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www.verdepotash.com
Disclaimer
This presentation contains certain “forward looking statements”, which include but is not limited to, statements with
respect to the future financial or operating performance of Verde Potash Plc (the “Company”), its subsidiaries and
its projects, statements regarding use of proceeds, exploration prospects, identification of mineral reserves, costs
of and capital for exploration projects, exploration expenditures, timing of future exploration and permitting,
requirements for additional capital, government regulations of mining operations, environmental risks, reclamation
expenses, title disputes or claims, and limitations of insurance coverage. Forward looking statements can
generally be identified by the use of words such as “plans”, “expects”, or “does not expect” or “is expected”,
“anticipates” or “does not anticipate”, or “believes”, “intends”, “forecasts”, “budget”, “scheduled”, “estimates” or
variations of such words or phrases or state that certain actions, event, or results “may”, “could”, “would”, “might”,
or “will be taken”, “occur” or “be achieved”. Forward looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance or achievements of the Company
to be materially different from any future results, performance or achievements expressed or implied by said
statements. There can be no assurances that forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated in said statements. Accordingly, readers
should not place undue reliance on forward-looking statements.


Total resources include all categories unless otherwise stated. All currency are in Canadian $ unless otherwise
stated.




                                                                                                            TSXv : NPK   2
Verde Potash
Brazilian fertilizer company
•Founded and led by strong and successful Brazilian team
•Listed on the Toronto Venture Exchange (NPK : TSX-V)

Cerrado Verde Potash Project
•105.1Mt @ 10.3% K2O of Potash inferred resource
•Phase 1 : ThermoPotash
        •    Low Capex: US$196.8m
        •    Strong Economics: NPV : US$445.5M
•Phase 2: Conventional Potash - KCl
        •    New technology under development
        •    University of Cambridge partnership

Investment Highlights
•High grade potash at surface
•Close proximity to fertilizer distribution and farms
•Strong government support: tax advantages and potential financing
                                                                     Potash rock at surface grading 11% K2O

                                                                                                     TSXv : NPK   3
Capital Structure & Share Price

Shares Issued                32,122,769    Share Price
                                           $10.00                                                    0.9
                                            $9.00                                                    0.8
Options                       2,862,136     $8.00                                                    0.7
                                            $7.00                                                    0.6
                                            $6.00
                                                                                                     0.5
Warrants                        208,686     $5.00
                                                                                                     0.4
                                            $4.00
                                            $3.00                                                    0.3
                                                                                                     0.2
Diluted                      35,193,591     $2.00
                                            $1.00                                                    0.1
                                            $0.00                                                    0
52 week: Hi/Lo           C$10.95/C$1.32         Jul-10   Sep-10 Nov-10   Jan-11 Mar-11 May-11   Jul-11


                                           Analyst Coverage
Market Cap (at $7.95)      C$255 million
                                           Salman Partners                  Jaret Anderson
Average Volume (3 mo.)           90,040    Wellington West                  Robert Winslow
                                           Ocean Equities                   Natasha Liddell
Cash Position            ~C$13.6 million
                                           Octagon Capital                  Max Vichniakov
                                           GMP Securities
                                           Kaiser Bottom Fish (John Kaiser)
                                                                  Anoop Prihar
Debt                                  0
                                           Bottom Fish                      John Kaiser

                                                                                            TSXv : NPK     4
Management & Directors
Management                                                         Independent Directors
Cristiano Veloso Founder, President, CEO                           Peter Gundy Chairman
•     12 years experience; Brazilian entrepreneur ex Banco do      •     Former Chairman of Neo Materials Technologies Inc.; VP of
      Brasil S/A, CEMIG; LL.B, LL.M International Business Law           Brascan Inc; Executive VP, Finance of Potash Corporation of
                                                                         Saskatchewan Limited.
MaurĂ­cio Sampaio VP Operations
•    30 years experience; ex President of Brazilian Agribusiness
     Association, Operations and Marketing Director for Bunge      Dr. Getulio Lamartine de Paula Fonseca
     Fertilizantes and Operations Director for Fertiza             •     Former General Director National Department of Power &
                                                                         Water Supply; Executive-Secretary Industry & Commerce
Pedro Ladeira VP Engineering                                             Ministry;
•    17 years experience; ex Operations Director at Cementos
     Minetti; Process and Production Manager for Holcim Brazil     Dr. Henrique BrandĂŁo Cavalcanti
                                                                   •     Former Brazil‟s Minister of the Environment (1994), Deputy
Ysao Munemassa Exploration Manager                                       Minister of Mines Energy (1967-69), Deputy Minister of Interior
•    41 years experience; ex BP Minerals, VALE, Union Carbide,           (1969-74).
     INCO, Teck Cominco, Newmont Gold

Dr Derek Fray Metallurgical Consultant                             Dr. Renato Gomes
•    45 years experience; University of Cambridge Professor &      •     Director of the ABCI Institute (Brazilian International Trade
     Director of Research                                                Scholars) Lawyer and member of Brazilian and Portuguese Bar
                                                                         Associations
Jed Richardson VP Corporate Development
•    10 years experience; ex Mining Analyst with Sprott/Cormark
     and RBC Capital Markets, Mining engineer with Alcan           Dr. Richard Garnett
     Aluminium                                                     •     PhD. in Economic Geology (Royal School of Mines, UK), MBA
                                                                         (Cranfield University, UK); Mining Engineer. Has held senior
                                                                         positions with Rio Tinto, Anglo American, Hudson Bay Mining
                                                                         and Diamond Fields Resources




                                                                                                                        TSXv : NPK         5
Brazil’s Agribusiness: Feeding the World
 •Brazil has almost 20% of world‟s                                                •The great agricultural frontier is Brazil‟s
 undeveloped potential arable land                                                Cerrado, or Savannah away from the
                                                                                  Amazon forest
                             Undeveloped Potential Arable Land
                       600
                                                                                                Amazon
                       500
                                                                    Available
                                                                                                          Brazil
Millions of Hectares




