the united states potash project

June 2017

The United States Potash Project

The World’s Premier Food Grade Potash and Salt Manufacturing Project

Materials Prepared for the

Township of Evart

June 2017

Introductory Video:

https://youtu.be/vuE0GbbJk3s

MICHIGAN POTASH COMPANY, LLCMICHIGAN POTASH COMPANY, LLC

Video Link: https://youtu.be/vuE0GbbJk3s

Dubbed the ‘US Potash Project,’ with a purported $65 Billion of proved and probable reserve.

MPC controls the highest quality rock on the planet, and one of the largest resources defined worldwide. Potash, a strategic and critical mineral is the tightest controlled commodity on earth. The US is 94% import reliant. Presented before the US Congress Department of Natural Resources. The company remains family owned.

Featured Cover Story on USGS.gov, May 2017

300 Construction Jobs and 170 full time jobs following a 30 month turnkey, capped cost build. Deploying Capital, Royalty, and Tax Base for Evart Township, sustainable for over 150 years.

260 years of combined potash management experience to create a renaissance.

Contents and Presentation Objective

I. About Potash

II. Why Evart is Special

III. Locator Maps and Historical Operations

IV. Water Stewardship and the Manufacturing Process

People. Providing. Strengthening. Securing.

I. About Potash

KPotassium

39.09819

Source: Potash and Phosphate Institute, USGS

Potash is a natural potassium fertilizer,

and the tightest controlled commodity in the world.

NK P

Soybeans with and without the application of

Potash.

Potassium, Nitrogen, and Phosphorus,

the three major elements required for

plant growth.

Potash is an essential plant nutrient and

nutritional requirement for animals and

humans. It has no known substitutes.

Although potash is used worldwide, only

12 countries and only 10 companies

produce it in commercial quantities.

Amongst comparative world commodities,

potash is the most tightly controlled.

Our farmer’s rely on potash to grow our

food and they pay more for potash than

anybody else in the world.

Global arable land per

capita decreases each year;

down 51% since 1961.

Arable land must now

yield ~3x as much crop as

it did in 1961.

As world population increases, arable farm land decreases.

Crops per acre must increase.

“over the next 40 years, we need to produce more food than the last 8,000

years combined,” – United Nations World Food Program

Potash is a critical and strategic necessity for

farmer welfare and national food security.

In the last eighteen months,

US potash production dropped

950,000 tpy (over 70%),

accelerating the US path to

over 95% import reliant; a

level not experienced since

World War I.

Emergent competitive

countries have put pressure on

identifying new potash

sources and procuring potash

supply.

This message was presented

before Congress by MPC in

2013; then 86% import reliant.


Unprecedented Strategic and Critical,

Infrastructural, and Balance of Trade Need

The U.S. produces 40% of the world’s

maize and 36% of the world’s soybeans.

These crops are among the highest

potash consuming cash crops.

Domestic potash supply principally

comes from the Designated Potash Area

in New Mexico; established in 1939, IN

2016, IT MATERIALLY CEASED

PRODUCING MURIATE OF POTASH.

The US Defense Production Act

mandates Infrastructural support for the

distribution of potash for which only

Michigan can provide based on its

location.


II. Why Evart is Special

The Evart Benefit

While being a new facility, the new plant represents a “re-start”

of an existing operation;

The MPC Team inherits the benefit of previous, established

experience and lessons learned from producing at the site, and

selling from the site for over 25 years, less than 1.5 miles away;

MPC’s senior team were a part of the building, commissioning,

operations, and management of the former facility, and other

facilities worldwide;

The Michigan way of manufacturing creates potash and salt in

a way that is the most efficient in the world.


MPCMPCSource: MPC, Morgan Stanley, Goldman Sachs, Scotia

COGS: Cash Cost at Mine Gate, Including Royalty and SG&A

THE EVART

Sustainable

Advantage

• Highest Potash Grade in the

World (>55% KCl)

• Best Location in the World

• Demand Center (6.5 Mil tpy

demand within 1 Truck day)

• Salt Co-Product (8.0 Mil tpy

demand within the Midwest)

• No People Underground

• Accessed Site Unseen

• Handled Once and Made Safely

Here

• Made in the USA

A Communal Effort to Begin With

Between 2011 and 2013, the MPC and families ofOsceola and Mecosta county engaged in roughly 450lease agreements.

A mineral lease is a contractual agreement betweenMPC and the mineral owner.

MPC provides the capital, the expertise, the effort, anupfront payment, and a 5.0% royalty share uponproduction in exchange for the exclusive opportunity todevelop.

~ $ 10.0 Million/Year Royalty*

$250/ton * 650,000 ton/year * 5% = $ 8.4 Million/Year

$ 80/ton * 650,000 ton/year * 4% = $ 2.0 Million/Year

For >100 years *Subject to commodities prices, production levels,

forward forecasts and marketing

A Communal Effort to End With

During construction, upwards of 300 jobs will be created.

At operations, upwards of 170 direct jobs will be created.

