine lakes comprising the Company’s GSLP. The ninth lake, Lake Wells, already having a Mineral Resource reported in accordance with the JORC code.

The GSLP has a number of very important, favourable characteristics:

Ø Very large paleochannel hosted brine aquifers, with chemistry amenable to evaporation of salts for SOP production, extractable from both low cost trenches and deeper bores;

Ø Over 3,300km² of playa surface, with in-situ clays suitable for low cost on-lake pond construction;

Ø Excellent evaporation conditions;

Ø Excellent access to transport, energy and other infrastructure in the major Goldfields mining district;

Ø Lowest quartile capex and opex potential based on the Lake Wells Scoping Study;

Ø Clear opportunity to reduce transport costs by developing lakes closer to infrastructure and by capturing economies of scale;

Ø Multi-lake production offers operational flexibility and protection from localised weather events;

Ø The very high level of technical validation already undertaken at Lake Wells substantially applies to the other lakes in the GSLP; and

Ø Potential co-product revenues, particularly where transport costs are lowest.

Salt Lake Potash will progressively explore the lakes in the portfolio with a view to estimating resources for each Lake, in parallel with the development of the Demonstration Plant. Exploration of the lakes will be prioritised based on likely transport costs, scale, permitting pathway and brine chemistry.

LAKE WAY

Lake Way is located in the Goldfields region of Western Australia, less than 15km south of Wiluna. The surface area of the Lake is over 270km².

SLP has entered an MOU with Blackham to investigate the development of an SOP operation on Blackham’s existing Mining Leases at Lake Way, including initially a 50,000tpa Demonstration Plant (see announcement dated 12 March 2018).

Lake Way has some compelling advantages which make it potentially an ideal site for an SOP operation, including:

Ø The site has an excellent freight solution, adjacent to the Goldfields Highway, which is permitted for heavy haulage 4 trailer road trains to the railhead at Leonora.

Ø A Demonstration Plant would likely be built on Blackham’s existing Mining Licences, already subject of a Native Title Agreement.

Ø The high grade brines at Lake Way will result in lower capital and operating costs due to lower extraction and evaporation requirements.

Ø There would be substantial savings to both parties from co-operating on exploration activities on each other’s ground.

Ø The presence of clays in the upper levels of the lake which should be amenable to low cost, on-lake evaporation pond construction.

SLP will complete a Scoping Study for a potential SOP operation at Lake Way, including a Demonstration Plant, by mid-2018, in time to allow a decision on dewatering the Williamson Pit. There is substantial historical data available for Lake Way and, along with the extensive, high quality technical work undertaken at SLP’s other lakes, which has substantial application at Lake Way, a Scoping Study can be undertaken in a much shorter timeframe than would normally be the case.

Surface Sampling Program

The Company has now completed initial surface sampling program at Lake Way, substantially covering the Lake surface. A total of 23 pit samples have been collected encountering brine at a standing water level generally less than 1 metre from surface.

The average brine chemistry of the samples was:

		Total Samples	K	Mg	SO₄	TDS	SOP* Equivalent
Program	Location	Total Samples	(mg/L)	(mg/L)	(mg/L)	(mg/L)	(kg/m³)
March 2018	Blackham	15	6,447	6,680	25,613	231,000	14.38
November 2017	SLP	8	6,859	7,734	25,900	243,000	15.25

* Conversion factor of K to SOP (K₂SO₄ equivalent) is 2.23

[1] Previously reported in ASX release dated 12/12/2017

The brine chemistry at Lake Way is very consistent over the lake surface. The SOP grades are amongst the highest achieved in Australia to date.

Geotechnical Investigations

To gain an understanding of ground conditions for trenching and pond construction, a preliminary geotechnical investigation program was undertaken within the Blackham Mining Tenements, in conjunction with leading international geotechnical consultants, Knight Piesold.

A total of 24 hand auger boreholes were drilled to depths of up to 3.2 metres, and the encountered soils were logged and sampled.

Lake Way ground conditions consists of a thin surface layer of evaporite sands, overlying sandy and silty clays. Firm clays were encountered at 1m to 2m depth, generally increasing in strength with depth, becoming hard from 2m to 3m. Shallow groundwater was encountered on average 0.2m below the lake surface.

A testing program was undertaken at a NATA accredited geotechnical laboratory, using specific test methods appropriate for saline conditions, to characterise soils and assess preliminary soil parameters.

Summary test results are presented below.

Particle Size Distribution Analysis
Sample Number	Lithological Unit	Clay and Silt	Sand and Gravel
601	Mixed soils above 1.5m	26%	74%
602	Clay 1.2m to 2.25m depth	71%	29%
603	Mixed soils above 1.5m	47%	53%
604	Mixed soils above 1.5m	47%	53%

Table 2: Particle Size Distribution Analysis

Hydrometer Analysis
Sample Number	Lithological Unit	Clay	Silt	Sand
600	Mixed soils above 1.8m	58%	20%	22%
605	Mixed soils above 0.5m	29%	30%	41%
606	Mixed soils above 1.8m	28%	27%	45%

Table 3: Hydrometer Analysis

Properties of Upper Clays
Remoulded Permeability (m/s)	5×10^-10
Maximum Dry Density (t/m3)	1.75
Optimum Water Content (%)	18
Cohesion c’ (kPa)	1
Angle of Shear Resistance ф ‘ (Deg)	37

Table 4: Properties of Upper Clays

Erodibility characteristics were tested and an Emerson class number of 6 was measured for all samples. This indicates non-dispersive soils that are not prone to erosion when used to form embankments.

Based on the preliminary geotechnical work to date, Knight Piesold have concluded that:

– the in-situ clay materials can be expected to provide natural low permeability layers to control seepage of on-lake ponds.

– the clays are suitable for embankment construction purposes, with adequate moisture control and borrow pit dewatering.

– A key advantage of Lake Way is the presence of a drier clay zone surrounding the Williamson Pit, which has the potential to provide borrow materials and construction schedule benefits for the upcoming pond construction programs.

Knight Piesold is now preparing an options study to evaluate design concepts for large-scale pond systems and provide earthworks quantities and costs. Seepage assessments and flood studies are underway. In parallel, design work is being undertaken for a dewatering pond to hold the Williamson Pit brine.

Surface Aquifer Characterisation

Lake Way and its surrounds have been the subject of a substantial amount of historical exploration for gold, nickel, uranium and other minerals, as well as for process water for mining operations. A total of over 2,800 holes have been drilled in and around the Lake previously, providing a very large database of geotechnical information.

SLP have commenced compiling, digitising and interpreting the historical exploration database to extract relevant data and provide initial basement geometry for the Lake area, to assist estimation of an initial JORC compliant resource.

The Company is also in the process of mobilising a small track-mounted drill rig and an amphibious excavator to complete an initial surface aquifer exploration program. This work will provide critical data for the hydrogeological model for the surface aquifer of the Lake, as well as geological and geotechnical information for infrastructure design and construction.

The surface aquifer program will include the construction of test pits and trenches for long-term pump testing.

The drill campaign is also intended to sterilise (for gold exploration) sufficient areas for siting brine extraction trenches and evaporation ponds.

Process Testwork

The Company has commenced a range of process development testwork to provide and validate inputs to the Lake Way Scoping Study production model. Naturally, this includes testing brines from the Lake itself, as well as the super-concentrated brines from the Williamson Pit.

The testwork aims to confirm the modelled brine evaporation pathways firstly under laboratory simulated conditions and then from a site-based trial of sufficient scale to test on-lake evaporation conditions.

Initial brine evaporation modelling, conducted by internationally renowned solar pond experts, Ad Infinitum, indicates the salts produced at Lake Way will be comparable to those produced at Lake Wells and therefore suitable for conversion into SOP.

International laboratory and testing company, Bureau Veritas (BV), has commenced a series of laboratory-scale brine evaporation trials at their Perth facility, under simulated average Lake Way climate conditions. The aim of the BV trials is to monitor the chemical composition of the brine and salts produced through the evaporation process to confirm:

· Concentration thresholds in the brine chemistry which can be used to maximise the recovery of potassium in the harvest salts and minimise the quantity of dilutive salts fed to a process plant;

· The quantity and composition of harvest salts which will for the plant feed in commercial production; and

· The potential for any internal evaporation pond recycle streams that may improve harvest salt recovery.

Two tests – one for Williamson Pit brine and one for normal Lake Way brine – are currently underway, each evaporating 150kg of brine on a load cell to monitor evaporative loss. The temperature of the brine and air flow across the brine surface is controlled by using infra-red lamps and fans to simulate Lake Way average weather conditions.

A Site Evaporation Trial (SET), as successfully operated at Lake Wells previously, is under construction at Lake Way and will be filled with first brine over the next week. The SET will gather specific evaporation data on concentrated brines under actual conditions, providing refinements to the commercial scale pond modelling.

The Site Evaporation Trial is also designed to produce sufficient harvest salt for confirmatory process testwork and initial customer samples.

GOLDFIELDS SALT LAKES PROJECT

MOU for Offtake with Mitsubishi

Salt Lake Potash is progressing its GSLP development strategy, initially involving construction of a Demonstration Plant producing up to 50,000tpa of high quality SOP, with it plans to distribute production through a small number of global distribution partnerships.

· Market pricing and commission mechanisms;

· Specifications and delivery parameters;

· Mitsubishi to provide strategic advice on marketing within the region; and

· The parties to continue discussions regarding funding requirements for the GSLP.

Exploration Target

The Company completed an initial estimate of Exploration Targets for eight of the nine lakes comprising the Company’s GSLP. The ninth lake, Lake Wells, already having a Mineral Resource reported in accordance with the JORC code.

	Area	Average Grade (kg/m³)		Stored (Mt)		Drainable (Mt)
Lake	(km²)	SOP (min)	SOP (max)	SOP (min)	SOP (max)	SOP (min)	SOP (max)
Ballard	626	3.5	4.7	42	53	3.1	18
Barlee	350	1.9	4.3	10	21	0.8	8.1
Irwin	306	4.8	8.1	25	43	1.9	15
Marmion	339	3.0	5.1	20	34	1.6	11
Minigwal	567	3.8	8.3	45	98	3.4	31
Noondie	386	4.2	6.0	35	50	2.8	16
Raeside	89	2.1	7.0	6	20	0.4	5.4
Way	172	5.6	15.5	28	54	2.7	19
Wells	477	8.7	8.8	80¹	85¹	9²	29²
Total	3,312	4.4	7.1	290	458	26	153

1. Incorporating Lake Wells’ stored Mineral Resource Estimate previously reported.

2. Lake Wells Mineral stored Mineral Resource Estimate converted to drainable equivalent.

Table 5: GSLP Exploration Target

The combined resources and exploration targets in the GSLP comprise a globally significant Project in the SOP sector, potentially sustaining one of the world’s largest SOP production operations for many decades.

LAKE WELLS

Process Testwork

The Company continues a range of process development testwork to enhance the Lake Wells process model.

Site Evaporation Trial

The large scale, continuous Site Evaporation Trial (SET) at Lake Wells successfully completed over 18 months of operation under site conditions and through all seasons, confirming the solar evaporation pathway for production of potassium rich harvest salts for processing into SOP. The SET was decommissioned after achieving its objective of refining process design criteria for the halite evaporation ponds and subsequent harvest salt ponds.

The SET processed approximately 412 tonnes of Lake Wells brine and produced 10.3 tonnes of harvest salts.

The results of the SET are Australian first and have provided significant knowledge to the Company on the salt crystallisation pathway under site conditions in Australia.

Process Development

The Saskatchewan Research Council (SRC) completed a locked-cycle, continuous production test on 1T of harvest salt generated by the Lake Wells SET during the quarter. The aims of the test were to operate the proposed pre-crystallisation portion of the GSLP Flowsheet on a continuous basis, over a number of weeks, to quantify brine handling requirements in the process flowsheet and obtain product purity information.

The locked-cycle test produced 400kg of flotation concentrate (Schoenite) for crystalliser vendor testing and 3kg of SOP for marketing purposes. The product quality produced by SRC from the locked-cycle test was exceptional, exceeding quality benchmarks for commercial SOP.

The 400kg of flotation concentrate has been shipped to a leading crystalliser vendor in the United States for batch design testwork and product characterisation. The testwork is expected to be completed in the June quarter.

LAKE IRWIN

Surface Aquifer Exploration Program

Following the initial trench development in 2017, the Company returned to Lake Irwin with the amphibious excavator to undertake a program of test pits and additional trench excavation.