                       400
                                                                    Planted


                       300                                                                                 Cerrado
                       200


                       100
                                                                                                  South
                         0                                                                        America
                             Brazil         US          Russia   China    India
                Source: Food and Agriculture Organization, UN


 •Brazil has world‟s largest renewable fresh
                                             •Climate allows for multiple crops during
 water reserve
                                             the year

                                                                                                                        TSXv : NPK   6
Brazil’s Fertilizer Supply & Consumption


                                 Dependency on Imported Potash
                                 •Potash ranks in the top ten of Brazilian
                                 imports by dollar value (2008 #6, 2009
                                 #10)
                                 •Brazilian government targets 2020 to
                                 be fertilizer-independent
                                 •Brazil is to be ranked #1 globally for
                                 potash imports in 2020 at 7.2 million
                                 tonnes of K2O1




                Source: FAO,UN
                                   Note
                                   1Source: FERTECON report (FERTECON, 2009, /15/)

                                                                                     TSXv : NPK   7
Location, Location, Location

                               ~ 60% of Brazil’s
                               fertilizer consumption
                               takes place in Minas
                               Gerais state where
                               Verde’s projects are
                               located and adjacent
                               states




                                             TSXv : NPK   8
Transportation Advantage
From Saskatchewan to Brazil



                $43.29 1                                      $30-35                                              $80-115
Saskatchewan     /tonne          Port of Vancouver            /tonne             Port of Santos                    /tonne   NPK Blenders



                                                   Total: $153-193/tonne

 Verde Potash
                                                                      Transportation Cost 2
                                                                           Cerrado Verde to NPK Mixers
                                                                                   (per tonne)
                                                                  Minas Gerais                           $22.27
                                                                  Mato Grosso                            $59.72
                                                                  Goias                                  $29.66
                                                                  Parana                                 $67.33
                                                                  Mato Grosso do Sul                     $57.27
Cerrado Verde                                                     Bahia                                  $47.63             NPK Blenders
                                                                  Sao Paulo                              $40.85




                  1Government of Canada, Ministry of Transportation
                  2 Agroconsult                                                                                               TSXv : NPK   9
Potash at Surface

Growing Resource
• Initial NI 43-101 Inferred Resource of 105.1Mt @
   10.3% (7.5% cut-off)
• Potassium rich rock (Muscovite and Microcline)
   distributed over an area approximately: 100km x
   10km x 20m to 80m thick
• 26,000m drilling program underway (see press
   release dated May 9, 2011)


Low-Cost Mining
• High Grade
• Open Pit
• Drilling Results include up to 64m @ 10.3% K2O
   from surface

                                                     Potash rock at surface being drilled




                                                                                            TSXv : NPK   10
Verde’s Advantage

          Verde‟s
                              Carnallite             Sylvinite
          K Rock
Depth           0m                500 - 1000m             1000 - 1500m
           Open Pit Mining       Solution Mining     Conventional Underground

Grade        10-13% K2O           10-14% K2O               20-25% K2O


Time            2 yrs               5-7 years               7-10 years


Cap-Ex       $200 million          $1-2 billion             $2-3 billion


             Energy Costs      Fluid and Boreholes     Conventional Mining
Op Cost    Low mining costs    Solution Separation     Flotation Separation


Product     ThermoPotash              KCl                      KCl




                                                                       TSXv : NPK   11
ThermoPotash Scoping Study
NI 43-101 Preliminary Economic                                              Production Rate                                     1.1Mtpy2            2.2Mtpy2
                                                                            (Brazil market share of                                 (2%)                (4%)
Assessment Completed                                                        Potash “K2O”)
•PEA completed by SRK Consulting
(U.S.), Inc. studied open pit mining and                                    NPV (10%)                                      US$445.5m              US$844.1m
pyrometallurgy process to create the
ThermoPotash fertilizer                                                     NPV (12%)                                      US$331.6m              US$642.0m

                                                                            IRR                                                     32.7%              40.0%
Potential Cost Savings                                                      Operational Cost                                US$41.80/t            US$36.36/t
•Use of natural gas or eucalyptus
charcoal instead of pet coke as heating
                                                                            CapEx                                          US$155.3m              US$218.4m
fuel source                                                                 Contingency                                     US$23.3m               US$32.8m
•Utilization   of   Verde‟s    potential                                    Pre-construction                                US$18.2m               US$18.2m
                                                                            Total CapEx                                    US$196.8m              US$269.4m
limestone source
•Reduction of ICMS1 value-added taxes
                                                                            Payback                                          2.38 years            1.87 years
•Flow sheet Optimization



               NOTE

                                                                                                                                                                12
               1 Tax on the Circulation of Goods, Interstate and intercity Transportation and Communication Services
               2 These figures can be found on page IV of the Preliminary Economic Assessment available on SEDAR published on December 13, 2010
                                                                                                                                                  TSXv : NPK
ThermoPotash : Benefits
Benefits to farmers
• Provides potash in a slow release form
• Provides substantial doses of other
   macronutrients
• Reduces limestone use for pH correction
• No change to final fertilizer application
   quantities or techniques

Benefits to fertilizer blenders
• Overseas imports price is set 2 months
   before it arrives at facility, plus possible
   port delays
• 60% of fertilizer consumption occurs in 4
   month window
• Transport distance creates unusable
   powder from granules
• Potential to replace 581,236 tonnes of
   imported KCl in the region

                                                  Port of Santos

                                                                   TSXv : NPK   13
Beyond ThermoPotash: Conventional KCl
New Technology has potential to revolutionize Potash industry

•   Method invented for reacting Verde‟s
    potassium rich rock with a simple mixture of
    salts to form water-soluble potash
•   Invented by Dr. Derek Fray, Professor and
    Director of Research at the University of
    Cambridge, UK, sponsored by Verde
•   Reactions occur at moderate temperatures
    of 800-1000°C
•   The route allows for the production of SOP
    and KCl
•   Verde has commissioned a leading
    commercial lab to scale up the current         Potassium rich rock

    processing concept to industrial levels
•   If the process proves economic it could
    revolutionize the Potash market


