Kore Potash : Extracts from financial results for the year ended 31 December 2021

Kore Potash plc

(Incorporated in England and Wales)

Registration number 10933682

ASX share code: KP2

AIM share code: KP2 JSE share code:KP2

ISIN: GB00BYP2QJ94

("Kore Potash" or the "Company" or the "Group")

Extracts from financial results for the year ended 31 December 2021

Kore Potash, the potash development company with 97%-ownership of the Kola and DX Potash Projects in the Sintoukola Basin, located within the Republic of Congo ("RoC"), today reports its audited financial results and operational highlights for the year ended 31 December 2021 ("Period").

The full financial report including its Corporate Governance Statement is available online at the Company's website athttps://korepotash.com/wp-content/uploads/2022/03/Kore-Annual-Report-2021.pdf The financial statements contained within this announcement should be read in conjunction with the notes contained within the full financial report.

Highlights

• • On 6 April 2021, the Company signed a non-binding Memorandum of Understanding ("MoU") with Summit on behalf of a consortium of investors and engineering firms, to arrange the total financing required for the construction of the Kola Potash Project ("Kola").

  • o The MoU outlines a roadmap to optimise the capital design to fully finance and construct Kola via a mix of debt and royalty financing.

  • o The MoU was signed in the Brazzaville's Minister of Mines offices, with the Minister

    and his key staff present. Under the proposed financing arrangements, the RoC Government will retain their 10% shareholding in Kola.

  • o During the Period, Summit and their technical partners SEPCO Electric Power

    Construction Corporation ("SEPCO"), signed the Optimisation Agreement to undertake a study ("Optimisation Study") to reduce Kola's capital cost with a target of less than USD 1.65 billion ("Target Capex"). A team of representatives from Kore

    Potash, China ENFI Engineering Corporation ("ENFI") (a key subcontractor to SEPCO)

    and the RoC Minister of Mines completed a Kola site visit and data handover.

  • o Under the Summit Consortium's proposed financing structure, the Company will not

    contribute to the capital needed to build the Kola project and will retain a 90% equity interest in Kola. A Financing proposal is expected to be received after the EPC proposal is presented by the Consortium to the Company.

  • o On 10 November 2021, the Company announced it had received the Interim Optimisation report on the Kola Project from SEPCO. The report covered 53 capital reduction opportunities for Kore Potash to evaluate for inclusion in the Optimisation Study Report.

• • During the Period, the Company successfully raised USD 14,026,563 through equity funding.

  • o On 8 April 2021, the Company completed an oversubscribed fundraising. A total of 823,475,618 New Ordinary Shares were issued at the Placing Price of 1.1 pence (2.0

    Australian cents) for a total value of USD 12.6 million, exceeding the initial USD 11.0 million target.

• o Following the fundraising, Oman Investment Authority, Kore Potash's largest shareholder, in line with its rights under their investment agreement with the Company, subscribed for 92,226,613 New Ordinary Shares in the Company at the Placing Price of 1.1 pence for a total cash consideration of USD 1.4 million.

• • The Dougou Extension ("DX") Definitive Feasibility Study ("DFS") Phase 1 results were published on 27 May 2021 with the following highlights and subsequent work:

  • o The Phase 1 work program for the DFS was completed on budget, including the drilling of seven diamond drill holes and geochemical testing.

  • o Key technical studies and laboratory test work for Phase 1 of the completed DX DFS.

  • o An improved geological model for the DX deposit incorporating all recent drilling information was completed in Quarter 4 2021. It improves confidence in the geological modelling of the DX deposit and improves the understanding of the Sylvinite / Carnallite boundaries in the Top Seams and Hanging Wall Seams.

  • o The Company is assessing the most appropriate next steps for developing the DX deposit.

• • As a result of the COVID-19 Pandemic, two long term Congolese consultants to the Group sadly passed away during the Period. The Group expresses its deepest sympathy to their families, friends, and colleagues. The Group has provided support to the families in line with best practices in the Congo. The Group's Pointe Noire office was temporarily closed in October 2021 to reduce potential staff exposures to COVID-19, and our staff worked from home. The office reopened in November 2021. Although COVID-19 is ongoing, it has not had a material impact on the Group's operations during the Period.

