CANADIAN PHOSPHATE LIMITED — AGM Information 2021

Jul 22, 2021

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F E R T O Z L T D ( A S X : F T Z ) w w w . f e r t o z . c o m

Organic farm inputs and premium carbon offsets

A G M P R E S E N T A T I O N

J U L Y 2 0 2 1

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Fertoz Snapshot

Organic farm inputs and carbon credit generation, calculation and trading for farmers, woodlot and forest owners and land rehabilitation companies

Shares on issue1	217.4 M	YEAR-TO-DATE SHARE PRICE
		PERFORMANCE AND VOLUME
Share price2	$0.21
Mkt Cap	A$46 M
Cash3	A$6.5 M
Debt	Zero
% Held by Top 20	~52%
% Held by BoD	~12%

• 1: Post shareholder approval of Tranche 2 of July 2021 share placement

• 2: As at 20 July 2021

• 3: Pro forma as at 30 June 2021 including placement proceeds

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Board and Management

EXPERIENCED AND INVESTED BOARD OF DIRECTORS

KEY MANAGEMENT PERSONNEL WITH PROVEN AG PRODUCT SALES ABILITY AND FARM PROJECT DELIVERY EXPERIENCE

Patrick Avery	Executive Chairman	1.1% ownership
Stuart Richardson	Non-Executive Director	5.3% ownership
James Chisholm	Non-Executive Director	5.3% ownership
Justyn Stedwell	Non-Executive Director	0.2% ownership

Derek Squair	Manager, Fertoz Carbon	29 years
Jo Shearer	COO and Senior Geologist	34 years
Sean Gatin	SVP of Sales and Marketing	29 years
Les Szonyi	MD, FertAg Australia	35 years
Reanne Pernerowski	Marketing Manager	10 years
Jayram Hosanee	CFO	25 years

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ESG Focus
PLANET PROSPERITY GOVERNANCE PEOPLE
Formation of Fertoz Partnership approach Risk management, Diversity, inclusion,
Carbon to directly ensures wealth advisory board to be pay equality,
combat climate distribution and established health, safety and
change personal opportunity training
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Organic Farm Inputs

BLENDING FERTOZ PRODUCTS WITH CONVENTIONAL FERTILIZERS REDUCES GREENHOUSE GAS EMISSIONS

Fertoz’s traditional business of organic farm inputs has now expanded into the carbon market

Supply of rock phosphate and blends to organic farmers in North America

Supply of fused magnesium phosphate in Australia and selected countries in Asia and the Pacific

Record orders in first half of 2021 – leading to strong cash flow in H2

In-house granulation facilities expected to drive additional sales and EBIT growth – planned start in August 2021

Approximately 30% of farm-created greenhouse gas emissions are the result of synthetic fertilizers

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The Organic Market – Size of Retail Spend

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USA

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CANADA

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AUSTRALIA

NEW ZEALAND

PHILIPPINES

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• US$62bpa total US$7bpa total A$2.6bpa market organics market size organics market size size in 2020 – increase of in 2020, up 14% 12.8% over 2019 • >4,800 producers; • >5,500 producers most in QLD, NSW,

• • >18,000 producers; with most organic Vic, WA highest sales land in Saskatchewan California, then Pennsylvania, Washington, Oregon and Texas

• NZ$600mpa total organics market

• ~1,600 producers

• 40 – 50% decline in soil fertility due to chemical fertilizers, so farmers starting to swap to organic

• Early days but showing doubledigit growth

THE WORLDWIDE ORGANIC FOOD AND BEVERAGE MARKET IS EXPECTED TO GROW AT A CAGR OF 16% AND IS ANTICIPATED TO REACH AROUND US$620 BILLION BY 2026. INTRADO GLOBAL NEWSWIRE

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THERE IS TOO MUCH CO 2 IN THE ATMOSPHERE AND TOO LITTLE CARBON IN OUR SOILS

Carbon Credits – the Next Global Investment Trend

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Carbon credits are generated by replacing fossil fuels with renewable energy (solar, wind etc), by planting trees, shrubs and grasses, rehabilitating wetlands and peat bogs, and renewing coastal wetland areas.

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When a carbon credit is used to offset CO2 (or methane or nitrous oxide etc) emissions, it expires.

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A carbon credit is a tradeable unit of value representing the reduction or removal of one (1) metric ton of carbon dioxide equivalent from the atmosphere.

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Carbon credits are traded on exchanges or traded between suppliers and emitters. Fertoz Carbon can do both – trade carbon credits on recognised exchanges or work in the voluntary carbon market

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Why the Huge Potential?