                                                                         Dr Derek Fray, University of Cambridge, UK


                                                                                                  TSXv : NPK          14
Brazilian Government Commitment
Memorandum of Understanding (“MOU”) Signed
with State of Minas Gerais
(see April 7, 2011 release)

•Potential financing for working capital and fixed
investment support; funds administered by the
Development Bank of Minas Gerais (BDMG)
•Secretary of Finance‟s approval of special tax treatment
defined as:
      •   Suspension of “ICMS” tax payable on:
            a) imports of foreign goods;
            b) imports of foreign raw materials;
            c) purchases of domestic raw materials
      •   Eeffective tax load of 4% payable on sales of
          fertilizer products
      •   Tax benefit will reduce:
      •   capital and operational expenditures for the      Minas Gerais State Governor, Antonio Augusto, and
                                                            Cristiano Veloso, Verde Potash‟s CEO
          proposed TK production
      •   sales tax on TK


                                                                                                                15
Key Milestones
                                                     2011             2012   2013      2014
                                 Milestones
                                                       Q2   Q3   Q4
 Cerrado Verde Potash




                        Updated Resource
                        Calculation
                        TK Pre-Feasibility

                        TK Registration

                        TK Feasibility Study

                        TK Construction

                        TK Commissioning

                        Cambridge Technology
 Other




                        Apatita Phosphate Resource
                        Calculation
                        Limestone Resource
                        Calculation

                                                                                    TSXv : NPK   16
Potash Rock vs. Oil Sands
                                           Oil Sands                                  Potash Rock
    Commodity                               Crude oil                                     Potash

    Potential Resource         170 billion barrels of oil equivalent                  15 billion tonnes

    Cause for            •   Dependence on oil imports in the 1970s    •     Dependence on potash imports in
    development          •   Rising price of oil making the projects         Brazil with growing agriculture
                             economic                                        industry
    Life Stage               45 companies developing 82 projects;          Verde: market and product development
                                   25 projects in operation                                stage
    Key Companies             Major International Oil Companies                        Verde Potash
                               Suncor, Nexen, Cenovus, Husky
    Sector Value                          C$120 billion                                C$200 million

Oil sands
•      Oil sands now an accepted source of crude oil shows the potential our new source of potash
•      Oil sands deposits were developed because of increasing dependence on oil imports; Brazil‟s
       dependence on potash imports can be reduced by this development
•      In 30 years, oil sands emerged from a niche technology to a mainstream source of oil,
       supplying 6.6% of U.S. oil consumption. Our potash rock may follow suit, providing an answer
       for growing global potash need in the future

                                                                                                                   17
Why Potash is Important: Potash is Energy
       Sugarcane                 Milling and Refining                Ethanol Production                 Ethanol
                                                                                                    replaces about
• Uses 160kg/ha of potash        • Once harvested, sugarcane       • Ethanol is produced by         50% of the fuel
  per year, 55% of total           is milled to collect the          microbial fermentation of         needed to
  nutrient required (In            juice that contain 10-15%         the sugar                       operate light
  comparison, corn uses            sucrose                         • Water is removed by              vehicles on
  140kg/ha of potash, 31%        • Juice is filtered and refined     distillation and dehydration       gasoline
  of req’d nutrient)
• Sugarcane is grown in                                                                             Bagasse power
  about 8 million hectares of                                      Electricity Generation             generation
  land, of which 55% of the                                                                           represents
  harvest is used for ethanol                                      •Bagasse is burned to generate    4.1% of total
  production                                                        electricity for production         installed
                                                                    plant and grid                     capacity


      Ethanol Production Cost
     Sugarcane (Brazil): $0.83
        Corn (US): $1.14

 Ratio energy input to manufacture
    to energy output of ethanol
     Sugarcane (Brazil): 1:9.3
        Corn (US): 1:1.4


                                                                                                        TSXv : NPK    18
Appendix



           19
Process and Operating Costs
ThermoPotash Production Process                                                                  Estimated Operating Cost
1.   Mining                                                                                             (1.1mtpy) 1
      •    Potassium rich rock comes from open pit and                                            •Energy
           the limestone comes from suppliers in the                                    $18.45 •petroleum coke, electricity
           surrounding area or Verde‟s quarry
                                                                                                  •Raw Materials
2.   Grinding                                                                            $2.35    •limestone
      •    Potassium rock and limestone are ground by
           upright rod mill                                                                       •Labour
                                                                                         $8.91
3.   Mixing
      •    The ground rock and limestone are mixed                                                •Maintenance
           and 4% moisture is added                                                      $1.80
4.   Pelletization and Drying
      •    Material is rolled into pellets by disc                                                •Equipment Operation
                                                                                         $5.50
           pelletizers, and dried by exhaust gas from the
           rotary kiln                                                                            •Marketing
                                                                                         $1.76
5.   Rotary Kiln and Quenching
      •    After drying, pellets go into the rotary kiln to                                    •Non-Operating Expenses
           be heated to 1250oC and rapidly cooled                                        $3.04 •administration

6.   Packaging of ready ThermoPotash product
                                                                                                     US$41.80/tonne
                 1These figures can be found on pages 17-15 & 17-16 of the Preliminary Economic Assessment
                 available on SEDAR published on December 13, 2010
                                                                                                                          TSXv : NPK   20
Pricing Estimates
                                                                                    Marketing Study
                                                                                    • Agroconsult         conducted     an
                     Mato Grosso
                                                                Bahia
                                                               325,18ty
                                                                                       independent      market    study to
                      895,043t/y
                       $189.85
                                                               $141.61                 understand potential sale price and
                                             Goias              $93.98
                       $130.13
                                           495,68t/y                                   market size of ThermoPotash
                                            $142.64      Minas
                                            $112.98     Gerais                      • Prices derived exclusively on how
                                                       896,051t/y
                                                        $182.31                        blenders can optimize NPK formulas
 Cerrado Verde                                          $160.04
                                                                                       using ThermoPotash and keep raw
Mato Grosso
                                                                                       material costs equal
   do Sul
 246,621t/y  Parana
  $179.47   778,17t/y                                  Sao Paulo
  $122.20    $131.01                                   722,513t/y
              $63.68                                    $131.77       Highlighted Market
                                                         $90.92       Annual Market Potential:
                                                                      4,359,267 tonnes
                                                                      Potential Sale Price:
                                                                      US$179.47/t1
                                                                      Delivery-adjusted Price:
                                                                      US$122.20/t1
  NOTE
  1 Weighted-average of the highlighted market




