Mr. Mike Ferguson reports

GENSOURCE ANNOUNCES NOMINATION OF DIRECTORS TO ITS JOINT VENTURE COMPANY, VANGUARD POTASH CORPORATION

Gensource Potash Corp. and its joint venture partner, Essel Group ME (EGME), have appointed individuals to directorship positions in Vanguard Potash Corp.

The directors of Vanguard are:

• From EGME:
  • Gagan Goel, chairman, managing director, Essel Group ME;
  • Punkaj Gupta, joint managing director and group chief executive officer, Essel Group ME;
  • Manoj Kumar Palaria, assistant general manager, finance, Essel Group ME;
• From Gensource:
  • Dwayne Dahl, director, Gensource Potash;
  • Mike Ferguson, president, CEO and director, Gensource Potash.

Pursuant to the executed definitive shareholder agreement for Vanguard announced on April 4, 2017, the parties to the agreement (being Gensource and EGME) are entitled to appoint a total of five directors of Vanguard: two nominated by Gensource and three nominated by EGME.

Further, with the appointment of directors now complete, the agreement allows for the directors to complete the appointment of the management team and begin the detailed planning to complete the development, financing and construction of the Vanguard One project.

As a reminder, EGME and Gensource announced a memorandum of understanding to create a joint venture company on Nov. 29, 2016, and subsequently announced the execution of the definitive shareholder agreement on April 4, 2017.

The Vanguard joint venture company has been created to be the vehicle that will own, construct and operate the Vanguard One project, to be located on a portion of Gensource's KL 245 subsurface mineral lease. Pursuant to the agreement, the parties will use their best efforts to subsequently expand the Vanguard One project from its initial 250,000-tonne-per-year production to a target production rate of one million tonnes per year. Vanguard will be furnished with the lease, engineering and geology completed to the end of 2016, project development expertise and unique mining and processing technology by Gensource, while EGME will provide Vanguard with marketing for the potash produced, international logistics expertise and capital financing. On this basis, Vanguard has a clear path forward to implement a first-of-its-kind selective solution mining project that has major economic advantages and, most significantly, massively reduced environmental and community footprint as compared with conventional potash production.

As a reminder, Gensource is in the detailed development phase of the Vanguard One project. The feasibility study, expected to conclude in second quarter 2017, will determine the technical and economic viability of the project.

We seek Safe Harbor.