Buffalo Potash Completes First Horizontal Well and Spuds Second at Disley Initial Production Module
BUFFALO POTASH COMPLETES FIRST HORIZONTAL WELL
AND SPUDS SECOND AT DISLEY INITIAL PRODUCTION
MODULE
Highlights
• Completed first of three horizontal wells as part of the second phase (Horizontal Line -Drive
drilling);
• Successfully installed packers for KCl-rich brine collection along the horizontal production well;
• Successfully made contact with approximately 95% of the target clay seam, confirming successful
placement of the well; and
• Spudded second horizontal well as part of the second phase.
SASKATOON, Saskatchewan, August 26, 2026 – Buffalo Potash Corporation (TSXV: BUFF) (OTCQB:
BLPTF) (FRA: VU5) (the "Company" or "Buffalo") is pleased to announce that it has commenced the
second phase (Horizontal Line-Drive drilling) of the buildout of the Initial Production Module ("IPM") located
at the Company’s flagship Disley property in Saskatchewan (the "Disley Project "). During this second
phase, the Company has completed the first of three planned horizontal wells (the "5D15-10 Well " or
"Producer Well 1 "), installed packers along that well for KCl -rich brine collection, made contact with
approximately 95% of the target clay seam, and spudded the second horizontal well (the "4D15-10 Well"
or "Producer Well 2").
Mr. Quinton Hardage, P.Eng., PMP, President and Chief Operating Officer of the Company,
commented: "We are extremely pleased to have completed our first horizontal well ahead of schedule and
under budget – now the third consecutive well we've delivered on that basis – all while making contact with
approximately 95% of the target clay seam. Achieving tha t level of contact with the clay seam is a key
element in what allows us to establish a mining plane with the surface area needed to make selective
solution mining work at scale. Reaching this milestone reflects the expertise of our team, who we believe
to be among the very best in the world when it comes to specialty potash drilling, and the way that expertise
has been paired with modern drilling technology. These results provide a strong foundation of
understanding for the next two legs of our Horizontal Line-Drive drilling campaign."
Phase 2: Horizontal Line-Drive Drilling
The second phase of the IPM buildout involves drilling three horizontal wells that form the downhole
infrastructure used to establish a solution mining plane in connection with Buffalo’s patented Horizontal
Line-Drive mining method at the IPM. Two of the three wells are designed to be producer wells that bring
KCl-rich brine to surface after crossing the mining plane from the center injector well, which introduces NaCl
brine sourced from the previously drilled 15-10 source well into the mining plane (see Figure 1).
Completed drilling of first horizontal (5D15 -10; Producer Well 1) – Further to the Company's August 18,
2026 news release (see release), drilling was completed at the 5D15 -10 Well (Producer Well 1), a 565 -m
lateral well and the first of the three horizontal legs of the underground IPM design. This well successfully
made contact with approximately 95% of the target clay seam along the well path, which is important for
the success of Phase 2, as the clay seam is the horizon along which the mining plane is established and
the hydraulic connection between the wells. Achieving this level of contact confirms accurate placement of
the lateral within the target production horizon. By injecting NaCl brine from the Injector Well, Buffalo intends
to clean out the clay along the seam and connect brine flow to Producer Well 1, creating surface area for
dissolution of KCl in the adjacent rock (see Figure 1).
Packer installation on first horizontal well (5D15 -10; Producer Well 1) – The Company has successfully
installed an 11-stage packer system along Producer Well 1. The packers are designed to act as collection
points that produce KCl-rich brine to surface once it has crossed the mining plane from the center Injector
Well. Packer installation is a vital function of Buffalo’s downhole infrastructure, operating as the mechanism
for controlling the flow of brine across the mining plane (see Figure 1).
Commencement of second horizontal well (4D15 -10; Producer Well 2) – The Company has spudded the
4D15-10 Well (Producer Well 2), the second of the three horizontal wells, which is intended to serve as the
second producer well in the IPM that collects KCl-rich brine from the mining plane. This well will be followed
by the 1D15-10 Injector Well that will facilitate the injection points through which brine enters the mining
plane on the way to the producer wells (see Figure 1).
Figure 1: Disley Initial Production Module Design
Disley Project Development Plan
The IPM is designed to produce 125,000 tonnes per annum ("TPA") of soluble-grade potash and is the first
of three planned solution mining facilities at the Disley Project. The IPM has a lower initial CAPEX
requirement compared to the full Disley Project build -out and is targeted to reach first production in Q1
2027. At full build-out comprising the IPM and two 500,000 TPA mines ("Disley East" and "Disley West"),
the Disley Project would be expected to produce up to 1,125,000 TPA of potash, as contemplated in
Buffalo's preliminary economic assessment titled "NI 43-101 Preliminary Economic Assessment Technical
Report on the Disley Potash Project, Saskatchewan, Canada " dated May 21, 2026, and effective April 15,
2026 (the "PEA"), a copy of which is available on the Company’s SEDAR+ profile at www.sedarplus.ca. On
a standalone basis, the PEA estimates a payback period for the IPM of approximately 12 months from the
start of production.(2) However, there is no guarantee that the Company will be able to achieve production.