A total of 29 additional pits were excavated across the lake surface to provide geological control, 12 of these pits were slug tested to obtain bulk hydraulic conductivity parameters for the lakebed sediments.

Two additional trenches were excavated at the western and eastern ends of the Lake respectively to a length of approximately 100m and a depth of 4m. These two new trenches together with the existing trenches will be test pumped during the next quarter to determine hydraulic conductivity and specific yield.

LAKE BALLARD

During the quarter, the Company received confirmation from the Minister for Finance, Energy and Aboriginal Affairs that the Company’s Section 18 application over the Lake Ballard and Lake Marmion projects had been granted. The granting of the Section 18 allows SLP to recommence exploration activities at the Lake.

Competent Persons Statement

The information in this report that relates to Exploration Results for Lake Irwin is based on information compiled by Mr Ben Jeuken, who is a member Australian Institute of Mining and Metallurgy. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr Jeuken has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Jeuken consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Exploration Targets or Mineral Resources is extracted from the report entitled ‘Exploration Targets Reveal World Class Scale Potential’ dated 28 March 2018 The information in the original ASX Announcement that related to Exploration Targets or Mineral Resources is based on information compiled by Mr Ben Jeuken, who is a member Australian Institute of Mining and Metallurgy. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr Jeuken has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Jeuken consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement

Table 6 – Summary of Exploration and Mining Tenements

As at 31 March 2018, the Company holds interests in the following tenements:

Australian Projects:

Western Australia

Lake Wells

Central

Granted

–

E38/2710

192.2

5 years

05-Sep-12

4-Sep-17

100%

South

Granted

–

E38/2821

131.5

5 years

19-Nov-13

18-Nov-18

100%

North

Granted

–

E38/2824

198.2

5 years

04-Nov-13

3-Nov-18

100%

Outer East

Granted

–

E38/3055

298.8

5 years

16-Oct-15

16-Oct-20

100%

Single Block

Granted

–

E38/3056

3.0

5 years

16-Oct-15

16-Oct-20

100%

Outer West

Granted

–

E38/3057

301.9

5 years

16-Oct-15

16-Oct-20

100%

North West

Granted

–

E38/3124

39.0

5 years

30-Nov-16

29-Nov-21

100%

West

Granted

–

L38/262

113.0

20 years

3-Feb-17

2-Feb-38

100%

East

Granted

–

L38/263

28.6

20 years

3-Feb-17

2-Feb-38

100%

South West

Granted

–

L38/264

32.6

20 years

3-Feb-17

2-Feb-38

100%

South

Application

–

L38/287

95.8

–

100%

South Western

Granted

E38/3247

350.3

5 years

25-Jan-18

24-Jan-23

100%

South

Application

–

M38/1278

87.47

–

100%

Lake Ballard

West

Granted

–

E29/912

607.0

5 years

10-Apr-15

10-Apr-20

100%

East

Granted

–

E29/913

73.2

5 years

10-Apr-15

10-Apr-20

100%

North

Granted

–

E29/948

94.5

5 years

22-Sep-15

21-Sep-20

100%

South

Granted

–

E29/958

30.0

5 years

20-Jan-16

19-Jan-21

100%

South East

Granted

–

E29/1011

68.2

5 years

11-Aug-17

10-Aug-22

100%

South East

Granted

E29/1020

9.3

5 years

21-Feb-18

20-Feb-23

100%

South East

Granted

E29/1021

27.9

5 years

21-Feb-18

20-Feb-23

100%

South East

Granted

E29/1022

43.4

5 years

21-Feb-18

20-Feb-23

100%

Lake Irwin

West

Granted

–

E37/1233

203.0

5 years

08-Mar-16

07-Mar-21

100%

Central

Granted

–

E39/1892

203.0

5 years

23-Mar-16

22-Mar-21

100%

East

Granted

–

E38/3087

139.2

5 years

23-Mar-16

22-Mar-21

100%

North

Granted

–

E37/1261

107.3

5 years

14-Oct-16

13-Oct-21

100%

Central East

Granted

–

E38/3113

203.0

5 years

14-Oct-16

13-Oct-21

100%

South

Granted

–

E39/1955

118.9

5 years

14-Oct-16

13-Oct-21

100%

North West

Application

–

E37/1260

203.0

–

100%

South West

Application

–

E39/1956

110.2

–

100%

Lake Minigwal

West

Granted

–

E39/1893

246.2

5 years

01-Apr-16

31-Mar-21

100%

East

Granted

–

E39/1894

158.1

5 years

01-Apr-16

31-Mar-21

100%

Central

Granted

–

E39/1962

369.0

5 years

8-Nov-16

7-Nov-21

100%

Central East

Granted

–

E39/1963

93.0

5 years

8-Nov-16

7-Nov-21

100%

South

Granted

–

E39/1964

99.0

5 years

8-Nov-16

7-Nov-21

100%

South West

Application

–

E39/1965

89.9

–

100%

Lake Way

Central

Granted

–

E53/1878

217.0

5 years

12-Oct-16

11-Oct-21

100%

South

Application

–

E53/1897

77.5

–

100%

Lake Marmion

North

Granted

–

E29/1000

167.4

5 years

03-Apr-17

02-Apr-22

100%

Central

Granted

–

E29/1001

204.6

5 years

03-Apr-17

02-Apr-22

100%

South

Granted

–

E29/1002

186.0

5 years

15-Aug-17

14-Aug-22

100%

West

Granted

–

E29/1005

68.2

5 years

11-Jul-17

10-Jul-22

100%

Lake Noondie

North

Application

–

E57/1062

217.0

–

100%

Central

Application

–

E57/1063

217.0

–

100%

South

Application

–

E57/1064

55.8

–

100%

West

Application

–

E57/1065

120.9

–

100%

East

Application

–

E36/932

108.5

–

100%

Lake Barlee

North

Application

–

E49/495

217.0

–

100%

Central

Granted

–

E49/496

220.1

5 years

17-Dec-17

16-Dec-22

100%

South

Granted

–

E77/2441

173.6

5 years

09-Oct-17

08-Oct-22

100%

Lake Raeside

North

Application

–

E37/1305

155.0

–

100%

Lake Austin

West

Application

Application Lodged

E21/205

117.8

–

100%

West

Application

Application Lodged

E21/206

192.2

–

100%

West

Application

Application Lodged

E58/529

213.9

–

100%

West

Application

Application Lodged

E58/530

217.0

–

100%

West

Application

Application Lodged

E58/531

96.1

–

100%

Northern Territory

Lake Lewis

South

Granted

–

EL 29787

146.4

6 years

08-Jul-13

7-Jul-19

100%

North

Granted

–

EL 29903

125.1

6 years

21-Feb-14

20-Feb-19

100%

APPENDIX 1 – LAKE IRWIN TEST PIT LOCATION DATA

Hole_ID	East	North	EOH	Hole_ID	East	North	EOH
LITT028	370167	6905453	6.0	LITT043	369662	6904489	6.0
LITT029	370157	6905023	6.0	LITT044	369176	6904645	6.0
LITT030	370131	6904535	6.0	LITT045	368564	6904252	6.0
LITT031	370311	6904080	6.0	LITT046	368059	6904105	2.0
LITT032	370711	6903601	6.0	LITT047	367550	6903968	2.0
LITT033	371017	6903199	6.0	LITT048	367055	6903816	3.0
LITT034	370781	6902715	6.0	LITT049	366565	6903685	3.0
LITT035	370842	6902214	6.0	LITT050	366090	6903526	3.0
LITT036	371196	6901816	6.0	LITT051	365629	6903326	3.0
LITT037	371632	6901572	6.0	LITT052	365153	6903175	4.0
LITT038	371799	6901412	6.0	LITT053	364294	6904675	4.5
LITT039	371956	6901902	6.0	LITT054	363879	6904397	4.0
LITT040	371672	6902319	6.0	LITT055	363459	6904124	4.0
LITT041	371415	6902727	6.0	LITT056	362109	6903462	6.0
LITT042	370518	6905194	6.0

APPENDIX 2 – LAKE IRWIN BRINE CHEMISTRY ANALYSIS

HOLE ID	From (m)	To (m)	K (mg/L)	Cl (mg/L)	Na (mg/L)	Ca (mg/L)	Mg (mg/L)	SO₄ (mg/L)	TDS (g/L)
LITT045	0	6.0	3,040	155,150	95,200	490	5,830	21,800	243
LITT046	0	6.0	3,410	153,600	96,800	481	5,300	22,000	243
LITT047	0	6.0	3,200	153,050	97,200	462	6,050	23,500	244
LITT048	0	6.0	3,160	153,250	95,700	465	6,470	24,500	244
LITT049	0	6.0	3,070	153,750	96,900	455	6,780	24,800	247
LITT050	0	6.0	3,050	152,550	96,000	450	6,240	24,500	254
LITT051	0	6.0	3,240	156,550	98,200	448	5,930	23,900	248
LITT052	0	6.0	3,150	155,700	98,200	444	6,270	24,500	247
LITT053	0	6.0	3,430	161,950	101,000	452	6,550	23,400	254
LITT054	0	6.0	3,360	153,400	97,100	512	5,480	21,700	242
LITT055	0	6.0	3,290	155,150	98,300	514	5,660	21,200	244
LITT056	0	6.0	3,770	160,050	98,900	430	6,000	23,600	251

APPENDIX 3 – JORC TABLE ONE

Section 1: Sampling Techniques and Data

Criteria

JORC Code explanation

Commentary

Sampling techniques

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

Aspects of the determination of mineralisation that are Material to the Public Report.

Lake Irwin

Geological samples were obtained from the excavator bucket at regular depth intervals.

Brine samples were taken from the discharge of trench dewatering pumps.

Drilling techniques

Lake Irwin

Excavation with a low ground pressure excavator.

Drill sample recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

Lake Irwin

Not applicable for trenching.

Logging

Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

The total length and percentage of the relevant intersections logged.

Lake Irwin

All trenches and test pits were geologically logged qualitatively by a qualified geologist, noting in particular moisture content of sediments, lithology, colour, induration, grainsize and shape, matrix and structural observations. Flow rate data was logged to note water inflow zones.

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

Whether sample sizes are appropriate to the grain size of the material being sampled.

Lake Irwin

Brine samples were taken from the discharge of trench dewatering pumps.

Sample bottles are rinsed with brine which is discarded prior to sampling.

All brine samples taken in the field are split into two sub-samples: primary and duplicate. Reference samples were analysed at a separate laboratory for QA/QC.

Representative chip trays and bulk lithological samples are kept for records.

Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

Primary samples were sent to Bureau Veritas Minerals Laboratory, Perth.

Brine samples were analysed using ICP-AES for K, Na, Mg, Ca, with chloride determined by Mohr titration and alkalinity determined volumetrically. Sulphate was calculated from the ICP-AES sulphur analysis.

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

The use of twinned holes.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

Discuss any adjustment to assay data.

Data entry is done in the field to minimise transposition errors.

Brine assay results are received from the laboratory in digital format, these data sets are subject to the quality control described above. All laboratory results are entered in to the company’s database and validation completed.

Independent verification of significant intercepts was not considered warranted given the relatively consistent nature of the brine.

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

Specification of the grid system used.

Quality and adequacy of topographic control.

Trench and test pit co-ordinates were captured using hand held GPS.

Coordinates were provided in GDA 94_MGA Zone 51.

Topographic control is obtained using Geoscience Australia’s 1-second digital elevation product.

Data spacing and distribution

Data spacing for reporting of Exploration Results.

Whether sample compositing has been applied.

Lake Irwin

Trench hole spacing is shown on the attached maps and varies due to irregular access along the lake edge.

Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

Lake Irwin

Trenches and test pits were vertical. Geological structure is considered to be flat lying.

Sample security

The measures taken to ensure sample security.

All brine samples were marked and kept onsite before transport to the laboratory.

All remaining sample and duplicates are stored in the Perth office in climate-controlled conditions.

Chain of Custody system is maintained.

Audits or reviews

The results of any audits or reviews of sampling techniques and data.

No audits were undertaken.

