March 2021 Quarterly Report

March 2021 Quarterly Report

Salt Lake Potash Limited (SO4 or the Company) is pleased to present its quarterly report for the period ending 31 March 2021. The Company is focused on completing the development of the Lake Way SOP project in Wiluna, Western Australia.

Quarterly Report Highlights

Process plant commissioning commenced

· Process Plant commissioning commenced in March with the introduction of first harvest salts to the front end of the plant. At the end of the quarter the Process Plant was 97% complete on an earned value basis, including engineering 99% complete, procurement 99% complete and construction 90% complete. First SOP product is expected during the June quarter.

Gas power plant commissioned

· Following the period-end the five 2MW units in the power plant were successfully commissioned. All major non-process infrastructure items have now been completed and are ready to support full-scale operations.

Senior debt syndicated

· Sequoia Economic Infrastructure Income Fund and the Commonwealth Bank of Australia invested US$39m and US$25m respectively into SO4's US$138m senior debt facility, complementing existing investments led and arranged by Taurus Mining Finance Fund No. 2 L.P and the Australian Government's Clean Energy Finance Corporation.

SOP Product suite unveiled

· In March the Company unveiled its suite of SOP products designed to spread exposure across the various SOP sub-markets and maximise premiums and revenue. SOP Precision will be sold into the premium priced fertigation market, SOP Prime will target the direct application and compound NPK markets and SOP Premium will be a granular product, targeting basal applications and bulk NPK blending (from FY'23)..

Halite ponds harvested

· During the quarter the company successfully proved halite harvesting methodology, harvesting 93k cubic meters of halite salts from cells in Train 1. Pond cells were maintained online throughout the harvesting.

Share purchase plan completed

· A share purchase plan was conducted as part of the December equity capital raise and was upsized to A$8m from A$5m due to strong demand. The shares were issued at 40c.

"Significant progress was made on Process Plant construction as well as financing and product positioning during the March quarter, setting the Company up for first SOP sales in the June quarter. Our focus is now on successful commissioning and ramp-up of the process plant as we look to move into positive cash flow from our first operating SOP asset."

Tony Swiericzuk Chief Executive Officer

Process Plant commissioning commenced

In March the Company commenced pre-load commissioning of the Process Plant with harvest salts successfully fed into the into the feed hopper, conveyed to the surge bin, run through the lump breaker, and fed into the attritioning feed tank at the front-end of the plant.

During the June quarter the utilities, flotation circuits, conversion circuit, crystallisers and dryer will all be completed and dry commissioned ahead of full load commissioning and SOP production. Consultants from the plant designer, Wood Group, as well as vendors Veolia and Broadbent (among others) will be assisting in the commissioning process.

Process Plant 97% complete

At the end of the quarter the Process Plant was 97% complete on a value earned basis, including engineering 99% complete, procurement 99% complete and construction 90% complete, excluding product handling infrastructure.

All major plant components have now been installed. Among the last items to be fitted were the thickeners, conversion brine tanks, cyclone clusters and the SOP product dryer.

The majority of outstanding work to be completed ahead of full plant load commissioning is electrical, instrumentation and piping. At the end of the March quarter electrical cable installation was at 88% complete with 46,898 metres installed of a total 53,596 meters. Piping was at 63% complete with 6,290 meters installed of a total 10,022 metres.

Non-Process Infrastructure completed and commissioned

Following the period-end all five 2MW units in the gas power station were commissioned. The Company has now commissioned all major components on non-process infrastructure which are ready to support full scale operations, including the high pressure gas pipeline, power station, RO water plant, wastewater treatment plant, communications and accommodation.

Halite ponds successfully harvested

During the quarter the Company successfully proved halite harvesting methodology, harvesting 93k cubic meters of halite salts from cells in Train 1. Pond cells were maintained online throughout the harvesting.