                                                                                                                 TSXv : NPK   21
Pricing Estimates
                Optimized Formulation vs. Standard Formulation in 4-20-20 Fertilizer1
                                                       Standard - w/o TK                           Optimized Formulation - w/ TK
                                Weight             Price         N           P       K    Weight     Price        N            P          K
                                  (kg)            (US$)                                     (kg)    (US$)
Am. Sulphate                     74.2             19.18     1.48%        0.00%   0.00%       5.6     1.45     0.11%       0.00%     0.00%
(US$258.52/t)


SSP                               352.8           89.28        0.00%   7.06%     0.00%        0       0.00    0.00%      0.00%      0.00%
(US$253.07/t)

MAP                               239.7         123.22         2.52%   12.94%    0.00%     370.4   190.41     3.89%     20.00%      0.00%
(US$514.06/t)

KCl                               333.3         171.83         0.00%   0.00%     20.00%    288.6   148.79     0.00%      0.00%     17.32%
(US$515.55/t)

ThermoPotash                             0                 0   0.00%   0.00%     0.00%     335.5    61.16     0.00%      0.00%      2.68%
($182.31/t)

Total Weight                       1000         403.53         4.00%   20.00%    20.00%    1000    401.81     4.00%     20.00%     20.00%


NOTE
1 Agroconsult (see press release dated October 26, 2010)




                                                                                                                             TSXv : NPK   22
ThermoPotash Agronomic Results
Nutrient Availability Tests                      Limestone Replacement Tests
(See August 11, 2010 release)                    (See October 14, 2010 release)
•       Tests showed that ThermoPotash           •      Every tonne of ThermoPotash used
        (TK) provided statistically equivalent          reduces limestone required by 490
        nutrients to plants as KCl                      kg
Slow and Controlled Release
(See October 15, 2010 release)
•       Resin tests confirmed       slow
        release          properties    of
        ThermoPotash (best suited for
        Brazilian soils)

    Potassium Leaching Tests
    (See December 16, 2010 release)
    •    TK suffers minimal nutrient loss as a
         result of leaching, whereas KCl loses
         26% under the same conditions
                                                 Carrot‟s planted at Sekita using TK & KCl: statistically inconclusive results


                                                                                                                     TSXv : NPK   23
Why It Hasn’t Been Done Before?
                            1200                                                                              120




                                                                                                                    Potash Shipments (MMt)
                            1000                   Shipments          Brazil                                  100
       Potash Price ($/t)




                            800                    China                                                      80

                            600                                                                               60

                            400                                                                               40

                            200                                                                               20

                              0                                                                               0
                                   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

                                    2002    2003     2004      2005      2006    2007   2008   2009   2010E




Potash price was too low                                                        Existing Production Gov’t Built
• When Verdete was first tested KCl                                             • Large      conventional   mines  are
   was only $70/t                                                                  privatized government assets
• In 2007 KCl price was still $200/t                                            • No new large mines since 1980‟s
   reaching $1100/t during 2008                                                 • Now it would cost billions with long
• Now $400/t FOB, $600/t in Brazil                                                 lead times to production

                                                                                                                                             TSXv : NPK   24
ThermoPotash Partnerships
                                       ArcelorMittal to Fund Agronomic Trials (See Sept. 22, 2009 release)
                                       • Agreement represents a first step in developing corporate demand for ThermoPotash. ArcelorMittal
                                         has 170,000ha of cultivated eucalyptus forests for charcoal production.

                                       Agrifirma to Undertake Agronomic Trials (See Nov. 24 & Dec. 9, 2009 release)
                                       • Agreement secures real world field trials of ThermoPotash for use in corn and soy plantation, also as
                                         part of process for conversion of Cerrado scrubland for commercial cultivation. Agrifirma is a Jersey-
                                         based land fund with 42,000ha of farmland in Brazil

                                       Sekita to Fund Agronomic Trials (See March 22, 2010 release)
                                       • Agreement establishes a relationship with one of the largest Brazilian vegetable producers.
                                         ThermoPotash to be tested in real world conditions for use with various vegetables. Its farms are
                                         located less than 10km from the Cerrado Verde Project

                                       Included in Sugarcane Fertilizer Taskforce (See August 4, 2009 release)
                                       • ROCKAPL („Rock‟ Arranjo Produtivo Local) is a collaborative effort between government and private
                                         enterprise focused on developing fertilizer alternatives for sugarcane destined for ethanol production

                                       University of Uberlandia Undertakes Agronomic Trials (See December 9, 2009 release)
                                       • Agreement with Dr. Gaspar Korndörfer, Professor of Agriculture at the Universidade Fedederal de
Universidade Fedederal de Uberlandia     Uberlandia, secures initial agronomic studies used for the planning of Amazon‟s metallurgical test
                                         work and laboratory scale tests on the application of ThermoPotash

                                       University of Lavras Agreement (See August 31, 2010 release)
                                       • Agreement with the University of Lavras to complete a full slate of tests to register the ThermoPotash
                                         product as a fertilizer in Brazil


