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October 2011. Disclaimer The views expressed here contain information derived from publicly available sources and have not been independently verified.

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Presentation on theme: "October 2011. Disclaimer The views expressed here contain information derived from publicly available sources and have not been independently verified."— Presentation transcript:

1 October 2011

2 Disclaimer The views expressed here contain information derived from publicly available sources and have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. For additional information on these or other factors, please see the Company’s filings on SEDAR. This presentation should not be relied upon as a recommendation or forecast by Western Potash Corp. Nothing in this presentation should be constructed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction. 2

3 Western Potash Corp. Strengths World Class Resource –Updated NI 43 101 Technical Report Positive Economics –Preliminary Economic Assessment (Scoping Study) Ability to Deliver the Project –Management Experience 3

4 Financial Overview 4 June 30, 2011 Financial Information, Close June 30 th, $1.43

5 World Class Resource Updated NI 43 101 Technical Report Measured (Recoverable) 64 Million Tonnes, 30.47% KCL Indicated (Recoverable) 180 Million Tonnes, 30.35% KCL Inferred (Recoverable) 701 Million Tonnes, 30.31% KCL 5

6 Milestone Project 6 Feasibility Completion

7 Milestone Timeline 7 Present

8 Elk Point Basin 8 WPX Milestone Project WPX Manitoba Project

9 Milestone Saskatchewan 9

10 Solution Mining Benefits Proven Process, Mosaic Belle Plaine Mine (45 yrs.) Reduced CAPEX Shorter payback period, higher IRR Faster timeline to production Scalability Lower technical risk Reduced environmental footprint Reduced health and safety risk 10

11 Positive Economics Positive and Robust Preliminary Economic Assessment Delivered –(Scoping Study) 11

12 Scoping Study Highlights 12 AMEC’s EPCM experience with five Potash Corp mines adds credibility to the CAPEX estimates for this project. (NPV 10 ) 5.22 Bn 1 CAD: IRR 27.3%* 1. CRU Projected prices ($511) Production rate of 2.5 Mt per year 40 year mine life Total CAPEX $2.51 billion CAD 8.5% Reduction of production costs due to the high formation temperatures

13 Geothermal Gradients 13

14 Western Potash Corp. vs. African Explorers Risk Assessment Western PotashAfrica Infrastructure Maintenance Roads Railway Deep Water Ports Fresh Water Electrical Energy Climate LOWHIGH Geological Mining Plan Engineering Geologic Zone Carnallite Technology LOWHIGH Environmental Procedures LOW Political Political Stability Government Accessibility LOWHIGH Financial Project Financing HIGH 14

15 Global GDP 15 Source: 1900 - 1980 - J. Bradford De Long ("Estimates of World GDP", 1998); 1980 to 2010 - IMF World Economic Outlook Database; 2010 to 2025 Forecast - Global Insight

16 GDP Growth 16 Source: Global Insight; BHP Billiton analysis. 1. All figures for 2009 unless mentioned otherwise

17 More Competitive Low Pricing Power Less Competitive High Pricing Power Share of the total production which is attributed to the top 5 companies in the industry. Consolidation rates 17 Source: CRU Strategies

18 Saskatchewan, Canada Competitive Largest Potash Producer in the world, +30% Hosts 50% of the World`s Reserves Value of SK. Potash sales in 2009 were $3.1 billion Investment Climate Potash Production has been continuous since 1962 Potash Industry will invest $12 billion in development from 2005-2020 SK. Greenfield development encouraged 18

19 Potash Site Costs Assuming Full Capacity Utilization* 19

20 Gas Pricing Forecast ( AECO-O) 20

21 Milestone Facility 21

22 Ability to Deliver the Project Management Experience Engineering Process 3 Months ahead of schedule Financed through the completion of Robust Feasibility Commercial Team Formed Strategic Partner Identification Partner Acquisition strategy 22

23 Management 23

24 Consultants and Technical Advisors 24 Western Potash Seismic Operations and Interpretation RPS BoydPetro- Search Resource, Mine Plan and Cavern Design Agapito Scoping Study, PFS AMEC Americas Ltd Environmental Golder Associates Land Administration Brady Land Geomechanical Testing and Subsidence RESPEC Taxation, Royalties & Economics Revenant Consulting Potash Geological Advisor Ron Brown Geotechnical Engineering Kuchling Consulting Evaporation- Crystallization Technology Whiting Wellfield Engineering Sabine Storage Dissolution Testing NG Consulting Novopro Technical Advisor Drilling Consultants Impact Market Analysis CRU Strategies Board of Directors

25 Conclusion World Class Resource –Updated NI 43 101 Technical Report –High Grades (+30% KCL) –Low Risk Development Environment Positive Economics –PEA (Scoping Study) –40+ year mine life at 2.5 TPY –IRR: 27.3%, CAPEX: $2.51 billion –Reduction in Production Costs of 8.5% Ability to Deliver the Project –Management Experience –Amec Americas, Feasibility process (ahead of schedule) 25 Source: AMEC Americas Ltd.

26 Suite 1818 - 701 West Georgia St. Vancouver, British Columbia V7Y 1C6, Canada 604.689.WEST (9378) info@westernpotash.com www.westernpotash.com info@westernpotash.com 26


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