1

The Sintoukola Potash Project

Technical Overview of PotashMining

Paul KlugeMarch 2013 ASX: ELM, TSX: ELM

2

Agenda

●About Elemental Minerals●The Potash Market●Potash Basics●The Sintoukola Potash Project

Geology Mining Processing Infrastructure Economics

●Summary & Conclusion

3

About Elemental Minerals

● Exclusively focused on the 93% owned Sintoukola Potash Project in Republic of Congo (Brazzaville)

● Listed on the ASX and TSX● Management Team based in Dainfern, South Africa● Global group of consultants from Perth to

Vancouver, SRK Denver lead engineers● Key Milestones so far:

● Start of drilling – Sep 2010● Maiden resource – Apr 2011● PEA – Aug 2011● IPO in Toronto – Aug 2011● PFS completed – Sep 2012● ESIA and mining license application – Dec 12

4

The Potash Market

• Potash primary use is in fertiliser, along with nitrogen and phosphorous (NPK)• Saleable product is Murate of Potash (MoP) which is pure KCl• K improves crop water retention, yield, nutrient value, taste, colour and

disease resistance

Why Potash?

5

The Potash Market

• One third of production concentrated in Saskatchewan Canada – controlled by Canpotex

• One third of production concentrated in the FSU, controlled by Belarussion Potash Corporation

• Final Third of Production spread between Germany, Chile, Chine, Israel, Jordan

• No supply currently from Africa, but a historic operation in RoC flooded in the 1970’s (Holle Mine)

Potash Supply

• Demand from agricultural users• Mature markets: USA, EU• Growth markets: China, India, SE Asia, BRAZIL• Brazilian market consumed 8.2Mtpa in 2013 (own

production 800ktpa), demand projected to grow to 10.2Mtpa by 2017

Potash Demand

6

Potash Basics● Potash sold as 96-98% pure KCl (60-61% K2O) –

Muriate of Potash (MoP)● Potash Ores:

● Sylvinite = Sylvite (KCl) + Halite (NaCl) ● Grades typically 15%-25% K2O● Basis for reserve at Sintoukola (21% K2O

& HWS intersection at 35% K2O)● Most of world production

● Carnallitite = Carnallite (KMgCl3·6H2O) + NaCl● Grades typically 10%-15% K2O● More difficult to process● Production often in conjunction with Mg

7

The Sintoukola Project - Location● Situated in the south west corner of the Republic of Congo● 30km direct line of sight from the coast● 60km north of Pointe Noire● 1,408km2 exploration license covering the Kola and Dougou

deposits – 90km2 explored to date

VancouverPortland

Brazil

NW Europe

ChinaMiddle EastUSA

Pacific NW St. PetersburgVentspilsKlaipediaHamburg

AshdodEilatAqaba

Pointe NoireAfrica

Distance (Vancouver – Santos)8,491 nautical miles

Distance (St. Petersburg – Santos)

6,447 nautical miles

Distance (Ashdod – Santos)

6,411 nautical miles

New Brunswick

Distance (Pointe Noire – Santos)

3,560 nautical miles

India

Significant opportunity for Asian markets

8

Historic Exploration• Potash discovered in 1935. French (Potasse d’Alsace) explored

coastal plain, scattered drilling, focussed at Holle. • >60 historic boreholes within basin completed by previous oil

and potash explorers, most contain references to potash. >10 within SP permit area.

• Within SP permit >400 line kilometres of 2D oil industry seismic data from 80’s to 2006. Plus oil exploration boreholes.

• ELM acquired most historic borehole logs and 200 kms of historic seismic data through purchase and swap agreements

• ELM initated exploration by twinning K6 and K18 at Kola in 2010

Strategic World Class Potash Project

Historic log

Kola DepositBoreholes, seismic linesand resource outlines

9

The Sintoukola Potash Project - Resource• All exploration with consultation and sign-off by CSA Global of Perth.• Team of 10 local and expat geologists and technicians• Drilling of 45 exploration boreholes (15,737 metres)• Drilling of 22 hydrological boreholes (3,779 metres)• 203 line kms of 2D Seismic data over 2 phases. • 3 resource estimations (by CSA) the latest being August 2012.• Phase 3 commenced 8th Jan 2013.

Measured Indicated Inferred

Tonnes(Mt)

%K2O %KCl Tonnes(Mt)

%K2O %KCl Tonnes(Mt)

%K2O %KCl

HWS - - - - - - 47 34.8 55.0Upper Seam 171 22.5 35.5 159 22.0 34.9 96 21.8 34.5Lower Seam 93 19.2 30.4 150 19.1 30.2 107 19.1 30.3Footwall Seam 225 17.6 27.9

Total 264 21.3 33.7 309 20.6 32.6 475 20.4 32.3

Mineral Resource estimate for sylvinite mineralization only at a 10% K2O cut-off grade

10

Project Geology• 150-200 metres soft sands, clays, silts,

Fe-sandstones overly; • 80 m of limestone and dolomite. • Anhydrite and clay aquitard (5-15 m

thick) rests on the ‘Top of salt’.• Salt sequence typically 400 metres thick,

mainly halite and carnallitite.• Upper 50-100 metres of the salt

sequence contains the sylvinite seams.• The clastic syn-rift sediments of Upper

Jurassic form the FW to the evaporites.

bischofite

Top of salt

Base of salt

anhydrite

10’s metres of carnallitite (<15% K2O)

sylvinte

Evaporite sequence dominated by salt

gam

ma

K2O Mg

Geo

logy

anhydrite

clay

Typical anhydrite sequence: an aquitard

11

11

The Sintoukola Potash Project - PFS study structure

Strategic World Class Potash Project

12

The Sintoukola Potash Project - Mining

• Approx. 20% of world production: Chile, China, Israel, Jordan• Lowest production costs• Large environmental impact• Limited new resources available

