passport potash corporate presentation

www.PassportPotash.com | PPRTF:OTCQX - PPI:TSX.V September 2012

1

www.PassportPotash.com | PPRTF:OTCQX - PPI:TSX.V

Forward-Looking Statements and Forward-Looking Information

All statements, other than statements of historical fact, contained in this presentation constitute “forward-looking statements” within the meaning of the United States Private

Securities Litigation Reform Act of 1995, and “forward-looking information” under similar Canadian legislation and are based on the reasonable expectations, estimates and

projections of the Company as of the date of this presentation. Forward-looking statements and forward-looking information include, without limitation, possible events,

trends and opportunities and statements with respect to possible events, trends and opportunities, including with respect to, among other things, the growth of the phosphate

market, global market trends, expected industry demands, the Company’s business strategy and investment criteria, the nature of potential business acquisitions, costs and

timing of business acquisitions, capital expenditures, successful development of potential acquisitions, currency fluctuations, government regulation and environmental

regulation. Generally, forward-looking statements and forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or

“does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words

and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements and

forward-looking information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the company as of the date of such

statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions contained in this

presentation, which may prove to be incorrect, include, but are not limited to, the various assumptions of the company set forth herein. Known and unknown factors could

cause actual results to differ materially from those projected in the forward-looking statements and forward-looking information. Such factors include, but are not limited to

fluctuations in the supply and demand for potash, changes in competitive pressures, including pricing pressures, timing and amount of capital expenditures, changes in capital

markets and corresponding effects on the company’s investments, changes in currency and exchange rates, unexpected geological or environmental conditions, changes in

and the effects of, government legislation, taxation, controls and regulations and political or economic developments in jurisdictions in which the Company carries on its

business or expects to do business, success in retaining or recruiting officers and directors for the future success of the Company’s business, officers and directors allocating

their time to other ventures; success in obtaining any required additional financing to make target acquisition or develop an acquired business; employee relations, and risks

associated with obtaining any necessary licenses or permits. Many of these uncertainties and contingencies can affect the company’s actual results and could cause actual

results to differ materially from those expressed or implied in any forward-looking statements and forward-looking information made by, or on behalf of, the Company. There

can be no assurance that forward-looking statements and forward-looking information will prove to be accurate, as actual results and future events could differ materially

from those anticipated in such statements. All of the forward-looking statements and forward-looking information made in this presentation are qualified by these cautionary

statements. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in

forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no

assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly,

readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking

statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws.

This presentation includes estimates of potash potential in the Holbrook basin of east-central Arizona. These estimates are not mineral resources or mineral reserves as

defined by NI43-101. These estimates were based on a historical survey completed by the Arizona Geological Survey. The potential quantity and grade or the potash is

conceptual in nature, and is based on analysis of drill data and assays from Arkla and Duval completed in the 1960’s and 1970’s. There has been insufficient exploration to

define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

Timelines used in this presentation are for the purpose of aiding management in the planning and implementation of the project, and are not based on a detailed assessment of

project requirements. Consequently the timelines are subject to material revision based on when technical reports and/or feasibility studies, if any, are completed. Future

phases of the project are contingent upon completion of preceding phases.

Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.

Disclaimer

2


Functions of Potash

• Potassium increases the physical condition of crops, boosting strength and quality. It

helps regulate plant absorption of water and raises resistance to infections and parasites.

It plays a key role in enhancing plant quality.

• Potash also has many industrial applications and is used extensively in metallurgy,

drilling fluids for the oil and gas industry, building materials, as well as numerous end

uses in the production of paper, pharmaceuticals and detergents.

Potash

Potash - Outlook

• The potash market is projected to grow to

63 million tonnes in 2015 and 75 million

tonnes in 2020.

• The global population is expected to grow

by approximately 300-400 million every

five years.

• Income growth in developing countries tends to stimulate a change toward more varied

and meat-based, more crop intensive diets.

• In order to produce more food, crop production must intensify and yields must increase.

Arable land area is flat in absolute terms and falling per capita, opportunities to boost

crop production by increasing arable area are limited.

