Mr. Jed Richardson reports

GREAT QUEST RECEIVES ENVIRONMENTAL PERMIT

The Malian Ministry of Environment, Sanitation and Sustainable Development has granted Great Quest Fertilizer Ltd. an environmental permit for the development of the Tilemsi phosphate deposit and the construction of the phase I production facility in the agricultural region of Dogofry, Segou, Mali.

Within Mali, environmental permits are granted after the preparation and review of project plans and the submission of an environmental and social impact study, prepared in accordance with Malian guidelines based on standards set by the World Bank. This is an important milestone for the company and removes a key hurdle in the project's development. The company will now apply for the exploitation permit as it advances toward the implementation of its phase I development plans for the production of granulated NPK fertilizer featuring Tilemsi direct application phosphate.

Phase I development

The phase I project comprises small-scale mining, beneficiation, NPK blending and the granulation of 40,000 tons of phosphate rock per annum for 12 years. The facility is strategically located in Dogofry, Segou state, 1,024 kilometres southwest of the Tilemsi mining property, thus placing the production in Mali's agricultural heartland distant from the political instability of northern Mali.

The phase I production is expected to generate an internal return of 30 per cent, with minimal capital expenditure (see press release "Great Quest files updated PEA for multiphase phosphate production," dated Feb. 5, 2015). This initial small-scale production in West Africa will allow the company to establish the product and to build familiarity with potential customers capable of signing long-term supply agreements for future production.

Commenting, Jed Richardson, president and chief executive officer, "We express our thanks to the ministry and the government of Mali for their diligence in granting this necessary approval."

The decision to commence production at the Tilemsi phosphate project is not based on a feasibility study of mineral reserves demonstrating economic and technical viability, but rather on a more preliminary estimate of inferred mineral resources. Accordingly, there is increased uncertainty and economic and technical risks of failure associated with this production decision. Production and economic variables may vary considerably, due to the absence of a complete and detailed site analysis according to and in accordance with NI 43-101.

We seek Safe Harbor.