Aguia Resources Limited reported the results of agronomic tests using Natural Fertiliser Pampafos from Aguia's Phosphate Project. All testing was carried out in the southernmost Brazilian State of Rio Grande do Sul (`RS' or the `State'). This is the first time company have tested Pampafos on native pastures.

Pampafos marketing is ordinarily focused on cropping, where fertilisers are essential for production. In RS, cattle growers rarely use the available chemical fertilisers due to their high cost. The outstanding test results on native pastures, which are reporting for the first time, have turned that assumption around and opened a potentially vast new market at the doorstep of Phosphate Project with competitively priced product.

These results consolidate data generated over one year of agronomical testing and research with native pasture in the State. The testing program will continue, and the yield results will be reported as they become available. Agronomic tests using Pampafos fertiliser were performed on native pasture located on a commercial farm at Dom Pedrito - RS.

Brazil is the world's largest beef exporter, and the RS State has the seventh largest herd of beef cattle in Brazil, with 12 million head of cattle and over 9.1 million hectares of pastoral land available for cattle raising. Approximately 7.5 million hectares are native pasture, and the remaining 1.6 million hectares comprise planted pasture. The native pasture is an excellent forage grass for cattle; it has long been the primary food source for cattle in the region.

Pastures, native or planted, represent about 95% of the feed for cattle-raising farms in Brazil, with mass production directly proportional to the increase in cattle weight and consequent beef production. The tests were carried out on cattle properties with no previous fertilisation history and included three different agronomic treatments. Each treatment was settled in a 1-hectare area, and the phosphate sources, Pampafos and Triple Superphosphate (TSP), were spread on the soil surface.

In addition to the P source, each 1-hectare treatment was subdivided into three minor areas with the application of different dosages of nitrogen (N). Pasture dry mass production was determined by manually cutting plants' green mass in sample areas. Six areas of 0.25m2, randomly selected, were sampled for each treatment.

Samples were collected by cutting all green mass from 3 cm from the ground at the end of each season (3 months). Samples were dried at a temperature of 62° Celsius for 72 hours in an oven. The dry samples were weighed, and the dry matter values were calculated in kilograms per hectare (kg/ha).

Treatment T2 with P2O5 applied through Pampafos resulted in better production levels of dry mass, independently of the dosage of nitrogen in the native pasture field, when compared with the treatment T3 with P2O5 applied through TSP. The application of Pampafos, T2 with a dosage of nitrogen (45 N), produced 12,147 kg/ha of dry mass, representing a production 41% higher than the Control treatment (8,612 kg/ha) and 14% higher than treatment with TSP (10,646 kg/ha) in the same conditions. The treatment T2 with a higher dosage of nitrogen (90 N) associated with Pampafos reached a dry mass production of 12,600 kg/ha, maintaining the dry mass production of treatment T3 in the same condition of nitrogen (90 N) associated with TSP (12,535 kg/ha).