July 18, 2016

Research #1Potash in Thailand

Vatic Ventures is backOn July 12, Vatic Ventures Corp. has filed with the TSX Venture Exchange the preliminary documents required for the approval of the acquisition of 80% of Saksrithai Development Co. Ltd. As a result of filing the preliminary documents together with its annual financial statements with various applicable securities commissions, the company’s cease trade order has been revoked and its shares have been reinstated for trading effective July 14. Rockstone is starting to follow Vatic’s corporate developments and will report, once materialized, more details on its intent to acquire 80% of the issued and outstanding shares of Saksrithai Development Co. Ltd., a Thailand company holding 2 Special Prospecting Licences (“SPL”) for the exploration of potash in northern Thailand’s prolific Khorat Basin, which contains a relatively large evaporate basin of Cretaceous age. The Dan Khun Thot Project from Thai Kali Ltd. is located adjacent to, and contiguous with Saksrithai’s licence area which Vatic intends to acquire. Dan Khun Thot’s initial mineable reserve has been estimated to be 103 million t at an average potash grade of 21.5% KCl. Both sylvinite (up to 5 m thick) and carnallite (up to 60 m thick) are present in drill holes.

Company Details

Vatic Ventures Corp.Suite 200 - 1008 Homer StreetVancouver, B.C. V6B 2X1 CanadaPhone: +1 604 221 8936Email: nasim@vaticventures.comwww.vaticventures.comShares Issued & Outstanding: ~17,140,000

Canadian Symbol (TSX.V): VCV.HCurrent Price: $0.12 CAD (July 15, 2016)Market Capitalization: $2 million CAD

German Symbol / WKN: V8V1 / A2AFZ3 Current Price: €0.004 EUR (July 10, 2016)Market Capitalization: €0.01 million EUR

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Thick beds of rock salt have been found in the Sakon Nakhon and Khorat basins in northeastern Thailand. These deposits occur in the Cretaceous Maha Sarakam Formation. Substantial reserves of potash and salt in these deposits resulted in the establishment of potash projects. The Thai Government has invited the Asian member countries and local enterprises to explore and exploit this resource. (Source)

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atic Ventures Corp. intends to explore and develop a potash project in Thailand’s Khorat

Basin, which hosts the world’s largest (known) undeveloped high-grade pot-ash resources. According to a global as-sessment of potash resources by USGA:

“Global scarcity is not the issue with potash – transportation costs are.”

Potash is an essential plant nutrient, one of the 3 required fertilizers for crops such as rice, wheat and palm oil. Potash is produced from potassium-bearing ores, such as sylvinite and carnallite, by conventional underground mining, solu-tion mining or evaporation from brine lakes. The present annual world produc-tion of potash is about 60 million tonnes KCl, with an annual growth rate of about 2.4%. The major producing countries in-clude Canada, Russia, Belarus, and Ger-many, which combine for 80% of world production. The industry’s 5 top produ-cing companies account for 80% of world production. Excluding the limited pro-duction from China’s Qinghai salt lake, the only known potash resources in Asia are located in Thailand’s Khorat Basin.

Growing Asian Potash Demand

• The majority of the growth in potash demand is expected to occur in develop-ing countries, with demand in developed countries remaining relatively flat.

• Asia currently consumes over 40% of global potash production and the South-east Asia region is expected to see the highest growth rate in potash demand.

• The target markets of Thailand, Indonesia, Malaysia and Vietnam currently consume over 5 million t KCl per year, growing at an estimated rate of about 6 % per year.

• Indonesia and Malaysia are the world’s largest producers of palm oil, while Thailand and Vietnam are among the world’s leading producers of rice.

• The production of rice and palm oil account for some 70% of potash usage in the region.

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Strategic Location

• Thailand is strategically located relative to the growing potash markets of Southeast Asia, where the major use of potash is for rice and palm oil cultivation.

• Vatic’s potential marketing strategy may focus on meeting the increasing demand of the ASEAN counties of Thai-land, Indonesia, Malaysia and Vietnam.

