building the next saskatchewan potash giant

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INDUSTRIAL MINERALS & METAL RESOURCES INVESTMENT FORUM IRONMONGERS’ HALL, CITY OF LONDON TUESDAY, 6 NOV 2012 www.ObjectiveCapitalConferences.com Building the next Saskatchewan potash giant Alan Cruickshank – CEO, Gensource

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Objective Capital's Industrial Minerals & Metals Resources Investment Forum 2012 Ironmongers' Hall, City of London 6 November 2012 Speaker: Alan Cruickshank, Gensource

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  • 1.INDUSTRIAL MINERALS &METAL RESOURCESINVESTMENT FORUMAlan Cruickshank CEO, GensourceIRONMONGERS HALL, CITY OF LONDON TUESDAY, 6 NOV 2012www.ObjectiveCapitalConferences.com

2. Investing in Resource DevelopmentInvesting in Saskatchewan 3. DISCLAIMERThis presentation contains certain forward-looking statements relating, but not limited, to Gensourcesexpectations, intentions, plans and beliefs. Forward-looking information can often be identified by forward lookingwords such as anticipate, believe, expect, goal, plan, intent, estimate, may and will or similarwords suggesting future outcomes or other expectations, beliefs, plans, objectives, assumptions, intentions orstatements about future events or performance. Forward-looking information may include reserve and resourceestimates, estimates of future production, costs of capital projects and timing of commencement ofoperations, and is based on current expectations that involve a number of business risks and uncertainties. Factorsthat could cause actual results to differ materially from any forward-looking statement include, but are not limitedto, failure to establish estimated resources and reserves, the recovery of resources varying from estimates, capitaland operating costs varying significantly from estimates, delays in obtaining or failures to obtain requiredgovernmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations incommodity prices, delays in the development of projects and other factors. Forward-looking statements aresubject to risks, uncertainties and other factors that could cause actual results to differ materially from expectedresults.Shareholders and prospective investors should be aware that these statements are subject to known and unknownrisks, uncertainties and other factors that could cause actual results to differ materially from those suggested by theforward-looking statements. Shareholders are cautioned not to place undue reliance on forward-lookinginformation. By its nature, forward-looking information involves numerous assumptions, inherent risks anduncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projectionsand various future events will not occur. Gensource undertakes no obligation to update publicly or otherwise reviseany forward-looking information whether as a result of new information, future events or other such factors whichaffect this information, except as required by law.This caution is provided in accordance with the requirements of Parts 4A and 4B of National Instrument 51-102Continuous Disclosure Obligations, respecting disclosure of forward looking information. 14 4. Gensource Capital Corporation Shares outstanding 100 million Fully Diluted 127 million Directors/Management and closely held 30% Cash on hand - $3 million Market Capitalization - $7 million 5. Feed the plants that feed the worldA wholly owned subsidiary of Gensource Capital Corporation 6. Highlights Why Gensource Potash?1. Best Location - Saskatchewan is the world leader in Potash supply- massive deposits, low mining cost, stable Government2. Growing demand Major Potash consumers can acquire operations to hedge long term food production costs at less than 50% of wholesale3. Strategic Land Position select land package where next mine will be located4. World Class Experienced Production Team -Steve Halabura PGeo (Hons) Geological 30 years experience -Mike Ferguson PEng. Technical 30 years experience -Alan Cruickshank CEO/Financial - 25 years experience 7. Objective1. To acquire additional prospective potash ground where the next potash mine is expected to be put into production2. To partner with 1 or more Global companies that are capable of putting a potash mine into production3. To attract strategic investors who want exposure to potash project development in Saskatchewan 8. Business Model for Gensource Potash Acquire strategic land base Increase valuation with exploration and development Will receive land based mineral royalty on production Contract with large Global partner to develop propertyinto a turn key mineable project For Joint Venture Partner Most cost effective process to production 50 + year mine life in best global potash basin For Gensource Clear project development timeline Substantial Value add 9. SASKATCHEWAN WHERE?LOCATION Mid-continent Hot summers,cold winters Rail to Pacific 10. Wave 1(1947 