Section 2: Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	Lake Irwin Tenements sampled 37/1233, 38/3087 and 39/1892 in Western Australia. Exploration Licenses are held by Piper Preston Pty Ltd (fully owned subsidiary of ASLP).
Exploration done by other parties	Acknowledgment and appraisal of exploration by other parties.	Details are presented in the report.
Geology	Deposit type, geological setting and style of mineralisation.	Salt Lake Brine Deposit
Drill hole Information	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	Details are presented in the report.
Data aggregation methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated.	Details are presented in the report.
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).	Lake Irwin The unit is flat lying and trenches and pits are vertical hence the intersected downhole depth is equivalent to the inferred thickness of mineralisation.
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Addressed in the announcement.
Balanced reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	All results have been included.
Other substantive exploration data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	Gravity survey was completed by Atlas Geophysics using a Hi Target V100 GNSS receiver for accurate positioning and CG-5 Digital Automated Gravity Meter. Gravity data was gained using the contractors rapid acquisition, high accuracy UTV borne techniques. The company’s own in-house reduction and QA software was used to reduce the data on a daily basis to ensure quality and integrity. All gravity meters were calibrated pre and post survey and meter drift rates were monitored daily. 3 to 5 % of the stations are repeated for quality control. Western Geophysics were engaged to manage and process the gravity survey. Processing the survey involved reducing the gravity data and integrating to the regional data to a residual anomaly which shows there is a semi-continuous distinct residual gravity low of negative 2 to 2.5 milligals present along eastern to central areas to the entire tenement area.
Further work	The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	Further trench testing and numerical hydrogeological modelling to be completed that incorporates the results of the test pumping. The model will be the basis of the annual brine abstraction rate and mine life.

Name of entity
Salt Lake Potash Limited
ABN		Quarter ended (“current quarter”)
98 117 085 748		31 March 2018

Consolidated statement of cash flows			Current quarter $A’000	Year to date (9 months) $A’000
1.	Cash flows from operating activities
1.1	Receipts from customers
1.2	Payments for		(1,193)	(4,503)
	(a) exploration & evaluation		(1,193)	(4,503)
	(b) development		–	–
	(c) production		–	–
	(d) staff costs		(597)	(1,958)
	(e) administration and corporate costs		(238)	(820)
1.3	Dividends received (see note 3)		–	–
1.4	Interest received		61	194
1.5	Interest and other costs of finance paid		–	–
1.6	Income taxes paid		–	–
1.7	Research and development refunds		–	457
1.8	Other (provide details if material) – Business Development – GST refunds (paid) – Exploration Incentive Scheme		(264) 66 –	(604) 104 30
1.9	Net cash from / (used in) operating activities		(2,165)	(7,100)

2.		Cash flows from investing activities	(35)	(122)
2.1		Payments to acquire:
		(a) property, plant and equipment
		(b) tenements (see item 10)	–	–
		(c) investments	–	–
		(d) other non-current assets	–	–
2.2		Proceeds from the disposal of:	–	–
		(a) property, plant and equipment	–	–
		(b) tenements (see item 10)	–	–
		(c) investments	–	–
		(d) other non-current assets	–	–
2.3		Cash flows from loans to other entities	–	–
2.4		Dividends received (see note 3)	–	–
2.5		Other (provide details if material)	–	–
2.6		Net cash from / (used in) investing activities	(35)	(122)

3.		Cash flows from financing activities	–	–
3.1		Proceeds from issues of shares	–	–
3.2		Proceeds from issue of convertible notes	–	–
3.3		Proceeds from exercise of share options	–	–
3.4		Transaction costs related to issues of shares, convertible notes or options	–	(75)
3.5		Proceeds from borrowings	–	–
3.6		Repayment of borrowings	–	–
3.7		Transaction costs related to loans and borrowings	–	–
3.8		Dividends paid	–	–
3.9		Other (provide details if material)	–	–
3.10		Net cash from / (used in) financing activities	–	(75)

4.		Net increase / (decrease) in cash and cash equivalents for the period	10,500	15,597
4.1		Cash and cash equivalents at beginning of period	10,500	15,597
4.2		Net cash from / (used in) operating activities (item 1.9 above)	(2,165)	(7,100)
4.3		Net cash from / (used in) investing activities (item 2.6 above)	(35)	(122)
4.4		Net cash from / (used in) financing activities (item 3.10 above)	–	(75)
4.5		Effect of movement in exchange rates on cash held	–	–
4.6		Cash and cash equivalents at end of period	8,300	8,300

5.	Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1	Bank balances	2,300	2,500
5.2	Call deposits	6,000	8,000
5.3	Bank overdrafts	–	–
5.4	Other (provide details)	–	–
5.5	Cash and cash equivalents at end of quarter (should equal item 4.6 above)	8,300	10,500

6.	Payments to directors of the entity and their associates	Current quarter $A’000
6.1	Aggregate amount of payments to these parties included in item 1.2	(140)
6.2	Aggregate amount of cash flow from loans to these parties included in item 2.3	–
6.3	Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2
Payments include director and consulting fees, superannuation and provision of corporate, administration services, and a fully serviced office.

7.	Payments to related entities of the entity and their associates	Current quarter $A’000
7.1	Aggregate amount of payments to these parties included in item 1.2	–
7.2	Aggregate amount of cash flow from loans to these parties included in item 2.3	–
7.3	Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2
Not applicable.

8.	Financing facilities available Add notes as necessary for an understanding of the position	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
8.1	Loan facilities	–	–
8.2	Credit standby arrangements	–	–
8.3	Other (please specify)	–	–
8.4	Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.
Not applicable

9.	Estimated cash outflows for next quarter	$A’000
9.1	Exploration and evaluation	1,500
9.2	Development	–
9.3	Production	–
9.4	Staff costs	750
9.5	Administration and corporate costs	200
9.6	Other (provide details if material) – Business Development	200
9.7	Total estimated cash outflows	2,650

10.	Changes in tenements (items 2.1(b) and 2.2(b) above)	Tenement reference and location	Nature of interest	Interest at beginning of quarter	Interest at end of quarter
10.1	Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced		Refer to Table 6
10.2	Interests in mining tenements and petroleum tenements acquired or increased

Compliance statement

1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2 This statement gives a true and fair view of the matters disclosed.

Sign here: …………………………………………………… Date: 30 April 2018

(Director/Company secretary)

Print name: Sam Cordin

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

For further information please visit www.saltlakepotash.com.au or contact:

Matt Syme/Sam Cordin	Salt Lake Potash Limited	Tel: +61 8 9322 6322
Jo Battershill	Salt Lake Potash Limited	Tel: +44 (0) 20 7478 3900
Colin Aaronson/Richard Tonthat	Grant Thornton UK LLP (Nominated Adviser)	Tel: +44 (0) 20 7383 5100
Derrick Lee/Beth McKiernan	Cenkos Securities plc (Joint Broker)	Tel: +44 (0) 131 220 6939
Jerry Keen/Toby Gibbs	Shore Capital (Joint broker)	Tel: +44 (0) 20 7468 7967

Salt Lake Potash #SO4 – Exploration targets reveal World Class scale potential

28th March 2018 / Leave a comment

Salt Lake Potash Limited (SLP or the Company) is pleased to announce results of an initial estimate of Exploration Targets for eight of the nine lakes comprising the Company’s Goldfields Salt Lakes Project (GSLP). The ninth lake, Lake Wells, already has a Mineral Resource reported in accordance with the JORC code.

	Area	Average Grade (kg/m³)		Stored (Mt)		Drainable (Mt)
Lake	(km²)	SOP (min)	SOP (max)	SOP (min)	SOP (max)	SOP (min)	SOP (max)
Ballard	626	3.5	4.7	42	53	3.1	18
Barlee	350	1.9	4.3	10	21	0.8	8.1
Irwin	306	4.8	8.1	25	43	1.9	15
Marmion	339	3.0	5.1	20	34	1.6	11
Minigwal	567	3.8	8.3	45	98	3.4	31
Noondie	386	4.2	6.0	35	50	2.8	16
Raeside	89	2.1	7.0	6	20	0.4	5.4
Way	172	5.6	15.5	28	54	2.7	19
Wells	477	8.7	8.8	80¹	85¹	9²	29²
Total	3,312	4.4	7.1	290	458	26	153

1. Incorporating Lake Wells’ stored Mineral Resource Estimate previously reported.

2. Lake Wells Mineral stored Mineral Resource Estimate converted to drainable equivalent.

Table 1: GSLP Exploration Target

CEO Matt Syme commented “These initial exploration targets allow us for the first time to quantify the real scale of the long term opportunity at the Goldfields Salt Lakes Project. We have already made very substantial progress in revealing the outstanding potential at Lake Wells and these Exploration Targets illustrate how the broader Project has a multiple of that potential. This places the GSLP asset at the leading edge of world scale SOP development opportunities.”

The GSLP has a number of very important, favourable characteristics:

Ø Very large paleochannel hosted brine aquifers, with chemistry amenable to evaporation of salts for SOP production, extractable from both low cost trenches and deeper bores;

Ø Over 3,300km² of playa surface, with in-situ clays suitable for low cost on-lake pond construction;

Ø Excellent evaporation conditions;

Ø Excellent access to transport, energy and other infrastructure in the major Goldfields mining district;

Ø Lowest quartile capex and opex potential based on the Lake Wells Scoping Study;

Ø Clear opportunity to reduce transport costs by developing lakes closer to infrastructure and by capturing economies of scale;

Ø Multi-lake production offers operational flexibility and protection from localised weather events;

Ø The very high level of technical validation already undertaken at Lake Wells substantially applies to the other lakes in the GSLP; and

Ø Potential co-product revenues, particularly where transport costs are lowest.

THE GOLDFIELDS SALT LAKES PROJECT

The nine lakes comprising the GSLP were selected for scale, potential brine volume, known hypersaline brine characteristics, and the potential for production from both shallow trenches and deeper paleochannel aquifer bores. Each has a large surface area, a flat and bare surface playa and proximity to the important transport and energy infrastructure and engineering expertise available in the Western Australian Goldfields.

The GSLP has a number of very important, favourable characteristics:

Paleochannel Hosted Brine Aquifers

The GSLP salt lakes are each part of typical Western Australian paleovalley environments. Ancient hydrological systems incised paleovalleys into Palaeozoic or older basement rocks, which were then infilled by Tertiary-aged sediments, typically comprising a coarse-grained fluvial basal sand, overlain by paleovalley clay with some coarser grained interbeds. The clay is overlain by recent Cainozoic material including lacustrine sediment, calcrete, evaporite and aeolian deposits.

There are two methods of extracting brine from aquifers. Firstly, low cost trenching from the surface aquifer and the secondly, extraction from the paleochannel basal aquifer via bores.

All the lakes in the GSLP offer very large paleochannel hosted brine aquifers, with brine chemistry amenable to evaporation of salts for SOP production.

Large Playa Surface

The lakes included in the GSLP have a surface area averaging 370km² and totaling over 3,300km². This large surface area and the occurrence of impermeable clays near the surface, provides the potential for constructing low cost, on-lake, unlined evaporation ponds.

As demonstrated at Lake Wells (refer to ASX Announcement dated 16 October 2017), this provides significant potential capex savings. The results from the evaporation pond trial at Lake Wells exceeded expectations and strongly validated SLP’s model for construction of on-lake, unlined evaporation ponds. Net seepage of 2.4mm per day in a test scale pond extrapolates to less than 0.125mm per day in a 400ha Demonstration Plant scale halite pond, a negligible inefficiency in the context of overall pond operations.

Preliminary excavation and sampling at Lakes Ballard, Irwin and Way also indicate the presence of clays amenable for pond construction near the lake surface.

Excellent Evaporation Conditions

The Goldfields has very favourable arid climatic conditions with annual Class A pan evaporation in the region around ~3,000mm per year. This compares favourably with other global brine projects currently in production.

Access to Transport, Energy and Other Infrastructure

The lakes of the GSLP are strategically located close to the regional transport and energy infrastructure corridor. Transport from site to port is the single largest cost factor for (export oriented) Australian salt lake SOP projects, and the GSLP has a considerable advantage in this regard, with excellent proximity to the Kalgoorlie-Leonora rail line and the Goldfields Highway. The Company has made substantial progress in understanding and optimising its transport proposition, with major economies of scale to be achieved as the production volume increases.

The table below sets out the straight-line and existing road distances to the nearest railhead for each lake.

Lake	Railhead	Straight-line Distance to Rail line (km)	Likely Road Haul Distance (km)
Lake Wells	Malcolm	270	318
Lake Way	Leonora	230	281
Lake Irwin	Leonora	85	170
Lake Ballard	Menzies	2	20
Lake Marmion	Menzies	20	47
Lake Minigwal	Kookynie	130	172
Lake Raeside	Leonora	20	20
Lake Noondie	Leonora	110	198
Lake Barlee	Menzies	130	133
Average		111	151

Table 2: Transportation Distances of the GSLP

The Goldfields Gas Pipeline also intersects the GSLP, passing close to a number of lakes, offering potential energy cost savings.

