JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28 99096 Erfurt Germany Phone: +49 361 3810 500 Fax: +49 361 3810 505 E-Mail: mining@ercosplan.com Web: www.ercosplan.com Managing Director: Dr Henry Rauche This JORC REPORT contains 54 09 Client: East Exploration Pty Ltd Level 2, 350 Little Collins Street Melbourne, Victoria 3000 Australia Consultant: ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28 99096 Erfurt Germany Project Reference: EGB 12-043.N01 Effective Date: 31 January 2015 Erfurt, 31th March 2015 Dr Henry Rauche Managing Director & C.E.O. Pages Appendices Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Version: 00 External Revision: 00 This Report was prepared under the responsibility of Jockel, Andreas A quality and consistency check was made by Rauche, Dr Henry Page 2 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 Compliance Statement The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Andreas Jockel, a Competent Person who is a Member of a ‘Recognised Professional Organisation’ (RPO), the European Federation of Geologists, and a registered “European Geologist” (Registration Number 1018) and Dr Henry Rauche, a Competent Person who is a Member of a ‘Recognised Professional Organisation’ (RPO), the European Federation of Geologists, and a registered “European Geologist” (Registration Number 729). Andreas Jockel and Dr Henry Rauche are full-term employees of ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH (ERCOSPLAN). ERCOSPLAN, Andreas Jockel and Dr Henry Rauche are not associates or affiliates of East Exploration Pty Ltd, or of any associated company. ERCOSPLAN will receive a fee for the preparation of this Report in accordance with normal professional consulting practices. This fee is not contingent on the conclusions of this Report and ERCOSPLAN, Andreas Jockel and Dr Henry Rauche will receive no other benefit for the preparation of this Report. ERCOSPLAN, Andreas Jockel and Dr Henry Rauche do not have any pecuniary or other interests that could reasonably be regarded as capable of affecting their ability to provide an unbiased opinion in relation to the Küllstedt Exploration Licence Area. ERCOSPLAN does not have, at the date of this Report, and has not had within the previous years, any shareholding in or other relationship with East Exploration Pty Ltd or the Küllstedt Exploration Licence Area and consequently considers itself to be independent of East Exploration Pty Ltd. Andeas Jockel and Dr Henry Rauche have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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’. Andreas Jockel and Dr Henry Rauche consent to the inclusion in the report of the matters based on their information in the form and context in which it appears. Page 3 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 EXECUTIVE SUMMARY East Exploration Pty Ltd. (Melbourne, Australia) is in the process of developing of a potash project, which is located in the northern part of the Federal State of Thuringia, Germany. For this reason, East Exploration GmbH (EAST EXPLORATION), a wholly owned subsidiary of East Exploration Pty Ltd, was founded and registered in Munich, Germany, in 2014. In a first step, East Exploration Pty Ltd has commissioned ERCOSPLAN to compile a report in accordance with the JORC Code (2012, /10/) (effective date: 31 January 2015), including an Exploration Target estimate for its Küllstedt Exploration Licence Area based on the available exploration data. ERCOSPLAN has its headquarters in Erfurt (Thuringia, Germany) and has been involved in the mining activities in the South Harz Potash District for more than 60 years. During this period, numerous exploration and underground mining projects were realised under the supervision of ERCOSPLAN. Therefore, ERCOSPLAN has a large archive with exploration data and an extensive knowledge about the geological conditions within the South Harz Potash District. Introduction EAST EXPLORATION holds the exploration licences for two large areas in the southwestern edge of the South Harz Potash District. The Küllstedt Exploration Licence Area extends over 24,164.55 ha, while the Gräfentonna Exploration Licence Area is 21,647.61 ha in size. Küllstedt Exploration Licence Area is located in the northwestern part of the Federal State of Thuringia, bordering the city of Mühlhausen to the south. The country town of Dingelstädt is the largest settlement within the Exploration Licence Area. The municipality of Küllstedt is located a few kilometres south-southwest of it. Property Description, and Location For the Küllstedt area, a historical resource estimate was made in 1964, which resulted in 268.7 Mt K2O of Delta-1 and 43.6 Mt K2O of Delta-2 resources according to the 3. Kali-Instruktion for the East German Potash Industry. A further historical resource estimate in the region in 1980 resulted in 47.1 Mt total K2O of C2 resources according to the 4. Kali-Instruktion. For all resource classes, resources were listed as carnallitite and sylvinite. However, the areas, for which the estimates were made, only partly overlap with the Küllstedt Licence Exploration Area. Historical Resource/ Reserve Estimates Apart from the previous exploration and mining activities until the 1930s, exploration was resumed again in the 1960s and 1970s to evaluate the potential of potash production in the Küllstedt area. Even the construction of a new potash plant was planned, but it was not realised due to the termination of potash production in the South Harz Potash District after the German reunification in 1990. In total, 34 drill holes have been drilled for potash in the Küllstedt Exploration Licence Area, while another eight holes are located close to the area. For all drill holes, short logs are available, partially with K2O contents. The detailed exploration reports with description of the working steps and the results were not available to the authors of this JORC Report. However, Exploration History and Status of Exploration Page 4 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 this information will be obtained in the coming weeks and subsequently evaluated. Based on ERCOSPLAN’s experience with the methods and control mechanisms of the potash exploration in the South Harz Potash District, it believes that the summarised drill logs and information on average grades available thus far have a high degree of reliability. Nevertheless, an independent check based on the original documents is not possible at present. The Küllstedt Exploration Licence Area, which is adjacent to the mining property of Mühlhausen-Nohra, which is divided into the resource field Keula to the north and resource field Küllstedt to the southeast and the mining property of Volkenroda to the east, belongs to the South Harz Potash District, which has a history of more than one hundred years of potash exploration and mining ranging from the first deep hole exploration in 1888 to the closure of the last mines in 1993. Within the Küllstedt Exploration Licence Area, potash was mined between 1912 and 1924 from the Kaliflöz Stassfurt (z2KSt) at depths between 835 m and 860 m below the surface. The mines operational at that time were the Felsenfest and Beberstedt-Hüpstedt mines. These mines were located in the northernwestern part of the Küllstedt Exploration Licence Area. Adjacent Properties and Mining Activities Based on the geological model generated a value range for the Exploration Target was estimated: between 4,055 million and 5,141 million metric tonnes of mineralised rock with a K2O content of between 7.2% and 25%. This amounts to a K2O tonnage of between 292 million and 1,285 million metric tonnes. Exploration Target Estimates The following recommendations are made for further project development: (1) Application for permission to view and use detailed historical exploration reports as well as carry out tests on the still existing sample material from these exploration drill holes. Based on the data that becomes available, the JORC Report should be updated. (2) The data from the historical drill holes should be checked via confirmation drilling in the Küllstedt Exploration Licence Area, which allows an extraction of cores from the potash section for detailed description and chemical assaying. Additionally, the confirmation holes can be logged geophysically to cross-check the historical data and correlate the results with those of the chemical analyses. Recommendations Page 5 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 LIST OF CONTENTS 1 Introduction 10 1.1 1.2 Scope of Work Terms of Reference 10 10 2 Reliance on Other Experts 11 3 Property Descriptions, Location and Legal Status 11 3.1 3.2 Property Location Property Title 11 13 4 Accessibility, Climate, Local Resources, Infrastructure and Physiography 13 4.1 4.2 4.3 4.4 Accessibility Climate, Vegetation and Fauna Physiography Local Resources and Infrastructure 14 15 16 16 5 History 17 5.1 5.3 The History of Potash Exploration & Production in the South Harz Potash District The History of Exploration in the Küllstedt Exploration Licence Area Description of Potash Exploration 5.2.1.1 Available Drill Holes 5.2.1.2 Drilling Technology 5.2.1.3 Drill Hole Logging,Sampling and Chemical Assaying 5.2.1.4 Sampling and Assay Procedure 5.2.1.5 Reporting of Results and Data Storage 5.2.1.6 Surface Seismics Description of Oil & Gas Exploration 5.2.2.1 Available Drill Holes 5.2.2.2 Drilling Technology 5.2.2.3 Drill Hole Logging 5.2.2.4 Sampling and Assay Procedure 5.2.2.5 Quality Control Procedure 5.2.2.6 Reporting of Results and Data Storage Historical Resource Estimates 17 19 19 20 23 23 23 24 25 25 25 26 26 26 27 27 27 6 Geological Setting and Mineralisation 30 6.1 6.2 6.3 Regional Geology Local Geology of the Evaporites Geological Development of the Potash Deposit in the South Harz Potash District Origin of the Potash Mineralisation Tectonics of the Potash Deposit Subrosion 6.3.3.1 Subrosion in the Zechstein 30 33 5.2 5.2.1 5.2.2 6.3.1 6.3.2 6.3.3 34 34 36 37 37 Page 6 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 6.4 6.4.1 6.4.2 6.5 6.5.1 6.3.3.2 Subrosion in the Triassic Overburden Hydrogeology Surface Waters Groundwater Mineralisation Potash Distribution, Thickness and Grade 38 38 38 39 41 42 7 Deposit Type 42 8 Recent Exploration 43 9 Data Verification 43 9.1 Historical Data 43 10 Mineral Processing and Metallurgical Testing 43 11 Mining Concept 44 12 Processing Concept 44 13 Exploration Target Estimates 44 14 Adjacent Properties 45 15 Interpretation and Conclusions 45 16 Recommendations 46 Page 7 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 LIST OF FIGURES Figure 1 Figure 2 Figure 3 Figure 4 Position of the Küllstedt Exploration Licence Area (Dark Grey Area) in Relation to the Existing Potash Properties in the South Harz Potash District (Light Grey Areas) Map of the Küllstedt Exploration Licence Area Showing Access to the Main Roads and the Railway System Stratigraphic Succession in the Küllstedt Exploration Licence Area Overview of the Lithostratigraphy Within the Investigation Area and Classification into Aquifers and Aquitards 12 14 32 40 LIST OF TABLES Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Average Monthly Temperatures and Precipitations for the Weather Station Mühlhausen – Görmar (190 m Above Sea Level), Based on Data Taken Between 12/2004 and 12/2014 (Wetterdienst.de, 2014, /3/) Overview of Potash Drill Holes and Shafts Located Within the Küllstedt Area (Easting and Northing in Gauss-Krueger Coordinates) Standard Procedures Applied for Sample Analysis by the Laboratory of the Research Department of VEB Kombinat Kali According to VEB (1980, /19/) and as Defined by the State Authority Overview of Oil and Gas Drill Holes located within the Küllstedt Area (Easting, Northing in Gauss-Krueger Coordinates; VEB, 1966, /18/ & Drill Hole Logs). As Logs of the Last Two Holes Were Not Available, No Coordinates or Depths Can Be Given Prognostic Resource Estimate for Sylvinite, Carnallitite and Potash-Bearing Salts (VVB Feste Minerale, 1964, /22/) Resource Estimate with Resource Category and Tonnages (VEB, 1980, /19/) 15 21 24 26 28 29 Page 8 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 LIST OF APPENDICES APPENDIX 1 Topographic Map Showing the Location and Available Infrastructure of the Küllstedt Exploration Licence Area APPENDIX 2 Copy of Official Licence Document for the Küllstedt Exploration Licence Area APPENDIX 3 Map of Available Drill Holes from Different Exploration Campaigns and Shaft Sinking APPENDIX 4 Geological Drill Hole Logs APPENDIX 5 Isobath of the Top of the Potash-Bearing Horizon in the Küllstedt Exploration Licence Area and Main Potash Facies Distribution (According to Seidel, 2003) APPENDIX 6 Isopach Map for the Potash-Bearing Horizon in the Küllstedt Exploration Licence Area APPENDIX 7 K2O-Isograde Map for the Potash-Bearing Horizon in the Küllstedt Exploration Licence Area APPENDIX 8 Geological Cross-Sections for the Küllstedt Exploration Licence Area 8.1 SSW-NNE Direction 8.2 WNW-ESE Direction APPENDIX 9 Map of Properties Adjacent to the Küllstedt Exploration Licence Area Page 9 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 1 Introduction East Exploration Pty Ltd (Melbourne, Australia) is in the process of developing of a potash project, which is located in the northern part of the Federal State of Thuringia, Germany. For this reason, East Exploration GmbH (EAST EXPLORATION), a wholly owned subsidiary of East Exploration Pty Ltd, was founded and registered in Munich, Germany, in 2014. EAST EXPLORATION holds the exploration licences for two large areas in the southwestern edge of the South Harz Potash District. The Küllstedt Exploration Licence Area extends over 24,164.55 ha, while the Gräfentonna Exploration Licence Area is 21,647.61 ha in size. In a first step, EAST EXPLORATION has commissioned ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH (ERCOSPLAN) to compile a Report in accordance with the JORC Code (2012, /10/) (effective date: 31 January 2015), including an Exploration Target estimate for its Küllstedt Exploration Licence Area based on the available exploration data. ERCOSPLAN has its headquarters in Erfurt (Thuringia, Germany) and has been involved in the mining activities in the South Harz Potash District since more than 60 years. During this period, numerous exploration and underground mining projects were realised under the supervision of ERCOSPLAN. Therefore, ERCOSPLAN has a large archive with exploration data and an extensive knowledge about the geological conditions within the South Harz Potash District. For the preparation of this Report, EurGeol Andreas Jockel and EurGeol Dr Henry A M Rauche served as Competent Persons as defined by the JORC Code (2012, /10/). Both Competent Persons have undertaken several site visits of the Küllstedt Exploration Licence Area. The last site visit was conducted in December 2014. Prior to preparation of this Report, historical documents, listed in Section 1.2, were evaluated and a geological model was generated on the basis of these data and maps showing the distribution of the potash mineralisation, the thickness of the potash section and its K2O content were prepared subsequently. Recommendations and conclusions presented in this Report are based on the abovementioned historical data and the experience of the authors of this Report. 1.1 Scope of Work The scope of work comprised the evaluation of historical data as presented in Section 1.2, the subsequent generation of a geological model and an estimate of an Exploration Target based on these data in compliance with the JORC Code (2012, /10/). 1.2 Terms of Reference For the preparation of this Report, the following historical data were used: § Drill logs of the holes in the Küllstedt Exploration Licence Area and areas adjacent to it, including the average grade of the potash-bearing horizon § Reports on historical resource estimates together with potash instruction guidelines of the former East Germany Page 10 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 § Historical reports on geological, structural and hydrogeological investigations in the Thüringer Becken § Historical maps showing the thickness distribution of the potash section, and the distribution of the salt facies in the South Harz Potash District These data were available in ERCOSPLAN’s archive. Furthermore, site visit reports, application forms and official licence documents were used. 2 Reliance on Other Experts For the preparation of this Report, the authors have relied on historical reports, opinions, data and statements not prepared under their supervision. These items will be hereinafter identified as being either “third-party reports” or “historical information”. Specific citations are listed under REFERENCES. Analytical procedures, personnel and facilities used by the previous evaluators were independent. It is known that the authors of those reports were not “Competent Persons” as defined by the JORC Code (2012, /10/). However, it is known to the authors of this Report, partly by personal acquaintance, that the authors of those reports have sufficient experience in the exploration of and resource estimation for potash deposits as required by the JORC Code (2012, /10/). They are, therefore, considered trustworthy and their work reliable. As no samples and no core material from the historical exploration campaigns is preserved, the results of the calculations (average grade) and drill hole logging could not be evaluated by the authors of this Report. However, due to the abovementioned statements and the sample cross-checking by external laboratories, the results of the mentioned investigations are considered reliable. 3 Property Descriptions, Location and Legal Status This chapter gives an overview about the location of the Küllstedt Exploration Licence Area (Section 3.1) and the land tenures held by EAST EXPLORATION (Section 3.2). 3.1 Property Location The Küllstedt Exploration Licence Area is located at the northeastern edge of the Federal State of Thuringia, Germany. In this region, parallel to the southern border of the Harz and Kyffhäuser mountains, potash salt from the Kalisalzflöz Stassfurt (Zechstein 2, Upper Permian, z2KSt) was successfully used for the production of potash-magnesium fertilisers as well as further products between 1896 and 1991. Page 11 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 BWE Bischofferode (LMBV) # BISCHOFFERODE II # BISCHOFFERODE I # NEUBLEICHERODE BWE Bleicherode Mine Kehmstedt-NW (DEUSA) BWE Kehmstedt (DEUSA) BWE Bleicherode (NDH-E) Solution Mine Kehmstedt # KLEINBODUNGEN I # KLEINBODUNGEN II Bischofferode Mine BWE Ohmgebirge (BVVG) # BLEICHERODE II # BLEICHERODE I # KRAJA II # KRAJA I BWE Sollstedt (NDH-E) # SOLLSTEDT # SACHSEN # GEBRA # LOHRA BWE Mühlhausen-Nohra (BVVG) # NEUSOLLSTEDT # HAIN I # HAIN II BWE Sondershausen (GSES) # IMMENRODE Sollstedt Mine Glückauf Sondershausen Mine # LUDWIGSHALL # GLÜCKAUF VI # GLÜCKAUF V # GLÜCKAUF I Hüpstedt-Beberstedt Mine # GLÜCKAUF II # GLÜCKAUF IV # FELSENFEST # BEBERSTEDT # GÜNTHERSHALL Volkenroda Mine # HÜPSTEDT Exploration Licence Area Küllstedt (East Exploration) # GLÜCKAUF III Bewilligungsfeld "Am Filsberg" (GSES) # VOLKENRODA # PÖTHEN I # PÖTHEN II # SCHWARZBURG BWE Volkenroda (LMBV) BWE Mühlhausen-Nohra (BVVG) BWE Ebeleben (BVVG) Legend: Exploration Licence Area Gräfentonna (East Exploration) Exploration Licence Areas (Name and Owner) Border of Existing Mining Licence Areas (Name and Owner) Mined Areas (Name of the Mine and Owner) Location of Shafts Name of Shafts # 0 10 Figure 1 20 km Position of the Küllstedt Exploration Licence Area (Dark Grey Area) in Relation to the Existing Potash Properties in the South Harz Potash District (Light Grey Areas) According to the geographical position, the deposit is called South Harz Potash District. Up to 3.5 million tonnes of K2O1 were produced annually in the South Harz Potash District. The extraction of the potash ore was mainly carried out by conventional mining. The most important sites of mining and processing were (Figure 1): § “Glückauf” Sondershausen Mine and Potash Plant § Bischofferode Mine and Potash Plant 1 The grade of potassium products is usually expressed in K2O (potassium oxide; the conversion factor for KCl to K2O is 0.6317). Page 12 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 § Sollstedt Mine and Potash Plant § Bleicherode Mine and Potash Plant § Volkenroda Mine Potash Plant Besides these sites that utilised conventional underground mining, another site, the Kehmstedt Brine Field (today DEUSA International GmbH), was established in the 1980s as a solution mining operation. The total size of the Küllstedt Exploration Licence Area is 24,164.55 ha (241.65 km²). The coordinates of the current border of the assessed area are listed in APPENDIX 1. 