Intrepid Potash : 2024 Sustainability Report

Intrepid Potash

2024 Sustainability Report

2024 Sustainability Report | Published July 1st, 2024

NYSE: IPI | intrepidpotash.com

Letter to Our Stakeholders

As Intrepid celebrates over two decades of operations, we reflect and reaffirm our commitment to sustainable mining practices, which has allowed us to supply environmentally friendly, high- quality fertilizer products and grow alongside our communities that value environmental stewardship as much as we do. As we look ahead, we remain dedicated to supplying the U.S. with sustainably produced muriate of potash ("potash" or "potassium chloride") and pursuing our Environmental, Social, and Governance ("ESG") initiatives.

After publishing our Inaugural Sustainability Report in 2023, we are excited to release this year's report. This year's report includes data and information regarding our Scope 1 and Scope 2 emissions. Our commitment to sustainable operations, specifically our use of the sun's energy to produce potash, reduces our emissions, as reflected in our emissions profile.

Our primary focus over the past two years has been to successfully revitalize our potash assets which will have two key impacts. First, our unit economics and financial performance will improve with higher potash production. Second, producing more tons with an estimated minimal corresponding increase in our variable emissions will have the added benefit of improving our emissions intensity. In other words, our emissions per ton of fertilizer produced should begin to improve in the coming years.

Finally, the Board of Directors and management team want to acknowledge our dedicated team of employees for their hard work as we have brought several new projects online over the past two years and thank them for upholding our core values and strong culture of safety. We look forward to continuing our strong operational performance and thank all of our stakeholders for their many years of support.

Matthew Preston

Chief Financial Officer & Acting Principal Executive Officer

Barth Whitham

Lead Independent Director & Acting Chairman of the Board

William Zisch

Director & Environmental, Health, Safety, and Sustainability Committee Chair

2024 Sustainability Report

Table of Contents

1| Company Overview & Sustainability Strategy		Slide 04
Company Overview	05
Introduction to Intrepid	06
Mission & Values	07
Commitment to Sustainability	08
Supporting the Sustainable Development Goals ("SDGs"): Six
Most Relevant to Intrepid	09
Aligning with the TCFD Framework	10-12

2 | Environmental	Slide 13
Environmental Strategy	14
Quality Management	15
Monitoring Environmental Impacts	16
Emissions Management	17-18
Water Management	19-20
Waste Management	21

3 | Social	Slide 22
Health & Safety	23
Human Capital Management	24
Safety Awards & Accomplishments	25
Diversity, Equity, & Inclusion	26
Human & Animal Rights	27
Community Involvement	28
Stakeholder Engagement	29

4 | Governance		Slide 30
Board Overview & Board Committees			31-32
Executive Compensation	33
Code of Business Conduct & Ethics	34
Legal Compliance	34
Anti-Corruption & Anti-Bribery	35
Whistleblower Protection	35
Enterprise Risk Management	36
Cybersecurity	36
5 | Appendix		Slide 37
KPI - Human Capital	38
KPI - Human Capital & Board Composition			39
KPI - Water & Waste	40
KPI - Emissions	41-42
Moab Solar Evaporation Example	43
Forward-Looking Statements	44

2024 Sustainability Report

1 | Company Overview & Sustainability Strategy

2024 Sustainability Report

Company Overview & Sustainability Strategy Environmental Social Governance Appendix

4

Company Overview

IPI Was Founded with the Goal of Consolidating the U.S. Muriate of Potash Industry

Key Assets

Wendover, UT Solar Brine Recovery Mine

• Acquired in 2004; potash is primarily produced from naturally occurring brines sourced from a shallow aquifer and deep-brine wells; the brine is sequenced through a large-scale ditch and pond system before harvest and production

Moab, UT Solar Solution Mine

• Acquired in 1999; solution mining occurs in two beds, Potash Bed 5 (original mine workings) and Bed 9 (horizontally drilled caverns)

Corporate Profile (as of 6/28/2024)

Key Highlights

• Corporate HQ: Denver, CO	• Market Cap: $301.7mm
• Ticker: IPI (NYSE)	• Net Debt: ($51.7mm)
• Shares Outstanding: 12.9mm	• Enterprise Value: $250.0mm
Business Segments