3


Total US production ~ 1 million tons per annum

Total US consumption ~ 10 million tons per annum

Global Market

To Asia

(China, India, Vietnam))

To South America

(Brazil)

Interstate 40

(Route 66)

BNSF Rail line

Holbrook 10.4

1.5

South America

2.1

China, India

17.9

Demand

Supply

4

www.PassportPotash.com | PPRTF:OTCQX - PPI:TSX.V 5

Global Market

Global demand growth projections to 2020 are forecast to increase at 3.5% per year from 2010. On this basis, the

potash market will grow to 63 million tonnes in 2015 and 75 million tonnes in 2020.

China became the largest potash consumer in the early 2000s, when it overtook the USA. One of the key drivers

of long-term potash demand growth in China has been the increase in the production of fruit and vegetables and

other higher-value crops. The increase in disposable income has also stimulated a greater diversification of diets

in the country. China’s consumption is expected to grow from 9.1 million tonnes in 2010 to around 15.0 million

tonnes by 2020, an increase of 5.8 million tonnes. Potash usage is expected to grow in other staple crops, beside

fruits and vegetables.

Brazil has two key consuming crops, sugar cane and soybean, which account for around half of its potash

demand. Both crops have experienced significant growth in the last decade based on intensification and

expansion of land use. The Brazilian potash consumption is forecast to reach 12 million tonnes by 2020 from 7.4

million tonnes in 2010.

India’s imports totalled 6.2 million tonnes in 2010. With no domestic production of potash, India remains a key

import market and is supplied by a variety of sources. Fruit, vegetables, and rice are the key potash consuming

crops in India, together accounting for approximately half of consumption. Indian demand is forecast to reach

10.5 million tonnes by 2020.

Indonesia and Malaysia are the largest producers of oil palm, which requires high application rates of potash.

Demand is expected to grow as application rates rise and crop area for oil palm and other crops increases.

Indonesian potash demand is projected to grow from 2.2 million tonnes in 2010 to 3.6 million tonnes in 2020.


• INTERNATIONAL SHIPPING – The California ports are some of the world’s largest seaports and are located 550 miles to the west of the project. California serves as the leading gateway for trade between the United States and Asia.

• POWER – Arizona Public Service (APS) operates the 995MW Cholla Power Plant located 25 miles West of the project.

• ACCESS – BNSF railway, of which Passport has 3.5 to 4 miles on property, Interstate 40 and Highway 180 all intersect the project and provide immediate east-west access to CA and NM.

• DEPTH – Deposit is between 800 and 1400 ft. deep. Considered very shallow by industry standards. Translates into lower capital costs as well as production costs.

Holbrook Basin

6


Basin Holdings

7


Resource Area (km2) Horizon Thickness

(Metres) Average KCl

Grade (%)

Mineralized Mass

(*MMT)

KCl Mass

(*MMT)

Measured Resource 4.42 3.26 14.50 25.43 3.69

Indicated Resources 45.16 3.18 14.93 252.97 37.79

Inferred Resources 132.97 3.02 12.96 673.84 87.29

This updated resource estimate consists of 25.43 million tonnes of measured mineralized

material with an average KCl grade of 14.5% (equivalent to a Measured Resource of 3.69

million tonnes of KCl), 252.87 million tonnes of indicated mineralized material with an

average KCl grade of 14.93% (equivalent to an Indicated Resource of 37.79 million tonnes of

KCl), and 673.84 million tonnes of inferred mineralized material with an average KCl grade

of 12.96% (equivalent to an Inferred Resource of 87.29 million tonnes of KCl).

It is important to note that at present the estimated resources cover only about 37% of the

Company’s holdings.

NI 43-101 Resource

8


1st Q 2012

NI 43-101 Resource Estimate

2nd Q 2012 Fitzgerald

Ranch Purchase

Agreement

3rd Q 2012 Phase 2

exploration 20 holes

3rd Q 2012 Updated resource

calculation

1st Q 2013 Preliminary Economic

Assessment

2013 Feasibility

Study

PPI Milestones

9


*The timeline represented here is for the purpose of aiding management in planning and implementation of the Holbrook project, and is not based on a detailed assessment of project

requirements. Consequently this timeline is subject to material revision based on when technical reports and feasibility studies, if any, are completed.