3.2 Property Title In the Küllstedt area, previous ownerships are known for the union of the Hüpstedt-Beberstedt and Felsenfest Potash Mines. Under the owner Winterhall AG, the twin mine shaft HüpstedtBeberstedt and the mine shaft Felsenfest were sunk and developed between 1909 and 1913 and a potassium chloride facility became operational in 1920. However, in 1924, mining activities came to an end (Raue, 1970, /11/). Since 1990, the Thüringer Landesbergamt is responsible for the closed mines and their ongoing supervision. East Exploration Pty Ltd, which is based in Melbourne, Australia, filed a written application for the granting of the commercial exploration of potash salts and rock salt in the “Küllstedt” claim in compliance with Section 7, Paragraph 1 of the Bundesberggesetz (BBergG) on 04 July 2014. East Exploration Pty Ltd applied to transfer its application to East Exploration GmbH in November 2014. The exploration licence was granted in compliance with Sections 6 & 7 BBergG to East Exploration GmbH by the Thüringer Landesbergamt on 12 January 2015. The licence (Küllstedt Exploration Licence Area) is valid until 12 January 2020. The exploration licence is restricted to the exploration of mineral resources in compliance with Section 3, Paragraph 3 BBergG, which are rock salt, potash salts, magnesia and boron salts together with accompanying salts within the deposit. Results of the exploration activities have to be reported to the Thüringer Landesbergamt annually and submitted to the authority at the latest by the expiry of the exploration licence. 4 Accessibility, Climate, Local Resources, Infrastructure and Physiography The accessibility, focusing on the principal town of the Küllstedt Exploration Licence Area, Dingelstädt, (Section 4.1), the climate (Section 4.2), the physiography (Section 4.3) and the local resources as well as the infrastructure (Section 4.4) of the Küllstedt Exploration Licence Area will be described in this chapter. Page 13 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 4.1 Accessibility The principal town of the Küllstedt Exploration Licence Area is the country town of Dingelstädt and it is easily accessible § Via the federal highway BAB 4/E 40 (Dresden – Frankfurt/Main) • From the south, further via the interstate roads B 84 – B 247 • From the southwest, further via the interstate roads B 27 – B 249 – B 247 respectively. § Via federal highway BAB 38 (Göttingen – Leipzig) from north, then further via the interstate road B 247. § From the southeast, coming from the state capital of Erfurt, via the interstate roads B 4 – B 176 – B 247. Different parts of the project area can be accessed via country roads from the roads mentioned above. Beyond these roads, four-wheel drive vehicles should be used. The rail network of the Deutsche Bahn AG between Göttingen (via Leinefelde), Erfurt and Gotha offers another access possibility. The connections of the Küllstedt Exploration Licence Area to the main roads and the railway network are shown in Figure 2. Figure 2 Map of the Küllstedt Exploration Licence Area Showing Access to the Main Roads and the Railway System Page 14 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 4.2 Climate, Vegetation and Fauna The Küllstedt Exploration Licence Area is located in the temperate climate zone of Central Europe with prevailing west winds. Mainly due to the shielding effect of highlands to the west (Hessisches Bergland), the climate in the area is more continental than in the western and northern parts of Germany. Accordingly, the area is located in one of the driest regions in the country with comparably low total annual precipitation, accompanied by long dry periods, cold winters and sunny climate without much wind (Table 1). Table 1 Average Monthly Temperatures and Precipitations for the Weather Station Mühlhausen – Görmar (190 m Above Sea Level), Based on Data Taken Between 12/2004 and 12/2014 (Wetterdienst.de, 2014, /3/) Avg. Temperature [°C] Avg. Max. Temperature [°C] Avg. Min. Temperature [°C] Precipitation [mm] Rainy Days [d] January 0.6 3.1 -2.6 35 17 February 0.6 3.9 -3.0 25 14 March 4.3 9.1 -0.6 30 14 April 9.5 15.3 3.0 26 12 May 13.1 18.8 6.6 67 16 June 16.3 22.1 9.7 52 13 July 18.8 25.0 12.3 65 15 August 17.3 23.1 11.4 60 16 September 14.1 19.8 8.4 46 11 October 9.3 14.2 4.6 37 13 November 5.1 8.0 1.8 41 15 December 1.8 4.2 -1.1 42 19 The average annual temperature is 9.2°C, with July being the warmest month with an average temperature of 18.8°C and a highest measured temperature value of 35.6°C. January and February are the coldest months with an average temperature of 0.6°C and a lowest measured temperature value in February of -21.8°C (Wetterdienst.de, 2014, /3/). The total annual precipitation is 526 mm, with the highest precipitation occurring from May (67 mm) to September (46 mm) (Wetterdienst.de, 2014, /3/). Most of the area is agriculturally used. Only at higher elevations do broad-leaved or mixed forests exist. Page 15 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 4.3 Physiography The Küllstedt Exploration Licence Area is located at the west-northwestern margin of the Thüringer Becken at the upper reaches of the Unstrut River, which has its source at Kefferhausen, several kilometres west of Dingelstädt, and flows through the area in southeastern direction. This main watercourse is supplied by multiple tributary streams mainly coming from the west. At the northern border of the Küllstedt area, close to country town of Deuna, the freshwater reservoir Ahlenbach is located, which is supplied by the Ohne River. To the south, the rivers Lutter, flowing in a southwestern direction at the municipalities of Wachstedt and Küllstedt, and Luhne, flowing in a southeastern direction and joining at Mühlhausen with the Unstrut, are larger surface waters. Topographically, the Küllstedt area is dominated by a hilly landscape with the mountain ranges of the Dün (to the northeast) and Oberes Eichsfeld, the latter with elevations of more than 500 m above sea level (e.g. Warteberg, which is 516 m above sea level and north of the town of Flinsberg). To the southeast, the topographic elevation decreases to about 300 m above sea level. The highest elevations in the area are the Winterberg (511 m above sea level), the Kreuzebraer Höhe (484 m above sea level) east of the country town of Kreuzebra, the Madeberg (498 m above sea level), the Hohe Berg (473 m above sea level) close to Küllstedt, the Kirchberg (447 m above sea level), the Wingert (407 m above sea level), the Dünkopf (436 m above sea level) north of Dingelstädt, as well as the Haßberg (428 m above sea level) and the Eisberg (394 m above sea level) south of Dingelstädt. In the Dün area, the Wallingsberg (490 m above sea level), the Sonder (456 m above sea level), the Hellborn (493 m above sea level), the Kalte Berg (476 m above sea level) and the Balzenberg (437 m above sea level) are distinct elevations. The area directly at the bank of the Unstrut River has elevations between 260 m above sea level (west of the country town of Dachrieden) and 400 m above sea level (source region of the Unstrut River at Kefferhausen). The country town Dingelstädt is located about 335 m above sea level. 4.4 Local Resources and Infrastructure Dingelstädt, the administrative headquarters of the municipalities of Helmsdorf, Kallmerode, Kefferhausen, Kreuzebra and Silberhausen, is located about 15 km northwest of Mühlhausen and covers an area of approx. 20 km² (65 km² for all municipalities) and is home to over 4,300 inhabitants (as of December 2013) (7,500 in all municipalities). On the next higher administrative level, the region belongs to the Thuringian district of Eichsfeld, with its headquarters in Heilbad Heiligenstadt with 16,200 inhabitants, located about 15 km northwest of Dingelstädt. Mühlhausen with an area of 86 km² and 33,000 inhabitants is the district town of the UnstrutHainich administrative district bordering to the southeast. Larger cities in the vicinity are Erfurt (approx. 55 km to the southeast), Göttingen (approx. 60 km to the northwest) and Kassel (approx. 85 km to the west). As many of the people living in the region were employed over several years in the mines of the South Harz Potash District, 20 km to 25 km north of Küllstedt, vast experience with potash is still available here. Page 16 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 The electricity and water supply are possible via a well-developed network in the region. As mentioned under Section 4.1, several roads and railways exist for access to the Küllstedt Exploration Licence Area. The closest civil airport is located in Erfurt and the small airfield, Göttingen-Heilbad Heiligenstadt, is located about 3 km north of Heilbad Heiligenstadt, close to the federal highway BAB 38. 5 History In the following sections the historical mining activities in the South Harz Potash District (Section 5.1) and the exploration activities of the Küllstedt area (Section 5.2) in particular are summarised briefly for later discussion of the results according to the present understanding of the deposit from these available data. 5.1 The History of Potash Exploration & Production in the South Harz Potash District The exploration in the South Harz Potash District comprises several stages, which range from the first deep hole exploration in 1888 to the closure of the mines and the end of potash exploration in the district in 1993. In April 1888, an extensive exploration programme for potash was initiated by the Preussisches Ministerium für Öffentliche Arbeit in the northern administrative district Erfurt with a total of 66 exploration holes completed by the end of the programme in November 1897. As the first exploration hole westwards of Nordhausen, close to Günzerode, only hit gypsum and anhydrite as residual rocks at the time of its termination in November 1888, a second exploration hole (Kehmstedt 1) was drilled close to Kehmstedt, which hit 63 m of carnallitite at the time of its termination in July 1889. To acquire a mining property large enough to operate at an economically feasible level, it was necessary to drill as many exploration holes as possible. Therefore, most of the following exploration holes were drilled without a geological or miningbased background but merely for the acquisition of the right to exploitation. The first mining property of this kind was the Bleicherode Mine. However, based on the today’s accepted standards, the level of exploration for the Bleicherode Mine, with an area of about 140 km², was insufficient for shaft sinking, but this is also valid for the foundation of other privately owned mines which followed. Nevertheless, permission for shaft sinking in Bleicherode and the construction of a salt processing facility was given. The shafts of the “Glückauf” Mine in Sondershausen was sunk about 4.1 km from the only exploration hole (Glückauf 1) in the area, which hit potash in May 1892, without secured knowledge about extent and structure of the potash deposit. In 1896, a second exploration hole was drilled between Grossfurra and Sondershausen, followed by a third hole in 1910 to get a better estimate of the mine claim. Subsequently, no exploration activities were conducted for about three decades. Continued exploration activities in the years after 1897 led to the foundation of new mines. Around 1913, this phase of exploration and mine foundations came to an end, during which a Page 17 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 total of 176 deep holes were drilled, of which 85 holes were drilled only for acquisition of the right to exploitation without having hit the potash deposit. After shaft sinking, the exploration activities were focussed on the operational exploration to secure the supply of mineral resources, which was unproblematic in the first decades due to the slow mining progress. The operational exploration comprised initially only the drifting, which was very costly and, therefore, followed the principles that new drifts were created with knowledge from deep hole exploration combined with a prognostic estimate of the zone in front of the mining face, and that drifts had a maximum benefit concerning mining activities (Bartl et al., 2003, /1/). Mining drift exploration was conducted via drill and blasting or cutting, which allowed access to the potash seam over more or less large distances, vital for the geological mapping of the drifts and subsequent investigations, and easy sampling as well as the drilling of rising and deep boreholes. The sampling, as the most important part of the exploration of the deposit, was incumbent upon experienced and qualified Bemusterungshauer and was planned and organized by company geologists from the 1950s. From January 1968, their work basis was the “Bemusterungsanweisung” of the VVB Kali, which gave instructions about how to determine the seam thickness, seam quality, principles of spatial quality distribution, how to acquire data to determine mine losses and dilution of the potash during mining, and how to acquire basic data for reserve calculations. In addition to the mining drift exploration, underground exploration drilling was conducted in some mines since 1907, a combination advantageous for the exploration of the zone in front of the mining face. Even though this kind of exploration drilling was conducted only sporadically in the decades following 1907, it was by then an essential part of every exploration activity within a mine and also used for special purposes, like in the Volkenroda Mine, where 282 of such drill holes were sunk in 1931 and later to explore and mine the present crude oil. After the Second World War, the deficit in exploration had to be reduced, which led to an intensified use of underground exploration drilling. With the complexity of the deposit increasing, however, this drilling method offered the possibility of exploring the rocks of the complete second cycle of the Zechstein (Stassfurt Formation) until the base of the Basalanhydrit (z2ANa) from one drilling site by drill hole deviation. Furthermore, the improved drilling technique allowed drill hole lengths between 100 m and 1,000 m and the type of sampling (core or cutting sampling) could be changed. For a better supervision of all mines of the VEB Kombinat Kali that were conducting underground exploration drilling, a central drilling group at the “Glückauf” Sondershausen Mine was founded in 1971, which had the lead in terms of technology and safety, and was responsible for the planning and procurement of drilling equipment and its maintenance. At that time, close-range drilling was introduced into the process of underground exploration activities, based on the principle that drilling can be conducted fast in every location, at any given angle until a depth of 100 m and with a drill hole diameter of up to 40 mm without the need for complex safety devices. In the VEB Kalibetrieb “Südharz”, underground exploration and closerange drilling were increasingly conducted, reflected by the drilling metres, which increased in number from a total of about 40,000 m in 1979 to a total of about 99,770 m in 1988. Since exploration holes drilled from the surface always reduce the mineable volume of a deposit due to the safety pillars required around each of such holes in a mine, drilling methods starting underground, as discussed above, were usually used. However, at the end of the 1950s and at the beginning of the 1960s, deep hole drilling, in combination with information from historical holes, was used again to determine the extensive mineral salt distribution within the different deposit areas. Amongst others, the Küllstedt field was part of this programme between 1961 and 1965 with seven drill holes and later again between 1975 and 1976 with 16 Page 18 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 holes as part of a prospection. Between 1976 and 1978, activities were again resumed as part of a preliminary exploration, but at this time under consideration of the latest knowledge about the deposit. In the 1950s and 1960s, an internal company standard for processing of historical and recent exploration data was established in the mines of the South Harz Potash District to evaluate several parameters of the deposit, such as its thickness distribution and structure, which was missing during the years before. Until then, the geological documentation in the mines was prepared in different degrees of detail, depending on which group of companies the individual mine was affiliated with. In 1964, a framework was set for the geological documentation from which the necessary step for the processing could be derived. Later in the 1980s, the creation and use of mine plans was considered necessary. Potash exploration in the South Harz Potash District came to an end with the closure of the Bleicherode, Sollstedt und Volkenroda Mines in 1990, “Glückauf” Sondershausen Mine in 1991 and Bischofferode in 1993. Most of the geological documentation was incomplete at the end of the mining activities as it was handed over to the trust company “Gesellschaft zur Verwahrung und Verwertung von stillgelegten Bergwerkbetrieben GmbH”. Apart from potash exploration, drill holes for oil and gas as well as carbonate (not detailed further in this Report) exploration were also drilled. 