Potash and Salt Offtake MOUs with Keytrade AG and Hexagon Group AG

Emmerson, the Moroccan-focused potash development company, is pleased to announce the signing of non-binding Memoranda of Understanding (“MOUs”) relating to the offtake of potash and salt to be produced at its Khemisset Mine in Morocco (“Khemisset”), as follows:

· With Keytrade AG for the sale of a minimum of 245,000 metric tonnes per year of Muriate of Potash (“MOP”) for a period of 10 years; and

· With Hexagon Group AG for the sale of a minimum of 245,000 metric tonnes per year of MOP and a minimum of 500,000 metric tonnes per year of salt product (“NaCl”), both for a period of 10 years.

The MOUs are non-binding and set out the key terms for subsequent formal bankable offtake agreements.

The prices for MOP (minimum of 60% K2O) and NaCl are expected to be derived from the market or as quoted in independent expert reports, such as Argus Research, averaged to form a monthly price in the month prior to bill of lading, and after deducting a marketing fee.

Importantly, the MOUs contemplate “take or pay” provisions whereby the offtakers will market the product to end users and compensate the Company for any quantities not taken by end users or otherwise sold by the offtakers.

The MOUs envisage that all MOP and salt products sold will be delivered Free On Board (currently Casablanca), unless otherwise agreed by the parties. They are also non-exclusive, and Emmerson will continue to engage in ongoing offtake discussions with other wholesale customers, distributors, and global traders for the remaining production capacity from Khemisset.

Graham Clarke, CEO of Emmerson commented:

“I am delighted to present our first offtake MOUs to the market as we continue our process of advancing towards construction readiness at Khemisset. These MOUs are an important milestone in this process and will account for more than 65% of MOP production and 50% of salt production. Underpinning a significant proportion of future potash and salt sales on a take or pay basis is a strong endorsement for the project, de-risking the development for debt and other financiers. They are also a clear signal of the critical importance of potash in the context of international food security, and we look forward to advancing further negotiations as we continue to lay the foundations for establishing Africa’s first commercial potash mine.”