Industry is facing increasing costs associated with carbon emissions and climate change policies worldwide

Legislation is forcing companies to pay for their carbon emissions

Non-compliance results in higher cost of capital, increased shareholder activism, reduced share price etc

Companies that emit carbon through the use of fossil fuels, or through the release of methane and nitrous oxide into the atmosphere, must purchase or generate carbon credits to offset their production of greenhouse gases

With annually increasing carbon taxes being levied on businesses, there is now urgent demand for carbon credits

Major emitters are buying credits in size: according to Katusa Research, to meet its target emission cuts, Shell would need to buy 45% of ALL the voluntary carbon market credits issued last year - every year

While manufacturers face larger tax and tariff bills for CO2, the cost to them of buying offset credits is also increasing (see carbon market price chart on next slide showing that the price of carbon per tonne on the EU ETS market has grown in excess of 65% compounded over the past five years)

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Carbon Credit Demand Growth

The Taskforce on Scaling Voluntary Carbon Markets (TSVCM), sponsored by the Institute of International Finance (IIF) with knowledge support from McKinsey, estimates that demand for carbon credits could increase by a factor of 15 or more by 2030 and by a factor of up to 100 by 2050. Overall, the market for voluntary carbon credits could be worth upward of US$50 billion in 2030.

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A Constrained Market

The market for carbon credits comprises the mandatory market (used by companies and governments that are legally mandated to offset their emissions) and the voluntary carbon market operating in parallel (allowing private companies and individuals to purchase carbon offsets on a voluntary basis). The voluntary market is expected to grow, unaided by legislation, on the back of net-zero pledges.

With an increasing number of companies now seeking carbon credits to offset their CO2 emissions, the market for carbon credits continues to tighten.

The carbon credit market is constrained and is particularly short of high value, nature-based carbon credits – those credits generated by renewing or conserving forests and wetlands.

Fertoz can help farmers to generate these naturebased credits. Our cloud-based A.I. and blockchain reforestation initiatives facilitate verification of forest and crop growth, the amount of CO2 sequestered and the resultant carbon credits generated

ASSET CLASS RETURNS COMPARISON

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Our Competitive Advantages

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We have an inputs business and years of lab tests, soil tests, trials and actual production on farms – we can prove the benefits of using our products and we now offer additional services in carbon management, carbon credit generation and trading

Fertoz products improve soil health, increase plant growth and thus sequester more carbon in the soil and in the plant, whether that soil and those plants are on farms, in forests or grazing land for cattle

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Our products increase plant growth and thus CO2 sequestration; our products can be blended with synthetic/conventional fertilizers to reduce overall CO2 emissions (1t of nitrous oxide from conventional nitrogen fertilizers is equivalent to 296t of CO2)

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Importantly, our products facilitate discussions in carbon emissions reduction – from sequestering more CO2 from plant growth, to reforesting unused areas on

farms, to improving the efficiency of cattle production thus reducing methane emissions from herds (1t of methane is equivalent to 25t of CO2)

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Fertoz Provides Exposure to the Carbon Market

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Fertoz plans to generate income through its development of a comprehensive platform that will allow the carbon credits generated in the Company’s agriculture and reforestation projects to be traded. Fertoz will share in carbon credits generated on a project by project basis.

We work with agribusinesses and forestry groups (existing Fertoz customers and others) to develop commercial carbon farming projects that sequester and reduces greenhouse gas emissions by implementing sustainable land management practices, aligning agriculture/forestry with climate policy.

Carbon farming projects can generate income by selling Carbon Credit Units to governments or private enterprise that have carbon reduction targets.

Our Carbon-Neutral phosphate allows farmers to significantly reduce the amount of CO2 they need to offset, shortening their path to being carbon neutral

Our products are the key to our competitive advantage in the carbon market

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Fertoz Carbon Execution

Fertoz partners with carbon market leaders – Trimble, Brightspot Climate, Data PLP

• Measurement

• Recording

• Verification and validation

Develop the farmer network (the producers of sequestered soil carbon)

• Utilise existing partnerships with 20+ agribusiness groups in North America

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Connecting these three disciplines in one system results in a seamless digital carbon credit supply chain. Utilising North American leaders in the carbon space, Fertoz Carbon can scale rapidly.

