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Sage Potash Corp
Symbol SAGE
Shares Issued 54,141,193
Close 2024-01-05 C$ 0.13
Market Cap C$ 7,038,355
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Sage receives permits for Sage Plain exploration wells

2024-01-08 10:34 ET - News Release

Mr. Peter Hogendoorn reports

SAGE POTASH SECURES PERMIT APPROVALS FOR EXPLORATION PROGRAM AT SAGE PLAIN POTASH PROJECT

Sage Potash Corp. has received all required governmental approvals for two Class V exploration wells at its Sage Plain potash project, located in Utah's Paradox basin.

Sage Potash's chief executive officer and executive chairman, Peter Hogendoorn, stated: "Sage's successful drilling permit applications represent a pivotal milestone on the company's path to achieving pilot-scale potash mining and processing activities. The approved exploration wells will not only allow us to increase our understanding of the Sage Plain mineral resource, comprised in the Upper and Lower Cycle 18 potash beds underlying the property, but these same wells will, in future, be transitioned to injection production and disposal wells. This is a highly significant derisking event for the company as the most consequential permit approvals for the project have now been secured, pending bonding."

The State of Utah's Division of Oil, Gas and Mining (UDOGM) and Division of Water Quality (DWQ) have issued tentative approvals for both surface (drill pads and access roads) and underground (wells) activities. This is part of the underground injection control (UIC) Class V exploration injection permit application for a production and disposal well submitted by the company in March, 2023. Formal drill permits will be issued once bonding is received and approved and the company has received written acceptance from UDOGM as well as other applicable agencies.

The execution of the now-approved exploration program represents phase 1 of the Sage Plain project development effort. The two Class V wells will be designed and constructed under the standards and specifications of a UIC Class III production well and UIC Class I disposal well. The wells will allow for determination of injection capacity and hydraulic behaviours of the potash and potential disposal formations as well as provide management with geological data through examination of the drill core as part of test cavern development for potash recovery from the Cycle 18 potash beds. Once the data from the exploration wells are gathered, the company will apply to convert these wells into UIC Class I and Class III wells for the purpose of injection, production and disposal, allowing for potash brine fluid recovery.

Concurrently with the Class I and Class III permits conversion, the company will submit the large mine operation (LMO) permit for up to 150,000 tonnes per year. In partnership with global engineering firm Respec, Sage is advancing engineering and designs for a 50,000-tonne-per-year pilot-scale potash solution mining operation as part of its continuing engineering studies and production permit application. Data from this program, along with plant design and engineering details, will be included to complete the final LMO application for permit approval.

Following receipt of the news that the company had secured governmental approval for the Class V wells, Mr. Hogendoorn expressed renewed confidence in the coming year, stating: "We recognize the prevailing capital market conditions for conventional project advancement are extremely difficult. As a result, the company and, in particular, the team in our U.S. subsidiary, Sage Potash (USA) Corp., have focused on permitting and engineering, whereby value can be realized at the project level. With the developments to date, together with the highly strategic land position of contiguous state and private mineral leases from which up to 70 mining units, each consisting of 320 acres, can be developed, management believes the project has now achieved significant milestones and, accordingly, eliminated substantial barriers to entry, which can be value realized in terms of time and capital for strategic interests."

Mr. Hogendoorn continued: "As previously announced, the company recently retained ACP Capital Markets LLC, an internationally recognized capital market adviser and investment banking firm based in Stamford, Conn., with a proven track record in selecting and financing undervalued projects in the agribusiness sector, such as the Sage Plain potash project. The company is working diligently with ACP in identifying and engaging with strategic industry partners and institutional investors. We are confident our achievements over the past year, including recently securing the most consequential permit approvals for the project, will facilitate our ongoing efforts at the project level and with ACP and, accordingly, optimize our ability to realize and deliver significant value to Sage Potash shareholders."

About Sage Potash Corp.

Sage Potash is a Canadian company vested solely in the Sage Plain property and intends through sustainable solution mining techniques to become a prominent domestic potash producer within the Paradox basin situated in Utah.

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