March 2017 Quarterly Report

The Board of Salt Lake Potash Limited (the Company or Salt Lake) is pleased to present its Quarterly Report for the period ending 31 March 2017. Highlights for the quarter and subsequently include:

Corporate

Pilot Plant

Ø After discussions with major international Sulphate of Potash (SOP) producers and distributors, the Company has formed the view that the best path forward for the Goldfields Salt Lakes Project (GSLP) is to construct a Pilot Plant to demonstrate the technical and commercial viability of brine SOP production, before expanding to long term optimal production levels on a staged, modular basis.

Ø The Company has appointed Amec Foster Wheeler (AMEC) to prepare an analysis of the options for constructing a 20,000-40,000tpa SOP Pilot Plant, processing brine feed drawn from the near surface Measured Resource.

Capital Raising and Executive Appointment

Ø A total of 30,000,000 new ordinary shares in the Company (Placing Shares) have been placed by Cenkos (Bookrunner) at a price of 25 pence (A$0.43) per Placing Share, in order to raise net proceeds of approximately £7.0 million (A$12.0 million) for the Company. Admission of the Placing Shares to AIM is expected to become effective on 8.00 a.m. on 4 May 2017. The Company is also looking at the potential of a further capital raising to investors in Australia.

Ø Mr Will Longworth, an experienced potash mining executive, was appointed as Chief Operating Officer.

Development and Processing

Ø Expansion of the Goldfields Salt Lakes Project to now comprise nine salt lakes totalling over 4,750km2.

Ø The Lake Wells surface aquifer trenching program continued with a further 89 shallow test pits and an additional 125m long trial trench in the shallow aquifer excavated.

Ø The off-lake aircore drilling program, targeting the Lake Wells paleochannel, was completed successfully intersecting Basal Paleochannel Sediments along the entire length of the paleochannel unit. Planning for a further on-lake drilling program at Lake Wells has commenced and a drill rig is expected to be mobilised when available.

Ø The Site Evaporation Trial (SET) at Lake Wells continued to process brine and produce harvest salts. The SET has to date processed approximately 189 tonnes of brine and producing harvest salts on a continuous basis.

Ø A range of process development testwork continues to significantly enhance the Lake Wells process model. The Company successfully produced 5.5kg of SOP at 98% purity at SGS Laboratories in Perth. Initial evaporation testwork on Lake Ballard brine also indicates excellent potential to produce Sulphate of Potash (SOP) and additional co-products.

Ø The Company completed a heritage survey of Lake Ballard with a number of senior traditional custodians. A field team will mobilise shortly to undertake a comprehensive staged work program at Lake Ballard.

PILOT PLANT

As announced on 20 April 2017, Amec Foster Wheeler (AMEC) has been appointed to prepare an analysis of the alternatives for the Company to construct a Pilot Plant at the Goldfields Salt Lakes Project (GSLP), intended to be the first salt-lake brine Sulphate of Potash (SOP) production operation in Australia.

A PFS on the full-scale production model is continuing and the Pilot Plant will form a part of the feasibility study process.

Salt Lake has been in discussions since last year with a range of international industry SOP and specialist fertiliser producers and distributors, including several global market leaders, about the optimal way to realise Salt Lake's outstanding potential in the global SOP market.

Based on those discussions, the Company has formed the view that the appropriate path forward is to initially construct a Pilot Plant to demonstrate the technical and commercial viability of brine SOP production from the GSLP, before expanding the plant to long term optimal production levels on a staged, modular basis. AMEC have been engaged to initially consider a 20,000-40,000tpa Pilot Plant processing only brine feed drawn from the near surface Measured Resource.

The Company believes the advantages of the Pilot Plant approach are:

· Proof of concept for SOP production from salt-lake brines in Australia. This will substantially de-risk the full-scale project, with commensurate improvement in financing costs and alternatives. While substantial salt-lake brine production of SOP is undertaken in China, Chile and the USA, it is new in Australia and overseas production models need to be tested and adapted for Australian conditions.

· Refinement of design and costing of engineering elements at Pilot Plant scale may result in considerable cost savings at larger scale.

