pan american fertilizer (cnsx: paf) corporate presentation

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Fertilizer for South America: P A i F tili C Calcium sulphate (CaSO4) - Agricultural Gypsum Pan American Fertilizer Corp 601 - 570 Granville Street, Vancouver, B.C . CANADA V6C 3P1

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Pan American Fertlizer (CNSX: PAF) - Producing Food for our Food - A Global Problem. Our product (Calcium Sulfate) acts as a Fertilizer that helps remediate soil so that crops can yield more Fruits, Vegetables and Grains. We are currently focused on serving the South American market and plan to increase our product extraction by acquiring strategic assets and partnerships so that we can expand to the global market within 5 years. More information can be found at www.PAFertilizer.com - Be sure to watch our videos and follow us on Facebook & Twitter. Your comments and thoughts are always welcome.

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Page 1: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

Fertilizer for South America:P A i F tili C

Calcium sulphate (CaSO4) -Agricultural Gypsum

Pan American Fertilizer Corp601 - 570 Granville Street, Vancouver, B.C . CANADA V6C 3P1

Page 2: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

DisclaimerDisclaimerThis presentation contains certain forward-looking statements that may involve a number of risks anduncertainties. Actual events or results could differ materially from Pan American Fertilizer Corporation’s(“PAF”) expectations and projections. The Canadian National Stock Exchange (“CNSX”) has neitherapproved nor disapproved the information contained in this presentation Except for statements ofapproved nor disapproved the information contained in this presentation. Except for statements ofhistorical fact relating to the Company, certain information contained herein constitutes "forward-lookingstatements". Forward-looking statements are frequently characterized by words such as "plan", "expect","project", "intend", "believe", "anticipate" and other similar words, or statements that certain events orconditions "may" or "will" occur. Such statements include, but are not limited to: (i) statements regardingPan American Fertilizer’s business development to become a major supplier of fertilizer and becomePan American Fertilizer s business development to become a major supplier of fertilizer and becomevertically integrated; (ii) discussions regarding the potential demand for Calcium sulphate; (iii) statementsthat Pan American Fertilizer is pursuing additional adjacent properties and is in negotiations to acquire afertilizer distribution division, partnering with another fertilizer distribution company and negotiating lettersof intent and off-take agreements; (iv) statements that Pan American Fertilizer has tentative purchaseorders with a local strategic partner; and (v) statements regarding the growth outlook of Pan AmericanFertilizer including the ability to secure additional assets and create a company that would be of interestfor acquisition by a major fertilizer company. Forward-looking statements are based on the opinions andestimates of management at the date the statements are made, and are subject to a variety of risks anduncertainties and other factors that could cause actual events or results to differ materially from thoseprojected in the forward-looking statements. These factors include the inherent risks involved in theexploration and development of mineral properties the uncertainties involved in interpreting drilling resultsexploration and development of mineral properties, the uncertainties involved in interpreting drilling resultsand other geological data, fluctuating metal or mineral prices, the possibility of project cost overruns orunanticipated costs and expenses, uncertainties relating to the availability and costs of financing neededin the future and other factors. Circumstances or management's estimates or opinions could change. Thereader is cautioned not to place undue reliance on forward-looking statements.

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Page 3: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

Pan American FertilizerPan American Fertilizer

PAF VISIONPAF VISIONPAF VISIONPAF VISION

Pan American is a Canadian company dedicated to providing fertilizer to a growing global PAF VISIONPAF VISION

To scale our vertically integrated operation, to become one of the major fertilizer

PAF VISIONPAF VISIONTo scale our vertically integrated operation, to become one of the major fertilizer

market. The company is focusedon both the extraction of a specific type of fertilizer called Calcium Sulphate (also referred t “A i lt l G ”) i suppliers in South

America.suppliers in South America.

to as “Agricultural Gypsum”) in Argentina.

To ensure long term development d i h h ld ’

Extraction Extraction &&DistributionDistributionExtraction Extraction &&DistributionDistribution

and increase shareholder’s value, Pan American plans to significantly expand its current operational objectives while expanding its asset base by expanding its asset base by acquiring additional Calcium Sulphate and other fertilizer related assets in South America.