5.2 The History of Exploration in the Küllstedt Exploration Licence Area Exploration activities in the Küllstedt Exploration Licence Area between 1890 and 1990 targeted two commodities: potash and natural gas. Holes drilled during that time were focussed on either one of the two commodities, which explain the low degree of detail with regard to the documented Kaliflöz Stassfurt (z2KSt) in the holes sunken for natural gas exploration until 1961. However, since most documents about these holes are incomplete or missing (VEB, 1980, /19/), they are of no importance for this report. The following sections provide a detailed overview about the historical exploration activities conducted in the Küllstedt Exploration Licence Area. 5.2.1 Description of Potash Exploration Until 1961, almost nothing was known about the Kaliflöz Stassfurt (z2KSt) in the Küllstedt Exploration Licence Area, except for the Hüpstedt-Beberstedt and Felsenfest Mines and Mühlhausen the natural gas field (VEB, 1980, /19/). Both mines were operational between 1912 and 1924 within a total area of 1,440,000 m² with longwall and room-and-pillar mining as the predominantly applied mining techniques (Raue, 1970, /11/). To date, this remains the only mining activity in the project area. Exploration in the Küllstedt area began in 1890 and resumed around the closed Felsenfest and Hüpstedt-Beberstedt Mines (cf. Figure 1) and along the southern border of the Leinefeld anticline in the 1930s. During these years, exploration for oil and gas in the south as well as adjacent to the southeast of the Küllstedt Exploration Licence Area was also conducted. In the late 1950s, exploration for potash, carbonate and oil and gas was again resumed, mainly along an Page 19 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 east-west trending central belt and in the northeast of the area. The exploration activities from that time were conducted to evaluate the resource potential of the GDR in the Thüringer Becken, which continued in the case of potash as presented hereinafter. Based on the drilling results, it was assumed until 1961 that the sylvinite occurrence in the BWE Volkenroda (cf. Figure 1) would extend into the Mühlhausen natural gas field, whereas in the Hüpstedt-Beberstedt and Felsenfest mine claims (cf. Figure 1), mainly carnallitite with subordinate sylvinite occurrences were encountered. Since the extension of sylvinite was assumed west of the drill holes Kal Gte 1/1961 between Garterode and Deuna and Kal Vll 1/1961 near Vollenborn, the first stage of prospecting works for sylvinite was initiated in 1961. These widespread drill holes extended the knowledge about the subrosional area of the Leinefeld anticline and gave another indication for the southern boundary of the carnallitite extent to the south of it. The evaluation of these works led to their continuation between 1962 and 1965 with the result that there are more sylvinite and sylvinite together with carnallitite salt outcrops. Apart from the holes drilled for sylvinite, the holes targeting natural gas extended the knowledge about the Kaliflöz Stassfurt (z2KSt) as well. Unfortunately, only a few of these holes were cored in the potash section, documented and sampled with the methods used at that time. Other such holes drilled with a core barrel near the BWE Volkenroda (cf. Figure 1) had almost complete core loss. A second interpretation of geophysical drill hole logs from these wells, however, was only done later within context of the “Objekt Kali Küllstedt” (Küllstedt Potash Property), which showed the extension of the carnallitite from the north into the Mühlhausen natural gas field in combination with later results. The deep hole exploration temporarily came to an end in 1966 with a state of knowledge that allowed the calculation of prognostic potash reserves with an estimated percentage of sylvinite for a larger area. The small progress in knowledge about the deposit by 1972 was summarised and the result led to an estimation of Delta-1 potash reserves as sylvinite, which allowed the prospecting work to be continued. The directive for the start of the exploration work for the “Objekt Kali Küllstedt”, which was divided into two prospection drilling phases and one exploration drilling phase, was mainly the drill holes that had encountered sylvinite or mixed salt. This led to the assumption of an eastwest trending sylvinite area with potential and a north-south extent between Küllstedt and Dingelstädt on top of the Eichsfeld swell as the most optimistic guess. Further to the south, sylvinite was not expected, contrary to later knowledge, while its extent west of the BWE Volkenroda was not doubted. This proved wrong according to later knowledge. Knowledge about the development of the remaining Zechstein formations and the Triassic cap rock as well as the tectonic structure of the area was only extended in terms of details. Technical details about the drilling and seismic exploration as well as the analytical procedure for samples from the drill holes will be provided in the following sections. 5.2.1.1 Available Drill Holes As mentioned in Section 5.2.1, potash exploration within the Küllstedt Exploration Licence Area was mainly concentrated along a central east-west trending section with an extension towards the north and south (cf. APPENDIX 3). No drill holes were drilled in the northwestern part of the area and only two single drill holes are available in the south extension of the Küllstedt area. Page 20 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 Altogether, 28 potash exploration drill holes and three shafts were sunk from the surface within the Küllstedt Exploration Licence Area. Furthermore, six drill holes for oil and gas exploration were sunk. The potash exploration was subdivided into a § First exploration phase between 1900 and 1912 (Felsenfest 1, 3, 5 to 13, 17, and 18 as well as the Felsenfest, Hüpstedt and Beberstedt shafts) § Second exploration phase between 1930 and 1939 (Felsenfest 6 to 18) § Prospection phase between 1960 and 1976 (Vollenborn 1/60, Gerterode 1/61, Beberstedt 1/61, Küllstedt 1/62, Sollstedt 1/62, Wachstedt 1/63, Küllstedt 2/64, Kaiserhagen 2/75, Horsmar 2/75, Bickenriede 1/75, Bickenriede 2/75,) § Preliminary exploration phase between 1976 and 1978 (Eigenrode 2/76, Bickenriede 4/76, Eigenrode 2/76, Eigenrode 3/77, Kaiserhagen 4/77, Zella 3/77). This exploration phase proved the occurrence of mixed salt and carnallitite further to the south in the Küllstedt area, as was expected, as well as the occurrence of glaseritic sylvinite in the south of the Küllstedt area. No information is presently available about any underground drilling or geophysical exploration. An overview of the 34 potash exploration drill holes and three shafts that were drilled within the Küllstedt area is given in Table 2, whereas an overview map as well as a summarised record of the available geological logs within and adjacent to the Küllstedt area are given in APPENDIX 3 and APPENDIX 4 respectively. Table 2 Overview of Potash Drill Holes and Shafts Located Within the Küllstedt Area (Easting and Northing in Gauss-Krueger Coordinates) Drill Hole Easting Northing Felsenfest 1 4389830.1 5692703.4 294.0 532.0 z2ANa Felsenfest 3/1906 4389921.6 5690047.3 477.0 883.5 z2ANa Felsenfest 5 (Deutschland 17) 4388608.8 5689760.7 460.0 853.5 z2NA Felsenfest 6 (Deutschland 15) 4390650.0 5691340.1 No data 625.0 z2D Felsenfest 7 (Deutschland 16) 4392950.0 5691520.1 354.0 561.6 z2KSt Felsenfest 8 (Deutschland 18) 4387583.6 5691614.3 360.0 639.0 z2NA Felsenfest 9 (Deutschland 24) 4390780.1 5692190.0 314.0 522.1 z2NA 4390700.1 5691370.1 366.0 584.9 z2NA Felsenfest 10 (Deutschland 19) Elevation [m above sea level] Total Depth [m] Total Depth in Stratigraphic Horizon Page 21 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 Drill Hole Easting Northing Felsenfest 11 (Deutschland 20) 4392970.0 5691470.0 356.0 633.0 z2NA Felsenfest 12 (Deutschland 23) 4389415.4 5691619.4 352.0 551.0 z2NAr Felsenfest 13 (Deutschland 21) 4389505.4 5691615.7 356.0 645.0 z2CA Felsenfest 17 (Deutschland 25) 4392550.1 5693540.0 335.0 553.2 z2NA Felsenfest 18 (Deutschland 22) 4391790.0 5689340.0 461.0 882.0 z2NA Gernterode 1/1961 4394910.6 5693901.9 307.4 560.1 z2ANa Vollenborn 1/1960 4395973.4 5693237.6 361.0 672.1 z2ANa Schacht Felsenfest 1909/1 4389249.3 5690004.8 477.1 869.5 z2NA Schacht Hüpstedt 4390290.1 5689830.1 473.9 880.0 z2NA Schacht Beberstedt 1910 4390363.0 5689788.0 474.2 880.0 z2NA Beberstedt 1/1961 4388266.3 5685439.2 341.3 965.5 z2ANa Eigenrode 3/1977 4390358.5 5686170.6 370.0 1,008.0 z2ANa Wachstedt 1/1963 4377563.5 5685943.3 479.4 901.4 z2ANa Küllstedt 1/1962 4381685.3 5683696.0 398.0 923.6 z2ANa Küllstedt 2/1964 4379817.8 5684892.2 466.3 953.9 z2ANa Bickenriede 1/1975 4384003.9 5682397.4 360.8 951.0 z2ANa Bickenriede 4/1976 4383931.0 5680123.3 328.6 933.7 z2ANa Bickenriede 2/1975 4385911.5 5682052.2 304.5 1,036.8 Eigenrode 2/1976 4392619.1 5686039.9 427.4 994.5 z2ANa Horsmar 2/1975 4389821.6 5682887.6 301.4 988.7 z2ANa Kaisershagen 2/1975 4393876.9 5685066.1 404.9 1,210.5 Kaisershagen 4/1977 4395265.9 5685488.2 413.7 995.9 Sollstedt 1/1962 4394213.8 5687171.0 468.5 1,011.0 Zella 3/1977 4387108.3 5684430.5 285.7 949.5 z2ANa Mühlhausen 1 4388402.3 5674546.0 369.4 1,002.7 z1ANc Elevation [m above sea level] Total Depth [m] Total Depth in Stratigraphic Horizon z1AN/z1ANa z1AN/z1ANa z2ANa z1AN/z1ANa Nearly all drill holes were drilled through the Kaliflöz Stassfurt (z2KSt) into the underlying Basalanhydrit/Stassfurt Karbonat (z2ANa/z2CA) or the Stassfurt Steinsalz/Decksteinsalz (z2NA/z2NAr), except four drill holes that did not completely intersect the potash seam (Felsenfest 7) or were drilled into the Werra-Anhydrit (z1AN) of the Werra Formation below the Stassfurt Formation (Bickenriede 2, Kaisershagen 2 and Sollstedt 1). Page 22 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 5.2.1.2 Drilling Technology The drilling technology is described in the detailed exploration reports, which are stored in archives to which ERCOSPLAN does not yet have access. Therefore, they are not available yet. However, the potash exploration was basically done by drilling and the whole evaporite section was cored. In the case of drill holes for natural gas and crude oil, this section was cored only rarely. 5.2.1.3 Drill Hole Logging,Sampling and Chemical Assaying The methods for drill hole logging, sampling and chemical assaying are described in the detailed exploration reports, which are stored in archives to which ERCOSPLAN does not yet have access. Therefore, they are not available yet. The procedures conducted followed strict rules on the execution and checking as well as the evaluation of the results. Quality control was ensured by independent state institutions. According to the knowledge of the authors of this Report, all exploration work conducted later than 1950 was completed with detailed reports, which were quality-checked by the abovementioned institutions. 5.2.1.4 Sampling and Assay Procedure The sample preparation and analysis was done in the laboratory of the VEB Kombinat Kali’s, research department according to standard procedures (Table 3) developed by the state authority and as detailed in Döhner (1986, /6/). Page 23 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 Table 3 Standard Procedures Applied for Sample Analysis by the Laboratory of the Research Department of VEB Kombinat Kali According to VEB (1980, /19/) and as Defined by the State Authority Sample Preparation/Type of Analysis Applied Standard Chemical analysis Crystallographic investigations KALI 97-003/01 Analysis of potassium by flame photometry. KALI 97-020/1 and KALI 97-020/02 Applied if K2SO4 was analysed. Bromine analysis Iron analysis Gas analysis Remarks KALI 97-5 — TGL 12.126 — “Analysenvorschrift zur Bestimmung mineralgebundener und freier Gase mittels Schwingmahlung (Trockendegasierung) und gaschromatographischer Analyse” (standard for the determination of mineral-bound and free gases by oscillating milling (dry de-gasing) and gaschromatographic analysis). KALI 97-021 Determination of degree of deposit development for Sylvite and Glaserite — Clay mineralogical investigation Dilution of sample with tap water and shaking for 96 hours with NaCl (15%) solution to remove Gypsum and Anhydrite. Subsequently, X-ray analysis of the CaSO4-reduced solution residue followed. For comparison, clay samples were elutriated, dried and analysed in the same way. All analyses were conducted by means of X-ray counter-tube goniometers, the evaluation was done semi-quantitatively. Thin section analysis Only transmitted light investigation in bright field was conducted. 5.2.1.5 Nomenclature according to Stolle & Döhner (1970, /15/). Reporting of Results and Data Storage All summarised results from geological descriptions, chemical assaying and geophysical logging are listed in the exploration report for the Küllstedt area (VEB, 1980, /19/). For a comprehensive interpretation of the results, drill holes from potash and oil and gas exploration outside the Küllstedt area were evaluated as well. Nevertheless, only results from the drill holes inside the Küllstedt area were reported in the exploration report. The detailed documentation, such as drilling reports, geophysical logging data, photographs, technical drilling record, interim and final reports, were stored in the drill archive of the VEB GFE Freiberg, BT Jena (VEB, 1980, /19/) and are presently part of the archives of regional authorities. Copies of the data related to the potash section of the drill holes, important technical documentations and protocols about chemical and thin section analyses were additionally stored by the research department of the state holding potash company (VEB Kombinat Kali, DB Forschung) (VEB, 1980, /19/). Page 24 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 Due to comprehensive drill core documentation by description, photographs and analysis as well as nearly complete use of the drill core material for analytical purposes, no core material has been left for storage (VEB, 1980, /19/). Solely § Reference samples from the drill holes Kaisershagen 4/1977 (reference samples of Zechstein 3 and 4) and almost the complete profile of the Zechstein 3 to 4 from Ammern 1/1976 as well as § Pulverized samples from the chemical analysis and thin sections were stored in the central core storage archive in Bernau and by the VEB Kombinat Kali respectively (VEB, 1980, /19/). 5.2.1.6 Surface Seismics Between 01 July 1975 and 26 March 1976, the VEB Geophysik conducted within the context of the “Objekt Kali Küllstedt” a geophysical survey by means of reflection seismics on a total section length of 244.4 km with a measuring density of nine seismograms per kilometre and a profile density of 0.8 km/km². The corresponding report is dated 28 October 1976. Objectives of the survey campaign were to obtain detailed knowledge about the tectonics of the area, the determination of the subrosional margin of the evaporite section and the detection of the paleogeographical differentiation of the area by changes in the thicknesses, mainly of the first and second cycle of the Zechstein. The results of the seismic campaign are detailed in the corresponding reports, which are not available at the moment. 5.2.2 Description of Oil & Gas Exploration No details about the oil and gas exploration phase are currently available to the authors of this Report, apart from coordinates, elevations and final depths of the drill holes as listed in Section 5.2.2.1. 5.2.2.1 Available Drill Holes The five drill holes listed in Table 4 were drilled for oil and gas exploration in the central, southern and northeastern part of the Küllstedt area in 1934 and in the 1960s. Only three of the five holes are known to have penetrated the Stassfurth evaporites into the Werra-Steinsalz (z1NA) and the Unterer Werra-Anhydrit (z1ANa). No detailed core descriptions or analytical results are available at present for these drill holes. Stratigraphic interpretation is solely available from interpretation of the geophysical drill hole logging (cf. Section 5.2.2.3). For more detailed records of drill holes for oil and gas exploration within and adjacent to the Küllstedt area, see APPENDIX 3 and APPENDIX 4. Page 25 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 Table 4 Overview of Oil and Gas Drill Holes located within the Küllstedt Area (Easting, Northing in Gauss-Krueger Coordinates; VEB, 1966, /18/ & Drill Hole Logs). As Logs of the Last Two Holes Were Not Available, No Coordinates or Depths Can Be Given Drill Hole Easting Northing Sollstedt 1/1962 4394213.8 5687171.0 468.5 1,011.0 z1AN/z1ANa Sollstedt 2/1962 4392032.5 5688907.2 450.3 968.2 z1AN/z1ANa Küllstedt (E1)/1966 4384187.9 5684003.3 410.9 985.3 z1AN/z1ANa Küllstedt (E2)/1966 unknown unknown unknown unknown unknown Stadtwald 1/1934 unknown unknown unknown unknown unknown 5.2.2.2 Elevation [m above sea level] Total Depth [m] Total Depth in Stratigraphic Horizon Drilling Technology No details about the drilling technology for the oil and gas exploration in the Küllstedt area are presently known to the authors of this Report. 5.2.2.3 Drill Hole Logging The geophysical logging data currently available to the authors of this Report are limited to the record of the natural gamma, whereupon stratigraphic interpretations as well as K2O content correlations were conducted as reported by VEB (1966, /18/). Furthermore, it has been documented that interpretations and correlations were additionally cross-checked by geologists, comparing the logging results with results from other drill holes. It is therefore assumed that the available data interpretation is reliable. Records of drill hole deviation data are reported to be available for single drill holes. Nevertheless, these data are currently not available to the authors of this Report. It is assumed that the drill holes are more or less vertical. 5.2.2.4 Sampling and Assay Procedure It is known that cores of the potash section were obtained for single drill holes (VEB, 1966, /18/). Nevertheless, neither a documentation of the drill cores nor the purpose of the sampling or analytical results is presently available to the authors of this Report. Page 26 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 5.2.2.5 Quality Control Procedure No independent verification of the natural gamma logging results from the oil and gas exploration drill holes was possible. However, the interpretation of the natural gamma logging regarding the reported K2O content was done according to standards of the state reserve commission and verified by exploration geologists. 5.2.2.6 Reporting of Results and Data Storage The results from the geophysical natural gamma logging of the drill holes are stored in the archive of GDF Suez in paper format. No further documentation is presently available. 5.3 Historical Resource Estimates The first historical resource estimate known to the authors of this Report is based on calculations of prognostic reserves according to the 3. Kali-Instruktion with values given in VVB Feste Minerale (1964, /22/) and presented in Table 5. The calculations are based on historically defined subfields in the mentioned report, which do not coincide entirely with the extent of the Küllstedt Exploration Licence Area. The Delta-2 potash salts in subfield 1 are mixed salt. The values of the resource calculation of 1980 (VEB, 1980, /19/) are presented in Table 6 with a different resource class, which complies with the 4. Kali-Instruktion. The subfields presented in this table neither coincide with the subfields from the report of 1964 (VVB Feste Minerale, 1964, /22/) nor with the extent of the Küllstedt Exploration Licence Area. The overlap of areas is given for those defined in the report of 1964 (VVB Feste Minerale, 1964, /22/) with those defined in the report of 1980 (VEB, 1980, /19/). Page 27 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 Table 5 Prognostic Resource Estimate for Sylvinite, Carnallitite and Potash-Bearing Salts (VVB Feste Minerale, 1964, /22/) Subfield Resource Category Area [m²] Thickness [m] Volume [m³] Density [t/m³] Percentage of Potash-Bearing Area [%] Salt Mass [t] K 2O [%] K 2O [t] 1 Delta-2 (potashbearing salts) 44,500,000 8.0 356,000,000 2.0 60 427,200,000 10.0 42,720,000 2 Delta-1 (sylvinite) 56,000,000 5.0 280,000,000 2.2 10 61,600,000 22.0 13,500,000 Delta-1 (carnallitite) 56,000,000 20.0 1,120,000,000 1.8 90 1,800,000,000 10.3 185,400,000 3 Delta-2 (sylvinite) 84,000,000 4.0 336,000,000 2.2 10 7,500,000 12.0 900,000 4 Delta-1 (sylvinite) 64,500,000 5.0 322,500,000 2.2 58 411,400,000 15.0 61,700,000 Delta-1 (carnallitite) 64,500,000 10.0 645,000,000 1.8 7 81,000,000 10.0 8,100,000 Page 28 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-03-31.docx Web: http://www.ercosplan.com Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 Table 6 Resource Estimate with Resource Category and Tonnages (VEB, 1980, /19/) Field Overlapping with Keula Subfield 2 with over an area of 2.2 km² (approx. 10%) Resource Category Total Mass [t] Total K2O [t] Soluble K2O [t] Carnallite [t] Glaserite [t] C2 96,800,000 13,300,000 13,100,000 14,100,000 — C2 234,000,000 33,800,000 29,400,000 8,510,000 24,200,000 Subfield 4 with over an area of 3.8 km² (approx. 17%) Mühlhausen Subfield 4 with over an area of 23.0 km² (approx. 47%) Page 29 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-03-31.docx Web: http://www.ercosplan.com Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 The resource estimates were prepared and checked by geologists who had worked for several years in potash mining. It is therefore assumed that the estimates are accurate (VVB Feste Minerale, 1964, /22/; VEB, 1980, /19/). 6 Geological Setting and Mineralisation In the following sections, a summary will be given of the regional geology of the South Harz Potash District and the local geology as well as the hydrogeology of the Küllstedt Exploration Licence Area, together with potash mineralisation characteristics, in terms of type, thickness, depth and grade distribution encountered. 