Half Yearly Report

OPERATING AND FINANCIAL REVIEW

Operations

The Company's primary focus during the period continued to be the advancement of the Lake Wells' Project, located in the Northern Goldfields of Western Australia approximately 200km north of Laverton. The Project comprises 1,126 km2 of Exploration Licences, substantially covering the Lake Wells Playa and the area immediately contiguous to the Lake. The Project has potential to host a large, high grade salt lake brine project to produce highly sought after Sulphate of Potash (SOP) for domestic and international fertiliser markets.

Highlights

Highlights during the half year and since the end of the half year include:

· Initial Shallow Core Drilling Program: a program of 32 shallow hollow auger core holes was completed over the entire surface of the Lake, forming the basis of the maiden resource estimate.

· Maiden JORC Resource Estimate for Lake Wells: the Company completed its maiden JORC Mineral Resource estimate for the Lake Wells Project, totalling 29 million tonnes (Mt) of Sulphate of Potash (SOP) with approximately 80% in the 'Measured' category with excellent brine chemistry of 4,009 mg/L Potassium (K), 19,175 mg/L (SO4). The resource is calculated only on the upper 16 metres of the Lake, with mineralisation remaining open at depth across most of the Lake.

· Completion of Deeper Air Core Drill Program: 27 air core drill holes for a total of 1,697m were drilled over the entire surface of the Lake. An average drill depth of 63m (ranging from 15m-126m) was achieved, confirming continuation of the brine pool at depth. The majority of holes ended in high grade brine, and the brine pool remains open at depth. The successful air core program identified permeable rock units (aquifers) at the base of the brine saturated sedimentary sequence, potentially representing a productive aquifer for brine extraction by pumping from bores, a very encouraging result.

· Deeper Resource Estimate: The expanded Mineral Resource Estimate (MRE) at Lake Wells totals 80-85 million tonnes of SOP, representing an additional 51-56 Mt of Inferred Resource calculated in the strata below the previously reported shallow Resource of 29 Mt.

· The increased SOP Resource estimate at Lake Wells provides further confirmation of the outstanding potential of the Project. The following activities are currently underway or commencing shortly:

Ø Laboratory and field evaporation trials on bulk brine samples to define the evaporation patterns, estimate the salting points of mixed salts and predict the conditions for production of schoenite salt (a key step in the production of SOP).

Ø Further drilling to improve the geological and hydrological model at Lake Wells, including pump testing of 3 aquifer units and measuring the hydraulic properties (flow rates and transmissivity) of the aquifers hosting the brine.

Ø A Scoping Study on the Lake Wells Project incorporating the upgraded Resource.

Lake Wells Project

The Lake Wells Project is located in the Northern Goldfields of Western Australia approximately 200 km north of Laverton. The area is well sourced by existing infrastructure, including the Great Central Road, the Goldfields Highway, the Goldfields gas pipeline and the railway sidings at Malcolm and Leonora.

The Lake Wells Project comprises 1,126 km2 of Exploration Licences covering the Lake Wells Playa, and substantial area immediately contiguous to Lake Wells.

The total Resource Estimate of 80-85 Mt is hosted within approximately 24.7 billion cubic metres of rock with an average thickness of 52 metres, beneath 477 km2 of Playa Lake surface. Excellent brine chemistry featuring very high consistency both laterally and at depth, with an average concentration equivalent to 8.74 kg SOP per cubic metre of brine.

The Mineral Resource estimate is based on an average thickness of 52 metres and a total brine pool of 9.7 billion cubic metres. The brine pool remains open at depth and laterally in a number of areas.

Table 1: Lake Wells Project - Mineral Resource Estimate (JORC 2012)

Note: Using an assumed Porosity of 0.30 for the Fractured Siltstone Aquifer

OTHER PROJECTS

The Company also holds exploration licences and/or applications covering all or parts of Lake Irwin and Lake Minigwal and Lake Ballard in Western Australia (see Figure 1), Lake Lewis in the Northern Territory and Lake Macfarlane and Island Lagoon in South Australia.

The Company is compiling and assessing available data on these properties to allow an initial assessment of their prospectively for large scale Sulphate of Potash production from brines.

