TURNSTONE RESOURCES LTD — Capital/Financing Update 2024

Feb 4, 2024

ASX ANNOUNCEMENT 5 February 2024

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PROGRESS UPDATE ON OHMGEBIRGE PFS AND DISCUSSIONS WITH DEUSA

• Detailed technical and commercial discussions advancing with Ohmgebirge neighbour and owner of Bernterode shafts, NDH-E/DEUSA.

• Key PFS workstreams continue to progress on schedule; now achieved 90% overall completion level.

• Final PFS delivery on track for completion in early Q2 CY2024, inclusive of brownfield Bernterode shaft and infrastructure utilization as base case development pathway.

• Spatial Planning Application proceeding through regulatory evaluation process; targeted receipt of spatial planning approval on track for Q2 CY2024.

South Harz Potash Limited (ASX:SHP) ( South Harz or the Company ) is pleased to provide an update on progress of the Pre-Feasibility Study ( PFS ) and associated activities for its flagship Ohmgebirge Potash Development ( Ohmgebirge ) located in central Germany.

Long-term shaft access and infrastructure utilisation

Detailed technical and commercial discussions with NDH-E/DEUSA International GmbH ( Deusa ), the owner of the neighbouring property to Ohmgebirge, continue to advance following execution of the non-binding Memorandum of Understanding ( MoU ) between the parties during November 2023 (refer South Harz ASX release dated 2 November 2023, MOU executed for existing shaft and infrastructure utilization ).

The MoU contemplates ongoing collaboration between the parties to advance towards a definitive commercial agreement allowing South Harz long-term access and utilization rights for Deusa’s Bernterode shaft and associated infrastructure. It also grants South Harz binding exclusivity until 31 March 2024 to reach definitive commercial agreement.

Following signing of the MoU, South Harz and Deusa have been working constructively in seeking the optimal engineering, environmental and economic outcome for Ohmgebirge. Successful delivery of a definitive agreement for long-term access and utilization will enable implementation of the targeted brownfield development pathway for Ohmgebirge offering substantial time, capital cost and footprint advantages versus greenfield shaft construction.

The current preliminary layout contemplates the raw ore storage in the area adjacent to the shafts along with the purification. The solution will then be transported via a pipeline the short 1.5km distance to the site by the Bernterode railway siding. The evaporators, crystallisers and product storage will be adjacent to the railway and loadout facility.

As illustrated by the following images, as well access to the orebody via existing shafts, the project boasts all surface infrastructure requirements including road, rail, power, gas and other necessary utilities.

CONTACT DETAILS W: southharzpotash.com E: info@southharzpotash.com P: +61 (0) 408 447 493

780.1 M Ordinary Shares 113.4 M Unlisted Options

ABN: 64 153 414 852 ASX Code: SHP Frankfurt Code: A2DWXX

U13, 6 – 10 Douro Place West Perth WA 6005

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Figure 1: Photo of Bernterode shaft #2 in foreground with shaft #1 in the background.

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Shaft #1
Shaft #2
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Figure 2: Aerial view of Bernterode shafts and infrastructure. Current proposed site for crushing and leaching.

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Shaft #1
Shaft #2
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Photographs copyright: Paul-Philipp Braun
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Figure 3: Location for expansion of railway siding and loadout at Bernterode station.

Ohmgebirge PFS approaching final phase

The Ohmgebirge PFS is now approximately 90% complete overall and remains on track for completion in early Q2 CY2024. All key PFS workstreams continue to progress well, with the overarching focus now moving to more advanced levels of engineering thoroughness, estimate accuracy, and robust contingency planning.

Capital and operating cost estimations are in the process of being conclusively assembled by leading global engineering consultant and study manager, Hatch plc. This is a function of staged finalization of expected utility requirements (water, power, gas) as well as receipt of final estimations for major equipment sizing, installation costs, project delivery schedules and ‘hard dollar’ supplier quotations.

Progressive cost estimate finalization is inclusive of fulsome purchase versus lease trade-off analysis on key items across relevant construction phases. Quality risk analysis is also a major focus as various workstreams approach close-out.

Spatial Planning approval process progressing

Having been submitted in early December 2023 (refer South Harz ASX release dated 8 December 2023, Spatial Planning Application submitted ), South Harz’s Spatial Planning Application for Ohmgebirge is now proceeding through the regulatory evaluation process. As announced last month, this includes public review of the documentation and undertaking of scheduled consultation meetings and other endeavours (refer South Harz ASX release dated 11 January 2024, Spatial Planning Application achieves important milestone ).

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This permitting process remains on track for targeted receipt of a spatial planning decision during Q2 CY2024. The overall permitting approach and regulatory schedule for Ohmgebirge is being led by highly experienced South Harz Regional Director, Dr Babette Winter.

South Harz COO, Lawrence Berthelet, commented, "We continue to make strong progress on both our collaborative activities with Deusa and approaching completion on remaining PFS workstreams. It is an extremely busy but exciting time at South Harz as we advance closer towards targeted finalization of a brownfield development pathway for Ohmgebirge that can deliver substantial capital, footprint and time efficiencies.”

This ASX release has been approved by Managing Director, Luis da Silva.

Investor and media enquiries

Luis da Silva Michael Vaughan Managing Director and CEO Fivemark Partners South Harz Potash Ltd +61 422 602 720 info@southharzpotash.com michael.vaughan@fivemark.com.au

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About South Harz

South Harz Potash (ASX: SHP) ( South Harz ) is a potash exploration and development company with its flagship project located in the South Harz Potash District region of Germany, midway between Frankfurt and Berlin.

The South Harz Project hosts a globally large-scale potash JORC (2012) Mineral Resource estimate of 5 billion tonnes at 10.6% K2O of Inferred resources and 258 million tonnes at 13.5% K2O of Indicated Resources across four wholly-owned project areas located favourably within central Europe.[1] This comprises three perpetual potash mining licences, Ohmgebirge, Ebeleben and Mühlhausen-Nohra, and two potash exploration licences, Küllstedt and Gräfentonna, covering a total area of approximately 659km.

With strong established infrastructure proximate to the key European market, the South Harz Project is well positioned to enable rapid economic development across multiple deposits.

South Harz Potash: Growing a responsible potash business in the heart of Germany.

www.southharzpotash.com

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1. Refer to South Harz ASX release dated 12 July 2022 for full Mineral Resource estimate details. In accordance with ASX Listing Rule 5.23, the Company is not aware of any new information or data that materially affects the information included in this release, and the Company confirms that, to the best of its knowledge, all material assumptions and technical parameters underpinning the estimates in these releases continue to apply and have not materially changed.