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Ana Sofia

The Ana Sofia Agri-Gypsum Project (the "Project") comprises two mining concessions totaling 50 hectares (ha) in size within a larger (approximately 600 ha) exploration permit area. The Project is well situated within a region where other small producers are currently extracting agricultural gypsum and selling to fertilizer distributors and farmers. An initial inferred gypsum resource for the Project was estimated (news releases - October 31; December 16, 2016), to comprise 1.47 million tonnes averaging 94.1% gypsum, using an 85% cut-off grade that is the minimum required gypsum content for commercial-quality agricultural gypsum products in Argentina.

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The pilot plant has a process design capacity of 4,000 tonnes/month. Gypsum is quarried from near-surface, flat-lying beds within the sedimentary formation that extends throughout the Ana Sofia, Santiago del Estero, Argentina Property. The gypsum rock is fed into primary and secondary crushers, then screened and sorted into two agri-gypsum fertilizer products. The plant is designed to produce both a pellet-sized granular product and a powdered product (each comprised of a minimum 85% gypsum content) that are packaged into one tonne tote bags. Agricultural gypsum (calcium sulfate) is a valuable plant nutrient and plays a vital role in maintaining soil structure and nutrient balance in South American soils, allowing great crop yields.

* Technical content has been reviewed and approved by Andrew J. Turner, B.Sc., P.Geol. of APEX Geoscience Ltd., who is the Company's Geological Consultant and is a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

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