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Page 4: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

Completed Milestones Completed Milestones Consistent Delivery of ResultsConsistent Delivery of Results

Date Milestone

Dec 2010 Acquire mining rights on property (1 406 hectares)Dec 2010 Acquire mining rights on property (1,406 hectares)

Jan 2011 Receive Mining Certificate to extract Calcium Sulphate from property

July 2011 Import 70% of equipment (money put up by Randy Wright, CEO) $1,400,000

Sept 2010 – $Sept 2010 May 2011 Privately raise friends and family capital $1,100,000

Sept 2011 Complete Environmental Impact Study

Sept 2011 –May 2012 First Sales of Calcium Sulphate to Mamasu Distributors – top quality producty

Jan 2012 Raise $1,500,000 privately with Jordan Capital, Canaccord, and Macquarie

May 2012 Complete go public (RTO) financing by raising $1,900,000 and commence trading

LOI t i l t C l i S l h t Di t ib t i A ti (M ) July 2012 LOI to acquire largest Calcium Sulphate Distributor in Argentina (Mamasu) & executes a 24 hour operational extraction cycle at Calcium Sulphate Operation

October 2012 LOI for international sales to Paraguay with Argo Industrial for up to 50,000 tonnes of Calcium Sulphate

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Page 5: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

Projected extractionProjected extraction“Agricultural Gypsum” in Argentina“Agricultural Gypsum” in Argentina

Year No of tonsYear No. of tons

2013 100,000 tons

2014 150,000 tons

2015 250,000 tons

Anticipated sale price for Agricultural Gypsum: $75-$150/tonCurrent equipment on site has an extraction capacity of 40 tons per hour

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Page 6: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

Argentina: Extraction ProcessArgentina: Extraction Process“Agricultural Gypsum” “Agricultural Gypsum” –– Turn KeyTurn Key

1. Open Pit Extraction 2. Simple Extraction Process 3. Materials into Crusher

Zero en ironmental impact as no chemical

4. Finished product in piles 5. Bagged and Shipped 6. Sold & applied to crops

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Zero environmental impact as no chemical process involved. 100% Natural.

Page 7: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

Argentina Argentina –– Extraction, Distribution & SalesExtraction, Distribution & Sales

Estela Cecilia

Fertilizer: Calcium Sulphate (“Agricultural Gypsum”)

Property consists of 1,406 hectares in the province of Santiago del Estero, two hours North of Buenos Aireshours North of Buenos Aires

Next to the well known “Nucleus Agriculture Zones”

Santiago del Estero is a major soybean production region in Argentina with 2.8 million ghectares in production representing 21% of the total province surface area

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Page 8: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

The Product The Product –– Calcium sulphate (CaSO4)Calcium sulphate (CaSO4)

Used as a fertilizer, Calcium sulphate is a soft sulphate mineral composed of calcium sulphate dihydrate (CaSO •2H O) which is sulphate dihydrate (CaSO4•2H2O), which is extremely rich in sulphur and calcium

When dissolved in water, it becomes calcium ions (Ca2+) and sulphate-sulfur ions (SO42-). Both of these ions are required nutrients for plants

Calcium sulphate also plays a vital role in establishing and maintaining good chemical balance in soil, water and plants; specifically helps with healthy root development and e ps ea y oo de e op e a d ultimately increases the yield from crops

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Page 9: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

Calcium Sulphate Calcium Sulphate (CaSO(CaSO44) as fertilizer) as fertilizer

Used as a fertilizer, Calcium Sulphate is a soft sulphate mineral

“Agricultural Gypsum”“Agricultural Gypsum”Root penetration in SoilSulphate is a soft sulphate mineral

composed of calcium sulphate dihydrate (CaSO4•2H2O)

Without Calcium Sulphate With Calcium Sulphate

When dissolved in water, it becomes calcium ions (Ca2+) and sulphate-sulphur ions (SO42-). Both of these ions are required nutrients ffor plants

Calcium Sulphate plays a vital role in establishing and maintaining Data Source:

ANDA (Brazilian National Fertilizer Association) Technical report No 4 (2000) Depth in in establishing and maintaining good chemical balance in soil, water and plants; specifically corrects soil damage and replenishes nutrients, ultimately

ANDA (Brazilian National Fertilizer Association). Technical report No.4 (2000). Depth in (cm).