6.1 Regional Geology The geological development of the South Harz Potash District began with the deposition of primary evaporites in the Zechstein Ocean during the Permian, which were subject to numerous conversion processes in the following millions of years due to geotectonical events as well as ascending and descending solutions. The result was a characteristic deformation of these chemical sediments, which was also the main reason for the local subrosion of the evaporite formation (Zechstein Cycle 1 to 4) caused by water inflow from the overlying rocks (Bartl et al., 2003, /1/). Geologically located in the northwestern part of the Thüringer Becken, the South Harz Potash District is an approx. 85 km long, SE-NW trending structure, which follows the regional geological structures. The overburden layers of the evaporite formation show a general dip of less than 10° towards the south, accompanied by fracture faults with the same trend as the potash district and gently undulating flexures of the rock layers of the cap rock. The so-called FinneStörungis is of trans-regional importance as it separates the Thüringer Becken from the Hermundurische Scholle. The fault structures developed during the Mesozoic, primarily as normal faults with offsets in the range of about one hundred metres. During the Late Cretaceous, these structures where overprinted compressively. Towards the west, the influence of these SENW trending faults declines and NNE-SSW orientated structures appear, which extend as the Ohmgebirge-Grabenzone into the Küllstedt Exploration Licence Area. The Zechstein evaporites of the South Harz Potash District have developed four large cycles (Werra, Stassfurt, Leine and Aller Formation) (Figure 3) with only the second oldest cycle (Stassfurt Formation) containing potash minerals, which were and are still being mined. Since the district took a position relatively close to the basin’s rim during the time of the Zechstein, the overlying three cycles (Ohre, Friesland and Fulda Formation) (Figure 3) did not develop salt minerals. Generally, the salinar formation is overlain by rocks of the Buntsandstein (Figure 3). The Küllstedt Exploration Licence Area is located adjacent south to the basin border of the South Harz Potash District, where the Leine-Steinsalz (z3NA) and Stassfurt-Steinsalz (z2NA, cf. Figure 3) are represented by anhydritic-clayey equivalents in the Gotha-Creutzburg area. To the west, the area is confined by the Eichsfeld-Schwelle, whereas to the north and east, the area is limited by a platform adjacent to the east of the Eichsfeld swell. This platform was origiPage 30 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 nally a shallow water terrain and deepens only about 35 km further to the east of the sedimentation basin. The influence of the marginal position of the Küllstedt area in the basin causes a decrease of the K2O contents within the potash seam in the southern and western areas. Due to different facies of the potash mineralisation, different sub-areas can be defined in the Küllstedt area (cf. APPENDIX 3). Whereas a predominance of carnallitic potash ore is assumed in the northern part, a predominance of sylvinite/sylvinitic ore is expected in the southern part (VVB Feste Minerale, 1964, /22/). Locally, potash mineralisation occurs already in the Stassfurt-Steinsalz (z2NA) in the area north of Mühlhausen due to its special paleomorphologic situation. Due to its location, the explored part of this particular area belongs to the central part of the pre-Zechstein basin of Mühlhausen. Unlike in different parts of the basin that were already being dried out at the same time, the area north of Mühlhausen was part of a depression where brines evaporated and potash mineralisation occurred (Döhner, 2001, /7/). The thickness of Stassfurt-Steinsalz (z2NA) increases from the south (10 m – 20 m) to the north (approximately 70 m). Page 31 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 Series (Regional) Group Formation/Sequence Stratigraphic Symbol Horizon (Local Name) Quaternary Thickness [m] min max q 0.0 15.0 ku mo mm mu 0.0 0.0 0.0 0.0 21.0 61.0 166.0 109.0 so 0.0 253.7 sm 0.0 165.0 su 305.0 527.2 Hiatus Keuper Buntsandstein Triassic Muschelkalk Unterer Keuper Oberer Muschelkalk Mittlerer Muschelkalk Unterer Muschelkalk Oberer Buntsandstein Mittlerer Buntsandstein Unterer Buntsandstein Röt 4 Röt 3 Röt 2 Röt 1 Roter Röt Pelit-Röt Grauer Röt Solling-Folge Hardegsen-Folge Detfurth-Folge Volpriehausen-Folge Bernburg-Folge Calvörde-Folge Ohre- bis FuldaFormation Aller-Formation Permian Zechstein Leine-Formation Stassfurt-Formation Werra-Formation so4 so3 so2 so1 soR soP soG smS smH smD smV suBG suC Obere Zechsteinletten z5-z7 0.0 34.5 Grenzanhydrit Allersteinsalz Pegmatitanhydrit z4ANb z4NA z4ANa 0.0 0.0 0.0 2.0 17.0 4.5 Roter Salzton z3Tb-z4Ta 0.0 15.0 Leinesteinsalz Hauptanhydrit Plattendolomit z3NA z3AN z3Ca 0.0 11.0 0.0 89.4 108.0 11.5 Grauer Salzton z2Tb-z3Ta 3.0 18.0 Deckanhydrit Decksteinsalz Kaliflöz Staßfurt Staßfurt-Steinsalz Basalanhydrit Hauptdolomit Oberer Werra-Anhydrit Werra-Steinsalz Unterer Werra-Anhydrit Werra-Karbonat Werra-Ton (Kupferschiefer) Werra-Basalkonglomerat z2ANb z2NAr z2KSt z2NA z2ANa z2D z1ANc z1NA z1ANa z1CA z1T z1C 0.0 0.0 0.0 15.5 0.53 1.6 3.0 31.0 23.0 2.80 0.35 0.50 40.8 10.0 6.1 58.0 77.0 10.0 68.7 4.4 213.4 82.0 19.75 >2.85 0.50 - Basement Figure 3 Stratigraphic Succession in the Küllstedt Exploration Licence Area Page 32 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-03-31.docx E-mail: mining@ercosplan.com Web: http://www.ercosplan.com Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 6.2 Local Geology of the Evaporites The South Harz Potash District is, unlike the neighbouring Unstrut Potash District, characterised by a shallow depth of the sedimentation area with a distinctive morphological structuring of the basin’s floor due to late Variscan structures underground. As mentioned in Section 6.1, the Zechstein in the South Harz Potash District is subdivided into seven cycles, of which the oldest cycle, the Werra Formation, has the largest thickness with a minimum thickness and maximum thickness of 103 m and 314 m respectively, and consists mainly of Halite, which is of the largest thickness, and Anhydrite. Subordinately, carbonates and copper-bearing clays (Kupferschiefer) occur. The overlying Stassfurt Formation, with a thickness of between 32 m and 255 m, contains the Kaliflöz Stassfurt (z2KSt), which is relevant for mining and the current exploration target of the project, with a thickness of up to 58 m (Figure 3). In general, this formation is characterised by a relatively thick and locally very variable formation of basal carbonate- and sulphate-bearing layers with a relatively small thickness of the Stassfurt-Steinsalz (z2NA) accompanied by uneven lithological profiles and clay intercalations. A locally uneven, partly early beginning of the potash mineral deposition is also known of the South Harz Potash District (cf. Section 6.1). Besides the Kaliflöz Stassfurt (z2KSt), the so-called Hauptdolomit was of temporary interest as it contains a comparably large percentage of organic matter, creating the basis for the hydrocarbons, which were explored in the past, among others by the four drill holes along the southwestern border of the Küllstedt Exploration Licence Area, Hainich-Eigenrieden 1/62 to Hainich-Eigenrieden 4/62. The stratigraphical formation consists of mainly dolomitic rocks with locally changing, platy, crystalline as well as dark, dense and relatively brighter, dense to grainy-bulbous formations. Overlying the Hauptdolomit, the Stassfurt-Basalanhydrit (z2ANa) has a very variable thickness in the South Harz Potash District, between less than 1 m in the Bischofferode area and 30 m towards the east. The facial transition to the underlying and overlying rocks is very variable. The Stassfurt-Steinsalz (z2NA) normally occurs in form of the so-called Anhydritregion as grey to colourless salt rocks with even Anhydrite bands with distances between each other in the range of centimetres to decimetres. In the South Harz Potash District, this region was deposited in a locally restricted area between Bleicherode and Wolkramshausen and, to the south, Ebeleben. The Anhydritregion has a thickness of only 40 m, thinning towards the west. The overlying section has a completely different facial development with reddish to reddish-brown rock salt, clay intercalations (“Tonlöser”) and, running normally to the layering, fissures that mainly filled with secondary clay-bearing Halite, which are all an indication for continental influence with periodic drying of the sediment surface and subsequent flooding with brines. The nest-like embedding of potash minerals can probably be traced back to these events as well. The whole section overlying the Anhydritregion and described here is also known as “SüdharzSteinsalz” and can be further subdivided by its appearance into a lower section (“Unteres Südharzsteinsalz”), which has a strong overprinting of the original layering by recrystallisation in the formerly freshly deposited sediments, and an upper section (“Oberes Südharzsteinsalz”), which has less overprinting but thus a more distinctive layering, caused by clay and anhydritic inclusions, which allows the determination of stratigraphic marker horizons (Bartl et al., 2003, /1/). Due to its comparably small thickness, the Stassfurt-Steinsalz (z2NA) forms a less welldeveloped protective layer for the overlying Kaliflöz Stassfurt (z2KSt) against the hydrocarbons and brines contained in the underlying carbonate and sulphate layers. The surficial structures Page 33 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 of the Stassfurt-Basalanhydrit (z2ANa) also cause difficulties during the creation of new drifts in conventional mining when facing tectonically influenced areas. The Kaliflöz Stassfurt (z2KSt) has a generally distinctive layering with decreased distances between the single layers in the range of decimetres to centimetres, but partly also in the millimetre range, alternating in their mineral content between Halite and potash minerals as well as thin sulphate mineral layers with different compositions. The latter are accompanied by clay, which also occurs isolated in thin layers. The clay reduces the overall rock strength, which is also known under the term “Tonlöser”, and was therefore also the main reason for roof falls that threaten conventional mining. According to the layering, two areas can be distinguished in the Kaliflöz (z2KSt), which are the footwall group with mainly a narrow layering (centimetres to millimetres) almost without thick Halite layers, which increases the percentage of mineable potash minerals, and the hanging wall group below with a wider spacing of the layering (decimetres) and characteristically several centimetre- to a few decimetre-thick Halite layers (Bartl et al., 2003, /1/). The footwall group is subdivided into the 10 marker horizons (Leitbank 1 to 10) and the hanging wall group into further nine marker horizons (Leitbank 11 to 19) (Seidel, 2003, /13/). The Decksteinsalz overlies the Kaliflöz Stassfurt (z2KSt) with a thickness between 0 m and about 6 m (Figure 3) and represents no independent stratigraphic unit as previously anticipated, but corresponds to extensive barren layers in the uppermost part of the potash seam, mainly proven by relictic occurring minerals and structures of formerly present potash minerals. The same accounts for the overlying Deckanhydrit with thicknesses between 0 m and 10 m and its often distinctive layering, which represents the former layering of the potash section. The mineral conversions here were more intensive than in the Decksteinsalz. Above the Deckanhydrit, dark sediments occur, increasingly dominated by clay. In the lower part of these sediments, salt inclusions indicate the fading of the evaporite deposition, which designates this part to the Stassfurt Formation (Oberer Stassfurt-Ton (z2Tb)), whereas the upper part is designated to the Leine Formation (Unterer Leine-Ton (Grauer Salzton) (z3Ta)) (Figure 3). 6.3 Geological Development of the Potash Deposit in the South Harz Potash District The following sections present the geological development of the potash deposit due to mineral conversions of the potash-bearing minerals and tectonical events. 6.3.1 Origin of the Potash Mineralisation The Kaliflöz Stassfurt (z2KSt) was relatively evenly sedimented as kieseritic carnallitite with an original mineralisation consisting of Carnallite (between 55% and 60%), Halite (between 25% and 30%) and Kieserite (between 10% and 14%), whereas the lower part of the footwall group is almost Kieserite-free. Shortly after the deposition of the carnallitite, mineral conversion processes began due to the high solubility and reactivity of the salt minerals when facing a different chemical environment. External brines, not belonging to the original sedimentation conditions and usually undersaturated with regards to potash-minerals, could flow through the still relatively porous and uncompacted evaporites and remove their components in the order of Page 34 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 decreasing solubility, accompanied by the generation of new minerals in the affected areas. Carnallite was converted to Sylvite due to an excess of magnesium chloride (MgCl2) brine according to KCl·MgCl2·6H2O + H 2O Carnallite water → KCl + MgCl2(aq) Sylvite magnesium chloride brine The Sylvite is the main potash mineral in sylvinite (Section Figure 4), which dissolution led to barren rocks. Kieserite, as a mineral of relative low solubility, was converted to Mg-, Ca-, Kand Na-bearing sulphates, commonly occurring in the sylvinite (Section Figure 4) (Bartl et al., 2003, /1/). Mineral conversions led to loss of substance in the original evaporites, on one hand due to the dissolution and removal of components of the original minerals, if not recrystallized in other places of the deposit, and on the other hand due to the removal of crystal water from the original minerals like Carnallite, which contains 39% of crystal water. Accordingly, different thicknesses of the differently developed potash profiles were the result (e.g. a thickness of about 19 m for completely barren rocks, of about 22 m for sylvinite and of about 46 m for unaffected carnallitite). Based on recent knowledge, two different directions of Zechstein-aged external brines are known to have an influence on the deposit, which are ascending NaCl-saturated (Seidel, 2003, /13/) brines probably having originated from volcanic sources below the Zechstein-aged rocks and/ or from the compacting of the Rotliegend rocks below the Zechstein rocks or the Zechstein rocks themselves, and descending brines probably having their origin in the decreasing concentration of the mother liquor at the end of the second cycle of the Zechstein (Bartl et al., 2003, /1/; Schröder & Blümel, 1977, /13/). Ascending brines affected the original deposit along their pathways, creating spatially restricted zones of mixed salt, sylvinite and barren rocks, which are very variable in terms of their extension and vertical as well as horizontal arrangement. The barren rock zones are the final stage of the conversion processes as the inflowing fluids were already saturated with sodium chloride (NaCl). In the South Harz Potash District, extensive barren rock zones are known, which might have been the result of ascending fluids converting the original deposit due to the small thickness of the Stassfurt-Steinsalz (z2NA) (cf. Section 6.2). The relatively hardly soluble Kieserite of the original carnallitite was also affected and completely converted to fine crystalline Anhydrite, which occurs as the main sulphate-bearing mineral in the district. Since this mineral is even less soluble, it was not further affected by the ascending brines. The influence of descending brines on the Kaliflöz Stassfurt (z2KSt) is expressed by the extensive occurrence of the Deckanhydrit and Decksteinsalz, which underwent intensive conversion processes, amongst others caused by NaCl-undersaturated solutions (Seidel, 2003,/13/). According to Section 6.2, the Deckanhydrit was affected most intensely by the removal of the chloride minerals, whereas the Decksteinsalz represents a partial development of a barren zone at the hanging wall block of the Kaliflöz Stassfurt (z2KSt). Underlying carnallitite is converted to sylvinite if the influence of descending brine is smallest. As the thickness of the affected profiles of the potash section is determined by the depth of the former sedimentation basin, such profiles of marginal areas have a much larger thickness than the profiles located more centrally and in deeper parts of the former basin. Accordingly, a stratigraphic reduction of the remaining potash profile occurs, whereby the Deckanhydrit has the largest thickness in the profiles of the marginal areas (e.g. 75% of the total thickness of the potash section in the Mühlhausen-Pöthen area). Geologically, the influence of both types of solutions can be attributed to the second cycle of the Zechstein with the generation of the Stassfurt Formation. However, the ascending brines Page 35 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 influenced the deposit at first, whereas the descending brines encountered the results of this prior influence before the sedimentation of the Unterer Leineton (z3Ta) (Bartl et al., 2003, /1/; Schröder & Blümel, 1977, /13/). 6.3.2 Tectonics of the Potash Deposit The evaporite formation of the Zechstein was affected by tectonic events during the late Mesozoic and Tertiary, which led to the exhumation of the Harz Mountains and Thüringer Wald as well as the development of the Thüringer Becken and which also determined the present depth distribution of the Kaliflöz Stassfurt (z2KSt). In the more competent rocks above and below the evaporite formation, fractures developed with corresponding displacement of these rocks against each other, whereby the salt rocks developed characteristic fold structures due to their comparably lower competence. The evaporite formation thus influenced the tectonic development of the rocks below and above it and was also influenced in the same way by these rocks, depending on its thickness. The South Harz Potash District is tectonically more differentiated than the Unstrut Potash District to the east. The Finne fault mentioned in Section 6.1 extends from the Unstrut Potash District towards the northwest as a zone of intensively faulted salt rocks, known as Wippertal-Störungszone and traceable across the mining claims of Sonderhausen and Bleicherode to the area north of Bischofferode. Although its offset is decreasing towards the Thüringer Becken, the influence of the fault zone on the intrasalt tectonic is remarkable, which is mainly a result of the comparably small thickness of the salt formation. Northeast of the Wippertal-Störungszone in the South Harz Potash District, only a thin seam of potash mineralisation occurs, followed further in that direction by the area of subrosion south of the Harz Mountains. The largest part of the South Harz Potash District has developed in the area between the Wippertal-Störungszone and the NW-SE trending Schlotheimer Graben, thus tectonically belonging to the Thüringer Becken. Northwest of Schlotheim, the typical graben character decreases and the fault system of the Schlotheimer Graben occurs as a thrust of the almost complete second cycle of the Zechstein in the Pöthen mine claim without further complexity. Intensive deformation of the evaporite formation is known, however, from drill holes and mine drifts in the Keula-Ebeleben-Schlotheim area. The NNE-SSW trending Ohmgebirge-Grabenzone in the northwestern part of the South Harz Potash District is represented by a pronounced strain structure right below the topographic surface. Within the evaporite formation, this structure is fading from its top downwards, and is no longer traceable at the level of the Kaliflöz Stassfurt (z2KSt) in the Bischofferode mine claim. The level of the Kaliflöz Stassfurt (z2KSt) is dominated by folding structures of different dimension (several metres to several hundreds of metres) and vergence in tectonically affected areas, by overturned folds, thrusts, layer thickening and thinning, punctured by more competent layers (Anhydrite) and injection of ductile rocks (especially “Trümmercarnallitit”). The more extensive anticlinal and synclinal structures in the more competent rocks underlying and overlying the Kaliflöz Stassfurt (z2KSt) (Stassfurt-Basalanhydrit (z2ANa) and Leine-Anhydrit (Hauptanhydrit) (z3AN)) influenced the tectonic deformation of the potash section, whereas the Leine-Anhydrit (Hauptanhydrit) (z3AN) especially, embedded within the salt rocks, induced compensation movements within these rocks, particularly in the Kaliflöz Stassfurt (z2KSt), where the carnallitite as a very mobile (incompetent) rock was the preferred material for this compensation. Continuous tectonic strain on the rock layers of the Unterer Leineton (Z3Ta) and Leine-Anhydrit (z3AN) (especially in hinge and top areas of folds) led to the ripping apart Page 36 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 of these layers, which caused the Kaliflöz Stassfurt (z2KSt) to be directly overlain by the LeineSteinsalz (z3NA). In the eastern part of the Bischofferode mine claim, the largest thickness of Trümmercarnallitit within such structures was measured at >160 m (Bartl et al., 2003, /1/). The fold structures of the South Harz Potash District show a NW-SE trend with small regional differences of this direction between the western, central and eastern part, but with distinctive dependencies of the tectonic structures on the boundary line of the surrounding potash distribution within the potash seam. Accordingly, a great variability of tectonic influence is observed from almost non- to weakly affected areas showing horizontal to slightly dipping, even or weakly waving potash layers, to strongly affected areas with the described structures, mainly linked to regional or trans-regional fault zones (e. g. Wippertal-Störungszone or Schlotheimer Graben). As a consequence of the tectonic influence, parts of the Zechstein evaporite were exposed to near-surface waters in the cap rock due to exhumation of extensive parts of the crust (e.g. Harz Mountains), which affected the Kaliflöz Stassfurt (z2KSt) in particular, since it contained and still contains minerals with high solubility (e.g. Carnallite). Accordingly, a so-called salt table developed in the South Harz Potash District, which is today’s limit for the extension of the salt rocks. 