Multi-Lake Production

There is substantial potential for integration, economies of scale, operating synergies and overhead sharing in the GSLP across a number of producing lakes.

There is also the possibility of some important elements of the SOP production process such as compaction, agglomeration and packaging being centralised, probably adjacent to rail loading facilities.

The flexibility of multi-lake production is also appealing for a natural production process which is subject to climate variability, where the operating risk of individual high rainfall events is diminished over a portfolio of production lakes.

Technical Validation Already Undertaken at Lake Wells

At Lake Wells, the Company has tested and verified all the major technical foundations for production of SOP from Lake Wells brine to a standard previously unseen in Australia under actual site conditions and across all seasons.

These key technical achievements at Lake Wells will have significant application across the other lakes in the GSLP, given the similar geology, brine chemistry and climate conditions.

Lowest Quartile Capex and Opex

The Scoping Study on Lake Wells released in August 2016 (see ASX announcement dated 29 August 2016) highlighted the outstanding potential economics of extracting hypersaline brine by trenches and bores for solar evaporation of salts and processing to produce premium SOP. The Scoping Study indicates Lake Wells would be firmly in the lowest cost quartile for any SOP Project in Australia and around the world, with relatively low transport costs being a major advantage.

	Stage 1	Stage 2
Annual Production (tpa) – steady state	200,000	400,000
Capital Cost *	A$191m	A$39m
Operating Costs **	A$241/t	A$185/t
* Capital Costs based on an accuracy of -10%/+30% before contingencies and growth allowance but including EPCM. Stage 1 Capital Costs include most of the main capital items for 400,000tpa production. ** Operating Costs based on an accuracy of ±30% including transportation & handling (FOB Esperance) but before royalties and depreciation.

Table 3: Lake Wells Scoping Study

Lake Way is likely to offer material economic advantages even over Lake Wells due to proximity and availability of transport and other infrastructure and potential cost saving with the Matilda-Wiluna Gold Operation.

Production of Valuable Co-Products

Brine modelling and evaporation testwork has demonstrated that Lakes Wells, Irwin, Ballard and Way can produce potassium and magnesium salts amenable to conversion to SOP and also potentially other valuable co-products.

Kieserite (MgSO₄.H₂O) and Epsom salts (MgSO₄.7H₂O) are valuable fertiliser products for both the domestic and export markets, with particular application in the tropical crop regions in South East Asia, South America and Africa.

While magnesium nutrients have lower market value than SOP, they are potentially valuable co-products, particularity where transport costs are lowest, for example Lakes Ballard and Marmion.

Exploration Targets for MgSO₄.7H₂O (Epsom Salt) were calculated at the each lake, except Lake Wells, as follows:

	Stored (Mt)		Drainable (Mt)		Average Grade (kg/m³)
Lake	MgSO₄ (min)	MgSO₄ (max)	MgSO₄ (min)	MgSO₄ (max)	MgSO₄ (min)	MgSO₄ (max)
Ballard	667	949	51	320	58	82
Barlee	158	431	13	163	31	84
Irwin	145	304	11	106	27	57
Marmion	355	712	27	235	53	107
Minigwal	668	1,462	50	469	57	124
Noondie	308	488	23	154	37	58
Raeside	86	358	6	98	30	126
Way	151	339	15	125	49	105
Total	2,538	5,043	196	1,670	46	92

MgSO₄ = the molar mass of MgSO₄.7H₂0 based on a conversion ratio of 10.14 of Mg to MgSO₄.7H₂O.

Table 4: Magnesium Sulphate Exploration Target

APPENDIX 1 – EXPLORATION TARGET METHODOLOGY AND RESULTS

GSLP Exploration Targets:

Exploration Target calculated using Total Porosity:

Lake	Playa Area	Estimated Paleochannel Length	Sediment Volume	Brine Volume	Average Potassium Concentration kg/m³		SOP Tonnage Mt
	Km²	Km	Mm³	Mm3	Lower Estimate	Upper Estimate	Lower Estimate	Upper Estimate
Ballard	626	55	26,370	11,487	1.6	2.1	42	53
Barlee	350	60	11,455	5,107	0.8	1.9	10	21
Irwin	306	22	11,942	5,236	2.1	3.6	25	43
Marmion	339	35	15,294	6,626	1.3	2.3	20	34
Minigwal	567	100	27,166	11,716	1.7	3.7	45	98
Noondie	386	75	19,412	8,345	1.9	2.7	35	50
Raeside	89	35	6,775	2,844	0.9	3.1	6	20
Way	172	25	8,044	3,475	3.6	7.0	28	54
Wells	477	60	24,723	9,639	3.9		80	85
Total	3,312	467	151,181	64,474			290	458

Table 5: Exploration Target calculated using Total Porosity

Exploration Target calculated using Drainable Porosity:

Lake	Sediment Volume	Weighted Average Drainable Porosity ¹		Brine Volume		Average Potassium Concentration		SOP Tonnage
		Weighted Average Drainable Porosity ¹		Mm³		kg/m³		Mt
	Mm³	Sy Lower	Sy Upper	Lower Estimate	Upper Estimate	Lower Estimate	Upper Estimate	Lower Estimate	Upper Estimate
Ballard	26,370	0.03	0.15	882	3,913	1.6	2.1	3.1	18
Barlee	11,455	0.04	0.17	404	1,931	0.8	1.9	0.8	8
Irwin	11,942	0.03	0.15	408	1,844	2.1	3.6	1.9	15
Marmion	15,294	0.03	0.14	501	2,192	1.3	2.3	1.6	11
Minigwal	27,166	0.03	0.14	877	3,783	1.7	3.7	3.4	31
Noondie	19,412	0.03	0.14	619	2,645	1.9	2.7	2.8	16
Raeside	6,775	0.03	0.11	198	778	0.9	3.1	0.4	5
Way	8,044	0.04	0.15	299	1,196	2.8	7.1	2.7	19
Wells²	24,723	0.04	0.14	1,074	3,355	3.9		9	29
Total	151,181	0.03	0.14	5,262	21,637			26	153

1. Drainable Porosity was assigned to each geological unit per Table 9 Porosity Estimates. The volume weighted average value is presented here.

2. Incorporating Lake Wells’ total Mineral Resource Estimate previously reported.

Table 6: Exploration Target calculated using Drainable Porosity

The Company engaged an independent hydrogeological consultant with substantial salt lake brine expertise, Groundwater Science Pty Ltd, to complete the Exploration Targets for all the lakes in the GSLP.

Scope

The Exploration Target is a statement or estimate of the exploration potential of a mineral deposit in a defined geological setting where the statement of estimate, quotes as a range of tones and a range of grade (or Quality), relative to mineralisation for which there has been insufficient exploration to estimate a Mineral Resource. The potential quantity and grade is conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

The Exploration Targets are reported in accordance with

• the JORC Code 2012,

• the draft Guidelines for Resource and Reserve Estimation for Lithium and Potash Brines, developed by the Australia Association of Mining and Exploration Companies (AMEC), and

• the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Best Practice Guidelines for Resource and Reserve Estimation for Lithium Brines.

A Mineral Resource Estimate for Lake Wells has been reported (refer to ASX Announcements dated 11 November 2015 and 22 February 2016), comprising a total of 85Mt SOP. This estimate was calculated as the total in-situ resource based on the total porosity of the brine host aquifer. The resource has been re-calculated for this study based on the estimates of drainable porosity that are detailed below. The aim is to provide an estimate of mineralisation that is comparable to the proposed Exploration Targets and collate an inventory of the entire GSLP project.

Data sources

An exploration target for each lake has been defined by review of:

· All historic exploration data that has been released for the tenement, including drilling and geophysics;

· All public geology and hydrogeology reports, maps and data;

· Company hydrogeological reports obtained from the Western Australia Department of Water and Environmental Regulation via freedom of information request;

· Surface brine samples from test pits; and

· Test Pits, test excavation, and geophysical survey, undertaken by SLP.

Geology

Each playa lake exhibits reasonably consistent Tertiary paleovalley morphology as described in detail by Bell et al. (2012)^[1], Johnson et al. (1999)^[2], and DeBroekert and Sandiford (2005)^[3]. Paleovalleys are incised into the Palaeozoic or older basement rocks. These are then infilled by Tertiary-aged sediment typically comprising a coarse-grained fluvial Basal Sand overlain by Paleovalley Clay with some coarser grained interbeds. The clay is overlain by Cainozoic Alluvium, that includes lacustrine clay, calcrete, evaporite and aeolian deposits.

Geological Unit	Inferred age	Description	Hydrogeological Attributes
Lake surface and islands	Recent	Clay sediments with some sandy, evaporite and calcrete horizons containing variable abundance of evaporite minerals, particularly gypsum.	Minor aquifer. Highly variable permeability and moderate drainable porosity.
Alluvium	Cainozoic	Unconsolidated silt, sand and clay sediments.	Minor aquifer. Moderate permeability and moderate drainable porosity
Paleovalley clay	Tertiary (Miocene)	Stiff to plastic clay. Minor silt and sand interbeds	Aquitard. Low permeability and low drainable porosity
Basal sand	Tertiary (Eocene)	Typically fining upwards sequence of sand with silt, clay and lignitic interbeds.	Major aquifer. High to moderate permeability and High to moderate drainable porosity

Table 7: Geological Units

Geological Model

At each playa lake, the extent and thickness of each geological unit has been inferred from the available data. Differentiating each geological unit is important because each unit exhibits specific hydrogeological properties, permeability and drainable porosity as described below.

Area

The area of each playa lake was calculated by digitising the lake surface and removing area covered by islands. These areas are used to calculate the volume of the lake sediments. The extent of the brine body hosted by alluvium has been defined by the extent of the lake playa. Extension of the brine body beyond the lake playa edge in shallow sediment is possible but unsupported by data at this stage. Studies on other playa lakes have demonstrated that brine concentration quickly diminishes with distance from the playa edge. The mechanism for lower brine grade off the playa is understood to be dilution by rainfall infiltration and the absence of the intense evaporation that occurs on the playa surface.

The extent of the lower Paleovalley Clay and Basal Sand is based on the mapped distribution of paleovalleys across the Northern Goldfields by Johnson et al. (1999) and other studies. This has been used as the basis for determining paleovalley length. There has been additional geophysics undertaken at Lakes Ballard, Irwin and Marmion that provides a more accurate interpretation. At Lake Way, exploration drilling for the Mt Keith Borefield (AGC Woodward Clyde, 1992) has further confirmed the paleochannel extent and presence of the Basal Sand.

Thickness

Lake Sediments (Upper Alluvium)

The lake sediments are dominated by clay lacustrine deposits with abundant evaporite minerals, such as gypsum. The thickness of this unit is poorly resolved. An average thickness of 10m has been assumed. The 10m thickness of Lake sediments are also the maximum depth of dilution calculated beneath islands on the Playa Surface.

Alluvium

The alluvium comprises a mixed sequence of sheetwash, calcrete and aeolian deposits that underlie the lake sediments. It has been mapped by Johnson et al. (1999) as a channel fill deposit being similar in nature to that found in present-day outwash alluvial fans and minor creeks, and it extends and is present beyond the lake margins. The thickness is highly variable and is up to 60m thick in parts of the Raeside Paleovalley. An average thickness of 15m has been applied for the exploration target estimation.

Paleochannel Clay

The paleochannel clay is a stiff clay that confines the basal paleochannel sand. It has a variable thickness depending on whether a site is within a trunk (thicker) or tributary (thinner) paleovalley. The width is dependent on the basement material with wider channels in granitoid basement and narrower channels in greenstone lithologies. For the resource estimation, the thickness and width was determined based on nearby geological transects from Langford (1997) and Johnson et al. (1999), or other company drilling in the case of Lake Way.

Basal Sand

The basal sand is present in the deepest section of the paleovalley. It has a variable thickness with some sand sections being up to 40 m thick. The development of the sand is dependent on proximity to granitoid catchments with less sand thickness in catchments dominated by greenstone lithologies. As with the paleochannel clay, the thickness and width was determined based on nearby geological transects from Langford (1997) and Johnson et al. (1999), or other company drilling in the case of Lake Way. As an example, the conceptual model applied to a cross section at Lake Ballard developed by Langford (1997).

