Mr. Cristiano Veloso reports

VERDE STARTS PRE-FEASIBILITY STUDIES FOR EXPANDED PRODUCTION AND ANNOUNCES FIELD TRIALS RESULTS FOR TOBACCO

Verde Agritech PLC has begun a prefeasibility study (PFS) for the expansions to its Super Greensand production.

The expansion project will be implemented in multiple phases and will rely on mining and industrialization contractors, all of which will significantly reduce upfront capital costs. This scalable and modular approach is feasible thanks to the open-pit nature of Verde's mineral resources and simple production flowsheet, which only requires crushing and milling.

Verde has a National Instrument 43-101 measured and indicated mineral resource estimate of 1.47 billion tonnes at a grade of 9.2 per cent K2O (potassium oxide) that includes a measured mineral resource of 83 million tonnes with an average grade of 10.1 per cent K2O. Additionally, the inferred mineral resource estimate is 1.85 billion tonnes at a K2O grade of 8.6 per cent.

The PFS will analyze the production schedule as shown in the attached table.

  SUPER GREENSAND PRODUCTION TARGET
 
Year                           Tonnes   
        
2018                          300,000          
2019                          600,000          
2020                        1,800,000        
2021                        2,500,000        
2022                        3,000,000        
2023                       11,000,000       
2024                       18,000,000       
2025 onward                25,000,000

Verde and its consultants expect to complete the PFS in the last quarter of 2017.

"With Verde now in production and selling, we look forward to ramping up our production and establishing ourselves as a prominent player in Brazil's agricultural scene," said Cristiano Veloso, president and chief executive officer.

Tobacco results for Super Greensand versus sulphate of potash (SOP)

An independent field trial confirmed Super Greensand's efficiency on tobacco crops. Brazil is the world's second-largest tobacco producer and, since 1993, the world's largest exporter. In the 2016 harvest, about 380,000 hectares of tobacco were planted in Brazil; its production was estimated in $1.5-billion (U.S.).

The field trial was undertaken by a leading American tobacco corporation in two cities for five months. The objective was to evaluate the benefits of Super Greensand when compared with SOP, a traditionally used source of potash for tobacco. The results show that Super Greensand and SOP have statistically identical performance on tobacco. Super Greensand, however, has the added benefit that it needs to be applied only once per harvest rather than three times as with SOP. Conventional potassium fertilizers, contrary to Super Greensand, usually require such multiple applications because they are highly soluble in water and therefore tend to be washed away because of rains.

Tobacco producers choose potash sources free of chloride such as SOP or nitrate of potash instead of potassium chloride (KCl), which is 47 per cent chloride, because chloride can cause harmful effects on tobacco yield. Plus, tobacco leaves with chloride gradually acquire some undesirable burning characteristics and the storage life can be reduced, negatively impacting its market value.

Super Greensand has virtually no chloride and no salinity, ensuring that crops will not suffer from chloride toxicity. The product can be adopted by all niche markets that apply potash premium sources with further benefits such as eliminating the need for multiple applications per harvest.

Live presentation

Verde Agritech has a new investor's presentation available on its website.

Mr. Veloso will host a live meeting on Youtube to discuss this presentation. There will be a question-and-answer session at the end of the event. Send your questions via e-mail.

Date:  June 14, 2017

Time:  2 p.m. BRT/6 p.m. BST/1 p.m. ET

About Verde Agritech PLC

Verde Agritech promotes sustainable and profitable agriculture through the development of its Cerrado Verde project. Cerrado Verde, located in the heart of Brazil's largest agricultural market, is the source of a potassium-rich deposit from which the company intends to produce solutions for crop nutrition, crop protection, soil improvement and increased sustainability.

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