Corporate Presentation

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1 Corporate Presentation THE SAKSRITHAI POTASH PROJECT Exploring in Thailand s Khorat Basin, the world s largest undeveloped high-grade potash resources August 2018

2 Disclaimer and Forward Looking Statements Information included in this presentation is forward looking and is subject to uncertainties and risks. The results or events predicted in this presentation may differ materially from actual results or events. Such information is sometimes accompanied by words such as project, potential, estimate, or similar statements. The proposed Saksrithai project is an exploration project and, as yet, there are no demonstrated potash resources within the project area. No assurance can be given that actual results, performance, achievements or values expressed in, or implied by, forward looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them. Page 2

3 Company and Project Overview A Canadian exploration company active in Thailand s Khorat Basin, which hosts the world s largest undeveloped high-grade potash resources. Experienced proven management, directly responsible for the acquisition, financing and development of Thailand s first commercial potash discovery at Udon Thani, in northeast Thailand, in the mid-90s. Has an 80% interest in Saksrithai Developments Ltd., a Thai company which holds two potash exploration licenses in Nakhon Ratchasima province, covering 32 km 2. Project located in close proximity to the continually growing SE Asian markets and adjacent to a potash mine currently under construction. Management s extensive exploration experience, access to regional geological data and information available from the adjacent project, enables accelerated exploration schedules and reduced project costs. Exploration is ongoing and initial drilling is planned for late-2018, with continuous anticipated news flow thereafter. Page 3

4 Share Structure as at August 2018 Capital Structure 24,599,769 Total Issued Shares 2,385,952 exercisable at $0.45 until Oct ,716,111 exercisable at $0.45 until Mar Listings Symbol TSX Venture VCV Frankfurt V8V3 OTC Pink VTTCF 102,167 exercisable at $0.225 until Mar ,399,188 exercisable at $0.30 until Feb ,510,000 exercisable at $0.30 until Feb./Mar./Apr ,121,743 exercisable at $0.39 until Apr ,235,009 Exercisable at $0.25 until Aug ,470,170 Total Warrants 694,444 Total Options 42,764,383 Fully Diluted Page 4

5 Executive Management and Directors GERALD WRIGHT Chief Executive Officer, Director Dr. Wright is a Professional Engineer (Province of BC) and holds a Doctorate in Engineering from Queen s University, Belfast. He was cofounder of the Crew Group of Companies and has over 30 years experience in the minerals exploration and development industry in Asia, North America, Europe and Africa, serving as a Senior Officer and Director of a number of public and private companies. He has extensive experience and knowledge of the global potash industry and, in particular, the potash resources underlying Thailand s Khorat Plateau. He served as Chief Executive Officer of Asia Pacific Resources Ltd. for 12 years, in which capacity he was directly responsible for the acquisition, financing and development of that company s Udon Thani project which is Asia s most significant commercial potash discovery to date. He has been Chief Executive Officer of Vatic since NASIM TYAB Director Mr. Tyab is an entrepreneur and financier with over 20 years experience in the international capital markets. Co-founder and a director of Mohave Exploration & Production Inc. from 2006 to 2010, an oil & gas company which amalgamated with Porto Energy Corp raising $100 million. Co-founder of MYM Neutraceuticals and Commitment Capital Corp. (HOOS Corp.) Director of Oracle Energy Corp. He has been a director of Vatic since THOMAS WILSON CPA-CA Chief Financial Officer, Director Mr. Wilson has over 35 years of corporate experience in all areas of financial management and administration including corporate governance, government and securities compliance and financial administration, for both public and private companies. Within the mining sector, he has been CFO for the following companies: Quadro Resources Ltd., ICN Resources Ltd., Paragon Minerals Corporation. Previously, Mr. Wilson was the VP/Treasurer of Cellfor Inc.; the CFO for Quest University; Corporate Controller for MDSI; and Senior Manager at MacMillan Bloedel Limited. He has been CFO of Vatic since 2011 and a director since Page 5