                                                                                                                                    TSXv : NPK    25
Apatita Phosphate Project
•   30km of mineralized phosphate with
    widths between 1km and 5km (see
    November 8, 2010 release)
•   Average grade of 7.13% P2O5 from 435
    surface grab samples
•   12 hole, 1,022m drilling program
    provided encouraging results at two
    prospect regions:
     • Alto da Serra zone - high grade potential
       of 2m at 9.49% P2O5
     • Nau de Guerra zone - high grade
       potential of 1m at 8.43% P2O5 and 3m at
       6.35% P2O5
•   First concentration test result: 29.8%
    P2O5 with significant potential for
    improvement



                                                   TSXv : NPK   26
Phosphate in Brazil

                                                                                                                                Avg                                     Production
                                                                                   Resource 1            Reserve 2             Grade               P2O5                  Capacity4
  Company         Project             Status                    Type                  (Mt)                 (Mt)               P2O5 (%)           Concentr.3               (ktpy)
 Fosfertil/Vale    Tapira            Operating              Carbonatite                                    1,309.2                7.69                35.5                  2,030

Copebras/Anglo    Ouvidor            Operating              Carbonatite                                      256.7                7.63                38.0                  1,300

     Vale           Araxa            Operating              Carbonatite                                      88.7                11.12                35/33                  910
 Fosfertil/Vale    Catalao           Operating              Carbonatite                                      223.6                8.96                36/34                 1,209

     Vale           Cajati           Operating              Carbonatite                                      85.1                 5.45                36.0                   528

 Fosfertil/Vale     Patos            Operating           Metasediments                                       304.6               12.36                24.0                   150

 Fosfertil/Vale    Salitre         Implementati             Carbonatite                852.0                                     10.74                   -              1,600 forecast
                                        on

     Vale         Anitapolis       Implementati             Carbonatite                 54.0                                      9.01                   -               300 forecast
                                        on

    MBAC5           Itafos           Operating           Metasediments                                       44.0                 5.39                28/30                  50




                     Notes
                     1 Resource and Grades: Salitre-DNPM 1975/Anitapolis:, DOU 1980 (DOU = Official Diary of Brazil)
                     2 Reserve and Grades: DNPM 2006 Mineral Annuary
                     3 Concentration/Production: ANDA Annuary 2008
                     4 Major Phosphate Rock Producer by Bete,Inc. for Cargill Fertilizer, inc 1998. Values updated to 2010 including exchange variation and inflation
                     5 BMO – MBAC report figures April 2010 and Website info September 2010                                                                             TSXv : NPK       27
TSX-V:NPK
www.verdepotash.com

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Investor Presentation July 2011