6.3.3 Subrosion Due to the synclinal bedding of the Zechstein layers and those of the cap rock, these rock layers rise towards the Leinefelder Sattel in the north and the Hainich in the west and southwest respectively, whereas the stratigraphically overlying formations crop out gradually. This causes the evaporite horizons to come more and more into the area of influence of surficial circulating waters, with their leaching effect causing the subrosion of these horizons. The extent of the evaporite subrosion is derived from abrupt changes in thickness of the horizon under the premise that the loss of substance is due to subrosional processes. Locally, facial differences can also be the reason for these changes. However, reliable evidence that subrosion caused these changes in thickness is difficult to find, since only a few drill holes in the areas affected by subrosion were cored. The areas with beginning subrosion run more or less parallel around the MühlhausenAltengottern-Mulde in form of belts. While the inner belt affects the stratigraphically higher evaporate horizons, the outer belt affects the stratigraphically lower evaporite horizons. The general progress of the individual belts is mainly determined by structural conditions and often modified by tectonic structures (fault zones, anticlines and synclines), the morphology of the topographic surface and the facial development of the salt horizons. 6.3.3.1 Subrosion in the Zechstein The evaporite horizons of the Zechstein were affected by subrosion in different sized areas. In general, the subrosion begins beyond the Vollenborn-Hüpstedt-Dingelstädt-Effelder-Heyerode line and gradually includes the stratigraphically older evaporite horizons towards the north and west. The evaporite horizons of the Zechstein are then affected by subrosion if they are located at elevations between 200 m and 350 m below sea level, which corresponds to a depth of 500 m Page 37 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 to 800 m with respect to the topographic surface. Towards the north, shallower depths were identified and towards the west, larger depths, which means that the level of subrosion increases towards the north. 6.3.3.2 Subrosion in the Triassic Overburden Evaporite formations in the Triassic overburden are present in the Röt Formation (soRF) (Figure 3) and in the Anhydrit-Formation. While rock salt in the latter formation are primarily developed only southeast of the Mühlhausen-Schlotheim line, in the other parts of the project area, Gypsum that is extensively affected by subrosion as well occurs, which, in combination with karstification, makes it hydrogeologically important. The subrosion of the Röt Formation begins at the Holzthaleben-Schacht Pöthen-SaalfeldBeberstedt-Dingelstädt-Effelder-Heyerode line, meaning the boundary where subrosion begins runs parallel to that in the salt horizons of the Zechstein, which additionally coincides with the crop line of the Hauptmuschelkalk-Formation. This boundary deviates only within the area of the Volkenroda-Pöthen mine claim to the southeast, which is probably due to the existence of numerous ESE-WNW trending fault zones offering leaching waters pathways and allowing an extension of the subrosional front in that direction. The area where subrosion begins is located at elevations between 100 m to 150 m above sea level in the north and between 250 m and 300 m above sea level in the west and southwest of the project area. Only near Pöthen does the subrosion reach elevations of 20 m above sea level. With respect to the topographic surface, the subrosion reaches depths of 300 m in the north and 150 m in the west. 6.4 Hydrogeology Within the following sections, the hydrogeological conditions of the Küllstedt area are presented, first with a description of surface waters (Section 6.4.1), followed by a description of the underground conditions (Section 6.4.2). 6.4.1 Surface Waters The Unstrut River, with its upper reaches at the WNW margin of the Thüringer Becken and its source at Kefferhausen, is the largest waterway in the area, flowing through it in a southeastern direction. It is supplied by multiple tributary streams mainly coming from the west. At the northern border of the Küllstedt area close to the country town of Deuna, the freshwater reservoir Ahlenbach is located, which is supplied by the Ohne River. To the south, the Lutter River, flowing in southwestern direction at the country towns of Wachstedt and Küllstedt, and Luhne River, flowing in southeastern direction and joining at Mühlhausen with the Unstrut, are larger surface waters. Page 38 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 6.4.2 Groundwater Hydrogeologically, two different main groundwater storeys can be distinguished according to the volume and composition of the circulating water (Figure 4), which belong to the Zechstein and Buntsandstein (lower main groundwater level) and the Muschelkalk, Keuper and Quaternary (upper main groundwater level). The individual horizons of the first groundwater level allow the passage of highly mineralised waters along jointed areas in fracture zones (formations waters), but usually their volumes are small and their movement minimal. The second groundwater level comprises of horizons with good conductivity, like the highly karstified Mittlerer Muschelkalk (Anhydrit-Formation) and the overlying lower part of the HauptmuschelkalkFormation. The groundwater movement follows the dip of the individual horizons, especially along fault zones. The waters escape at some sources with high flow rates, mainly in the Mühlhausen area. Since water from these sources is used as potable water, the groundwaterbearing Muschelkalk in this area is well investigated. Page 39 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 Figure 4 Overview of the Lithostratigraphy Within the Investigation Area and Classification into Aquifers and Aquitards Page 40 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 6.5 Mineralisation Stratigraphically, the Kaliflöz Stassfurt (z2KSt) comprises sediments between the top of the Stassfurt-Steinsalz (z2NA) and the base of the Unterer Leineton (z3Ta). The stratigraphic subdivision is realised by the marker beds 1 to 19, whereby the first marker bed is equal to the base (Tinnes, 1928, /16/). Within the Kaliflöz Stassfurt (z2KSt), different evaporites occur, changing in their occurrence horizontally as well as vertically in the smallest of spaces (in the range of centimetres), with the fine Halite and clay layers usually being unaffected. Distinctive salt facies are not bound to certain stratigraphic horizons. In the potash seam, the following salt facies occur (Bartl et al., /1/; Seidel, 2003, /13/): § Carnallitite: the main mineral is Carnallite (KCl·MgCl2·6H2O), accompanied by Halite (NaCl) and Kieserite (MgSO4·H2O), subordinately also by Anhydrite (CaSO4), and rarely by clay and Boracite (Mg3B7O13Cl). Iron-bearing minerals (Hematite (Fe2O3) and rarely Goethite (Fe3+O(OH))) appear finely dispersed as red colour pigments. Under undisturbed conditions, the mineral composition is 56.9% Carnallite, 29.5% Halite, 10.7% Kieserite, 2.3% Anhydrite and 0.6% insolubles. Towards the top of the potash section, the amounts of Carnallite and Kieserite increase. Carnallitite occurs most often in terms of area, compared to other types of mineralisation in the potash seam, with the comparably lowest variability of all salt facies. However, the carnallitite has a lower percentage of K2O (around 10%),compared to the sylvinite. Furthermore, the original layering of the sediments is rarely preserved. More often, shatter structures are present. The rubble consists of Halite embedded in a Carnallite matrix. § Mixed salt: depending on the degree of influence by ascending brines on the original deposit, this salt facies is a mixture of minerals contained in the original carnallitite and its conversion product sylvinite with a very variable composition. The mixed salt facies was mined in the South Harz Potash District in the Bleicherode, Sollstedt and “Glückauf” Sondershausen Mines. § Sylvinite: The main mineral is Halite (NaCl), whereas Sylvite (KCl) is the main potassium-bearing mineral. Additionally, Polyhalite (K2SO4·MgSO4·2CaSO4·H2O), Langbeinite (K2SO4·2MgSO4), Kieserite (MgSO4·H2O), Kainite (KCl·MgSO4·3H2O), Anhydrite (CaSO4) and, to a lesser degree but more often than in the carnallitite, clay occur. Admixtures of Boracite (Mg3B7O13Cl) and Pyrite (FeS2) in small concentrations are also present. Sylvinite, which theoretically developed from the abovementioned carnallitite due to influence of ascending brines at 55°C, has a composition of 60.9% Halite, 19.2% Anhydrite, 18.4% Sylvite and 1.9% insoluble, amounting to a K2O content of 11.6%. If the Sylvite is restricted to the horizons overlying the 8th marker horizon, the Sylvite percentage increases to 23.2% and the Anhydrite percentage to 22.9% amounting to a K2O content of 14.7 %. Noteworthy is the zoning of sulphate minerals in the transition zone with carnallitite or barren zones. In the South Harz Potash District, this polysulphatic sylvinite is restricted to the s Pöthen, Volkenroda and Bischofferode Mines. Otherwise, almost only monosulphatic, so-called anhydritic sylvinite occurs, which surrounds the large barren zones of the potash district. Deposits of sylvinite are usually spatially linked to barren zones, arranged between these zones and carnallitite zones and there is generally a higher to very high variability in terms of the mineralogy. Like in the carnallitite, shatter structures are also known to exist in the sylvinite. § Glaseritic sylvinite: this salt facies is restricted to the southwestern parts of the South Harz Potash District, mainly in the Küllstedt-Mühlhausen area and parts of the Pöthen and Volkenroda mining sites, and is in its distinctive formation free of Sylvite. The main Page 41 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 potassium-bearing mineral is Glaserite (K3Na(SO4)2), whereas Halite (NaCl) is the main mineral. Additionally, zonally distributed Polyhalite (K2SO4·MgSO4·2CaSO4·H2O), Langbeinite (K2SO4·2MgSO4), Syngenite (CaSO4·K2SO4·H2O) and Görgeyite (K2SO4·5CaSO4·H2O) occur. § Barren zones: the main mineral is Halite (NaCl), often only accompanied by Anhydrite (CaSO4) and locally (Bischofferode) occurring Polyhalite (K2SO4·MgSO4·2CaSO4·H2O) and Kieserite (MgSO4·H2O). These zones comprise partly the complete profile of the potash seam, but can also only affect parts of it, either below, within or above the sylvinite in varying combination. Barren zones above the sylvinite are a common feature of the Kaliflöz Stassfurt (z2KSt). Within the Küllstedt area, predominantly carnallitite as potash ore has been encountered (cf Chapter 15), partly covered by sylvinite of small thicknesses. Only the Felsenfest 1 drill hole in the northern part has intersected a barren zone. The potash mineralisation within the Stassfurt-Steinsalz (z2NA) is continuous, layer-bound and has its onset already in the upper part of the Stassfurt-Steinsalz (z2NA) in the paleogeographically deepest part of the basin north of Mühlhausen as described previously (cf. Section 6.1). Like in the Kaliflöz Stassfurt (z2KSt), the potash mineralisation within the Stassfurt-Steinsalz (z2NA) occurs in form of the carnallitite and sylvinite as described above. However, the concentrations have not been proven to be commercially mineable so far. 6.5.1 Potash Distribution, Thickness and Grade The depth of the top of the Kaliflöz Stassfurt (z2KSt) is shown in APPENDIX 5 and its thickness and KCl grade distribution in APPENDIX 6 and APPENDIX 7 respectively. Interpretations are given in Chapter 15. 7 Deposit Type Based on the geological information available from the exploration activities, the potash deposit within the Küllstedt Exploration Licence Area can be characterised as follows: § The occurrence of potash salts is mainly related to the presence of the Kaliflöz Stassfurt (z2KSt). Locally, potash mineralisation also occurs within the Stassfurt-Steinsalz (z2NA). Nevertheless, no commercially mineable concentration within the StassfurtSteinsalz (z2NA) has been proven yet. § The potash minerals present in the deposit are Carnallite, Sylvite and Polyhalite. The additional exploitation of Halite could be possible. § The Sylvite is of secondary origin, which leads to the assumption that the primary carnallitite deposit has reacted with water (cf. Section 6.3.1). § For Carnallite and Polyhalite, a primary origin is assumed. Page 42 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 The presence of water in the carnallitite is caused by ascending brines from the foot wall (structurally controlled) and descending brines from the hanging wall (influence of sea water directly after deposition). Generally, the bedding of the deposit is slightly wavy with an even dip over large distances, however, with differences in areas with ESE-WNW trending fault zones, which are accompanied by a comparably high salt-tectonic deformation of the deposit 8 Recent Exploration Currently, there are no exploration activities in place in or adjacent to the Küllstedt Exploration Licence Area. 9 Data Verification As almost no core material and samples are left, so no verification of historical assays could be carried out. Geophysical drill hole logging is no longer possible as well, since all holes were grouted after all measurements were grouted. However, as mentioned in Chapter 2, the geologists in charge for the exploration work are considered trustworthy and their work is reliable. 9.1 Historical Data Planning, supervision as well as documentation and evaluation of the historical exploration were done according to standards defined by the state reserve commission or reported internal company guidelines. The same applies for categorisation of deposit types, resources and reserves (cf. Chapter 13). The interpretation of the historical drill hole data is, therefore, accepted as a reliable database for this Report. 10 Mineral Processing and Metallurgical Testing At the present stage, no test work programme is planned because no mining or processing concept has been selected yet. Page 43 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 11 Mining Concept For mining of the sylvinite (sylvinite)/carnallitite, proven mining technologies are available as the historical conventional mining in the northeastern part of the Küllstedt area shows. Since the project is at an initial stage, no mining method has been discussed at the moment. 12 Processing Concept Depending on the mining concept that will be detailed with further project development, several proven technologies are available for the processing of sylvinite and carnallite in the form of solid or brine feed to the processing plant. Furthermore, the development of a processing concept will depend on the product requirements. It is therefore recommended that viable processing options be verified during further project development. 13 Exploration Target Estimates The minerals Sylvite and Carnallite, encountered as sylvinite and carnallitite respectively, may potentially form the basis of an industrial mining of potash and processing to an MOP product. The experience of the successful potash mining industry in the South Harz Potash District shows that the exploitation of such a deposit is possible. The processing of such type of minerals is technically feasible as well. It is the opinion of the authors of this Report that the available data from the drilling and geophysical exploration work done during historical exploration (cf. Chapters 5, 8 and 9) are sufficient to confirm that the Küllstedt Exploration Licence Area contains substantial potash mineralisation within the Permian Stassfurt Formation. Based on the historical data available, the authors have prepared an estimate of Exploration Targets. These Exploration Targets are estimated in accordance with Section 17 of the JORC Code (2012, /9/): An Exploration Target is a statement or estimate of the exploration potential of a mineral deposit in a defined geological setting where the statement or estimate, quoted as a range of tonnes and a range of grade (or quality), relates to mineralisation for which there has been insufficient exploration to estimate a Mineral Resource. The potential quantity and grade of the Exploration Targets are conceptual in nature and currently, the partly insufficient exploration (only historical data, no original material available, no independent cross-check analyses) for the estimation of a Mineral Resource for the historical drill holes. Based on the current dataset, it is possible but uncertain that further exploration will result in the estimation of a Mineral Resource. Due to the limited access to potash exploration reports, a final evaluation of the historical data is not possible at the moment. However, since the authors of this Report are familiar with the working procedures of the former geologists, which were quality-checked by independent state Page 44 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 institutes, the available documents are considered a trustworthy basis for the estimation of Exploration Targets for the Küllstedt Exploration Licence Area. In estimating the Exploration Target tonnages, the following procedures were carried out (Exploration Targets are given as mineralisation in place): • Based on the available information, a geological model of the deposit was generated. The total volume of the potash seam was calculated to be 2.216 km³. • The volume calculated for the potash seam was multiplied with a tonnage factor depending on mineralisation (density). This average density may vary between 1.83 t/m3 and 2.32 t/m3. This amounts to a tonnage range of between 4,055 million metric tonnes and 5,141 million metric tonnes of mineralised rock. • The related tonnages of K2O were obtained by multiplying the tonnage of mineralized material with the corresponding K2O grade of the potash seam, which range from 7.2% to 25%. Accordingly, the minimum K2O tonnage is 292 million metric tonnes and the maximum K2O tonnage is 1,285 million metric tonnes. For the estimation, all historical drill holes, which occur within or near the Küllstedt Exploration Licence Area and which contain complete assaying data of the potash seam, have been used. No geological or technical cut-off values for thickness or grades have been applied. It is the opinion of the authors that, taking into account all the factors presented herein, the previously described potash seam can potentially be extracted by conventional underground or solution mining. The economic and technical viability are subject to further geological, geophysical, rock mechanical and engineering studies. 