Salt Lake Potash Limited (SLP or the Company) is pleased to announce the results of reconnaissance surface sampling at Lake Way, with brine samples averaging 15kg/m³ of Sulphate of Potash (SOP) equivalent.

In conjunction with extensive historical exploration data, these results indicate excellent potential for Lake Way to host a large high-grade SOP brine resource, substantially enhancing the prospects of the Company's Goldfields Salt Lakes Project (GSLP).

Highlights of Lake Way:

Ø  Preliminary surface sampling indicate excellent chemistry for potential SOP production:

* Conversion factor of K to SOP (K₂SO₄ equivalent) is 2.23

Ø  Extensive historical exploration in the area supports the brine chemistry at depth and also indicates the presence of a potentially high yielding paleochannel aquifer, with a number of Constant Rate Pumping Tests (CRT) producing yields between 520kL/day and 840kL/day.

Ø  Large surface area for potential extraction of brine via trenches and construction of on-lake evaporation ponds. 

Ø  Lake Way is located less than 15km from Wiluna adjacent to the Goldfields Highway, Goldfields Gas Pipeline and 280km from the Leonora railhead.

Commenting on the Lake Way results, SLP's CEO, Matt Syme, said:

"These reconnaissance sampling results, in combination with the review of historical exploration data, provides an exciting opportunity at Lake Way. Lake Way itself appears capable of supporting a high quality standalone SOP project, but also offers significant opportunity to be integrated into the GSLP - an emerging and potentially world class SOP province. The Company will follow these initial results with a comprehensive exploration program in the new year."

LAKE WAY

Lake Way is located in the Goldfields region of Western Australia, less than 15km south of Wiluna. The Project comprises 210km² of granted and 77km² of pending exploration license applications, substantially covering the Lake Way playa. The surface area of the Lake is approximately 170km².

Lake Way was identified due to its strategic location and significant infrastructure advantages. The Wiluna region is an historic mining precinct dating back to the late 19th century. It has been a prolific nickel and gold mining region and therefore has well developed high quality infrastructure in place.

The Goldfields Highway is a high quality sealed road permitted to carry quad road trains and passes 2km from the Lake. The Goldfields Gas Pipeline is adjacent to SLP's tenements, running past the western side of the Lake.

The Wiluna area is subject to Native Title in favour of the Wiluna People represented by the Tarlka Matuwa Piarku Aboriginal Corporation (TMPAC). In July 2016, TMPAC reached a Mining Agreement with Toro Energy Limited, a uranium developer near Lake Way. SLP will seek to enter a dialogue and similar agreement with TMPAC. 

Reconnaissance and Pit Sampling Program

The Company conducted an initial reconnaissance surface sampling program at Lake Way in November 2017. A total of 8 pit samples were collected at Lake Way encountering brine at a standing water level from less than 1 metre from surface. The average brine chemistry of the samples was: 

* Conversion factor of K to SOP (K₂SO₄ equivalent) is 2.23

Exploration History

Significant historical exploration work has been completed in the Lake Way area focusing on nickel, gold and uranium. The Company has reviewed multiple publicly available documents including relevant information on Lake Way's hydrogeology and geology. 

The Lake Way drainage is incised into the Archean basement and now in-filled with a mixed sedimentary sequence, the paleochannel sands occurring only in the deepest portion. The mixed sediments include sand, silts and clays of lacustrine, aeolin, fluvial and colluvial depositional origins. The surficial deposits also include chemical sediments comprising calcrete, silcrete and ferricrete. The infill sediments provide a potential reservoir for large quantities of groundwater.

Groundwater exploration was undertaken in the early 1990s by AGC Woodward Clyde to locate and secure a process water supply for WMC Resources Limited's Mt Keith nickel operation.  There was a wide and extensive program of exploration over 40 km of palaeodrainage that focused on both the shallow alluvium and deeper palaeochannel aquifers.

The comprehensive drilling program comprised 64 air-core drillholes totalling 4,336m and five test production bores (two of which were within SLP's exploration licences). The aquifers identified were a deep palaeochannel sand unit encountered along the length of the Lake Way investigation area and a shallow aquifer from surface to a depth of approximately 30m.

The shallow aquifer comprises a mixture of alluvium, colluvium and lake sediments extending beyond the lake playa and continuing downstream. Bore yields from Constant Rate Tests (CRT) in the shallow aquifer ranged from 60kL/day up to 590kL/day in permeable coarse-grained sand.

The deep palaeochannel sand aquifer is confined beneath plasticine clay up to 70m thick. The sand comprises medium to coarse grained quartz grains with little clay - it is approximately 30m thick and from 400m to 900m in width. Five test production bores were developed, of which two are within SLP's tenements. CRT bore yields ranged from 520kL/day up to 840kL/day in permeable coarse-grained sand.

The groundwater is hypersaline and saturated near the lake surface with concentrations declining away from the lake. In the production bores within the SLP tenement, the potassium concentration was 4,000 mg/L K in the shallow aquifer and between 6,000 and 6,300 mg/L K in the deep aquifer.

Competent Persons Statement

The information in this report that relates to Exploration Results, or Mineral Resources for Lake Way is based on information compiled by Mr Ben Jeuken, who is a member Australian Institute of Mining and Metallurgy. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr Jeuken has sufficient experience, which is relevant to the style of  mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Jeuken consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

APPENDIX 1 - BRINE CHEMISTRY ANALYSIS

APPENDIX 2 - JORC TABLE ONE

Section 1: Sampling Techniques and Data

Section 2: Reporting of Exploration Results

For further information please visit www.saltlakepotash.com.au or contact:

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.