Interim Results for the six months ended 30 June 2023

Emmerson, which is developing the world class Khemisset Potash Project in Morocco (“Khemisset” or the “Project”), is pleased to announce its Interim Results for the six month period ended 30 June 2023 (the “Period”).

Highlights

• Update on environmental permit and financing set out in Q3 update announcement on 21 September 2023
• Financial results for the six months to 30 June 2023 reflect expenditure on technical workstreams and administrative/corporate support costs
• Loss for the period of US$1.6 million
• Cash balance at 30 June 2023 was US$4.2 million, after total expenditure of US$2.5 million in the period. Cash reserves of US$3.5 million as at the time of this report.

Activities During the Period

The Company’s priority during the Period was advancing discussions with government officials towards obtaining environmental approval for the Khemisset Project in Morocco. Currently, Emmerson is awaiting a session of the Ministerial Committee to consider the matter, and although management remains confident of a favourable outcome based on discussions to date, the timing of the meeting is not certain, particularly following the devastating earthquake in Morocco, which has, understandably, been the main focus of government attention.

Financial Review

As the Company continues in its phase of exploration and development, the results are relatively straightforward, and reflect a loss for the period of US$1.6 million (30 June 2022: US$1.5 million), primarily as a result of administration and corporate costs.

Net cash of US$2.5 million was spent in the period (30 June 2022: US$5.3 million), consisting of the net impact of the administration costs and working capital movements of US$2.2 million, capitalised development costs of US$0.5 million, and US$0.2 million net proceeds of employee share option exercises.

Financing and Cash Position

At the time of this report, the Company has cash reserves of US$3.5 million, sufficient to cover the remaining Basic Engineering costs and working capital commitments for at least the next 12 months.

Outlook for 2023

For the balance of the year, the Company’s focus will remain on obtaining the environmental approval for the Project, putting in place a new funding agreement with its Strategic Investors, and finalising optimisation work ahead of a Bankable Feasibility Study.

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