HIGHFIELD RESOURCES LIMITED — Capital/Financing Update 2021

Nov 22, 2021

ASX ANNOUNCEMENT

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ASX: HFR

23 November 2021

UPDATED ORE RESERVE ESTIMATE FOR THE MUGA-VIPASCA POTASH PROJECT - MINING AND GEOLOGICAL CHARACTERISTICS RECONFIRMED

Highfield Resources (ASX:HFR) (“Highfield” or “the Company”) is pleased to announce the results of an independent technical review undertaken by SRK Consulting (UK) Limited (“SRK”) of the updated Ore Reserve estimate (“ORE”) and Exploration Target prepared for its flagship Muga-Vipasca Potash Project (“Muga” or the “Project”).

HIGHLIGHTS

• The updated ORE (which has an effective date 31 October 2021) is 104.3 Mt at a mean grade of 10.2% K2O and comprises:

• Proved Reserve of 45.3 Mt at 10.5% K2O; and

• Probable Reserve of 58.9 Mt at 10.0% K2O.

• The updated ORE is changed from the previously reported estimate (which was valid as at 31 December 2018) and reflects:

• additional drilling completed at Vipasca (which informed the already announced updated Mineral Resource Estimate (“MRE”), valid as at 31 August 2020);

• a new detailed Life of Mine Plan (“LOM”) developed with IGAN Consultores (“IGAN”); and

• the conditions imposed under the Environmental Permit (Declaración de Impacto Ambiental or “DIA”) and the Mining Concession (awarded July 1, 2021).

• The resulting updated ORE is only modestly different from the 108.7 Mt reported as at 31 December 2018.

• Potential project finance lenders are currently assessing the updated LOM as part of their due diligence and Highfield expects to announce further updates on the Economic Assessment and the Project finance process in due course.

Highfield together with IGAN, a Spanish mining consultant company, recently completed a detailed mine plan for the Project with revised production and backfilling schedules. The mine plan provides detailed design of access development to the production zones where the shallow dipping seams, which cover most of the initial years of production, will be mined.

Highfield Resources ACN 153 918 257 ASX: HFR www.highfieldresources.com.au

Head Office Avenida Carlos III, 13 - 1°B 31002 Pamplona, Spain | +34 948 050 577 Registered Office 169 Fullarton Road, Dulwich, SA Australia | +61 8 8133 5000

ASX ANNOUNCEMENT

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The updated ORE takes into account the conditions and constraints resulting from the Environmental Permit (“DIA”) and Mining Concession (awarded 1 July 2021), primarily related to exclusion zones (around towns, infrastructure and objects of significant cultural importance).

The updated ORE also considers the most recent MRE which now includes the Vipasca Licence area where seven additional drillholes have been completed since the previous estimate was produced.

In addition to the updated ORE, the Company has also produced an updated Exploration Target which encompasses both the Vipasca Licence area and the Muga Sur Licence area and which has also been reviewed by SRK.

Ignacio Salazar, CEO, commented : “As we approach the start of construction at Muga, we are delighted to announce an up-to-date mine plan for Muga and the results of the SRK review of its Ore Reserve estimate.

With this work, we have advanced our understanding of the mineralisation and the mine plan of the Project to the point we can start construction. With this result from the SRK´s independent report, we reconfirmed the significant mining and geological characteristics of Muga.”

Updated Ore Reserve estimate for the Muga Project

The updated Ore Reserve Statement prepared by Highfield, and reviewed by SRK, is presented in Table 1 below. The Proved and Probable Ore Reserve have been derived from the Measured and Indicated Mineral Resource of 237.3 Mt at 12.0% Potassium Oxide (“K2O”, potash) as previously reported and which is valid as at 31 August 2020.

The revised mine plan, used as the basis for the ORE, was developed by Highfield with technical mine planning support from IGAN during 2021, based on panel rib pillar design guidance developed by SRK in 2019. The updated Ore Reserve of 104.3 Mt of potash is modestly different from the 108.7 Mt of potash estimated in the last Reserve statement with effective date 31 December 2018.

The audited Ore Reserve Statement has been reported in accordance with the terminology and guidelines of the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”). The Ore Reserve is presented in terms of plant feed and inclusive of losses and dilution incurred during mining and is a sub-set of, and not additive to, the most recent Mineral Resource estimate from which it was derived.

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Highfield Resources ACN 153 918 257 ASX: HFR

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ASX ANNOUNCEMENT

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Table 1: Audited SRK Ore Reserve Statement for the Muga-Vipasca Potash Deposit effective date October 31, 2021*

Ore Reserve Classification	Tonnage	**%K2O **	%MgO	%KCl
	(Mt)
Proved Reserve	45.3	10.5%	0.3%	16.6%
Probable Reserve	59.0	10.0%	0.6%	15.8%
Total Ore Reserve (Proved + Probable)	104.3	10.2%	0.5%	16.1%

* Additional notes to consider for the purposes of the Ore Reserve statement are as follows:

1. All figures are rounded to reflect the relative accuracy of the estimate and have been used to derive sub-totals, totals and weighted averages. Such calculations inherently involve a degree of rounding and consequently introduce a margin of error. Where these occur, SRK does not consider them to be material. The Concession is wholly owned by and exploration is operated by Geoalcali S.L.U., the wholly owned Spanish subsidiary of Highfield Resources.

2. The standard adopted in respect of the reporting of Ore Reserves for the Project, following the completion of required technical studies, is the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

3. SRK reasonably expects the Muga deposit to be amenable to a variety of underground mining methods for the shallow and inclined potash seams. Ore Reserves are reported at an 8% K20 cut-off which is based on potash price assumptions, metallurgical recovery assumptions from initial testwork, mining costs, processing costs, general and administrative (G&A) costs, and other factors.

4. SRK notes that the Reserve Tonnes are reported as wet tonnes with a low moisture content of 0.8%.

COMPETENT PERSONS STATEMENT FOR MUGA ORE RESERVES AND MUGA MINERAL RESOURCES

This update was prepared by Mr. Ignacio Salazar Director of Highfield Resources. The information in this update that relates to Ore Reserves is based on information prepared under the direction of Dr Mike Armitage, a Corporate Consultant with SRK Consulting (UK) Limited. Dr. Mike Armitage CEng, CGeol. is the Competent Person who assumes overall professional responsibility for the reported Ore Reserve. The information related with the review of the Life of Mine (“LOM”) has been prepared by Mr Chris Bray, who is a full-time employee of and Principal Consultant (Mining) at SRK. The information in this update that relates to Mineral Resources is based on information prepared by Ms Anna Fardell, a Senior Consultant at SRK Consulting (UK) Limited.

Dr Mike Armitage is a Member the Institute of Materials, Metals and Mining (“IMMM”) which is a ‘Recognised Overseas Professional Organisation’ (“ROPO”) included in a list promulgated by the Australian Stock Exchange (“ASX”) from time to time. Dr. Mike Armitage has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr. Mike Armitage consents to the inclusion in this update of the matters based on this information in the form and context in which it appears.

Mr Chris Bray BEng, MAusIMM (CP) is taking responsibility for the review of the LOM plan, as reported by the Company. Mr Bray is a full-time employee and Principal Consultant (Mining) at SRK. He is a Member of and Chartered Professional in the Australasian Institute of Mining and Metallurgy. He is a Mining Engineer with 24 years’ experience in the mining and metals industry, including operational experience in underground mines as well as mine planning and review experience on underground potash, salt, lithium and borate projects, and as such qualifies as a CP as defined in the JORC Code. He has also been involved in the reporting of Ore Reserves on various properties internationally for over 10 years.

Highfield Resources ACN 153 918 257 ASX: HFR

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ASX ANNOUNCEMENT

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Ms Anna Fardell is a Senior Resource Geologist employed by SRK, and has over five years’ experience in estimating and reporting Mineral Resources relevant to the style of mineralisation and type of deposit described herein. Ms Fardell is a registered member of the Australian Institute of Geoscientists (6555) and considered a Competent Person (CP) under the definitions and standards described in the JORC Code 2012. Ms Fardell takes responsibility for the Mineral Resource Statement and Exploration Target presented here.

Ms Anna Fardell consents to the inclusion in this update of the matters based on their information in the form and context in which it appears.

Ore Reserve assumptions

The updated Ore Reserve, effective date 31 October 2021, has been prepared by the Company and reflects the results of recent mine planning based on the revised geological model and updated MRE, effective date 31 August 2020; and further advances in the project design and cost estimation.

The approach, and the assumptions made, for the purpose of the Ore Reserve estimate are summarised in the following sections.

Reserve cut-off grade approach

The cut-off grade utilised to report the Ore Reserve is 8% K2O. SRK has verified the input parameters and the cut-off grade calculation together with the technical justification behind the production scenario proposed by Highfield. SRK also assessed the sensitivity of the project economics to capital costs, operating costs and commodity prices with additional contingencies applied to test the robustness of the project economics. The Company and SRK are confident that the Ore Reserve has been reported in accordance with the JORC Code guidelines and is economically viable based on current forecast commodity prices.

Mining method approach

The revised mine plan, used as the basis for the Ore Reserve estimate, was developed by Highfield with technical mine planning support from IGAN and based on panel rib pillar guidance by SRK (following the methodology and modifying factors based on the Muga Project Update statement of 22 January 2019). The revised approach considers mining of shallow dipping seams referred to as P0, PA, and PB (the “shallow dipping seams”) and inclined seams referred to as P1 and P2 (the “inclined seams”), as shown in Figure 1. The mineable tonnes are comprised of approximately 66% from the shallow dipping seams and 34% from the inclined seams.

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Highfield Resources ACN 153 918 257 ASX: HFR

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ASX ANNOUNCEMENT

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Figure 1: Plan view of Muga-Vipasca mining panels including access development and exclusion zones

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The potash seams are also constrained by a minimum mining height of 2 metres which is consistent with the planned mining equipment. The shallow dipping seams utilise a set of two parallel roadways as the main development access, one for fresh air intake and access and the other for exhaust ventilation and both with conveyor belt materials handling system. The mining method approach is a typical Room and Pillar (“R&P”) panel layout. The room width is specified at 8 metres and the height and pillar size is determined by the total combined seam thickness, geotechnical constraints due to depth below surface and/or any equipment limitations.

The more steeply inclined potash seams in the NW of the deposit required an alternative mining approach to the R&P panel layout used for the shallow dipping seams, to minimise dilution and maximise extraction, taking into consideration the geotechnical constraints and equipment limitations. An adaptation of the existing R&P method was considered for developing a practically achievable inclination for the roadways and mining rooms while maintaining the same production targets and utilising the same excavation, material handling and backfill approach.

The mine design includes a primary twin decline access at a maximum apparent dip of 15%.

The revised mine plan also incorporates the requirements of the environmental and mining approval process, particularly related to subsidence controls and exclusion zones around towns, infrastructure and objects of significant cultural importance.

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Highfield Resources ACN 153 918 257 ASX: HFR

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ASX ANNOUNCEMENT

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Processing approach

The proposed beneficiation process consists of a hybrid of two conventional beneficiation processes for sylvinite ores, namely froth flotation and dissolution/crystallisation. Flotation will be applied to the coarse fraction of the feed ore after crushing, and dissolution/crystallisation, which produces a higher quality product, will be applied to fines and intermediate fractions in order to achieve an overall optimum level of recovery. Sufficient testwork has been conducted to support the development of the flowsheet with an average process recovery for KCl of 91% over the LOM, as validated by the metallurgical testwork.