Carlsbad, NM HB Solar Solution Mine &

Conventional East Trio® Underground Mine

• Acquired in 2004; potash is produced from the HB solar solution mine by flooding original mine workings; Trio® is produced from a conventional underground mine

Intrepid South in Eddy & Lea Counties, NM

• Acquired in 2019; key products are water/brine sales and surface use agreements

IPI Annual Historical Potash Production

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Introduction to Intrepid

Business Overview

Our Business

Intrepid Potash ("Intrepid," "the Company," "IPI," "we," and "our") is a United States-based, publicly traded, diversified minerals company headquartered in Denver, Colorado. We operate in three business segments: potash, Trio®, and oilfield solutions. We are currently the only producer of muriate of potash (referred to herein throughout as

"potash" or "potassium chloride") in the United

States. We produce our potash from solar solution mining, whereby extracted brine is pumped to solar ponds to precipitate potash and other minerals.

Potash is applied as an essential nutrient for healthy crop development, used in animal feed, and utilized in several other industrial applications. Intrepid also produces a specialty fertilizer, Trio®, which delivers three key nutrients - potassium, magnesium, and sulfate - in a single particle. Our oilfield solutions segment primarily supports oilfield activity in the Permian Basin, with this segment's revenues being derived primarily from water sales, brine sales, and surface use agreements.

The Solar Solution Mining Advantage

A focus on sustainability has always been a cornerstone of our business practices and strategy. We utilize the sun's natural energy to evaporate water from our solar evaporation ponds, removing the need for mechanical evaporation. By using the sun's energy instead of natural gas, we lower our energy consumption which helps improve our greenhouse gas emissions profile. In 2023, potash comprised approximately 47% of our total sales, with all of our potash production coming from sustainable solar evaporation. Unlike traditional mining, which often involves extensive excavation and disruption of the surface environment, solar solution mining helps minimize surface disturbances, habitat loss, and offers safety benefits. Moreover, solution mining produces less waste as most of the insoluble minerals are left in the ground, which also has the added benefit of less ground subsidence per ton of potash recovered.

Organic & Safe Feed/Safe Food

Intrepid is a longtime advocate for producing a product that can be used in organic farming and Safe Feed/Safe Food applications (please see Slide 15).

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Mission & Values

Intrepid's Mission & Core Values

Our Mission

Our mission is to provide consistent returns to shareholders, remain a responsible corporate citizen, promote the welfare of our employees, and support the communities in which we operate. We aspire to realize our mission by relentlessly pursuing operational excellence, making strategic capital investments, and offering

exceptional, high-quality products that meet and exceed our customers' expectations.

Providing High-Quality,Sustainably-Produced Products to Three Key Sectors

Agriculture		Animal Feed		Industrial

Core Values

1.	Safety in all that we do - both at work and
	at home
2.	Leadership excellence
3.	Integrity, honesty, and transparency in all our
	actions
4.	Professionalism and passion in the
	performance of our jobs
5.	Quality demonstrated in our work
6.	Accountability and responsibility for our
	actions with our shareholders, employees,
	customers, and all other stakeholders
7.	Stewardship modeled through the

Intrepid is the only producer in the United States dedicated solely to potash and sulfate of potash magnesia (Trio®) fertilizers.

Ideal for livestock and pet food, Intrepid produces feed-grade quality potash, Trio®, and salt.

Intrepid sells potassium, salt, brine, magnesium chloride, and water for operations in the oil and gas industry and numerous other industrial applications.

	management of our assets, our
	environment, and our communities
8.	Continuous improvement through teamwork
	and innovation

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Commitment to Sustainability

Solar Solution Mining is One of the Most Environmentally Friendly Mining Methods

Using the Sun's Energy

Our commitment to sustainability starts with our solar solution potash mining assets in Carlsbad, New Mexico; Moab, Utah; and Wendover, Utah. After going through the process of brine injection, allowing for sufficient residence time, and brine extraction to our solar ponds, we use the sun's energy to evaporate the water and precipitate our potash and other minerals, which saves a significant amount of energy.

