Review of Operations for the Quarter ended 30 September 2020

Kore Potash plc (“the Company”), the potash development company with 97%-ownership of the Kola and DX Potash Projects in the Sintoukola Basin, located within the Republic of Congo (“RoC”), provides the following quarterly update, for the period to 30 September 2020 (the “Quarter”).

Quarterly Highlights:

• On 30 September 2020 the Company announced that following the recent equity fundraise, work has commenced on the Definitive Feasibility Study (“DFS”) for the Company’s DX Project (“DX”). The work to complete Phase One of the DFS on Kore’s DX Project has commenced and includes:
  • A drilling programme consisting of the drilling and analysis of up to 5 new diamond drill holes is planned to begin during October 2020 – these will improve confidence in the value of DX
  • A number of local and international consultants have been engaged to support the environmental and technical aspects of the DFS
  • SQM, a global scale lithium and potassium producer and one of Kore’s major shareholders, is providing technical support for key aspects of the DX DFS
  • Phase One of the DFS is planned for completion in May 2021
• Subsequent to the Quarter, on 22 October, the Company reported that drilling of the first hole of the DFS programme at DX has commenced.

Corporate Highlights

• At 30 September 2020, the Company held USD 7.83 million cash at bank.
• The Company held the General Meeting on 18 September 2020 to approve the $8m equity fundraise and the issue of 946,106,375 new ordinary shares in the Company at £0.0065 per share. The net proceeds of the fundraise will allow the Company to complete the first phase of the DFS for the DX project.

Brad Sampson, Chief Executive Officer of Kore Potash, commented:

“We have taken the DX Project from discovery to commencement of DFS within a 2-year period which is rapid in any context.

“The high grade of the DX Deposit, and its strategic location help create a compelling investment case and we are excited to be commencing the Definitive Feasibility Study and moving DX closer towards production.

“The Sintoukola Potash Basin has the potential to be a globally significant potash region, and DX will be the catalyst for that development.”

Operational activities

Dougou Extension Sylvinite Definitive Feasibility Study

• During the Quarter, on 30 September 2020, the Company announced that following the recent equity fundraise, work has commenced on the Definitive Feasibility Study (“DFS”) for the Company’s DX Project (“DX”). The work to complete Phase One of the DFS on Kore’s DX Project has commenced and include:
  • A drilling programme consisting of the drilling and analysis of up to 5 new diamond drill holes is planned to begin in October 2020 – these will improve confidence in the value of DX. This program is on track to commence in October which is aligned with the DFS schedule. Key drilling personnel have been mobilised to the Congo ahead of the planned commencement of drilling.
  • The Drilling will be undertaken with Kore’s own mud rotary and diamond drill rigs that are currently on site.
  • On 14 October 2020 the Company announced that the Government of the Congo had granted approval for the environmental management plan for the planned DX drilling programme.
  • Agapito Inc were appointed as the mining and geology consultants and to be the Competent Person for both the Mineral Resources estimate and statement of Ore Reserves. They have commenced with dissolution test work and rock mechanics testing of DX core samples.
  • SQM, a global scale lithium and potassium producer and one of Kore’s major shareholders, is providing technical support for key aspects of the DX DFS.
  • Phase One of the DX DFS is planned for completion in May 2021
• Subsequent to the end of the Quarter on 22 October 2020, the Company announced that drilling of the first drill hole planned for the DX DFS had commenced.

There were no mining production or construction activities during the Quarter.

Next steps

DFS work planned for the next Quarter includes the following:

• Restatement of the DX Pre-Feasibility Production Target to incorporate updated scheduling of the production caverns
• Completion of the dissolution test work programme planned for phase 1 of the DX DFS.
• Completion of the geo-mechanical test work planned for phase 1 of the DX DFS.

Quarterly cashflow report

In accordance with the ASX Listing Rules, the Company will also today lodge its cashflow report for the quarter ended 30 September 2020. Included in those cashflows is CEO salary of approximately USD151k settled in cash. No non-executive director fees were paid during the quarter as the directors waived their entitlements pending the successful completion of the September 2020 fundraise.

The Company invested USD368k in exploration in the Quarter which comprising USD42k related to DX DFS design work, USD270K in sourcing DX DFS related drilling consumables, USD25k DX DFS management related costs and USD31k related to DX PFS equipment transportation costs. The Company ended the Quarter with USD 7.83 million of cash at bank.

This announcement has been approved for release by the Board.