• Trimble’s access to farmers

• Execute long-term (5-25 year) agreements with carbon farmers to deliver certified carbon credits to emitters and/or carbon exchanges

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The Next 12 Months

Expand sales of organic N-P-K-S blends in North America and FertAg production in Australia, NZ, Asia

Commission granulator to make granulated fertilizer blends – expected to increase sales and EBIT

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Begin reforestation and land rehabilitation projects using drone and satellite partners, and verify and trade carbon credits

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Open Fernie operation to supply phosphate

Complete carbon credits trial – development, accreditation, verification, trading

Use funds from recent capital raise to employ more personnel in the Carbon Division and additional sales personnel

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Recent Industry Developments

Seoul has set a target of net-zero emissions by 2050 and pledged to reduce its emissions by 37% from business-as-usual levels by 2030, end funding of overseas coal plants, and introduce a carbon tax.

THE CARBON MARKET

ANNUAL TOTAL CO2 EMISSIONS, BY WORLD REGION

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W O R L D D A T A
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On 26 March 2021, Japan’s 2021 tax reform bill (the Bill) was enacted following passage by the Japanese Diet. Carbon neutralrelated investments of up to JPY50b (US$500m), as certified under an environment adaptation plan made by 31 March 2024, will either be eligible for a 5% to 10% tax credit or for 50% special depreciation.

Ottawa to hike federal carbon tax to C$170 a tonne by 2030

California : Beginning in 2021, a hard price ceiling of $65/ton will be set for carbon taxes, increasing 5% annually (adjusted for inflation)

Sweden levies the highest carbon tax rate in the world, at US$133 per metric ton of CO2

US$73/tonne Carbon Tax in Finland

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As Carbon Prices Soar, Investors Flock to Emissions-Trading Market NASDAQ 7 June 2021

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“European carbon credit prices have increased 135% in the
past 12 months and have been hitting record highs, as
lockdowns begin to ease from the pandemic.” 7 June 2021
Carbon offset prices set to
increase tenfold by 2030
NASDAQ acquires carbon
trading platform - June 2021
Indigo Ag Raises Another $360M, Hits $3.5B
Valuation – August 2020
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Demand is accelerating rapidly. In 2020, only 22% of global GHG emissions were covered by carbon pricing systems.

The Investor Group on Climate Change (IGCC) represents institutional investors across Australia and New Zealand with total funds under management of over $2 trillion

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Disclaimer

This presentation has been prepared and issued by Fertoz Ltd (“the Company”) to inform interested parties about the Company and its progress. The material contained in this presentation sets out general background information on the Company and its activities. It does not constitute or contain an offer or invitation to subscribe for or purchase any securities in the Company nor does it constitute an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for or purchase securities in the Company will be entered into on the basis of this presentation.

The information supplied is in summary form and does not purport to be complete. The Company, and directors, officers, employees, agents, affiliates and advisers have not verified the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by law, the Company makes no representation and gives no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and assumes no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission from, any information, statement or opinion contained in this presentation.

You should neither act nor refrain from acting in reliance on this presentation material. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy, and completeness of the information, statements and opinions contained in this presentation . To the extent permitted by law the Company, directors, officers, employees, agents, affiliates and advisers exclude any and all liability (including, without limitation, in respect of direct, indirect or consequential loss or damage or loss or damage arising out of negligence) arising as a result of the use of anything contained in or omitted from this presentation.

All statements, other than statements of historical fact, included in the presentation, including without limitation, expansion plans and development objectives of the Company are forwardlooking statements. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, they involve subjective judgement, assumptions and analysis and are subject to significant risks, uncertainties and other factors, many of which are outside the control or, and are unknown to the Company. Accordingly, there can be no assurance that such statements or expectations will prove to be accurate and actual results and future events may differ materially from those anticipated or described in this presentation. Historic information is not an indication or representation about the future activities of the Company.

The Company disclaims any obligation or undertaking to disseminate any updates or revisions to any information contained in this presentation and to reflect any change in expectations, events, conditions or circumstances on which that information is based.

This presentation is provided on a strictly private and confidential basis, to be used solely by the recipient. Neither this presentation nor any of its contents may be reproduced or used for any other purpose without the prior written consent of the Company. In accepting this presentation, the recipient agrees that it is provided solely for its use in connection with providing background information on the Company and that it is not used for any other purpose.

Authorised by the Board of Directors.

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F E R T O Z L T D A S X : F T Z w w w . f e r t o z . c o m

Contact Us

H E A D O F F I C E N . A M E R I C A

26 West Dry Creek Cir. Littleton CO 80120

H E A D O F F I C E A U S T R A L I A

Suite 103, Level 1, 2 Queen St Melbourne VIC Australia

Pat Avery – Executive Chairman T: +1 720 413 4520 patrick.avery@fertoz.com

Tim Dohrmann – Investor Relations T: +61 468 420 846 ~~tim@nwrcommunications.com.au~~

Stuart Richardson – NED T: +61 414 485 577 srichardson@bwcapital.com.au

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