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ASX release

23 July 2015

ASX: HMI

HARVEST MINERALS

INDEPENDENT INFERRED MINERAL RESOURCE ESTIMATE COMPLETED FOR SERGI POTASH PROJECTHarvest Minerals Limited (ASX:HMI) is extremely pleased to announce that an independent Inferred Mineral Resource estimate has been completed for HMI’s 100% owned Sergi Potash Project (“the Project”) located in the State of Sergipe, Brazil.

This is an exceptional result for HMI and places the Company in the enviable position of having a high grade potash resource in close vicinity to an operating plant.

MINERAL RESOURCE ESTIMATECoffey Consultoria e Serviços Ltda (“Coffey”) has completed an independent “Mineral Resource Estimate” for the Project using all available historical drilling data up to 2014 as well as other technical information which included geology / stratigraphy and 3D seismic data / interpretations. The Project sits within the Cretaceous age Sergipe Basin and next to Brazil’s only producing potash mine, the Taquari-Vassouras Mine, which is currently operated by Vale.

The Mineral Resources Estimate for the Project is classified as an Inferred Mineral Resource, in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012).

The total Inferred Mineral Resource is estimated at 105.3 Mt grading 21.3% KCl, including all the sylvinite and carnallitite layers and using a cut-off grade of 13% KCl. The cut-off grade was estimated based on similar deposits located within the sedimentary basin.

The potash mineralization within HMI’s property is represented by two sylvinite and two carnallitite sub-horizontal layers, with apparent thickness ranging from 5.56 to 8.46 metres intercepted on a historical drill hole SED-001-11.

• JORC Inferred Mineral Resource of 62.0 Mt of Sylvinite grading 25.0% KCl

• Initial drilling programme planned with the aim of upgrading the JORC Inferred Mineral Resource to Indicated status

HIGHLIGHTS

01 / 11Independent Inferred Mineral Resource Estimate Completed for Sergi Project

The reader is cautioned that a Mineral Resource is an estimate only and not a precise and completely accurate calculation, being dependent on the interpretation of limited information on the location, shape, and continuity of the occurrence and on the available sampling results. Actual mineralisation can be more or less than estimated depending upon actual geological conditions. The Mineral Resource statement includes Inferred Mineral Resources. There is a low level of geological confidence associated with Inferred Mineral Resources and there can be no certainty that further exploration work will result in the determination of Indicated or Measured Mineral Resources. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. No Mineral Reserves are being stated.

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Historical Drilling Intercepts Summary

Drill Hole

SED-001-11

Sylvinite zone 01

Mineralized Layers From (m) To (m) Length (m) KCl (%) grade

Sylvinite zone 02

Carnallitite zone 01

Carnallitite zone 02

1,189.38 1,197.65

1,221.86 1,230.32

1,298.60 1,305.85

1,313.90 1,319.46

8.27 20.94

8.46 28.98

7.25 13.04

5.56 19.50

MINERAL RESOURCE MODELThe 3D mineralisation model was constructed using the 3D seismic interpretation and a circular area within a 1,200m radius around the mineralized drill hole, removing the influence of existing barren holes. The solids (wireframes) were constructed from triangulation of potash layers. The density values were obtained from geophysical borehole surveys with readings at 0.20m intervals. The average density estimated for the sylvinite and carnallitite layers is 2.00 g/cm3 and 1.84 g/cm3, respectively. The tonnage and grades were estimated based on Gemcom Surpac wireframe model volume using average density and weighted average KCl grade on each drill hole interception.

Individual grades are presented in the Appendix Section. All results are historical in nature.


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Notes on Resource Calculation: 1

• Triunfo Mineração do Brasil Ltd a wholly owned subsidiary company of Harvest Minerals Limited, holds 100% title to the Mineral Resources.• The Mineral Resource is reported at a cut-off grade of 13% KCl.• The Mineral Resource has been estimated according to general industry good practice and disclosed in compliance with the guidelines defined in the JORC Code 2012 Edition.• Contained K2O was calculated by the formula: Contained K2O = 0.63177 * KCl (%).• Current Exploration Target of a further 28 to 32 Mt at 22% to 28% KCl. The potential quantity and grade of the Exploration Target is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.• The Mineral Resource Estimate and the Exploration Target has been based on data collected since 2008 including diamond drilling (DD), geophysical surveying (magnetometry, gravimetry and 2D and 3D seismic). In addition, historical data from 286 oil exploration wells from Petrobras Petroleo Brasileiro S/A were obtained through ANP (Brazilian National Petroleum Agency).

Mineral Resources

Inferred

Total Inferred 105.3 21.3 13.5

Lithology

Sylvinite

Carnallitite

Mass (Mt)

62.0

43.3

KCl (%)

25.0

15.9

Contained K2O (%)

15.8

10.0

The zone of interpreted mineralization outside the 1,200m circular area but within the prospective area defined by 3D seismic interpretation was considered as a potential “Exploration Target” for further drill tests as identified in the diagram below. The Company proposes a staged exploration drilling programme scheduled for completion by the end of the first quarter of calendar 2016.

CLASSIFICATION OF MINERAL RESOURCESergi Potash Project: Mineral Resource Statement as at Effective Date 10 June 2015


1. The reader is cautioned that a Mineral Resource is an estimate only and not a precise and completely accurate calculation, being dependent on the interpretation of limited information on the location, shape, and continuity of the occurrence and on the available sampling results. Actual mineralisation can be more or less than estimated depending upon actual geological conditions. The Mineral Resource statement includes Inferred Mineral Resources. There is a low level of geological confidence associated with Inferred Mineral Resources and there can be no certainty that further exploration work will result in the determination of Indicated or Measured Mineral Resources. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. No Mineral Reserves are being stated.

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CONCLUSION

HMI considers that Coffey’s report lays a solid foundation for the continued exploration and advancement of the Project.

Commenting on HMI, Executive Chairman, Brian McMaster noted:

“HMI has the right product, in the right place at the right time. This is a very unique situation and one that HMI intends to pursue with great vigour over the coming months and beyond. Alongside this, HMI is progressing its planned AIM admission which will provide the platform for the funding of further drilling and the asset development initiatives. Management genuinely believes this is a very exciting time to be a HMI shareholder” .

In the coming months HMI intends to progress:

• the AIM listing;• the drilling programme at the Project with the objective of upgrading the JORC Inferred Mineral Resource to Indicated Status and testing the current Exploration Target;• Initial drilling at the Capela Potash Project; and• Complete initial test work programme at the Arapua Fertiliser Project.