Solution Mining

• Approx. 10% of world production: Canada, Russia• Generally conversion from flooded conventional mines• High operating costs, power & water requirements• Amenable to deep deposits

Solar evaporation from brine lakes

Conventional Mining

• Approx. 70% of world production• Lowest environmental impact• Underground Room & Pillar Mining• Maintaining seal between mine workings and overlying aquifer is

critical• Borer Miner or Continuous Miner• Requires ground freezing for shaft sinking

13

The Sintoukola Potash Project - Mining

• Use continuous miners feeding shuttle cars• Underground conveyors to shaft• Convert 573Mt of M&I resource to 152Mt of reserve at 20% K2O• 26% overall extraction ratio• Production of 2Mtpa – 23 mine life with current resource

Selected Conventional Mining

14

The Sintoukola Potash Project - Processing

• In conjunction with evaporation & solution mining• Required for the processing of carnallite• Energy and water intensive

Floatation

• Used in conjunction with conventional mining• Chosen at Sintoukola

Hot or cold crystallization

15

Roads● 30km road to the mine site● 12km road to the process plantProcessing Facility at Coast● Central, scalable process plant located at the coast● Facilitates brine disposal in oceanMaterial Transport● RoM material via 36km overland conveyor to plant (6.8Mtpa)Port● Jetty facility at Tchiboula adjacent to plant● Transship product in barges for 10km to ocean going vesselsInfrastructure ● Power transmission from existing national grid (50MW required –

200MW available)● Water sourced from ocean and aquifer● 80km Gas line for product drying● Employee facilities for approximately 950 people near the process

plantInfrastructure Funding● Pursuing opportunities to fund these infrastructure packages

externally

UP 3.17

UP 5.26

Existing Track 1 (ET1-N6)

Existing Camp

UP 8.01

UP 23.98

UP 13.59

UP 17.09

UP 27.51

Employees Facilities

ElectricalSubstation

UP 33.70

ProcessPlant

Existing Track 2 (ET1-N5)

Existing Track 2 (ET2)Jetty

REPUBLIC OF CONGO

Dougou

TCHIBOULA

LEGEND

Existing RoadsExisting TracksHaulage RoadNew Track Service RoadExisting Tracks UpgradedUnder PassShoreline Buffer ZoneReserve Buffer Zone

UP

The Sintoukola Potash Project - Infrastructure

16

Definitive Feasibility Study

Infrastructure and plant construction

Plant Basic Engineering

PFS-level Technical Report

Phase 2 Mineral Resource Estimation

ESIA Process

Permitting

Shaft and mine construction Mine ramp up

Full production

Plant Production Ramp-up

Detail Engineering Plant Com

Study and Implementation schedule

17

Capital Cost by Discipline ($1.85bn)

Capital and Operating Costs – 2.0 Mtpa mine

NI 43-101 Technical Report, Sintoukola Potash Project, Sep. 17, 2012; available at www.sedar.comNote: Capital estimates exclude sustaining capital costs

Capital Cost by Discipline ($1.85bn)

$27.7

$13.1

$23.5

$1.7$0.6 $5.1

$2.0$6.0

Operating Costs by Discipline ($79.7/ tonne MoP)

Mining HaulingProcess J etty & MarineWaste & Brine Employee FacilitiesGeneral Infrastructure G&A

$353

$116

$536 $125 $42

$47

$98 $59

$252

$204

$20

Capital Cost by Discipline ($1.85bn)

Mine Hauling Process PlantJ etty & Marine Waste & Brine Employee FacilitiesGeneral Infrastructure Owner's Costs ContingencyEPCM Insurance

18

264 392 465

945 950

425 725

1,013 1,211

1,500 1,700

56 65

Ver

de P

otas

h(C

erra

do V

erde

)

Sou

th B

ould

er(C

ollu

li P

otas

h)

Ele

men

tal M

iner

als

(Sin

touk

ola

Pot

ash)

IC P

otas

h(O

choa

)

Alla

na P

otas

h(D

anak

hil P

roje

ct)

Pro

spec

t Glo

bal

Res

ourc

es(H

olbr

ook

Bas

in)

Mag

Indu

strie

s(M

engo

)

BH

P B

illito

n(B

urr)

BH

P B

illito

n(J

anse

n)

Kar

naly

te R

esou

rces

(Wyn

yard

)

Enc

anto

Pot

ash

(Mus

kow

ekw

anP

rope

rty)

K+S

/ P

otas

h O

ne(L

egac

y)

Wes

tern

Pot

ash

(Mile

ston

e)

Mining Methodology Conventional Solution

Min

e D

epth

(m

etre

s)

Open Pit

(1)

Benchmarking Elemental vs. PeersHigh Grade Sylvinite Resource

Shallow Mineral Resources Depth

Capex Comparison

Source: Company Reports, NI 43-101 Technical Report, Sintoukola Potash Project, Sep. 17, 20121. Sulphate of Potash (“SoP”) production

Source: Company Reports, NI 43-101 Technical Report, Sintoukola Potash Project, Sep. 17, 20121. Sulphate of Potash (“SoP”) production

Source: Company Reports, NI 43-101 Technical Report, Sintoukola Potash Project1. Sulphate of Potash (“SoP”) production2. Excludes capital costs of US$530mm due to infrastructure opportunities

25% 23% 22% 21%

10%

18% 17% 16% 11% 11% 9%

11% 9%

BH

P B

illito

n(J

anse

n)

BH

P B

illito

n(B

urr)

IC P

otas

h(O

choa

)

Ele

men

tal M

iner

als

(Sin

touk

ola

Pot

ash)

Enc

anto

Pot

ash

(Mus

kow

ekw

anP

rope

rty)