Brine Concentration

Brine concentration has been defined based on samples taken from test pits excavated into the Alluvium by SLP in 2017 (Appendix 3), and from historic drilling data where available. Minimum and Maximum values have been defined as the mean value +/- one standard deviation for sample sets of more than 10 samples. For sample sets of less than 10 samples, the minimum and maximum values have been used.

Where no brine chemistry data is available for the paleochannel sediments, brine concentration is assumed to be constant with depth. This assumption is supported by SLP’s experience at Lake Wells, other company reports for comparable paleochannel hosted brine in the Goldfields region, and work by Water and Rivers Commission and others. Proving this assumption by drilling and sampling is a priority for progressing evaluation of these targets.

Hydrogeological Attributes

Hydrogeological attributes assigned to each geological unit are summarised in Table 8.

The permeability of the Lake Sediments and Alluvium is expected to be variable. Permeability is dependent on the lithology of the sediment, development of evaporite minerals that can enhance permeability, and the development of calcrete minerals that can be extremely permeable.

Paleovalley Clay is a low permeability aquitard, brine held in this unit will not be drained by bores; however, some fraction of the brine stored in this unit might be accessed by leakage into the underlying basal sand.

Basal Sand is typically permeable, and brine is expected to be extracted by pumping from bores.

Geological Unit	Hydrogeological Properties
Lake Sediments	Highly variable aquifer dependent on lithology and evaporite formation
Alluvium	Highly variable aquifer dependent on lithology and evaporite formation
Paleovalley Clay	Aquitard low permeability
Basal Sand	Aquifer high permeability

Table 8: Hydrogeological Attributes

Porosity

Total porosity (Pt) relates to the volume of brine-filled pores contained within a unit volume of aquifer material. A fraction of this pore volume can by drained under gravity, this is described as the drainable porosity (or specific yield). The remaining fraction of the brine, which is held by surface tension and cannot be drained under gravity, is described as the specific retention (or un-drainable porosity).

A resource calculated as the product of drainable porosity is still not completely recoverable by gravity drainage to trenches or bores.

The reported mineral tonnage represents the brine with no recovery factor applied. It will not be possible to economically extract all the contained brine by pumping. The amount that can be extracted depends on many factors including the permeability of the sediments, adjacent groundwater composition, and the recharge dynamics of the aquifers. Brine projects typically recover a small fraction of the in-situ resource.

The total and drainable porosity of each geological unit has been estimated from lithology and benchmarking against other studies completed in comparable geological settings. A summary of the porosity assigned to each geological unit and the source of the estimates is presented in Table 9.

Benchmarking of the porosity applied in this study to other Australian salt lakes is presented in Table 10.

Geological Unit	Total Porosity (%)	Drainable Porosity (%)
Lake Sediments	0.46	0.04-0.2
Alluvium	0.46	0.04-0.2
Paleovalley Clay	0.4	0.01-0.05
Basal Sand	0.4	0.1-0.2

Table 9: Porosity Estimates

		Project
		WA Salt Lake 1 Mineral Resource Estimate	WA Salt Lake 2 Mineral Resource Estimate	WA Salt Lake 3 Mineral Resource Estimate	WA Salt Lake 4 Exploration Target	GSLP
Lake Sediments and Alluvium	Total Porosity	0.39	0.47	0.45	0.42-0.53	0.46
	Drainable Porosity	0.16	0.17	0.064	0.13-0.15	0.04-0.20
Clay	Total Porosity	0.47	0.5	–		0.4
	Drainable Porosity	0.06	0.03	–		0.01-0.05
Basal Sand	Total Porosity	0.4	0.4	–		0.4
	Drainable Porosity	0.23	0.28	–		0.1-0.20

Source: Company releases

Table 10: Porosity Benchmarks

Brine Hydrology and Water Balance

The brine hydrology and water balance of each playa lake is not yet defined at this early stage of project evaluation.

All the playa lakes are understood to flood intermittently following large rainfall events. This is based on information derived from a Geoscience Australia dataset that presents the frequency of inundation for the Australian continent based on analysis of Landsat TM images compiled since 1984 (GA, 2017)^[4].

Flooding and direct infiltration of rainfall will recharge the lake sediments and contribute to the water balance of the brine system.

Pumping from confined paleochannels results in depressurisation of the paleochannel and subsequent slow leakage of groundwater from the overlying clay aquitard and lateral inflow from the adjacent weathered basement aquifer. Studies of long-term water supply abstraction from the Roe paleochannel suggest sustainable water yields of around 1GL/year per 10km of paleochannel are possible (Johnson, 2007)^[5].

Neighbouring properties and temporal effects

Neighbouring properties and temporal effects have not been evaluated at this early stage of project development.

Treatment of Islands

Many of the salt lake playas contain islands on the playa surface. These islands generally comprise gypsiferous dunes and often exhibit some vegetation. They are more common in playas that are less frequently inundated Bowler, (1986)^[6],presumably due to the erosion that occurs through wave action during periods of inundation. Research on other playas has shown that the brine beneath islands is typically diluted close to the surface. The mechanism is understood to be dilution by infiltration of rainfall through the islands, without the subsequent intense evaporation that occurs on the playa surface. This dilution effect diminishes with depth.

Shallow dilution beneath islands is considered in the Exploration Target estimate by defining the area occupied by islands and reducing brine concentration beneath the islands by a factor of 3 to a depth of 10m.

Mineralisation Extent

Mineralisation is calculated for the area beneath the salt lake playa and islands only. There is in-sufficient data at each site to infer continuity of the mineralisation beyond the playa extent.

A summary of the geological and hydrogeological data review undertaken at each playa lake is presented below.

APPENDIX 2 – GSLP GEOLOGICAL AND HYDROGEOLOGICAL DATA REVIEW

LAKE BALLARD

Previous Exploration

A large amount of historical exploration work has been undertaken surrounding Lake Ballard focusing on gold, nickel and uranium. There has been limited exploration on the lake surface with most exploration associated with uranium exploration in the upper 10 m. Soil sampling was undertaken on the lake, as well as a number of geophysical surveys and shallow drilling activities. The Company has reviewed multiple publicly available documents to provide an understanding of the geology and hydrogeology in the Lake Ballard paleodrainage.

Esso Australia (1977) completed ground-based gravity and seismic geophysical survey at western end of lake suggesting the presence of the palaeovalley. Uranerz Australia (1977) undertook airborne spectrometric and ground-based scintillometric surveys that was followed by auger drilling with 81 holes being completed to depths of up to 30 m bgl, which suggested the shallow alluvium is dominated by clay lithologies and some drill holes encountered the top of the paleochannel clay. Uranoz Ltd (2007) completed an airborne gravity survey over the eastern portion of Lake Ballard and eastward over the northern portion of Lake Marmion that broadly mapped the distribution of the paleochannel thalweg.

The most useful hydrogeological data relates groundwater exploration undertaken by the Geological Survey of Western Australia (GSWA) in 1987. Three north-south transects were drilled between Lake Ballard and Lake Marmion to explore for the main trunk paleodrainage that originates to the west of Lake Ballard and flows to the east beneath Lakes Marmion and Rebecca. Drill holes were cased where possible; however, most holes into the deeper paleochannel sediments couldn’t be cased owing to running sands. There are some drill sites with multiple bores and different screen intervals. A bore completion report details the drilling and bore construction (Nidagal, 1992), while a description of the hydrogeology between the two lakes is provided by Langford (1997).

Geology

The Lake Ballard paleodrainage is incised into the Archean basement and now in-filled with a mixed sedimentary sequence. There is a shallow sedimentary sequence comprising lake sediments overlying alluvium and colluvium that concealed a deeper sedimentary sequence of plastic clay and basal sand. The paleochannel sands occur only in the deepest portion.

The lake sediments are thin being less than 2 to 3 m thick, which tend to interfinger and grade downward into an upper, iron-stained sequence of alluvium and colluvium (up to 30 m thick). This upper sequence appears to be more clayey with noticeably less sandy horizons, when compared with other paleodrainages to the north. Between Lakes Ballard and Marmion, there are clay layers (up to 20 m thick) being separated by sandy clay to clayey sand beds.

The understanding of the deep stratigraphy in the paleovalley is limited to three drilling transects between Lakes Ballard and Marmion. The lower Tertiary-aged paleochannel sequence comprises dense plasticine clay (60m thick) and basal sands (up to 20m thick). In places, there are silcrete and sandy intervals within the plasticine clay providing a different stratigraphy to other paleodrainages.

Hydrogeology

The upper alluvium and colluvium is likely to be a minor aquifer associated with Lake Ballard, and in some places may form an aquitard. The basal sands are confined beneath the plastic clay and comprise fine to coarse-grained quartz sand, which forms a deeper aquifer being about 80m bgl in the west (estimated from ground-based geophysics) and about 110m bgl at the east of Lake Ballard. There has been no hydraulic testing of the shallow or deep aquifers at Lake Ballard; however, bore yields will be higher from the basal sands.

References

Esso Exploration and Production Australia Inc, 1977, 1999 Annual (Final) Report, Lake Ballard – Project 650, Mineral Claims 29/2988-3000, 29/3059 and 3060, 30/1249-1253, and 30/1266-1270 – unpublished report by Esso Australia, WAMEX A7536.

Langford, R., 1997, Hydrogeology of part of the Rebecca Palaeodrainage between Lake Ballard and Lake Marmion in the northeastern Goldfields of Western Australia, unpublished thesis for Master of Science (Applied Geology) at Curtin University.

Nidagal, V., 1992, Lake Ballard palaeodrainage groundwater investigation bore completion reports, Western Australia Geological Survey, Hydrogeology Report 1989/18, unpublished.

Uranerz Australia, 1977, Final Report covering the period from 10/12/1976 to 1/11/1977, Temporary Reserve No 6400H, unpublished report by Uranerz Australia, WAMEX A7330.

Uranoz Ltd, 2007, E59/599 – Goongarrie Project, Annual Technical Report, Period Ending December 18, 2007: Report compiled by Mark Gordon of Gondor Geoconsult Pty Ltd in December 2007, unpublished report for Uranoz Ltd, WAMEX A76810.

LAKE BARLEE

Previous Exploration

There has been limited exploration on the lake surface with most exploration associated with uranium exploration in the upper 10m. Soil sampling was undertaken on the lake, as well as a number of geophysical surveys and shallow drilling activities (Jervois Mining, 2013; Northern Uranium, 2008). The Company has reviewed multiple publicly available documents to provide an understanding of the geology and hydrogeology in the Lake Barlee paleodrainage.

Recent potash exploration work by Parkway Minerals on their tenements to the north of SLP tenements suggest the presence of a paleochannel feature (Parkway Minerals, 2017). There has been no drilling to date, but geophysics results indicate the combined depth of the paleovalley is about 75m (Parkway Minerals, 2017) being shallower than other paleodrainages as it is close to its headwaters.

Geology

There is little known about the stratigraphy in the Barlee Paleodrainage, as there has been no regional assessment undertaken. The paleovalley becomes shallower towards its headwaters in the west and south; as such it is possible that it is about 50m deep beneath the SLP tenements.

The paleodrainage is incised into the Archean basement and now in-filled with a mixed sedimentary sequence. Lake sediments are thin being less than 2 to 3m thick, which tend to interfinger and grade downward into an upper, iron-stained sequence of alluvium and colluvium (up to 30m thick). This shallow sedimentary sequence may conceal a deeper sedimentary sequence of plastic clay and basal sand. The presence of the paleochannel sands is unknown; however, if present they will occur in the deepest portion.

Hydrogeology

The upper alluvium and colluvium is likely to be a minor aquifer, and in some places may form an aquitard. Basal sands comprise fine to coarse-grained quartz sand may be confined beneath plastic clay and form a deeper aquifer. There has been no hydraulic testing of the shallow or deep aquifers at Lake Barlee; however, bore yields are likely to be higher from the basal sands.

References

Jervois Mining, 2013, Bulga Project, Final Surrender Report for period 6th September to 22nd May 2013, unpublished report, WAMEX A98133.

Northern Uranium, 2008, Annual Report for the Lake Barlee Project, Exploration Licence E77/1331, unpublished report, WAMEX A77895.

Parkway Minerals, 2017, Parkway Minerals announces seismic survey at Lake Barlee confirms deep paleo-channels, ASX announcement by Parkway Minerals, 17 October 2017.

LAKE IRWIN

Previous Exploration

Significant historical exploration work has been completed in the Lake Irwin area focusing on nickel and gold. This exploration work was largely undertaken in the basement lithologies surrounding the lake; however, there has been no substantial exploration on the lake.