• These 4 countries consume about 75% of Asian potash imports (excluding China and India) and have a current demand of over 4 million t KCl per year, rising at an estimated 5% annually.

• Proximity to target markets, combined with convenient and flexible transporta-tion options, provide major transporta-tion cost advantages (up to $60/t) over Canadian and European suppliers.

Potash in Thailand

• Thailand’s Khorat Basin represents the world’s largest undeveloped potash deposit, hosting extensive high-grade potash resources.

• The shallow depth to the potash deposits, up to 350 m, results in lower capital and operating costs than most proposed developments.

• Thailand’s proximity to key potash markets results in significantly lower transportation costs to regional markets.

• Thailand enjoys excellent regional infra-structure, including electrical power and transportation, and thus the country enjoys a strategic location with access to key regional markets. (More information)

• In 2014, the Ministry of Industry set up a special steering committee to promote the development of the country’s potash resources. (More information)

The Khorat Evaporite Basin

• The Khorat evaporite basin hosts the world’s largest known, undeveloped potash deposit, containing billions of t of sylvinite and carnallite.

• Located in northeast Thailand and extending into Laos, the basin covers an area of 130,000 km2, at an elevation of approximately 200 m above sea level.

• The potash deposits are, generally, gently dipping and occur at shallow depth (150 to 350 m), providing substantial savings in potential project capital costs.

• High-grade sylvinite and carnallite ores are present and overburden con-sists of claystone and evaporite beds.

• A number of mainly carnallite-based projects are currently under development in the Khorat Basin, including 3 in Thailand. The Saksrithai Project is contiguous with one of the Thai developments.

Potash Exploration & Development Projects in Thailand

1. Bamnet Narong Project(ASEAN Potash Mining Co.)

• Planned annual production: 1.1 million t• Estimated potash grade: 18% KCl• EIA-approved, mining licences granted.

2. Udon Thani Project(Italian Thai Development Co.)

• Planned annual production: 2 million t• Estimated potash grade: 40% KCl• EIA and mining licences under application. (More information)

3. Dan Khun Thot Project(Thai Kali Co.)

• Planned annual production: 0.5 million t • Estimated potash grade: 21% KCl• EIA approved, mining licences pending.

4. Saksrithai Project(potentially Vatic Ventures Corp.)

• Exploration stage project• Exclusive exploration licences granted (32 km2)• Planned start of activities in mid-2016 (after a potential acquisition)

The Saksrithai Potash Project

• The Saksrithai licence area comprises 32 km2 in the Nakhon Ratchasima Province, northeast Thailand, approximately 270 km from Bangkok.

• In early 2015, 2 exclusive exploration licences were issued to Saksrithai De-

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velopments Co. Ltd. The licences have an initial term of 5 years, but such licences may not be transferred to a third party.

• Vatic intends to acquire an 80% interest in Saksrithai Developments Co. Ltd., thereby obtaining full security of tenure over the licences and control of the project development.

• The licence area is adjacent to the Dan Khun Thot Project, presently under development by Thai Kali Ltd. Both carnallite (up to 60 m thick) and sylvinite (up to 5 m thick) present in drill holes.

Vatic’s Potential Exploration

• An initial resource evaluation phase may commence in mid-2016 (among others subject to a successful acqui-sition) comprising of a seismic survey, geological survey and interpretation, initial diamond-drilling program (~10 holes), baseline environmental studies and local community programs.

• A potential phase-1 budget is estimated at $1.5 million over 12 months, aimed at quantifying a potash resource, poten-tially leading to a pre-feasibility study.

• Phase-2 may include additional drilling programs, mining and processing, trans-portation and marketing studies, pot-entially leading to a bankable feasibility study and defined potash reserves.

• Access to regional geological data and drilling results from an adjacent project may enable an accelerated exploration schedule and lead to reduced costs.

The Dan Khun Thot Project

• The Dan Khun Thot Project from Thai Kali Ltd. is located adjacent to, and contiguous with Saksrithai’s licence area which Vatic intends to acquire.

