Gensource Potash Corporation and HELM Fertilizers announced its plan to double the overall potash production capacity of the Tugaske Project, from 250,000 tonnes per year to 500,000 tonnes per year, under a second phase of the Tugaske Project (“Phase 2”) by adding a second module to the Tugaske Project. It is expected that Phase 2 will be implemented immediately following the completion of the first phase of the Tugaske Project (“Phase 1”). With increased global demand for potash in response to structural changes in the global agriculture and fertilizer markets, HELM sees significant opportunity for the sale of additional potash production through its existing market channels, including demand for organic potash.

Phase 2 is expected to be significantly accretive to the overall returns of the Tugaske Project as it is expected to enjoy the benefits of infrastructure investment from Phase 1, operational synergies and provincial government incentives built into the potash production tax regime, which encourage investment. From the beginning of project design of the Tugaske Project, the on- and off-site infrastructure (water, gas, rail and road access, etc.) was designed by the Company to accommodate two modules, an approach taken to make the addition of a second module as efficient as possible.