The facility budget approximates $ 60 Million/Year. This

keeps the facility running and goes back to the community.

The industrial tax base in Osceola County is currently $ 122

Million. The MPC project could double that.

Local taxes should be for the Schools, and our Schools

should be the beneficiary.

A $ 700 Million Dollar Endeavor, that

delivers infrastructure, jobs, self

reliance, and new GDP to Evart and

Michigan, by providing to our

farmers.

Impacting Michigan, Indiana, Ohio

and Wisconsin fabrication and trade

shops by procuring high volumes of

manufacturing equipment in all

directions, and deploying additional

construction capital, creating upwards

of 300 onsite construction jobs and

170 full time, skilled, high paying

direct jobs. Impacting infrastructure

development in all directions

MPCMPC


WORLD CLASS PROJECT. WORLD CLASS TEAM.

UNPARALLELLED CONSTRUCTION, OPERATION, & MARKETING EXPERIENCE.

Owner. The World’s foremost expertise in potash geology, solution mining,

plant operations, maintenance, and commissioning. The same expertise

responsible for building, operating, maintaining, producing, and selling both

potash and salt from Hersey Michigan since 1989 and Belle Plaine,

Saskatchewan since 1964. A combined 260 years of management experience.

EPC Lead. Michigan’s largest trade employer and world wide Engineering,

Procurement, and Construction Services Firm, recognizing 3 Billion in

Revenue a year, with a rigorous ‘to build’ mentality and unparalleled Michigan

presence, reputation, and ability to stay on time and budget, safely.

EPC Team. America's pace-setter in turnkey construction, engineering,

maintenance, turnaround and fabrication services to the power, energy,

chemicals, manufacturing and industrial sectors with an established and

successful EPC relationship with Barton Malow.

EPC Team. The same execution team immediately responsible for the

construction of the K+S Legacy project. The worlds foremost turnkey

construction, engineering, and construction firm specific to potash and salt

evaporation and crystallization plants.

EPC Team. The same execution team immediately responsible for the

design and building of the Intrepid Potash Carlsbad, Wendover, and Moab

compaction facilities and expansions. Involved in all the most recent North

American potash projects with unparalleled expertise in dry bulk compaction

and handling specific to fertilizer.

Offtaker. One of the largest private companies in America, and the largest

merchandiser of fertilizer trade and bulk handlers in the world, with specific

expertise in North American distribution, Trans-atlantic/pacific movements

and worldwide global fertilizer markets.

Feed Design. A long history of evaporation and crystallization expertise,

beginning with Arab Potash in 1964, Jacob’s was utilized collaboratively by the

MPC team to deliver full feasibility and advanced process design over a 3 year

period.

MPCMPC Ow

ner

En

gin

eer-

Pro

cure

-Co

nst

ruct

Off

take

Des

ign

www.mipotash.com

www.bartonmalow.com

www.zacharygroup.com

www.millcreekeng.com

www.trammo.com

www.jacobs.com

II. Locator Maps and Operations

Potash Has Been Produced Here Since 1989

Only 1 of 3 Locations in the United States

1984 Historical Area of Study, Prior to the now current and offset facility


46 3

8 9 10

5

7

123

10 11 12

31 32

2930

3433

28

19 21 2220

2729

3532 33 34 36

22 23 24

28

20

27 2526

21

17N8W17N9W

Mani f ol d

M04477,811

M04487,812 M0458

7,941

M03477,285

M03487,827

M03667,951

M03788,116

M03798,045

M03807,890

M03838,010 M0384

8,066

M03857,595

M03877,876

M03918,052

M03947,973

M04078,018

M04137,865

M04187,810 M0419

7,950

MICHIGAN POTASH OPERATINGMICHIGAN POTASH OPERATING

Hersey Michigan

Area of Review ("AOR")

Showing Class III Wells

Active and Plugged

POSTED WELL DATA

API SeriesWELL - TD

WELL SYMBOLSClass III Injection Well

Class III Injection Well Plugged

MILES

0 1

PETRA 1/27/2015 4:31:28 PM

Identical Operations and Are Immediately Offset

2 NonHaz Class I Wells

~ 25 Potash Class III Wells

New Location



MPC has permitted 11 New Potash Wells drilled directionally

from a Central Location Measuring ~ 2.3 Acres

To 7,600’ Below Ground


MPC has permitted 11 New Potash Wells drilled directionally

from a Central Location Measuring ~ 2.3 Acres

The Tallest Sky Rise in Grand Rapids is the River House Condominium, measuring 406’ tall and 34 stories.

7,600’ below ground approximates 19 of these buildings, or 633 stories.


The wells are 7,400’ below groundwater wells.

Wells and facilities are contained, in both secondary and tertiary containment and monitored with groundwater wells.


III. Water Stewardship and the Manufacturing Process


Farmers, arguably rely on water more than any other profession. Without water, there is no Farm.

There are 53,000 Farms in Michigan. A 91 Billion dollar economic contribution to the State.