• • During the Period, the Company did not renew the Sintoukola 2 exploration permit. The Group had not undertaken any exploration work on the Sintoukola 2 permit area and continues its focus on developing the Kola and Dougou projects.

Brad Sampson, Chief Executive of Kore Potash, commented: "We have made good progress during 2021. Despite the difficult circumstances facing the global economy, Kore Potash has been able to advance the Kola project.

Rising food prices and the growing global demand highlight the importance of fertilisers, including potash, a vital agri-nutrient required for quality plant growth and crop yield to the global economy. With high grades, significant resources and a beneficial location, the Sintoukola Basin is one of the most promising potash deposits in the world. It has the potential to produce MoP needed by farmers around the world for generations.

Key milestones were delivered in 2021 to progress the Kola Project. We expect to inform shareholders of our progress on the Kola Project Optimisation Study shortly and to provide an update on the EPC and Financing proposals we expect to receive later in 2022."

Summary of financials

• • During the Period, the Group's Total Comprehensive Loss was USD 13,470,876 (2020: Gain

  USD 8,177,582), and the Group experienced net cash outflows from operating and investing activities of USD 7,499,811 (2020: USD 9,271,039 million). Cash and cash equivalents totalled USD 11,092,509 as at 31 December 2021 (2020: USD 5,555,000).

• • Group net assets decreased in the year to USD 177,419,886 (2020: USD 177,661,602). This was primarily driven by an increase in funds of USD 5,537,509 as a result of the fund raise, a USD 6,581,097 increase in exploration expenditure capitalised offset by a USD 11,992,945

reduction in the capitalised exploration costs due to the strengthening of the USD against the currency of the RoC.

• • The Directors prepared a cash flow forecast for the period ending 31 December 2023, which indicates that the Group will have sufficient liquidity to meet its working capital requirements to the end of the going concern period (March 2023). Please refer to Note 1 to the financial statements for more detail on the going concern statement.

• • The Company will be required to raise funds after the going concern period to meet its ongoing contracted and committed expenditure. The Directors have considered various mitigating actions, which include raising additional capital to enable the Group to continue to fund its working capital requirements. The Directors have identified a number of funding options available to the Group.

Salient consolidated financials required to be disclosed under the JSE Listings Requirements

31 December 2021 USD	31 December 2020 USD	Change USD
Interest Income	14,709	30,116	15,407
Loss for the year	(1,941,196)	(3,144,172)	1,202,976
Headline loss per share	(0.06)	(0.17)	(0.11)
Basic loss per share	(0.06)	(0.17)	(0.11)
Diluted loss per share	(0.06)	(0.17)	(0.11)

Short-form announcement

This short-form announcement is the responsibility of the board of directors of Kore Potash and is a summarised version of the group's full announcement and financial results and as such, it does not contain full or complete details pertaining to the group's results for the financial year ended 31

December 2021. Any investment decision should be made after taking into consideration the full annual results for the financial year ended 31 December 2021. The full announcement and the annual results for the financial year ended 31 December 2021 is available on the JSE's website athttps://senspdf.jse.co.za/documents/2022/jse/isse/kp2e/FY2021.pdf and on the group's website athttps://korepotash.com/wp-content/uploads/2022/03/Kore-Annual-Report-2021.pdf

The full announcement and annual report for the financial year ended 31 December 2021 can be requested via direct message under the contact section on the company website athttp://www.korepotash.com/contacts/

END

31 March 2022

For further information, please visitwww.korepotash.com or contact:

•	Kore Potash	Tel: [phone]
•	Brad Sampson - CEO
•	Tavistock Communications	Tel: [phone]
•	Jos Simson
•	Oliver Lamb

•	SP Angel Corporate Finance - Nomad and Joint	Tel: [phone]
Broker
•	Ewan Leggat
•	Charlie Bouverat
•	Shore Capital - Joint Broker	Tel: [phone]
•	Toby Gibbs
•	James Thomas
Questco Corporate Advisory - JSE Sponsor	Tel: [phone]
Doné Hattingh