The Company's production decision for the IPM is not based on a feasibility study with mineral reserves
demonstrating economic and technical viability, and such production decisions are historically associated
with a higher risk of economic and technical f ailure (see "Note 3 – Production Decision Cautionary
Statement").
The IPM is intended to establish initial cash -flow from production at a lower upfront capital cost, while
building the operational and technical foundation for full -scale development. Development of the IPM is
anticipated to be broken down into five phases:
1. Source and disposal wells (complete);
2. Horizontal Line-Drive ("HLD") drilling (ongoing);
3. Brine circulation;
4. Site development; and
5. Surface processing.
Disley Project - General Overview
The Disley Project is located approximately 50 kilometers northwest of Regina and covers 10,610 hectares
(Crown and Freehold mineral rights). The property is situated immediately to the east of the K+S Bethune
potash solution mine and north of the Mosaic Belle Plaine potash solution mine – both of which are among
the largest producing potash solution mines in the world. In the opinion of management, the Disley Project
is in one of the most favorable areas of Saskatchewan for potash solution mining (see Figu re 2) as
evidenced by the success of these neighboring operations.(1)
On May 22, 2026, Buffalo released the results of its maiden NI 43-101 Mineral Resource Estimate and PEA
for the Disley Project, prepared by Micon International Co Limited. The PEA outlined a phased, modular
development plan contemplating full -scale product ion of up to 1,125,000 TPA of potash across three
solution mining facilities, with an estimated after-tax net present value (NPV) of US$1.1B at a discount rate
of 8% and estimated internal rate of return (IRR) of 30%. (2) Readers are encouraged to refer to Buffalo's
April 27, 2026 and May 22, 2026 news releases and the NI 43 -101 technical report filed on SEDAR+ for
complete details of the PEA and Mineral Resource Estimate.
Figure 2: The Disley Property Situated Amongst Major Potash Solution Mines (1)
About Buffalo Potash
Buffalo Potash is an emerging Saskatchewan -based potash developer pursuing a modular approach to
selective solution mining through its patented Horizontal Line-Drive (HLD) technology. Buffalo is advancing
the Disley Project – located adjacent to two of the most prominent currently producing potash solution mines
in the world – with the objective of establishing capital -efficient, lower-impact potash production in one of
the world’s leading potash jurisdictions.
Qualified Person
The technical information in this news release has been reviewed and approved by Douglas F. Hambley,
PhD, PE, P.Eng., PG, an independent consultant to the Company, who is a Qualified Person within the
meaning of National Instrument 43 -101 – Standards of Disclosure for Mineral Projects . This news release
does not contain new technical disclosure beyond information previously disclosed in the NI 43 -101
technical report for the Disley Project filed under the Company's profile on SEDAR+ at www.sedarplus.ca.
Readers are referred to that technical report, prepared by Micon International Co Limited, fo r complete
details of the Mineral Resource Estimate and Preliminary Economic Assessment, including all data
verification, methodology, assumptions, and qualifications.
All related and pertinent information has also been reviewed for this news release by Jared Galenzoski,
P.Geo, FIMMM as an independent consultant to the Company who is a Qualified Person within the meaning
of National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Mr. Galenzoski is an expert
in several potash -related fields including the drilling of potash horizontal wells and solution mining
operations.
Contact
Steve Halabura | Chief Executive Officer & Director
Email: [email protected] | Phone: 1-306-220-7715
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notes
(1) The K+S Bethune potash solution mine and the Mosaic Belle Plaine potash solution mine (together, the
"Adjacent Properties") may each be considered an "adjacent property" (within the meaning of NI 43-101)
to the Company’s Disley Project. The Company has no interest in either of the Adjacent Properties. The
Company believes this context is useful in illustrating the proven endowment of the district, while noting
that mineralization on adjacent or nearby properties is not indicative of mineralization on the Company’s
Disley Project. There is no guarantee that the Disley Project will yield comparable results to either of these
mines.
(2) The PEA was prepared by Micon International Co Limited in accordance with National Instrument 43 -
101 Standards of Disclosure for Mineral Projects and is preliminary in nature. The PEA includes inferred
mineral resources, which are considered too speculative geologically to have the modifying factors and
economic considerations applied to them that would enable them to be categorized as mineral rese rves.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no
certainty that the results of the PEA will be realized. Readers are encouraged to read the technical report
filed under the Company's profile on SEDAR+ at www.sedarplus.ca in its entirety, including all
qualifications, assumptions, and exclusions that relate to the PEA.