Source: INTA (Instituto Nacional de Tecnologia Agropecuaria - National Agricultural Technology Institute) - www.inta.gob.ar

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ep e s es u e s, u a e y increasing the yield from crops

Page 10: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

New Fertilizer Model New Fertilizer Model NPK(S)NPK(S)Conventional model: Nitrogen + Phosphorus + Potassium (NPK)

The basic NPK model now requires Sulphur (S) to solve the lack of this basic element, so that soils keep on presenting the desired yields especially in soy producing soil.

The improved sustainable agricultural NPK(S) model:

Nitrogen + Phosphorus + Potassium + Sulphur = NPK(S)Nitrogen + Phosphorus + Potassium + Sulphur = NPK(S)

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Page 11: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

Key Investment HighlightsKey Investment Highlights Location– Guasayan, Santiago Del Estero, Argentina Property Size – 1,406 ha Extraction for profit – able to execute a full sales cycle Goal – Be a major Supplier of Calcium sulphate (CaSO4) to the

South American fertilizer market Term on Property – PAF has secured mining rights for 20 years

with the right to extend for another 20 years Asset Growth – Currently negotiating to acquire other

relevant propertiesrelevant properties Cash investment to date - over $4m

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Page 12: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

Information from NI 43Information from NI 43--101 101

Land Ownership details - The Estela-Cecilia calcium sulphate Property is owned by and registered to Mr Hector Eusebio Ibañez and is subject to a mining lease

Technical Report*Technical Report*and registered to Mr. Hector Eusebio Ibañez and is subject to a mining lease agreement between Mr. Ibañez and Pan American Fertilizer. The agreement calls for PAF to pay Mr. Ibañez a 13 percent net profit royalty (NPI), at a minimum of USD $6 per ton of calcium sulphate sold. The lease is valid for 20 years, starting December 21, 2010 with an option to renew for an additional 20 years

Historical work - limited amount of historical exploration work carried out by previous operators

Geology - Property contains at least two or more one meter thick calcium sulphatebeds with average analytical grades ranging from 90.5 to 98.2 percent calcium sulphate (CaSO4 2H2O) at least nineteen areas where calcium sulphate beds are sulphate (CaSO4 2H2O). at least nineteen areas where calcium sulphate beds are likely exposed at surface or covered by thin vegetation on the Property

Proposed Exploration program - total of 5 kilometers of road cut, 100 pits, approximately 200,000 cubic meters of earth removal ( 5 areas of 200 meters by 200 meters) and 250 test samples for calcium sulphate analysis. The program would last meters) and 250 test samples for calcium sulphate analysis. The program would last for a period of approximately 3 months at a cost of CDN $320,000

The goal of an exploration plan is to expose, sample and analyze new calcium sulphate outcrop along a pre-determined grid or along sample points with enough density to satisfy criteria for a NI 43-101 compliant resource estimate

12*Study titled: “ESTELA-CECILIA GYPSUM PROPERTY” completed on March 15, 2012 by Jim Cuttle, B.Sc., P.Geo. For Bastion Resources (Now Pan American Fertilizer) – available at www.sedar.com

Page 13: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

Exploration Priority Areas*Exploration Priority Areas*

13*Study titled: “ESTELA-CECILIA GYPSUM PROPERTY” completed on March 15, 2012 by Jim Cuttle, B.Sc., P.Geo. For Bastion Resources Ltd (Now Pan American Fertilizer Corp) – available at www.sedar.com

Page 14: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

Site PhotosSite PhotosBeforeBefore AfterAfter

Images from Estela Cecilia pre start-up Images from Estela Cecilia post start-up

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Page 15: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

Site Photos Site Photos –– During ExtractionDuring Extraction

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Picture Taken March 13th 2012 by Viral Network Inc