1955) : Unity (1951) Patience Lake (1959) Esterhazy (1962)Wave 2(1959 1971) : Belle Plaine (1964) Allan (1968) Lanigan (1968) Cory (1968) Vanscoy (1969) Colonsay (1969) Rocanville (1970)Wave 3 (2005 20??) : 11. POTASH STRATIGRAPHY3 MAIN POTASH BEARING BEDSUPPERMOST BED IS THEPATIENCE LAKE MEMBER(Main mining zone inwest of Sask)MIDDLE BED IS BELLEPLAINE MEMBER (Notmined) Proven Leaders in FinancingLOWERMOST BED ISESTERHAZY MEMBER Geology(Main mining zone in Engineeringeast of Sask) BankingINTERVENING BEDS AREHALITE WITH CLAYS 12. MINING LIFETOTAL RESOURCE REMAINING:85 billion tonnesYEARS OF MINING @ 30MM TONNES PERYEAR2,830 Years 13. LAND POSITIONS - 2005Proven Leaders in Financing Geology Engineering Banking 14. LAND POSITIONS - 2011Proven Leaders in Financing Geology Engineering Banking 15. CONVENTIONAL POTASH MINING Long room and pillar or chevron mining methods Mined with automated continuous miners (~650t/h) Ore conveyed to load-out and hoisted up shafts for processing ROCK MECHANICS CRUCIAL as natural support is providedby ore in-place pillars (40% mined & 60% left in place) Thermal gradient at 1000m is ~27oC. In summary an UNDERGROUND CITY 16. SOLUTION POTASH MINING Mined by DISSOLVING ORE using heated brineoand in-situ temperature (>40 C in the cavern.) A solution of KCl and halite pumped to surface Cylindrical shape ~50m wideand ~40m tall Thermal Gradient at 1600mis ~42oC. In summary a HEAT andCHEMICAL ENGINE 17. YIELDEach square mile(mi2) = 5 to 7 MMt K2O(Slide courtesy ofPotash One Inc.) 18. FATAL FLAWS TO MINING Fatal Flaw 1: The nature of the potash deposit itself(grade, mineralogy, and deposition); Fatal Flaw 2: Post-depositional alteration (dissolution,recrystallization, and reworking); Fatal Flaw 3: Mining integrity (depth, temperature,rock mechanics, and hydrology); and Fatal Flaw 4: Technology (mining and processing). 19. Keys to a Successful Potash Development Market Access The potash market is dominated by few major players New players want access to long term secure supply Financial Resources Cost of mining operations substantial Long term high quality production profile Technical Know How Requires team with direct project experience Requires local knowledge of where to mine Requires financial resources 20. President/ CEO Gensource PotashProject Management Mine Engineer Mr. Michael Ferguson PEng. President/ CEO Gensource Potash [email protected] 21. Chairman Gensource PotashGeology and GeoTechnicalStephen Halabura P.Geo. F.E.C. (Hon.)Chairman GensourcePotash [email protected] Steve is a geologist and resource entrepreneur, since 1984. He began his potash career in 1989 by consulting to Saskatchewan producers in the field of mining operations and brine inflows. During this period Steve undertook some 80 separate evaluations and studies. In 2005 Steve undertook the initial geological work for Anglo Potash (now the BHP Billiton Jansen, Boulder, & Young projects). He was also co-founder of Invictus Minerals Corp. the private corporation that became the basis for Potash Ones (now K+S) Legacy solution mining project. Steve also has consulted to various other potash projects including Athabasca Burrr (now BHPB), Agriums Triton, Karnalytes Wynyard, and Alllanas (danakhil (Ethiopia). 22. President /CEO Gensource CapitalManagement and Finance Alan Cruickshank President and CEO Gensource Capital Corporation [email protected] Cruickshank has been in the investment capital business for more than 25 years as anInvestment Advisor, Branch Manager, and senior executive, with a national investment firm(s).During his career of building companies and agencies he has served as the President and CEO ofmany companies, usually early stage. He has been instrumental in providing leadership, vision andespecially financing. He was responsible for the structuring and all the private capital pre-IPO forAthabasca Potash Corp. In addition early 2006 he financed Anglo Potash Ltd. Both companies werevery successful as they purchased by BHP Billiton for a combined total of over $750 million andcreated well over $200 million new net worth for his clients many of which are from Saskatchewan.Since 1999, Alan has acted as agent for transactions topping $200 million, completing a number ofinitial public offerings. He has a number of industry designations and has been active in theindustry, not only serving on the Investment Dealers Association district council but as an inauguraldirector of the Investment Industry Association of Canada. 23. Board of Directors - GensourceCapital CorporationNorman Brewster Chairman- Has put mines into production- Former Chairman of Iberian MineralsConor Bill Director- President/CEO Artemis FundsMichael Newman - Director- Over 30 years experience in numerous public companiesStephen Halabura PGeoAlan Cruickshank President and CEO 24. ContactAlan CruickshankPresident and CEOGensource Capital CorporationSuite 1120 201 1st Ave S.Saskatoon, [email protected]