saksrithai potash project - vatic ventures...

Saksrithai Potash Project

Exploring in Thailand’s Khorat Basin, the world’s largest undeveloped high-grade potash resources

June 2018

Disclaimer and Forward Looking Statements

Information included in this presentation is forward-looking and is subject to uncertainties and risks. The results or events predicted in this presentation may differ materially from actual results or events.

Such information is sometimes accompanied by words such as “project”, “potential”, “estimate”, or similar statements. The proposed Saksrithai project is an exploration project and, as yet, there are no demonstrated potash resources within the project area.

No assurance can be given that actual results, performance, achievements or values expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them.

www.vaticventures.com

A Canadian exploration company active in Thailand’s Khorat Basin, which hosts the world’s largest undeveloped high-grade potash resources. Experienced proven management, directly responsible for the acquisition, financing and development of Thailand’s first commercial potash discovery at Udon Thani, in northeast Thailand, in the mid-90s. Has an 80% interest in Saksrithai Developments Ltd., a Thai company which holds two potash exploration licenses in Nakhon Ratchasima province, covering 32 km2. Project located in close proximity to the continually growing SE Asian markets and adjacent to a potash mine currently under construction. Management’s extensive exploration experience, access to regional geological data and information available from the adjacent project, enables accelerated exploration schedules and reduced project costs. Exploration is ongoing and initial drilling is imminent, with continuous anticipated news flow thereafter.

Company and Project Overview



Share Structure as at June 2018

Issued Shares and Warrants

23,477,035 Total Issued Shares 2,385,952 exercisable at $0.45 until Oct. 2018

1,716,111 exercisable at $0.45 until Mar. 2019

102,166 exercisable at $0.225 until Mar. 2019

3,399,188 exercisable at $0.30 until Feb. 2019

3,510,000 exercisable at $0.30 until Feb./Mar./Apr. 2019

5,121,713 exercisable at $0.39 until Apr. 2021

16,235,162 Total Warrants

39,712,197 Fully Diluted

Listings Symbol TSX Venture VCV

Frankfurt V8V3

OTC Pink VTTCD

Executive Management and Directors


GERALD WRIGHT Chief Executive Officer, Director Dr. Wright is a Professional Engineer (Province of BC) and holds a Doctorate in Engineering from Queen’s University, Belfast. He was co-founder of the Crew Group of Companies and has over 30 years’ experience in the minerals exploration and development industry in Asia, North America, Europe and Africa, serving as a Senior Officer and Director of a number of public and private companies. He has extensive experience and knowledge of the global potash industry and, in particular, the potash resources underlying Thailand’s Khorat Plateau. He served as Chief Executive Officer of Asia Pacific Resources Ltd. for 12 years, in which capacity he was directly responsible for the acquisition, financing and development of that company’s Udon Thani project which is Asia’s most significant commercial potash discovery to date. He has been Chief Executive Officer of Vatic since 2017. NASIM TYAB Director Mr. Tyab is an entrepreneur and financier with over 20 years experience in the international capital markets. Co-founder and a director of Mohave Exploration & Production Inc. from 2006 to 2010, an oil & gas company which amalgamated with Porto Energy Corp raising $100 million. Co-founder of MYM Neutraceuticals and Commitment Capital Corp. (HOOS Corp.) Director of Oracle Energy Corp. He has been a director of Vatic since 2011. THOMAS WILSON CPA-CA Chief Financial Officer, Director Mr. Wilson has over 35 years of corporate experience in all areas of financial management and administration including corporate governance, government and securities compliance and financial administration, for both public and private companies. Within the mining sector, he has been CFO for the following companies: Quadro Resources Ltd., ICN Resources Ltd., Paragon Minerals Corporation. Previously, Mr. Wilson was the VP/Treasurer of Cellfor Inc.; the CFO for Quest University; Corporate Controller for MDSI; and Senior Manager at MacMillan Bloedel Limited. He has been CFO of Vatic since 2011 and a director since 2017.

Non-Executive Directors


ANTHONY CLEMENTS Non-Executive Director Mr. Clements is a former investment banker with Fox Davies Capital Limited, a London-based firm specializing in financing both mining and oil and gas corporations. He began his career focused on natural resources, having gained a B.Sc. in Economics from the University of London followed by a post-graduate course in accountancy. In 1970, he joined the Electricity Council Pension Fund as Senior Investment Analyst and in 1973 moved to the Post Office Pension Fund (Postel Investment Management), later named Hermes Investment Management, where he managed the company’s resource portfolio including the multi-billion dollar North American portfolio. In 1987 he moved to the sales side of the investment industry, specifically in corporate finance with particular emphasis on Australian and North American resource issuers, working with several firms, including T. Hoare and Co. and Yorkton Securities Inc. – a leading Canadian Investment Bank specializing in resource issues. From 2001 until 2010 Mr. Clements was Head of Corporate Finance at ODL Securities. Mr. Clements has acted as an advisor to numerous natural resource companies and has served as a director of several resource companies. He is a director of Aton Resources Inc. He has been a director of Vatic since 2017. T. BARRY COUGHLAN Non-Executive Director Mr. Coughlan is a Vancouver based businessman and financier who for over 30 years has been involved in the financing of publicly traded companies. He has been involved in the financing of over thirty private companies and their subsequent listings on North American Stock Markets. He has been employed as a Stock Broker in New York City, Toronto and Vancouver, and has extensive knowledge of both local and international financial markets. He is presently a director of five publicly traded companies and was previously a director of Taseko Mines Ltd., Great Basin Gold Ltd., Farallon Mining Ltd., and Continental Minerals Corp. He is the Executive Chairman of Mineral Mountain Resources Ltd. He is also the CEO of Quadro Resources Ltd. He has been a director of Vatic since 2011. MATTHEW MIKULIC Non-Executive Director Mr. Mikulic was a director of Lucky Strike Resources Ltd. from December 2009 to December 2010. He has been a director of Vatic since 2011.