· Market acceptance of a new product in conservative agricultural markets is best achieved progressively and in conjunction with existing, established partner(s). It is important to establish Salt Lake's product(s) as premium, sustainable nutrients in the key long term markets and staged production increases are the best way to achieve this objective.

· A Pilot Plant offers an accelerated pathway to initial production, with limited infrastructure requirements and a faster, simpler approval process. The Pilot Plant is intended to operate for 12-24 months to establish parameters for larger scale production, and the Company's objective is to commence construction in 2017, harvesting first salts in 2018.

· Relative ease of financing a Pilot scale plant. Initial indications are that a Pilot Plant of this scale (40,000tpa) would cost up to US$35m. While the Pilot Plant's principal objective is to prove the technical concept, the Company intends for it to still be cashflow positive. While economies of scale for a Pilot Plant are limited, the Goldfields Salt Lakes Project's considerable location and infrastructure advantages will be important in sustaining its economic parameters.

Several of the global SOP industry parties have expressed a keen interest in partnering with Salt Lake to market and distribute Pilot Plant production, as well as to provide technical and financial assistance in design and construction of the Plant. Those discussions are ongoing however, Salt Lake notes that the discussions are incomplete and there is no guarantee the discussions will result in any firm offtake, technical or other arrangements.

Capital Raising

As announced on 27 April 2017, a total of 30,000,000 new ordinary shares in the Company have been placed by Cenkos at a price of 25 pence (A$0.43) per Placing Share, in order to raise net proceeds of approximately £7.0 million (A$12.0 million) for the Company. The Company is currently completing a further bookbuild in Australia to raise additional funds. Total funds raised in the UK and Australia will be used for the planning and initial construction costs of the Pilot Plant, as well as ongoing exploration and development costs and working capital. Results of the bookbuild in Australia are expected to be announced on 2 May 2017.

Experienced Potash Mining Executive Appointed as COO

Subsequent to the end of the quarter, the Company appointed an experienced international potash mining engineer, Mr Will Longworth, as Chief Operating Officer (a non-board appointment). Mr Longworth is an Australian Mining Engineer with over 25 years of experience across a broad range of mining operations as well as in project analysis and development. For the past 10 years, Mr Longworth has principally been involved in large potash projects around the world, including for Vale and Rio Tinto on the Kronau Potash Project in Saskatchewan, Canada and Potasio Rio Colorado Potash Project in Argentina.

LAKE WELLS

Surface Aquifer Trenching Program

An 8.5 tonne amphibious excavator was mobilised late last year to gather further geological and hydrological data about the shallow brine aquifer hosted by the Quaternary Alluvium stratigraphic sequence in the upper 20 meters of Lake Wells.

The aim of the program is to evaluate the geology of the shallow Lake Bed Sediments, and to undertake pumping trials to provide estimates of the potential brine yield from trenches in the shallow sediment.

The excavator program is also providing important geological and geotechnical information for potential siting and construction of trenches and on-lake brine evaporation ponds.

A total of 89 test pits and one trench of 125m were excavated in the quarter, bringing the total program to date to 232 test pits and 8 trenches over the lake playa.

Of the total of 89 test pits that were constructed for this quarter, three included geotechnical sampling pits in the south and the rest (86) were standard test pits in transects across the northern arm of the lake. The pits confirm lithology and permeability of upper lake bed sediments and demonstrate spatial continuity of the surface aquifer. The test pits are 1m wide x 1.5m long and 4.5m deep. The test pits were logged for geology descriptions while the brine inflow locations and mechanisms were noted. The geological material was sampled and stored for PSD (Particle Size Distribution) analyses and further processing.

The work completed during the quarter built on previous investigations of the shallow aquifer throughout 2016, including hydraulic testing of test pits and medium term pumping tests at 2 test trenches.

