Mr. Mike Ferguson reports

GENSOURCE POTASH APPLAUDS FEDERAL PRODUCTIVITY MEGA DEDUCTION ANNOUNCED IN TORONTO, HIGHLIGHTS TRANSFORMATIVE IMPACT FOR TUGASKE PROJECT

Gensource Potash Corp. today welcomes the Canadian federal government's announcement of the productivity megadeduction, a landmark tax measure that will fundamentally improve the economics of major capital projects in Canada, including the company's flagship Tugaske potash project.

Productivity megadeduction: a game-changer for Canadian mining

On Sept. 15, 2026, at the first Canada Investment Summit in Toronto, Prime Minister Mark Carney announced the productivity megadeduction, expanding and making permanent the previous productivity superdeduction originally introduced in the Canadian budget in early 2025. The new measure allows businesses to immediately deduct 100 per cent of the cost of eligible capital investments in the year the asset becomes available for use, rather than depreciating those costs over time under the traditional capital cost allowance system.

Critically for Gensource, the productivity megadeduction expands eligible assets from approximately 15 per cent to more than 65 per cent of capital investments and explicitly includes mining property among the newly covered asset classes. The government projects this will reduce Canada's marginal effective tax rate on new business investment from roughly 13 per cent to 6.4 per cent -- the lowest rate in the G7 and less than half the rate in the United States.

"The productivity megadeduction announced by Prime Minister Carney in Toronto is precisely the kind of bold, forward-looking policy that Canadian resource developers have needed," said Mike Ferguson, president and chief executive officer of Gensource. "By including mining property and making immediate expensing permanent, the federal government has sent an unmistakable signal that Canada is open for major project investment. For Gensource, this directly enhances the after-tax economics of the Tugaske project at the very moment we are finalizing our technical refresh and advancing project financing with our ASEAN partner."

Direct impact on the Tugaske project

The Tugaske potash project is currently undergoing a comprehensive technical refresh targeting a capacity of 500,000 tonnes per year of premium muriate of potash (MOP), double the original 250,000-tonne-per-year design. The project's capital cost estimate at the original scale was (see Natonion Instrument 43-101 dated November, 2021) approximately $352-million, with the technical refresh expected to update these figures for the expanded production case.

Under the productivity megadeduction, Gensource would be able to immediately expense eligible capital expenditures for mining property, process plant equipment, site infrastructure and related assets acquired on or after Sept. 15, 2026. This treatment would significantly accelerate the planned SPV's (special-purpose vehicle) ability to recover capital costs, improving project cash flows to senior lenders and shareholders during the critical early years of operation and enhancing overall project returns.

The Mining Association of Canada (MAC) welcomed the announcement, with president and chief executive officer Pierre Gratton stating: "Today's announcement by Prime Minister Carney is transformative. With these announced new measures, Canada will become one of, if not the most, competitive mining tax jurisdictions in the world."

Tugaske project highlights

The Tugaske project is distinguished by:

• A measured and indicated resource base of 360 million tonnes of finished MOP product, with the Tugaske project footprint representing only 10 per cent of Gensource's total mining lease area;
• Offtake agreements in place for the full planned production, with product destined for U.S. and Southeast Asian markets;
• A proprietary solution mining process that eliminates surface tailings and avoids the need for traditional brine or cooling ponds;
• Strong project economics, even at the original smaller scale, and cash operating costs per tonne in the bottom decile of the global cost curve.

The technical refresh is almost 90 per cent complete, with finalization expected this fall. This report will serve as part of the definitive basis for project financing and the anticipated final investment decision (see the company's news release dated Feb. 9, 2026, for further details).

About Gensource Potash Corp.

Gensource is a fertilizer development company based in Saskatoon, Sask., and is on track to become the next fertilizer production company in that province. With a modular and environmentally leading approach to potash production, Gensource believes its technical and business model will be the future of the industry. Gensource operates under a business plan that has two key components: (1) vertical integration with the market to ensure that all production capacity built is directed, and presold, to a specific market, eliminating market-side risk; and (2) technical innovation which will allow for a modular and economic potash production facility, that demonstrates environmental leadership within the industry, producing no salt tailings, therefore eliminating decommissioning.

We seek Safe Harbor.