The most useful stratigraphic and hydrogeological data relates to groundwater exploration undertaken by the Water and Rivers Commission (WRC) in 1997 and 1998. Three investigation transects were completed surrounding and across Lake Irwin. Transect B located across the middle of the lake failed to encounter the main trunk paleodrainage and is somewhat inconclusive. Transect C in the northwest encountered a palaeotributary with basal sand between 80 and 90 m bgl. Transect D located to the north of the lake encountered the basal sand between 110 and 140 m bgl. A bore completion report details the drilling and bore construction (Johnson et al., 1998), while a regional description of the hydrogeology is provided by Johnson et al. (1999).

Geology

The Carey paleodrainage, passing beneath Lake Irwin, is incised into the Archean basement and now in-filled with a mixed sedimentary sequence. There is a shallow sedimentary sequence comprising lake sediments overlying alluvium and colluvium that concealed a deeper sedimentary sequence of plastic clay and basal sand. The paleochannel sands occur only in the deepest portion.

The stratigraphy comprises thin lake sediments overlying an upper interbedded sequence of alluvium and colluvium (30m thick), and a lower Tertiary-aged paleochannel sequence of dense plasticine clay (50 to 60m) and basal sands (20 to 30m thick) that is surrounded by Archaean granite and greenstone basement.

Hydrogeology

The upper alluvium and colluvium is considered a minor aquifer owing to the fine-grained nature of the sediments and lack of thick sandy / gravel horizons. This aquifer is present beneath the entire lake surface. Direct hydraulic testing is limited; however, bore yields are likely to be low in the order of 1 to 2 L/sec and up to 5 L/sec in some cases. It is utilised by the pastoral industry for stock watering with bores and wells.

The deeper paleochannel sand is an important regional aquifer that is widely developed by the mining industry for meeting process water requirements. The thalweg of the trunk paleochannel appears to be about 1 to 2 km northeast of the lake, and only paleotributaries on the western side are present the current lake surface. In these paleotributaries, there are two production borefields (Charlie Well and Greymare) operated by Minara Resources’ Murrin Murrin operation. Long-term bore yields are commonly between 10 and 15 L/sec with up to 20 L/sec in the thickest thalweg sections.

References

Johnson, S., Mohsenzadeh, H., Yesterener, C., and Koomberi, H., 1998, Northern Goldfields regional groundwater assessment bore completion reports: Western Australia Water and Rivers Commission, Hydrogeology Report 107, unpublished.

Johnson, S., Commander, D., and O’Boy, C., 1999, Groundwater resources of the Northern Goldfields, Western Australia: Western Australia Water and Rivers Commission, Hydrogeological Record Series, Report HG2, 57p.

LAKE MARMION

Previous Exploration

A large amount of historical exploration work has been undertaken surrounding Lake Marmion focusing on gold, nickel and uranium. There has been limited exploration on the lake surface with most exploration associated with uranium exploration in the upper 10m. The Company has reviewed multiple publicly available documents to provide an understanding of the geology and hydrogeology in the paleodrainage beneath Lake Marmion.

Reports from previous tenement holders detailing mineral exploration programs provided useful data on the location of the paleochannel, and thickness / nature of the lake sediments. There have been a range of exploration activities including wide-spaced gravity surveys and some drilling at the western and eastern lake margins.

There have been several gravity surveys across the lake that have provided an understanding of the distribution of the paleochannel. The most recent surveys by Uranoz Ltd (2007a, b and c), Nickleore Ltd (2008) and Siburan Resources (2011a, b, c and 2012) suggest that the main trunk drainage takes a meandering path beneath the northern parts of the lake that merges with a large palaeotributary from the south.

Geology

There have been no regional studies on the Ballard-Marmion-Rebecca Paleodrainage – unlike the paleodrainages to the north (Johnson et al., 1999) and to the south (Commander et al., 1992). Despite this, there is high level of confidence that the main trunk drainage traverses the northern portion of the lake from Lake Ballard to Boomerang Lake / Lake Rebecca in the east, and there is also a large paleotributary from the south. The stratigraphy seems to broadly align with other paleodrainages in the northern Goldfields.

Lake sediments are probably thin being less than 2 to 3m thick, which tend to interfinger and grade downward into an upper, iron-stained sequence of alluvium and colluvium (up to 30m thick). This upper sequence may be more clayey with noticeably less sandy horizons, when compared with other paleodrainages to the north. Between Lakes Ballard and Marmion, there are clay layers (up to 20m thick) being separated by sandy clay to clayey sand beds.

The understanding of the deep stratigraphy is based on the drilling undertaken at the lake margins. In the northwest, one incomplete and shallow drilling transect was completed by AFMECO (1978 a and b) and three drilling transects were completed by the GSWA between Lakes Ballard and Marmion with detailed lithological descriptions in the bore completion reports (Nidagal, 1992) and interpreted stratigraphy for each transect (Langford, 1997). This drilling suggests a total thickness of about 80m with 20m of alluvium / colluvium overlying 45m of plasticine clay and 15m of basal sands. There are silcrete and sandy intervals at the base of the alluvium / colluvium and throughout the plasticine clay that provides a different stratigraphy to other paleodrainages.

Hydrogeology

The upper alluvium and colluvium is considered a minor aquifer owing to the dominance of clay lithologies and lack of thick sandy / gravel horizons. It is present beneath the entire lake surface. There has been no direct hydraulic testing with bore yields to be very low, less than 1 L/sec. In places, discrete bodies of calcrete are present that form localised aquifers; however, these bodies are less common near Menzies when compared with areas to the north. Groundwater resources in this shallow aquifer will be more likely accessed via leakage rather than direct abstraction.

The deeper paleochannel sand is an important regional aquifer that is widely developed by the mining industry to the north; however, there has been no utilisation in the vicinity of Lake Marmion. Long-term bore yields are commonly between 10 and 15 L/sec with up to 20 L/sec in the thickest thalweg sections.

References

AFMECO, 1978a, Yilgarn Drainage, Temporary Reserve 6402H, West Lake Marmion, Annual Report, Report WA 275F, February 1978, unpublished report, WAMEX 7573.

AFMECO, 1978b, Yilgarn Drainage, Temporary Reserve 6402H, West Lake Marmion, Final Report, Report WA 275F, July 1978, unpublished report, WAMEX 7945.

Commander, D.P., Kern, A.M. and Smith, R.A., 1992, Hydrogeology of the Tertiary Palaechannels in the Kalgoorlie Region (Roe Palaeodrainage): Western Australia Geological Survey, Record 1991/10.

Nickleore Ltd., 2008, E29/634 (Lake Marmion), 2008 Annual Report, 12 April 2007 to 11 April 2008, unpublished report, WAMEX 79044.

Nidagal, V., 1992, Lake Ballard palaeodrainage groundwater investigation bore completion reports, Western Australia Geological Survey, Hydrogeology Report 1989/18, unpublished.

Siburan Resources, 2011a, Lake Marmion Project, Annual Report, Exploration Licence E29/756, Western Australia, Reporting period 19 August 2010 to 18 August 2011, unpublished report, WAMEX 91660.

Siburan Resources, 2011b, Lake Marmion Project, Annual Report, Exploration Licence E29/757, Western Australia, Reporting period 18 November 2010 to 17 November 2011, unpublished report, WAMEX 92276.

Siburan Resources, 2011c, Gravity surveys outline new uranium prospective paleochannels at Lake Marmion Project, ASX announcement.

Siburan Resources, 2012, Lake Marmion Project, Annual Report, Exploration Licences E29/637, E29/756-757, E29/773, E29/778-780, E29/782, E31/939-940, E31/976-977, Reporting period 5 July 2011 to 4 July 2012, unpublished report, WAMEX 95065.

Uranoz Ltd., 2007a, Goongarrie Project, E59/598, Annual Technical Report, Period Ending November 14, 2007: Report prepared by Mark Gordon of Gondor Geoconsult Pty Ltd in December 2007, unpublished report, WAMEX 76809.

Uranoz Ltd., 2007b, Goongarrie Project, E59/599, Annual Technical Report, Period Ending December 18, 2007: Report prepared by Mark Gordon of Gondor Geoconsult Pty Ltd in December 2007, unpublished report, WAMEX 76810.

Uranoz Ltd., 2007c, Goongarrie Project, E59/600, Annual Technical Report, Period Ending December 18, 2007: Report prepared by Mark Gordon of Gondor Geoconsult Pty Ltd in December 2007, unpublished report, WAMEX 76811.

LAKE MINIGWAL

Previous Exploration

A large amount of historical exploration work has been undertaken in the area to the north of Lake Minigwal focusing on gold, nickel and uranium. The Company has reviewed multiple publicly available documents to develop an understanding of the geology and hydrogeology in the paleodrainage beneath the lake itself.

Mineral exploration has been undertaken surrounding the lake margins with minimal activity on or beneath the lake surface. There has been some drilling near the eastern portion of the lake (Uranerz, 1983); however, there was no reporting of lithology in these drill holes. Uranerz Pty Ltd (1987) focused on a tributary near Jasper Hill that flows in Lake Minigwal with a drill hole encountering shallow paleochannel sediments. An AEM (airborne electromagnetic) survey has been undertaken over the project area by Camuco Pty Ltd (2008): however, there were issues with near-surface conductivity masking. It was concluded that there is limited data from geophysical surveys and drilling activities that contribute to paleochannel interpretation at Lake Minigwal.

Geology

There is limited understanding of the deep stratigraphy beneath Lake Minigwal. In the available dataset, there are no drill holes that fully penetrate the Tertiary sequence with the deepest holes being about 60m bgl that were ceased in paleochannel clay. Granny Smith Mines (1999) noted that there are 120m deep paleochannels beneath Lake Carey near Wallaby deposit and it is assumed that this is the same paleochannel beneath Lake Minigwal.

Beneath 20 to 30m of alluvium and colluvium, there is a Tertiary-aged paleochannel sequence comprising dense plasticine clay (50 to 60m) and basal sands (10 to 20m thick) that are incised into the Archaean granite and greenstone basement. In places, there may be silcrete and sandy intervals within the plasticine clay. The basal sands are commonly fine to coarse-grained sand.

Hydrogeology

The upper alluvium and colluvium is considered a minor aquifer, which is present beneath the entire lake surface. There has been no direct hydraulic testing with bore yields to be low, less than 3 L/sec. In places, there may be discrete bodies of calcrete that form localised aquifers. Groundwater resources in this shallow aquifer may be directly abstracted from sandy intervals, but more likely via downward leakage.

The deeper paleochannel sand is an important regional aquifer that is widely developed by the mining industry to the north, in particular Granny Smith Mines at Lake Carey. Production bores are screened in the permeable basal sand and gravels. Long-term bore yields are commonly between 10 and 15 L/sec with up to 20 L/sec in the thickest thalweg sections

References

Camuco Pty Ltd, 2008, Annual Report for the Minigwal Project comprising ELs 39/1185, 39/1186, 39/1187, unpublished report, WAMEX A77594.

Granny Smith Mines, 1999, Lake Carey Project, E38/447, E38/448, E38/457, E39/387, E39/389 & E39/483, Mount Margaret Mineral Field, Western Australia, Sixth Annual Report on Exploration, Period ending 30th June 1999, Ref: M7959, unpublished report, WAMEX A59288.

Uranerz Pty Ltd, 1983, Final report on Exploration Licence 38/13, Rason Lake Area, Western Australia, Covering the Period 30 March 1983 to 4 November 1983, unpublished report, WAMEX A12985.

Uranerz Pty Ltd, 1987, Surrender Report on Exploration Licence 39/87, Lake Minigwal, Western Australia, Covering the period 23 March 1986 to 22 March 1987, unpublished report, WAMEX A20809.

LAKE NOONDIE

Previous Exploration

Previous diamond, gold and uranium exploration has been conducted in the vicinity of Lake Noondie. There has been limited exploration on the lake surface with most exploration associated with uranium exploration in the upper 10m. Soil sampling was undertaken on the lake, as well as a number of geophysical surveys and shallow drilling activities (Hemisphere, 2010, 2011; Mindax, 2008). The Company has reviewed multiple publicly available documents to provide an understanding of the geology and hydrogeology in the Lake Noondie paleodrainage.

Geology

There is little known about the stratigraphy in the Noondie Paleodrainage, as there have been no regional studies unlike the paleodrainages to the east (Johnson et al., 1999). The closest drill transect (Transect R) completed by the Water and River Commission (Johnson et al., 1999) is about 40km to the east. This drilling suggests the presence of a full paleochannel stratigraphy with a combined thickness of 130m.