Economic factors

The estimated capital and operating costs used to inform the economic assessment to justify the ORE are based on the Company’s signed agreements with contractors, detailed quotes, or estimations made by the Company and its third-party consultants.

The product sales assumptions and forecast pricing used to support the ORE are also the same as used by the Company in the Muga Project Update statement of 15 October 2018. This approach assumes that 100% of the first phase of production is assumed to be sold into local and regional markets and for the second phase, a conservative approach has been adopted which considers 25% of product is sold into northern European markets and 25% to export markets. Forecast Potash prices are based on Commodity Resource Unit (“CRU”) H2 2021 dataset. The forecast prices considered in the financial model for southern Europe price for 2021 range from €360-390/tonne of potash and the weighted average potash price for the other markets considered, used for the LOM plan in the financial model is around €310-340/tonne.

A flat €16.4/tonne for transport of potash product to the ‘point of sale’ has been applied in the economic assessment.

The mine gate sales price of €36/tonne for de-icing salt and the mine gate sales price of €55/tonne for vacuum salt have been applied based on Argus Media most recent prices.

There are no mining royalties payable under Spanish law, therefore no mining royalties are considered as part of the review of the Ore Reserve estimate.

Social and environmental considerations

In addition to the statutory consultation required as part of the environmental approval process, the Company has implemented a comprehensive stakeholder engagement programme. This is based on a strategy that includes regular meetings with community leaders, community groups and an actively managed project website.

A range of environmental factors have been considered for the development of the Ore Reserve estimate. These include groundwater assessments, surface water management infrastructure, waste management, environmental controls around the temporary waste storage area and mining exclusion zones around surface infrastructure to mitigate against potential subsidence.

The Ore Reserve statement as included herein is materially compliant with the JORC Code guidelines effective October 31, 2021. In accordance with additional reporting requirements of the latest version of the JORC Code (2012), SRK’s review report includes an Appendix comprising the JORC checklist

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Highfield Resources ACN 153 918 257 ASX: HFR

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ASX ANNOUNCEMENT

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tables which include additional details and commentary on “Section 1 - Sampling Techniques and Data”, “Section 2 Reporting of Exploration Results”, “Section 3 - Estimation and Reporting of Mineral Resources” and “Section 4 - Estimation and Reporting of Ore Reserves”. These tables are also appended to this press release.

Exploration Target

In addition to the updated ORE, the Company has also produced an updated Exploration Target which encompasses both the Vipasca Licence area and the Muga Sur Licence area and which has also been reviewed by SRK. The Vipasca Exploration Target has been assumed to contain all five horizons while the Muga Sur Exploration Target has been assumed to contain only the PB, PA and P0 horizons only. The presence of the potentially economic potash has not been confirmed in these areas, but they comprise projected lateral extensions to the current Muga-Vipasca model that are either untested by drilling or contain historical data that is considered unreliable.

The Exploration Target is based on the same data as the most recently reported Mineral Resource. The tonnages were calculated by delineating the target areas for each horizon, by applying a thickness for each horizon based on the nearest drilling intersection and by assuming a density of 2.13 g/cm[3] (the average density for the existing model). Three target areas were delineated for Vipasca and one for Muga Sur. The tonnage ranges were then derived by applying ±25% thresholds to the calculations. The grade ranges were derived by projecting those in the existing block model estimates in the adjacent Vipasca and Muga licence areas.

The Exploration Target so derived for the Vipasca areas (West Vipasca, Northwest Vipasca and South Vipasca respectively) is between 80 and 130 Mt with a mean grade of between 8 and 10% K2O and for Muga Sur is between 0.5 and 1 Mt with a mean grade of between 8 and 12% K2O. The Company has drilling programmes in place to further explore these and the costs for this have been included in the updated LOM Plan. The Muga Sur area is planned to be drilled in 2022 and 2023 while the Vipasca areas are planned to be drilled in between Year 4 and 7 in the LOM Plan. It should be noted that these estimates are conceptual in nature, that there has been insufficient exploration to estimate a Mineral Resource for these areas and that it is uncertain if further exploration of these areas will result in the estimation of a Mineral Resource.

-ENDS-

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Highfield Resources ACN 153 918 257 ASX: HFR

www.highfieldresources.com.au

ASX ANNOUNCEMENT

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For more information:

Highfield Resources Limited

Ignacio Salazar – Chief Executive Officer Ph: +34 948 050 577 Olivier Vadillo - Investor Relations Ph: +34 609 811 257

Australia based queries:

Michael Weir - Citadel Magnus – Director, Partner Ph: +61 (0) 402 347 032 Alex Cowie – NWR Communications – Director Ph: +61 (0) 412 952 610

This announcement has been authorised for release by the Directors of Highfield Resources Limited.

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Highfield Resources ACN 153 918 257 ASX: HFR

www.highfieldresources.com.au

ASX ANNOUNCEMENT

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About Highfield Resources

Highfield Resources is an ASX listed potash company which focuses on the construction of its flagship low cost, low capex Muga Project in Spain having been granted the Mining Concession in July 2021.

Muga is a unique project – with decline accessible shallow potash mineralisation without overlying aquifers. The Project benefits from quality and readily accessible infrastructure already in place in the region and importantly, the Muga Project is located in the heart of a European agricultural region which has a clear demand for potash supply to meet future requirements.

Highfield’s potash tenements (Muga-Vipasca, Pintanos, and Sierra del Perdón) are located in the Ebro potash producing basin in Northern Spain, covering an area of around 262 km[2] .

Figure 2: Location of Muga-Vipasca, Pintanos, and Sierra del Perdón Tenement Areas in Northern Spain

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Highfield Resources ACN 153 918 257 ASX: HFR

www.highfieldresources.com.au

– Appendix A

Table A-1. JORC Checklist of Assessment and Reporting Criteria Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sampling	•	Nature and quality of sampling (e.g. cut channels,	•	At Muga, 11 historic drillholes were drilled in the 1980s and in early 1991. Detailed
techniques		random chips, or specific specialised industry standard		lithology logs and analysis on core were completed.
		measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples	•	36 new holes have been drilled and cored between 2013 and 2019 by Geoalcali Sociedad Limitada (Geoalcali), for a total of 47 holes on the property across the Vipasca and Muga licences.
		should not be taken as limiting the broad meaning of
		sampling.	•	The information on which HFR drilling campaigns was based was obtained from 17
	• •	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report.		drillholes and two wedged holes (from both Muga and Pintanos projects) drilled in 1990 and earlier. Historical exploration data collected by previous exploration efforts and acquired by the client, as well as publicaly available record sources, including technical reports and geological reports. The drilling programme complete in 1989-1990 was outlined in detail by E.N. Adaro. The historical programmes, in general, were well-documented.
	•	In cases where ‘industry standard’ work has been done	•	The new drillholes have been geologically logged, photographed, and analysed. 24 out of
		this would be relatively simple (e.g. ‘reverse circulation		36 of the holes were geophysically logged, 18 through the mineralised zone. Following
		drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.		logging and photographing, samples are marked in 0.3 m intervals and numbered for analysis. Core is sawed with hydraulic oil as the lubricating agent; half core is retained and shrink-wrapped, and samples to be analysed are bagged and secured with plastic ties and boxed for shipping to ALS Global (ALS) for crushing, grinding and splitting. Cored samples are analysed by inductively coupled plasma- optical emission spectrometry (ICP-OES) and X-ray fluorescence (XRF) by ALS. Sample preparation is in Seville, Spain and analysis work
				is completed in Loughrea, County Galway, Ireland. The ALS laboratories used are
				internationally accredited in the procedures and test work carried out.
			•	The historical holes contributed to a Maiden Inferred Mineral Resource in November 2013
				(Agapito Associates Inc.) and to several subsequent updates to the Mineral Resource
				estimates, including the one declared here. The historical drillholes containing potash
				mineralisation were sampled using a ‘grooving’ technique. This was completed by sawing
				a shallow ditch or several cuts in the cores surface. The samples were then submitted for
				geochemical analyses. 570 geochemical results are available for the 1989-1990 drilling
				campaign. The results were obtained through the internal POSUSA laboratory and were
				analysed for KCl, MgCl2, NaCl, insolubles, and clay. The intervals listed for these samples

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– Appendix A

Criteria	JORC Code explanation	Commentary	Commentary
			reflect the thickness of the sample as measured in the drill core; however, true thicknesses
			for the sample intervals is outlined in the historical strip logs to account for structural dip of
			the intervals. Samples were typically limited to 30 cm or less to maintain good sample
			resolution. No original analysis results are available for the unknown former drilling
			programme (prior to 1980s). Results for Javier-3, Vistana, and Nogueras are summarised
			in the E.N. Adaro report. These drillholes were only analysed for KCl, and therefore lack
			results pertaining to MgCl2(to determine carnallite content) or insolubles. It is unknown if
			the sample intervals account for true thicknesses based on structural dip or if they are
			simply reflective of the intervals as seen in drill core. No sample length restrictions are
			apparent as samples varied in thickness up to 1.74 m. The method of geochemical analyses
			is currently unknown for both the 1989-1990 drilling campaign and the other historical
			unknown drilling programme.
		•	An attempt to re-survey historical collar locations was partially successful; however, in many
			cases the collars could not be located, and therefore were not accurately re-surveyed.
			Difficulties converting the historical survey results are still noted and some drillholes are
			plotted with limited confidence.
		•	Geophysical wireline data and historical geological reports are of good quality and appeared
			to correlate reasonably well with historical assay results.

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– Appendix A

Criteria	JORC Code	explanation	Commentary	Commentary
Drilling	•	Drill type (e.g., core, reverse circulation, open- hole	•	Drilling procedures are unknown from historical Javier holes drilled prior to 1987,
techniques		hammer, rotary air blast, auger, Bangka, sonic, etc.)		including drillholes Javier-2, Javier-3, Vistana, Nogueras, Molinar, and Undués de
		and details (e.g., core diameter, triple or standard tube,		Lerda.
		depth of diamond tails, face- sampling bit or other type,	•	The drilling programme completed in 1989-1990 was outlined in detail by Empresa
		whether core is oriented and if so, by what method,		Nacional Adaro Investigaciones Mineras (E.N. Adaro 1989–1991). E.N. Adaro, state-
		etc.).		owned group tasked with exploration and development of Spain’s Mineral Resources,
				produced detailed reports and “reserve” studies of the Javier-Pintanos area.
			•	Historical drilling was completed with the Mayhew 1500 drill rig from June to August
				1989. During this time, JP-1 through JP-4 were completed. Holes were drilled open
				hole to core point. The tricone bit used for open hole drilling was reduced through
				stages from 12 1/4-inch to 5 7/8-inch diameter. Upon completion, the hole was
				abandoned and cemented through the 8 1/2-inch diameter drillhole. Approximately
				2,208 m were drilled in Muga, not accounting for some re-drilling in JP-3 and JP-4. For
				JP-3 and JP-4, the mineralised zone was drilled into and not cored for analysis. Both
				holes were re-drilled through the salt section to take the appropriate cores. No record
				of a re-drilled hole is available for JP-4; two sets of analyses were available for JP-3,
				listed as JP-3 and JP-3D. JP-3D was the re-drilled hole and was completely cored.
				Limited deviation data are available for JP-1, JP-2, JP-3, JP-3D, and JP-4 for the lower
				half/salt section and were used in the model. If no deviation surveys were found, then
				the holes were considered to be vertical.
			•	In 2013, a drilling programme was initiated at Muga. Holes were cored from surface.
				When the top of salt is reached, the mud is re-formulated to a super-saturated brine to
				eliminate or diminish dissolution of the highly soluble evaporite minerals. Drilling has
				been contracted to Geonor Servicios Técnicos S.L. of Galicia, Spain, using a
				Christensen CS3000; and Fordia Golden Bear and Sondeos y Perforaciones
				Industriales del Bierzo (SPI) SPIDrill 260. Drilling was supervised by Highfield
				geologists.

