Emmerson PLC (“Emmerson” or the “Company”)

Financial Results & Q1 Update

Emmerson, the Moroccan-focused potash development company, is pleased to announce its 2022 audited results as well as an update for Q1 2023, as it moves towards construction at the Khemisset Potash Project (“Khemisset” or the “Project”).

Highlights:

• Environmental permit for Khemisset – continued positive discussions to establish optimum water management routes ahead of final approval. Enhanced designs incorporated in 2022 include:
  • Sourcing water from Khemisset waste water treatment plant rather than reservoirs; and
  • Selection of dry stacking for tailings, a more environmentally robust solution
• Significant progress during 2022 and Q1 2023 on pre-construction technical workstreams including basic engineering, which are now largely complete
• Syndicate of leading international and Moroccan banks appointed during Q1 2023 as initial mandated lead arrangers to co-ordinate and fund debt financing facilities for the development of Khemisset
• Potash prices remain well above long term averages and long-term outlook remains attractive

Graham Clarke, CEO, commented:

“A significant amount of work was completed during 2022 and in the first quarter of 2023, and we move closer to obtaining the environmental approval for our project.

Our efforts to finalise the remaining outstanding items with the relevant authorities in Morocco ahead of the granting of our Environmental Impact Assessment continue to be rewarded with constructive meetings and encouragement from the various agencies involved. I had hoped to be in position to provide a definitive update on this process however the finer technical details of the water management proposals, in particular our use of recycled water from the Khemisset waste water treatment plant, and our brines and dry tailings solutions, are awaiting final approvals from the environmental and water agencies.

It remains our absolute priority to finalise this as quickly as possible in conjunction with the Moroccan authorities with the objective of moving into construction this year.

The Company achieved a key milestone during the period in the form of the appointment of a syndicate of international and Moroccan banks to act as mandated lead arrangers, to co-ordinate and fund debt financing facilities for Khemisset. This is a huge step for Emmerson, and one that provides a clear and tangible route for us to deliver on the requisite financing for this large and strategically important asset.

Securing quality and experienced institutions including ING Bank, Banque Centrale Populaire and Bank of Africa (Groupe BMCE), together with UK Export Finance, which will lead an Export Credit Agency tranche of US$230 million, is a significant endorsement of the Project and its future earnings potential. I believe that this is also a clear signal to the market and our various stakeholders in Morocco, that ours is a project with the commercial clout and operational robustness to merit being fast-tracked into production.”

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