6 Non-Executive Directors ANTHONY CLEMENTS Non-Executive Director Mr. Clements is a former investment banker with Fox Davies Capital Limited, a London-based firm specializing in financing both mining and oil and gas corporations. He began his career focused on natural resources, having gained a B.Sc. in Economics from the University of London followed by a post-graduate course in accountancy. In 1970, he joined the Electricity Council Pension Fund as Senior Investment Analyst and in 1973 moved to the Post Office Pension Fund (Postel Investment Management), later named Hermes Investment Management, where he managed the company s resource portfolio including the multi-billion dollar North American portfolio. In 1987 he moved to the sales side of the investment industry, specifically in corporate finance with particular emphasis on Australian and North American resource issuers, working with several firms, including T. Hoare and Co. and Yorkton Securities Inc. a leading Canadian Investment Bank specializing in resource issues. From 2001 until 2010 Mr. Clements was Head of Corporate Finance at ODL Securities. Mr. Clements has acted as an advisor to numerous natural resource companies and has served as a director of several resource companies. He is a director of Aton Resources Inc. He has been a director of Vatic since T. BARRY COUGHLAN Non-Executive Director Mr. Coughlan is a Vancouver based businessman and financier who for over 30 years has been involved in the financing of publicly traded companies. He has been involved in the financing of over thirty private companies and their subsequent listings on North American Stock Markets. He has been employed as a Stock Broker in New York City, Toronto and Vancouver, and has extensive knowledge of both local and international financial markets. He is presently a director of five publicly traded companies and was previously a director of Taseko Mines Ltd., Great Basin Gold Ltd., Farallon Mining Ltd., and Continental Minerals Corp. He is the Executive Chairman of Mineral Mountain Resources Ltd. He is also the CEO of Quadro Resources Ltd. He has been a director of Vatic since MATTHEW MIKULIC Non-Executive Director Mr. Mikulic was a director of Lucky Strike Resources Ltd. from December 2009 to December He has been a director of Vatic since Page 6

7 The Global Potash Industry Potash is an essential plant nutrient, one of the three required fertilizers for crops such as rice, wheat and palm oil. Potash is produced from a number of potassium bearing ores, such as sylvinite and carnallite, by conventional underground mining, evaporation from brine lakes or solution mining. The present annual world production of potash is about 60 million tonnes KCl, with an annual growth rate of about 2.4%. Projected annual growth rate in SE Asia is approximately 5% over the next decade. The major producing countries include Canada, Russia, Belarus, and Germany, which combine for 80% of world production. The industry s five top producing companies account for 80% of world production. Thailand s Khorat basin hosts the largest commercially viable potash deposits discovered in Asia, the world s largest potash importing region, with annual imports exceeding 17Mt KCl. Page 7

8 Potash Production and Trade Canada Russia USA W Europe Belarus China E Asia Brazil Mid East India Khorat Basin SE Asia Major exporter Major importer Page 8

9 Potash in Thailand Thailand s Khorat basin is the world s largest undeveloped potash deposit, hosting extensive high-grade potash resources. The shallow depth to the potash deposits results in lower capital and operating costs than most proposed developments. Thailand s proximity to key potash markets results in significantly lower transportation costs to regional markets. Thailand enjoys excellent regional infrastructure, including electrical power and transportation, and is a strategic location, with access to key regional markets. In 2014, the Ministry of Industry set up a special steering committee to promote the development of the country s potash resources. Mining licenses have since been approved for two projects in the country, with license pending for the third. Since 2016, several new exploration licenses have been granted, making it an active potash exploration country. Page 9

10 The Khorat Evaporite Basin The Khorat Plateau lies in northeast Thailand, extending into Laos. Located at an elevation of some 200 meters above sea level, the plateau covers an area of 130,000 km 2. The plateau is underlain by the Khorat evaporite basin, which is estimated to contain several billions of tonnes of high-grade sylvinite (up to 40% KCl) and carnallite minerals, overlain by layers of clay-stone and halite. The potash deposits are gently dipping and at shallow depth (150 to 350 m), providing substantial savings in project capital costs. A number of projects are currently under development in the Khorat basin, including in Thailand: the ASEAN Potash Chaiyaphum Plc Bamnet Narong project (Chaiyaphum), Thai Kali Co. (Nakhon Ratchasima) and Italian-Thai Development Plc (Udon Thani). New exploration license holders include: Rong Pang Mining, Sahachart Setthakit, and International Petroleum Group. Page 10

11 Potash Licenses in Thailand Page 11

12 Regional Geology Silvinite ore - Udon Thani Upper clastics (<140 m) Upper Salt (<5 m) Middle clastics (<40 m) Middle salt (<80 m) Lower clastics (<40 m) Potash stratum Lower salt (200+ m) Typical Stratigraphy Page 12

13 Projects under Development in Thailand Bamnet Narong project - ASEAN Potash Chaiyaphum Plc. Planned Production level: 1.1 million tonnes per annum, estimated potash grade: 18% KCl. EIA approved and mining licenses granted. Udon Thani project Italian-Thai Development Plc. Planned Production level: 2.0 million tonnes per annum, est. potash grade: 40% KCl. EIA approved and mining licenses applied for. Dan Khun Thot project - Thai Kali Co. Ltd. Planned Production level: 0.5 million tonnes per annum, estimated potash grade: 21.5% KCl. EIA approved, mining licenses granted. Currently under construction. Saksrithai project Vatic Ventures Corp. Exploration stage project, exclusive exploration licenses granted (32 km 2 ). Project commenced March 2017: seismic completed, drilling planned. Page 13