14 Adjacent Properties Adjacent to the Küllstedt Exploration Licence Area is the Mühlhausen-Nohra Mining Property, managed by the owner, BVVG Bodenverwertungs- und -verwaltungs GmbH (BVVG). It covers a total area of 141.6 km² and consists of the fields Küllstedt (47.98 km²) in the southeast, Keula (61.37 km²) in the northeast and Nohra-Elende (26.41 km²) in the distant northeast of the Küllstedt Exploration Licence Area. Currently, no mining or exploration activities are known. Other mining properties in the vicinity of the Küllstedt Exploration Licence Area are Volkenroda-Pöthen in the east and Bischofferode, Bleicherode, Sollstedt and Kehmstedt in the far north. 15 Interpretation and Conclusions The potash deposit in the Küllstedt Exploration Licence Area is distributed across almost the entire area with exclusions along a narrow seam with a width between 600 m and 1,000 m along its western border. Generally, the depth of the potash seam top increases from the north to the south, with values ranging between 120 m below sea level and 860 m below sea level (APPENDIX 5). Page 45 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 The thickness distribution is uneven, which may be a function of drillhole density and location. The distribution shows some high values northeast of Büttstedt (approx. 30.3 m) and west of Deuna (approx. 58 m) and some low values northeast of Eigenrode (1.5 m) and north of Küllstedt (approx. 1.7 m) (APPENDIX 6). Towards the west, the thickness decreases, while it increases towards the southeast. The average K2O grade distribution separates the Küllstedt Exploration Licence Area into two parts, with the northeastern part showing a more even distribution of comparably lower values (between 9.6% to 14% K2O) than the southwestern part with comparably higher values (approx. 18.3% K2O) (area between Helmsdorf and Büttstedt). However, for the southwestern part, only information from one drill hole (Kal Küllstedt 1/62) was used. In terms of the distribution of the salt mineralisation, a large part of the Küllstedt Exploration Licence Area is underlain by carnallitite, while other facies are restricted to the marginal parts of the area. Mixed salt (carnallitite + sylvinite) is restricted to a thin seam east of Horsmar, while sylvinite-dominated sylvinite runs along the southwestern border of the carnallitite extent between Bickenriede and Wachstedt as a 1.2 km to 1.5 km wide band. At Wachstedt, it bends over towards the southwest. North of Bickenriede, the sylvinite facies bends over to the north and enters the licence area again south of Helmsdorf and at Sollstedt. The rock salt facies is adjacent to the described sylvinite extent in the southwest and covers the southern border of the area between Küllstedt and the north of Oberdorla. The former exploration and mining activities in the Küllstedt Exploration Licence Area showed the potential for potash mining here. Based on historical data, mining is assumed to be economically feasible in the area, which is further supported by a well-developed infrastructure and the extensive experience of professionals, who have worked for decades in the South Harz Potash District and still live in the area. Furthermore, modern mining and processing techniques enable an increase in the potash yield from ore as potash-bearing minerals, which were waste material in the past, can be utilised nowadays. 16 Recommendations The analysis of the existing exploration work shows that parts of the Küllstedt Exploration Licence Area underwent intensive geological exploration in the past. The results of these drill holes are only available to the authors in a summarised form at present. Based on these data as well as the experience of the authors of this Report with the type of historical exploration carried out and their documentation, it can be justifiably assumed that an analysis of these detailed exploration reports could enable the estimation of Mineral Resources in accordance with the JORC Code (2012, /10/). The following recommendation is therefore made: (1) Application for permission to view and use the detailed historical exploration reports as well as carry out tests on the still existing sample material from these exploration drill holes. Based on the data that becomes available, the JORC Report should be updated. Independent of the results of (1), the estimation of Mineral Resources in the Indicated and Measured categories in accordance with the JORC Code (2012, /10/) requires additional exploration work to be carried out. Therefore, the following is also recommended: (2) The data from the historical drill holes should be checked via confirmation drilling in the Küllstedt Exploration Licence Area, which allows an extraction of cores from the potash section for detailed description and chemical assaying. Additionally, the confirmation Page 46 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 holes can be logged geophysically to cross-check the historical data and correlate the results with those of the chemical analyses. If the confirmation drilling shows promising results and the decision is made to start a mining operation, subsequent studies on environmental and social impacts have to be conducted prior to it, accompanied by hydrogeological drilling to obtain information on the groundwater-bearing layers above the deposit and below. Although this is not necessary in the immediate future, it should be taken into account for further planning. Page 47 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 REFERENCES /1/ Bartl, H., Döring, G., Hartung, K., Schilder, C., Slotta, R. (2003): Kali im Südharz-UnstrutRevier. - Deutsches Bergbau-Museum Bochum, Bochum, 444 Seiten. /2/ CIM (2010): CIM Standards on Mineral Resources and Reserves – Definitions and Guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum. 27 November 2010. /3/ Wetterdienst.de (2014): Klima - Station Mühlhausen/Thüringen-Görmar (190 m), 2014. http://www.wetterdienst.de/Deutschlandwetter/Muehlhausen_Thueringen/Klima/. Zugriff am 22. Januar 2015. /4/ Dockter, J. (1963): Erläuterungen zur Geologischen Spezialkarte der Deutschen Demokratischen Republik 1:25000 - Blatt Sondershausen, 4631. - Zentrales Geol. Institut, Jena. /5/ Dockter, J., Steinmüller, A. (1993): Erläuterungen zur geologischen Karte von Thüringen 1:25.000 - Blatt Nordhausen Süd, Nr. 4530. - Thüringer Landesanstalt für Bodenforschung, 2. Auflage, Weimar. /6/ Döhner, C. (1986): Lagerstättengeologische Arbeiten am Kernmaterial von OT-Bohrungen in der Kaliindustrie der DDR.- Neue Bergbautechnik, Bd. 16, H. 11, S. 409-411, Leipzig. /7/ Döhner; C. (2001): Regionale Aspekte der Entwicklung des Zechsteins 2 im SüdharzKalirevier. - In: Beiträge zur Geologie von Thüringen. Heft 8, Thüringischer Geologischer Verein e.V., S. 249-269, 2001, Jena. /8/ ERCOSPLAN (2014): Kali-Rohstoffe im Freistaat Thüringen - Bergbauhistorischer Abriss zu den Feldesteilen des Südharz-Unstrut-Kalireviers. - ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH, 65 Seiten, Erfurt, 2014. /9/ Gotte, W. (1981): Instruktion zur Anwendung der Klassifikation der Lagerstättenvorräte fester mineralischer Rohstoffe vom 28. August 1979 auf Kali- und Steinsalzlagerstätten (4. Kali-Instruktion).-Akademie-Verlag Berlin: Zeitschrift für angewandte Geologie. Berlin, November 1981, Heft 6, S. 287-293. /10/ JORC (2012): Australasian Code for Reporting of Mineral Resources and Ore Reserves – The JORC Code 2012 Edition.- The Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists and the Minerals Council of Australia. 20 December 2012. /11/ Raue (1970): Bergschadenkundliche Analyse - Schachtanlagen Hüpstedt Beberstedt. Felsenfest. - VEB Kombinat Kali, 15 pages, 15. Juni 1970, Sondershausen. /12/ Schröder, N.; Blümel, H. (1977): Vorläufige Richtlinie des VEB GFE Halle zur Durchführung und Auswertung von Kontrolluntersuchungen im Rahmen geologischer Such- und Erkundungsarbeiten auf feste mineralische Rohstoffe. – unpublished report of VEB Geol. Forsch. u. Erk. Halle, Halle. /13/ Seidel, G. (2003): Geologie von Thüringen.- E. Schweizbart’sche Verlagsbuchhandlung (Nägele u. Obermiller), Stuttgart, 601 Seiten. /14/ Stammberger, F. (1963): Instruktion zur Anwendung der Klassifikation der Lagerstättenvorräte fester mineralischer Rohstoffe auf Kali- und Steinsalzlagerstätten der DDR (3. KaliInstruktion vom 20.06.1963). - Akademie-Verlag Berlin: Zeitschrift für angewandte Geologie. Berlin, Oktober 1963, Heft 10, S. 527-531. /15/ Stolle, E., Döhner, C. (1970): Zur petrographischen Nomenklatur der Salzgesteine. – Ber. Deutsch. Ges. geol. Wiss., Geol. Paläont., Berlin 13 (1970) 4, S. 481-493. /16/ Tinnes, A. (1928): Die Ältere Salzfolge Mitteldeutschlands unter besonderer Berücksichtigung des Unstrutgebietes. - Arch. Lagerstättenforschung, Nr. 38, 55 Seiten. Page 48 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 /17/ VEB (1963): Bericht über die fazielle Ausbildung des Kaliflözes Staßfurt in Bohrungen. die im Jahre 1962 vom VEB Erdöl- und Erdgaserkundung Gotha gestoßen wurden. - VEB Geologische Erkundung West, BA Jena, Jena, 15. Mai 1963, 27 Anhänge, 15 Seiten. /18/ VEB (1966): Ergebnisbericht über die in den Jahren 1963-1965 im Objekt Kali ThüringenWest durchgeführten Bohrungen (Objekt Kali Thüringen-West. Sucharbeiten). – VVB Geologische Forschung und Erkundung, VEB Geologische Erkundung West, BA Jena, Jena, 10. Dezember 1966, 24 Anlagen, 19 Anhänge, 40 Seiten. /19/ VEB (1980): Ergebnisbericht mit Vorratsberechnung. Vorerkundung Kali Küllstedt. - VEB Geologische Forschung und Erkundung Freiberg, Jena, 15. August 1980, 140 Anhänge, 229 Seiten. /20/ VEB (1987): Ergebnisbericht mit Vorratsberechnung. Vorerkundung Kali Keula/Ebeleben (Teil Vorratsberechnung). - VEB Geologische Forschung und Erkundung Freiberg, Jena, 14. August 1987, 14 Anhänge, 58 Seiten. /21/ VVB (1963): Ergebnisbericht über die Kalisalzführung des Zechsteins im Südteil der DDR mit Berechnung prognostischer Vorräte. – Zentrales Geologisches Institut, Wissenschaftlich-Technisches Zentrum der VVB Feste Minerale Berlin, Berlin. 31. Dezember 1963, 86 Anhänge, 234 Seiten. /22/ VVB Feste Minerale (1964): Ergebnisbericht über die Kalisalzführung des Zechsteins im Südteil der DDR mit Berechnung prognostischer Vorräte.- VVB Feste Minerale, Berlin, 30. Juni 1964, 214 Seiten. Page 49 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 GLOSSARY Term Explanation 3. Kali-Instruktion Guideline for the classification of solid mineral resources of rock salt and potash deposits in the former German Democratic Republic (GDR). Released on 20 June 1963. English rd translation: 3 Potash Instruction Guideline. 4. Kali-Instruktion Revised version of the 3. Kali-Instruktion. Released on 17 th November 1981. English translation: 4 Potash Instruction Guideline. Anhydrite Sulphate-bearing mineral with the chemical formula CaSO4. Bemusterungsanweisung Instructions for correct sampling procedure in mines. English translation: sampling instructions. Bemusterungshauer Professionals working in mines, responsible for the correct sampling of rocks in mining drives. English translation: sampling faceworker. Bundesberggesetz Federal Mining Law of Germany, which covers the prospection and exploration as well as the mining of commodities and, furthermore, the closure of mines. The law was enacted on 13 August 1980 and came into force on 01 January 1982. Abbreviation: BBergG. English translation: Federal Mining Act. Carnallite Potassium-bearing mineral with the chemical formula KCl·MgCl2·6H2O. Carnallitite Potassium-bearing rock consisting mainly of the minerals Carnallite, Halite, Kieserite and Anhydrite. Eichsfeld-Schwelle Southern part of the uplifted area of the Eichsfeld-AltmarkSchwelle, which delimits the Thüringer Becken to the west. English translation: Eichsfeld swell. Evaporite horizons /section/formation All evaporite-bearing horizons of the Zechstein Cycles 1 to 4 (Werra Formation, Stassfurt Formation, Leine Formation, Aller Formation). Freistaat Thüringen One of the 16 states of Germany, located almost in the centre of the country. The total area is approx. 16,172 km², the capital is Erfurt.Approx. 2.2 million people live in the state. English translation: Federal State of Thuringia. Finne-Störung Actual name: Finne-Störungszone. This fault zone runs from the southeast to the northwest in the northeastern part of the Thüringer Becken. English translation: Finne fault (zone). Gesellschaft zur Verwahrung und Verwertung von stillgelegten Bergwerkbetrieben GmbH Company responsible for the decommissioning and closure of mines in the Federal States of Saxony and Thuringia and in the State of Saxony-Anhalt, which were closed between 1990 and 1991 due to economic reasons. Glaserite Potassium-bearing mineral with the chemical formula K3Na(SO4)2. Halite Chloride-bearing mineral with the chemical formula NaCl. Page 50 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 Term Explanation Harz Highlands covering the intersection point of the states of Lower Saxony, Saxony-Anhalt and Thuringia. Hermundurische Scholle Nappe structure in the northeast of the Thüringer Becken ranging from Gera in the south-southeast to Nordhausen in the northwest. To the southwest, it is delimited by the FinneStörung. English translation: Hermundurian nappe. Hessisches Bergland Highlands, mainly located in the State of Hesse and at the western margin of the Thüringer Becken. English translation: Hessian Mountains. Kainite Potassium-bearing mineral with the chemical formula KCl·MgSO4·3H2O. Kieserite Sulphate-bearing mineral with the chemical formula MgSO4·H2O. Küllstedt Exploration Licence Area Licence area held by EAST EXPLORATION. Its extent is defined by the official licence documents. Kupferschiefer Marine calcareous claystone of the Middle-European Upper Permian, locally enriched with sulphur-bearing copper, zinc and lead minerals. Langbeinite Potassium-bearing mineral with the chemical formula K2SO4·2MgSO4. Leinefelder Sattel Anticline structure in the WNW of the Thüringer Becken. English translation: Leinefeld anticline. Mühlhausen-Altengottern-Mulde Synclinal structure between Mühlhausen and Altengottern with a NW-SE trend. Objekt Kali Küllstedt Project defined by the VEB Kombinat Kali, for which exploration for potash in the area around Küllstedt was conducted between 1975 and 1978. Ohmgebirge-Grabenzone Graben system in the northwest of the Thüringer Becken with a NNE-SSW trend. Potash-bearing section, potash seam/section Part of the stratigraphical succession of the Zechstein in the South Harz Potash District, which contains the potassiumbearing minerals. The seam can range from the hanging wall rocks (Deckanhydrit and Decksteinsalz) of the actual potashbearing section, the Kaliflöz Stassfurt (z2KSt), to the upper parts of the Stassfurt-Steinsalz (z2NA) below the Kaliflöz Stassfurt (z2KSt). Equivalent names are potash horizon or potash deposit. Polyhalite Potassium-bearing mineral with the chemical formula K2SO4·MgSO4·2CaSO4·H2O. Preussisches Ministerium für Öffentliche Arbeit Ministry in the former Kingdom of Prussia responsible for development of the infrastructure. English translation: Prussian Ministry for Public Works. Schlotheimer Graben Graben structure at Schlotheim, which affected the parts of the Zechstein in the Pöthen Mine. South Harz Potash District Northern part of the Thüringer Becken where potash was explored and mined between 1888 and 1993. Page 51 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 Term Explanation Sylvinite Potassium-bearing rock consisting mainly of Sylvite and Halite. Subordinately, Polyhalite, Langbeinite, Kieserite, Kainite and Anhydrite may occur. Sylvite Potassium-bearing mineral with the chemical formula KCl. Thüringer Becken Geological structure in the central and northern part of the Federal State of Thuringia. It extends from the upper reaches of the Unstrut Rivier south of Dingelstädt to the lower reaches of the Ilm River at Bad Sulza in the WNW-ESE direction (approx. 90 km). In the NNE to SSW direction, it extends from break-through of the Wipper River south of Seegas to the inflow of the Gera River at Arnstadt (approx. 55 km). The total area is about 2,700 km². English translation: Thuringian Basin. Thüringer Landesbergamt Higher Federal State Authority, which is responsible for the execution of the mining law. English translation: Thuringian State Mining Authority. Thüringer Wald Highlands south of the Thüringer Becken. English translation: Thuringian Forest. Tonlöser Clay-rich intercalations in the evaporite sections that reduce the overall strength of the rock. Trümmercarnallitit Potassium-bearing rock with mainly brecciated Halite and Anhydrite embedded in a carnallitic matrix. English translation: shatter carnallitite. VEB Geophysik Actual name: VEB Kombinat Geophysik. The company was responsible for geophysical measurements, especially during exploration of commodities. VVB Kali Central administration responsible for the supervision of all potash-producing mines of the former GDR. The abbreviation VVB stands for Vereinigung Volkseigener Betriebe (union of publicly owned companies). VEB Kalibetrieb “Südharz” Part of the VEB Kombinat Kali responsible for the supervision of the Sondershausen, Rossleben, Sollstedt, Bleicherode, Bischofferode and Volkenroda Mines. VEB Kombinat Kali Successor of the VVB Kali, founded January 1 , 1970. The abbreviation VEB stands for Volkseigener Betrieb (publicly owned company). VEB Kombinat Kali, DB Forschung Department of the VEB Kombinat Kali responsible for research. The abbreviation DB stands for Direktionsbereich (department). Wippertal-Störungszone NW-SE trending fault zone in the northwest of the Thüringer Becken. English translation: Wippertal fault zone. st Page 52 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 LIST OF ABBREVIATIONS Abbreviations of physical units/constants used throughout this study are as follows: B boron Ca calcium CaSO4 calcium sulphate d day(s) E east ESE east-southeast Fe iron g/cm³ gram(s) per cubic centimetre H 2O water ha hectare(s) K potassium K 2O potassium oxide KCl potassium chloride km kilometre(s) km² square kilometre(s) km³ cubic kilometre(s) m metre(s) m² square metre(s) m³ cubic metre(s) Mg magnesium MgCl2 magnesium chloride MgSO4 magnesium sulphate mm millimetre Mt million metric tonnes NaCl sodium chloride NNE north-northeast NNW north-northwest NW northwest SE southeast SSW south-southwest t metric tonne t/m³ metric tonne(s) per cubic metre W west WNW west-northwestern Page 53 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx Küllstedt Exploration Licence Area, Thuringia, Germany EGB 12-043.N01 WSW west-southwest °C degree(s) Celsius % percent Page 54 of 54 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28, 99096 Erfurt, Germany Phone: + 49 361 3810 500 Fax: +49 361 3810 505 E-mail: mining@ercosplan.com Web: http://www.ercosplan.com projekte:@Projekte EGB aktuell:EGB_12-043_DS_PotashAssets_Germany:03proj_AUSLIEFERUNG:N01:JORC_Kuellstedt_final:12-043N01_JORC_Kuellstedt_2015-0331.docx ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH 4370000 4375000 4380000 4385000 4390000 4395000 4400000 4405000 4370000 