Holbrook

Project

2011 2012 2013 2014 2015 2016

RESOURCE INVESTIGATION

30 Hole Drill Program &

100 Miles of 2D Seismic

Initial NI 43-101 including 30

holes

Current 20 Hole Drill Program

NI 43-101 Updated Resource

Report Including 50 Holes

ENVIRONMENTAL PERMITTING

Baseline Data Collection

Applications Submitted

Permitting and Licensing

ENGINEERING STUDIES

Preliminary Economic

Assessment

Feasibility

Mine/Plant Construction

Begin Production

2016 (estimated)

Completed

Completed

Extended Timeline

10


Joshua Bleak, President and CEO/Director - Mr. Bleak is a fourth‐generation miner from an Arizona mining family

that has developed gold, silver, copper and uranium properties throughout the southwestern United States. He was previously

President of American Energy Fields, Inc., a U.S. publicly‐traded uranium company. Currently he serves as a director for a

number of Canadian junior mining exploration companies and is President of North American Environmental Corp., a

consulting company specializing in mining project management, permitting, lobbying and land tenure.

John Eckersley, Vice President/Director - Mr. Eckersley has been with Passport Potash for two years. He is an

attorney focusing on the areas of corporate and securities law. He served as corporate counsel for HNFC, a boutique

consulting firm specializing in corporate strategies, corporate mergers, acquisitions, capital and credit placement

accommodations, and in various regulatory compliance filings and registrations. He received his Bachelor of Science, cum

laude, and his Juris Doctorate from the University of Utah.

David J. Salisbury, Chairman of the Board of Directors/Director – Mr. Salisbury has had an extensive career in

the mining industry spanning four decades. Seventeen of those years were working for Rio Tinto. While with Rio Tinto, he

served as CEO and President of Resolution Copper Mining as well as President and CEO of Kennecott Minerals Company.

Mr. Salisbury was the leader for the Rio Tinto global improvement program, Improving Performance Together.

Prior to joining Rio Tinto, Mr. Salisbury served as the President of Cordero Mining Company / Sun Coal Company and was

responsible for the operation of the Cordero Mine. He also Served as President and COO of the Al Hamilton Operation

Company / Bradford Coal Company.

Laara Shaffer, CFO/Director – Ms. Shaffer has been a director of Passport Potash from 1996 to current. She is

currently a director of Nordic Gold Corp. and previously served as CFO and director of Compass Gold Corp. from 2007 to

2009.

Management/Directors

11


Ali Rahimtula, Director - Mr. Rahimtula is the president and founder of Transnational Enterprises, Ltd., DBA Transfert

America. Transnational is a member of the Rahimtula Group, an organization that was a pioneer in the fertilizer business in

India and which has been an Indian domestic industry leader since the 1960s.

Dennis Ickes, Director – Mr. Ickes is an advisor to PPI on Native American issues and was instrumental in helping to

obtain an access agreement with the Hopi tribe on its private lands. He served as Under‐Secretary of the Interior in two

Presidential cabinets. He also founded the Office of Indian Rights in the United States Department of Justice and served as its

Director.

Matthew Salmon, Director - Mr. Salmon served as an Arizona State Senator from 1991 to 1995. While in the Senate,

he served as the Assistant Majority Leader and chaired the Rules Committee. From 1995 to 2001 Mr. Salmon represented

Arizona in the United States House of Representatives, where he served on the International Relations, Education, Small

Business, and Science Committees. He also served for six years on the Helsinki Commission and the Organization for

Security and Cooperation in Europe (OSCE) organizations. While in Congress, he led several U.S. Congressional delegations

to China to improve trade relations and bilateral relationships. He is the only Member of the U.S. Congress in America's

history who speaks Mandarin Chinese.

Jerry Aiken, Director- Mr. Aiken has more than 41 years of experience in mineral exploration involving base metals,

precious metals, and industrial minerals with the most recent emphasis on Borates, Potash and Lithium. He has been

involved in project generation, geologic mapping, geochemical evaluation, drill program supervision, and regional program

management throughout the western United States, Canada, Mexico, South America and parts of Europe. Mr. Aiken worked

29 years for US Borax (Rio Tinto Exploration) in Tucson, Arizona and Valencia, California. Mr. Aiken graduated in 1966

with a Bachelor of Science degree in Geology from Western Michigan University. He is a Registered Professional Geologist

in the State of Washington, and is a Qualified Person (QP) pursuant to National Instrument 43-101.

Management/Directors

12


James Hasbrouck, Geophysicist/Advisory Board - Mr. Hasbrouck has over 30 years of experience in all aspects of

exploration geophysics including field operations; data reduction, processing, display, interpretation; and research and

development. Mr. Hasbrouck also has extensive knowledge and experience in all major surface, airborne, and borehole

geophysical methods including refraction and reflection seismics; electromagnetics; electrical resistivity and induced

polarization; gravity; magnetics; ground penetrating radar; and radiometrics.