The Global Potash Industry


Potash is an essential plant nutrient, one of the three required fertilizers for crops such as rice, wheat and palm oil.

Potash is produced from a number of potassium bearing ores, such as sylvinite and carnallite, by conventional underground mining, evaporation from brine lakes or solution mining.

The present annual world production of potash is about 60 million tonnes KCl, with an annual growth rate of about 2.4%. Projected annual growth rate in SE Asia is approximately 5% over the next decade.

The major producing countries include Canada, Russia, Belarus, and Germany, which combine for 80% of world production. The industry’s five top producing companies account for 80% of world production. Thailand’s Khorat basin hosts the largest commercially viable potash deposits discovered in Asia, the world’s largest potash importing region, with annual imports exceeding 17Mt KCl.

Major exporter Major importer

Khorat Basin

E Asia China

India SE Asia

Brazil

Canada

USA

Mid East

Russia Belarus W Europe

Potash Production and Trade


Potash in Thailand

Thailand’s Khorat basin is the world’s largest undeveloped potash deposit, hosting extensive high-grade potash resources.

The shallow depth to the potash deposits results in lower capital and operating costs than most proposed developments.

Thailand’s proximity to key potash markets results in significantly lower transportation costs to regional markets.

Thailand enjoys excellent regional infrastructure, including electrical power and transportation, and is a strategic location, with access to key regional markets.

In 2014, the Ministry of Industry set up a special steering committee to promote the development of the country’s potash resources. Mining licenses have since been approved for two projects in the country, with license pending for the third. Since 2016, several new exploration licenses have been granted, making it an active potash exploration country.


The Khorat Evaporite Basin

The Khorat Plateau lies in northeast Thailand, extending into Laos. Located at an elevation of some 200 meters above sea level, the plateau covers an area of 130,000 km2. The plateau is underlain by the Khorat evaporite basin, which is estimated to contain several billions of tonnes of high-grade sylvinite (up to 40% KCl) and carnallite minerals, overlain by layers of clay-stone and halite. The potash deposits are gently dipping and at shallow depth (150 to 350 m), providing substantial savings in project capital costs. A number of projects are currently under development in the Khorat basin, including in Thailand: the ASEAN Potash Chaiyaphum Plc Bamnet Narong project (Chaiyaphum), Thai Kali Co. (Nakhon Ratchasima) and Italian-Thai Development Plc (Udon Thani). New exploration license holders include: Rong Pang Mining, Sahachart Setthakit, and International Petroleum Group.


Potash Licenses in Thailand


Upper clastics (<140 m)

Middle clastics (<40 m)

Lower clastics (<40 m)

Upper Salt (<5 m)

Middle salt (<80 m)

Lower salt (200+ m)

Potash stratum

Silvinite ore - Udon Thani

Typical Stratigraphy


Regional Geology


Projects under Development in Thailand

Bamnet Narong project - ASEAN Potash Chaiyaphum Plc. Planned Production level: 1.1 million tonnes per annum, estimated potash grade: 18% KCl. EIA approved and mining licenses granted. Udon Thani project – Italian-Thai Development Plc. Planned Production level: 2.0 million tonnes per annum, est. potash grade: 40% KCl. EIA approved and mining licenses applied for. Dan Khun Thot project - Thai Kali Co. Ltd. Planned Production level: 0.5 million tonnes per annum, estimated potash grade: 21.5% KCl. EIA approved, mining licenses granted. Currently under construction. Saksrithai project – Vatic Ventures Corp. Exploration stage project, exclusive exploration licenses granted (32 km2). Project commenced March 2017: seismic completed, drilling imminent.


Khorat Basin, Northeast Thailand

Italian-Thai LAOS

THAILAND APOT

Thai Kali Saksrithai

The Saksrithai Potash Project

In 2015, two exclusive exploration licenses were issued to Saksrithai Development Co. Ltd. (Saksrithai). The licenses have an initial term of 5 years; such licenses may not be transferred to a third party. In early-2017, Vatic acquired an 80% interest in Saksrithai, providing full security of tenure over the licenses and control of the project development. The license area comprises 32 km² in Nakhon Ratchasima province, northeast Thailand, some 270 km from Bangkok. The ASEAN Potash Chaiyaphum Plc Bamnet Narong project, also under construction, is located some 45 km from the Saksrithai project. The (Phase 1) resource evaluation phase, comprising the initial seismic survey, geological survey and interpretation, baseline environmental studies and local community programs, commenced March 2017. The initial diamond-drilling program is imminent.