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– Appendix A

Criteria	JORC Code	explanation	Commentary	Commentary
Drill sample	•	Method of recording and assessing core and chip	•	Detailed information on core recovery for the historical programme is not available, but
recovery		sample recoveries and results assessed.		the analysis data are largely complete over the mineralised zones.
	•	Measures taken to maximise sample recovery and	•	Core recovery on the 2013–2019 drilling campaign averaged greater than 95% in Muga
		ensure representative nature of the samples.		in the mineralised zones, although some samples show dissolution due to
	•	Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.		undersaturated brine mud. Typically, these samples are thought to under-report the target potassium mineralogy because of the highly soluble nature of those minerals, but it is also possible that less desirable or deleterious mineralogy (i.e. MgO) may also under-report in this situation.
			•	PQ core is the recommended diameter for core, but in some cases the hole is completed
				with HQ. Core sampling procedure is well-documented in the 2013–2017 drilling
				programme. In total 12 drillholes (455.10 m) were drilled with PQ through the
				mineralised unit, another 19 drillholes (406.8 m) were completed with HQ diameter.
Logging	•	Whether core and chip samples have been	•	Lithology logs were completed for the historical drilling programmes. The 1989–1990
		geologically and geotechnically logged to a level of		drilling programme included Muga and Los Pintanos holes: Javier-3, JP-1, JP-2, JP-
		detail to support appropriate Mineral Resource		3D, JP-4, PP-2/2B, and PP-3. The sample intervals were comparable to industry
		estimation, mining studies and metallurgical studies.		standards (generally <30 centimetres [cm]), but the methodology is unknown. Thirty
	•	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.		centimetres is typically used for a maximum sample length for potash in order to assure samples are not diluted and confidence in mineralogy is maintained over the interval. Sample intervals for the unknown (pre-1987) drilling programme used a much larger sampling interval (up to 2.44 m) for Nogueras, Vistana, and Javier-3.
	•	The total length and percentage of the relevant intersections logged.	•	In the modern programme, cuttings were collected from the open holes and the core was logged, photographed, sampled, and analysed in approximately 0.3 m lengths.
			•	In both drillingcampaigns 100% of the relevant intersections were lithologicallylogged.

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– Appendix A

Criteria	JORC Code	explanation	Commentary	Commentary
Sub-sampling	•	If core, whether cut or sawn and whether quarter, half	•	For the historical holes, grooved samples were taken for analysis through the potash
techniques and		or all core taken.		mineralisation. These samples were produced by sawing a shallow channel into the core
sample preparation	•	If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.		surfaces. This is not usually considered good practice, but is sometimes used to keep the core intact. Independent technical advisor North Rim (Stirrett and Mayes, 2013)
	•	For all sample types, the nature, quality and appropriateness of the sample preparation		reanalysed available holes to test the validity of the historic data, as discussed below in “Quality of assay data and laboratory tests.”
		technique.	•	In the 2013–2019 drilling campaign, cored samples were halved and quartered, with a
	•	Quality control procedures adopted for all sub- sampling stages to maximise representivity of samples.		quarter sent for analysis. This sampling methodology is the modern industry standard. The sample intervals of approximately 0.3 m in length were taken over the length of the mineralised interval. Cores were usually PQ (85 millimetres [mm]), but in the case of
	• •	Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled.	•	difficult drilling conditions, coring was reduced to HQ (63.5 mm). This smaller core diameter is not ideal for sample analysis as some duplicates have shown variability. To try to mitigate this, duplicates are selected from HQ as true duplicates rather than on a quarter core sample. Quarter sample duplicates are selected for PQ core. In all cases, hole size was reduced to continue drilling in difficult drilling conditions (lost circulation) and is not part of normal procedure.
Quality of assay	•	The nature, quality and appropriateness of the	•	Geochemical results are available for the 1989–1990 drilling campaign, complete with
data and		assaying and laboratory procedures used and		360 samples in Muga. The results were obtained through the internal Potasas de Subiza
laboratory tests		whether the technique is considered partial or total.		S.A. (POSUSA) laboratory and were analysed for KCl, MgCl2, NaCl, insolubles, and clay.
	•	For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors		The intervals listed for these samples reflect the thickness of the sample as measured in the drill core; however, true thicknesses for the sample intervals is outlined in the historical strip logs to account for structural dip of the intervals. Samples were typically limited to 30 cm or less to maintain good sample resolution.
		applied and their derivation, etc.	•	No original sample analyses are available for the pre-1987 drilling programme. Results
	•	Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	•	for Javier-3, Vistana and Nogueras are summarised from the E.N. Adaro comprehensive reports (E.N. Adaro 1989–1991). These drillholes were only analysed for KCl, and therefore lack results pertaining to MgCl2(to determine carnallite content) or insolubles. The “grooving” technique on the historical sampling was used to minimise destruction of core and may not be representative. The method of geochemical analyses used for both the 1989–1990 drilling campaign and the pre-1987 drilling programme is unknown as is
				the identityof the laboratorythat conducted thegeochemical analyses.

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– Appendix A

Criteria	JORC Code explanation	Commentary	Commentary
		•	A resampling programme for Javier-Pintanos was carried out by North Rim (Stirrett and
			Mayes, 2013). Re-sampling on Vistana, Nogueras, and Javier-3 was carried out at the
			Litoteca de Sondeos in Spain, the state-run core laboratory. North Rim attempted to
			duplicate the historical sample intervals; their methodology is described below.
		•	For the re-sampling of historical core samples, the start and end of each sample was
			identified using blue corrugated plastic to ensure the proper intervals were selected for
			slabbing. For each sample, a line was drawn across the top after the core was fit together.
			Once the sample intervals were determined, one-quarter of the core was cut for sampling.
			A hand-held circular saw with a diamond-tipped blade was used to cut the core. Once the
			entire interval was cut, the cut surface was wiped down with a damp cloth to remove any
			rock powder generated by cutting. The quarter core was divided into individual samples
			by drawing straight lines across the core diameter in permanent black marker as identified
			by the blue plastic markers. The determination of individual samples was based entirely
			on the historical sample intervals. No additional sampling was completed. As the samples
			were chosen, they were labelled using a numbering scheme that incorporated both the
			drillhole number and a sample number (for example J3-583RS). “RS” was incorporated
			at the end of the sample to indicate “re-sample.” Each sample and its corresponding
			sample tag were placed into a waterproof, plastic sample bag and stapled to enclose the
			sample within the bag. Samples were placed into sturdy cardboard boxes and packed
			with styrofoam. Shipping sheets were completed that included well information, box
			numbers, sample numbers, and contact information and accompanied the samples to the
			Saskatchewan Research Council (SRC) Laboratories in Saskatoon, Saskatchewan,
			Canada. In the re-sampling programme, the correlation plot between the historical
			samples and their re-analysed equivalents has an average difference of 3.68% K2O
			overall. The results indicate a general over-estimation of grade within the historical
			samples, with 87% of the historical samples having higher K2O grade than the re-sampled
			analyses indicate. This is not a systematic difference, but instead indicates that the
			variation is more likely due to sampling technique rather than a problematic analytical
			technique or procedure.
		•	In the 2013–2019 sampling programme, chemical analysis was by ICP-OES and XRF.
		•	Highfield and ALS, the primary contract laboratory, maintained quality control procedures
			of standards, duplicates and blanks. Internal SRM, blanks and duplicates were inserted
			byHighfieldpersonnel duringsamplepreparation.

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– Appendix A

Criteria		JORC Code	explanation	Commentary	Commentary
				•	ALS inserted commercial standards BCR-113 and BCR-114 both potash fertilizer
					materials, a muriate of potash (MOP) and sulfate of potash (SOP), respectively, as well
					as their own internal standard as a blank material SY-4, a diorite gneiss.
				•	Duplicates were submitted to ALS and show good internal agreement.
				•	Highfield made multiple Standard Reference Material-type (SRM) samples representing
					low-, medium-, and high-grade (LG, MG, HG) potash material, and they show good
					accuracy and precision within a +2 standard deviation envelope based on 30, 31 and 27
					for HG, LG and MG, respectively. The insertion rate is one blank per 50 samples or batch;
					one SRM and one lab duplicate per 20 samples or batch.
				•	Check samples were tested at SRC and showgood agreement for K2O values.
Verification	of	•	The verification of significant intersections by	•	The re-sampling programme of historical cores was carried out under the supervision of
sampling	and		either independent or alternative company		North Rim and documented in a report to Highfield. The aim of the geochemical re-
assaying			personnel.		sampling programme was to acquire sufficient confidence in the historical chemical
		•	The use of twinned holes.		analyses data to develop a Mineral Resource estimate, to be reported in accordance with
		•	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.		the JORC Code. Only three drillholes with cored intervals containing potash mineralisation were available for re-sampling within the project area: Vistana, Nogueras, and Javier-3.
		•	Discuss any adjustment to assay data.	•	The available historical geophysical logs (run by Schlumberger) were compared estimated K2O from natural gamma and/or spectral gamma logs versus the assayed
					value, which showed very good agreement.
				•	ALS analysed samples both by ICP and XRF. In general, ICP analysis shows reasonable
					agreement with results produced by XRF, which report, consistently, slightly higher values
					of K2O. Other holes showed similar bias, thereby substantiating testing precision. The ICP
					method is the base method used for grade analysis.
				•	Highfield receives all chemical analyses in .XLS or .CSV format from the laboratories and
					one person is responsible for transferring those data into a master database and
					maintaining the QA/QC monitoring. The results of the QAQC samples are reviewed by
					Geoalcali and outliers are identified and sent for reanalysis.
				•	A database was built from the historical drillhole information by Highfield and checked
					against the historical reporting of chemical analyses and intervals listed on the lithologic
					logs.
				•	The master database was checked against the ALS-issued Certificates of Analysis.

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– Appendix A

Criteria JORC Code explanation	Commentary
Location of data points • Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control.	• Historical collar locations were re-located in most cases and re-surveyed. Some historical collars could not be located as many were drilled on agricultural land. Historical drill hole location maps consistently show locations and so suggest confidence in the hole coordinates. Historical data and maps are referenced to the European Datum 50 (ED50) and have been updated to the European Terrestrial Reference System 1989 (ETRS89) datum for compatibility with modern survey information. • All new locations from the 2013–2019 drilling programme are surveyed before and after drilling by a licensed surveyor.
Data spacing and distribution • Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied.	• Exploration drillhole spacing varies between 300-1000 m. 2013-2014 drilling campaigns were designed to fall on the historical seismic line traces. This was followed by infill drilling to refine the interpretation from previous campaigns. Then current drilling density is 1.66 DDH/km2 • Samples have been composited over the thickness of identified potash beds for the reporting of exploration results. • The drillhole spacing and distribution are deemed adequate to establish geologic and grade continuity commensurate with the Mineral Resource classification applied, as discussed under “Section – Mineral Resources” in this table. Geologic restrictions, allowances for unknown geologic anomalies, and downgrades of classification were applied toreasonably characterise geologicalconfidence.
Orientation of data in relation to geological structure • Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. • Historical holes were assumed to be vertical in the absence of deviation surveys. Deviation data show relatively vertical trajectories in surveyed holes. Data on bed orientation were incorporated into the database to calculate apparent true thickness. • The regional structure is discussed in more detail in “Geology” and in “Property Structure.” The deposit is bedded, and historical seismic maps showed evaporite unit propagating to the west at increasing depths. • The northern Loiti Fault System and the south Magdalena System delimitate the ore deposit, which shows a bearing perpendicular to these structures. • The drilling was orientated vertically as this was expected to be perpendicular to the true thickness of thepotash units which aregentlydippingand sub-horizontal.

