Australian Potash Limited provided the following update on the Lake Wells Sulphate of Potash Project (LSOP). APC has been conducting an exhaustive funding process for the LSOP over the past 12 months. This was conducted against a backdrop of recent very high sulphate of potash prices, global fertiliser shortages and a project valuation of between AUD 774 million and AUD 1.025 billion.

By the time the strategic process started, APC had completed detailed design and engineering and secured debt funding with NAIF, subject to raising the appropriate equity. The project was therefore effectively ready to go into construction once the equity was secured. Having made data and information on the LSOP available to various parties, the strategic review process has not resulted in a transaction that was considered suitable for the Company or its shareholders.

As such, considering that this process has been adequately exhausted, the directors have made the difficult decision to cease this process. There is no doubt that recent company failures in the developing WA potash industry have created a negative perception of solar SOP projects in WA. The directors and management of APC are confident the work done on the LSOP to date demonstrates it to be a high value, well-engineered project, supported by a thorough test work program and on-site evaporation piloting, as disclosed through the Company's consistent ASX releases over the past 9 years.

However, and without a funding proposition to consider, the directors have made the hard decision to surrender the LSOP mining leases, which have a high holding cost. The relevant documents have been lodged with the Department of Mining, Industry Regulation and Safety. The Company retains its interest in the exploration license tenure it holds at Lake Wells.

The directors have received consideration of AUD950,000 for components of the Lake Wells camp assets and are holding discussions around the sale of bore-field inventory and other site assets.