Long Term Pumping Test - Test Trench P1e

The Company conducted a long term pumping test on test trench P1e located at the south-eastern extent of Lake Wells. The trial involved excavating a trench with dimensions 125m (length) x 4.5m (average depth) x 3m (average width) and pumping the trench for 25 days with groundwater level monitoring in the trench itself and at nearby observation bores. The testing was conducted as a "constant head test" whereby flow rate was adjusted to maintain a constant trench water level. Drawdown was observed at nearby observation bores placed at distances of 20 and 50 m in four main directions around the trench.

Results from the testing are summarised as follows:

- The initial pumping rate ranged between 3-6 L/s for the first 4 days while removing trench storage which subsequently dropped to 0.8 - 1.5 L/s. This coincided with the trench storage being dewatered and brine flowing from the surrounding aquifer.

- An average pumping rate was recorded at ~1.2 L/s over the full 25 days. Cumulative pumping volume during the test were measured at 2,666 m3 or 2.7 megalitres (ML).

- After ~ 3.5 days pumping, the trench water levels stabilised at approximately 2.10m below ground or 1.95m drawdown.

- Small rainfall events (≤ 2 mm) were recorded over the duration of the test however this had negligible impact on groundwater levels.

- Of note is the delayed response to drawdown at wells further from the trench (observation bores at 50m distance). This is consistent with an unconfined aquifer, where the draw down cone of dewatered sediment propagates outward from the pumping centre.

- Drawdown was observed at all observation bores and after 25 days ranged between 0.08 and 0.48m. Drawdown at all bores demonstrates spatial connection of the Lake Bed Aquifer.

- Highest drawdown was observed to the west of the trench while moderate drawdown was observed to the south and east. Lowest drawdown was observed to the north (observation bore 50 N). The above findings indicates that aquifer permeability is slightly lower toward the north when compared to the east, south and west of the immediate aquifer material surrounding the trench.

- This spatial variability in drawdown is likely a reflection of some aquifer heterogeneity within the shallow Lake Bed sediments.

- Brine chemistry was consistent throughout the duration of the test with the potassium concentrations reported an average at 5,600 mg/l.

Hydraulic Testing of Additional Test Pits

Hydraulic testing in the shallow test pits continued throughout the quarter. An additional 89 pits were excavated across the Lake and pump recovery tests were conducted on 15 test pits. The pump recovery tests consist of installation of a water level logger and then rapid evacuation of brine from the test pit with a high yield brine pump. After drainage, the recovery of the brine water level in the pit from the surrounding aquifer is measured with the water level loggers. The recovery data is fitted to slug test algorithms and the hydraulic conductivity (K) values tabled. The slug test algorithms included the Horslev (1951) and Bouwer & Rice (1976) methods.

Analysis of drawdown-recovery data was undertaken to obtain permeability data from the Lake Bed Aquifer in the northern part of the lake and the calculated hydraulic conductivity (K) ranged between 0.3 and 20m/day for 9 test pits, ranging from LTTT208 through LTWW216. These values are considered moderate to high for sedimentary aquifers and support the potential of the Lake Bed Aquifer to yield brine to a trenching system.

Hydraulic conductivity of the test pits are consistent with values obtained from other locations across Lake Wells. The sample values recorded in 2017 fall within the medium to upper range of values to date.

Process Testwork

The proposed process for production of SOP at Lake Wells is based on evaporating brine in a series of solar ponds to induce the sequential precipitation of salts, firstly eliminating waste halite and eventually producing potassium-containing salts (harvest salts) in harvest ponds. These harvest salts are then processed by a combination of attrition, flotation, conversion and crystallisation into SOP and other end products.

Site Evaporation Trial

A large scale, continuous Site Evaporation Trial (SET) continued at Lake Wells to refine process design criteria for the halite evaporation ponds and subsequent harvest salt ponds.

The objectives of the SET are to:

· Refine the solar evaporation pathway, under actual site conditions, for Lake Wells brine. The analysis of this pathway will refine the salting points of the various salts along the evaporation pathway allowing for the completion of a detailed mass balance for the pond system;

· Confirm the quality and quantity of brine and salts produced at the various points along the evaporation path;

· Define the distribution in various salts of potassium, magnesium and sulphate through the evaporation system;

· Provide design information for brine in-flow requirements, pond area, required number of ponds and flow requirements between ponds for a commercial facility; and

· Determine opportunities for recycle of bittern or salt that may improve potassium, magnesium or sulphate recovery to the harvest salts.

