Kalium Lakes Limited provided an update with respect to its operational activities at the Beyondie SOP Project (Beyondie or BSOPP). Borefield & Trenching Operations and Brine Production: Recent actions taken to optimise brine production levels have delivered significant positive impacts. De-silting works at 10 Mile and Sunshine are progressing well, with flow rates from trenches at 10 Mile now restored to design targets.

Work at Sunshine continues with flow rates improving and target levels expected to be fully restored during the current quarter. A third amphibious excavator has also been added to the trench fleet and additional routine trench maintenance programs implemented. Bore pump station availability at both 10 Mile and Sunshine is improving through upgrading monitoring and maintenance programs, including the introduction of a telemetry system to improve response times to pumping system breakdowns.

As a result of these combined measures, the aggregate brine flow rate from the borefield and trenching operations to the pre-concentration ponds has now been restored to near the 90Ktpa SOP target level. In addition, the 120Ktpa expansion drilling program has commenced and twenty-five new production bores are planned to be progressively brought online during the next 12 months. There are currently twenty bores at 10 Mile and Sunshine.

Aggregate brine supply continues to deliver potassium grades above design targets, partially offsetting some of the impact from previous lower flow rates. Purification Plant and SOP Production: Following the commissioning challenges faced due to initial variability in potassium salt feed grades, further review and consultation has confirmed that a consistently higher-grade potassium salt feed supply (higher than for normal operations) is required during commissioning. This improved salt feed is expected to enable the schoenite conversion, flotation, cooling crystallisation, centrifuges and fluid bed dryer to be commissioned at nameplate capacity.

The requirement for individual sections in the SOP purification plant to be commissioned on a staged basis over an extended timeframe led to there being insufficient residual higher grade potassium salt feed available on the ROM stockpile to successfully complete commissioning and achieve continuous operation of the plant. The rectification works identified as being beneficial to successful commissioning of the SOP purification plant are underway, with the plant being idled while this work is undertaken and pending harvest of further high-grade potassium salts. The plant rectification works are scheduled to be completed during March.

Kalium Lakes continues to be supported, both on site and remotely by its German partners, EBTEC Gbr, through its leading SOP production technical expertise. It should be noted that the ability of EBTEC to facilitate the arrival of additional specialist personnel to the Beyondie site does remain constrained by ongoing Western Australian border restrictions. The systematic recommencement of SOP purification plant operations as part of the commissioning process is being jointly planned by the Kalium Lakes and EBTEC teams in conjunction with international experts with SOP processing operations experience.

Full nameplate operation of the plant is expected to be achieved in accordance with the performance guarantees provided by EBTEC. Updated Ramp-Up and Production Schedule: Following completion of the rectification works and harvesting of sufficient high grade potassium salt supply, Kalium Lakes plans to continue with commissioning of the SOP purification plant. Commissioning of the compaction plant is expected to follow immediately after successful commissioning of the purification plant.

As previously announced, the current overall commissioning and ramp-up position of the BSOPP is expected to have an impact on the targeted timeframes for achieving nameplate production rates. The Company expects to provide a revised Beyondie ramp-up schedule and production profile following completion of the current comprehensive review process, scheduled for late February 2022. Forecast long term SOP output levels are not expected to be impacted.