ERCOSPLAN - Independent multinational consulting firm. Provides focused advice and services in all areas of industrial

potash and mineral salt. From exploration, feasibility, mine planning, production, to mine closure. More than half a century of

experience in planning and execution of projects in the potash and mineral salt industry. ERCOSPLAN utilizes 125 well

educated, highly motivated employees, well versed in their area of expertise. ERCOSPLAN has references in almost any

potash or salt producing country worldwide.

R. Timothy Henneberry, QP/ Professional Geologist/Advisory Board/Professional Geoscientist- More

than 28 years of experience in both exploration and production. President and CEO of Appleton Exploration Inc. Mr.

Henneberry served as the Chief Executive Officer and President of Indigo Exploration Inc. Mr. Henneberry has an extensive

experience as a project and consultant geologist, working on precious and base metals, and industrial minerals projects. He is

registered as a Professional Geologist in British Columbia. Mr. Henneberry received his Bachelor of Science in Geology

from Dalhousie University in Halifax, Nova Scotia in 1980.

Matt Monte, Geologist/Project Supervisor -Mr. Monte is a graduate of Arizona State University and Bradley

University with degrees in Geology (B.S.) and Management and Administration(B.S.). He was the 2010 Arizona

Hydrological Society Herman Bower Intern Scholarship Recipient and has practical field experience in base metals and

industrial minerals.

Technical Team

13


• Symbols: PPI (TSX.V) PPRTF (OTCQX)

• Shares Issued: 172.8 M

• Market Cap: $34 M (approx.)

• Average Daily Volume: 179 K (3 months)

• Cash: $3 M (aprox.)*

*As of 8/31/12

Economics

14


Potash Juniors Location Depth of

Deposit

Market

Cap

Development

Stage Completed

Capex/Tonne

Production

Passport

Potash

USA

243m-450m

$30 M

43-101

N/A

Allana

Potash

Ethiopia

100m-300m

$137 M

PEA

$796

Western

Potash

Canada

1000m-1500m

$103 M

Pre Feasibility

$1178

Prospect

Global

USA

243m-609m

$143 M

PEA

$667

Verde

Potash

Brazil

85m

$145 M

PEA

$786

Karnalyte

Canada

1000m-1500m

$185 M

Feasibility

$1048

Peer Comparisons

15


Shallow potash

deposit from 800’ to 1400’

Resource in excess of 278 MMT

combined measured and indicated KCL

BNSF rail line borders project

Mining friendly

jurisdiction

Climate allows for year round

mining

Holbrook Basin Project

• POTENTIAL – The NI 43-101 compliant

mineral resource estimate by ERCOSPLAN,

outlines an includes measured and indicated

totaling 278.3 million tonnes of mineralized

mass with an average grade of 14.89%

(equivalent to a Resource of 41.48 million

tonnes of KCl).

• Measured resource shows 25.43 million

tonnes with an average KCl grade of 14.5%

(equivalent to a Measured Resource of 3.69

million tonnes of KCl).

• Indicated resource shows 252.87 million


(equivalent to an Indicated Resource of 37.79


• Inferred resource consists of 673.84 million


(equivalent to an Inferred Resource of 87.29


• HOLDINGS – Passport has significant holdings within the Holbrook Basin, with current holdings totaling more than 307 square kilometers/191 square miles and including 175 square kilometers/109 square miles of private land.

• EXPLORATION – Since 2009 50 new drill holes have been completed on Passport’s holdings.

• MINING – Passport is evaluating available mining options. The upcoming PEA will designate the mining style that will be used. Year-round mining is possible due to the favorable climate.

• JURISDICTION – Arizona is a mining friendly state and one of the top mining jurisdictions in the United States.

16

Operations Office

3346 W. Guadalupe Road

Apache Jct., AZ 85120

(480) 288-6530

www.PassportPotash.com

[email protected]

Corporate Office

608,1199 West. Pender St.

Vancouver, B.C. V6E 2R1


passport potash corporate presentation

Investor Relations

forwardlooking information

cautionary statements

statements of historical

companys actual results

estimates of potash

significant business

companys business strategy

future events