Page 16: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

Market Demand Market Demand Calcium Sulphate Calcium Sulphate The largest markets in South America include Brazil, Argentina, Paraguay, Uruguay and Bolivia

totaling 300 million ha of arable farmland

Standard application for soil remediation per ha is 8 10 t C l i S l h t

The location of the nucleus agricultural zones of each country are provided by the maps below

Standard application for fertilizer per ha is 1 - 2 tonnes Calcium Sulphate per year

8 – 10 tonnes Calcium Sulphate per year

Potential demand for Calcium Sulphate of over 600 million tonnes

BOLIVIA

16URUGUAY

Page 17: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

Market DemandMarket Demand The largest markets in South America include

Brazil, Argentina, Paraguay and Uruguay

The combined total arable farmland of these 4 countries is in excess of 300 million ha.

Standard application for fertilizer per ha is 1 - 2 tonnes Standard application for fertilizer per ha is 1 - 2 tonnes Calcium sulphate per year

Standard application for soil remediation per ha is 8 – 10 tonnes Calcium sulphate per year8 10 tonnes Calcium sulphate per year

Potential demand for Calcium sulphate of over 600 million tonnes per year

Argentina has banned deforestation for the purpose of agriculture. Argentina government has recently offered incentives to increase per hectare yield.

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Page 18: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

Global Soybean MarketGlobal Soybean Market Argentina and Brazil together account

for 46% of the global soybean productionp

Soybean Farming requires more Calcium sulphate as Soy plants absorb 3x more Sulfur from the soil when they grow than y gother crops

Focus on the mono-culture of soybean leads to significant demand for calcium gsulphate to replenish the sulphur content in farmlands

PAF’s calcium sulphate assets are located in northern Argentina, where there is strong local demand for calcium sulphate for soybean production

18Source: USDA

Page 19: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

Soybean price Soybean price –– 12month view12month view

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Page 20: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

Sales & Distribution Sales & Distribution Strong Local Strong Local PPartnersartners

MAMASUMAMASU www.mamasu.com.arwww.mamasu.com.ar

Pan American Fertilizer has an LOI in place with Mamasu to acquire their fertilizer distribution division. Mamasu is an Argentine fertilizer distribution and application company specializing in applying fertilizer mixes to Argentine soils. They also supply rentals of farm machinery as well as manufacture agricultural equipment. They have been in business since 1953. 2011 sales of approx 45,000 – 50,000 tons. Targeting 100,000-250,000 tons for 2013LOI information available here

“We at Mamasu view this proposed transaction as the foundation of a long term strategic partnership. We are very impressed with the progress Pan American has made in short span of time and a professional organization like PAF has a very bright future in Argentina. We look forward to a long mutually beneficial partnership and look forward to building on Mamasu’s fifty plus years of successful business history in Argentina." reported Sebastian Pivetta, President of Mamasu.

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Page 21: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

Board of Directors Board of Directors Randy Wright – ChairmanMr. Wright has over 30 years experience in Oil & Gas, Construction, PowerGeneration and Mining Industries. He has founded, owned and operatedGeneration and Mining Industries. He has founded, owned and operatedseveral companies throughout the course of his career. Prior to PanAmerican Fertilizer, he owned a company primarily focused on providingOil and Gas energy services which experienced growth in gross sales to$120 million.

Ben WendlandMr. Wendland comes from a background of construction and real estatedevelopment. Mr. Wendland combines work in the profit sector withleadership in the not-for-profit arena. Since developing a chain of businesscareer training institutions, and leading a software company, Mr.Wendland is now CEO of a marine transportation company in RichmondWendland is now CEO of a marine transportation company in Richmond,B.C., Hodder Tugboat Co. Ltd. Formerly chair of the Better Business Bureauof British Columbia. Mr. Wendland currently works with the ALS Society ofCanada, Millennium Relief and Development Canada, as well as anorphanage in Uganda caring for 2600, Watoto Childcare Ministries.