  • 2. Disclaimer This presentation contains certain “forward looking statements”, which include but is not limited to, statements with respect to the future financial or operating performance of Verde Potash Plc (the “Company”), its subsidiaries and its projects, statements regarding use of proceeds, exploration prospects, identification of mineral reserves, costs of and capital for exploration projects, exploration expenditures, timing of future exploration and permitting, requirements for additional capital, government regulations of mining operations, environmental risks, reclamation expenses, title disputes or claims, and limitations of insurance coverage. Forward looking statements can generally be identified by the use of words such as “plans”, “expects”, or “does not expect” or “is expected”, “anticipates” or “does not anticipate”, or “believes”, “intends”, “forecasts”, “budget”, “scheduled”, “estimates” or variations of such words or phrases or state that certain actions, event, or results “may”, “could”, “would”, “might”, or “will be taken”, “occur” or “be achieved”. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by said statements. There can be no assurances that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in said statements. Accordingly, readers should not place undue reliance on forward-looking statements. Total resources include all categories unless otherwise stated. All currency are in Canadian $ unless otherwise stated. TSXv : NPK 2
  • 3. Verde Potash Brazilian fertilizer company •Founded and led by strong and successful Brazilian team •Listed on the Toronto Venture Exchange (NPK : TSX-V) Cerrado Verde Potash Project •105.1Mt @ 10.3% K2O of Potash inferred resource •Phase 1 : ThermoPotash • Low Capex: US$196.8m • Strong Economics: NPV : US$445.5M •Phase 2: Conventional Potash - KCl • New technology under development • University of Cambridge partnership Investment Highlights •High grade potash at surface •Close proximity to fertilizer distribution and farms •Strong government support: tax advantages and potential financing Potash rock at surface grading 11% K2O TSXv : NPK 3
  • 4. Capital Structure & Share Price Shares Issued 32,122,769 Share Price $10.00 0.9 $9.00 0.8 Options 2,862,136 $8.00 0.7 $7.00 0.6 $6.00 0.5 Warrants 208,686 $5.00 0.4 $4.00 $3.00 0.3 0.2 Diluted 35,193,591 $2.00 $1.00 0.1 $0.00 0 52 week: Hi/Lo C$10.95/C$1.32 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Analyst Coverage Market Cap (at $7.95) C$255 million Salman Partners Jaret Anderson Average Volume (3 mo.) 90,040 Wellington West Robert Winslow Ocean Equities Natasha Liddell Cash Position ~C$13.6 million Octagon Capital Max Vichniakov GMP Securities Kaiser Bottom Fish (John Kaiser) Anoop Prihar Debt 0 Bottom Fish John Kaiser TSXv : NPK 4
  • 5. Management & Directors Management Independent Directors Cristiano Veloso Founder, President, CEO Peter Gundy Chairman • 12 years experience; Brazilian entrepreneur ex Banco do • Former Chairman of Neo Materials Technologies Inc.; VP of Brasil S/A, CEMIG; LL.B, LL.M International Business Law Brascan Inc; Executive VP, Finance of Potash Corporation of Saskatchewan Limited. MaurĂ­cio Sampaio VP Operations • 30 years experience; ex President of Brazilian Agribusiness Association, Operations and Marketing Director for Bunge Dr. Getulio Lamartine de Paula Fonseca Fertilizantes and Operations Director for Fertiza • Former General Director National Department of Power & Water Supply; Executive-Secretary Industry & Commerce Pedro Ladeira VP Engineering Ministry; • 17 years experience; ex Operations Director at Cementos Minetti; Process and Production Manager for Holcim Brazil Dr. Henrique BrandĂŁo Cavalcanti • Former Brazil‟s Minister of the Environment (1994), Deputy Ysao Munemassa Exploration Manager Minister of Mines Energy (1967-69), Deputy Minister of Interior • 41 years experience; ex BP Minerals, VALE, Union Carbide, (1969-74). INCO, Teck Cominco, Newmont Gold Dr Derek Fray Metallurgical Consultant Dr. Renato Gomes • 45 years experience; University of Cambridge Professor & • Director of the ABCI Institute (Brazilian International Trade Director of Research Scholars) Lawyer and member of Brazilian and Portuguese Bar Associations Jed Richardson VP Corporate Development • 10 years experience; ex Mining Analyst with Sprott/Cormark and RBC Capital Markets, Mining engineer with Alcan Dr. Richard Garnett Aluminium • PhD. in Economic Geology (Royal School of Mines, UK), MBA (Cranfield University, UK); Mining Engineer. Has held senior positions with Rio Tinto, Anglo American, Hudson Bay Mining and Diamond Fields Resources TSXv : NPK 5
  • 6. Brazil’s Agribusiness: Feeding the World •Brazil has almost 20% of world‟s •The great agricultural frontier is Brazil‟s undeveloped potential arable land Cerrado, or Savannah away from the Amazon forest Undeveloped Potential Arable Land 600 Amazon 500 Available Brazil Millions of Hectares 400 Planted 300 Cerrado 200 100 South 0 America Brazil US Russia China India Source: Food and Agriculture Organization, UN •Brazil has world‟s largest renewable fresh •Climate allows for multiple crops during water reserve the year TSXv : NPK 6
  • 7. Brazil’s Fertilizer Supply & Consumption Dependency on Imported Potash •Potash ranks in the top ten of Brazilian imports by dollar value (2008 #6, 2009 #10) •Brazilian government targets 2020 to be fertilizer-independent •Brazil is to be ranked #1 globally for potash imports in 2020 at 7.2 million tonnes of K2O1 Source: FAO,UN Note 1Source: FERTECON report (FERTECON, 2009, /15/) TSXv : NPK 7
  • 8. Location, Location, Location ~ 60% of Brazil’s fertilizer consumption takes place in Minas Gerais state where Verde’s projects are located and adjacent states TSXv : NPK 8
  • 9. Transportation Advantage From Saskatchewan to Brazil $43.29 1 $30-35 $80-115 Saskatchewan /tonne Port of Vancouver /tonne Port of Santos /tonne NPK Blenders Total: $153-193/tonne Verde Potash Transportation Cost 2 Cerrado Verde to NPK Mixers (per tonne) Minas Gerais $22.27 Mato Grosso $59.72 Goias $29.66 Parana $67.33 Mato Grosso do Sul $57.27 Cerrado Verde Bahia $47.63 NPK Blenders Sao Paulo $40.85 1Government of Canada, Ministry of Transportation 2 Agroconsult TSXv : NPK 9
  • 10. Potash at Surface Growing Resource • Initial NI 43-101 Inferred Resource of 105.1Mt @ 10.3% (7.5% cut-off) • Potassium rich rock (Muscovite and Microcline) distributed over an area approximately: 100km x 10km x 20m to 80m thick • 26,000m drilling program underway (see press release dated May 9, 2011) Low-Cost Mining • High Grade • Open Pit • Drilling Results include up to 64m @ 10.3% K2O from surface Potash rock at surface being drilled TSXv : NPK 10