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– Appendix A

Criteria	JORC Code	explanation	Commentary	Commentary
Sample	•	The measures taken to ensure sample security.	•	In the 2013–2019 drilling programme, Highfield personnel maintained effective chain of
security				custody procedures for the samples. Core was picked up at the drill site and brought to
				the secured warehouse for detailed logging and sampling. Following sampling (see
				sections on sampling herein), sample bags and boxes were secured with zip ties for
				shipping to the laboratory.
			•	There is no detail available on the procedures used to ensure sample security for the
				historicalsamples.
Audits or	•	The results of any audits or reviews of sampling	•	Besides the re-sampling programme carried out by North Rim, CPs compared historical
reviews		techniques and data.		chemical analyses data to estimate K2O from geophysical records. In addition, ALS
				assayed samples both by ICP and XRF and these values were compared as discussed
				in “Verification of sampling and assaying data.”

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– Appendix A

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

	Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
	Mineral	•	Type, reference name/number, location and	•	The Muga-Vipasca property comprises six permits: Goyo (ref. 25780) and Muga (ref. 3500)
	tenement and		ownership including agreements or material issues		are granted Investigation Permits (PI) in Navarra. Fronterizo (ref. Z-3502/N-2585) straddles
	land tenure		with third parties such as joint ventures,		the Navarra and Aragón border and its PI was granted 05 February 2014. Muga (ref. 3500)
	status		partnerships, overriding royalties, native title		is a granted Investigation Permit (PI) in Aragón. Goyo Sur (ref. 35920) and Muga Sur (ref.
			interests, historical sites, wilderness or national park		3524) were granted on 13 December 2019 and on 30 June 2020 respectively. All permits
			and environmental settings.		are held 100% by Geoalcali S.L, a wholly owned Spanish subsidiary of Highfield
		•	The security of the tenure held at the time of reporting along with any known impediments to	•	Resources. Property descriptions and land status were obtained from the list of lands as set forth in
			obtaining a license to operate in the area.		the documents provided by Highfield.
				•	The Competent Persons have reviewed the mineral tenure from documents provided by
					Highfield including permitting requirements, but have not independently verified the
					permitting status, legal status, ownership of the project area, underlying property
					agreements or permits.
				•	Exploration and exploitation of mineral deposits and other geological entities in Spain are
					governed by the Mining Law 22/1973, which is further governed by the Royal Decree
					2857/1978. All sub-surface geological structures, rocks, and minerals are considered the
					property of the public domain and are categorised into four sections under the Spanish law
					(A, B, C, and D), and must have mining authority authorisation and supervision for
					commercial exploitation. Section C covers the minerals of interest for Highfield, and a
					mining concession would need to be awarded prior to exploitation which requires the
					accompaniment of environmental permits and municipal licenses (electrical, water etc).
					Generally, exploration and investigation permits are applied for prior to applying for a
					mining concession (not legal obligation) and are aimed at determining the potential of the
					area through exploration practices (drilling, seismic, sampling etc.). These are granted
					through the region’s government/mining authority where the exploration or investigative
					work will take place.
				•	Exploration permits (PE) are valid for one year and can be renewed for one additional year.
					A PE allows only non-intrusive investigation, which is defined by the various Spanish
					regions and can vary.
				•	A PI has a term of up to three years and is renewable in three-year terms or longer
					depending on the scope of the intended work. Investigation permits carry with them
					municipal approval as theyarepubliclyreleased for communitydiscussion. To carryout

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– Appendix A

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				work under the investigation permit, the permittee must contract with the individual the
				landowners to allow for access and occupation of the land during the exploration.
			•	In order for both types of permits to remain valid, the applicable taxes must be paid and the
				permittee must comply with the applicable regulations and exploration plan approved by
				the mining authority. Investigation permits require assessment reporting which requires the
				permittee to submit working plans, budgets, and initiate work within certain time allotments.
				Exploration and investigation permits can be transferred in whole or in part to other third
				parties with enough technical and financial backing but must be authorised by the proper
				miningauthorities in Spain.
Exploration	•	Acknowledgment and appraisal of exploration by other	•	The historical drilling programme completed in 1989–1990 was outlined in detail by E.N.
done by other		parties.		Adaro (1989–1991). E.N. Adaro, the state-owned group tasked with exploration and
parties				development of Spain’s Mineral Resources, produced detailed reports and “reserve”
				studies of the Javier-Pintanos area.
			•	Potash was first discovered in the Ebro Basin in the Catalonia area in 1912 at Suria after
				the potash discoveries in Germany (Moore 2012). Salt was first discovered through drilling,
				later followed by four economic potash mining zones with a combined total thickness of
				2.0 to 8.0 m (Stirrett and Mayes 2013). The potash horizons in the area were identified to
				cover approximately 160 km 2at depths of approximately 500 m sub-surface, unless they
				were brought closer to surface by anticlinal or tectonic structures (Stirrett and Mayes 2013).
				Several deposits were located in the Catalonia area, including, Cardona, Suria, Fodina,
				Balsareny, Sallent, and Manresa. Several of these areas were developed into mines and
				are all flanked by anticlinal structures. The potash deposits in the Navarra region were not
				located until later, in 1927, through comparative studies to the deposits found at Catalonia
				(Stirrett and Mayes 2013).

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– Appendix A

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
			•	Production at Pamplona began in 1963 with a capacity of 250,000 tonnes per annum
				(tpa) of K2O. A thick carnallite member overlies the sylvinite, so in 1970 a refinery with
				the capacity for 300,000 tpa was built to accommodate for carnallite from the Esparza
				(Stirrett and Mayes 2013). Carnallite mining was ceased in 1977. Inclined ramps for the
				mine were located near Esparza, reaching the centre of the mine, with further shafts
				located at Beriain, Guendulain and Undiano. In 1982, 2.2 million tonnes of sylvinite were
				extracted with an average K2O grade of 11.7% (Stirrett and Mayes 2013). The operations
				in Navarra were closed in the late 1990s.
Geology	•	Deposit type, geological setting and style of	•	The Upper Eocene potash deposits occur in the sub-basins of Navarra and Aragón
		mineralisation.		provinces within the larger Ebro Basin. The Navarrese sub- basin includes the Muga-
				Vipasca (Javier) and adjoining Los Pintanos deposits. The first deposits in the region,
				occurring at the end of the Cretaceous period, were characterised by a regressive period
				with reddish continental deposits. The Eocene is marked by the beginning of tectonic
				compression, causing formation of subsiding basins parallel to the Pyrenees Mountains
				with emersion and erosion in some parts. The different basins are separated by orogenic
				events developing in the north and south as turbidite basin carbonate platforms. Towards
				the end of the Eocene epoch, the sedimentation axis migrated south to the Jaca-Pamplona
				Basin, on which the Oligocene materials were deposited. The pre-evaporitic basin
				sedimentation occurs in a context of continuous tectonic compression during the Eocene
				and Oligocene epochs, as synsedimentary tectonics of the end of the orogeny, with
				pronounced sediment influx. The influence of the turbidites towards the end of the Eocene
				epoch in the Bartoniense series, are sourced from the east initially into the Pintano Basin
				and contained by the Flexura de Ruesta and then from the northwest into the Basin as the
				Belsue Formation.
			•	This potash deposit contains a 100 m-thick Upper Eocene succession of alternating
				claystone and evaporites (anhydrite, halite, sylvite and carnallite).
				The evaporites accumulated in the elongated basin at the southern foreland of the
				Pyrenean range (Busson and Schreiber 1997). The evaporites overlie marine deposits and
				conclude in a transitional marine to non-marine environment with terrigenous influence.
				Open marine conditions existed in the Eocene-Oligocene epochs, progressing to a more
				restricted environment dominated by evaporation and the deposition of marl, gypsum,
				halite,andpotassium minerals. Later,tectonism and resultingsalt deformations formed

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– Appendix A

Criteria	JORC Code explanation	Commentary	Commentary
			broad anticlines, synclines and overturned beds. The Basin depocentre originated in the
			west, forming against the down-dropping Javier- Undués Syncline. In this area, the salts
			are thick and additional lower, less continuous beds developed in addition to a substantial
			thickness of PB, the uppermost potash mineralised bed. To the east, a broad basement
			high formed resulted in poorly developed or missing lower salt beds; the potash package
			is more compact and some beds are missing, particularly near the Basin edges.
			Basin edge influences include sediment influx, dark clays and light-coloured sand as well
			as soft sediment deformation and salt-veining which resulted from continued uplift and
			steepening beds. Basement-related faulting as well as structural influences at the Basin
			edge have resulted in repeated (or overturned) and thickened mineralised beds.
		•	Two fault systems dominate and bound the Muga sub-basin, to the north by the extension
			of the thrusting Loiti Fault and to the south by the Magdalena Fault. The Basin axis is
			defined by the Javier- Undués Syncline. To the east, the Basin climbs to the Flexura de
			Ruesta, a northwest-southeast offset block contemporaneous with evaporite deformation
			that resulted in a higher saddle area between the Muga and Pintano sub-basins.
			Approximately vertical faults parallel to the west of the Flexura de Ruesta have been
			defined by two-dimensional (2D) seismic surveys (Empresa Nacional Adaro
			Investigaciones Mineras [E.N. Adaro] 1988–1991). Basin continuity to the west-northwest
			has not been roughly defined by seismic surveys.
			A 2D high-resolution seismic survey was run for POSUSA in August–October 1988, by
			CGG over most of what is now the project area. This consisted of 9 lines totalling 55 km
			(Geoalcali 2012). The resulting structure maps for both the top (techo) and bottom (muro)
			of salt were developed by CGG in combination with the regional seismic, field map, satellite
			imagery, and drill hole data; however, this information seemed to be unreliable while
			progressing in drilling campaigns as the density markers were not confirmed by the
			lithologies in the drillholes. The potash-bearing zones lack any velocity/density contrasts
			within the salt; it is not possible to detect potash or map the structure of the zone directly.
			Coverage of the seismic interpretation does not extend to the northwest part of the basin.
		•	Potash is used to describe any number of potassium salts. By and large, the predominant
			economic potash is sylvite: a KCl usually found mixed with salt to form the rock sylvinite
			which may have a K2O content of up to 63% in its purest form. Carnallite, a potassium
			magnesium chloride (KCl•MgCl2•6H2O), is also abundant, but has K2O content only as high
			as 17%. “Carnallite” is used to refer to the mineral and the rock interchangeably,although

