Mr. Jed Richardson reports

GREAT QUEST SECURES OFF-TAKE FOR DIRECT APPLICATION PRODUCTION

Great Quest Fertilizer Ltd. has secured a binding commercial offtake agreement with Mali-based Societe Africaine Developpement Agricole SA (SADA Group) for most of the production from the company's planned Malian phosphate manufacturing facility. Under the terms of the agreement, SADA Group has agreed to purchase 95 per cent of the projected annual production of 35,000 tonnes of direct-application granulated phosphate, which will comprise 25,000 tonnes of high-grade 35 per cent P2O5 (phosphorus pentoxide) and 10,000 tonnes of medium-grade 27 per cent P2O5, targeting the Malian market. The terms of the agreement fix the sale prices of the direct-application phosphate based on the price of imported diammonium phosphate (DAP). Future prices are to be indexed to international rock phosphate concentrate prices and adjusted annually.

As part of the agreement, the planned Great Quest production facility will manufacture complex granules, blending direct-application phosphate with urea (nitrogen) and potash provided by the SADA Group of distributors. The Great Quest facility will be compensated for the complex granulation services on a per-tonne-of-blended-product basis. This will be an additional revenue stream above and beyond that derived from the concentration of direct-application phosphate.

Jed Richardson, president and chief executive officer, commented: "This is a dramatic step towards production in Mali and is the first of its kind in regard to direct-application products. Great Quest will work closely with the SADA Group to finance the production facility, and to manage the commercial and socio-political risks in Mali."

The complex granule is an ideal delivery method for fertilizer, with a strong market demand, having been demonstrated during discussions with leading agronomists, fertilizer purchasing agencies and farmers following the company's 2013 field test (see news release dated June 13, 2014). These products ensure an even distribution of nutrients, irrespective of the application method used in the fields. The solubility of the direct-application phosphate is increased by its inclusion in a complex granule. The association with SADA Group enables Great Quest to produce and sell these products at prices that will be very competitive within the region.

About SADA Group

The SADA Group is the combination of two of Mali's largest fertilizer distribution groups with a Mali-based investment bank, and was specifically formed to enable the distribution and delivery of Great Quest's product to the Malian market. The group boasts a proven sales network throughout Mali, financial strength, and international connections in the areas of fertilizer and finance.

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