Ongoing and Proposed Exploration Programs

The main contractors include Geocon Co. Ltd. (seismic) and Aztec Engineering Co. Ltd. (drilling), proven contractors with over 30 years of experience of potash developments in Thailand and Laos. The initial seismic survey was completed by early-2017 and the raw site data was processed by Velseis. The initial diamond-drilling program is planned for mid-2018. Phase 1 (budget approx. $1.5 million) over 15-18 months, is aimed at quantifying a potash resource, leading to a pre-feasibility study and resource estimate. Phase 2 (budget approx. $5 million) will include additional seismic and drilling programs, EIA, mining, processing, transportation and marketing studies, leading to a bankable feasibility study and defined potash reserve.



Seismic Survey 2017 – 28 line-km


Seismic Data Interpretation

Initial review of the data demonstrates structural continuity with the adjacent Dan Khun Thot potash project, which is presently under construction. The seismic data indicate a number of areas where the reflectors are relatively horizontal and these areas will be the focus for the initial drill holes. Some post-depositional domal structures are evident within the license block and other projects within the Khorat basin have shown that the presence of such structures can lead to enrichment of the potash grade in the surrounding area. This seismic data will form the basis for planning the hole locations for the Phase 1 drilling program. The initial drill holes will enable calibration of the seismic data to give more detailed information regarding depth and thickness of the underlying structures. In addition, up to 15 line-km of additional seismic survey is planned.


3D representation of the recently completed seismic survey showing drill targets (across)

Results From Initial Seismic Survey


Results From Initial Seismic Survey

Areas identified as initial drilling targets

Marketing Strategy

“Global scarcity is not the issue with potash – transportation costs are”

USGA - Technical announcement - March 3, 2015

Thailand is strategically located relative to the growing potash markets of SE Asia. The company’s marketing strategy will focus on meeting the increasing demand of the ASEAN counties of Thailand, Indonesia, Malaysia and Vietnam. These four countries consume about 75% of Asian potash imports (excl. China and India) and have a current demand exceeding 5 million tonnes KCl per annum, rising at an estimated 5% annually. Rice and palm oil cultivation account for some 70% of potash usage in the SE Asia region. Indonesia and Malaysia are the world’s largest producers of palm oil, while Thailand and Vietnam are among the world’s leading producers of rice. Proximity to these growing markets, combined with convenient and flexible transportation options, provide significant transportation cost advantages (up to $60.00 per tonne) over Canadian and European suppliers to the region.


China

India

Japan

Indonesia

The Philippines

Myanmar

Malaysia

Vietnam

Laos

Thailand Cambodia

Australia 1,000 km

Khorat Basin

Korea

.

Southeast Asian Markets



Asian Potash Demand – excl. China, India & Middle East

Appendix 1 – Potash Grades for Proposed Projects

Country Project Developer Average Grade Laos Lao Kaiyuan (Khammouane) 17.4% KCl Vinachem (Khammouane) 17.0% KCl Canada Western Resources (Milestone) 21.0% KCl Karnalyte Resources (Saskatchewan) 18.0% KCl Congo Mag Industries (Mengo) 17.3% KCl Kore Potash Ltd. (Kola) 33.0% KCl Spain Highfield Res. (Muga) 18.0% KCl Eritrea Danakali Res. (Colluli) 16.4% KCl Thailand Italian-Thai (Udon Thani) 40.0% KCl Thai Kali Co. Ltd. (Nakhon Ratchasima) 21.5% KCl APOT (Chaiyaphum) 15.7% KCl


Appendix 2 – Market Cap Junior Potash Companies


Company Location Share price # shares Market Cap TSX-listed companies Encanto Potash Saskatchewan $ 0.050 440 mil $ 22 mil Karnalyte Resources Saskatchewan $ 0.50 28 mil $ 14 mil Potash Ridge Utah $ 0.105 187 mil $ 20 mil Western Resources Saskatchewan $ 0.415 93 mil $ 37 mil ASX-listed companies Danakali Resources Eritrea A$ 0.715 247 mil A$ 180 mil Highfield Resources Spain A$ 0.925 329 mil A$ 304 mil Kore Potash Congo A$ 0.10 771 mil A$ 77 mil NYSE-listed companies Intrepid Potash United States US$ 3.46 130 mil US$ 452 mil AIM-listed companies Sirius Minerals England £ 0.30 4.69 bil £ 1.42 bil

Corporate Contact

Corporate Office Shareholder Contact Vatic Ventures Corp. Nasim Tyab 1500-1040 West Georgia Street Email: [email protected] Vancouver, BC, V6E 4H1, Canada Tel. +1 (778) 373-6972


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