4375000 4380000 4385000 4390000 4395000 4400000 4405000 e-mail: mining@ercosplan.com web: http://www.ercosplan.com 4410000 5690000 5685000 5680000 5680000 5685000 5690000 5695000 4365000 phone: +49 361 3810 500 fax: +49 361 3810 505 5695000 4360000 Arnstaedter Strasse 28 99096 Erfurt/Germany 5°E 10°E 15°E 5675000 5675000 55°N 50°N 5670000 5670000 50°N 10°E 4360000 15°E 4365000 4410000 JORC Küllstedt Licence Area Appendix 1 Topographic Map Showing Location and Available Infrastructure of the Küllstedt Exploration Licence Area Legend: Küllstedt Exploration Licence Area Scale: 0 1:100.000 2.500 5.000 m Coordinate System: DHDN 3 Degree Gauss Zone 4 Date: 2015/02/06 O:\@Projekte EGB aktuell\EGB_12-043_DS_PotashAssets_Germany\03proj_AUSLIEFERUNG\N01\ JORC_Kuellstedt_Draft_2015-02-09\EGB_12-043.N01_Appendix_1_topographicMap.pdf APPENDIX 2 C o p y of O ffici a l Lic e nc e D o c u me n t for K ül l s te dt Ex pl or ati o n Li ce n c e Are a Client: East Exploration Pty Ltd Level 2, 350 Little Collins Street Melbourne, Victoria 3000 Australia Bidder: ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28 99096 Erfurt Germany Project Reference: EGB 12-043.N01 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH Arnstaedter Strasse 28 99096 Erfurt Germany Tel.: +49 361 3810 500 Fax: +49 361 3810 505 E-Mail: mining@ercosplan.com Web: www.ercosplan.com Managing Director: Dr Henry Rauche ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH 4385000 4390000 e-mail: mining@ercosplan.com web: http://www.ercosplan.com 4400000 5700000 4380000 phone: +49 361 3810 500 fax: +49 361 3810 505 5700000 4375000 Arnstaedter Strasse 28 99096 Erfurt/Germany 4395000 Felsenfest 17 (Deutschland 25) Kal Neusollstedt 1 (Rehungen 1) Kal Felsenfest 9 (Deutschland 24) B 5695000 Kal Neusollstedt 7 Kal Felsenfest 10 (Deutschland 19) Gerterode 1/1961 Kal Vollenborn 1/1960 Kal Felsenfest 13 (Deutschland 21) Kal Felsenfest 12 (Deutschland 23) Kal Felsenfest 7 (Deutschland 16) Ca Hüpstedt 2/1963 C Kal Felsenfest 11 (Deutschland 20) Ca Zaunröden 08/1962 Kal Felsenfest 8 (Deutschland 18) 5690000 Kal Felsenfest 6 (Deutschland 15) Kal Schacht Hüpstedt Kal Schacht Felsenfest 1909/1 Kal Keula 6a/1978 Kal Keula 5/1977 5690000 5695000 Kal Felsenfest 1 Kal Felsenfest 5 (Deutschland 17) Kal Felsenfest 3/1906 E Keula 2/1961 E Sollstedt 1/1962 Kal Eigenrode 3/1977 Kal Keula 7/1982 Kal Beberstedt 1/1961 Kal Eigenrode 2/1976 Kal Küllstedt 2/1964 5685000 Kal Zella 1/1965 Windeberg 1/1975 Kal Kaisershagen 2/1975 Kal Kaisershagen 4/1977 E Küllstedt 1/1966 Kal Zella 3/1977 Kal Küllstedt 1/1962 Kal Zella 4/1978 Kal Eigenrode 1/1965 5685000 Kal Felsenfest 18 (Deutschland 22) Kal Wachstedt 1/1963 Kal Keula 6/1978 E Sollstedt 2/1962 Kal Schacht Beberstedt 1910 Windeberg 3/1983 Kal Horsmar 2/1975 Kal Windeberg 2/1975 Kal Bickenriede 1/1975 Kal Dachrieden 1/1975 Kal Horsmar 1/1961 Kal Bickenriede 2/1975 Kal Dachrieden 2/1975 5680000 5680000 Kal Lengefeld 2/1976 Kal Bickenriede 4/1976 Kal Bickenriede 3/1976 E Hainich-Eigenrieden 4/1962 E Hainich-Eigenrieden 2/1961 D Kal Hollenbach 3/1977 5675000 E Hainich-Eigenrieden 1/1961 5675000 A 5670000 5670000 Kb Mühlhausen 001 4375000 4380000 4385000 4390000 4395000 JORC Küllstedt Licence Area Legend: Appendix 3 Map of Available Drill Holes from Different Exploration Campaigns and Shaft Sinking Modelling Area Küllstedt Exploration Licence Area Location of Cross-Sections (Appendix 8) Existing Drill Holes With Potash Information 4400000 Scale: 0 1:75.000 2.500 5.000 m Without Potash Information Coordinate System: DHDN 3 Degree Gauss Zone 4 Date: 2015/02/06 O:\@Projekte EGB aktuell\EGB_12-043_DS_PotashAssets_Germany\03proj_AUSLIEFERUNG\N01\ JORC_Kuellstedt_Draft_2015-02-09\EGB 12-043.N01_Appendix_3_DrillHoleLocations.pdf APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Beberstedt Remark 1/1961 Easting Northing Elev. (MSL) 4388266.29 5685439.18 341.30 From To Thickness (m ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 45.00 45.00 45.00 101.00 56.00 101.00 210.00 109.00 0.00 210.00 364.00 154.00 364.00 514.00 150.00 514.00 831.00 317.00 0.00 831.00 835.90 4.90 835.90 836.00 0.10 836.00 847.00 11.00 0.00 0.00 847.00 881.00 34.00 881.00 907.00 26.00 0.00 907.00 915.60 8.60 915.60 916.00 0.40 0.00 916.00 939.80 23.80 939.80 961.20 21.40 961.20 965.50 4.30 0.00 0.00 z1CA z1T z1C c z2KSt Percentage [K2O%] 0.00 0.00 0.00 0.00 916.00 916.75 sylvinite, 0.75 depleted 6.70 916.75 927.50 10.75 carnallitite 11.50 Last updated: 09 February 2015 Page 1 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany E HainichEigenrieden Remark 2/1961 Easting Northing Elev. (MSL) 4380897.62 5678133.15 470.60 From To Thickness (m ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 108.50 108.50 0.00 108.50 248.00 139.50 248.00 391.00 143.00 391.00 718.00 327.00 0.00 0.00 718.00 719.50 1.50 719.50 726.50 7.00 726.50 728.50 2.00 728.50 730.00 1.50 730.00 767.50 37.50 767.50 803.00 35.50 803.00 806.00 3.00 806.00 809.50 3.50 0.00 0.00 0.00 809.50 833.00 23.50 833.00 838.00 5.00 838.00 878.00 40.00 878.00 882.48 4.48 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 811.80 813.40 1.60 10.00 813.40 814.40 1.00 6.00 814.40 816.00 1.60 9.00 816.00 818.20 2.20 6.00 818.20 822.20 4.00 8.50 Last updated: 09 February 2015 Page 2 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Eigenrode Remark 3/1977 Easting Northing Elev. (MSL) 4390358.47 5686170.63 370.00 From To Thickness (m ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 36.50 36.50 36.50 97.00 60.50 97.00 198.50 101.50 0.00 198.50 354.50 156.00 354.50 502.00 147.50 502.00 829.50 327.50 829.50 835.20 5.70 0.00 0.00 835.20 847.80 12.60 847.80 848.40 0.60 848.40 851.00 2.60 851.00 891.40 40.40 891.40 923.95 32.55 923.95 935.48 11.53 935.48 941.16 5.68 941.16 943.14 1.98 943.14 944.45 1.31 944.45 945.96 1.51 945.96 1008.00 62.04 0.00 0.00 0.00 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 944.45 Last updated: 09 February 2015 945.96 1.51 sylvinite ? Page 3 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany E Küllstedt Remark 1/1966 Easting Northing Elev. (MSL) 4384187.94 5684003.30 410.90 From To Thickness (m ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 56.00 56.00 56.00 93.00 37.00 93.00 193.00 100.00 0.00 193.00 446.65 253.65 446.65 484.00 37.35 484.00 802.00 318.00 802.00 816.20 14.20 0.00 816.20 816.40 0.20 816.40 821.80 5.40 821.80 822.20 0.40 822.20 823.40 1.20 823.40 840.00 16.60 840.00 873.75 33.75 873.75 875.90 2.15 875.90 879.25 3.35 879.25 880.55 1.30 880.55 880.80 0.25 880.80 888.25 7.45 888.25 906.00 17.75 Fault 0.00 0.00 z1CA z1T z1C c z2KSt Last updated: 09 February 2015 Percentage [K2O%] 0.00 0.00 0.00 0.00 Page 4 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Felsenfest Remark 1 Easting Northing Elev. (MSL) 4389830.13 5692703.37 294.00 From To Thickness (m ) 0.00 0.30 0.30 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.30 427.90 427.60 0.00 0.00 0.00 0.00 427.90 430.28 2.38 430.28 440.00 9.72 440.00 440.90 0.90 440.90 479.10 38.20 0.00 479.10 494.00 14.90 0.00 0.00 0.00 494.00 530.90 36.90 530.90 532.02 1.12 0.00 0.00 z1CA z1T z1C c z2KSt Last updated: 09 February 2015 Percentage [K2O%] 0.00 0.00 0.00 0.00 Page 5 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Felsenfest Remark 3/1906 Easting Northing Elev. (MSL) 4389921.62 5690047.33 477.00 From To Thickness (m ) 0.00 1.50 1.50 0.00 0.00 0.00 0.00 0.00 0.00 1.50 115.20 113.70 0.00 0.00 0.00 115.20 680.30 565.10 0.00 0.00 0.00 0.00 0.00 680.30 680.50 0.20 0.00 0.00 0.00 680.50 766.50 86.00 766.50 810.50 44.00 0.00 810.50 826.40 15.90 0.00 826.40 827.65 1.25 827.65 850.30 22.65 850.30 882.80 32.50 882.80 883.50 0.70 0.00 0.00 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 827.65 832.85 5.20 sylvinite 22.29 832.85 835.85 3.00 carnallitite 10.79 Last updated: 09 February 2015 Page 6 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Felsenfest 5 (Deutschlan Remark d 17) Easting Northing Elev. (MSL) 4388608.77 5689760.74 460.00 From To Thickness (m ) 0.00 0.30 0.30 0.00 0.00 0.00 0.00 0.00 0.00 0.30 103.00 102.70 0.00 0.00 0.00 103.00 699.50 596.50 0.00 0.00 0.00 0.00 0.00 699.50 699.95 0.45 0.00 0.00 0.00 699.95 771.75 71.80 771.75 812.25 40.50 0.00 812.25 821.65 9.40 0.00 0.00 821.65 832.53 10.88 832.53 853.50 20.97 0.00 0.00 0.00 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 821.65 Last updated: 09 February 2015 832.53 10.88 carnallitite Page 7 of 39 9.70 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Felsenfest 6 (Deutschlan Remark d 15) Easting Northing Elev. (MSL) 4390649.99 5691340.07 k.A. From To Thickness (m ) 0.00 15.00 15.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 15.00 519.00 504.00 519.00 528.50 9.50 0.00 0.00 0.00 0.00 0.00 0.00 528.50 566.00 37.50 0.00 566.00 576.20 10.20 0.00 0.00 576.20 584.30 8.10 584.30 619.25 34.95 619.25 620.55 1.30 620.55 625.00 4.45 0.00 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 576.20 Last updated: 09 February 2015 584.30 8.10 ? ? Page 8 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Felsenfest 7 (Deutschlan Remark d 16) Easting Northing Elev. (MSL) 4392950.02 5691520.09 354.00 From To Thickness (m ) 0.00 5.00 5.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.00 510.53 505.53 0.00 0.00 0.00 0.00 510.53 511.73 1.20 511.73 515.92 4.19 0.00 515.92 549.45 33.53 0.00 549.45 557.30 7.85 0.00 0.00 557.30 561.60 4.30 0.00 0.00 0.00 0.00 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 557.30 Last updated: 09 February 2015 561.60 potash 4.30 salts ? Page 9 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Felsenfest 8 (Deutschlan Remark d 18) Easting Northing Elev. (MSL) 4387583.64 5691614.26 360.00 From To Thickness (m ) 0.00 15.00 15.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 15.00 506.00 491.00 0.00 0.00 0.00 0.00 0.00 506.00 513.80 7.80 513.80 551.88 38.08 551.88 587.88 36.00 0.00 587.88 600.00 12.12 0.00 0.00 600.00 613.75 13.75 613.75 639.00 25.25 0.00 0.00 0.00 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 600.00 600.50 0.50 sylvinite 17.20 600.50 606.00 5.50 carnallitite 10.40 Last updated: 09 February 2015 Page 10 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Felsenfest 9 (Deutschlan Remark d 24) Easting Northing Elev. (MSL) 4390780.05 5692189.98 314.00 From To Thickness (m ) 0.00 0.50 0.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.50 461.28 460.78 0.00 0.00 0.00 0.00 0.00 0.00 0.00 461.28 499.50 38.22 0.00 499.50 511.13 11.63 0.00 0.00 511.13 519.60 8.47 519.60 522.10 2.50 0.00 0.00 0.00 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 511.13 Last updated: 09 February 2015 519.60 potash 8.47 salts ? Page 11 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany 10 (Deutschlan Remark d 19) Easting Northing Elev. (MSL) 4390700.06 5691370.05 366.00 From To Thickness (m ) 0.00 14.82 14.82 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 14.82 520.00 505.18 0.00 0.00 0.00 0.00 520.00 521.00 1.00 521.00 529.30 8.30 0.00 529.30 564.90 35.60 0.00 564.90 573.50 8.60 0.00 573.50 574.10 0.60 574.10 583.35 9.25 583.35 584.86 1.51 0.00 0.00 0.00 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 574.10 Last updated: 09 February 2015 583.35 probably sylvinite + 9.25 carnallitite Page 12 of 39 14.00 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany 11 (Deutschlan Remark d 20) Easting Northing Elev. (MSL) 4392969.99 5691470.03 356.00 From To Thickness (m ) 0.00 0.85 0.85 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.85 528.00 527.15 528.00 532.00 4.00 0.00 0.00 0.00 0.00 0.00 0.00 532.00 563.00 31.00 0.00 563.00 570.28 7.28 0.00 0.00 570.28 628.28 58.00 628.28 633.00 4.72 0.00 0.00 0.00 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 570.28 572.28 2.00 sylvinite 10.20 572.28 628.28 56.00 carnallitite 10.56 Last updated: 09 February 2015 Page 13 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany 12 (Deutschlan Remark d 23) Easting Northing Elev. (MSL) 4389415.44 5691619.38 352.00 From To Thickness (m ) 0.00 0.50 0.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.50 502.00 501.50 0.00 0.00 0.00 502.00 503.00 1.00 0.00 0.00 0.00 503.00 541.30 38.30 0.00 541.30 549.91 8.61 0.00 549.91 551.00 1.09 0.00 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt Last updated: 09 February 2015 Percentage [K2O%] 0.00 0.00 0.00 0.00 Page 14 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany 13 (Deutschlan Remark d 21) Easting Northing Elev. (MSL) 4389505.37 5691615.70 356.00 From To Thickness (m ) 0.00 3.05 3.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.05 502.00 498.95 0.00 0.00 0.00 0.00 0.00 0.00 0.00 502.00 536.50 34.50 0.00 536.50 544.75 8.25 544.75 546.51 1.76 546.51 548.91 2.40 548.91 570.41 21.50 570.41 606.67 36.26 606.67 615.55 8.88 615.55 645.00 29.45 0.00 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 548.91 Last updated: 09 February 2015 570.41 21.50 carnallitite Page 15 of 39 11.30 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany 17 (Deutschla Remark nd 25) Easting Northing Elev. (MSL) 4392550.1 5693540 335 From To Thickness (m ) 0.00 1.20 1.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.20 455.10 453.90 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 455.10 514.50 59.40 0.00 514.50 529.80 15.30 0.00 529.80 543.70 543.70 553.20 Percentage [K2O%] 13.90 9.50 0.00 0.00 0.00 z1CA z1T z1C c z2KSt Last updated: 09 February 2015 Page 16 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany 18 (Deutschla Remark nd 22) Easting Northing Elev. (MSL) 4391790.01 5689339.95 461.00 From To Thickness (m ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 94.27 94.27 0.00 0.00 0.00 94.27 702.30 608.03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 702.30 720.00 17.70 720.00 828.00 108.00 0.00 828.00 839.60 11.60 0.00 839.60 841.90 2.30 841.90 872.10 30.20 872.10 882.00 9.90 0.00 0.00 0.00 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 841.90 842.40 0.50 sylvinite 842.40 872.10 29.70 carnallitite Last updated: 09 February 2015 Page 17 of 39 10.24 APPENDIX 4 Geological Drill Hole Logs Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa Gerterode Remark 1/1961 Easting Northing Elev. (MSL) 4394910.6 5693901.9 307.4 From To Thickness (m ) 0.00 15.00 15.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 15.00 100.00 85.00 100.00 430.00 330.00 430.00 436.50 6.50 0.00 436.50 442.45 458.50 442.45 458.50 500.00 500.00 528.24 528.24 538.43 559.18 538.43 559.18 560.10 Percentage [K2O%] Dissolutio n residue Drill Hole Location JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany 16.05 41.50 0.00 28.24 0.00 0.00 10.19 20.75 0.92 0.00 0.00 z1CA z1T z1C c z2KSt Last updated: 09 February 2015 Page 18 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Kal Bickenriede Remark 1/1975 Easting Northing Elev. (MSL) 4384003.89 5682397.38 360.80 From To Thickness (m ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 39.00 39.00 39.00 86.00 47.00 86.00 183.00 97.00 0.00 183.00 332.00 149.00 332.00 470.00 138.00 470.00 800.00 330.00 800.00 805.00 5.00 0.00 0.00 805.00 811.50 6.50 811.50 812.00 0.50 812.00 812.80 0.80 812.80 861.40 48.60 861.40 892.00 30.60 892.00 894.20 2.20 894.20 898.95 4.75 898.95 899.50 0.55 899.50 900.75 1.25 900.75 901.24 0.49 901.24 948.09 46.85 948.09 951.04 2.95 0.00 0.00 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 900.75 901.24 0.49 sylvinite 901.24 902.84 1.60 hartsalz Last updated: 09 February 2015 Page 19 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Kal Bickenried Percentage Remark [K2O%] e 2/1975 Easting Northing Elev. (MSL) 4385911.48 5682052.17 304.50 From To Thickness (m ) 0.00 q 0.00 t 0.00 kr 0.00 j 0.00 k 0.00 0.00 0.00 m 0.00 43.00 43.00 mo 43.00 103.00 60.00 mm 103.00 200.50 97.50 mu 0.00 s 200.50 350.50 150.00 so 350.50 496.00 145.50 sm 496.00 826.00 330.00 su 826.00 832.00 6.00 0.00 z7-z4Tb 0.00 z4ANb 832.00 837.00 5.00 z4NA 837.00 837.50 0.50 z4ANa 837.50 839.00 1.50 z4Ta-z3Tb 839.00 870.60 31.60 z3NA 870.60 900.50 29.90 z3AN 900.50 903.20 2.70 z3CA 903.20 906.26 3.06 z3Ta-z2Tb 906.26 906.88 0.62 z2ANb 906.88 907.22 0.34 z2NAr 907.22 909.09 1.87 z2KSt 909.09 909.77 0.68 z2NA Fault z2ANa 0.00 z2CA 909.77 1036.75 126.98 z1ANc 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt z1NA z1ANa z1CA z1Ta 907.22 909.09 1.87 sylvinite 909.09 910.09 1.00 carnallitite Last updated: 09 February 2015 Page 20 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Kal Bickenriede Remark 4/1976 Easting Northing Elev. (MSL) 4383930.98 5680123.33 328.60 From To Thickness (m ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 55.00 55.00 55.00 121.50 66.50 121.50 221.00 99.50 0.00 221.00 341.50 120.50 341.50 495.00 153.50 495.00 824.00 329.00 824.00 831.00 7.00 0.00 0.00 831.00 835.10 4.10 835.10 835.90 0.80 835.90 836.50 0.60 836.50 854.50 18.00 854.50 890.57 36.07 890.57 893.15 2.58 893.15 902.12 8.97 902.12 903.34 1.22 0.00 903.34 905.11 1.77 905.11 930.70 25.59 930.70 933.71 3.01 0.00 0.00 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 903.34 Last updated: 09 February 2015 905.11 polyhalitehalitite to polyhalite1.77 Anhydrite Page 21 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Kal Eigenrode Remark 2/1976 Easting Northing Elev. (MSL) 4392619.06 5686039.86 427.40 From To Thickness (m ) 0.00 4.00 4.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4.00 13.00 9.00 13.00 78.50 65.50 78.50 178.00 99.50 0.00 178.00 338.00 160.00 338.00 491.00 153.00 491.00 823.50 332.50 823.50 829.50 6.00 0.00 0.00 829.50 840.00 10.50 840.00 840.50 0.50 840.50 844.50 4.00 844.50 905.30 60.80 905.30 946.84 41.54 946.84 949.07 2.23 949.07 956.28 7.21 956.28 957.60 1.32 957.60 958.55 0.95 958.55 964.35 5.80 964.35 990.78 26.43 990.78 994.45 3.67 0.00 0.00 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 958.55 959.15 0.60 sylvinite 959.15 962.08 2.93 carnallitite 962.08 964.35 2.27 carnallitite Last updated: 09 February 2015 Page 22 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Kal Horsmar Remark 1/1961 Easting Northing Elev. (MSL) 4387934.90 5682998.38 318.90 From To Thickness (m ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 12.50 12.50 0.00 12.50 65.00 52.50 65.00 225.00 160.00 225.00 376.00 395.00 376.00 395.00 843.00 843.00 849.70 850.00 863.70 866.20 868.50 916.00 849.70 850.00 863.70 866.20 868.50 916.00 953.50 953.50 962.00 962.00 963.00 963.00 979.15 997.00 979.15 997.00 1001.40 z1CA z1T z1C c z2KSt Percentage [K2O%] 0.00 151.00 19.00 448.00 0.00 6.70 0.30 13.70 2.50 2.30 47.50 37.50 0.00 8.50 1.00 0.00 16.15 17.85 4.40 0.00 0.00 0.00 0.00 0.00 0.00 963.00 964.15 rock salt, 1.15 kieseritic 964.15 969.20 5.05 sylvinite 14,8%; Langbeinite + Polyhalite: 10,6% 969.20 979.15 9.95 rock salt Sylvite: 7,7%; L Last updated: 09 February 2015 Page 23 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Kal Horsmar Remark 2/1975 Easting Northing Elev. (MSL) 4389821.61 5682887.63 301.40 From To Thickness (m ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 52.00 52.00 52.00 120.00 68.00 120.00 218.00 98.00 0.00 218.00 372.00 154.00 372.00 520.00 148.00 520.00 843.00 323.00 843.00 849.20 6.20 0.00 0.00 849.20 860.50 11.30 860.50 861.50 1.00 861.50 863.30 1.80 863.30 902.50 39.20 902.50 939.90 37.40 939.90 941.49 1.59 941.49 947.61 6.12 947.61 950.14 2.53 950.14 950.75 0.61 950.75 955.69 4.94 955.69 982.57 26.88 982.57 987.22 4.65 987.22 988.73 1.51 0.00 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt polyhaliticanhydritic sylvite1.33 halitite 950.75 952.08 952.08 955.69 955.69 958.89 958.89 959.76 3.61 carnallitite carnallitite, 3.20 depleted anhydriticsylvinitic 0.87 halitite 959.76 965.36 anhydritic 5.60 halitite Last updated: 09 February 2015 Page 24 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Kal Kaisershage Remark n 2/1975 Easting Northing Elev. (MSL) 4393876.85 5685066.06 404.90 From To Thickness (m ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 34.00 34.00 34.00 95.00 61.00 95.00 194.00 99.00 0.00 194.00 356.50 162.50 356.50 513.00 156.50 513.00 843.00 330.00 843.00 848.50 5.50 0.00 0.00 848.50 865.50 17.00 865.50 866.20 0.70 866.20 869.50 3.30 869.50 922.50 53.00 922.50 966.36 43.86 966.36 968.80 2.44 968.80 976.00 7.20 976.00 977.55 1.55 0.00 977.55 981.67 4.12 981.67 987.49 5.82 Fault 0.00 987.49 1210.47 222.98 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 977.55 981.67 impoverish ment Anhydrite4.12 halitite 985.06 987.49 2.43 carnallitite Last updated: 09 February 2015 Page 25 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Kal Kaisershage Remark n 4/1977 Easting Northing Elev. (MSL) 4395265.86 5685488.17 413.70 From To Thickness (m ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 32.00 32.00 32.00 90.00 58.00 90.00 190.00 100.00 0.00 190.00 332.00 142.00 332.00 497.00 165.00 497.00 825.10 328.10 825.10 830.50 5.40 0.00 0.00 830.50 846.77 16.27 846.77 848.00 1.23 848.00 849.54 1.54 849.54 888.85 39.31 888.85 929.23 40.38 929.23 931.01 1.78 931.01 942.10 11.09 942.10 943.52 1.42 943.52 949.60 6.08 949.60 955.50 5.90 955.50 994.33 38.83 994.33 995.88 1.55 0.00 0.00 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 949.60 949.81 0.21 sylvinite ? 