South Harz Potash Limited reported on its activities for the quarter ended 30 June 2022. Drilling and assay of two confirmatory drillholes within the Ohmgebirge Mining Licence (Ohmgebirge) area of the South Harz Potash Project was successfully completed in early June. Drillhole OHM-01 was designed to twin and confirm the results of the historic drillhole, Kal Ktf 5/83, which was drilled in 1983.

This historic drillhole recorded potash within the Staßfurt Potash Horizon from a depth of 785.20m to 788.20m (3.0m thickness) with a historic reported grade of 12.4% K2O. Drilling of OHM-01, located 100m west of the historic drillhole was completed to a final depth of 778m, in order to fully penetrate the known Staßfurt Potash Horizon. OHM-01 intercepted the top of the Staßfurt Potash Horizon at 775.05m and returned anintercept grade of 16.9% K2O over a length of 3.75m from 775.05m.

Drillhole OHM-02was completed to a depth of 721.32m and was designed to twin and validate the results of the historic drillhole Kal Wr 6 Liese, which was drilled in 1906. Thehistoric drillholerecorded potash within theStaßfurt PotashHorizon from a depth of 651.70m to 657.20m (5.5m thick) with an historic reported grade of 15.72% K2O. Drilling of OHM-02, located 148m west of the historic drillhole, intercepted the top of the potash horizon from 651.53m down to a depth of 662.51m, a total apparent thickness of 10.98m and an interpreted true (vertical) thickness of 7.51m.

The confirmatory drillhole program was targeted to allow South Harz to upgrade a substantial proportion of the Ohmgebirge Mineral Resource estimate to the Indicated category. An update to the OhmgebirgeMineral Resource estimate was completed in July. The updated Mineral Resource is 338 Mt at 12.9% potassium oxide (K2O) for approximately 44 Mt of contained K2O.

This estimate comprises 290 Mt of Sylvinite (key focus seam for development)grading 13.5% K2O (split approximately 89% Indicated and 11% Inferred categories) and 48 Mt of Carnallite at 9.8% K2O (100% Inferred). The updated Mineral Resource was undertaken by leading geological consultancy, Micon International Co Limited (Micon), based on available historic exploration data combined with the two confirmatory diamond holes drilled at Ohmgebirge by South Harz earlier this year. The Scoping Study for Ohmgebirge is approaching conclusion.

Upon incorporation of the updated Mineral Resource estimate, and finalisation of the concurrent mine scheduling workstream, South Harz expects to complete the Scoping Study and release the key outcomes during August. South Harz's cash balance at 30 June 2022 was AUD 6.7 million. The Company has no debt or convertible debt-like instruments (excluding typical trade creditor balances).

2.1 million, AUD 0.08 options were exercised during the quarter for total proceeds of AUD 167,000. There are currently 78.2 million, in the money, unlisted options outstanding.