The Company has completed its initial review of the Golden Eagle Uranium and Vanadium Project (GEU) which is located in the USA. Based on the available information, current economic conditions and the price of uranium it is not viable for the Company to undertake any further exploration activities at this time. The Company is assessing its options to extract the best value for shareholders for its interest in the GEU Project. The project's restated carrying value at 30 June 2015 of $295,674 has been fully impaired as at 31 December 2015.

CORPORATE 

The Company changed its name from Wildhorse Energy Limited to Salt Lake Potash Limited and its ASX/AIM code to "SO4".

Results of Operations

Net operating loss after tax from continuing operations for the half year ended 31 December 2015 was $2,243,717 (31 December 2014 (restated): $395,770).

(i) Exploration and evaluation expenses were $1,440,733 (restated 31 December 2014: $67,823), which is attributable to the Group's accounting policy of expensing exploration and evaluation expenditure incurred by the Group subsequent to the acquisition of the rights to explore and up to the final investment decision to commence construction for each separate area of interest; and

(ii) Business development expenses increased to $76,648 (31 December 2014: nil) which is attributable to additional business development and investor relations activities required to support the growth and development of the Lake Wells Project.

Financial Position

At 31 December 2015, the Company had cash reserves of $1,248,199 (30 June 2015: $3,172,363) and net assets of $3,352,733 (30 June 2015 (restated): $5,542,742). The Company is in a strong financial position to conduct its current and planned exploration and development activities.

SIGNIFICANT POST BALANCE DATE EVENTS

Other than as disclosed below, at the date of this report there were no significant events occurring after balance date requiring disclosure.

(i) On 22 February 2016, the Company announced an updated Mineral Resource at Lake Wells totalling 85 million tonnes of SOP.

AUDITOR'S INDEPENDENCE DECLARATION

Section 307C of the Corporations Act 2001 requires our auditors, Ernst & Young, to provide the directors of Salt Lake Potash Limited with an Independence Declaration in relation to the review of the half year financial report. This Independence Declaration is attached to and forms part of this Directors' Report.

Signed in accordance with a resolution of the Directors.

MATTHEW SYME

Director

11 March 2016

DIRECTORS' DECLARATION

In the opinion of the Directors of Salt Lake Potash Limited:

1. the interim consolidated financial statements comprising the statement of profit or loss and other comprehensive income, statement of financial position, statement of cash flows, statement of changes in equity and notes set out on pages 10 to 15 are in accordance with the Corporations Act 2001 including:

1. giving a true and fair view of the financial position of the consolidated entity as at 31 December 2015 and of its performance and cash flows for the six months ended on that date; and

2. complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001; and

2. subject to the matters disclosed in note 1(b), there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of Directors:

MATTHEW SYME

Director

11 March 2016

Competent Persons Statement

The information in this Report that relates to Mineral Resources for Lake Wells, is extracted from the reports entitled 'Lake Wells Resource Increased By 193 Percent to 85Mt of SOP' dated 22 February 2016 and 'Significant Maiden SOP Resource of 29Mt at Lake Wells' dated 11 November 2015 and is available to view on the Company's website www.saltlakepotash.com.au. The information in the original ASX Announcement that related to Exploration Results for Lake Wells based on information compiled by Mr Ben Jeuken, who is a member Australian Institute of Mining and Metallurgy. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr Jeuken has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Jeuken consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

The information in this Report that relates to Exploration Results for Lake Wells, is extracted from the reports entitled 'Aircore Drilling Confirms Deeper Potential At Lake Wells' dated 23 November 2015, 'Successful Shallow Core Drilling Completed at Lake Wells' dated 22 September 2015 and 'Wildhorse Acquires Two Large Scale High Grade Sulphate Of Potash Brine Projects' dated 9 April 2015 and is available to view on the Company's website www.saltlakepotash.com.au. The information in the original ASX Announcement that related to Exploration Results for Lake Wells based on information compiled by Mr Ben Jeuken, who is a member Australian Institute of Mining and Metallurgy. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr Jeuken has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Jeuken consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE HALF YEAR ENDED 31 DECEMBER 2015

Notes:

* Refer to note 1(d) for details of the restatement due to the change in Exploration and Evaluation accounting policy.