  • 11. Verde’s Advantage Verde‟s Carnallite Sylvinite K Rock Depth 0m 500 - 1000m 1000 - 1500m Open Pit Mining Solution Mining Conventional Underground Grade 10-13% K2O 10-14% K2O 20-25% K2O Time 2 yrs 5-7 years 7-10 years Cap-Ex $200 million $1-2 billion $2-3 billion Energy Costs Fluid and Boreholes Conventional Mining Op Cost Low mining costs Solution Separation Flotation Separation Product ThermoPotash KCl KCl TSXv : NPK 11
  • 12. ThermoPotash Scoping Study NI 43-101 Preliminary Economic Production Rate 1.1Mtpy2 2.2Mtpy2 (Brazil market share of (2%) (4%) Assessment Completed Potash “K2O”) •PEA completed by SRK Consulting (U.S.), Inc. studied open pit mining and NPV (10%) US$445.5m US$844.1m pyrometallurgy process to create the ThermoPotash fertilizer NPV (12%) US$331.6m US$642.0m IRR 32.7% 40.0% Potential Cost Savings Operational Cost US$41.80/t US$36.36/t •Use of natural gas or eucalyptus charcoal instead of pet coke as heating CapEx US$155.3m US$218.4m fuel source Contingency US$23.3m US$32.8m •Utilization of Verde‟s potential Pre-construction US$18.2m US$18.2m Total CapEx US$196.8m US$269.4m limestone source •Reduction of ICMS1 value-added taxes Payback 2.38 years 1.87 years •Flow sheet Optimization NOTE 12 1 Tax on the Circulation of Goods, Interstate and intercity Transportation and Communication Services 2 These figures can be found on page IV of the Preliminary Economic Assessment available on SEDAR published on December 13, 2010 TSXv : NPK
  • 13. ThermoPotash : Benefits Benefits to farmers • Provides potash in a slow release form • Provides substantial doses of other macronutrients • Reduces limestone use for pH correction • No change to final fertilizer application quantities or techniques Benefits to fertilizer blenders • Overseas imports price is set 2 months before it arrives at facility, plus possible port delays • 60% of fertilizer consumption occurs in 4 month window • Transport distance creates unusable powder from granules • Potential to replace 581,236 tonnes of imported KCl in the region Port of Santos TSXv : NPK 13
  • 14. Beyond ThermoPotash: Conventional KCl New Technology has potential to revolutionize Potash industry • Method invented for reacting Verde‟s potassium rich rock with a simple mixture of salts to form water-soluble potash • Invented by Dr. Derek Fray, Professor and Director of Research at the University of Cambridge, UK, sponsored by Verde • Reactions occur at moderate temperatures of 800-1000°C • The route allows for the production of SOP and KCl • Verde has commissioned a leading commercial lab to scale up the current Potassium rich rock processing concept to industrial levels • If the process proves economic it could revolutionize the Potash market Dr Derek Fray, University of Cambridge, UK TSXv : NPK 14
  • 15. Brazilian Government Commitment Memorandum of Understanding (“MOU”) Signed with State of Minas Gerais (see April 7, 2011 release) •Potential financing for working capital and fixed investment support; funds administered by the Development Bank of Minas Gerais (BDMG) •Secretary of Finance‟s approval of special tax treatment defined as: • Suspension of “ICMS” tax payable on: a) imports of foreign goods; b) imports of foreign raw materials; c) purchases of domestic raw materials • Eeffective tax load of 4% payable on sales of fertilizer products • Tax benefit will reduce: • capital and operational expenditures for the Minas Gerais State Governor, Antonio Augusto, and Cristiano Veloso, Verde Potash‟s CEO proposed TK production • sales tax on TK 15
  • 16. Key Milestones 2011 2012 2013 2014 Milestones Q2 Q3 Q4 Cerrado Verde Potash Updated Resource Calculation TK Pre-Feasibility TK Registration TK Feasibility Study TK Construction TK Commissioning Cambridge Technology Other Apatita Phosphate Resource Calculation Limestone Resource Calculation TSXv : NPK 16
  • 17. Potash Rock vs. Oil Sands Oil Sands Potash Rock Commodity Crude oil Potash Potential Resource 170 billion barrels of oil equivalent 15 billion tonnes Cause for • Dependence on oil imports in the 1970s • Dependence on potash imports in development • Rising price of oil making the projects Brazil with growing agriculture economic industry Life Stage 45 companies developing 82 projects; Verde: market and product development 25 projects in operation stage Key Companies Major International Oil Companies Verde Potash Suncor, Nexen, Cenovus, Husky Sector Value C$120 billion C$200 million Oil sands • Oil sands now an accepted source of crude oil shows the potential our new source of potash • Oil sands deposits were developed because of increasing dependence on oil imports; Brazil‟s dependence on potash imports can be reduced by this development • In 30 years, oil sands emerged from a niche technology to a mainstream source of oil, supplying 6.6% of U.S. oil consumption. Our potash rock may follow suit, providing an answer for growing global potash need in the future 17
  • 18. Why Potash is Important: Potash is Energy Sugarcane Milling and Refining Ethanol Production Ethanol replaces about • Uses 160kg/ha of potash • Once harvested, sugarcane • Ethanol is produced by 50% of the fuel per year, 55% of total is milled to collect the microbial fermentation of needed to nutrient required (In juice that contain 10-15% the sugar operate light comparison, corn uses sucrose • Water is removed by vehicles on 140kg/ha of potash, 31% • Juice is filtered and refined distillation and dehydration gasoline of req’d nutrient) • Sugarcane is grown in Bagasse power about 8 million hectares of Electricity Generation generation land, of which 55% of the represents harvest is used for ethanol •Bagasse is burned to generate 4.1% of total production electricity for production installed plant and grid capacity Ethanol Production Cost Sugarcane (Brazil): $0.83 Corn (US): $1.14 Ratio energy input to manufacture to energy output of ethanol Sugarcane (Brazil): 1:9.3 Corn (US): 1:1.4 TSXv : NPK 18
  • 19. Appendix 19
  • 20. Process and Operating Costs ThermoPotash Production Process Estimated Operating Cost 1. Mining (1.1mtpy) 1 • Potassium rich rock comes from open pit and •Energy the limestone comes from suppliers in the $18.45 •petroleum coke, electricity surrounding area or Verde‟s quarry •Raw Materials 2. Grinding $2.35 •limestone • Potassium rock and limestone are ground by upright rod mill •Labour $8.91 3. Mixing • The ground rock and limestone are mixed •Maintenance and 4% moisture is added $1.80 4. Pelletization and Drying • Material is rolled into pellets by disc •Equipment Operation $5.50 pelletizers, and dried by exhaust gas from the rotary kiln •Marketing $1.76 5. Rotary Kiln and Quenching • After drying, pellets go into the rotary kiln to •Non-Operating Expenses be heated to 1250oC and rapidly cooled $3.04 •administration 6. Packaging of ready ThermoPotash product US$41.80/tonne 1These figures can be found on pages 17-15 & 17-16 of the Preliminary Economic Assessment available on SEDAR published on December 13, 2010 TSXv : NPK 20