K+S

/ P

otas

h O

ne(L

egac

y)

Wes

tern

Pot

ash

(Mile

ston

e)

Alla

na P

otas

h(D

anak

hil P

roje

ct)

Sou

th B

ould

er(C

ollu

li P

otas

h)

Mag

Indu

strie

s(M

engo

)

Pro

spec

t Glo

bal

Res

ourc

es(H

olbr

ook

Bas

in)

Kar

naly

te R

esou

rces

(Wyn

yard

)

Ver

de P

otas

h(C

erra

do V

erde

)

Mining Methodology Conventional Solution

K2O

Gra

de (%

)

Open Pit

(1)

$642

$664

$679

$759

$760

$779

$944

$944

$969

$1,035

$1,069

$1,111

$1,196

$1,471

Allana Potash(Danakhil Project)

Prospect Global Resources(Holbrook Basin)

Elemental Minerals(Sintoukola Potash)

IC Potash(Ochoa)

South Boulder(Colluli Potash)

Verde Potash(Cerrado Verde)

Karnalyte Resources(Wynyard)

Elemental Minerals(Sintoukola Potash)

BHP Billiton(Burr)

K+S / Potash One(Legacy)

Encanto Potash(Muskowekwan Property)

MagIndustries(Mengo)

Western Potash(Milestone)

BHP Billiton(Jansen)

Mining Methodology Conventional Solution

US$/

tonn

e of

KCl C

apac

ity

Capacity(Mtpy)

2.0

2.0

0.9

2.0

3.0

2.1

2.0

2.0

2.7

Open Pit

2.8

1.2

2.8

8.0

(1)

1.0

(2)

19

(US$/tonne)

Estimated Potash Developer Cost Curve

Royalties

Freight CostsOperating Costs

(US$/tonne KCl)

Source: Company Reports, Equity Research, NI 43-101 Technical Report, Sintoukola Potash Project, Sep. 17, 2012; available at www.sedar.comNote: Freight and royalties included where available, excludes Saskatchewan Potash Production Taxes1. Figures based on weighted average cost over LOM production2. Includes sales and marketing costs; using Q2 2013 figures3. Includes 2.5% crown royalty and 3.0% Saskatchewan resource surcharge based on US$450/tonne KCl price

Expected Capacity

(Mtpa)

Project

Operating Costs

Freight Costs

Royalties

(1)

Sintoukola’s opex per tonne is the lowest when benchmarked against its peers

Sintoukola Potash Legacy Burr Danakhil Project Milestone Mengo Holbrook Basin Jansen Muskowekwan

Property Ochoa Sevier Lake Project Wynyard Cerrado Verde

$81 $63 $59 $69 $63 $124 $98 $163 $54 $158 $155 $131 $285

-- $49 $59 $30 $60 -- $44 -- $51 $4 -- $45 --

$14 -- -- $24 $10 $16 $20 -- $65 $17 $36 $25 $1

(2)

(3)

(1)