The paleodrainage is incised into the Archean basement and now in-filled with a mixed sedimentary sequence. Lake sediments are thin being less than 2 to 3m thick, which tend to interfinger and grade downward into an upper, iron-stained sequence of alluvium and colluvium (up to 30m thick). This shallow sedimentary sequence conceals a deeper sequence of plastic clay and basal sand. The paleochannel sands will occur in the deepest portion and may be 20 to 30m thick.

Hydrogeology

The upper alluvium and colluvium is likely to be a minor aquifer associated with Lake Noondie. Basal sands comprise fine to coarse-grained quartz sand that are confined beneath plastic clay and form a deeper aquifer. There has been no hydraulic testing of the shallow or deep aquifers at Lake Noondie; however, bore yields will be higher from the basal sands.

References

Hemisphere Resources Ltd., 2010, Combined reporting group C61/2009, Bulga Downs Project, Exploration Licences E57/720, E57/721, E57/722, E57/762, E57/763, E57/781 and E57/782, Western Australia, Annual Report for the year ended 13 April 2010, unpublished report, WAMEX A87235.

Hemisphere Resources Ltd., 2011, Combined reporting group C61/2009, Bulga Downs Project, Exploration Licences E57/720, E57/721, E57/722, E57/762, E57/763, E57/781 and E57/782, Western Australia, Annual Report for the year ended 13 April 2011, unpublished report, WAMEX A90598.

Mindax Ltd, 2008, Lake Noondie Project, Combined Annual Report for Exploration Licenses E57/602 (Lake Noondie West), E57/603 (Lake Noondie East) and E57/619 (Bill Well), Black Range District, East Murchison Mineral Field for the period 1st January 2007 and 31st December 2007, unpublished report, WAMEX A77744.

LAKE RAESIDE

Previous Exploration

A large amount of historical exploration work has been undertaken in the vicinity of Lake Raeside focusing on gold, limestone, nickel and uranium. There has been limited exploration on the lake surface with most exploration associated with limestone and uranium exploration in the upper 10m at the lake margins. Soil sampling was undertaken on the lake, as well as a number of geophysical surveys and shallow drilling activities. The Company has reviewed multiple publicly available documents to develop an understanding of the geology and hydrogeology in the paleodrainage beneath the lake itself.

The Water and Rivers Commission completed a regional groundwater resource assessment of the paleodrainages in the Northern Goldfields in 1997 and 1998. As part of this assessment, a drilling transect (Transect Q) was installed about 5 km north of Lake Raeside along the Ida Valley Road that encountered a full paleochannel stratigraphy with a combined thickness of 130 m (Johnson et al., 1999).

Geology

The paleodrainage is incised into the Archean basement and now in-filled with a mixed sedimentary sequence. Lake sediments are thin being less than 2 to 3 m thick, which tend to interfinger and grade downward into an upper, iron-stained sequence of alluvium and colluvium (up to 30 m thick). This shallow sedimentary sequence conceals a deeper sequence of plastic clay and basal sand. The paleochannel sands occur in the deepest portion, may be 20 to 30 m thick, and are present beneath the current lake surface

Hydrogeology

The upper alluvium and colluvium is likely to be a minor aquifer, and in some places may form an aquitard. The presence of calcrete at the margins suggests that there may be calcrete aquifer horizons within the upper 10 m. Beneath the plastic clay, basal sands comprise fine to coarse-grained quartz sand that forms a potential deeper aquifer. There has been no hydraulic testing of the shallow or deep aquifers at Lake Raeside; however, bore yields will be higher from the basal sands.

References

LAKE WAY

Previous Exploration

Groundwater exploration was undertaken in the early 1990s by AGC Woodward Clyde to locate and secure a process water supply for WMC Resources Limited’s Mt Keith nickel operation. There was a wide and extensive program of exploration over 40km of paleodrainage that focused on both the shallow alluvium and deeper paleochannel aquifers.

Geology

Hydrogeology

The shallow aquifer comprises a mixture of alluvium, colluvium and lake sediments extending beyond the lake playa and continuing downstream. Five test production bores were developed, of which two are within SLP’s tenements. CRT bore yields ranged from 520 kL/day up to 840 kL/day in permeable coarse-grained sand.

References

AGC Woodward-Clyde Pty Ltd, 1992, Mt Keith Process Water Supply, Lake Way Area, Volume 1, Contained within WMC Resources, Partial Surrender Report for the period 8 December 1992 to 7 December 1995, unpublished report, WAMEX A48586.

Tenements

The GSLP tenements are detailed in the Table below:

Project

Status

License Number

Area (km²)

Term

Grant Date

Date of First Relinquish-ment

Interest

Western Australia

Lake Wells

Central

Granted

E38/2710

192.2

5 years

05-Sep-12

4-Sep-17

100%

South

Granted

E38/2821

131.5

5 years

19-Nov-13

18-Nov-18

100%

North

Granted

E38/2824

198.2

5 years

04-Nov-13

3-Nov-18

100%

Outer East

Granted

E38/3055

298.8

5 years

16-Oct-15

16-Oct-20

100%

Single Block

Granted

E38/3056

3.0

5 years

16-Oct-15

16-Oct-20

100%

Outer West

Granted

E38/3057

301.9

5 years

16-Oct-15

16-Oct-20

100%

North West

Granted

E38/3124

39.0

5 years

30-Nov-16

29-Nov-21

100%

West

Granted

L38/262

113.0

20 years

3-Feb-17

2-Feb-38

100%

East

Granted

L38/263

28.6

20 years

3-Feb-17

2-Feb-38

100%

South West

Granted

L38/264

32.6

20 years

3-Feb-17

2-Feb-38

100%

South

Application

L38/287

95.8

–

100%

South Western

Granted

E38/3247

350.3

5 years

25-Jan-18

24-Jan-23

100%

South

Application

M38/1278

87.47

–

100%

Lake Ballard

West

Granted

E29/912

607.0

5 years

10-Apr-15

10-Apr-20

100%

East

Granted

E29/913

73.2

5 years

10-Apr-15

10-Apr-20

100%

North

Granted

E29/948

94.5

5 years

22-Sep-15

21-Sep-20

100%

South

Granted

E29/958

30.0

5 years

20-Jan-16

19-Jan-21

100%

South East

Granted

E29/1011

68.2

5 years

11-Aug-17

10-Aug-22

100%

South East

Granted

E29/1020

9.3

5 years

21-Feb-18

20-Feb-23

100%

South East

Granted

E29/1021

27.9

5 years

21-Feb-18

20-Feb-23

100%

South East

Granted

E29/1022

43.4

5 years

21-Feb-18

20-Feb-23

100%

Lake Irwin

West

Granted

E37/1233

203.0

5 years

08-Mar-16

07-Mar-21

100%

Central

Granted

E39/1892

203.0

5 years

23-Mar-16

22-Mar-21

100%

East

Granted

E38/3087

139.2

5 years

23-Mar-16

22-Mar-21

100%

North

Granted

E37/1261

107.3

5 years

14-Oct-16

13-Oct-21

100%

Central East

Granted

E38/3113

203.0

5 years

14-Oct-16

13-Oct-21

100%

South

Granted

E39/1955

118.9

5 years

14-Oct-16

13-Oct-21

100%

North West

Application

E37/1260

203.0

–

100%

South West

Application

E39/1956

110.2

–

100%

Lake Minigwal

West

Granted

E39/1893

246.2

5 years

01-Apr-16

31-Mar-21

100%

East

Granted

E39/1894

158.1

5 years

01-Apr-16

31-Mar-21

100%

Central

Granted

E39/1962

369.0

5 years

8-Nov-16

7-Nov-21

100%

Central East

Granted

E39/1963

93.0

5 years

8-Nov-16

7-Nov-21

100%

South

Granted

E39/1964

99.0

5 years

8-Nov-16

7-Nov-21

100%

South West

Application

E39/1965

89.9

–

100%

Lake Way

Central

Granted

E53/1878

217.0

5 years

12-Oct-16

11-Oct-21

100%

South

Application

E53/1897

77.5

–

100%

Lake Marmion

North

Granted

E29/1000

167.4

5 years

03-Apr-17

02-Apr-22

100%

Central

Granted

E29/1001

204.6

5 years

03-Apr-17

02-Apr-22

100%

South

Granted

E29/1002

186.0

5 years

15-Aug-17

14-Aug-22

100%

West

Granted

E29/1005

68.2

5 years

11-Jul-17

10-Jul-22

100%

Lake Noondie

North

Application

E57/1062

217.0

–

100%

Central

Application

E57/1063

217.0

–

100%

South

Application

E57/1064

55.8

–

100%

West

Application

E57/1065

120.9

–

100%

East

Application

E36/932

108.5

–

100%

Lake Barlee

North

Application

E49/495

217.0

–

100%

Central

Granted

E49/496

220.1

5 years

17-Dec-17

16-Dec-22

100%

South

Granted

E77/2441

173.6

5 years

09-Oct-17

08-Oct-22

100%

Lake Raeside

North

Application

E37/1305

155.0

–

100%

Northern Territory

Lake Lewis

South

Granted

EL 29787

146.4

6 years

08-Jul-13

7-Jul-19

100%

North

Granted

EL 29903

125.1

6 years

21-Feb-14

20-Feb-19

100%

Competent Persons Statement

The information in this report that relates to Exploration Results, Exploration Targets or Mineral Resources is based on information compiled by Mr Ben Jeuken, who is a member Australian Institute of Mining and Metallurgy. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr Jeuken has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Jeuken consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward Looking Statements

APPENDIX 2A – LAKE RAESIDE BRINE CHEMISTRY ANALYSIS

HOLE ID	East	North	From (m)	To (m)	K (mg/L)	Cl (mg/L)	Na (mg/L)	Ca (mg/L)	Mg (mg/L)	SO₄ (mg/L)	TDS (g/L)
S700001	315501	6807912	0	1	2,270	138,200	82,000	1,020	5,420	10400	241
S700005	311513	6809765	0	1	1,440	73,000	44,000	1,500	3,390	8400	133
S700007	307959	6811061	0	1	2,180	115,350	68,700	1,060	5,330	11500	208
S700011	300035	6813662	0	1	2,240	149,850	87,900	603	8,690	17600	273
S700013	278641	6810996	0	1	3,140	167,950	96,900	409	12,400	27400	317
S700015	281725	6810666	0	1	950	55,550	34,100	600	3,130	8730	104
S700017	287751	6812747	0	1	2,230	124,500	74,100	789	6,510	15400	228

APPENDIX 2B – LAKE NOONDIE BRINE CHEMISTRY ANALYSIS

HOLE ID	East	North	From (m)	To (m)	K (mg/L)	Cl (mg/L)	Na (mg/L)	Ca (mg/L)	Mg (mg/L)	SO₄ (mg/L)	TDS (g/L)
N700004	713808	6828889	0	1	2,630	131,000	78,600	785	5,310	13,700	232
N700008	720566	6832676	0	1	2,350	125,050	75,300	822	5,230	13,900	223
N700010	727256	6836907	0	1	2,390	125,050	75,400	796	4,950	14,300	222
N700012	734532	6837014	0	1	2,740	130,150	80,400	821	4,370	13,400	231
N700014	740408	6837916	0	1	2,030	121,050	71,500	802	5,330	12,900	212
N700016	741574	6840505	0	1	1,900	92,800	54,900	522	3,700	8,640	162
N700018	750994	6847653	0	1	2,340	135,400	76,600	754	5,870	14,200	234
N700020	754948	6851513	0	1	2,470	111,750	67,700	949	4,240	12,100	197
N700022	765001	6857294	0	1	2,600	128,550	73,600	1,050	4,810	10,200	222
N700024	781493	6855076	0	1	2,030	101,200	58,600	1,390	3,800	8,490	172

