GSP.V · 2022-12-31 12:00:00

Gensource Potash Releases Audited Financial Statements and Management’s

Financials

Discussion and Analysis for the year ended December 31, 2022

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

THE UNITED STATES

SASKATOON, Saskatchewan & LONDON--(BUSINESS WIRE)--April 3, 2023--Gensource

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

development company focused on sustainable potash production, announces that it has released

its Audited Financial Statements and Management’s discussion and Analysis (MD&A) for the

year ended December 31, 2022.

The detailed results of the Audited Financial Statements and MD&A are available under the

Company’s profile on SEDAR (www.sedar.com) and on the Company’s website

(https://gensourcepotash.ca/financials-and-presentations/). The highlights in this release should

be read in conjunction with the Audited Financial Statements and MD&A. The MD&A provides

an analysis of comparisons with previous periods, trends affecting the business and risk factors.

Summary of Key Activities During Q4 2022 and the year ending December 31, 2022

 Global food security, energy costs and capital markets reached unprecedented levels of

disruption and volatility in 2022. The onset of war in continental Europe placed

considerable strain on global supply chains and exports of key agricultural commodities,

food stuffs and energy. Significantly impacted areas include: Global grain stocks - Grain

stock-to-use ratios continued a six-year decline reaching the lowest level in more than 25

years.

 Food prices - Agricultural commodities (food) prices trended well above average levels,

providing an incentive for farmers to increase planted acreage and improve yields.

 Fertilizer - Russia’s war on Ukraine resulted in a fertilizer supply shocks in nitrogen

(driven by deteriorating natural gas supply in Europe) and for potash (driven by

inaccessible supply from Eastern Europe). According to industry sources, potash

shipments from Eastern Europe declined by some 11 million tonnes due to sanctions on

Belarus and banking restrictions on Russia.

As a result, International Incumbents and Private Equity Groups are exhibiting heightened

interest in the Company’s direct supply model which utilizes modular, scalable and low-

environmental-impact potash production methods.

 On December 30, 2022, the Company completed the flow-through portion of the non-

brokered private financing announced on December 1, 2022. The Company issued

2,400,000 flow- through shares at a price of $0.20 per share for aggregate gross proceeds

of $480,000.

 Subsequent to December 31, 2022, the Company closed the second and final closing of

the non-brokered private placement. The Company issued 11,969,998 Units for aggregate

gross proceeds of $1,795,499.70. 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

 The Company advanced their business relationship with Nekaneet First Nation. The

strategic relationship with Nekaneet First Nation was formalized through its participation

in Gensource’s recently closed private placement (see news release dated January 31,

2023). The relationship encompasses equity ownership in Gensource and therefore a

direct interest in the development of the Gensource potash projects in Saskatchewan.

 The Company had cash of $337,831 as at December 31, 2022 compared to $209,536 at

September 30, 2022 and $1,712,19 at December 31, 2021.

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

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 risk, and requiring no surface brine ponds, thereby

removing the single largest and negative environmental aspect of potash mining.

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 Statement

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 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;

an inability to predict and counteract the effects of COVID-19 on the business of Gensource,

including but not limited to the effects of COVID-19 on the price of commodities, capital market

conditions, restriction on labour and international travel and supply chains, failure to obtain

required regulatory approvals; 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

Camarco (Financial PR)

Gordon Poole / Charlotte Hollinshead / Lily Pettifar

+44 (0) 20 3757 4997

For any press enquiries please contact us on [email protected]

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