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– Appendix A

Criteria	JORC Code explanation	Commentary	Commentary
			“carnallitite” is the more correct terminology for the carnallite and halite mixture. Besides
			being a source of lower grade potassium, carnallite involves a more complex production
			path, so it is less economically attractive. The depositional environment is that of a restricted
			marine basin, influenced by eustasy, sea floor subsidence, and/or uplift and sediment input.
			It is suggested that the basin is a combination of reflux and drawdown. Reflux represents
			a basin isolated from open marine conditions thereby restricting inflow, increasing density,
			and increasing salinity. Drawdown is simple evaporation in an isolated basin resulting in
			brine concentration and precipitation. This is the classic “bulls- eye” model (Garrett 1996).
			In this case, the basin is further influenced by erosion at the basin edges due to
			contemporaneous and post-depositional uplift, resulting in localised shallowing and
			sediment influx (Ortiz and Cabo, 1981). In that classic model, a basin that is cut off from
			open marine conditions will experience drawdown by evaporation in an arid to semi-arid
			environment. In the absence of sediment influx, precipitation will proceed from limestone to
			dolomite to gypsum and anhydrite to halite. Depending on the composition and influences
			of the brine at that time, the remaining potassium, magnesium, sulfates, and chlorides will
			progress from potassium and magnesium sulfates to sylvite and then carnallite. The
			formation of sylvite and carnallite are proposed herein as secondary and primary,
			respectively.
		•	In the Muga - Vipasca Project area, the mineralogy is dominated by sylvinite and some
			carnallite appearing as medium red-orange and white, largely coarse crystals in bands and
			in heavily brecciated beds with high insoluble material, largely fine-grained clays, anhydrite
			and marl. The upper potash beds transition to finely banded light brown marls and clays.
			The salts just below the upper potash tend to be dark grey to black. In some lower beds,
			halite becomes brownish, sandy to coarsely granular sand and sandstone as sediment
			influx from the basin edges. In portions of the halite beds, sediment influx from the basin
			edges is seen as sandy to coarsely granular sands and sandstones. The lower salt is
			banded, exhibits very large cubic crystals and, in some cases, high angles and folding
			indicative of recrystallisation and structural deformation. The literature denotes this salt as
			the “sal vieja” or “old salt” (Ortiz and Cabo 1981). The evaporite beds and bands, in general,
			are separated by fine to very coarse crystallised and recrystallised salts, generally grey,
			sometimes light to medium honeybrown or white,with anhydrite blebs,nodules and clasts.

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– Appendix A

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Drill hole information	•	A summary of all information material to the understanding of the exploration results including a	•	Not applicable.
		tabulation of the following information for all Material
		drill holes:
		o easting and northing of the drill hole collar
		o elevation or RL (Reduced Level— elevation
		above sea level in metres) of the drill hole collar
		o dip and azimuth of the hole
		o down hole length and interception depth
		o hole length.
	•	If the exclusion of this information is justified on the
		basis that the information is not Material and this
		exclusion does not detract from the understanding of the
		report, the Competent Person should clearly explain
		why this is the case.

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– Appendix A

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Data aggregation	•	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade	•	Not applicable.
methods		truncations (e.g. cutting of high grades) and cutoff
		grades are usually Material and should be stated.
	•	Where aggregate intercepts incorporate short lengths of
		high grade results and longer lengths of low grade
		results, the procedure used for such aggregation should
		be stated and some typical examples of such
		aggregations should be shown in detail.
	•	The assumptions used for any reporting of metal
		equivalent values should be clearly stated.
Relationship between	•	These relationships are particularly important in the reporting of Exploration Results.	•	Not applicable.
mineralisation widths and intercept	•	If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
lengths	•	If it is not known and only the down hole lengths are
		reported, there should be a clear statement to this effect
		(e.g. ‘down hole length, true width not known’).
Diagrams	•	Appropriate maps and sections (with scales) and	•	Figures illustrating the Geology, Drilling and relevant mineralisation relating to the Muga-
		tabulations of intercepts should be included for any		Vipasca and Pintano properties and the current footprint of the declared Mineral
		significant discovery being reported. These should		Resources are contained within the 2018 Technical Report and the 2020 Muga-Vipasca
		include, but not be limited to a plan view of drill hole		MRE Statement Memo Report.
		collar locations and appropriate sectional views.

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– Appendix A

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Balanced	•	Where comprehensive reporting of all Exploration	•	Updated analysis results are presented in previous Highfield ASX releases.
reporting		Results is not practicable, representative reporting of
		both low and high grades and/or widths should be
		practiced to avoid misleading reporting of Exploration
		Results.
Other	•	Other exploration data, if meaningful and material,	•	A 2D high-resolution seismic survey was run for POSUSA in August–October 1988, by
substantive		should be reported including (but not limited to):		CGG over most of what is now the project area. This consisted of 9 lines totalling 55 km
exploration		geological observations; geophysical survey results;		(Geoalcali, 2012). An additional 2D seismic was run at a later date (unknown) increasing
data		geochemical survey results; bulk samples—size and		the total available seismic to 16 lines, totalling 87.3 km (RPS 2013).
		method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	•	RPS of Calgary, Alberta, Canada, completed a re-interpretation of the 2D historical seismic lines and profiles on behalf of Highfield. The re-interpretation programme was designed to review the overall accuracy of the historical data in terms of good correlation to drillhole data and geological intersections, as well as identify any sub-surface structures that may
				adversely affect the salt-bearing strata within the project area. A total of 16 lines were
				reviewed and were tied to wells with historical wireline data from the 2D seismic RPS. The
				paper copies of the seismic were digitised as the original tapes were unavailable.
			•	RPS interpreted that there is no indication of widespread salt removal due to faulting or
				dissolution. Deep structural features are noted across the project area, and only poor
				quality seismic data exist over these features. A large-scale structural high is present
				between Muga and Los Pintanos areas, separating them geologically.
			•	The CPs initially used these structural data, but the historical map is modified and corrected
				to reflect updated drill hole information.

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– Appendix A

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Further work	•	The nature and scale of planned further work (e.g. tests	•	The drilling of one hole to 750m depth in the Muga Sur area will be completed in 2022 and
		for lateral extensions or depth extensions or large-scale		the remaining drilling to support the exploration targets will be completed in Years 4 to 7 of
		step-out drilling).		the mine life from underground developments.
	•	Diagrams clearly highlighting the areas of possible
		extensions, including the main geological
		interpretations and future drilling areas, provided this
		information is not commercially sensitive.

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– Appendix A

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC	Code explanation	Commentary	Commentary
Database integrity	•	Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.	• •	Composite values and hole depths/coordinates in the Strat3D geologic block model were visually compared (on screen) with values in the database values for accuracy. Block model grade and thickness results were compared with the drill hole database to ensure a realistic representation of the composites in the vicinity of drill holes.
	•	Data validation procedures used.	•	In modern holes, duplicate and check analysis samples were prepared for select intervals
				in each potash cycle. Duplicate cores were quartered and sent to ALS for analysis. ALS
				incorporated blank, repeat, and potash standard samples in the testing protocol. Check
				samples were sent to a second qualified laboratory (SRC, Canada) to verify results. ALS
				maintains its own internal procedure and chain of custody to high industry standards.
				There was good agreement in the duplicates.
			•	Both ALS and SRC are laboratories of international repute for the analysis of potash. They
				maintain their own QC programme. QC measures, and data verification procedures
				applied, include the preparation and analysis of standards, duplicates, and blanks.
			•	Check samples were sent either to ALS and SRC, and also showed good agreement.
Site visits	•	Comment on any site visits undertaken by the Competent Person and the outcome of those visits.	•	The previous CPs from Agapito Associates visited the ALS Laboratory Group analysis sample preparation facility in Seville, Spain on 30 August 2013.
	•	If no site visits have been undertaken indicate why this is the case.	•	The visits were conducted for the purposes of exploration planning, data collection, site observation, core inspection, drill rig inspection, chemical laboratory inspection, and
				QA/QC confirmation.
			•	Ms Anna Fardell, a Member of the Australian Institute of Geoscientists (6555) and an
				employee of SRK Consulting (UK) Limited is the CP for the updated Mineral Resource
				Statement. Ms Fardell visited the Project in July 2017 and visited a number of drillhole
				collars and observed the drilling procedures used at Vipasca P.I., and the core storage
				and sampling procedures in the core yard.
			•	No changes were implemented after the July2017 visit as allprocedures were found to

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– Appendix A

Criteria	JORC	Code explanation	Commentary	Commentary
				be followed diligently and to high industry standards.
			•	Dr Mike Armitage, a Corporate Consultant and Chartered Geologist employed by SRK
				Consulting (UK) Limited visited the site in September 2019 to provide guidance and review
				of the MRE estimation work in progress by Geoalcali.
Geological interpretation	• •	Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit. Nature of the data used and of any assumptions made.	• •	To the southeast and east, the model is bound by a structural limit called Ruesta fault. To the south, the deposit is bound by the plunging La Magdalena anticline, which is delimited by a fault in its southern limb. The current Mineral Resource is limited by
	•	The effect, if any, of alternative interpretations on		the northern limb of Magdalena anticline and does not extend towards this
		Mineral Resource estimation.		discontinuity, as no drilling has proved the extension.
	•	The use of geology in guiding and controlling	•	While the stratigraphy in the Vipasca Licence area dips to the southwest and is
		Mineral Resource estimation.		conformable with that in the Muga Licence area, the geology is more complex than
	•	The factors affecting continuity both of grade and		the Muga Licence area and the grade and thickness of the potash seams are
		geology.		lower. Despite these differences, however, the potash seams can be correlated
				with confidence within and between these areas and there is sufficient data
				quantity and quality to enable the Mineral Resource to be extended into the
				Vipasca Licence area as intended. The estimated Mineral Resources remain open
				at depth to the west inside the Vipasca permit area.
			•	The extent of the Mineral Resource is between 180 m and 1400 m below surface
				and it is contained entirely within the Investigation and Mining Permits held by the
				Company.
			•	Grade parameters were composited as length-weighted averages of the individual analyses
				over a continuous bed thickness. In most instances, top and bottom bed contacts are
				gradational, introducing some trade-off between grade and thickness. Contacts were
				selected to maximize thickness while maintaining a composite grade as close as possible
				to 12.0% K2O with a true thickness equal to greater than 1.5 m. Depending upon the vertical
				grade distribution, bed thicknesses less than 1.5 m and composite grades less than 8.0%
				K2O were required in some instances to create a robust geologic model.
			•	Structural dips were calculated from the base-of-salt surface constructed from seismic,
				outcrop,and drill hole data. Dips in individual beds were adjusted locally bystackingthe