309 309 309 309 309 309 309 309 309 309 # 309 309308 308 308 308 308 308 308 308 308 308 # 308 308307 307 307 307 307 307 307 307 307 307 # 307 307306 306 306 306 306 306 306 306 306 306 # 306 306305 305 305 305 305 305 305 305 305 305 # 305 305304 304 304 304 304 304 304 304 304 304 # 304 304303 303 303 303 303 303 303 303 303 303 # 303 303302 302 302 302 302 302 302 302 302 302 # 302 302301 301 301 301 301 301 301 301 301 301 # 301 301300 300 300 300 300 300 300 300 300 300 # 300 300299 299 299 299 299 299 299 299 299 299 # 299 299298 298 298 298 298 298 298 298 298 298 # 298 298297 297 297 297 297 297 297 297 297 297 # 297 297296 296 296 296 296 296 296 296 296 296 # 296 296295 295 295 295 295 295 295 295 295 295 # 295 295294 294 294 294 294 294 294 294 294 294 # 294 294293 293 293 293 293 293 293 293 293 293 # 293 293292 292 292 292 292 292 292 292 292 292 # 292 292291 291 291 291 291 291 291 291 291 291 # 291 291290 290 290 290 290 290 290 290 290 290 # 290 290289 289 289 289 289 289 289 289 289 289 # 289 289288 288 288 288 288 288 288 288 288 288 # 288 288287 287 287 287 287 287 287 287 287 287 # 287 287286 286 286 286 286 286 286 286 286 286 # 286 286285 285 285 285 285 285 285 285 285 285 # 285 285284 284 284 284 284 284 284 284 284 284 # 284 284283 283 283 283 283 283 283 283 283 283 # 283 283282 282 282 282 282 282 282 282 282 282 # 282 282281 281 281 281 281 281 281 281 281 281 # 281 281280 280 280 280 280 280 280 280 280 280 # 280 280279 279 279 279 279 279 279 279 279 279 # 279 279278 278 278 278 278 278 278 278 278 278 # 278 278277 277 277 277 277 277 277 277 277 277 # 277 277276 276 276 276 276 276 276 276 276 276 # 276 276275 275 275 275 275 275 275 275 275 275 # 275 275274 274 274 274 274 274 274 274 274 274 # 274 274273 273 273 273 273 273 273 273 273 273 # 273 273272 272 272 272 272 272 272 272 272 272 # 272 272271 271 271 271 271 271 271 271 271 271 # 271 271270 270 270 270 270 270 270 270 270 270 # 270 270269 269 269 269 269 269 269 269 269 269 # 269 269268 268 268 268 268 268 268 268 268 268 # 268 268267 267 267 267 267 267 267 267 267 267 # 267 267266 266 266 266 266 266 266 266 266 266 # 266 266265 265 265 265 265 265 265 265 265 265 # 265 265264 264 264 264 264 264 264 264 264 264 # 264 264263 263 263 263 263 263 263 263 263 263 # 263 263262 262 262 262 262 262 262 262 262 262 # 262 262261 261 261 261 261 261 261 261 261 261 # 261 261260 260 260 260 260 260 260 260 260 260 # 260 260259 259 259 259 259 259 259 259 259 259 # 259 259258 258 258 258 258 258 258 258 258 258 # 258 258257 257 257 257 257 257 257 257 257 257 # 257 257256 256 256 256 256 256 256 256 256 256 # 256 256255 255 255 255 255 255 255 255 255 255 # 255 255254 254 254 254 254 254 254 254 254 254 # 254 254253 253 253 253 253 253 253 253 253 253 # 253 253252 252 252 252 252 252 252 252 252 252 # 252 252251 251 251 251 251 251 251 251 251 251 # 251 251250 250 250 250 250 250 250 250 250 250 # 250 250249 249 249 249 249 249 249 249 249 249 # 249 249248 248 248 248 248 248 248 248 248 248 # 248 248247 247 247 247 247 247 247 247 247 247 # 247 247246 246 246 246 246 246 246 246 246 246 # 246 246245 245 245 245 245 245 245 245 245 245 # 245 245244 244 244 244 244 244 244 244 244 244 # 244 244243 243 243 243 243 243 243 243 243 243 # 243 243242 242 242 242 242 242 242 242 242 242 # 242 242241 241 241 241 241 241 241 241 241 241 # 241 241240 240 240 240 240 240 240 240 240 240 # 240 240239 239 239 239 239 239 239 239 239 239 # 239 239238 238 238 238 238 238 238 238 238 238 # 238 238237 237 237 237 237 237 237 237 237 237 # 237 237236 236 236 236 236 236 236 236 236 236 # 236 236235 235 235 235 235 235 235 235 235 235 # 235 235234 234 234 234 234 234 234 234 234 234 # 234 234233 233 233 233 233 233 233 233 233 233 # 233 233232 232 232 232 232 232 232 232 232 232 # 232 232231 231 231 231 231 231 231 231 231 231 # 231 231230 230 230 230 230 230 230 230 230 230 # 230 230229 229 229 229 229 229 229 229 229 229 # 229 229228 228 228 228 228 228 228 228 228 228 # 228 228227 227 227 227 227 227 227 227 227 227 # 227 227226 226 226 226 226 226 226 226 226 226 # 226 226225 225 225 225 225 225 225 225 225 225 # 225 225224 224 224 224 224 224 224 224 224 224 # 224 224223 223 223 223 223 223 223 223 223 223 # 223 223222 222 222 222 222 222 222 222 222 222 # 222 222221 221 221 221 221 221 221 221 221 221 # 221 221220 220 220 220 220 220 220 220 220 220 # 220 220219 219 219 219 219 219 219 219 219 219 # 219 219218 218 218 218 218 218 218 218 218 218 # 218 218217 217 217 217 217 217 217 217 217 217 # 217 217216 216 216 216 216 216 216 216 216 216 # 216 216215 215 