  • 21. Pricing Estimates Marketing Study • Agroconsult conducted an Mato Grosso Bahia 325,18ty independent market study to 895,043t/y $189.85 $141.61 understand potential sale price and Goias $93.98 $130.13 495,68t/y market size of ThermoPotash $142.64 Minas $112.98 Gerais • Prices derived exclusively on how 896,051t/y $182.31 blenders can optimize NPK formulas Cerrado Verde $160.04 using ThermoPotash and keep raw Mato Grosso material costs equal do Sul 246,621t/y Parana $179.47 778,17t/y Sao Paulo $122.20 $131.01 722,513t/y $63.68 $131.77 Highlighted Market $90.92 Annual Market Potential: 4,359,267 tonnes Potential Sale Price: US$179.47/t1 Delivery-adjusted Price: US$122.20/t1 NOTE 1 Weighted-average of the highlighted market TSXv : NPK 21
  • 22. Pricing Estimates Optimized Formulation vs. Standard Formulation in 4-20-20 Fertilizer1 Standard - w/o TK Optimized Formulation - w/ TK Weight Price N P K Weight Price N P K (kg) (US$) (kg) (US$) Am. Sulphate 74.2 19.18 1.48% 0.00% 0.00% 5.6 1.45 0.11% 0.00% 0.00% (US$258.52/t) SSP 352.8 89.28 0.00% 7.06% 0.00% 0 0.00 0.00% 0.00% 0.00% (US$253.07/t) MAP 239.7 123.22 2.52% 12.94% 0.00% 370.4 190.41 3.89% 20.00% 0.00% (US$514.06/t) KCl 333.3 171.83 0.00% 0.00% 20.00% 288.6 148.79 0.00% 0.00% 17.32% (US$515.55/t) ThermoPotash 0 0 0.00% 0.00% 0.00% 335.5 61.16 0.00% 0.00% 2.68% ($182.31/t) Total Weight 1000 403.53 4.00% 20.00% 20.00% 1000 401.81 4.00% 20.00% 20.00% NOTE 1 Agroconsult (see press release dated October 26, 2010) TSXv : NPK 22
  • 23. ThermoPotash Agronomic Results Nutrient Availability Tests Limestone Replacement Tests (See August 11, 2010 release) (See October 14, 2010 release) • Tests showed that ThermoPotash • Every tonne of ThermoPotash used (TK) provided statistically equivalent reduces limestone required by 490 nutrients to plants as KCl kg Slow and Controlled Release (See October 15, 2010 release) • Resin tests confirmed slow release properties of ThermoPotash (best suited for Brazilian soils) Potassium Leaching Tests (See December 16, 2010 release) • TK suffers minimal nutrient loss as a result of leaching, whereas KCl loses 26% under the same conditions Carrot‟s planted at Sekita using TK & KCl: statistically inconclusive results TSXv : NPK 23
  • 24. Why It Hasn’t Been Done Before? 1200 120 Potash Shipments (MMt) 1000 Shipments Brazil 100 Potash Price ($/t) 800 China 80 600 60 400 40 200 20 0 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2002 2003 2004 2005 2006 2007 2008 2009 2010E Potash price was too low Existing Production Gov’t Built • When Verdete was first tested KCl • Large conventional mines are was only $70/t privatized government assets • In 2007 KCl price was still $200/t • No new large mines since 1980‟s reaching $1100/t during 2008 • Now it would cost billions with long • Now $400/t FOB, $600/t in Brazil lead times to production TSXv : NPK 24
  • 25. ThermoPotash Partnerships ArcelorMittal to Fund Agronomic Trials (See Sept. 22, 2009 release) • Agreement represents a first step in developing corporate demand for ThermoPotash. ArcelorMittal has 170,000ha of cultivated eucalyptus forests for charcoal production. Agrifirma to Undertake Agronomic Trials (See Nov. 24 & Dec. 9, 2009 release) • Agreement secures real world field trials of ThermoPotash for use in corn and soy plantation, also as part of process for conversion of Cerrado scrubland for commercial cultivation. Agrifirma is a Jersey- based land fund with 42,000ha of farmland in Brazil Sekita to Fund Agronomic Trials (See March 22, 2010 release) • Agreement establishes a relationship with one of the largest Brazilian vegetable producers. ThermoPotash to be tested in real world conditions for use with various vegetables. Its farms are located less than 10km from the Cerrado Verde Project Included in Sugarcane Fertilizer Taskforce (See August 4, 2009 release) • ROCKAPL („Rock‟ Arranjo Produtivo Local) is a collaborative effort between government and private enterprise focused on developing fertilizer alternatives for sugarcane destined for ethanol production University of Uberlandia Undertakes Agronomic Trials (See December 9, 2009 release) • Agreement with Dr. Gaspar KorndĂśrfer, Professor of Agriculture at the Universidade Fedederal de Universidade Fedederal de Uberlandia Uberlandia, secures initial agronomic studies used for the planning of Amazon‟s metallurgical test work and laboratory scale tests on the application of ThermoPotash University of Lavras Agreement (See August 31, 2010 release) • Agreement with the University of Lavras to complete a full slate of tests to register the ThermoPotash product as a fertilizer in Brazil TSXv : NPK 25
  • 26. Apatita Phosphate Project • 30km of mineralized phosphate with widths between 1km and 5km (see November 8, 2010 release) • Average grade of 7.13% P2O5 from 435 surface grab samples • 12 hole, 1,022m drilling program provided encouraging results at two prospect regions: • Alto da Serra zone - high grade potential of 2m at 9.49% P2O5 • Nau de Guerra zone - high grade potential of 1m at 8.43% P2O5 and 3m at 6.35% P2O5 • First concentration test result: 29.8% P2O5 with significant potential for improvement TSXv : NPK 26
  • 27. Phosphate in Brazil Avg Production Resource 1 Reserve 2 Grade P2O5 Capacity4 Company Project Status Type (Mt) (Mt) P2O5 (%) Concentr.3 (ktpy) Fosfertil/Vale Tapira Operating Carbonatite 1,309.2 7.69 35.5 2,030 Copebras/Anglo Ouvidor Operating Carbonatite 256.7 7.63 38.0 1,300 Vale Araxa Operating Carbonatite 88.7 11.12 35/33 910 Fosfertil/Vale Catalao Operating Carbonatite 223.6 8.96 36/34 1,209 Vale Cajati Operating Carbonatite 85.1 5.45 36.0 528 Fosfertil/Vale Patos Operating Metasediments 304.6 12.36 24.0 150 Fosfertil/Vale Salitre Implementati Carbonatite 852.0 10.74 - 1,600 forecast on Vale Anitapolis Implementati Carbonatite 54.0 9.01 - 300 forecast on MBAC5 Itafos Operating Metasediments 44.0 5.39 28/30 50 Notes 1 Resource and Grades: Salitre-DNPM 1975/Anitapolis:, DOU 1980 (DOU = Official Diary of Brazil) 2 Reserve and Grades: DNPM 2006 Mineral Annuary 3 Concentration/Production: ANDA Annuary 2008 4 Major Phosphate Rock Producer by Bete,Inc. for Cargill Fertilizer, inc 1998. Values updated to 2010 including exchange variation and inflation 5 BMO – MBAC report figures April 2010 and Website info September 2010 TSXv : NPK 27