Second only to water are crop inputs, which directly affect water stewardship.

Liebegs Law of the Minimum(Growth is not controlled by the total

amount of resource available,but by the scarcest resource

(limiting factor).

Lowest barrel rungcontrols – showing potash’scontrol on water. 1936 Dustbowl. Cimmaron, OK


“Potassium levels are a critical component to water management, allowing growers to get the most efficient use of what water they have available for a specific crop.”

– Dr. R. Miles, University of Missouri

“The Positive effect of potassium on the whole plant development results in better water economy of plants.”

– Dr. P. Imas, Senior Agronomist

Potash Improves Water Use by Plants.

Decreases over irrigation.

Enabling more dryland farming.

Increases Yield.

More crop yield based on better Water Use Efficiency (Yield/ET)

K

K

KH2O

H2OH2O

K

H2O Effective H2O uptake

Hydrophilic K+ keeps water in surface soil

H2O

Potassium (K+) Dramatically Reduces Crop Water Needs, Strengthens Crops during Drought, and

Increases Water Retention in Soils


Helping Michigan farmers steward water use, while reducing input costs is what we do.

Potassium deficient plants dehydrate.Potash reduces irrigation volume. Potash helps dryland farming; when irrigation would otherwise be considered necessary.

Wat

er U

se E

ffic

ien

cyYi

eld

/ET

Potassium Availability

Corn, Same Soil, Same Amount of Water


Michigan Utilizes 209 Million Gallons Per Day Of Irrigation Water a Day. Climate change exacerbates

the need for smart water use.

Yiel

dW

ater Citrus, Same Soil, Same Amount of Water

Sugar beet, Same Soil, Same Amount of Water

425% Yield Increase

-K +K

Sugar beet

Water Mass/Uptake is Visablly Observable.


The MPC process is a well established, highly efficient, highly purifying, water recycling system. It is one of the most advanced (and expensive) means of water treatment.

A CLOSED LOOP SYSTEM, the process

creates purified distilled water from

steam.

81-90% of all water is recycled

perpetually. 3.0

Boil to Separate Steam and Solids

1.0 Fresh Water

2.0 Dissolve Potash to Create Salt

Water


Salt Water

Heated

Steam

Hot Water

Salt Water CooledCold Water

Salt(Food Grade)

Potash(Food Grade)

Hard Water

Mg and Ca4.0-8.5 %Process Losses

Salt Water Saturated in NaCl and KCl

Rec

ycle

d F

resh

Wat

er

Class III Brine Wells, 7,800’ below surface

Class I Injection Well, 5,500’ below surface

Fresh Water Well

0.8-2.0% Lost to Cooling Tower Steam

Water For ProcessLosses

Closed loop. Food Grade. The same technology utilized to make sugar.

Excess hard water raises boiling temperature, so it needs to be removed. This stream is far cleaner than the resident water in the disposal zone.

Fresh Water and Salt Water are both used to gather potassium.

2.0 Dissolve Potash to Create Salt Water

1.0 Fresh water

3.0 Boil to Make Steam and Solids


Salt Water CooledCold Water

Potash(Food Grade)

Hard Water

Mg and Ca4.0-8.5 %Process Losses

Class I Injection Well, 5,500’ below surface

A CLOSED LOOP, FOOD GRADE, SYSTEM. THE SAME TECHNOLOGY USED TO CREATE SUGAR.

The water stream being disposed of, is food grade brine, cleaner than the water being displaced over a mile underground.

As you go deeper into the earth, water gets dirtier. Our water is clean.

The Most Efficient Water Use Technology in the World. Period.

MPCMPC


1 Acre-Ft Yields 4,237 lbs of corn (170 Bushels x 56 lbs/2.20 Acre-ft)

1 Acre-Ft Yields 1,650 lbs of soybean(48 Bushels x 60 lbs/1.74 Acre-ft)

1 Acre-Ft Yields 1,220,000 lbs of potash

The Hydrological gain MPC provides to Michigan by reducing irrigation, improving dryland farming,

and improving WUE is massive.

MPC produces enough potassium for

3-4 Michigan Farming Families Every Hour70-90 Michigan Farming Families Every Day2,700 Michigan Farming Families Every Month

Enough Potash for all of Michigan’s needs, and for its neighbors too.

The cost is 1 irrigation well and a backup; portions of which can come from unsafe water from depths in excess of 300’.

In exchange for 1 irrigation well, MPC provides water saving, organic fertilizer for all of Michigan, Wisconsin, Northern Indiana and Ohio consumption centers (ALL THEIR NEEDS!)

Source: MDEQ


QUESTIONS

III. Hydrological Source

The Regional Source comes from a deep water called the Lower F and E/1. The E/1 is not safe for drinking.


Lower F, E/1 Potash Use

FPotable Use

Regional Confining Layer

E/1Sulfate above safety standard – Non Potable

F

Screen Depth Histogram

Lower FConfining Layer

the united states potash project

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