GSP.V · 2023-05-30 12:00:00

Gensource Potash Closing of Non-Brokered Private Placement

Financings

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN

THE UNITED STATES

SASKATOON, Saskatchewan & LONDON--(BUSINESS WIRE)--May 30, 2023--Gensource

Potash Corporation (“Gensource” or the “Company”) (AIM/TSXV: GSP), a fertilizer

development company focused on sustainable potash production, announces that on May 29,

2023 it completed the closing of its previously announced non-brokered private placement

offering (the “Offering”) of units of the Company (each a “Unit”) at a price of $0.15 per Unit.

At the closing, the Company issued 6,118,583 Units for aggregate gross proceeds of

$917,787.45. Each Unit consists of one common share in the capital stock of the Company (a

“Common Share”) and one Common Share purchase warrant of the Company (a “Warrant”).

Each whole Warrant is exercisable for one Common Share (a “Warrant Share”) at an exercise

price of $0.30 per Warrant Share for a period of 24 months following the date of issuance.

As part of the Offering, certain directors and officers of Gensource purchased 2,485,250 Units.

Participation by the Insiders in the Offering was considered a "related party transaction" pursuant

to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special

Transactions ("MI 61-101"). Gensource was exempt from the requirements to obtain a formal

valuation or minority shareholder approval in connection with the Insiders’ participation in the

Offering in reliance of sections 5.5(b) and 5.7(a) of MI 61-101. The Company was not in a

position to file a material change report more than 21 days in advance of the closing of the

Offering as the details of participation by the Insiders was not known at such time.

Use of proceeds from the sale of the Units, as previously disclosed, will be used to advance the

Company’s Tugaske potash project (the “Tugaske Project”) and for general working capital

purposes. Gensource is pleased that the current portion of financing has been completed while it

continues its work on funding opportunities to secure additional capital for the Tugaske Project.

The securities issued pursuant to this closing of the Offering are subject to a hold period of four

months plus a day expiring September 30, 2023.

This closing of the Offering remains subject to receipt of the final approval of the TSX Venture

Exchange.

About Gensource:

Gensource is a fertilizer development company based in Saskatoon, Saskatchewan 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 pre-sold, 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.

Further information on Gensource Potash Corporation can be found at www.gensourcepotash.ca

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.

Caution Regarding Forward-Looking Statements

This news release may contain forward looking information and Gensource cautions readers that

forward-looking information is based on certain assumptions and risk factors that could cause

actual results to differ materially from the expectations of Gensource included in this news

release. This news release includes certain “forward-looking statements”, which often, but not

always, can be identified by the use of words such as “believes”, “anticipates”, “expects”,

“estimates”, “may”, “could”, “would”, “will”, or “plan”. These statements are based on

information currently available to Gensource and Gensource provides no assurance that the

actual results will meet management’s expectations.

Forward looking statements include estimates and statements with respect to Gensource’s future

plans, objectives or goals, to the effect that Gensource or management expects a stated condition

or result to occur, including any offering of securities by Gensource. Since forward-looking

statements are based on assumptions and address future events and conditions, by their very

nature they involve inherent risks and uncertainties. Actual results could differ materially from

those currently anticipated in such statements for many reasons such as: failure to finance the

Tugaske Project or other projects on terms which are economic or at all; failure to settle a

definitive joint venture agreement with a party and advance and finance the Tugaske Project;

changes in general economic conditions and conditions in the financial markets; the ability to

find and source off-take agreements; changes in demand and prices for potash; litigation,

legislative, environmental and other judicial, regulatory, political and competitive developments;

technological and operational difficulties encountered in connection with Gensource’s activities;

and other matters discussed in this news release and in filings made with securities regulators.

This list is not exhaustive of the factors that may affect any of Gensource’s forward-looking

statements. These and other factors should be considered carefully, and readers should not place

undue reliance on Gensource’s forward-looking statements. Gensource does not undertake to

update any forward-looking statement that may be made from time to time by Gensource or on

its behalf, except in accordance with applicable securities laws.

Contacts

For further information on Gensource Potash, please contact:

Gensource Potash Corporation

Mike Ferguson – President & CEO

+1-306-974-6414

Strand Hanson Limited (Nominated & Financial Adviser)

Ritchie Balmer / Rory Murphy / Charles Hammond

+44 (0) 20 7409 3494

Peel Hunt LLP (Broker)

Ross Allister / David McKeown / Georgia Langoulant

+44 (0) 20 7418 8900

For any press enquiries please contact Gensource at 306-974-6414.

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