• The initial production level is planned to be 500,000 t KCl per year.

• The initial mineable reserve is esti-mated to be 103.4 million t at an average potash grade of 21.5% KCl (13.13% K2O) using a cut-off grade of 16% KCl.

• Both sylvinite (up to 5 m thick) and carnallite (up to 60 m thick) are present in the drill holes.

• The maximum potash grade encoun-tered was 35.2% KCl (21.5% K2O).

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According to the company’s press-re-lease “Vatic Ventures to acquire 80% of Thai potash company” (June 7, 2016):

“Vatic Ventures Corp. has entered into an assignment and purchase agreement to acquire 80 per cent of the issued and out-standing shares of Saksrithai Development Co. Ltd., a Thailand company which holds two special prospecting licences (SPLs) for the exploration of potash.

The two licences, which are contiguous, are located in the northern Thailand prov-ince of Nakkon Ratchasinna and comprise an area of approximately 32 square kilo-metres. The property is located in the west-ern part of the Khorat basin in the Khorat plateau which contains a large evaporate basin of Cretaceous age.

Pursuant to the agreement, the company is acquiring the rights of Red Branch In-vestments Ltd., a Hong Kong incorporated company, to acquire the shares pursuant to a memorandum of understanding en-tered into among the holders of the shares of Saksrithai, Saksrithai and Red Branch dated Feb. 26, 2016, which is in the process of being superseded by a share purchase agreement. In accordance with the terms of the underlying acquisition agreement, as assigned to the company, the company has the right to purchase the shares by paying the Saksrithai shareholders eight million baht (approximately $220,000 (U.S.)). The underlying acquisition agree-ment also provides that, subsequent to Red Branch or its assigns purchasing the shares, Red Branch or its assigns will fi-nance a 50-million-baht (approximately $1.4-million (U.S.)) firststage exploration and development program, which will in-clude sufficient financing to satisfy work and expenditure commitments under the SPLs, to pay the Thailand project expens-es, and for general and administrative expenses in Thailand and Canada. In the event that the full amount of 50 million baht is not expended, the Saksrithai share-holders will be entitled to a cash payment of 20 per cent of the unspent balance. As consideration for the agreement, the com-pany will issue 5.2 million common shares to Red Branch plus a 1-per-cent net smelt-er return royalty on the property. The NSR can be purchased by the company at any time for $1-million (U.S.).

Upon closing of the transaction, Dr. Gerry Wright, the principal of Red Branch, will be joining the board of directors of the com-pany. Dr. Wright is a professional engineer and holds a doctorate in engineering from Queen’s University, Belfast. He has over 30 years of experience in the minerals ex-ploration and development industry in Asia, North America, Europe and Africa, serving as a senior officer and director of a number of public and private companies. He has extensive experience and know-ledge of the potash resources underlying Thailand’s Khorat plateau and the regional potash industry. As chief executive officer of Asia Pacific Resources Ltd., he was dir-ectly responsible for acquisition, financing

and development of Asia’s most significant potash discovery.

The company also announces a unit pri-vate placement financing of up to $1-mil-lion consisting of up to 10 million units, with each unit comprising one common share and one share purchase warrant exercisable for two years at a price of 15 cents. Up to $100,000 of the financing will be distributed pursuant to B.C. Instrument 45-536 and used for the proposed acquisi-tion, with the remainder to be distributed under other exemptions and used for the proposed acquisition and working capital purposes. There is no material fact that has not been generally disclosed.”