The above Consolidated Statement of Profit or Loss and other Comprehensive Incomeshould be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2015

Notes:

* Refer to note 1(d) for details of the restatement due to the change in Exploration and Evaluation accounting policy.

The above Consolidated Statement of Financial Position

should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE HALF YEAR ENDED 31 DECEMBER 2015

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE HALF YEAR ENDED 31 DECEMBER 2015

Notes:

* Refer to note 1(d) for details of the restatement due to the change in Exploration and Evaluation accounting policy.

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2015

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Statement of Compliance

The interim consolidated financial statements of the Group for the half year ended 31 December 2015 were authorised for issue in accordance with the resolution of the directors on 11 March 2016.

The interim consolidated financial statements for the half year reporting period ended 31 December 2015 have been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001.

This half year financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report of Salt Lake Potash Limited for the year ended 30 June 2015 and any public announcements made by Salt Lake Potash Limited and its controlled entities during the half year reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

(b) Basis of Preparation of Half Year Financial Report

The financial statements have been prepared on an accruals basis and are based on historical cost. All amounts are presented in Australian dollars.

The financial statements for the half-year have been prepared on the basis of going concern, which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business.

For the half year ended 31 December 2015, the Group incurred a net loss of $2,243,717 (31 December 2014: $854,663) and had net cash outflows from operating and investing activities of $1,924,353 (31 December 2014: $416,038). As at 31 December 2015, the Group had cash and cash equivalents of $1,248,199 (30 June 2015: $3,172,313) and net current assets of $1,060,721 (30 June 2015: $2,976,534).

Subject to results of ongoing exploration programs at the Company's SOP projects, the Consolidated Entity plans to raise additional capital within the next 12 months to fund its planned operations. The Directors are satisfied that they will be able to raise additional capital when required to enable the Consolidated Entity to meet their obligations as and when they fall due, and accordingly, consider that it is appropriate to prepare the financial statements on a going concern basis.

Should the Company and Consolidated Entity be unable to achieve the matters referred to above, there is material uncertainty whether the Consolidated Entity could continue as a going concern and therefore, whether it would be able to realise its assets and extinguish its liabilities in the normal course of business.

These interim consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or to the amounts and classification of liabilities that might be necessary should the Consolidated Entity be unable to continue as a going concern.

(c) New Accounting Standards

In the current period, the Group has adopted all of the new and revised standards, interpretations and amendments that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July 2015. New and revised standards and amendments thereof and interpretations effective for the current half-year that are relevant to the Group include:

· AASB 1 First-time Adoption of Australian Accounting Standards (meaning of 'effective IFRSs');

· AASB 2 Share-based Payment (definitions of vesting conditions);

· AASB 3 Business Combinations (accounting for contingent consideration in a business combination);

· AASB 3 Business Combinations (scope exceptions for joint ventures);

· AASB 8 Operating Segments (aggregation of operating segments);

· AASB 8 Operating Segments (reconciliation of the total of the reportable segments' assets to the entity's assets);

· AASB 13 Fair Value Measurement (scope of paragraph 52 - portfolio exception);

· AASB 13 Fair Value Measurement (short term receivables and payables);

· AASB 116 Property, Plant and Equipment and AASB 138 Intangible Assets (revaluation method - proportionate restatement of accumulated depreciation/amortisation); and

· AASB 124 Related Party Disclosures (key management personnel).

The adoption of new and revised standards and amendments has not affected the amounts reported for the current or prior half year periods. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

(d) Change in Accounting Policy

The policy for accounting for exploration and evaluation expenditure has changed from the policy applied in previous reporting periods.

In previous reporting periods, all costs incurred in connection with the exploration and evaluation of areas with current rights of tenure were capitalised and recognised as an exploration and evaluation asset. Costs carried forward in respect of an area of interest that was abandoned were written off in the year in which the decision to abandon was made.

The policy has now changed, and the new policy has been applied retrospectively (with comparative information restated accordingly). Under the new policy:

· exploration and evaluation expenditure incurred in the acquisition of the rights to explore (including payments to landowners required under the Group's mineral leases) is capitalised and recognised as an exploration and evaluation asset; and

· exploration and evaluation expenditure incurred subsequent to the acquisition of the rights to explore will now be expensed as incurred, up to and until the final investment decision to commence construction.