HMI will continue to update shareholders regarding progress on a regular basis.

Brian McMaster Executive Chairman

Harvest Minerals LimitedLevel 1, 330 Churchill AvenueSubiaco WA 6008

Tel: +61 8 9200 4482Fax: +61 8 9200 4469

Directors:Brian McMaster Matthew WoodMark ReillyLuis AzevedoJonathan Hart (Company Secretary)

Contact:Brian McMaster - Executive [email protected]

www.harvestminerals.net

ASX Code: HMIShares on Issue: 442.67 (M)Options: 6.0 (M)


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SERGI POTASH PROJECT NOTES

Location and Site AccessThe Project is located in the north eastern part of Brazil, in the State of Sergipe. The capital of Sergipe State is Aracaju with approximately 570,000 habitants. The Project site is located in São Cristovão city, in the southeast part of Sergipe State. The area can be accessed from Aracaju heading west along the BR-235 highway for 7 km to the junction with the BR-101 highway which must be followed for another 7.7 km in the southwest direction until the access road to Timbó village. From the access road to Timbó village the road follows a northwest direction for another 3.3 km to the western boundary of the survey area. For access of the several drilling sites the use of a 4x4 off-road vehicle is necessary as the roads and ways are mainly unpaved.

Climate, physiography, vegetation and faunaThe Project area belongs to a zone of subtropical climate with an irregular distribution of rainfall. Whilst the annual rainfall on the coast exceeds 1,600mm, the annual rainfall in the semi-aride zone of the state to the west drops below 800mm and locally, the average rainfall is less than 500mm per annum (State Secretary for Environment and Hydroresources 2009). The rainy season occurs from April to July/August, with the maximum concentrated from May to July. During the autumn-and-winter period the quantity of rainfall is sharply reduced with a minimum (less than 50mm) in November. Despite the subtropical climate there is an extended dry period in the Sergipe State. The Property is located in the coastal zone with predominance of flat lands and rolling hills with maximum elevation of 200m. The forests of the coastal zone consist of palms, cashew trees and mangroves. Bird life includes several varieties, and there are some mammals such as deer, cavies, and armadillos.

Geological SettingThe Project finds itself within the Mesozoic marginal basins context in Brazil (Sergipe-Alagoas Basin), related to the opening of the South Atlantic during the Upper Jurassic Gondwana breakup (e.g. Davison 2007, Mohriak et al. 2008). Structurally the basin consists of a south-eastward-dipping half graben. It is represented on-shore by an over 600km long and 20 to 50 km wide belt, but extends over a much wider area off-shore. Towards the north, near the Rio Sao Francisco the Sergipe basin sensu stricto, where the Project is located, is separated from the Alagoas Basin sensu stricto by the Japoatã and Penedo highs, whereas to the south it is separated from the Jacuípe sub-basin by the Rio Real high.

LithostratigraphyThe Sergipe basin contains sedimentary rocks that document all different stages in the opening of the South Atlantic Ocean including• Late Carboniferous and Early Permian sag sedimentation; • Late Jurassic pre-rift sedimentation;• Early Cretaceous syn-rift sedimentation grading into sedimentary rocks representing onset of flooding; and • Opening of the Atlantic in the Mid to Late Cretaceous and oceanic sedimentation from Late Cretaceous to present times.


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Local geologyThe potash mineralization in the Project area is hosted in Ibura Member of Muribeca Formation, a se-quence of evaporitic rocks, characterized as follow.Ibura MemberIbura is the basin’s evaporitic unit, subdivided into nine (9) evaporitic cycles (479m of maximum thick-ness). Ibura’s cycle IX has two traceable layers in the entire basin, which are excellent correlation marks. The upper layer is known as Mark 39, made up of anhydrite and limestone fragments in variable propor-tions dispersed into a clay-calciferous matrix. Mark 38’s base (known as Topo do Sal / salt top) is in dis-cordant contact with the basin’s soluble salts, especially in cycle VII, which contains the potential potash deposits.

The economic potential of the Sergipe Basin is derived mostly from the presence of the evaporite se-quence of the Ibura Member. The mineralization description is based on the exploration work done in the Sergipe basin by PETROMISA (a PETROBRAS subsidiary). The evaporite characteristically bears mi-cro-inclusions of gas, which allowed the recognition of nine (9) cycles based on the nature of the gaseous phases and the salinity.

• Cycles I and II include mostly Halite which is transgressive to the underlining sediments. • In cycles III and VI the salinity and isolation of the sub-basin became extreme resulting in the precipitation of carnallitite and tachyhydritite from distal brines. • The top of cycle VI is marked by an intense period of dissolution, referred to as pre-cycle VI unconformity, which removed most of the salt accumulated so far, particularly in the Carmopolis and Sirizinho structural highs. • Cycle VII overlays this unconformity and includes rock salt and sylvinite beds and layers of carnallitite, which are mined in the Taquari-Vassouras underground mine presently operated by VALE. • Below this mineable sylvinite horizon a thick tachyhydritite layer exists. Below this tachyhydritite a thick carnallitite deposit is present in the Taquari Vassouras area.

The potash zones contain carnallitite and/or sylvinite. These potash layers can occur in several levels within the Ibura Member but can also be missing due to non-deposition or dissolution processes. Whilst the primary sylvinite usually occurs as single layers, the carnallitite can be present as one thick carnallitite layer as well as carnallitite and rock salt interlayering. Based on the historical drill results, it is possible to build up a paleogeographic reconstruction of the evaporite sequence which was carried out delineating the limits of the different sedimentary facies. The different facies were divided in four domains:Siliciclastic DomainRepresents paleoareas where the Ibura Member is composed only of siliciclastic lithologies. Anhydrite and soluble salts are not present on this domain, suggesting low potential zones for potash mineralization.Anhydrite DomainRepresents paleoareas where the Ibura Member is composed of anhydrite layers and siliciclastic sed-iments. Any kind of soluble salts (Halite, Sylvite, Carnallite or Tachyhydrite) are present on this domain which may represent the interface between siliciclastic deposition and the evaporites.Halite DomainRepresents paleoareas where the paleoclimatic conditions increased the salinity of the brine and allowed the deposition of Halite which may or may not occur intercalated with Anhydrite and siliciclastic sedi-ments. In principle, potash salts are not present but the density of the information does not allow making the assumption that potash layers cannot exist. Based on that, potential zones for potash mineralization may exist within this domain.


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Potash DomainRepresents paleoareas where the paleoclimatic conditions allowed the maximum the salinity of the brine and the deposition of potash salts which may or may not occur intercalated with Halite, Anhydrite and siliciclastic sediments. Clearly, this domain represents the highest potential zones to host potash miner-alization. The potash mineralization target of the Sergi Project consists of two upper sylvinite rich layers and two lower Carnallitite rich layers, with 25% and 16% KCl average content, respectively.

Compilation of dataHMI acquired historical data from 1967 to 1991, from 286 oil exploration wells from Petrobras Petróleo Brasileiro S/A, of which five (5) are located in the Project area. This data comprises downhole geophys-ical profiles, as Gamma (GR) and density (RHOZ), and oil exploration well data. The re-interpretation of the geophysical logs of historical oil wells regarding stratigraphy and presence of potash resulted in the estimation of depth of the top of the evaporitic Ibura Member, depth of the Base of the Ibura Member; and the thickness of soluble salt (rock salt, sylvinite, carnallitite and tachyhydritite) that provide important constraints on the delineation of potential potash bearing area. In addition, historical and re-processing data of aerial and ground geophysics survey from Petrobras, which comprised 273.411km of aeromagnet-ic and gravimetric lines; and 169.813m in 10 2D seismic sections from ANP. This data was used to support the understanding of the geological setting and constrain the ore targets in the Sergipe sub-basin.

Seismic programmesThe 3D seismic survey was conducted from June to August 2013 by Geoquasar in a total area of 42.93 km2, which covered the tenement area. The survey lines were undertaken along E-W with source lines (LT – shot) and along S-N with receivers lines (LR – geophones). Shots and geophones were spaced at 300m intervals along source and receiver lines, respectively. The data collected was processed by RPS, a market leader Canadian company for potash seismic acquisition. The purpose of the 3D seismic survey was to define the structural features of the Sergipe Sub-basin sedimentary sequence, the thickness of the soluble salts horizons and the potential areas for sylvinite in the Project area. No dissolution is observed within the Sergi 3D.The RMS method (Root Mean Square) was applied to highlight the potential areas for sylvinite. Ibura RMS is calculated within a time window 50m below and 5m above the Ibura horizon. Areas with high RMS val-ues correspond with anhydrite or carnallite. Areas with low RMS correspond with sylvite occurrences. The very low RMS values along the eastern edge of the 3D may contain salt but should be viewed as suspect. Data quality is low and no wells penetrate this anomaly. Geological data was correlated with seismic sec-tions and sonic and density profiles to define the horizons related to the Ibura Member.

Drilling programmeHistorical data from 5 drill holes, from 1967 to 1991, was acquired from Petrobras through the ANP (Brazilian National Petroleum Agency) by HMI. The Project drilling programme comprised a total of four (4) exploration drill holes, which were conducted between 2011 and 2014. Of these drill holes, three (3) are within the mineral tenement limits. This program was developed considering the geophysical and geological data, as well as the environmental and logistical aspects. Coffey performed a field check of drilling platforms to audit the transparency and materiality of the drilling programme. Any inconsistencies or errors were detected. The core diameter ranges from 17 and 1/2 inches to 4 inches, as required by drilling conditions at deeper ranges. The core recovery values were obtained by thorough measures and depth recording. A synthetic fluid was applied in core sampling to ensure the salt samples recovery, with no dissolution (perfect caliper).


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The sample recovery values were higher than 95%, and then no significant loss of mass was observed in the mineralized zone.After the conclusion of second stage of drilling work, the drill holes X, Y, Z coordinates were determined through a total station survey and geodetic GPS by a hired specialized company (Projection: UTM - Zone 23 South; Datum: South American 1969). The accuracy of surveys is high, compatible with the phase of the Project. The topography used in the model was created by level curves generated from total station surveys on 3D seismic survey stations. Drilling interceptions were made at approximately 90°. No sampling bias is recognized as a result of drilling orientation and mineralized strata. The transportation and storage of drill cores to core shed was under security and appropriate procedures. Drill cores were bagged and stored on appropriate boxes.

Downhole geophysical surveyIn addition to the historical data acquired from ANP, a downhole survey programme was conducted by Shlumberger, after the drilling stage, in three (3) drill holes: SED-001-11, SED-002-12 and SERG-DH-0001.

Sampling and assayingA detailed geological logging was conducted for both mud samples and core samples. Both qualitative geological logging and downhole geophysical surveying was conducted. The core logging was supported by portable X-ray fluorescence equipment. A comprehensive library of documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols were produced and stored in electronic storages. Core boxes were photographed and the core samples were sawn and quarter of the core was submitted for laboratory analysis. Three quarter of samples were retained in the core boxes for future duplicate assay as required. The samples sizes are considered by ERCOSPLAN as adequate in relation final grain size of sampling. The samples was prepared and bagged to prevent the moisture. Samples were dried in an oven at 105°C for 8 hours. The moisture was measured by weight variation.

Drilling summary


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Drilling programme Historical data from 5 drill holes, from 1967 to 1991, was acquired from Petrobras through the ANP (Brazilian National Petroleum Agency) by HMI. The Project drilling programme comprised a total of four (4) exploration drill holes, which were conducted between 2011 and 2014. Of these drill holes, three (3) are within the mineral tenement limits. This program was developed considering the geophysical and geological data, as well as the environmental and logistical aspects. Coffey performed a field check of drilling platforms to audit the transparency and materiality of the drilling programme. Any inconsistencies or errors were detected. The core diameter ranges from 17 and 1/2 inches to 4 inches, as required by drilling conditions at deeper ranges. The core recovery values were obtained by thorough measures and depth recording. A synthetic fluid was applied in core sampling to ensure the salt samples recovery, with no dissolution (perfect caliper). The sample recovery values were higher than 95%, and then no significant loss of mass was observed in the mineralized zone. After the conclusion of second stage of drilling work, the drill holes X, Y, Z coordinates were determined through a total station survey and geodetic GPS by a hired specialized company (Projection: UTM - Zone 23 South; Datum: South American 1969). The accuracy of surveys is high, compatible with the phase of the Project. The topography used in the model was created by level curves generated from total station surveys on 3D seismic survey stations. Drilling interceptions were made at approximately 90°. No sampling bias is recognized as a result of drilling orientation and mineralized strata. The transportation and storage of drill cores to core shed was under security and appropriate procedures. Drill cores were bagged and stored on appropriate boxes.

Drilling summary

x y z1CAN_0001_SE 695 869.00 8 792 127.00 28.00 360 -90 1 581.001COL_0001_SE 695 620.00 8 794 440.00 28.00 360 -90 1 670.001FT_0001A_SE 694 596.00 8 793 530.00 58.00 360 -90 1 510.001TC_0001_SE 690 119.00 8 795 966.00 56.00 360 -90 1 165.20SED-001-11 694 684.49 8 793 447.63 50.60 360 -90 1 379.40SED-002-12 691 999.56 8 793 077.38 66.96 360 -90 1 231.15SERG-DH-0001 693 635.00 8 792 283.00 50.00 360 -90 1 358.90SERG-DH-0002 694 435.00 8 791 851.00 47.00 360 -90 1 378.00

Hole Azimuth Dip DephtCollar

Number of holes 8Total length (m) 11 273.65Assay results 140

Sergi Project - Database summary

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The analyses were conducted at the Ercosplan Geotechnik und Bergbau labs, located in Erfurt, Germany, and assaying by Inductively Coupled Plasma Optical Emission Spectrometry equipment (ICP-OES). Sam-ples were dissolved in deionised water. The results comprise the values for potassium salts, sulphates and chlorides, ions and total and residual H2O. Ercosplan laboratory is certified according to the high standard of quality management DIN EN ISO 9001:2008.Verifications of mineralization intersections in the field and in core samples has been undertaken and re-ported by Coffey. The core sample preparation technique is compliant with best practices and appropriate for the mineralization type.

Quality Assurance and Quality Control program (QA/QC)The quality control program developed and adopted in the Project comprised the checking of sampling and assaying procedures. Field duplicates were prepared by HMI for assessment of sampling and assay-ing error. The drillcore duplicates were produced over 1/4 of drillcore. The analysis of results of duplicates showed variations in sulfate and calcium content, probably reflecting mineralogical variations in samples. The standard samples were prepared by the laboratory are not certified reference material, since the pot-ash salts are highly soluble.The procedures for standards samples adopted the insertion of an internal control sample in the labora-tory for every 10 samples. The results analysed by dispersion and regression graphs and T-test analysis showed a good accuracy and thus validate the analytic procedures.Coffey verified the field duplicates and are in conformity of best practices for the industry procedures. The standard samples prepared by the same assaying laboratory is common practice in the mining industry but it’s not the best practice.The results of QA/QC analysis are inside acceptance limits for the resource classification at low to mod-erate level of confidentiality.

Mineral Resource EstimateCoffey constructed a MS-Access database with compilation of drill hole data for Mineral Resource esti-mation purposes and is run through general checks to ensure data is valid. Coffey performed a final check to ensure the database integrity for resource estimation purposes. Checks on data include sensible rang-es of values for attributes, drill hole collars matching topography and with expected limits, overlapping sample intervals, depths, azimuths, dips and co-ordinates for consistency. Any inconsistent information is either modified or excluded from use in the estimate. The level of confidence in the conceptual geolog-ical model is moderate. A similar deposit in production near the area and a geological knowledge base of evaporitic deposits are well applied to this conceptual model.The modelled mineralization zone was based on two drill hole intersections; one of those had only geo-physical survey data from Petrobras. These aspects made the confidence level of geological model to be at low to moderate level, based on the lack of data to check the continuity of the mineralization zone. The interpretation provided by single drill holes interceptions was as horizontal layers. It’s possible that there is a low dip angle to southeast under 15°. Two types of mineralization zones were interpreted:• Two layers of Sylvinite;• Two layers of Carnallitite.The mineral resource model was based on results of 3D seismic survey interpretations, excluding the influence area of the negative drill holes. The solids (wireframes) were constructed from triangulation of potash layers (upper and lower Sylvinite and Carnallitite), with guarantee of snapping to the lithological contacts.


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The limit of 3D seismic survey interpretations and a circular area within a 1200m radius around the drill hole with assay data was defined to estimate the volume of each potash layer, considering the thickness of the units. The external content of this radius on the influence zone of drillhole interceptions of Sylvinite and Carnallitite was considered as exploratory potential. The mineralization zone is disposed at depths between 1180 m and 1320 m below surface.The density values were obtained from a geophysical borehole survey, with measures at 0,20m intervals. The average densities estimated for the mineralized zones are appropriate for the type and style of mineralization.

The weighted average grade of density data and KCl content was completed using Gemcom Surpac soft-ware. The tonnage and grade were estimated based on Gemcom Surpac wireframe model volume, aver-age density and weighted average KCL grade of each drill hole interception. All estimation was completed within individual mineralization units using “hard” boundaries. The limited number of samples inside the mineralization model doesn’t permit the application of outliers treatment.

The 3D mineralization wireframe model was Classified Mineral Resource within an influence area with radius of 1200m from drilling interception and limits of 3D seismic survey interpretation. The account has been taken of:• Quality and reliability of raw data;• Confidence in the geological interpretation and continuity;• Number, spacing and orientation of intercepts in each mineralized zone;• The Mineral Resource estimate for the Project has been classified by Coffey from an assessment of the confidence level in the data quality and spatial distribution in accordance with the JORC Code, 2012. Sergi Mineral Resource estimate is classified in the Inferred category, due to lack of drill hole data; and• All tonnages have been estimated as dry tonnages. The cut-off grade for resource declaration was determined at 13% of KCl based on the deposit interceptions and information of other KCl projects on Sergipe State, Brazil.

COMPETENT PERSON STATEMENT

The information in this statement which relates to the Mineral Resource and Exploration Target is based on information compiled by Leonardo Soares who is a geologist and full time employee of Coffey Consultoria e Serviços Ltda and a Member of the Australian Institute of Geoscientists. Leonardo Soares has sufficient relevant experience to the style of mineralization and underground rooms and pillars mine projects under consideration and to the activity for which he is undertaking to qualify as a Competent Person as defined in the JORC Code (2012).



Resource estimation purposes and is run through general checks to ensure data is valid. Coffey performed a final check to ensure the database integrity for resource estimation purposes. Checks on data include sensible ranges of values for attributes, drill hole collars matching topography and with expected limits, overlapping sample intervals, depths, azimuths, dips and co-ordinates for consistency. Any inconsistent information is either modified or excluded from use in the estimate. The level of confidence in the conceptual geological model is moderate. A similar deposit in production near the area and a geological knowledge base of evaporitic deposits are well applied to this conceptual model. The modelled mineralization zone was based on two drill hole intersections; one of those had only geophysical survey data from Petrobras. These aspects made the confidence level of geological model to be at low to moderate level, based on the lack of data to check the continuity of the mineralization zone. The interpretation provided by single drill holes interceptions was as horizontal layers. It's possible that there is a low dip angle to southeast under 15°. Two types of mineralization zones were interpreted:

• Two layers of Sylvinite; • Two layers of Carnallitite.

The mineral resource model was based on results of 3D seismic survey interpretations, excluding the influence area of the negative drill holes. The solids (wireframes) were constructed from triangulation of potash layers (upper and lower Sylvinite and Carnallitite), with guarantee of snapping to the lithological contacts. The limit of 3D seismic survey interpretations and a circular area within a 1200m radius around the drill hole with assay data was defined to estimate the volume of each potash layer, considering the thickness of the units. The external content of this radius on the influence zone of drillhole interceptions of Sylvinite and Carnallitite was considered as exploratory potential. The mineralization zone is disposed at depths between 1180 m and 1320 m below surface. The density values were obtained from a geophysical borehole survey, with measures at 0,20m intervals. The average densities estimated for the mineralized zones are appropriate for the type and style of mineralization.

Table 7_1 Average Densities from geophysical borehole survey Lithology Density (g/cm3) Sylvinite 2.00 Carnallitite 1.84

The weighted average grade of density data and KCl content was completed using Gemcom Surpac software. The tonnage and grade were estimated based on Gemcom Surpac wireframe model volume, average density and weighted average KCL grade of each drill hole interception. All estimation was completed within individual mineralization units using “hard” boundaries. The limited number of samples inside the mineralization model doesn’t permit the application of outliers treatment. The 3D mineralization wireframe model was Classified Mineral Resource within an influence area with radius of 1200m from drilling interception and limits of 3D seismic survey

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Mr Soares was supported and peer reviewed by the mining engineer Porfírio Rodriguez, who are consultant of Coffey Consultoria e Serviços Ltda and member of the Australian Institute of Geoscientists. Mr Rodriguez has sufficient relevant experience to the style of mineralization and deposit type under consideration and to the activity for which he is undertaking to qualify as a Competent Person as defined in the JORC Code (2012).

Mr Soares and Mr Rodriguez consent to the inclusion in the report of the matters based on the information in the form and context in which it appears.

CAUTIONARY STATEMENTS

The Company’s Exploration Target includes potential quantity and grade and is conceptual in nature. There has been insufficient exploration to define these mineral resources and it is uncertain if further exploration will result in the determination of mineral resources.

The reader is cautioned that a Mineral Resource is an estimate only and not a precise and completely accurate calculation, being dependent on the interpretation of limited information on the location, shape, and continuity of the occurrence and on the available sampling results. Actual mineralisation can be more or less than estimated depending upon actual geological conditions. The Mineral Resource statement includes Inferred Mineral Resources. There is a low level of geological confidence associated with Inferred Mineral Resources and there can be no certainty that further exploration work will result in the determina-tion of Indicated or Measured Mineral Resources. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. No Mineral Reserves are being stated.


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APPENDIX 1 – INDIVIDUAL GRADES FROM HISTORICAL DRILL HOLE SED-001-11

Independent Inferred Mineral Resource Estimate Completed for Sergi Project


Appendix 1 – Individual grades from historical drill hole SED-001-11

Sample ID From (m) To (m) Lenght (m) KCl (%) KCl (%) Intersection Potash Zone

RVS-10002 1189.38 1190.13 0.75 42.12

8.27m @ 20.94% KCl

SYLVINITE ZO

NE 1

RVS-10003 1190.13 1190.67 0.54 28.11 RVS-10004 1190.67 1191.52 0.85 0.11 RVS-10005 1191.52 1192.57 1.05 0.10 RVS-10006 1192.57 1193.00 0.43 25.04 RVS-10007 1193.00 1193.52 0.52 49.25 RVS-10008 1193.52 1193.95 0.43 22.02 RVS-10009 1193.95 1195.00 1.05 44.07 RVS-10011 1195.00 1195.58 0.58 0.48 RVS-10012 1195.58 1196.11 0.53 11.29 RVS-10013 1196.11 1196.52 0.41 2.52 RVS-10015 1196.52 1196.95 0.43 13.61 RVS-10016 1196.95 1197.65 0.70 29.92

RVS-10034 1221.86 1223.00 1.14 27.53

8.46m @ 28.98% KCl

SYLVINITE ZO

NE 2

RVS-10035 1223.00 1223.95 0.95 39.55 RVS-10036 1223.95 1224.81 0.86 40.63 RVS-10037 1224.81 1225.83 1.02 46.79 RVS-10038 1225.83 1226.51 0.68 37.91 RVS-10039 1226.51 1227.11 0.60 45.99 RVS-10041 1227.11 1227.33 0.22 54.02 RVS-10042 1227.33 1228.05 0.72 1.22 RVS-10043 1228.05 1228.71 0.66 5.82 RVS-10045 1228.71 1228.97 0.26 40.06 RVS-10046 1228.97 1229.43 0.46 1.3 RVS-10047 1229.43 1229.76 0.33 0.17 RVS-10048 1229.76 1230.32 0.56 22.35

RVS-10145 1298.60 1299.10 0.50 12.58

7.25m @ 13.04% KCl

CARNALLITE ZO

NE 1

RVS-10146 1299.10 1299.65 0.55 10.11 RVS-10147 1299.65 1300.20 0.55 8.07 RVS-10148 1300.20 1301.08 0.88 7.11 RVS-10149 1301.08 1301.80 0.72 15.71 RVS-10151 1301.80 1302.50 0.70 18.42 RVS-10152 1302.50 1303.12 0.62 17.71 RVS-10153 1303.12 1303.80 0.68 11.76 RVS-10155 1303.80 1304.50 0.70 10.18 RVS-10156 1304.50 1305.20 0.70 15.16 RVS-10157 1305.20 1305.85 0.65 17.01

RVS-10159 1313.90 1314.90 1.00 13.75

5.67m @ 19.50% KCl

CARNALLITE ZO

NE 2

RVS-10161 1314.90 1315.40 0.50 19.74 RVS-10162 1315.40 1315.90 0.50 23.95 RVS-10163 1315.90 1316.40 0.50 16.07 RVS-10165 1316.40 1316.90 0.50 23.99 RVS-10166 1316.90 1317.40 0.50 23.11 RVS-10167 1317.40 1317.90 0.50 19.56 RVS-10168 1317.90 1318.40 0.50 20.78 RVS-10169 1318.40 1318.98 0.58 26.56 RVS-10171 1318.98 1319.46 0.48 11.80

13/12

Effective Date: 10 June 2015 [email protected]

MINERAL RESOURCE STATEMENT

HARVEST MINERALS LIMITED -SERGI POTASH PROJECT

1

JORC Code, 2012 Edition – Table 1 report template - Final - Rev00 Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.)

Criteria JORC Code explanation Commentary

Sampling techniques

Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.

Harvest Minerals LIMITED (Harvest Minerals) has acquired the mineral rights from Sergi Project of B&A and the historical data from 1967 to 1991, from 5 oil exploration wells from Petrobras Petróleo Brasileiro S/A through ANP (Brazilian National Petroleum Agency). This data comprises downhole geophysical profiles, as Gamma (GR) and density (RHOZ), and oil exploration well data, based in mixed drilling methods, in which diamond drilling was focused on intervals potentially bearing the potash mineralization. On this second stage, a total of 4 exploration drill holes have been drilled from 2011 to 2014. Of the 5,347.45m drilled, 583.92m was sampled.

The sampling from the Petrobras oil wells was conducted under the oil industry practices, in which drilling fluid may impact the evaporites sampling. For this method, the evaluation is based just in down-hole results.

In the 2011-2014 drilling campaign, the core logging was supported by a portable X-ray fluorescence equipment.

To date Harvest Minerals has not conducted any exploration activities in the project area.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

No down-hole survey data was obtained for the first drilling campaign. For the second drilling campaign, downhole geophysical survey was

conducted with appropriate equipments.

Aspects of the determination of mineralization that are Material to the Public Report.

Geological mapping regarding the target layers was conducted following appropriated procedures.

In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling

Diamond drilling sampling conducted with paraffin-based fluid for the salt recovery was appropriated.




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problems. Unusual commodities or mineralization types (e.g. submarine nodules) may warrant disclosure of detailed information.

Drilling techniques

Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).

Rotary method was applied: tricone bits for sedimentary rocks; large size drill rigs with pull down system; drill bit attack applied by the weight of the rig. Polymer-based fluids (applied for lubricate and cool the drill bit, support the core walls and bring upwards the drill cutting samples and core sampling diamond drilling method for the target layers (evaporites).

The core diameter ranges from 17 and 1/2 inches to 4 inches, as required by drilling conditions at deeper ranges.

The core diameters were obtained from the downhole geophysical survey of the oil-wells conducted by Schlumberger company.

Drilling data used is historical in nature.

Drill sample recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

The core recovery values were obtained by thorough measures and depth recording.

Measures taken to maximise sample recovery and ensure representative nature of the samples.

A sntetic fluid was applied in core sampling to ensure the salt samples recovery, with no dissolution (perfect caliper)

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

The sample recovery values were higher than 95%, and then no significant loss of mass was observed in the mineralized zone.

Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

A detailed geological logging was conducted for both mud samples and core samples.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.

Both qualitative geological logging and downhole geophysical surveying was conducted.

The total length and percentage of the relevant intersections logged. The drilling data comprises geological logging and/or downhole geophysical surveying data.

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

Core samples were sawn and quarter of the core was submitted for laboratory analysis.




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If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.

The sample was prepared and bagged to prevent the moisture. Samples were dried on oven at 105°C for 8 hours. The moisture was measured by weight variation.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

The core sample preparation technique is compliant with best practices and appropriate for the mineralization type.

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

Three quarter samples were retained in the core boxes for future duplicate assay as required.

Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

Field duplicates were prepared for assessment of sampling error.

Whether sample sizes are appropriate to the grain size of the material being sampled.

The samples sizes are considered by ERCOSPLAN consultant adequate in relation final grain size of sampling.

1/4 of drillcore are appropriate for grain size and applied assay method.

Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

The analyses were conducted at the Ercosplan Geotechnik und Bergbau labs, lacated in Erfurt, Germany, by an Inductively Coupled Plasma Optical Emission Spectrometry equipment (ICP-OES). Samples were dissolved in deionized water. The results comprise the values for potassium salts, sulfates and chlorides, ions and total and residual H2O.

Ercosplan laboratory is certified according to the high standard of quality management DIN EN ISO 9001:2008.

For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

Drillholes were downhole surveyed by geophysical tools. Samples were analysed by handheld XRF.

Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

Drillcore duplicates were produced over 1/4 of drillcore. Internal duplicates and standards on the laboratory analysis.

Standards are not certified reference material. All drilling results are historical in nature.

Verification of The verification of significant intersections by either independent or Verifications of mineralization intersections in the field and in core




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sampling and assaying

alternative company personnel. samples has been undertaken and reported by Coffey consultant.

The use of twinned holes. There are not twin holes. There are data from Petrobras holes performed at approximately 120m from mineralized drillhole, but the evaporitic layers were not assayed. The comparative analysis with downhole geophysic survey presents a high data correlation.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

A comprehensive library of protocols were produced and stored in electronic storages.

Discuss any adjustment to assay data. No adjustments have been made to the assay data.

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

After the conclusion of second stage of drilling work, the drillholes X, Y, Z coordinates were determined through a total station survey and geodetic GPS by a hired specialized company. The accuracy of surveys is high, compatible with the phase of the project.

Specification of the grid system used. Projection: UTM - Zone 23 South; Datum: South American 1969.

Quality and adequacy of topographic control. The topography used in model was created by level curves generated from total station surveys on 3d seismic survey stations.

Data spacing and distribution

Data spacing for reporting of Exploration Results. The drilling program was based on a grid of 1500mx1500m spacing;

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

The spacement of drilling grid and the single intercept on the mineralized zone are insufficient to classify the zone with moderate or high level of confidence. The continuity was not proved.

Whether sample compositing has been applied. Samples were not composited.

Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

The deposit is sub-horizontal and stratiform and the drillholes are vertical. Drilling interceptions were made at approximately 90°.

If the relationship between the drilling orientation and the orientation of key mineralized structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

No sampling bias is recognized as a result of drilling orientation and mineralized strata.

Sample security

The measures taken to ensure sample security.

Drilling and sample custody (second drilling campaign) were supervised by Company's technical team.




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Sample security is ensured through adherence to the steps described on drilling and sampling procedure protocol.

Drilling documentation was organized by hole, in physical files. The drilling and sample database was subjected for further validation

and checks; Consistency checks included sensible ranges of values for attributes,

drill hole collars matching topography (within expected limits), composite overlapping and missing intervals, (litho, density, sampling, recovery), depths, azimuths, dips and co-ordinates;

There was no substantial inconsistencies in drilling and sampling database.

Audits or reviews

The results of any audits or reviews of sampling techniques and data. ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH (ERCOSPLAN), a German consulting and engineering company with large experiences in the potash and mineral salt industry, carried out Technical Due Diligences for Mineral Properties in the Sergipe Basin, Brazil. The Competent Person Dr Henry Rauche was responsible for this due diligences and are Member of European Federation of Geologist (EurGeol - member # 729).




6

Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.)


Mineral tenement and land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

Mining Right # Area (ha) Type of Right

878.111/2008 1 355.57 Exploration Permit

Triunfo Mineração do Brasil Ltda, a wholly owned subsidiary company of Harvest Minerals, holds 100% title to the Mineral Resources.

There are no other third party issues.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

NA

Exploration done by other parties

Acknowledgment and appraisal of exploration by other parties.

Historical data from 5 drillholes, from 1967 to 1991, was acquired from Petrobras by Harvest Minerals. In a second stage, a drilling campaign was conducted by this company, which bought the mineral rights from Sergi Project of B&A.

To date, Havest Minerals has not conducted any exploration activity on the property.

Geology Deposit type, geological setting and style of mineralization. The Sergi Deposit finds itself within the Mesozoic marginal basins context in Brazil (Sergipe-Alagoas Basin), related to Upper Jurassic Gondwana breakup. The basin was installed in a southeastward dipping half graben system, and contains an evaporite sequence called Muribeca Formation, made of anhydrite, halite, taquidrite, carbonates, carnallitite and sylvinite. The potash mineralization consists of two upper sylvinite rich layers and two lower carnallite rich layers, with 25% and 16% KCl average content, respectively.

Drill hole Information

A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

The summary of the available database is presented below:

The Company is not aware of any impediment to obtain a licence to operate in the area.




7


easting and northing of the drill hole collar

elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar

dip and azimuth of the hole

down hole length and interception depth. Due the large uncertainties in the database regarding the lack of survey and assay data and lithological classification, the resource estimation was based on a single hole, with interception depths as follow:

hole length. Weighting averaging techniques and high/low grade cutting have not been applied in reporting Exploration Results. Lower cut-off grades are discussed as part of the estimation and reporting of Mineral Resources in Section 3 of this checklist table.

If the exclusion of this information is justified on the basis that No aggregation of high and low grade has been applied to the data for this

x y z1CAN_0001_SE 695 869.00 8 792 127.00 28.00 360 -90 1 581.001COL_0001_SE 695 620.00 8 794 440.00 28.00 360 -90 1 670.001FT_0001A_SE 694 596.00 8 793 530.00 58.00 360 -90 1 510.001TC_0001_SE 690 119.00 8 795 966.00 56.00 360 -90 1 165.20SED-001-11 694 684.49 8 793 447.63 50.60 360 -90 1 379.40SED-002-12 691 999.56 8 793 077.38 66.96 360 -90 1 231.15SERG-DH-0001 693 635.00 8 792 283.00 50.00 360 -90 1 358.90SERG-DH-0002 694 435.00 8 791 851.00 47.00 360 -90 1 378.00

Hole Azimuth Dip DephtCollar

Hole Mineralized layers From (m) To (m) Lenght (m) KCl (%) gradeSylvinite zone 01 1189.38 1197.65 8.27 20.94Sylvinite zone 02 1221.86 1230.32 8.46 28.98Carnalite zone 01 1298.6 1305.85 7.25 13.04Carnalite zone 02 1313.9 1319.46 5.56 19.5

SED-001-11

Number of holes 8Total length (m) 11 273.65Assay results 140

Sergi Project - Database summary




8


the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

project.

Data aggregation methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.

Metal equivalent values have not been calculated for this potash project.

Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

The drill hole intercepts the mineralization at 90o. The distribution of the individual grades are presented as appendix in this announcement.

The assumptions used for any reporting of metal equivalent values should be clearly stated.

Lithological units present in the area consist of sub horizontal layers.

Relationship between mineralization widths and intercept lengths

These relationships are particularly important in the reporting of Exploration Results.

The geological model created for the mineral resource estimate incorporates an inherent correction for down hole length and true width of mineralization.

If the geometry of the mineralization with respect to the drill hole angle is known, its nature should be reported.

Maps and sections were presented in regional scales.

If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).

Historical data from 5 drillholes, from 1967 to 1991, was acquired from Petrobras by Harvest Minerals. In a second stage, a drilling campaign was conducted by this company, which bought the mineral rights from Sergi Project of B&A.

Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations

and appropriate sectional views.

The Sergi Deposit finds itself within the Mesozoic marginal basins context in Brazil (Sergipe-Alagoas Basin), related to Upper Jurassic Gondwana breakup. The basin was installed in a southeastward dipping half graben system, and contains an evaporite sequence called Muribeca Formation, made of anhydrite, halite, taquidrite, carbonates, carnallitite and sylvinite. The potash mineralization consists of two upper sylvinite rich layers and two lower carnallite rich layers, with 25% and 16% KCl average content, respectively.




9


Balanced reporting

Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

NA

Other substantive exploration data

Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

Aerial, ground and downhole geophysics were used to support geological modelling.

Further work The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).

There is no technical studies in progress

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

NA

Not drilled yet. Grades included in this announcement are historical in nature and not generated by Harvest.

Refer to diagram on page 3 of this announcement.




10

Section 3 Estimation and Reporting of Mineral Resources (Criteria listed in section 1, and where relevant in section 2, also apply to this section.)


Database integrity

Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.

Data extracted from the database for Mineral Resource estimation purposes is run through general checks to ensure data is valid. Coffey performed a final check to ensure the database integrity for resource estimation purposes.

Data validation procedures used. Checks on data include sensible ranges of values for attributes, drillhole collars matching topography and with expected limits, overlapping sample intervals, depths, azimuths, dips and co-ordinates for consistency. Any inconsistent information is either modified or excluded from use in estimation.

The database was subjected to validation and verification. There are no significant problems found on the database.

Site visits Comment on any site visits undertaken by the Competent Person and the outcome of those visits.

Leonardo M. Soares who is registered as Competent Person in the AIG (Australian Institute of Geoscientists) visited the project area and core shed between May 1st and May 2st, 2015.

Drillholes location and data materiality and the conceptual geological model have been validated. Sampling procedures and sample preparation was also validated.

If no site visits have been undertaken indicate why this is the case. NA.

Geological interpretation

Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit.

The level of confidence in the conceptual geological model is moderate.

The similar deposit in production near the area and geological knowledge base of evaporitic deposits are well applied on the conceptual model.

Nature of the data used and of any assumptions made. The modeled mineralization zone was based on two drillholes with positive intersections, one of those had only geophisical survey data from Petrobras. These aspects made the confidence level of geological modes to be at low to moderate.

Site visits undertaken May 1st and May 2nd 2015.

2nd




11


The effect, if any, of alternative interpretations on Mineral Resource estimation.

The interpretation provided by single drillholes interceptions was as horizontal layer. It's possible that there is a low dip angle to southeast under 15°. The effect of this alternative interpretation may result in some consequences in mining planning.

Two types of mineralization zones was interpreted:

The use of geology in guiding and controlling Mineral Resource estimation.

Two layers of Sylvinite; Two layers of Carnallitite.

The factors affecting continuity both of grade and geology. The continuity of modeled potential zone was based on drillhole information and results of 3D seismic survey interpretations.

Dimensions The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.

The mineral resource modeled based on results of 3D seismic survey interpretations and was limited to a radius of 1200m influence area from drillhole interception. The external content of this radius on the influence zone of drillhole interceptions of Sylvinite and Carnallitite was considered as exploratory potential.

The mineralization zone is disposed at depths between 1200 m and 1600 m below surface.

Estimation and modelling techniques

The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.

The weighted average grade of density data and KCl content was completed using Gemcom Surpac software.

The tonnage and grade were estimated based on Gemcom Surpac wireframe model volume, average density and weighted average KCL grade of each drillhole interception.

The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.

There is an in progress estimate for KCl content on Sergi evaporitic deposit prepared for the Brazilian National Department of Mineral Production (DNPM) produced by Harvest Minerals.

The assumptions made regarding recovery of by-products. No assumptions were made regarding recovery of by-products.

Estimation of deleterious elements or other non-grade variables of economic significance (e.g. sulphur for acid mine drainage characterisation).

No assumptions were made regarding these elements.

In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.

NA No block model interpolation performed at this time.




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Any assumptions behind modelling of selective mining units. No local estimation or SMU correction has been undertaken.

Any assumptions about correlation between variables. No assumptions were made regarding correlations between elements.

Description of how the geological interpretation was used to control the resource estimates.

All estimation was completed within individual mineralization units using “hard” boundaries.

Discussion of basis for using or not using grade cutting or capping. The limited number of samples inside mineralization model don't permits the application of outliers treatment.

The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.

There aren't available reconciliation data.

Moisture Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.

All tonnages have been estimated as dry tonnages.

Cut-off parameters

The basis of the adopted cut-off grade(s) or quality parameters applied.

The cut-off grade for resource declaration was determined at 13% of KCl based on the deposit interceptions and information of other KCl projects on Sergipe State, Brazil.

Mining factors or assumptions

Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.

The method to be applied is called Room and Pillar, with the use of continuous miners Marietta rotor type or kind ALPINE; electric transportation equipment (shuttle cars) and feeder-breaker.

The ore will be processed by primary crushing with a cutting head and feeds the conveyor belt that drives the ore dismantled for extraction shaft silo, where by production skip is lifted to the surface.

Metallurgical factors or assumptions

The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of

No assumptions were made regarding process for economical extraction. However Taquari-Vassouras Mine from Vale uses a process composed of rod mills, sieve classification, desliming, and flotation centrifugation, where the concentrate is obtained KCl.

The type of mineralization is very similar with Taquari-Vassouras ore.




13


the basis of the metallurgical assumptions made. Environmental factors or assumptions

Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.

The main waste of the processing process is sodium chloride (NaCl), which is dissolved and thrown on the sea by a duct.

It is a chain with large solid waste generation and also deposition at different stages of industrialization.

Bulk density Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples.

The density value applied in the mineralization zones is the weighted average values of density based on the downhole geophysical survey .

The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc.), moisture and differences between rock and alteration zones within the deposit.

Density values were surveyed at each 20 cm.

Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.

Weight averages of composited intervals of density drilling data.

Classification The basis for the classification of the Mineral Resources into varying confidence categories.

The 3D mineralization wireframe model was Classified Mineral Resource within a influence area with radius of 1200m from drilling interception and limits of 3D seismic survey interpretations.

Whether appropriate account has been taken of all relevant factors (i.e. relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).

Account has been taken of: Quality and reliability of raw data; Confidence in the geological interpretation and continuity; Number, spacing and orientation of intercepts in each mineralized zone;




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Sergi Deposit: Mineral Resource - Effective Date 10 June 2015.

Mineral Tenement – DNPM – 878111/2008. Considered KCl Cut-off Grade: 13% KCl

Resource Class Lithology Mass (Mt) KCl (%) Equivalent

K2O (%)

Inferred Sylvinite 62.0 25.0 15.8

Carnallitite 43.3 15.9 10.0

Total Inferred 105.3 21.3 13.5

Triunfo Mineração do Brasil Ltda, subsidiary company of Harvest Minerals, holds 100% title to the Mineral Resources.

The Mineral Resources are reported at a cut-off grade of13% KCl. The Mineral Resources have been estimated according to general

industry good practice and disclosed in compliance with the guidelines defined in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code, 2012 Edition).

Equivalent K2O was Calculated by the formulae: Equivalent K2O = 0.63177 * KCl (%);

The Exploration target is estimated on a further 28 to 32Mt at 22% to 28%KCl of sylvinite and 23.0Mt at 15.9%KCl of carnallitite.

Whether the result appropriately reflects the Competent Person’s view of the deposit.

The classification of mineral resource as Inferred is based on the low confidence in the continuity of the Sylvinite layer, which had only one drilling intercept with assay results.

Audits or reviews

The results of any audits or reviews of Mineral Resource estimates. No audit of the estimate has been undertaken.

Contained

ContainedContained




15


Discussion of relative accuracy/ confidence

Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.

The mineral resource was estimated by the Competent Person at Inferred class.

The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.

The resources is related to global resources, no change of support or no linear geostatistical procedures were used to allow direct use to define mineable resources.

These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

There is no production data to be compared.

independent inferred mineral resource … inferred mineral resource estimate completed for ... on...

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