215 215 215 215 215 215 215 215 # 215 215214 214 214 214 214 214 214 214 214 214 # 214 214213 213 213 213 213 213 213 213 213 213 # 213 213212 212 212 212 212 212 212 212 212 212 # 212 212211 211 211 211 211 211 211 211 211 211 # 211 211210 210 210 210 210 210 210 210 210 210 # 210 210209 209 209 209 209 209 209 209 209 209 # 209 209208 208 208 208 208 208 208 208 208 208 # 208 208207 207 207 207 207 207 207 208 207 207 # 207 207206 206 206 206 206 206 206 208 206 206 # 206 206205 205 205 205 205 205 205 208 205 205 # 205 205204 204 204 204 204 204 204 208 204 204 # 204 204203 203 203 203 203 203 203 208 203 203 # 203 203202 202 202 202 202 202 202 208 202 202 # 202 202201 201 201 201 201 201 201 208 201 201 # 201 201200 200 200 200 200 200 200 208 200 200 # 200 200199 199 199 199 199 199 199 208 199 199 # 199 199198 198 198 198 198 198 198 208 198 198 # 198 198197 197 197 197 197 197 197 208 197 197 # 197 197196 196 196 196 196 196 196 208 196 196 # 196 196195 195 195 195 195 195 195 208 195 195 # 195 195194 194 194 194 194 194 194 208 194 194 # 194 194193 193 193 193 193 193 193 208 193 193 # 193 193192 192 192 192 192 192 192 208 192 192 # 192 192191 191 191 191 191 191 191 208 191 191 # 191 191190 190 190 190 190 190 190 208 190 190 # 190 190189 189 189 189 189 189 189 208 189 189 # 189 189188 188 188 188 188 188 188 208 188 188 # 188 188187 187 187 187 187 187 187 208 187 187 # 187 187186 186 186 186 186 186 186 208 186 186 # 186 186185 185 185 185 185 185 185 208 185 185 # 185 185184 184 184 184 184 184 184 208 184 184 # 184 184183 183 183 183 183 183 183 178 183 183 # 183 183182 182 182 182 182 182 182 178 182 182 # 182 182181 181 181 181 181 181 181 178 181 181 # 181 181180 180 180 180 180 180 180 178 180 180 # 180 180179 179 179 179 179 179 179 178 179 179 # 179 179178 178 178 178 178 178 178 178 178 178 # 178 178177 177 177 177 177 177 177 177 177 177 # 177 177176 176 176 176 176 176 176 176 176 176 # 176 176175 175 175 175 175 175 175 175 175 175 # 175 175174 174 174 174 174 174 174 174 174 174 # 174 174173 173 173 173 173 173 173 173 173 173 # 173 173172 172 172 172 172 172 172 172 172 172 # 172 172171 171 171 171 171 171 171 171 171 171 # 171 171170 170 170 170 170 170 170 170 170 170 # 170 170169 169 169 169 169 169 169 169 169 169 # 169 169168 168 168 168 168 168 168 168 168 168 # 168 168167 167 167 167 167 167 167 167 167 167 # 167 167166 166 166 166 166 166 166 166 166 166 # 166 166165 165 165 165 165 165 165 165 165 165 # 165 165164 164 164 164 164 164 164 164 164 164 # 164 164163 163 163 163 163 163 163 163 163 163 # 163 163162 162 162 162 162 162 162 162 162 162 # 162 162161 161 161 161 161 161 161 161 161 161 # 161 161160 160 160 160 160 160 160 160 160 160 # 160 160159 159 159 159 159 159 159 159 159 159 # 159 159158 158 158 158 158 158 158 158 158 158 # 158 158157 157 157 157 157 157 157 157 157 157 # 157 157156 156 156 156 156 156 156 156 156 156 # 156 156155 155 155 155 155 155 155 155 155 155 # 155 155154 154 154 154 154 154 154 154 154 154 # 154 154153 153 153 153 153 153 153 153 153 153 # 153 153152 152 152 152 152 152 152 152 152 152 # 152 152151 151 151 151 151 151 151 151 151 151 # 151 151150 150 150 150 150 150 150 150 150 150 # 150 150149 149 149 149 149 149 149 149 149 149 # 149 149148 148 148 148 148 148 148 148 148 148 # 148 148147 147 147 147 147 147 147 147 147 147 # 147 147146 146 146 146 146 146 146 146 146 146 # 146 146145 145 145 145 145 145 145 145 145 145 # 145 145144 144 144 144 144 144 144 144 144 144 # 144 144143 143 143 143 143 143 143 143 143 143 # 143 143142 142 142 142 142 142 142 142 142 142 # 142 142141 141 141 141 141 141 141 141 141 141 # 141 141140 140 140 140 140 140 140 140 140 140 # 140 140139 139 139 139 139 139 139 139 139 139 # 139 139138 138 138 138 138 138 138 138 138 138 # 138 138137 137 137 137 137 137 137 137 137 137 # 137 137136 136 136 136 136 136 136 136 136 136 # 136 136135 135 135 135 135 135 135 135 135 135 # 135 135134 134 134 134 134 134 134 134 134 134 # 134 134133 133 133 133 133 133 133 133 133 133 # 133 133132 132 132 132 132 132 132 132 132 132 # 132 132131 131 131 131 131 131 131 131 131 131 # 131 131130 130 130 130 130 130 130 130 130 130 # 130 130129 129 129 129 129 129 129 129 129 129 # 129 129128 128 128 128 128 128 128 128 128 128 # 128 128127 127 127 127 127 127 127 127 127 127 # 127 127126 126 126 126 126 126 126 126 126 126 # 126 126125 125 125 125 125 125 125 125 125 125 # 125 125124 124 124 124 124 124 124 124 124 124 # 124 124123 123 123 123 123 123 123 123 123 123 # 123 123122 122 122 122 122 122 122 122 122 122 # 122 122121 121 121 121 121 