Overview and Strategy

African Potash is focused on creating a vertically integrated platform for the mining, production and distribution of fertiliser, which the Board believes could generate material value for shareholders. A combination of rising demographics and growing affluence in the developing world has led to a structural shift higher in global demand for agricultural produce. Accommodating the increase in demand for foodstuffs will require a greater use of fertilisers, which creates an opportunity for a pan-African, London listed vehicle, focussed on fertiliser.

In February 2013, African Potash formally acquired an indirect 70% interest in La Societe des Potasses et des Mines S.A., which holds the exclusive right to conduct mining research activities for potash salts, a primary source of potassium fertiliser, over the Lac Dinga Project in the Republic of Congo. The Lac Dinga Project is African Potash's maiden asset and main target for exploration.

In addition to proving up the value potential of the Lac Dinga Project, the Company has an agreement in place with the Common Market for Eastern and Southern Africa ('COMESA'), a free trade union for twenty African member states, to supply and deliver fertiliser to off-takers identified and introduced by COMESA.

The Board will continue to seek strategic opportunities to add additional complementary industry divisions to further enhance its integrated fertiliser platform. The Directors have well established business contacts and connections in sub-Saharan Africa and intend to utilise these to identify prospective acquisition, investment and/or trade targets with scope for growth. The Board has a defined investment strategy centred on evaluating potential opportunities in accordance with its stringent investment criteria and on an individual merit basis.

The Company's investing policy is to acquire and/or invest in businesses with assets related to the fertiliser industry in sub-Saharan Africa. The Company's investment objective is to provide shareholders with an attractive return on their investment predominantly through capital appreciation generated by the growth of any acquired assets and/or businesses.

The Directors have many years' experience working with and for companies operating in sub-Saharan Africa. They will use their extensive business contacts and knowledge to source the most attractive transactions and assess potential targets for acquisition.