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– Appendix A

Criteria		JORC	Code explanation	Commentary	Commentary
					variable-thickness interburden and potash beds above the base- of-salt surface.
				•	Drillhole and seismic indicate generally predictable bed continuity across the property,
					nonetheless variation in potash thickness, grade, and mineralogy between drill holes is
					present. Faults, folds, and other structural disturbances can limit mineralisation locally.
					Potash quality can be affected by varying depositional environments or structure, including
					depositional highs, syngenetic faulting, basement carbonate mounds, algal reefs, post-
					depositional gypsum dewatering, groundwater dissolution along fault conduits, and by
					other complex features.
				•	At this stage of the exploration programme, Mineral Resources are classified as
					Measured,Indicated,and Inferred only.
Dimensions		•	The extent and variability of the Mineral Resource	•	The mineralisation occurs in potash beds P0, PA, PB, P1, P2, and P4 at least over an area
			expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower		spanning approximately 32 km 2. Potash bed P3 also appears in the basin, but it does not have economic interest.
			limits of the Mineral Resource.	•	The mineralisation ranges in depth between 180 m and 1,400 m below surface. P0 ranges
					from 0.6 to 7.8 m in thickness, the grade varies between 0.7-16.1% K2O; the MgO content
					ranges between 0.09-19.8% and the insoluble content between 10.59-25.21%. PA ranges
					from 0.78 to 6.3 m in thickness, the grade varies between 0.84-18.27% K2O; the MgO
					content ranges between 0.05-6.11% and the insoluble content between 7.12-28.91%. PB
					ranges from 0.77 to 12.9 m in thickness, the grade varies between 0.32-18.28% K2O; the
					MgO content ranges between 0.08-2.34% and the clay content between 7.68-27.25%. P1
					ranges from 0.83 to 10.5 m in thickness, the grade varies between 5.42-15.26% K2O; the
					MgO content ranges between 0.07-0.21% and the insoluble content between 7.67-15.85%.
					P2 ranges from 1.8 to 6.9 m in thickness, the grade varies between 12.09-15.63% K2O; the
					MgO content ranges between 0.19-0.21% and the insoluble content between 7.17-13.06%.
					P4 intersected in J13-09, has an average thickness of 3.3 m, an average grade of 13.71%
					K2O, an average MgO content of 0.19% and insoluble content of 8.85%.
				•	Secondary grade constituents (MgO, insoluble and halite) were modelled with the block
					model and show a degree of variabilitysimilar to K2Ograde.
Estimation	and	•	The nature and appropriateness of the estimation	•	The grade and tonnage estimates was quantitatively estimated using a computer 3D
modelling			technique(s) applied and key assumptions, including		gridded- seam geologic (block) model constructed with Strat3D v 2.2.82.0 software.
techniques			treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from datapoints. If a computer assisted	•	Data utilised in the model include historic and modern drillhole logs and chemical analyses, historic and modern interpretations of 2D seismic surveys, surface topography

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Criteria JORC Code explanation Commentary

Criteria JORC Code explanation Commentary

estimation method was chosen include a description of computer software and parameters used. • The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data. • The assumptions made regarding recovery of by- products. • Estimation of deleterious elements or other non- grade variables of economic significance (eg sulphur for acid mine drainage characterisation). • In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed. • Any assumptions behind modelling of selective mining units. • Any assumptions about correlation between variables. • Description of how the geological interpretation was used to control the resource estimates. • Discussion of basis for using or not using grade cutting or capping. • The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data, if available. • • • • • • • • •

in the form of a digital elevation model (DEM), permit boundary lines and historic resource analysis. Grade parameters used in the block model were composited as length-weighted averages of the individual analyses over a continuous bed thickness. No drillholes or drillhole data were excluded from the model within the basin limiting structures. No sample or composite outliers were identified, and none were excluded, cut, or capped in the model. Bed thicknesses were corrected to true thicknesses for modelling according to local dip and downhole deviation survey data. Historic holes lacking deviation surveys were assumed vertical. The potash beds of interest were gridded into single layers of 25 m2blocks of variable vertical thickness representing the local thickness of the respective potash bed. For grade estimation, the block size was increased to 250 m2blocks. Block true thicknesses was interpolated into 25m blocks by inverse distance cubed. An exponent of 3.0, instead of a lower value such as 2.0, was selected to enhance local variability in the model consistent with the variability evident in the drillholes. The block thickness estimation was conducted using an anisotropic elliptical search radius with a major axis of 4,000 m oriented at an azimuth of 120º, parallel to the axis of the basin and a minor axis of 2,000 m perpendicular to the major axis. A maximum of 20 and minimum of 1 drillhole composites within the search ellipse was used for thickness estimation. The anisotropic model was used as it reflects the axis of the Muga basin and the relative geological continuity observed in the drillholes. Variograms were modelled for the PB seam and the normalised PB variogram parameters in the table below were used for grade estimation: Grade estimation was conducted by Ordinary Kriging for the main and the secondary parameters using two anisotropic searches orientated onanazimuthof 120°. The search Along Strike Across Strike K2O 0.22 0.78 2500 500 MgO 0.25 0.75 2500 1600 Na2O 0.26 0.74 1200 350 CaSO4 0.25 0.75 1000 675 Insolubles 0.29 0.71 1000 350 Variable C0 (Nugget) C1 (Partial sill) Range (m)

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– Appendix A

Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary
•	neighbourhood parameters are shown in the table below: The grade and thickness were visually validated by comparing the composite grades and thicknesses to the block values and all statistically compared for each seam. Comparisons showed the input values compared closely to the estimated values with appropriate smoothing betweensample points. Along Strike Across Strike Min Max 1 1500 1000 6 10 2 2500 1600 3 10 120 Search Pass Azimuth Search Radius (m) No Samples
Moisture • Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content. • • •	Tonnages are estimated using variable bulk density of 2.12 g/cm3based on bulk density measurements from core samples; in the case of PA, the seam with higher MgO content, a regression was applied to calculate the density as there was a strong relationship between density and MgO content in this seam. There is negligible water within the mineral structure in the potash which has no impact on the density. The mineralisation is dominated by evaporites rich in K2O. Sylvinite is a mechanical mixture of halite (NaCl) and sylvite (KCl) typically with inclusions of insolubles(typicallyclays)and limited carnallite(KCl·MgCl2·6H2O).
Cutoff parameters • The basis of the adopted cutoff grade(s) or quality parameters applied. • •	The upper horizons, P0 to PB are likely to be mined in a continuous sequence in the central part of the Muga Basin as there is very little interburden between them. In this instance the minimum thickness of the total unit P0, PA and PB has been assessed to ensure thinner central horizons are not excluded. A minimum thickness of 1.7 m has been applied to this combined package of horizons. In other areas where the horizons separate and cannot be mined together a minimum mining thickness of 1.5 m has been applied on the assumption the proposed equipment can be selective to 1.7m. A minimum thickness of 1.5 m was also applied to P1, P2 and P4 to constrain the mineral resources. The Company has sourced technical and economic parameters from the feasibility study. The assumed parameters include processing recovery, mining and processing costs per tonne run of mine, and G&A, logistics to port and freight costs per tonne MOP. A commodity price of USD 327/t MOP has been assumed, and mineral royalties have been considered. A cut-off grade has been calculated using these assumptions and rounded upto 8% K2O as aprocessingrecoveryof 95% has been

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Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary
• •	applied and this is not supported by testwork on material lower than 8% K2O. The parameters were reviewed by SRK and considered appropriate for the mining scenarioproposed. SRK has verified the input parameters and the cut-off grade calculation, alongside the technical reasoning behind the proposed production scenario. SRK has tested the sensitivity of the cut-off grade to operating costs and a contingency. SRK is confident that the Mineral Resource as reported fulfils the requirement that it should have potential for economic extraction. No constraints have been applied for insolubles or carnallite (that is, magnesium) content as it is expected the material can be blended to reach the appropriateproduct specification. Parameters Unit Value Processing Recovery % 95 Operational Costs Mining Cost USD/tore 7.2 Processing Cost USD/tore 8.22 Sustaining Capex USD/tore 1.36 G&A Cost USD/tore 1.02 Project Capex USD/tore 7.68 Logistics, Transportation and Port Handling USD/tproduct 17 Selling Price Muriate of Potash USD/tproduct 327
Mining factors or assumptions • Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made. • •	The MRE does not include any out-of-bed dilution. The analysis assumes a base case mining scenario with multi-seam room-and-pillar mining.

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Criteria	JORC Code explanation	Commentary	Commentary
Metallurgical	• The basis for assumptions or predictions regarding	•	The detailed economic analysis supporting reasonable prospects for eventual economic
factors or	metallurgical amenability. It is always necessary as part		extraction of the Mineral Resource assumes processing with conventional crushing,
assumptions	of the process of determining reasonable prospects for		flotation and crystallisation.
	eventual economic extraction to consider potential	•	Flotation was used successfully to process similar sylvinite mineralisation at POSUSA -
	metallurgical methods, but the assumptions regarding		Adaro’s Navarra and Subiza potash mines at Sierra del Perdón from the 1970s through
	metallurgical treatment processes and parameters		1990s.
	made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.	•	Preliminary flotation testing conducted by Geoalcali on sylvinite core from Muga supports KCl recoveries in excess of 95%, similar to the historical Navarra and Subiza potash mines and sufficient to justify reasonable prospects for eventual economic extraction. 95% was used for the purposes of calculating the cut-off grade.
		•	High insolubles and high magnesium (associated with carnallite) have the potential to
			reduce KCl recovery during the flotation process.
Environmental	• Assumptions made regarding possible waste and process	•	Environmental factors did not impact the reporting of Mineral Resources however
factors or	residue disposal options. It is always necessary as part of		exclusion zones were considered for the reporting of Ore Reserves.
assumptions	the process of determining reasonable prospects for
	eventual economic extraction to consider the potential
	environmental impacts of the mining and processing
	operation. While at this stage the determination of potential
	environmental impacts, particularly for a greenfields project,
	may not always be well advanced, the status of early
	consideration of these potential environmental impacts
	should be reported. Where these aspects have not been
	considered this should be reported with an explanation of
	the environmental assumptions made.

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– Appendix A

Criteria	JORC Code explanation		Commentary	Commentary
Bulk density	• Whether assumed or determined. If assumed, the basis for		•	Density measurements were conducted on pieces of diamond core and cover all the
	the assumptions. If determined, the method	used, whether		major lithologies at Muga throughout the 2013-2019 drilling campaigns by the ALS
	wet or dry, the frequency of the measurements, the nature,			Sevilla Laboratory.
	size and representativeness of the samples.		•	Tonnages are estimated using variable bulk density of 2.12 g/cm3based on bulk
	• The bulk density for bulk material must have been measured			density measurements from core samples; in the case of PA, the seam with higher
	by methods that adequately account for void spaces (vugs,			MgO content, a regression was applied to calculate the density as there was a strong
	porosity, etc.), moisture and differences between rock and			relationship between density and MgO content in this seam. There is negligible water
	alteration zones within the deposit.			within the mineral structure in the potash which has no impact on the density.
	• Discuss assumptions for bulk density estimates used in the
	evaluation process of the different materials.
Classification	• The basis for the classification of the Mineral Resources into		•	Based on the definitions and guidelines presented in the JORC Code, SRK has
	varying confidence categories.			assigned portions of the Mineral Resource into the Measured, Indicated and
	• Whether appropriate account has been taken of all relevant			Inferred categories.
	factors (i.e. relative confidence in	tonnage/grade	•	In determining the appropriate classification criteria, several factors were
	estimations, reliability of input data, confidence in continuity			considered:
	of geology and metal values, quality,	quantity and		o JORC Code reporting requirements and guidelines;
	distribution of the data).			o Quality of data used in the estimation;
	• Whether the result appropriately reflects the Competent			o Quantity and density of sample data;
	Person’s view of the deposit.			o Geological knowledge and understanding, focusing on geological and grade
				continuity;
				o Quality of the geostatistics and interpolated block model; and
				o Experience with other deposits of similar style.
			•	The Mineral Resource classification appropriately reflects the CP’s view of the
				deposit.
			•	Vipasca has been classified as Indicated and Inferred due to the more complex and
				discontinuous nature of the potash seams in this area. Areas of P1 and P2 seams
				where the drill spacing is <1,100m and there is good continuity are classified as
				Indicated, limited to 800m beyond the last drillhole. P0, PA and PB are classified as
				Inferred and the resources have been limited to 1000m beyond the last drillhole.
			•	Muga has been classified as Measured, Indicated and Inferred with the following

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– Appendix A

Criteria	JORC Code explanation	Commentary	Commentary
			criteria:
			o Measured Mineral Resources have been reported in well drilled areas (drill
			spacing less than 1000 m) which show the simplest geology and most
			consistent grade. The classification is extended up to 800 m beyond the last
			drillhole, dependant on the geological setting. These areas have been
			estimated with the maximum number of samples and show good visual and
			statistical reconciliation against the input sample data.
			o Indicated Mineral Resources have been reported for the more sparsely drilled
			areas, up to a drill spacing of 1,300 m, in areas of simple or moderate
			geological complexity and grade variability. The areas must also visually
			reconcile against the input data and are extended up to 800 m beyond the
			last drillhole.
			o Inferred Mineral Resources are those on the periphery of the basin where
			there is sparse information and less reliable grade estimates. These areas
			are limited to an extrapolation distance of 1,000 m past the last potash
			bearing drillhole and are limited geologically by fault boundaries. Inferred
			Resources are also classified where there is a single intersection within the
			potash horizon.
Audits or	• The results of any audits or reviews of Mineral Resource	•	The mineral resource estimate was produced by Geoalcali under the supervision of
reviews	estimates.		Anna Fardell of SRK Consulting (UK) Ltd. The final parameters, classification and
			block model was reviewed according to SRK’s internal peer review process, and in
			draft form by the Company.
		•	No other external reviews have been completed to date.

