South Harz Potash Limited advised of the updated Mineral Resource estimate for the Ohmgebirge deposit at its South Harz Potash Project in Thuringia, Germany. This update incorporates the results of the recently completed twin-hole confirmatory diamond drilling program undertaken at Ohmgebirge. The updated JORC (2012) Mineral Resource estimate for Ohmgebirge contains 338 Mt at 12.9% potassium oxide (K2O) for approximately 44Mt contained K2O.

This estimate comprises 290 Mt of Sylvinite at 13.5% K2O (split approximately 89% Indicated and 11% Inferred) and 48 Mt of Carnallite at 9.8% K2O (100% Inferred). Sampling and Database In 2022 core logging and sampling for the two new drillholes was conducted according to ISO standards: DIN EN ISO 14688-1; DIN EN ISO 14688-2; DIN EN ISO 14689-1 and DIN EN ISO 22475-1. Core samples were geologically logged in detail. Information recorded on the drill hole logs included lithological depths, lithological description, stratigraphic interpretation, structural measurements and colour.

Photographs were taken of all rock chips and core samples, including backlit core photography. During the historical campaigns core samples were geologically logged in detail and both full and summary drill hole logs were produced in both written and graphical format. Full drill hole logs included a detailed lithological description of the entire drill hole, which was also summarised and graphically portrayed alongside the downhole geophysical logging and assay results.

Logs are available for 27 historical drill holes whilst information regarding mineralogy and stratigraphy were extracted from historical maps for 14 historical drill holes. The Ohmgebirge mining licence is located in the Südharz (South Harz) Potash District in the north-western extent of the Thuringian sedimentary basin, which has been separated by the uplift of the northerly Harz Mountains from the South Permian Basin (SPB). The regional stratigraphy of the South Permian Basin is fairly well understood with a pre-Variscan basement (Upper Carboniferous and older rocks) and a transition horizon of Upper Carboniferous to Lower Permian lying beneath an expansive sequence of evaporite rocks of the Upper Permian succession.

These evaporite deposits are assigned to the Zechstein Group, and host the target potash mineralisation of the South Harz Potash District which occurs on the Ohmgebirge mining licence. The potash-bearing target Zechstein Group consists of seven depositional cycles with the potash mineralisation of the South Harz Potash District hosted within the second cycle, the Staßfurt Formation (Z2). The Z2 is further sub-divided into horizons, of which the Kaliflöz Staßfurt (z2KSt) hosts potentially economic potash.

Mineralised z2KSt occurs across almost the whole of the Ohmgebirge mining licence, with an area to the west that is barren. The z2KSt is present in 39 drill holes used in the 2022 Ohmgebirge model, 2 of which did not return K2O grades and 15 of which exist within the licence area. The mineralogy on Ohmgebirge is dominated by sylvite with carnallite intersected in only one hole within the licence area.

The sylvite rich seam was modelled as one horizon, and was historical known as Hartsalz, and the carnallite seam was modelled separately. A major graben has been historically mapped within the Ohmgebirge mining licence trending NNE-SSW with offsets of 150-250m. The results of the graben have been logged in the downhole geophysical logs of drill holes on Ohmgebirge with noted steeper bedding, dipping joints and deformation in the strata accompanied by gases.

In the centre of the graben the Leine-Steinsalz through to the Aller-Steinsalz units have thickened whilst the rock salt units have thinned resulting in a weakened hanging-wall. No evidence of displacement in the z2KSt unit have been modelled. The geological model was constrained by grade >5% K2O and then the mineralogical data was used to split this into the Sylvinite and Carnallitite seams. A minimum cut-off grade of 5% K2O was used as this is considered economic.

The seam thickness is >1.5 m across Ohmgebirge and is considered amenable to potential mining underground and is therefore suitable for reporting resources. The average maximum mining height for underground potash in the South Harz region is ±7m, subject to local ground conditions. Some of the drill hole intersections used in resource estimation have thick (>7m) Sylvinite seams, notably Kal Ktf 8/84 and Kal Ktf 4/83.

This height was not used as a cut-off during resource estimation as that will become part of the conversion to reserves, but a 15% geological loss was applied to the resources to take into consideration this loss in volume and any other uncertainties.