121 121 121 121 121 # 121 121120 120 120 120 120 120 120 120 120 120 # 120 120119 119 119 119 119 119 119 119 119 119 # 119 119118 118 118 118 118 118 118 118 118 118 # 118 118117 117 117 117 117 117 117 117 117 117 # 117 117116 116 116 116 116 116 116 116 116 116 # 116 116115 115 115 115 115 115 115 115 115 115 # 115 115114 114 114 114 114 114 114 114 114 114 # 114 114113 113 113 113 113 113 113 113 113 113 # 113 113112 112 112 112 112 112 112 112 112 112 # 112 112111 111 111 111 111 111 111 111 111 111 # 111 111110 110 110 110 110 110 110 110 110 110 # 110 110109 109 109 109 109 109 109 109 109 109 # 109 109108 108 108 108 108 108 108 108 108 108 # 108 108107 107 107 107 107 107 107 107 107 107 # 107 107106 106 106 106 106 106 106 106 106 106 # 106 106105 105 105 105 105 105 105 105 105 105 # 105 105104 104 104 104 104 104 104 104 104 104 # 104 104103 103 103 103 103 103 103 103 103 103 # 103 103102 102 102 102 102 102 102 102 102 102 # 102 102101 101 101 101 101 101 101 101 101 101 # 101 101100 100 100 100 100 100 100 100 100 100 # 100 10099 99 99 99 99 99 99 99 99 99 # 99 9998 98 98 98 98 98 98 98 98 98 # 98 9897 97 97 97 97 97 97 97 97 97 # 97 9796 96 96 96 96 96 96 96 96 96 # 96 9695 95 95 95 95 95 95 95 95 95 # 95 9594 94 94 94 94 94 94 94 94 94 # 94 9493 93 93 93 93 93 93 93 93 93 # 93 9392 92 92 92 92 92 92 92 92 92 # 92 9291 91 91 91 91 91 91 91 91 91 # 91 9190 90 90 90 90 90 90 90 90 90 # 90 9089 89 89 89 89 89 89 89 89 89 # 89 8988 88 88 88 88 88 88 88 88 88 # 88 8887 87 87 87 87 87 87 87 87 87 # 87 8786 86 86 86 86 86 86 86 86 86 # 86 8685 85 85 85 85 85 85 85 85 85 # 85 8584 84 84 84 84 84 84 84 84 84 # 84 8483 83 83 83 83 83 83 83 83 83 # 83 8382 82 82 82 82 82 82 82 82 82 # 82 8281 81 81 81 81 81 81 81 81 81 # 81 8180 80 80 80 80 80 80 80 80 80 # 80 8079 79 79 79 79 79 79 79 79 79 # 79 7978 78 78 78 78 78 78 78 78 78 # 78 7877 77 77 77 77 77 77 77 77 77 # 77 7776 76 76 76 76 76 76 76 76 76 # 76 7675 75 75 75 75 75 75 75 75 75 # 75 7574 74 74 74 74 74 74 74 74 74 # 74 7473 73 73 73 73 73 73 73 73 73 # 73 7372 72 72 72 72 72 72 72 72 72 # 72 7271 71 71 71 71 71 71 71 71 71 # 71 7170 70 70 70 70 70 70 70 70 70 # 70 7069 69 69 69 69 69 69 69 69 69 # 69 6968 68 68 68 68 68 68 68 68 68 # 68 6867 67 67 67 67 67 67 67 67 67 # 67 6766 66 66 66 66 66 66 66 66 66 # 66 6665 65 65 65 65 65 65 65 65 65 # 65 6564 64 64 64 64 64 64 64 64 64 # 64 6463 63 63 63 63 63 63 63 63 63 # 63 6362 62 62 62 62 62 62 62 62 62 # 62 6261 61 61 61 61 61 61 61 61 61 # 61 6160 60 60 60 60 60 60 60 60 60 # 60 6059 59 59 59 59 59 59 59 59 59 # 59 5958 58 58 58 58 58 58 58 58 58 # 58 5857 57 57 57 57 57 57 57 57 57 # 57 5756 56 56 56 56 56 56 56 56 56 # 56 5655 55 55 55 55 55 55 55 55 55 # 55 5554 54 54 54 54 54 54 54 54 54 # 54 5453 53 53 53 53 53 53 53 53 53 # 53 5352 52 52 52 52 52 52 52 52 52 # 52 5251 51 51 51 51 51 51 51 51 51 # 51 5150 50 50 50 50 50 50 50 50 50 # 50 5049 49 49 49 49 49 49 49 49 49 # 49 4948 48 48 48 48 48 48 48 48 48 # 48 4847 47 47 47 47 47 47 47 47 47 # 47 4746 46 46 46 46 46 46 46 46 46 # 46 4645 45 45 45 45 45 45 45 45 45 # 45 4544 44 44 44 44 44 44 44 44 44 # 44 4443 43 43 43 43 43 43 43 43 43 # 43 4342 42 42 42 42 42 42 42 42 42 # 42 4241 41 41 41 41 41 41 41 41 41 # 41 4140 40 40 40 40 40 40 40 40 40 # 40 4039 39 39 39 39 39 39 39 39 39 # 39 3938 38 38 38 38 38 38 38 38 38 # 38 3837 37 37 37 37 37 37 37 37 37 # 37 3736 36 36 36 36 36 36 36 36 36 # 36 3635 35 35 35 35 35 35 35 35 35 # 35 3534 34 34 34 34 34 34 34 34 34 # 34 3433 33 33 33 33 33 33 33 33 33 # 33 3332 32 32 32 32 32 32 32 32 32 # 32 3231 31 31 31 31 31 31 31 31 31 # 31 3130 30 30 30 30 30 30 30 30 30 # 30 3029 29 29 29 29 29 29 29 29 29 # 29 2928 28 28 28 28 28 28 28 28 28 # 28 2827 27 27 27 27 27 27 27 27 27 # 27 2726 26 26 26 26 26 26 26 26 26 # 26 2625 25 25 25 25 25 25 25 25 25 # 25 2524 24 24 24 24 24 24 24 24 24 # 24 2423 23 23 23 23 23 23 23 23 23 # 23 2322 22 22 22 22 22 22 22 22 22 # 22 2221 21 21 21 21 21 21 21 21 21 # 21 2120 20 20 20 20 20 20 20 20 20 # 20 2019 19 19 19 19 19 19 19 19 19 # 19 1918 18 18 18 18 18 18 18 18 18 # 18 1817 17 17 17 17 17 17 17 17 17 # 17 1716 16 16 16 16 16 16 16 16 16 # 16 1615 15 15 15 15 15 15 15 15 15 # 15 1514 14 14 14 14 14 14 14 14 14 # 14 1413 13 13 13 13 13 13 13 13 13 # 13 1312 12 12 12 12 12 12 12 12 12 # 12 1211 11 11 11 11 11 11 11 11 11 # 11 1110 10 10 10 10 10 10 10 10 10 # 10 109 9 9 9 9 9 9 9 9 9 9 9 98 8 8 8 8 8 8 8 8 8 8 8 87 7 7 7 7 7 7 7 7 7 7 7 76 6 6 6 6 6 6 6 6 6 6 6 65 5 5 5 5 5 5 5 5 5 5 5 54 4 4 4 4 4 4 4 4 4 4 4 43 3 3 3 3 3 3 3 3 3 3 3 32 2 2 2 2 2 2 2 2 2 2 2 21 1 1 1 1 1 1 1 1 1 1 1 1