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– Appendix A

Criteria	JORC Code explanation	Commentary	Commentary
Discussion of	• Where appropriate a statement of the relative accuracy and	•	The stated Mineral Resource is a combination of Measured, Indicated and Inferred
relative	confidence level in the Mineral Resource estimate using an		Mineral Resources, generally reflecting the apparent grade continuity as well as
accuracy/	approach or procedure deemed appropriate by the		geological continuity and sample spacing.
confidence	Competent Person. For example, the application of	•	There is a high level of confidence in the underlying drillhole data.
	statistical or geostatistical procedures to quantify the relative	•	There is a high level of confidence in the geological continuity of the mineralisation
	accuracy of the resource within stated confidence limits, or,		above the cut-off grade of 8% K2O.
	if such an approach is not deemed appropriate, a qualitative	•	The variography has characterised the spatial correlation between grades and
	discussion of the factors that could affect the relative		shows grades are correlated sufficiently.
	accuracy and confidence of the estimate. • The statement should specify whether it relates to global or	•	There is a good degree of confidence in the accuracy of block estimates, which were validated using several methods to ensure the estimated grade provides a
	local estimates, and, if local, state the relevant tonnages,		reasonable reflection of the underlying sample data. The block model has been
	which should be relevant to technical and economic		validated on both a global and local scale. New drilling in the Vipasca Licence area
	evaluation. Documentation should include assumptions		has added new areas to the Mineral Resource.
	made and the procedures used. • These statements of relative accuracy and confidence of the	•	The Mineral Resource tonnage has increased by 14.91 Mt to 282.26 Mt and the grade of the Mineral Resource has decreased from 12.4% K2O to 11.8% K2O. The
	estimate should be compared with production data, where		reasons for the decrease in grade and additional tonnage are the new drilling in the
	available.		Vipasca Licence area has added new areas to the Mineral Resource with lower
			grade than previously in the Muga Licence area. The new thickness interpolation
			has decreased the thicknesses of the potash horizons at the edges of the basin,
			which has decreased the tonnage in the Muga Licence area slightly, and the lower
			grade intercepts in Vipasca have influenced the grades at the western edge of the
			Muga Licence which has decreased the block model grades at the western edge of
			that licence.
		•	The updated MRE is not materially different to that produced in 2018.
			Notwithstanding this, the work has improved the geological understanding of this
			area of the deposit and the confidence in the Mineral Resource as a whole.

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– Appendix A

Section 4 Estimation and Reporting of Ore Reserves

(Criteria listed in section 1, and where relevant sections 2 and 3, also apply to this section.)

Criteria	JORC Code explanation	Commentary	Commentary
Mineral	• Description of the Mineral Resource estimate used as a basis	•	The Mineral Resource estimate as presented inError! Reference source not found.of t
Resource estimate for	for the conversion to an Ore Reserve. • Clear statement as to whether the Mineral Resources are		his report has been used as the basis for conversion to Ore Reserves as presented in Error! Reference source not found..
conversion to Ore Reserves	reported additional to, or inclusive of, the Ore Reserves.	•	The Mineral Resources presented are inclusive of those Mineral Resources converted to
			Ore Reserves.
		•	SRK has restricted the Ore Reserve estimate to only Resources classified as Measured
			and Indicated.
Site visits	• Comment on any site visits undertaken by the Competent	•	SRK was engaged to undertake an independent validation review (the “Independent
	Person and the outcome of those visits.		Validation Review” or “IVR”) of the end-to-end proposals for the Muga Potash Project. The
	• If no site visits have been undertaken indicate why this is the		aim of the IVR was to validate the methodology and output of all aspects of the Project at
	case.		that point in time with following site visits undertaken: November 2019: Site visits and kick-
			off meetings (Bray, Willis, Castanho, Chapman and SRK Associates covering Cost
			Estimation and EPCM). February 2020: Project completion meeting (Bray and Willis).
		•	Dr Mike Armitage visited site in September 2019 to provide guidance and review of the
			MRE estimation work in progress by Geoalcali.
		•	In November 2018, SRK Principal Environmental Consultant, John Merry, reviewed the
			project site and undertook discussions with the in-country Geoalcali team on the
			Environmental and Social aspects and project permitting. John was accompanied on the
			site visit by Nuno Castanho for additional site familiarisation, discussions on mine planning
			and managing the data collection for the SRK team.
		•	Anna Fardell (CP for Mineral Resources) visited the Project in July 2017 as part of a
			separate commission to independently review the Mineral Resource estimate, visiting a
			number of drillhole collars and observed the drilling procedures, core storage and sampling
			procedures in the core yard.
Study	• The type and level of study undertaken to enable Mineral	•	The technical and economic viability of mining potash at the Project has been confirmed by
status	Resources to be converted to Ore Reserves.		SRK’s report “An Independent Technical Review of the Ore Reserve estimate for the Muga-
	• The Code requires that a study to at least Pre-Feasibility Study		Vipasca Potash Project, Spain” (November 2021). The type and level of individual studies
	level has been undertaken to convert Mineral Resources to Ore		that support the report have been carried out to an overall studystatus considered to be at

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– Appendix A

Criteria	JORC Code explanation	Commentary	Commentary
	Reserves. Such studies will have been carried out and will have		Feasibility Level.
	determined a mine plan that is technically achievable and	•	In SRK’s opinion, the modifying factors applied in the are appropriate and the economic
	economically viable, and that material Modifying Factors have		evaluation demonstrates the economic viability of the Ore Reserve under the currently
	been considered.		assumed valid set of assumptions.
Cut-off	• The basis of the cut-off grade(s) or quality parameters applied.	•	The overall cut-off grade utilised for mining is 8% K2O (noting minor selective areas at 7.6%
parameters			K2O).
		•	The geological model is used to target the optimal grouping of seams for maximum grade
			(%K2O) limited by the minimum mining height with the appropriate extraction ratio applied.
Mining factors or	• The method and assumptions used as reported in the Pre-	•	In the production panels, the seams are constrained by a minimum mining height of 2.0 m
assumptions	Feasibility or Feasibility Study to convert the Mineral Resource		for the planned mining equipment.
	to an Ore Reserve (i.e. either by application of appropriate factors by optimisation or by preliminary or detailed design). • The choice, nature and appropriateness of the selected mining method(s) and other mining parameters including associated design issues such as pre-strip, access, etc.	•	The shallow dipping seams utilised a set of two parallel roadways as the main development access, one for fresh air intake and access and the other for exhaust ventilation and conveyor belt materials handling system. The mining method approach is a typical Room and Pillar (“R&P”) panel layout. The room width was specified at 8 m and the height and
	• The assumptions made regarding geotechnical parameters (eg		pillar size would be determined by the total combined seam thickness, geotechnical
	pit slopes, stope sizes, etc), grade control and pre-production		constraints due to depth below surface and/or any equipment limitations. SRK notes that
	drilling.		Geoalcali plans to mine the shallow dipping seams as a whole seam approach (with the
	• The major assumptions made and Mineral Resource model used for pit and stope optimisation (if appropriate). • The mining dilution factors used. • The mining recovery factors used. • Any minimum mining widths used. • The manner in which Inferred Mineral Resources are utilised in	•	exception of two minor areas where the potash seams (P0 and P0A) can be mined on separate horizons), including waste dilution between seams, in order to facilitate the extraction process and optimise the mining sequence. The inclined potash seams in the NW of the deposit required an alternative mining approach, to the R&P panel layout used for the shallow dipping seams, to minimise dilution
	mining studies and the sensitivity of the outcome to their		and maximise extraction, taking into consideration the geotechnical constraints and
	inclusion.		equipment limitations. An adaptation of the existing R&P method was considered for
	• The infrastructure requirements of the selected mining methods.		developing a practically achievable inclination for the roadways and mining rooms while
			maintaining the same production targets and utilising the same excavation and material
			handling method.
		•	For the inclined seams the planned dilution effect was considered for extraction by Road
			headers with 15 cm in the roof and the floor. The seams are constrained by a minimum
			mining height of 2.0 m.
		•	The revised mineplan also incorporates the requirements of the environmentalpermitting

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– Appendix A

Criteria	JORC Code explanation	Commentary	Commentary
			process, particularly related to subsidence controls and exclusion zones around towns,
			infrastructure and objects of significant cultural importance.
		•	The original herringbone panel layout (basis for the 2018 Ore Reserve Estimate) was
			developed based on geotechnical characterisation work out by Geoalcali and third-party
			consultants. SRK had reviewed the work and undertook FLAC3D numerical modelling to
			establish the optimum spacing and stable pillar dimensions for cross-cuts on retreat
			through the panel pillars to improve extraction ratios while maintaining a suitable Factor of
			Safety (“FoS”) for pillars over the range of depths. The 2021 Ore Reserve estimate has
			been based on updated panel pillar designs prepared by IGAN. Whilst IGAN has used the
			SRK recommendations to develop appropriate rib pillar dimensions the rib cross-cut width
			and number has not been explicitly modelled. IGAN has instead estimated these by
			ensuring the cross-cut extraction ratio matched as closely as possible the rib pillar cross-cut
			extraction ratios developed from SRK’s 3D modelling of the Geoalcali panel design. Whilst
			SRK considers this to be a reasonable approach for Ore Reserve estimation purposes,
			detailed 3D simulation of the IGAN mine design will be required to confirm and optimise
			pillar layout and size to ensure stability and to minimise surface subsidence.
Metallurgical	• The metallurgical process proposed and the appropriateness of	•	The proposed beneficiation process consists of a hybrid of the two conventional
factors or assumptions	that process to the style of mineralisation. • Whether the metallurgical process is well-tested technology or novel in nature. • The nature, amount and representativeness of metallurgical test work undertaken, the nature of the metallurgical domaining applied and the corresponding metallurgical recovery factors		beneficiation processes for sylvinite ores, namely froth flotation and dissolution / recrystallisation. Flotation, the lower cost process, will be applied to the coarse fraction of the feed ore after crushing, and dissolution / recrystallisation, the higher cost process but which typically produces a higher quality product, will be applied to fines and intermediate fractions, in order to achieve an optimum level of recovery.
	applied.	•	Sufficient testwork has been conducted to support the development of the flowsheet. The
	• Any assumptions or allowances made for deleterious elements. • The existence of any bulk sample or pilot scale test work and the degree to which such samples are considered representative of the orebody as a whole. • For minerals that are defined by a specification, has the ore		testwork has focused on flotation, as this process is more sensitive to the ore characteristics than is dissolution / recrystallisation, and because flotation makes the largest contribution to the overall recovery. The later stages of testwork have been conducted by a well-regarded and experienced laboratory. The testwork has tested the response of the two lithology types identified, as well as to a blend of these lithology types.
	reserve estimation been based on the appropriate mineralogy to
	meet the specifications?
Environmental	• The status of studies of potential environmental impacts of the	•	Environmental approval and other permits: The environmental licence (“Declaración de
	mining and processing operation. Details of waste rock		Impacto Ambiental” or “DIA”)requires the completion of an environmental impact