For example, to evaporate approximately 430mm gallons of brine (an average amount of annual evaporation at Moab's solar ponds), we estimate that we would need to use approximately 4.6mm MMBtus (million British thermal units) of natural gas. Using this amount of energy would translate to approximately 242 thousand metric tons of CO2e, which corresponds to the annual energy use of approximately 32 thousand homes.

(Please see Slide 43 for the full analysis and calculation table for these figures.)

Increased Safety

Solar solution mining has enhanced safety benefits compared to traditional mining methods. It minimizes the risk of accidents and health hazards associated with underground mining operations, such as rock falls, cave-ins, or long-term inhalation of dust particles. Since the extraction process is primarily conducted through boreholes that inject brine to dissolve minerals, it eliminates the need for explosive blasting and the associated heavy machinery. Moreover, the absence of large-scale excavation means there is less disruption to ecosystems and a reduced risk of soil contamination.

Additional Benefits

Compared to conventional mining, solution mining provides access to potash reserves that may have been stranded and produces less waste as most of the insoluble minerals are left in the ground, which has the added benefit of less ground subsidence per ton of potash recovered.

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Supporting the Sustainable Development Goals ("SDGs"):

Six Most Relevant to Intrepid

Good Health & Well-Being

We believe that our employees should have the resources necessary to stay healthy. We offer our employees competitive wages and benefits and provide our employees and their families with a comprehensive benefits package that includes health insurance, employee assistance programs, company-paid life and short-term disability insurance, and a retirement savings plan.

Affordable & Clean Energy

We recognize that companies must find ways to integrate

sustainable and renewable energy sources into their operations. Our solar solution operations rely on evaporation, thereby reducing the reliance on traditional energy sources.

Quality Education

We believe that all our employees should have the opportunity to develop and grow in their careers. We offer financial support to employees who pursue ongoing learning and continuing education programs through tuition reimbursement. We developed a Career Path Program to encourage employees to progress their careers at Intrepid.

Clean Water & Sanitation

We take water conservation efforts seriously and strive to conserve water use throughout our operations and use non- potable, brackish water when possible. Additionally, we employ robust environmental management measures that help ensure there are no discharges of contaminants into water resources.

Sustainable Cities & Communities

We are highly engaged with the communities in which we

operate. For example, since 2004 we have partnered with the United Way of Carlsbad and South Eddy County. In 2022, we also partnered with the State of New Mexico's Public Education Department and other local organizations in Carlsbad, New Mexico, and developed an after-school program to provide children with educational and nutritional support (see Slide 28).

Responsible Consumption & Production

We strive to incorporate sustainable consumption and production methods into our everyday operations. Our potash mines are solar solution mines that rely on solar energy and a dry climate to evaporate the water in our ponds leaving behind potash, salt, and other byproducts, like magnesium chloride.

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Aligning with the TCFD Framework

Governance

Core Elements of the Task Force on Climate-Related Financial Disclosures ("TCFD")

Strategy

Risk

Management

Metrics and Targets

Governance

Our approach to governance for climate-related risks and opportunities is rooted in strong leadership and accountability. The executive management team and Board of Directors ("Board") oversee our annual sustainability reports and overall Environmental, Social, and Governance

("ESG") strategy. In 2022, we established the Environmental, Health, Safety, and Sustainability ("EHSS") Committee.

The EHSS Committee is tasked with overseeing, reviewing, and making recommendations to the management team regarding Intrepid's policies, performance, and reporting on environmental, health, safety, sustainability, and social responsibility matters. The EHSS committee is responsible for conducting an annual review of Intrepid's performance on EHSS.

Strategy

We recognize the critical impact that climate change has on Intrepid's long-term strategy. Our strategic planning includes analysis of climate- related risks and opportunities, ensuring resilience in various climate-related scenarios, including a low-carbon economy. Last year, we started utilizing the recommendations of the TCFD framework to guide our climate-related reporting and this report helps expand our evaluation of these risks.

In this year's report, our new key focus is including

our Scope 1 and Scope 2 emissions for 2021 through 2023. We also include our emissions reductions goals and targets (see Slides 17-18 for details). By factoring in transition and physical aspects of climate risks, we are able to ensure our business model continues to have a focus on sustainable operations. We plan to continually assess and adjust our strategies to align with evolving climate legislation, science, and policy landscapes.

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