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Page 22: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

Board of Directors continued Board of Directors continued Ignacio J RandleMr. Randle is a partner at the law firm Estudio Randle in Buenos Aires, Argentina, advising domestic and foreign clients in international business transactions, advising domestic and foreign clients in international business transactions, transnational investment, and M&A’s with emphasis in energy and natural resources projects. He practiced as a foreign attorney in Houston, Washington and Chicago, and has served as a Board Member for Oroplata S.A. (Goldcorp.) June –Dec 2011. He currently serves as Alternative board of director member of Goldcorp Exploraciones de Argentina S A from January 2012; and serves as Goldcorp Exploraciones de Argentina S.A. – from January 2012; and serves as Trustee, Rocky Mountain Mineral Law Foundation – 2011 to Present.

Greg ReimerMr Reimer served 26 years in the BC Public Service prior to being appointed Mr. Reimer served 26 years in the BC Public Service prior to being appointed Executive Vice-President of BC Hydro's Transmission & Distribution business group in June 2010. Mr. Reimer has extensive operational experience and demonstrated strong leadership. He is responsible for overseeing significant capital infrastructure initiatives that involve the expansion, upgrading and g gmaintenance of the province's transmission and distribution systems. A Certified General Accountant by profession, Mr. Reimer held senior leadership positions in the public sector, including Deputy Minister of Provincial Revenue and, most recently, Deputy Minister of Energy, Mines and Petroleum Resources In this role he led the development of the 2007 BC Energy Plan

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Resources. In this role, he led the development of the 2007 BC Energy Plan and the 2010 Clean Energy Act.

Page 23: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

Management TeamManagement TeamRandy Wright Randy Wright President/Chief Executive OfficerPresident/Chief Executive OfficerMr. Wright has over 30 years experience in oil & gas, construction, power generation and mining industries, much of this experience being in South America. He has founded, owned and operated several companies throughout the course of his career. Prior to Pan American Fertilizer, he owned a company primarily focused on providing oil and gas energy services which experienced growth in gross sales to $120 million.

Herrick Herrick Lau, Lau, CFA CFA Chief Financial OfficerChief Financial OfficerMr. Lau is currently Managing Director of Baron Group Canada. Mr. Lau is an experienced investment banking professional who has conducted transactions in initial public offerings, reverse takeovers, mergers g p p g g& acquisitions, divestitures, and various advisory services. Mr Lau has over 15 years of experience in corporate finance and public company management and is knowledgeable in performing due diligence, financing structuring and corporate governance.

Sukhprit Sajan, CGA Sukhprit Sajan, CGA Vice President Vice President –– FinanceFinanceMr Sajan has several years experience working in rapidly growing companies and has conducted Mr. Sajan has several years experience working in rapidly growing companies, and has conducted business throughout North and Central America, the Caribbean, United Kingdom and Europe. Over the course of his career Sukhprit has been retained in a variety of roles, undertaking a broad range of fiduciary and financial responsibilities, including: cash management and treasury functions, implementation of financial systems and controls, enhancement of policies and procedures, financial and management reporting, and team development.

Sebastian Cattaneo Sebastian Cattaneo Country Manager ArgentinaCountry Manager ArgentinaMr. Cattaneo is an Argentine-Canadian with twelve years domestic and international oil & gas and mining experience. Sebastian has performed engineering consulting for several oil & gas and mining companies in North and South America. Prior to Buenos Aires, Sebastian was an environmental engineer based in Vancouver, bringing a unique understanding of business practices in both Canada and Argentina.

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Page 24: Pan American Fertilizer (CNSX: PAF) Corporate Presentation

Contact InformationContact Information

Canadian Head Office Argentinean HeadquartersPan American Fertilizer Corp.

601-570 Granville St. Vancouver, BC

Canada V6C 3P1

Pan American Fertilizer Corp. Argentina

Carlos Pellegrini 1135, 2°(C1009ABW) Buenos Aires,

Argentina

General InquiriesTel: +1-604-683-3996 Fax: +1-604-683-3998

Argentina

General InquiriesTel: +54-9-11-4063-0611 Tel: 011 15 4063 0611

F 54 11 5252 0706Fax: +54-11-5252-0706

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