· Provide bulk salt samples for further process testwork and production of bulk SOP samples for potential offtake partners and customers.

· Provide inputs for crystallisation test work.

Brine is introduced daily to the first halite pond, from a small, hand dug surface trench. The brine progresses on a continuous basis through a series of six progressively smaller ponds as it concentrates through evaporation: two halite ponds; two transition ponds; and two harvest salt ponds.

The initial Train of evaporation ponds was established in October 2016 and Train 2 was established and brought up to capacity in the March quarter.

To date approximately 189 tonnes of Lake Wells brine has been processed through the SET across Trains 1 and 2, establishing an initial continuous load of salts and enriched brine. During the quarter, approximately 75t of Lake Wells brine was processed through both trains of the SET. Approximately 750kg of harvest salt was collected at an average potassium grade of 6.4% and optimum harvests have had potassium grades up to 9.7%.

The SET is currently producing over 100 kilograms of harvest salts per week for further testing. The harvest salts recovered from the SET contain up to 50% Kainite (KMg(SO4)Cl.3(H2O)), a potassium double salt which the Company has successfully processed into SOP in laboratory tests.

The large quantity of salt produced via the SET is being collected for further work including larger scale production of commercial samples for potential customers and partners around the world.

Process Testwork - SGS

The Company has also been undertaking ongoing process optimisation work at SGS Laboratories in Perth to improve the attrition, flotation, conversion and crystallisation process for production of SOP from harvest salts.

An initial SOP production program was also undertaken to generate samples for further product testwork and distribution to potential customers and marketing partners. The process route used was based on previous SOP production testwork by Hazen Laboratories in Colorado, with some variations to take account of equipment availability and different harvest salt characteristics. A 46kg sample of Lake Wells harvest salt was processed by SGS Laboratories and after initial "sighter tests" to assess attritioning methods, pH and reagent properties, the sample was batch processed to successfully produce 5.5kg of SOP, with the following properties:

Table 1: Chemical composition of sample (BCR06-LW) produced at SGS

Laboratory testwork completed to date indicates:

· Halite waste salt is readily separated from Kainite double salts via flotation under standard flotation conditions using modest additions of commercially available reagents; and

· Conversion and crystallisation of flotation products can produce SOP which complies with or exceeds industry quality standards;

Laboratory scale work on Lake Wells harvest salts is ongoing, to further refine and enhance the process flowsheet to prefeasibility study standard and to produce further bulk samples for customers and for granulation, compaction and other studies.

Harvest salt samples have also been distributed to other internationally recognised laboratories to verify and refine the results achieved to date at Hazen and SGS.

LAKE BALLARD

Lake Ballard is located in the Goldfields region of Western Australia approximately 140km north of Kalgoorlie. Salt Lake's holding comprises 788km2 of granted and 66km2 of exploration license applications, substantially covering the Lake Ballard playa. The Company also holds exploration licence applications covering Lake Marmion and the paleochannel joining the two lakes.

Lake Ballard and its sister lake, Lake Marmion, share potentially the best location of any brine SOP project in Australia; located either side of the Goldfields Highway, Leonora-Esperance rail line and the Goldfields gas pipeline, within the major Goldfields mining centre of Western Australia.

The Lakes and the paleochannel beneath them host a very large brine pool. Limited sampling indicates that Lake Ballard has different brine chemistry to Lake Wells, so initial evaporation tests were important to understand the potential to produce viable salts from Lake Ballard brine for production of SOP.

The Lake Ballard area is not presently covered by native title and does not have any registered Aboriginal heritage sites. The Company has recently completed a heritage clearance survey over the area, receiving full approval to commence exploration.

Process Development Testwork

The Company engaged international laboratory and testing company, Bureau Veritas (BV), in Perth, to conduct the initial brine evaporation test under simulated average Lake Ballard site conditions.