Senior debt facility syndicated

In March the Company successfully syndicated its US$138m Senior Debt Facility with Sequoia Economic Infrastructure Income Fund (SEQI) who invested US$ 39m and the Commonwealth Bank of Australia (CBA) who invested US$25m, joining the facility alongside Taurus Mining Finance Fund No. 2 L.P (Taurus) and the Australian Government's Clean Energy Finance Corporation (CEFC).

SOP product suite unveiled

In March the Company unveiled its suite of SOP products designed to spread exposure across the various SOP sub-markets and maximise premiums and revenue.

· SOP Precision is designed for the fertigation market and will have class-leading dissolution characteristics. Fertigation is the fastest growing and highest price sub-segment of the SOP market. Key product characteristics include 53% K2O,

· SOP Prime is a high potassium content SOP suitable for direct application and compound (complex) NPK production. The product will be primarily sold in bulk containers and vessels. Key product characteristics include 53% K2O,

· SOP Premium is a granular SOP for basal applications and bulk blending. Shipments are targeted to commence in FY'23. Key product characteristics include 52% K2O,

Approvals

The Company continued the advancement of the remaining permitting required to support ongoing full-scale operations. During the quarter the EPA issued its Report and Recommendations for the Lake Way Project to the Minister's office. These were made publicly available, with no appeals received. In addition to the EPA submission, the Company continues to seek other project approvals as required.

Share purchase plan completed

In January the company successfully completed the Share Purchase Plan (SPP) announced on 11 December 2020.

The SPP, originally intended to raise A$5 million, was heavily oversubscribed with applications received for A$10 million at the issue price of A$0.40 per share. Given the strong support from existing shareholders, the Board exercised its discretion under the terms of the SPP to increase the size of the offer to A$8.0 million in recognition of the ongoing support of its retail investors.

For further information or to view a full version of this announcement, including diagrams, please visit https://www.so4.com.au/ASX-Announcements.php or contact:

This announcement has been authorised for release by the Board of Directors.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 which is part of UK law by virtue of the European Union (withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

APPENDIX A - COMPETENT PERSON STATEMENT AND DISCLAIMER

Competent Person Statement

The information in this announcement that relates to Process Testwork Results is extracted from the announcement entitled 'Premium Grade Water Soluble Sulphate of Potash Produced from Lake Way Salts' dated 18 September 2019. This announcement is available to view on www.so4.com.au. The information in the original ASX Announcement that related to Process Testwork Results was based on, and fairly represents, information compiled by Mr Bryn Jones, BAppSc (Chem), MEng (Mining) who is a Fellow of the AusIMM. Mr Jones is a Director of Salt Lake 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'. Salt Lake Potash Limited confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. Salt Lake Potash Limited 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.

Forward Looking Statements

This announcement includes forward-looking statements. These forward-looking statements are based on the Company's expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of the Company, which could cause actual results to differ materially from such statements. Although the Company believes that its forward-looking statements have reasonable grounds, can give no assurance that they will be achieved. They may be affected by a variety of variables and changes in underlying assumptions that are subject to risk factors associated with the nature of the Company's business (including those described in pages 25 to 29 (inclusive) of the Presentation released to ASX on 11 December 2020), which cause actual results to differ materially from those expressed herein. The Company makes no undertaking to subsequently update or revise the forward-looking statements made in this announcement, to reflect the circumstances or events after the date of this announcement.

APPENDIX B - DISCLOSURES IN ACCORDANCE WITH ASX LISTING RULE 5.3

Summary of Mining Tenements

Related Party Payments

During the quarter ended 31 March 2021, the Company made payments of $185,000 to related parties and their associates. These payments relate to existing remuneration arrangements (executive salaries, non-executive director fees and superannuation).

APPENDIX C -

Appendix 5B

Mining exploration entity or oil and gas exploration entityquarterly cash flow report

Compliance statement

1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2 This statement gives a true and fair view of the matters disclosed.

Date: 30 April 2021

Authorised by: By the Board

(Name of body or officer authorising release - see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.