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Disclaimer and Information on Forward Looking Statements:All statements in this report, other than state-ments of historical fact should be considered forward-looking statements. Much of this re-port is comprised of statements of projection. Statements in this report that are forward looking include that Vatic Ventures Corp. or any other company or market will perform as expected; that Vatic Ventures Corp. will com-plete the recently announced transaction; that Vatic Ventures Corp. or its partner(s) can and will start exploring or developing any kinds of projects; that the company can raise sufficient funds for a transaction, exploration and corporate matters; that any of the men-tioned plans, comparisons with other com-panies, regions or numbers are valid or eco-nomic. Such statements involve known and unknown risks, uncertainties and other fac-tors that may cause actual results or events to differ materially from those anticipated in these forward-looking statements. Risks and uncertainties respecting lithium and resource companies are generally disclosed in the an-nual financial or other filing documents of Vatic Ventures Corp. and similar companies as filed with the relevant securities commis-sions, and should be reviewed by any read-er of this report. In addition, with respect to Vatic Ventures Corp., a number of risks relate to any statement of projection or forward statements, including among other risks: the receipt of all necessary approvals and per-mits; the ability to conclude a transaction to start exploration; uncertainty of current or future market and country regulations, capital expenditures and other costs; finan-cings and additional capital requirements for exploration, development, construc-tion, and operating of a facility; the receipt in a timely fashion of further permitting for its legislative, political, social or economic developments in the jurisdictions in which Vatic Ventures Corp. carríes, or intends, on business; operating or technical difficulties in connection with production or development activities; the ability to keep key employees, joint-venture partner(s), and operations fi-nanced. There can be no assurance that such statements will prove to be accurate, as ac-tual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking in-formation. Rockstone and the author of this report do not undertake any obligation to update any statements made in this report.

Disclosure of Interest and Advisory Cautions: Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned. Rockstone, its owners and the author of this report are not registered broker-dealers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely on what you read in an online or printed report, including Rockstone’s report, especially if the investment involves a small, thinly-traded company that isn’t well known. The author of this report is paid by Zimtu Capital Corp., a TSX Venture Exchange listed investment company. Part of the author’s responsibilities at Zimtu is to research and report on companies in which Zimtu has an investment. So while the author of this report is not paid directly by Vatic Ventures Corp., the author’s employer Zimtu will benefit from appreciation of Vatic Ventures Corp.’s stock price. The author does NOT own equity or any other interests in Vatic Ventures Corp.However, the author owns shares of Zimtu Capital Corp., and thus would also benefit from volume and price appreciation of its stocks. Hence, multiple conflicts of interests exist. Therefore, the information provided herewithin should not be construed as a financial analysis or recommendation but as advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. Rockstone and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. Vatic Ventures Corp. may not have reviewed all of the content of this report prior to publication. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into effect. Please read the entire Disclaimer carefully. If you do not agree to all of the Disclaimer, do not access this website or any of its pages including this report in form of a PDF. By using this website and/or report, and whether or not you actually read the Disclaimer, you are deemed to have accepted it. Information provided is educational and general in nature.

Analyst Profile and Contact

Stephan Bogner (Dipl. Kfm. FH)Mining Analyst Rockstone Research 8050 Zurich, Switzerland+41-44-5862323sb@rockstone-research.com

Stephan Bogner studied at the International School of Management (Dortmund, Germany), the European Business School (London)

and the University of Queensland (Brisbane, Australia). Under supervision of Prof. Dr. Hans J. Bocker, Stephan completed his diploma thesis (“Gold In A Macroeconomic Context With Special Consideration Of The Price Formation Process”) in 2002. A year later, he marketed and translated into German Ferdinand Lips‘ bestseller („Gold Wars“). After working in Dubai for 5 years, he now lives in Switzerland and is the CEO of Elementum International AG specialized in duty-free storage of gold and silver bullion in a high-security vaulting facility within the St. Gotthard Mountain Massif in central Switzerland.

Rockstone is a research house specialized in the analysis and valuation of capital markets and publicly listed companies. The focus is set on exploration, development, and production of resource deposits. Through the publication of general geological basic knowledge, the individual research reports receive a background in order for the reader to be inspired to conduct further due diligence. All research from our house is being made accessible to private and institutional investors free of charge, whereas it is always to be construed as non-binding educational research and is addressed solely to a readership that is knowledgeable about the risks, experienced with stock markets, and acting on one’s own responsibility.

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Research #1 | Vatic Ventures Corp.