The aim of the BV trials was to monitor the chemical composition of the brine and salts produced through the evaporation process to establish:

· Types of product salts that may be produced through the natural solar evaporation path;

· Concentration thresholds in the brine chemistry which can be used to maximise the recovery of harvest salts and minimise the quantity of dilutive salts into a process plant;

· The quantity and composition of SOP product salts for the plant feed in potential commercial production; and

· The potential for any additional co-products that may be produced with minimal additional inputs.

The chemistry of Lake Ballard's brine differs from Lake Wells' brine. An objective of the testwork was to determine the impact on the evaporation process with the different chemistry and the effect this has on the precipitation pathway and production of different salts.

The preliminary test consisted of evaporation of 260L of brine at simulated Lake Ballard average weather conditions using infra-red lamps for temperature control and air flow across the brine surface provided by a fan.

The bulk sample chemistry was broadly similar to the historical average of Lake Ballard brine samples:

From the initial 308kg charge, 5.6kg of harvest salts (dry basis) containing a potassium equivalent of 12.5% SOP by weight were collected and analysed for chemical composition and crystal structure. Note this harvest was not intended to be representative of operating harvest parameters.

This chart shows the sharp transition from halite dominated salts to a magnesium sulphate mixed salt and finally to potassium harvest salts.

Observations from the preliminary evaporation trial include:

1) The starting brine was highly saturated with dissolved salts in its natural state, meaning the time taken to begin precipitation of salt was relatively short. The potassium concentration of the brine increased to 4,000 mg/L, similar to Lake Wells brine, in approximately 10 days (note, summertime evaporation rates will be higher than other seasons).

2) High purity halite (>97% on a dry basis) is produced initially in substantial quantities.

3) There is a clear transition to production of magnesium salts, with up to 35% kieserite (MgSO4.H2O) identified by XRD analysis.

4) Potassium magnesium salts are then produced in various phases, including kainite and carnalite. These salts are readily amenable for processing into SOP, in a similar process to Lake Wells.

The magnesium sulphate salt precipitation phase differs from the evaporation pathway for Lake Wells brine. kieserite and epsom salts (MgSO4.7H2O) are valuable fertiliser products for both the domestic and export markets. In particular, kieserite has a substantial market in South-East Asia and Lake Ballard's considerable transport cost advantages support the potential for production of kieserite and other by-products, including potentially MgCl2 and NaCl.

The short evaporation timeframe for potassium concentration; the potential to produce valuable co-products and Lake Ballard's size and location advantages gives considerable encouragement for the Project's capacity to support a large, long life SOP (and co-product), brine evaporation operation.

Geophysical Survey Substantiates Historical Investigations

The Lake Ballard and Lake Marmion area has been the subject of considerable historical exploration. Previous hydrogeological investigations, including geophysical surveys and drilling programs, were undertaken by the Geological Survey of Western Australia. The most useful data were three North-South transects drilled between Lake Ballard and Lake Marmion to explore the trunk palaeodrainage that originates to the west of Lake Ballard and flows to the east beneath Lake Marmion before discharging into the Eucla/Officer Basins. The 31 holes were drilled using wireline coring with samples being retained and stored at the GSWA core library in Carlisle.

A description of the hydrogeology between the two lakes was provided by Langford (1997). The lower Tertiary-aged paleochannel sequence comprises an upper alluvium / colluvium (10 to 20m), dense plasticine clay (50 to 60m) and basal sands (10 to 20m thick) that are incised into the Archaean granite and greenstone basement. In places, there are silcrete and sandy intervals within the plasticine clay providing a different stratigraphy to other paleodrainages. The basal sands are commonly fine to coarse-grained sand that form a deeper aquifer being about 80m bgl (below ground level) in the west (estimated from ground-based geophysics) and about 120m bgl at the east of Lake Ballard.

Geophysics Survey Underway

Salt Lake Potash engaged Atlas Geophysics to undertake a geophysical survey at Lake Ballard with the primary objectives of resolving the geometry of the paleovalley, and to define the position, depth and thickness of the paleochannel.

