Second MOU for supply of 50,000MT of fertiliser

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

1 September 2015

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

Second MOU for the supply of 50,000MT of fertiliser

African Potash, the AIM listed exploration company focused on sub-Saharan potash assets, is pleased to announce that it has entered into a Memorandum of Understanding (the "Trading Agreement") with a Malawian fertiliser supply company with a view to supplying them with in excess of 50,000 metric tonnes ("MT") of fertiliser. This represents the second fertiliser Trading Agreement in place following the landmark trading agreement with the Common Market for Eastern and Southern Africa ("COMESA ACTESA") and the Mask Africa Crowd Farm Fund Limited ("MACFF") announced on 4th August 2015.

Under the terms of the Trading Agreement, which is subject to the signing of definitive transaction agreements, African Potash will source and fund the delivery of fertiliser through its proprietary network and methods, with first delivery anticipated in autumn 2015. The Trading Agreement, which was signed following an introduction from COMESA ACTESA, is in line with the Company's strategy to create a vertical platform for the mining, production and distribution of fertiliser.

African Potash Executive Chairman Chris Cleverly said, "There is a strong demand for fertiliser in landlocked Malawi. There is a recognition in-country that its use increases productivity, reduces deforestation, increases nutritional levels, which positively effects serious issues such child mortality rates and reduces the reliance on expensive imported food. This Trading Agreement is pursuant to the COMESA ACTESA Trading MOU and represents a further step in the fulfilment of our agreement to supply and deliver at least 500,000MT of fertiliser a year to off-takers identified and introduced by COMESA ACTESA, during an initial 3-year period. Additional agreements are currently being sought."

**ENDS**

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