The Directors are of the opinion that the change in accounting policy provides users with more relevant and no less reliable information as the policy is more transparent and less subjective. The policy is common of exploration focussed companies where exploration and evaluation expenditure is viewed as an ongoing expense of discovery, until a technical feasibility study has been completed. The impact of this change in accounting policy is reflected below.

For comparative purposes the accounts within the Consolidated Statement of Financial Position have changed by:

For comparative purposes the loss after tax has changed by:

Basic and diluted loss per share have also been restated. The amount of the impact on basic and diluted loss per share for the restated result for the half-year ended 31 December 2014 due to the change in accounting policy is an increase in loss per share of $1.00.

The impact of the change in accounting policy has not been quantified for the current period as these accounting records have not been maintained.

2. SEGMENT INFORMATION

AASB 8 requires operating segments to be identified on the basis of internal reports about components of the Consolidated Entity that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segment and to assess its performance.

The Consolidated Entity operates in one segment, being mineral exploration. This is the basis on which internal reports are provided to the Directors for assessing performance and determining the allocation of resources within the Consolidated Entity.

3. EXPLORATION AND EVALUATION

Notes:

1. The ultimate recoupment of costs carried forward for exploration and evaluation is dependent on the successful development and commercial exploitation or sale of the respective areas of interest.

2. Impairment of the carrying value of Golden Eagle Uranium. The Company has completed its initial review of the project. Based on the available information, current economic conditions and the price of uranium it is not viable for the Company to undertake any further exploration activities at this time and accordingly, the project has been impaired to nil.

SOP Project

The Company's Sulphate of Potash (SOP Project), the project has secured eleven granted and nine pending exploration licences covering a substantial area of multiple salt lake basins in Western Australia, South Australia and the Northern Territory. The carrying value is made up of the acquisition costs and capitalised expenditure relating to the Company's Australian SOP Potash Project.

Golden Eagle Uranium Project

The Golden Eagle Uranium and Vanadium Project holds nine U.S. Department of Energy (DOE) Uranium/Vanadium Mining Leases, covering 22.7 km2 located in the Uravan Mineral Belt, Colorado USA

4. DISCONTINUED OPERATIONS

In October 2014, as part of the re-structure process, the Company commenced winding up proceedings or assessing options to divest entities associated with the exploration and evaluation assets for the Hungary Coal, Hungary Uranium and Central Europe segments. The Hungary Uranium segment was not previously classified as discontinued. The impairment expense recognised in the period ending 31 December 2013 resulted in a nil value of exploration and evaluation assets for these entities and further restructuring and impairment costs for the half year.

5. CONTRIBUTED EQUITY

(b) Movement in Share Capital during the past six months

Notes:

1. Issued to GMP Securities Europe LLP as part of their annual fees to act as the Company's Broker.

6. EARNINGS PER SHARE

On 8 December 2014, the Company completed a 1 for 30 Consolidation. The weighted average number of ordinary shares used in calculating basic and diluted earnings per share has been retrospectively adjusted in both the current and prior periods to reflect the impact of the Consolidation.

7. RESERVES

(a) Movement in share-based payment reserve during the past six months

No movement in the share-based payment reserve during the past six months.

8. COMMITMENTS AND CONTINGENCIES

There have been no changes to the commitments or contingencies disclosed in the most recent annual financial report of the Company.

9. DIVIDENDS PAID OR PROVIDED FOR

No dividend has been paid or provided for during the half year (31 December 2014: nil).

10. FINANCIAL INSTRUMENTS

(a) Fair Value Measurement

At 31 December 2015 the Group had no material financial assets and liabilities that are measured on a recurring basis and at 31 December 2015, the carrying amount of financial assets and financial liabilities for the Group is considered to approximate their fair values.

11. SUBSEQUENT EVENTS AFTER BALANCE DATE

Other than as disclosed below, at the date of this report there were no significant events occurring after balance date requiring disclosure.

(i) On 22 February 2016, the Company announced an updated Mineral Resource at Lake Wells totalling 85 million tonnes of SOP.

For further information please visit www.saltlakepotash.com.au or contact: