NI 43-101 Preliminary Economic Assessment - Verde Potash

Verde Potash Plc 15-5
Cerrado Verde Project
NI 43-101 Preliminary Economic Assessment
However, the average weighted price obtained reflects individual prices per crop. Consequently,
the price would exceed the maximum price for some crops and the product would be too
expensive. Therefore, the price was realigned to cater to 95% of the potential market. In this
case, the resulting price is the potential price for ThermoPotash at the mixing center.
Then, discounting transport and ICMS costs, we obtained an adjusted ThermoPotash price at
source (São Gotardo-Minas Gerais).
15.1.6 Process to Determine the Potential Market for ThermoPotash
Was calculated the potential market for ThermoPotash for each of the crops and the results were
then added together to calculate the potential in each state.
In this calculation, the data was based on 2010 fertilizer demand for each crop in each state.
Then, based on frequent market surveys carried out by AgroConsult, we defined the market share
of each of the six formulas selected during the fertilizer process, totaling 100%. This is how we
obtained the fertilizer volume used in each of the formulas.
Based on the proportion of ThermoPotash in each of these formulas (1,000kg), obtained using
the optimization process, we calculated the ThermoPotash potential for each formula. In this
case, we multiplied the proportion of ThermoPotash by the volume of fertilizer in each of the
formulas.
Total ThermoPotash potential for each of the six formulas provides us with the potential market
for each crop. Market potential by state is obtained by adding together the results from each
crop.
15.2 Contracts
Verde does not yet have any contracts in place at the time of this report.
The QP has reviewed data and information provided by ArgoConsult and finds that the
assumptions made are reasonable.
SRK Consulting (U.S.), Inc. September 16, 2011
Cerrado Verde_NI 43-101 PEA_343500.020_007_KG