(3) Production Decision Cautionary Statement : The Company's decision to proceed with development of
the IPM is not based on a feasibility study of mineral reserves demonstrating economic and technical
viability. No mineral reserves have been established at the Disley Project, and the PEA is prelimin ary in
nature (see Note 2). Historically, mineral projects advanced to production without first establishing mineral
reserves supported by a feasibility study have a higher risk of economic and technical failure. Specific risks
associated with the Company' s production decision include, but are not limited to: 1) grade, continuity, or
thickness of mineralization that differs from the Mineral Resource Estimate; 2) performance of the
Company's Horizontal Line -Drive mining method, which has not been operated at commercial scale, that
is not as anticipated; 3) recoveries, production rates, or capital and operating costs that differ materially
from the PEA; and 4) production during the IPM that does not become sustainable or profitable, which
would materially and adversely affect the Company's ability to generate revenue and cash flow.
Forward-Looking Information
This news release contains "forward-looking information" and "forward-looking statements " (collectively,
"forward-looking information") within the meaning of applicable Canadian securities legislation. Forward -
looking information is generally identifiable by the use of words such as "believes," "may," "plans," "will,"
"anticipates," "intends," "could," "estimates," "expects," "forecasts," "projects," or similar expressions, and
the negative of such expressions.
Forward-looking information in this news release includes, but is not limited to, statements regarding: the
timing, sequencing, and completion of the IPM development plan, including the drilling of the source,
disposal, and horizontal wells, the development of the mining plane, site development, and the installation
and commissioning of processing equipment; the Company's intention to inject NaCl brine from the Injector
Well to clean out the clay along the target clay seam and connect brine flow to the producer wells, thereby
creating surface area for the dissolution of KCl in the adjacent rock; the anticipate d drilling and completion
of the remaining horizontal wells, including the 1D15-10 Injector Well, and the completion of the three-well
Horizontal Line-Drive drilling campaign; the intended function of the installed packers to serve as collection
points that produce KCl-rich brine to surface after it crosses the mining plane; the establishment of a solution
mining plane at the IPM using Buffalo's patented Horizontal Line-Drive mining method; the IPM's designed
production capacity of 125,000 TPA of soluble -grade potash and the anticipated payback period for the
IPM; the anticipated timing of first production from the IPM; the anticipated timing and phasing of
construction and commercial production for the IPM, Disley East, and Disley West; the preparation, timing,
and expected benefits of a concurrent feasibility study for the full build-out of the Disley Project; the results,
assumptions, and projections contained in or derived from the Mineral Resource Estimate and PEA for the
Disley Project, including projected production rates and timing of production; expectations regarding the
Disley Project’s potential for solution mining; the Company’s broader development plans and strategy for
the Disley Project; and the fact that the Company's production decision for the IPM is not based on a
feasibility study of mineral reser ves demonstrating economic and technical viability, and the associated
increased risk of economic and technical failure.
Forward-looking information is based on management’s reasonable assumptions, estimates, analysis, and
opinions made in light of its experience, perception of historical trends, current conditions, and expected
future developments, as well as other factors that management believes are relevant and reasonable in the
circumstances as of the date such statements are made. These assump tions include, but are not limited
to, assumptions regarding geological continuity, potash grade and thickness, the applicability of historical
data, the performance of solution mining methods, costs of production, the availability of services and
equipment, the receipt of required permits and approvals, and the availability of financing on acceptable
terms.
Forward-looking information is subject to known and unknown risks, uncertainties, and other factors that
may cause actual results, performance, or achievements of the Company to differ materially from those
expressed or implied by such forward-looking information. Such risks and uncertainties include, but are not
limited to: the inherent uncertainty of PEA -level studies and the possibility that actual capital costs,
operating costs, and production rates differ materially from estimates; risks related to exp loration and
development activities; risks related to the timing and completion of lease construction, rig mobilization, and
drilling operations, including the availability and performance of drilling contractors, equipment, and
services; uncertainty in ge ological interpretation; risks related to the development, commissioning, and
operation of novel mining technology; risks inherent to solution mining operations and new or emerging
technologies; regulatory approvals and permitting timelines; commodity price volatility; availability of capital;
and general economic, market, and business conditions.
Although the Company has attempted to identify important factors that could cause actual results to differ
materially from those contained in forward-looking information, there may be other factors that cause results
not to be as anticipated, estimated, or intended. There can be no assurance that such information will prove
to be accurate, as actual results and future events may differ materially from those anticipated in such
forward-looking information. Accordingly, readers should not place undue reliance on forward -looking
information. The forward-looking information contained herein is made as of the date of this news release,
and the Company disclaims any obligation to update or revise such information, except as required by
applicable securities laws.