$96

$112 $118 $122 $133

$140

$162 $163

$179 $191

2.0 2.7 2.0 1.0 2.8 1.2 2.0 8.0 2.8 0.9 0.3

$200

2.1

$170

$286

3.0

20

Summary & Conclusions

● The growing world population underpins strong fundamentals for the potash market

● Price levels are likely to remain high due to the controlled concentration of production and the high barriers to entry

● The Sintoukola Potash Project hosts a significant high grade resource● Strong cost advantages result in excellent project economics: NPV = $2.97bn,

IRR = 29%.● Proven conventional mining, processing and shallow depth ● Excellent location to serve the Brazilian market

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Questions?

22

Appendix

23

PFS Mineral Reserves & Resource Estimate

Strategic World Class Potash Project

Measured Indicated Inferred

Tonnes(Mt) %K2O %KCl Tonnes(Mt) %K2O %KCl Tonnes(Mt) %K2O %KCl

HWS - - - - - - 47 34.8 55.0Upper Seam 171 22.5 35.5 159 22.0 34.89 96 21.8 34.5Lower Seam 93 19.2 30.4 150 19.1 30.17 107 19.1 30.3Footwall Seam 225 17.6 27.9Total 264 21.3 33.7 309 20.6 32.61 475 20.4 32.3

Mineral Resource estimate for sylvinite mineralization only at a 10% K2O cut-off grade (1)

Mineral Resource estimate for sylvinite and carnallitite mineralization at a 10% K2O cut-off grade (1)

Measured Indicated Inferred

Tonnes(Mt) %K2O %KCl Tonnes(Mt) %K2O %KCl Tonnes(Mt) %K2O %KCl

HWS 47 34.8 55.0Upper Seam 245 19.5 30.9 310 17.8 28.1 278 16.3 25.8Lower Seam 313 13.3 21.0 448 13.7 21.8 398 13.1 20.8Footwall Seam 225 17.6 27.9Total 559 16.0 25.4  758 15.4 24.4 948 16.2 25.6

Source: NI 43-101 Technical Report, Sintoukola Potash Project, Sep. 17, 2012; available at www.sedar.com1. Includes resources upgraded to P&P reserves

Mineral Reserve for sylvinite mineralization only at a 10% K2O cut-off grade

Proven Probable Total

Tonnes(Mt) %K2O %KCl Tonnes(Mt) %K2O %KCl Tonnes(Mt) %K2O %KCl

87.9 20.0 31.7 63.8 20.0 31.7 151.7 20.0 31.7

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DisclaimerThis Presentation contains "forward-looking statements" ‘‘forward-looking information’’ within the meaning of applicable Canadian securities legislation. Wherever possible, words such as ‘‘plans’’, ‘‘expects’’, or ‘‘does not expect’’, ‘‘budget’’, ‘‘scheduled’’, ‘‘estimates’’, ‘‘forecasts’’, ‘‘anticipate’’ or ‘‘does not anticipate’’, ‘‘believe’’, ‘‘intend’’ and similar expressions or statements that certain actions, events or results ‘‘may’’, ‘‘could’’, ‘‘would’’, ‘‘might’’ or ‘‘will’’ be taken, occur or be achieved, have been used to identify forward-looking information.

Forward-looking statements in this Presentation may include, but are not limited to, statements regarding: future extraction, methodologies and the exploitation of mineral deposits; capital expenditure requirements; IRR and NPV of the Sintoukola Potash Project; expected production capacity; certain mining assumptions; cost estimates; product market assumptions; market price assumptions; transportation and marketing costs; life of mine production parameters; arable land per capita projections; estimation of Mineral Resources; the Company spending the funds available to it as stated in this Presentation; expectations regarding the Company’s ability to subsequently raise capital; expenditures to be made by the Company to meet certain work commitments; work plans to be conducted by the Company; reclamation and rehabilitation obligation and liabilities; treatment under governmental regulatory regimes with respect to environmental matters; treatment under governmental taxation regimes; government regulation of mining operations; dependence on personnel and competitive conditions.

Forward-looking statements are based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Management believes that the assumptions and expectations reflected in such forward-looking statements are reasonable. Assumptions have been made regarding, among other things: the Company executing its project development plans in accordance with its budgets and planning; feasibility and other studies supporting the Company’s development plans; the Company being able to obtain sufficient financing when required and on reasonable terms; the Company being able to convert existing Mineral Resources into Proven or Probable Mineral Reserves; the Company obtaining required licenses and approvals in a timely manner; applicable environmental and other laws and other regulations not being amended; key management continuing to serve in their respective roles with the Company; title to the Sintoukola Potash Project not being challenged; and no changes occurring to the price of potash that might adversely affect the prospects for developing and operating the Sintoukola Potash Project or which might make it uneconomic to proceed with development.Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including risks related to: no history of mineral production; lack of revenue from operations; dependence on the Sintoukola Potash Project; uncertainty of estimates of Mineral Resources; lack of Proven or Probable Mineral Reserves; projections being materially different than results; challenge of title to the Project; failure to obtain approvals and licenses; adverse regulatory requirements; litigation; mining complexities; construction delays; potential for water ingress; potential for ground water access to Mineral Resources; adverse climate conditions; failure to secure suitable waste disposal permits; inadequate infrastructure; delays in gaining access to land; existence of cultural heritage on lands for which access is required; inability to recruit and retain key employees; unknown environmental risks; uninsurable risks; potential officer and director conflict of interest; inability to secure additional capital; global financial conditions; competition in the mining industry; cyclical demand for potash; weather patterns and natural disasters; volatility in potash prices; political and economic risks in the ROC; entitlement of the Congolese government to a stake in the Sintoukola Potash Project; enforcement of contractual rights in the ROC; exchange rate fluctuations; repatriation of funds; failure to declare funds prior to bringing them into the ROC; opposition from non-governmental organizations; lack of dividends; volatility and lack of liquidity of ordinary shares of the Company. Although the forward-looking statements contained in this Presentation are based upon what management of the Company believes are reasonable assumptions, the Company cannot assure investors that future performance and actual results will be consistent with these forward-looking statements. The Company, its directors, officers, agents, employees or advisors, do not represent, warrant or guarantee, expressly or impliedly, that the information in this Presentation is complete or accurate. To the maximum extent permitted by law, the Company disclaims any responsibility to inform any recipient of this Presentation or any matter that subsequently comes to its notice which may affect any of the information contained in this Presentation. These forward-looking statements are made as of the date of this Presentation and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise them to reflect new events or circumstances.

