Agreement with Nutri-Aid Trust, Zambia

African Potash Limited / Index: AIM / Epic: AFPO / Sector: Mining

13 July 2016

African Potash Limited ('African Potash' or 'the Company')

Agreement with Nutri-Aid Trust, Zambia

African Potash, the AIM listed exploration company focused on the vertical integration of fertiliser operations in Africa and Sub-Saharan potash assets, announces that it signed a co-operation and exclusivity agreement with Nutri-Aid Trust ('Nutri-Aid') in May 2016 (the "Agreement"). Nutri-Aid is a Zambian non-profit enterprise, which has been pioneering work in developing and supporting a village level agri-dealer network across the country.

Under the Agreement African Potash will provide assistance to Nutri-Aid's supply network, which includes over 2,500 agro-outlets certified by COMESA ACTESA and managed by Nutri-Aid (serving on average 300 farmers each) ('the Outlets') with fertiliser. The Agreement also stipulates that African Potash will (subject to contract) sell urea and other fertiliser products to the Outlets at a competitive price.

The initial delivery was made on 10 July 2016 and from this, and subsequent sales by the Company to the Outlets made over the following days, revenues of approximately $50,000 have been generated. These revenues will be used for payments to the Company's suppliers.

African Potash Executive Chairman Chris Cleverly said: "We are delighted to have signed this agreement with Nutri-Aid, which gives African Potash access to sales outlets for small holder farmers. I am pleased to report that initial revenues have already been generated and funds received. We are laying the foundations for growth and I look forward to keeping shareholders updated with our progress."

About Nutri-Aid

Nutri-Aid is a consortium (made up of Frontier Associates, Farmer Organisation (FOSUP) and Women in Agribusiness in sub-Saharan Africa (WASSA)), which is committed to implementing the SAIOMA (Strengthening Agricultural Input and Output Markets) initiative that has been launched by the United States Agency for International Development and the Alliance for a Green Revolution in Africa.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain

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For further information visit www.africanpotash.com or contact the following:

About African Potash

African Potash is an AIM quoted company focussed on building a vertically integrated platform for the mining, production and distribution of fertiliser, primarily within Africa.

The Company has a trading agreement with the Common Market for Eastern and Southern Africa ('COMESA'), a free trade union for twenty African member states, to supply and deliver fertiliser to off-takers identified and introduced by COMESA.

The Company also operates the Lac Dinga Project in the Republic of Congo, which is prospective for potash.