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– Appendix A

Criteria	JORC Code explanation	Commentary	Commentary
	characterisation and the consideration of potential sites, status		assessment (“EIA”) process and approval of the final EIA report. A positive DIA was
	of design options considered and, where applicable, the status		received from the central government Ministry of Ecological Transition (“MITECO”),
	of approvals for process residue storage and waste dumps should be reported.		deemed to hold the decision-making authority for the primary approvals for the Project on 31 May 2019.
		•	Environmental management: The groundwater study is reviewed and updated periodically
			as additional data is sourced which will update the underground water management
			approach as required.
		•	Waste Management: SRK understands that the current permitting process requires the
			ground surface to be clear of mine waste 20 months from completion of the Muga mine
			operation. Geoalcali has a number of contingency plans to create additional void space
			underground to manage mine waste in order to meet its permitting obligations as required.
			This would create more de-icing salt which would need to be sold locally.
Infrastructure	• The existence of appropriate infrastructure: availability of land	•	In SRK’s opinion the layout and the scope of site surface infrastructure assets appear
	for plant development, power, water, transportation (particularly		reasonable. The layout appears compact which will reduce footprint, costs for services
	for bulk commodities), labour, accommodation; or the ease with which the infrastructure can be provided, or accessed.	•	connections and should optimise operating costs. Access to the Project is via a new gravel road linking to main national highways located a
			few kilometers from site. Spain has a well-developed national power grid system; power
			supply and distribution.
		•	SRK understands that the Company has a detailed plan for land acquisition where
			necessary and has either acquired from, or is in advanced negotiations with, all land holders.
Costs	• The derivation of, or assumptions made, regarding projected	•	Capital costs have been calculated from a detailed capital cost plan. These costs are
	capital costs in the study.		derived from signed agreements, detailed quotes, or estimations made by the Company and
	• The methodology used to estimate operating costs.		their third-party consultants.
	• Allowances made for the content of deleterious elements.	•	Operating costs have been calculated from a detailed operating cost plan. These costs are
	• The derivation of assumptions made of metal or commodity		derived from signed agreements, detailed quotes, or estimations made by the Company and
	price(s), for the principal minerals and co- products.		their third-party consultants.
	• The source of exchange rates used in the study.	•	The Company assumes 100% GMOP sales with 50% of total production sold locally, 25%
	• Derivation of transportation charges.		sold to the European market and the final 25% sold to export markets based on Brazil
	• The basis for forecasting or source of treatment and refining charges, penalties for failure to meet specification, etc. • The allowances made for royalties payable, both Government and private.	•	netback prices. SRK has undertaken a price sensitivity to support the Ore Reserve estimate. A flat EUR16.4/t for transport to the point of sale has been applied by SRK under operating costs as applied by the Company as a deduction to the sales price. A mine gate sales price of EUR36/t has been applied to the de-icing salt sales tonnages and EUR55/t for vacuum salt asprovided bythe Company.

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Criteria	JORC Code explanation	Commentary	Commentary
		•	SRK understands that there are currently no royalties payable in Spain. The Company is not
			currently liable for any private royalties.
Revenue factors	• The derivation of, or assumptions made regarding revenue	•	Final concentrate can be packaged as Granulated MOP (“GMOP”).
	factors including head grade, metal or commodity price(s)	•	Geoalcali has used market research from Argus Media Group (Argus) to develop its potash
	exchange rates, transportation and treatment charges,		marketing strategy. SRK understands that Argus is a leading commodity price and market
	penalties, net smelter returns, etc.		forecast reporting agency utilised by many potash industry participants. Their reports cover
	• The derivation of assumptions made of metal or commodity		all aspects of potash supply, demand, marketing, potash logistics and pricing.
	price(s), for theprincipal metals, minerals and co-products.
Market	• The demand, supply and stock situation for the particular	•	Detailed analysis on demand, supply and stocks for the potash sector are widely available in
assessment	commodity, consumption trends and factors likely to affect		the public domain. SRK understands that price forecasts have been obtained from Argus.
	supply and demand into the future.
	• A customer and competitor analysis along with the identification
	of likely market windows for the product.
	• Price and volume forecasts and the basis for these forecasts.
	• For industrial minerals the customer specification, testing and
	acceptance requirementsprior to a supply contract.
Economic	• The inputs to the economic analysis to produce the net present	•	SRK has undertaken an economic viability test to assess and confirm the statement of Ore
	value (NPV) in the study, the source and confidence of these		Reserves, as reported in this ITR, comprising 104.3 Mt at 10.2% K2O, equivalent to 16.1%
	economic inputs including estimated inflation, discount rate, etc. • NPV ranges and sensitivity to variations in the significant assumptions and inputs.	•	KCl. SRK notes that the Reserve tonnes are reported as wet tonnes with a low moisture content of 0.8%. SRK has used most of the assumptions as presented in the Company’s financial model as
			a basis for its own technical economic model.
		•	The economic evaluation demonstrates the economic viability of the Ore Reserve under the
			currently assumed valid set of assumptions.
Social	• The status of agreements with key stakeholders and matters	•	As well as the statutory consultation required as part of the EIA process, Geoalcali has
	leading to social licence to operate.		implemented a comprehensive stakeholder engagement programme. This is based on a
			strategy that includes regular meetings with community leaders, community groups and an
			actively managed project website.
		•	One potential challenge for the Project will be the discrepancy in the distribution of taxes that
			arise from the project development. Currently all the surface infrastructure lies in the Navara
			province and this is where the bulk of the taxes will be paid Geoalcali is assessing the
			potential to develop some value-add processes (e.g. vacuum salt production) in the Aragón
			region. This will help with the generation of additional employment in this region but will not
			significantlyalter the revenue imbalance. The distribution of monies bythe foundation is

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Criteria	JORC Code explanation	Commentary	Commentary
			another mechanism that can help with the rebalance. The management of the Foundation
			will require care going forward. Geoalcali might consider mechanisms for community
			representation in the selection of projects in the future.
Other	• To the extent relevant, the impact of the following on the project	•	The environmental licence (“Declaración de Impacto Ambiental” or “DIA”) requires the
	and/or on the estimation and classification of the Ore Reserves:		completion of an environmental impact assessment (“EIA”) process and a positive DIA was
	• Any identified material naturally occurring risks.		received from MITECO for the Project on 31 May 2019 Following receipt of the DIA,
	• The status of material legal agreements and marketing		Geoalcali submitted an application for a mining concession, along with a revised
	arrangements.		environmental monitoring plan and mine closure (restoration) plan in March 2020, and
	• The status of governmental agreements and approvals critical to		received approval for Muga, Goyo and Fronterizo concession areas on 1 July 2021.
	the viability of the project, such as mineral tenement status, and	•	SRK understands that there is a low risk of flammable gas in the underground mine and
	government and statutory approvals. There must be reasonable		explosion protected electrical equipment may need to be specified for certain underground
	grounds to expect that all necessary Government approvals will		areas.
	be received within the timeframes anticipated in the Pre-	•	The mine is classified as a gassy mine (Group 3 category) due to the presence of methane.
	Feasibility or Feasibility study. Highlight and discuss the		This imposes restrictions on the type of equipment that can be used. Explosion protected
	materiality of any unresolved matter that is dependent on a third		equipment is very expensive and could involve specialised design.
	party on which extraction of the reserve is contingent.
Classification	• The basis for the classification of the Ore Reserves into varying	•	SRK’s audited Ore Reserve statement is confined to those seams that are considered in
	confidence categories.		the revised mine plan.
	• Whether the result appropriately reflects the Competent Person’s view of the deposit. • The proportion of Probable Ore Reserves that have been derived from Measured Mineral Resources (if any).	•	Specifically, SRK has classed that material reported as a Measured Mineral Resource within the mining lease application and mine plan as a Proved Ore Reserve; and that material reported as an Indicated Mineral Resource within the mining lease application and mine plan, as a Probable Ore Reserve.
Audits or reviews	• The results of any audits or reviews of Ore Reserve estimates.	•	The technical and economic viability of mining potash at the Project has been confirmed by
			SRK’s report “An Independent Technical Review of the Ore Reserve estimate for the Muga-
			Vipasca Potash Project, Spain” (November 2021) which was undertaken on a desktop basis.
			The SRK CPs have undertaken sufficient visits in recent years for site familiarisation.
		•	Dr Mike Armitage visited site in September 2019 to provide guidance and review of the MRE
			estimation work in progress by Geoalcali.
		•	Anna Fardell (CP for Mineral Resources) visited the Project in July 2017 as part of a
			separate commission to independently review the Mineral Resource estimate, visiting a
			number of drillhole collars and observed the drilling procedures, core storage and sampling
			procedures in the core yard.
Discussion of	• Where appropriate a statement of the relative accuracy and	•	SRK can confirm that the Ore Reserve defined inError! Reference source not found.of t
relative	confidence level in the Ore Reserve estimate using an approach		his report has been derived from the resource blocksprovided to SRK and incorporates

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Criteria	JORC Code explanation	Commentary
accuracy/	or procedure deemed appropriate by the Competent Person.	sufficient estimates for ore losses and dilution based on appropriate studies.
confidence	For example, the application of statistical or geostatistical	• The overall cut-off grade utilised for mining is 8% K2O (noting minor selective areas at 7.6%
	procedures to quantify the relative accuracy of the reserve	K2O) by Geoalcali which is applied to the geological model is used to target the optimal
	within stated confidence limits, or, if such an approach is not	grouping of seams for maximum grade (%K2O) limited by the minimum mining height with
	deemed appropriate, a qualitative discussion of the factors	the appropriate extraction ratio applied.
	which could affect the relative accuracy and confidence of the	• The revised mine plan also incorporates the requirements of the environmental permitting
	estimate.	process, particularly related to exclusion zones, as agreed between Geoalcali and the local
	• The statement should specify whether it relates to global or local	administration, which require a protection pillar to be maintained underneath the local town
	estimates, and, if local, state the relevant tonnages, which	of Undués de Lerda, Javier Castle and the Bardenas Channel to minimise the risk of
	should be relevant to technical and economic evaluation.	subsidence in these zones.
	Documentation should include assumptions made and the	• The large difference between SRK’s audited Mineral Resource statement and its audited
	procedures used.	Ore Reserve statement is partly a function of the relatively low mining recovery inherent in
	• Accuracy and confidence discussions should extend to specific	the Room and Pillar mining method employed. It is also partly a function of the fact that SRK
	discussions of any applied Modifying Factors that may have a	has limited the Ore Reserve statement to that portion of the Mineral Resource on which an
	material impact on Ore Reserve viability, or for which there are	appropriate level of technical work has been completed. In this case this relates to the LOM
	remaining areas of uncertainty at the current study stage.	plan for the Resources only classified as Measured and Indicated.
	• It is recognised that this may not be possible or appropriate in all
	circumstances. These statements of relative accuracy and
	confidence of the estimate should be compared with production
	data, where available.

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