25

This Presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall it or any part of it form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever in any jurisdiction. Recipients of this Presentation who are considering acquiring securities of the Company are reminded that any such purchase or subscription must not be made on the basis of the information contained in this Presentation but are referred to the entire body of publicly disclosed information regarding the Company.

The information contained in this Presentation is derived solely from otherwise publicly available information concerning the Company and does not purport to be all-inclusive or to contain all the information that an investor may desire to have in evaluating whether or not to make an investment in the Company. The information is qualified entirely by reference to the Company’s publicly disclosed information. This Presentation is being supplied to you solely for your information and may not be reproduced, further distributed or published in whole or in part by any other person. Neither this Presentation nor any copy of it may be taken or transmitted into or distributed in Canada, the United States or any other jurisdiction which prohibits the same except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of applicable securities laws.

No representation, warranty or guarantee express or implied, is made or given by or on behalf of the Company or any of their subsidiary undertakings or any of the directors, officers, employees or advisors of any such entities as to the accuracy, completeness or fairness of the information or opinions contained in this Presentation (or of any other written or oral information made or to be made available to any interested party or its advisors) and, to the fullest extent permitted by law, no responsibility or liability, howsoever arising, is accepted by any person for such information or opinions.  In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the attendees with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation that may become apparent.  The information and opinions contained in this Presentation are provided as at the date of this Presentation.  The contents of this Presentation are not to be construed as legal, financial or tax advice. Each prospective investor should contact his, her or its own legal adviser, independent financial adviser or tax adviser for legal, financial or tax advice. In particular, any estimates or projections or opinions contained in this Presentation necessarily involve significant elements of subjective judgment, analysis and assumptions and each recipient should satisfy itself in relation to such matters.

Competent Person / Qualified Person Statement: All scientific or technical information, including information that relates to exploration results and minerals resources (“Information”) in this press presentation is based on information prepared and/or approved by Andrew Scogings, MSc, MAusIMM, MAIG, PhD (CSA), Jean Hector, Senior Geologist (EGIS), Jane Joughin, Pr.Sci.Nat., MSc (SRK), Johan Boshoff, MEng, P.Eng. (SRK), Neal Rigby, CEng MIMMM, PhD (SRK), Paul O’Hara, P.Eng. (AMEC) and Simon Dorling, MSc, MAIG, PhD (CSA) (collectively, the “Qualified Persons”), each of whom are independent of the Company and have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code) and as a Qualified Person for the purposes of Canadian National Instrument 43-101. Each of the Qualified Person consents to the inclusion in this press presentation of the Information, in the form and context in which it appears.

Further information respecting Elemental’s Sintoukola Potash Project and the PFS is contained in a technical report entitled ‘‘NI 43-101 Technical Report, Sintoukola Potash Project, Republic of Congo’’ dated September 17, 2012 with an effective date of September 17, 2012 (the “Technical Report”). The Technical Report can be accessed on the Company’s profile on SEDAR.

Disclaimer cont’d

26

CanadaThis document may only be provided, and offers and sales may only be concluded in Canada, with or to, persons that are “accredited investors” as defined in National Instrument 45-106 – Prospectus and Registration Exemptions. This document is not, and under no circumstances is it to be construed as, an offer to sell the securities described herein or a solicitation of an offer to buy the securities described herein in any jurisdiction in Canada where the offer or sale of these securities is prohibited. This document is not, and under no circumstances is it to be construed as, an advertisement or a public offering in Canada of the securities referred to in this document. No securities commission or similar regulatory authority in Canada has reviewed or in any way passed upon this document or the merits of the securities described herein and any representation to the contrary is an offence. United KingdomNeither the information in this document nor any other document relating to the offering described herein has been delivered for approval to the Financial Services Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Markets Act 2000, as amended ("FSMA")) has been published or is intended to be published in respect of the securities described herein. This document is issued on a confidential basis to "qualified investors" (within the meaning of section 86(7) of FSMA) in the United Kingdom, and the securities referenced herein may not be offered or sold in the United Kingdom by means of this document, any accompanying letter or any other document, except in circumstances which do not require the publication of a prospectus pursuant to section 86(1) FSMA. This document should not be distributed, published or reproduced, in whole or in part, nor may its contents be disclosed by recipients to any other person in the United Kingdom. Any invitation or inducement to engage in investment activity (within the meaning of section 21 of FSMA) received in connection with the issue or sale of the securities described herein has only been communicated or caused to be communicated and will only be communicated or caused to be communicated in the United Kingdom in circumstances in which section 21(1) of FSMA does not apply to the Company. In the United Kingdom, this document is being distributed only to, and is directed at, persons (i) who have professional experience in matters relating to investments falling within Article 19(5) (investment professionals) of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 ("FPO"), (ii) who fall within the categories of persons referred to in Article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the FPO or (iii) to whom it may otherwise be lawfully communicated (together "relevant persons"). The investments to which this document relates are available only to, and any invitation, offer or agreement to purchase will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. United StatesThis document may not be released or distributed in the United States or to U.S. persons (as defined under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”)) (“U.S. Persons”) or to persons acting for the account or benefit of U.S. Persons, except to persons that satisfy the requirements set forth in Rule 501(a)(1), (2), (3) or (7) of Regulation D. This document does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States or to, or for the account or benefit of, any U.S. Persons except to persons that satisfy the requirements set forth in Rule 501(a)(1), (2), (3) or (7) of Regulation D. The securities described herein have not been, and will not be, registered under the U.S. Securities Act or the securities laws of any state or other jurisdiction of the United States. Accordingly, the securities described herein may not be offered or sold, directly or indirectly, in the United States or to, or for the account or benefit of U.S. Persons , unless they have been registered under the U.S. Securities Act, or are offered and sold in a transaction exempt from, or not subject to, the registration requirements of the U.S. Securities Act and any other applicable state securities laws. 

Disclaimer cont’d