Gravity data was collected on 14 transects during November and December 2016. Transect lengths were between 6 and 20 km with gravity data collected at 100 m intervals.

Preliminary interpretation of the gravity data confirmed the presence of the paleochannel thalweg (deepest part of the paleochannel) beneath Lake Ballard and deepening towards Lake Marmion. There is good correlation between the preliminary gravity profiles and geological data from the exploratory drilling transects drilled by the Geological Survey of Western Australia in the late 1980s - this further demonstrates the continuation of the paleochannel between Lakes Ballard and Marmion.

In addition to the ground gravity survey, historical gravity data was also obtained from previous leaseholders. This data was collected from airborne surveys in the mid-2000s at 500 m intervals along 1000 m spaced N-S lines that extended over the eastern portion of Lake Ballard and Lake Marmion. Combined with the ground gravity data over Lake Ballard, a preliminary analysis was undertaken by Core Geophysics suggesting the combined datasets would be useful for more precise mapping of the paleochannel.

In the next quarter, the existing datasets will be further analysed and interpreted to generate a 3-D appreciation of the paleochannel extent and distribution. There will be specific modelling of each gravity profile and integration with the historical airborne data to support site selection for proposed exploratory drilling.

The geophysical survey work completed has confirmed the deep paleochannel aquifer has been encountered in the west and east of the lake, supporting the inferred paleochannel being continuous beneath the lake. The inferred paleochannel is interpreted to have a depth of between 80 and 120m below ground level.

Planned Further Work

During the quarter, the Company completed heritage surveys of Lakes Ballard and Marmion with a number of senior traditional custodians, in conjunction with Company personnel and led by Daniel de Gand (anthropologist).

The surveys concluded that the current proposed exploration work will not affect any Sites of Significance.

A field team will mobilise shortly to undertake a comprehensive staged work program at Lake Ballard. This program will likely include:

1) Ground reconnaissance and mapping.

2) Completion of geophysical surveying and modelling.

3) Widespread surface brine sampling.

4) Investigation of surface geology and aquifer (to 4.5m) using an amphibious excavator.

5) Excavating and test pumping a number of surface trenches.

6) Shallow core drilling across the lake.

7) Drilling and test pumping of deep paleochannel sand targets.

CORPORATE

Golden Eagle Uranium and Vanadium Project

During the quarter, Salt Lake disposed of its residual exploration interest in the Golden Eagle Uranium and Vanadium Project. This was achieved through the sale of the Company's US subsidiary, Golden Eagle Uranium LLC, in exchange for a nominal amount. The disposal allows management to focus on the development of the SOP Potash Projects. The Company's interest in the Golden Eagle Uranium LLC has previously been fully impaired.

Competent Persons Statement

The information in this report that relates to Exploration Results, or Mineral Resources for Lake Wells is 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 information in this report that relates to geophysical data and interpretation for Lake Ballard is based on information compiled by Mr Seth Johnson, who is a member of the Australian Institute of Geoscienctists and International Association of Hydrogeology. Mr Johnson is a consultant of Hydroconcept Pty Ltd. ("Hydroconcept"). Hydroconcept is engaged as a consultant by Salt Potash Limited. Mr Johnson 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 Johnson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Process Testwork Results is based on, and fairly represents, information compiled by Mr Bryn Jones, BAppSc (Chem), MEng (Mining) who is a Fellow of the AusIMM, a 'Recognised Professional Organisation' (RPO) included in a list promulgated by the ASX from time to time. Mr Jones is a consultant of Inception Consulting Engineers Pty Ltd. ("Inception"). Inception is engaged as a consultant by Salt Potash Limited. Mr Jones 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 Jones consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Table 2 - Summary of Exploration and Mining Tenements

As at 31 March 2017, the Company holds interests in the following tenements:

Australian Projects:

Other Projects:

APPENDIX 1 - LAKE WELLS TEST PIT LOCATION DATA

APPENDIX 2 - BRINE CHEMISTRY ANALYSIS

APPENDIX 3 - JORC TABLE ONE

Section 1: Sampling Techniques and Data

Section 2: Reporting of Exploration Results

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