APPENDIX 2C – LAKE MINIGWAL BRINE CHEMISTRY ANALYSIS

HOLE ID	East	North	From (m)	To (m)	K (mg/L)	Cl (mg/L)	Na (mg/L)	Ca (mg/L)	Mg (mg/L)	SO₄ (mg/L)	TDS (g/L)
M700002	462878	6753653	0	1	1,900	154,200	96,600	706	5,900	14,300	267
M700004	465178	6751680	0	1	2,160	168,450	104,000	658	5,710	12,900	288
M700006	516470	6735650	0	1	2,270	143,150	89,300	523	7,210	23,000	261
M700008	518949	6731636	0	1	1,850	138,950	87,100	594	7,580	20,500	250
M700010	520783	6728495	0	1	1,990	145,100	91,700	499	8,110	24,300	267
M700011	477839	6749646	0	1	2,470	176,750	106,000	539	7,030	15,700	311
M700013	482455	6738102	0	1	2,610	165,500	103,000	310	7,290	31,800	323
M700015	488600	6734506	0	1	2,040	126,450	75,300	648	6,120	19,200	237
M700017	507653	6736762	0	1	1,750	134,000	79,600	526	8,160	23,200	257
M700019	527552	6726613	0	1	1,750	149,850	84,800	549	7,890	18,300	274
M700023	505953	6742473	0	1	3,810	167,750	92,400	375	11,700	26,700	316
M700025	509570	6745818	0	1	2,850	151,400	80,300	456	10,900	23,900	285
M700027	504869	6753891	0	1	3,800	133,450	78,800	500	7,990	24,900	259
M700029	504869	6753891	0	1	3,740	149,300	82,700	402	12,500	32,100	292

APPENDIX 2D – LAKE BARLEE BRINE CHEMISTRY ANALYSIS

HOLE ID	East	North	From (m)	To (m)	K (mg/L)	Cl (mg/L)	Na (mg/L)	Ca (mg/L)	Mg (mg/L)	SO₄ (mg/L)	TDS (g/L)
E700003	766001	6706841	0	1	1920	146800	81100	726	8180	13400	250500
E700005	764573	6716740	0	1	1680	145950	81500	677	8470	14200	250900
E700011	761574	6746205	0	1	1720	132450	78700	1000	5680	10900	228850
E700013	754538	6747013	0	1	1150	93300	54500	477	3890	7200	158200
E700017	758045	6747653	0	1	1400	98400	59000	978	3480	7680	169350
E700021	737684	6727502	0	1	860	65750	38800	554	3110	6060	113950
E700023	742095	6731966	0	1	1460	129100	76900	990	5400	11000	223650

APPENDIX 2E – LAKE WAY BRINE CHEMISTRY ANALYSIS

“Lake Way” series Chemistry data extracted from AGC Woodward-Clyde Pty Ltd, 1992, Mt Keith Process Water Supply, Lake Way Area, Volume 1, Contained within WMC Resources, Partial Surrender Report for the period 8 December 1992 to 7 December 1995, unpublished report, WAMEX A48586.

HOLE ID	Aquifer	East	North	K (mg/L)	Cl (mg/L)	Na (mg/L)	Ca (mg/L)	Mg (mg/L)	SO₄ (mg/L)	TDS (g/L)
Lake Way 2/4	Paleochannel	255050	7020250	5,200	120,000	68,000	600	6,700	6,700	220
Lake Way 3/4	Paleochannel	247700	7032150	6,300	130,000	83,000	520	8,200	8,200	260
Lake Way 3/5	Paleochannel	247700	7032150	3,400	75,000	49,000	510	5,000	5,000	160
Lake Way 3/14	Paleochannel	245050	7029800	5,300	130,000	70,000	440	7,400	7,400	240
Lake Way 5/6	Paleochannel	241750	7035300	6,100	130,000	77,000	570	7,000	7,000	240
Lake Way 2/4	Clay	255050	7020250	3,800	78,000	49,000	930	3,400	3,400	150
Lake Way 2/6	Clay	254250	7019550	3,400	64,000	38,000	1,100	2,500	2,500	120
Lake Way 2/7	Clay	253300	7018850	3,000	56,000	37,000	930	2,900	2,900	120
Lake Way 3/1	Clay	248420	7032900	1,500	42,000	28,000	450	3,400	3,400	88
Lake Way 3/4	Clay	247700	7032150	2,200	49,000	31,000	750	3,900	3,900	110
Lake Way 5/7	Clay	242800	7034250	6,000	130,000	73,000	510	7,100	7,100	240
Y700002	Surficial	237500	7031600	8,110	149,750	86,800	359	8,930	30,600	288
Y700004	Surficial	235968	7036128	6,950	124,750	74,200	503	7,280	28,000	240
Y700006	Surficial	237015	7039115	6,980	132,800	79,200	445	8,470	31,800	258
Y700008	Surficial	240508	7036136	6,440	142,100	78,300	407	12,000	33,000	274
Y700010	Surficial	241352	7031891	7,210	127,200	72,800	593	6,630	22,500	238
Y700012	Surficial	241855	7026999	7,090	114,750	67,000	638	5,450	21,900	216
Y700020	Surficial	245022	7027585	6,930	123,700	73,000	624	6,440	22,100	231
Y700022	Surficial	246105	7024796	5,160	109,300	59,700	803	6,670	17,300	201

APPENDIX 3 – JORC TABLE ONE

Section 1: Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling techniques	Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	Sampling was undertaken using test pits excavated into the playa surface to a depth of approximately 1m.
Drilling techniques	Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	Not Applicable
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	Brine samples were obtained from all test pits
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged.	All pits were geologically logged by a qualified geologist, noting moisture content of sediments, lithology, colour, induration, grainsize, matrix and structural observations. A digital drill log was developed specifically for this project.
Sub-sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled.	Geological logs are recorded in the field based on inspection of cuttings. Geological samples are retained for each hole in archive. Sub-sampling was not undertaken. Sample bottles are rinsed with brine which is discarded prior to sampling. All brine samples taken in the field are split into three sub-samples: primary, potential duplicate, and archive.
Quality of assay data and laboratory tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	Primary samples were sent to Bureau Veritas Minerals Laboratory, Perth. Brine samples were analysed using ICP-AES for K, Na, Mg, Ca, with chloride determined by Mohr titration and alkalinity determined volumetrically. Sulphate was calculated from the ICP-AES sulphur analysis
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data.	Data entry is done in the field to minimise transposition errors. Brine assay results are received from the laboratory in digital format to prevent transposition errors and these data sets are subject to the quality control described above. Independent verification of significant intercepts was not considered warranted given the relatively consistent nature of the brine.
Location of data points	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control.	Hole co-ordinates were captured using hand held GPS. Coordinates were provided in GDA 94_MGA Zone 51. Topographic control is obtained using Geoscience Australia’s 3-second digital elevation product. Topographic control is not considered critical as the salt lakes are generally flat lying and the water table is taken to be the top surface of mineralisation.
Data spacing and distribution	Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied.	Data spacing is variable and is not on an exact grid due to the irregular nature of the salt lake shape and difficulty obtaining access to some part of the salt lake.
Orientation of data in relation to geological structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	Not Applicable
Sample security	The measures taken to ensure sample security.	All brine samples were marked and kept onsite before transport to the laboratory. All remaining sample and duplicates are stored in the Perth office in climate-controlled conditions. Chain of Custody system is maintained.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	Data review is summarised in Quality of assay data and laboratory tests and Verification of sampling and assaying. No audits were undertaken.

Section 2: Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	Details are presented in the report.
Exploration done by other parties	Acknowledgment and appraisal of exploration by other parties.	Details are presented in the report.
Geology	Deposit type, geological setting and style of mineralisation.	Salt Lake Brine Deposit
Drill hole Information	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	Details are presented in the report.
Data aggregation methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated.	Details are presented in the report.
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).	The brine resource is inferred to be consistent and continuous through the full thickness of the sediments.
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Addressed in the announcement.
Balanced reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	All results have been included.
Other substantive exploration data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	All material exploration data reported.
Further work	The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	Aircore / RC drilling to defined paleovalley structure and provide brine samples with depth. Hydraulic testing be undertaken, for instance pumping tests from bores and/or trenches to determine, aquifer properties, expected production rates and infrastructure design (trench and bore size and spacing). Diamond Core drilling to obtain sample for porosity determination. Lake recharge dynamics be studied to determine the lake water balance and subsequent production water balance. For instance, simultaneous data recording of rainfall and subsurface brine level fluctuations to understand the relationship between rainfall and lake recharge, and hence the brine recharge dynamics of the lake.

For further information please visit www.saltlakepotash.com.au or contact:

Matt Syme/Sam Cordin	Salt Lake Potash Limited	Tel: +61 8 9322 6322
Jo Battershill	Salt Lake Potash Limited	Tel: +44 (0) 20 7478 3900
Colin Aaronson/Richard Tonthat	Grant Thornton UK LLP (Nominated Adviser)	Tel: +44 (0) 20 7383 5100
Derrick Lee/Beth McKiernan	Cenkos Securities plc (Joint Broker)	Tel: +44 (0) 131 220 6939
Jerry Keen/Toby Gibbs	Shore Capital (Joint broker)	Tel: +44 (0) 20 7468 7967

[1] Bell et al, 2012, WASANT Paleovalley Map – Distribution of Palaeovalley in Arid and Semi-arid WA-SA-NT. Geoscience Australia Thematic Map.

[2] Johnson, S.L., Commander, D.P., and O’Boy, C.A. 1999, Groundwater resources of the Northern Goldfields, Western Australia: Water and Rivers Commission, Hydrogeological Record Series, Report HG 2, 57p.

[3] DeBroekert and Sandiford (2005), Buried Inset-Valleys in the Eastern Yilgarn Craton, Western Australia: Geomorphology, Age, and Allogenic Control. The Journal of Geology, 2005, volume 113, p. 471-493

[4] http://www.ga.gov.au/scientific-topics/hazards/flood/wofs

[5] Johnson, (2007) Groundwater abstraction and aquifer response in the Roe Palaeodrainage (1990-2001). Department of Water Hydrogeological Record Series Report HG23 October 2007

[6] Bowler, J.M., 1986. Spatial variability and hydrologic evolution of Australian lake basins: analogues for Pleistocene hydrologic change and evaporite formation. Palaeogeography, Palaeoclimatology, Palaeoecology, 54, 21-41.

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Salt Lake Potash #SO4 – Final Results 2018

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Preparation

(b) Statement of Compliance

(c) Principles of Consolidation

(d) Cash and Cash Equivalents

(e) Trade and Other Receivables

(f) Investments and Other Financial Assets

(i) Classification

(ii) Impairment

(g) Property, Plant and Equipment

(i) Recognition and measurement

(ii) Depreciation and Amortisation

(iii) Derecognition

(h) Exploration and Development Expenditure

(i) Impairment

(i) Payables

(j) Provisions

(k) Revenue Recognition

(l) Income Tax

(m) Employee Entitlements

(n) Earnings per Share

(o) Goods and Services Tax

(p) Acquisition of Assets

(q) Impairment of Non-Current Assets

(r) Issued and Unissued Capital

(s) Foreign Currencies

(i) Functional and presentation currency

(ii) Transactions and balances

(iii) Group companies

(t) Share-Based Payments

(u) Use and Revision of Accounting Estimates, Judgements and Assumptions

2. SEGMENT INFORMATION

3. FINANCE INCOME

4. OTHER INCOME

5. EXPENSES

(a) Depreciation included in statement of comprehensive income

(b) Employee benefits expense (including KMP)

6. INCOME TAX

(a) Recognised in the statement of comprehensive income

(b) Reconciliation between tax expense and accounting loss before income tax

(c) Deferred Tax Assets and Liabilities

(d) Tax Consolidation

7. CASH AND CASH EQUIVALENTS

8. TRADE AND OTHER RECEIVABLES

9. PROPERTY, PLANT AND EQUIPMENT

(a) Plant and Equipment

(b) Reconciliation

Finance Leases

10. EXPLORATION AND EVALUATION EXPENDITURE

(a) Areas of Interest

(b) Reconciliation

11. TRADE AND OTHER PAYABLES

12. PROVISIONS

13. CONTRIBUTED EQUITY

(a) Movements in Ordinary Shares During the Past Two Years Were as Follows:

(b) Rights Attaching to Ordinary Shares:

(i) Shares

(ii) Meetings of Members

(iii) Voting

(iv) Changes to the Constitution

(v) Listing Rules

14. RESERVES

(a) Nature and Purpose of Reserves

(i) Share-based payments reserve

(b) Movements in the share-based payments reserve during the past two years were as follows:

(c) Terms and Conditions of Unlisted Options

(d) Terms and Conditions of Performance Shares

(e) Terms and Conditions of Performance Rights

15. STATEMENT OF CASH FLOWS

(a) Reconciliation of the Loss after Tax to the Net Cash Flows from Operations

16. EARNINGS PER SHARE

(a) Non-Dilutive Securities

(b) Conversions, Calls, Subscriptions or Issues after 30 June 2018

No securities have been issued since 30 June 2018.

17. RELATED PARTIES

(a) Subsidiaries

(b) Ultimate Parent

(c) Transactions with Related Parties