949.81 952.30 2.49 carnallitite ? 952.30 955.50 3.20 carnallitite, d? 955.50 956.49 956.49 963.30 0.99 Halitite ? carnallitite, highly ? 6.81 depleted 963.30 964.19 964.19 965.45 965.45 966.37 966.37 974.49 974.49 974.67 Last updated: 09 February 2015 0.89 halitite carnallitite, 1.26 depleted 0.92 halitite Carnallite8.12 halitite 0.18 halitite ? ? ? ? ? Page 26 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Kal Keula Remark 7/1982 Easting Northing Elev. (MSL) 4395336.95 5686977.11 469.10 From To Thickness (m ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 59.50 59.50 59.50 155.00 95.50 0.00 155.00 285.00 130.00 285.00 437.60 152.60 437.60 767.50 329.90 767.50 773.50 6.00 0.00 773.50 773.60 0.10 773.60 782.00 8.40 782.00 783.30 1.30 783.30 789.50 6.20 789.50 875.00 85.50 875.00 914.50 39.50 914.50 916.16 1.66 916.16 921.31 5.15 921.31 922.30 0.99 922.30 923.38 1.08 923.38 926.26 2.88 926.26 947.26 21.00 947.26 948.26 1.00 0.00 0.00 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 923.38 923.60 Polyhalite0.22 halitite ? 923.60 925.96 2.36 sylvinite ? 925.96 926.26 0.30 halitite ? Last updated: 09 February 2015 Page 27 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Kal Küllstedt Remark 1/1962 Easting Northing Elev. (MSL) 4381685.34 5683696.03 398.00 From To Thickness (m ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 32.50 32.50 32.50 78.50 46.00 78.50 175.00 96.50 0.00 175.00 311.50 136.50 311.50 450.00 138.50 450.00 775.00 325.00 0.00 775.00 782.00 7.00 0.00 782.00 791.90 9.90 791.90 793.80 1.90 793.80 797.00 3.20 797.00 843.00 46.00 843.00 884.80 41.80 0.00 884.80 891.90 7.10 891.90 893.80 1.90 893.80 894.90 1.10 894.90 905.25 10.35 905.25 920.40 15.15 920.40 923.60 3.20 0.00 0.00 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 894.90 896.50 1.60 hartsalz 18.40 891.90 893.50 1.60 sylvinite 18.40 893.50 907.85 14.35 sylvinite 907.85 909.75 1.90 Anhydrite ? 909.75 910.85 910.85 912.45 1.10 sylvinite 1.60 sylvinite ? 912.45 920.90 8.45 rock salt ? Last updated: 09 February 2015 ? Page 28 of 39 18.40 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Kal Küllstedt Remark 2/1964 Easting Northing Elev. (MSL) 4379817.79 5684892.19 466.30 From To Thickness (m ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 31.00 31.00 31.00 78.00 47.00 78.00 183.50 105.50 0.00 183.50 329.50 146.00 329.50 469.00 139.50 469.00 801.00 332.00 0.00 801.00 807.00 6.00 0.00 807.00 822.50 15.50 822.50 823.00 0.50 823.00 826.50 3.50 826.50 878.50 52.00 878.50 912.50 34.00 0.00 912.50 920.70 8.20 920.70 922.80 2.10 922.80 923.20 0.40 923.20 928.30 5.10 928.30 950.70 22.40 950.70 953.90 3.20 0.00 0.00 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 924.50 1.30 rock salt Polyhalite percentage: 13.7 924.50 925.70 hartsalz, 1.20 depleted 8; Polyhalite percentage: 23.6 925.70 928.30 2.60 rock salt 923.20 Last updated: 09 February 2015 Page 29 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Kal Wachstedt Remark 1/1963 Easting Northing Elev. (MSL) 4377563.46 5685943.34 479.40 From To Thickness (m ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 141.00 141.00 141.00 251.00 387.00 251.00 387.00 717.20 717.20 722.55 722.60 722.55 722.60 801.80 801.80 844.00 844.00 853.40 857.10 860.25 868.60 898.40 853.40 857.10 860.25 868.60 898.40 901.40 z1CA z1T z1C c z2KSt Percentage [K2O%] 0.00 110.00 136.00 330.20 0.00 5.35 0.05 79.20 42.20 0.00 9.40 3.70 3.15 8.35 29.80 3.00 0.00 0.00 0.00 0.00 0.00 0.00 857.10 860.80 Anhydrite + 3.70 Polyhalite ? 860.80 863.95 3.15 rock salt Polyhalite: 30,8% 863.95 866.60 2.65 sylvinite 16; Polyhalite: 3 866.60 869.05 2.45 carnallitite 869.05 869.60 0.55 sylvinite Last updated: 09 February 2015 11.30 20,4; Polyhalite Page 30 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Kal Zella Remark 1/1965 Easting Northing Elev. (MSL) 4385883.65 5684206.72 370.00 From To Thickness (m ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 42.00 42.00 42.00 100.00 58.00 100.00 207.00 107.00 0.00 207.00 357.00 150.00 357.00 500.50 143.50 500.50 822.00 321.50 0.00 822.00 828.00 6.00 0.00 828.00 842.00 14.00 842.00 879.70 879.70 884.70 887.95 889.50 893.65 970.60 972.40 884.70 887.95 889.50 893.65 970.60 972.40 973.20 z1CA z1T z1C c z2KSt Percentage [K2O%] 37.70 0.00 5.00 3.25 1.55 4.15 76.95 1.80 0.80 0.00 0.00 0.00 0.00 0.00 889.50 892.10 2.60 sylvinite 892.10 893.65 1.55 rock salt 3,5 % e: 0,8 % Last updated: 09 February 2015 Page 31 of 39 25.70 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Kal Zella Remark 3/1977 Easting Northing Elev. (MSL) 4387108.27 5684430.49 285.70 From To Thickness (m ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 52.50 52.50 52.50 151.00 98.50 0.00 151.00 302.00 151.00 302.00 447.00 145.00 447.00 770.00 323.00 770.00 776.10 6.10 0.00 0.00 776.10 789.10 13.00 789.10 791.70 2.60 791.70 794.20 2.50 794.20 865.40 71.20 865.40 898.20 32.80 898.20 900.10 1.90 900.10 903.66 3.56 903.66 906.16 2.50 906.16 906.60 0.44 906.60 917.36 10.76 917.36 947.91 30.55 947.91 949.53 1.62 0.00 0.00 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 906.60 907.08 sylvinite, 0.48 depleted 907.08 915.65 8.57 carnallitite 915.65 915.90 0.25 sylvinite 915.90 917.36 Anhydrite1.46 halitite Last updated: 09 February 2015 Page 32 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Kal Zella Remark 4/1978 Easting Northing Elev. (MSL) 4386175.21 5682975.32 337.40 From To Thickness (m ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 48.00 48.00 48.00 115.00 67.00 115.00 212.00 97.00 0.00 212.00 363.00 151.00 363.00 508.00 145.00 508.00 829.40 321.40 829.40 835.60 6.20 0.00 0.00 835.60 843.30 7.70 843.30 844.10 0.80 844.10 846.10 2.00 846.10 884.80 38.70 884.80 909.70 24.90 909.70 910.70 1.00 910.70 915.50 4.80 915.50 916.70 1.20 916.70 924.66 953.43 924.66 953.43 955.30 z1CA z1T z1C c z2KSt Percentage [K2O%] 7.96 28.77 1.87 0.00 0.00 0.00 0.00 0.00 0.00 918.40 919.40 1.00 halitite ? 919.40 920.64 1.24 halitite ? 920.64 921.41 0.77 sylvinite ? 921.41 922.15 0.74 carnallitite ? 922.15 924.21 ? 924.21 924.66 2.06 sylvinite sylvinite, highly 0.45 depleted Last updated: 09 February 2015 ? Page 33 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Schacht Felsenfest Remark 1909/1 Easting Northing Elev. (MSL) 4389249.30 5690004.77 477.12 From To Thickness (m ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 82.50 82.50 0.00 0.00 0.00 82.50 695.00 612.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 695.00 779.00 84.00 779.00 823.00 44.00 0.00 823.00 835.00 12.00 0.00 0.00 835.00 848.00 13.00 848.00 869.50 21.50 0.00 0.00 0.00 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 835.00 Last updated: 09 February 2015 848.00 13.00 ? ? Page 34 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Schacht Remark Hüpstedt Easting Northing Elev. (MSL) 4390290.06 5689830.09 473.93 From To Thickness (m ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 69.00 69.00 0.00 0.00 0.00 69.00 688.32 619.32 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 688.32 691.32 3.00 691.32 780.76 89.44 780.76 831.64 50.88 0.00 831.64 842.00 10.36 0.00 842.00 844.00 2.00 844.00 860.00 16.00 860.00 880.00 20.00 0.00 0.00 0.00 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 844.00 Last updated: 09 February 2015 860.00 16.00 ? ? Page 35 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Schacht Beberstedt Remark 1910 Easting Northing Elev. (MSL) 4390363.00 5689788.00 474.15 From To Thickness (m ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 65.00 65.00 0.00 0.00 0.00 65.00 690.47 625.47 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 690.47 705.47 15.00 705.47 781.00 75.53 781.00 826.00 45.00 0.00 826.00 844.00 18.00 0.00 844.00 846.00 2.00 846.00 860.00 14.00 860.00 880.00 20.00 0.00 0.00 0.00 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 846.00 Last updated: 09 February 2015 860.00 14.00 ? ? Page 36 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany E Sollstedt Remark 1/1962 Easting Northing Elev. (MSL) 4394213.83 5687170.96 468.50 From To Thickness (m ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 54.00 54.00 54.00 160.00 106.00 0.00 160.00 287.00 127.00 287.00 440.00 153.00 440.00 769.50 329.50 0.00 0.00 769.50 771.00 1.50 771.00 783.00 12.00 783.00 786.00 3.00 786.00 829.00 862.00 829.00 862.00 872.00 43.00 33.00 10.00 872.00 874.00 874.00 938.00 942.00 1010.65 938.00 942.00 1010.65 1011.00 2.00 0.00 0.00 64.00 4.00 68.65 0.35 z1CA z1T z1C c z2KSt Last updated: 09 February 2015 Percentage [K2O%] 0.00 0.00 0.00 0.00 Page 37 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Sollstedt Remark 2/1962 Easting Northing Elev. (MSL) 4392032.53 5688907.17 450.30 From To Thickness (m ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 99.50 99.50 0.00 99.50 222.00 122.50 222.00 374.00 152.00 374.00 703.50 329.50 703.50 711.00 7.50 0.00 711.00 713.00 2.00 713.00 724.00 11.00 724.00 725.50 1.50 725.50 729.00 3.50 729.00 793.00 64.00 793.00 836.00 43.00 836.00 840.00 4.00 840.00 847.00 7.00 847.00 857.00 10.00 0.00 857.00 879.00 22.00 879.00 904.00 25.00 904.00 906.00 2.00 906.00 964.00 58.00 964.00 968.20 4.20 Percentage [K2O%] 0.00 0.00 0.00 0.00 z1CA z1T z1C c z2KSt 857.00 Last updated: 09 February 2015 879.00 probably 22.00 carnallitite Page 38 of 39 APPENDIX 4 Geological Drill Hole Logs Drill Hole Location Stratigraphy q t kr j k km ku m mo mm mu s so sm su z7-z5 z4Tb z4ANb z4NA z4ANa z4Ta-z3Tb z3NA z3AN z3CA z3Ta-z2Tb z2ANb z2NAr z2KSt z2NA z2ANa z2CA z1AN/z1ANa JORC REPORT Küllstedt Exploration Licence Area, Thuringia, Germany Vollenborn Remark 1/1960 Easting Northing Elev. (MSL) 4395973.40 5693237.60 361.01 From To Thickness (m ) 0.00 168.00 485.60 168.00 485.60 491.00 491.00 491.30 498.00 501.40 503.30 557.90 491.30 498.00 501.40 503.30 557.90 595.90 595.90 607.45 607.45 608.32 638.43 669.16 608.32 638.43 669.16 672.10 Percentage [K2O%] 168.00 317.60 5.40 0.00 0.30 6.70 3.40 1.90 54.60 38.00 0.00 11.55 0.00 0.87 30.11 30.73 2.94 0.00 0.00 z1CA z1T z1C c z2KSt Last updated: 09 February 2015 Page 39 of 39 ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH 4377500 4380000 4382500 4385000 4387500 4390000 e-mail: mining@ercosplan.com web: http://www.ercosplan.com 4400000 5697500 5695000 5695000 5697500 5700000 4375000 phone: +49 361 3810 500 fax: +49 361 3810 505 4395000 4397500 5700000 4372500 Arnstaedter Strasse 28 99096 Erfurt/Germany 4392500 5692500 -20 5692500 -100 m 0m 0m -20 5690000 5690000 -300 m 5687500 5687500 -400 m 5685000 m 5685000 -500 -3 5682500 m 5682500 00 5677500 5677500 5680000 m 5680000 -600 5675000 5672500 5670000 5667500 5667500 5670000 -900 m -800 m 5672500 -600 m 5675000 -700 m 0m -30 4372500 4375000 4377500 4380000 4382500 4385000 4387500 4390000 4392500 4395000 4397500 4400000 JORC Küllstedt Licence Area Legend: Modelling Area Depth Distribution of the Potash Seam (absolute in [m] related to sea level) Küllstedt Exploration Licence Area Existing Drill Holes With Potash Depth Information Without Potash Information Appendix 5 Isobath of the Top of the Potash-Bearing Horizon in the Küllstedt Exploration Licence Area and Main Potash Facies Distribution (According to Seidel, 2003) Facies Distribution of the Stratigraphic Potash Layer (Seidel 2003) Major Steps (100 m) Carnallitite Minor Steps (20 m) Rock Salt Sylvinite, Predominantly Sylvinite+Carnallitite Scale: 0 1:75.000 2.500 5.000 m Coordinate System: DHDN 3 Degree Gauss Zone 4 * -700 m means 700 m below sea level Date: 2015/04/02 O:\@Projekte EGB aktuell\EGB_12-043_DS_PotashAssets_Germany\03proj_AUSLIEFERUNG\N01\ JORC_Kuellstedt_Draft_2015-02-09\EGB 12-043.N01_Appendix_5_Isobath.pdf ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH 4377500 4380000 4382500 4385000 4387500 4390000 e-mail: mining@ercosplan.com web: http://www.ercosplan.com 4400000 5700000 4375000 phone: +49 361 3810 500 fax: +49 361 3810 505 4395000 4397500 5700000 4372500 Arnstaedter Strasse 28 99096 Erfurt/Germany 4392500 10,3 m 5697500 20 m 5697500 9,45 m 5695000 5695000 21,5 m 41 m 40 m 14 m 50 m 21,5 m 58 m 9,25 m 8,1 m 30 m 5692500 40 m 5692500 30 m 27,06 m m 20 5690000 5690000 15,8 m 22,65 m 10,88 m 8,69 m 30,2 m 22 m 3,25 m 10 m 0,89 m 5687500 5687500 10 m 3,29 m 1,51 m 14,67 m 11,5 m 24,89 m 9,36 m 5,82 m 1,7 m 32,3 m 10 9,3 m 2,6 m 5685000 5685000 15,65 m m 5,45 m 8,62 m 30 m 10 m 8,19 m 34,47 m 30,33 m 20 m 5682500 8,61 m 4,01 m 20 m 6,41 m 1,87 m 5682500 1,6 m m 10 22,84 m 13,76 m 15,59 m 7,39 m 5680000 5680000 1,77 m 12,8 m 12,75 m 15,13 m 18,3 m 15,58 m 5677500 5677500 20,28 m 19,05 m 5675000 5672500 5670000 5667500 5667500 5670000 5672500 5675000 20 m 4372500 4375000 4377500 4380000 4382500 4385000 4387500 4390000 4392500 Legend: Modelling Area 4395000 4397500 4400000 JORC Küllstedt Licence Area Appendix 6 Isopach Map for the Potash-Bearing Horizon in the Küllstedt Exploration Licence Area Isopachs of the Potash Seam Distribution of the Potash Seam Major Step (10 m) Küllstedt Exploration Licence Area Minor Step (2 m) Existing Drill Holes With Potash Thickness Information Scale: Without Potash Information 0 1:75.000 2.500 5.000 m Coordinate System: DHDN 3 Degree Gauss Zone 4 Date: 2015/02/06 O:\@Projekte EGB aktuell\EGB_12-043_DS_PotashAssets_Germany\03proj_AUSLIEFERUNG\N01\ JORC_Kuellstedt_Draft_2015-02-09\EGB 12-043.N01_Appendix_6_Isopach.pdf ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH 4377500 4380000 4382500 4385000 4387500 4390000 e-mail: mining@ercosplan.com web: http://www.ercosplan.com 4400000 5700000 4375000 phone: +49 361 3810 500 fax: +49 361 3810 505 4395000 4397500 5700000 4372500 Arnstaedter Strasse 28 99096 Erfurt/Germany 4392500 5697500 400 5695000 200 30 5695000 200 5697500 72,07 0 4 00 126,34 5692500 5692500 50 0 144,64 123,13 135,04 00 179,2 10 0 6 5690000 5690000 156,68 124,16 186,06 131,07 5687500 183,86 5687500 3 00 0 10 20 0 150,38 20 0 125,83 5685000 5685000 153,2 106,09 329,16 235,04 141,49 79,08 5682500 186,54 5682500 20 0 3 00 50 0 4 00 92,4 200 174,78 2 00 131,72 197,12 5680000 5680000 136,2 83,16 75,38 105,22 10 0 5677500 5677500 73,5 113,45 5675000 5672500 5670000 5667500 5667500 5670000 5672500 5675000 0 10 4372500 4375000 4377500 4380000 4382500 4385000 4387500 4390000 4392500 4395000 4397500 4400000 JORC Küllstedt Licence Area Appendix 7 K2O Isograde Map for the Potash-Bearing Horizon in the Küllstedt Exploration Licence Area Legend: Modelling Area Thickness x Grade Distribution of the Potash Seam Major Steps (100) Küllstedt Exploration Licence Area Minor Steps (20) Existing Drill Holes With Potash Grade and Thickness Information Without Potash Information Scale: 0 1:75.000 2.500 5.000 m Coordinate System: DHDN 3 Degree Gauss Zone 4 Date: 2015/02/06 O:\@Projekte EGB aktuell\EGB_12-043_DS_PotashAssets_Germany\03proj_AUSLIEFERUNG\N01\ JORC_Kuellstedt_Draft_2015-02-09\EGB_12-043.N01_Appendix_7_potashIsograde.pdf Arnstaedter Strasse 28 99096 Erfurt/Germany ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH A SSW Depth [m] 0 B NNE Cross-Section WNW-ESE 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 7500 8000 8500 9000 9500 10000 10500 11000 11500 12000 12500 13000 13500 14000 14500 15000 15500 16000 165000 17000 175000 18000 18500 19000 19500 20000 Depth [m] Ca Hüpstedt 2/1963 E Hainich-Eigenrieden 2/1961 400 e-mail: mining@ercosplan.com web: http://www.ercosplan.com phone: +49 361 3810 500 fax: +49 361 3810 505 Kal Bickenriede 1/1975 E Küllstedt 1/1966 Kal Felsenfest 8 (Deutschland 18) Kal Felsenfest 13 (Deutschland 21) Kal Felsenfest 12 (Deutschland 23) 400 Kal Felsenfest 1 200 200 0 0 -200 -200 -400 -400 -600 -600 -800 -800 -1000 -1000 Legend Oberer Muschelkalk Salt and Clay of the Aller Formation Staßfurtsteinsalz Mittlerer Muschelkalk Leinesteinsalz Basalanhydrit Unterer Muschelkalk Hauptanhydrit and Plattendolomit Hauptdolomit Oberer Buntsandstein Grauer Salzton Evaporites of the Werra Formation Mittlerer Buntsandstein Decksteinsalz Base Rock (Lower Permian and older) Unterer Buntsandstein Potash-Bearing Horizon (Kaliflöz Staßfurt and the Upper Part of the Staßfurtsteinsalz) Drill Holes JORC Küllstedt Licence Area APPENDIX 8.1 Geological Cross-Sections for the Küllstedt Exploration Licence Area SSW-NNE Direction Scale: 1:20,000 0 2,000 4,000 m Date: 2015/02/06 O:\@Projekte EGB aktuell\EGB_12-043_DS_PotashAssets_Germany\03proj_AUSLIEFERUNG\N01\ JORC_Kuellstedt_Draft_2015-02-09\EGB 12-043.N01_Appendix_8.1_SSW-NNE.pdf Arnstaedter Strasse 28 99096 Erfurt/Germany ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH C WNW Depth [m] 0 400 phone: +49 361 3810 500 fax: +49 361 3810 505 D ESE Cross-Section SSW-NNE 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 7500 8000 8500 9000 9500 10000 10500 e-mail: mining@ercosplan.com web: http://www.ercosplan.com 11000 11500 12000 12500 13000 Kal Zella 3/1977 13500 14000 14500 15000 15500 16000 165000 17000 175000 18000 18500 19000 19500 20000 Kal Horsmar 2/1975 E Mühlhausen 31/1962 E Mühlhausen 27/1960 20500 21000 21500 22000 E Mühlhausen E Mühlhausen 15/1958 16/1959 E Mühlhausen 08/1957 22500 23000 E Mühlhausen 14/1958 E Mühlhausen 21/1959 23500 24000 24500 25000 Depth [m] 25500 E Mühlhausen 12/1958 E Mühlhausen 04/1934 E Mühlhausen 22/1959 400 E Mühlhausen 03/1934 200 200 0 0 -200 -200 -400 -400 -600 -600 -800 -800 -1000 -1000 Legend Oberer Muschelkalk Salt and Clay of the Aller Formation Staßfurtsteinsalz Mittlerer Muschelkalk Leinesteinsalz Basalanhydrit Unterer Muschelkalk Hauptanhydrit and Plattendolomit Hauptdolomit Oberer Buntsandstein Grauer Salzton Evaporites of the Werra Formation Mittlerer Buntsandstein Decksteinsalz Base Rock (Lower Permian and older) Unterer Buntsandstein Potash-Bearing Horizon (Kaliflöz Staßfurt and the Upper Part of the Staßfurtsteinsalz) Drill Holes JORC Küllstedt Licence Area APPENDIX 8.2 Geological Cross-Sections for the Küllstedt Exploration Licence Area WNW-ESE Direction Scale: 1:20,000 0 2,000 4,000 m Date: 2015/02/06 O:\@Projekte EGB aktuell\EGB_12-043_DS_PotashAssets_Germany\03proj_AUSLIEFERUNG\N01\ JORC_Kuellstedt_Draft_2015-02-09\EGB 12-043.N01_Appendix_8.2_WNW-ESE.pdf ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH 4375000 4380000 4385000 4390000 4395000 4400000 4405000 4410000 4415000 4420000 4425000 4430000 4435000 4425000 4430000 4435000 e-mail: mining@ercosplan.com web: http://www.ercosplan.com 4440000 4445000 4440000 4445000 5710000 4370000 phone: +49 361 3810 500 fax: +49 361 3810 505 5710000 4365000 Arnstaedter Strasse 28 99096 Erfurt/Germany Kehmstedt-NW 5705000 5705000 Bischofferode-Nord Kehmstedt Bleicherode 5700000 5700000 Ohmgebirge 5695000 5695000 Sollstedt Sondershausen Im Helbetal 5690000 5690000 Mühlhausen-Nohra Küllstedt Am Filsberg 5685000 5685000 Am Hotzenberg 5680000 5680000 Volkenroda 5675000 5670000 5670000 5675000 Ebeleben 4365000 4370000 4375000 4380000 4385000 4390000 4395000 4400000 4405000 4410000 4415000 4420000 JORC Küllstedt Licence Area Appendix 9 Map of Properties Adjacent to the Küllstedt Exploration Licence Area Legend: Küllstedt Exploration Licence Area Adjacent Properties Scale: 0 1:150.000 5.000 10.000 m Coordinate System: DHDN 3 Degree Gauss Zone 4 Date: 2015/02/06 O:\@Projekte EGB aktuell\EGB_12-043_DS_PotashAssets_Germany\03proj_AUSLIEFERUNG\N01\ JORC_Kuellstedt_Draft_2015-02-09\EGB 12-043.N01_Appendix_9_adjacentProperties.pdf
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