14 Khorat Basin, Northeast Thailand Italian-Thai LAOS APOT Thai Kali THAILAND Saksrithai Page 14

15 The Saksrithai Potash Project In 2015, two exclusive exploration licenses were issued to Saksrithai Development Co. Ltd. (Saksrithai). The licenses have an initial term of 5 years; such licenses may not be transferred to a third party. In early-2017, Vatic acquired an 80% interest in Saksrithai, providing full security of tenure over the licenses and control of the project development. The license area comprises 32 km² in Nakhon Ratchasima province, northeast Thailand, some 270 km from Bangkok. The ASEAN Potash Chaiyaphum Plc Bamnet Narong project, also under construction, is located some 45 km from the Saksrithai project. The (Phase 1) resource evaluation phase, comprising the initial seismic survey, geological survey and interpretation, baseline environmental studies and local community programs, commenced March The initial diamond-drilling program is planned. Page 15

16 Ongoing and Proposed Exploration Programs The main contractors include Geocon Co. Ltd. (seismic) and Aztec Engineering Co. Ltd. (drilling), proven contractors with over 30 years of experience of potash developments in Thailand and Laos. The initial seismic survey was completed by early-2017 and the raw site data was processed by Velseis. The initial diamond-drilling program is planned for late Phase 1 (budget approx. $1.5 million) over months, is aimed at quantifying a potash resource, leading to a pre-feasibility study and resource estimate. Phase 2 (budget approx. $5 million) will include additional seismic and drilling programs, EIA, mining, processing, transportation and marketing studies, leading to a bankable feasibility study and defined potash reserve. Page 16

17 Seismic Survey line-km Page 17

18 Seismic Data Interpretation Initial review of the data demonstrates structural continuity with the adjacent Dan Khun Thot potash project, which is presently under construction. The seismic data indicate a number of areas where the reflectors are relatively horizontal and these areas will be the focus for the initial drill holes. Some post-depositional domal structures are evident within the license block and other projects within the Khorat basin have shown that the presence of such structures can lead to enrichment of the potash grade in the surrounding area. This seismic data will form the basis for planning the hole locations for the Phase 1 drilling program. The initial drill holes will enable calibration of the seismic data to give more detailed information regarding depth and thickness of the underlying structures. In addition, up to 15 line-km of additional seismic survey is planned. Page 18

19 Results From Initial Seismic Survey 3D representation of the recently completed seismic survey showing drill targets (across) Page 19

20 Results From Initial Seismic Survey Areas identified as initial drilling targets Page 20

21 Marketing Strategy Global scarcity is not the issue with potash transportation costs are USGA - Technical announcement - March 3, 2015 Thailand is strategically located relative to the growing potash markets of SE Asia. The company s marketing strategy will focus on meeting the increasing demand of the ASEAN counties of Thailand, Indonesia, Malaysia and Vietnam. These four countries consume about 75% of Asian potash imports (excl. China and India) and have a current demand exceeding 5 million tonnes KCl per annum, rising at an estimated 5% annually. Rice and palm oil cultivation account for some 70% of potash usage in the SE Asia region. Indonesia and Malaysia are the world s largest producers of palm oil, while Thailand and Vietnam are among the world s leading producers of rice. Proximity to these growing markets, combined with convenient and flexible transportation options, provide significant transportation cost advantages (up to $60.00 per tonne) over Canadian and European suppliers to the region. Page 21

22 Southeast Asian Markets Korea. China Japan India Myanmar Laos Khorat Basin Thailand Cambodia Vietnam The Philippines Malaysia Indonesia 1,000 km Australia Page 22

23 Asian Potash Demand excl. China, India & Middle East Page 23

24 Appendix 1 Potash Grades for Proposed Projects Country Project Developer Average Grade Laos Lao Kaiyuan (Khammouane) 17.4% KCl Vinachem (Khammouane) 17.0% KCl Canada Western Resources (Milestone) 21.0% KCl Karnalyte Resources (Saskatchewan) 18.0% KCl Congo Mag Industries (Mengo) 17.3% KCl Kore Potash Ltd. (Kola) 33.0% KCl Spain Highfield Res. (Muga) 18.0% KCl Eritrea Danakali Res. (Colluli) 16.4% KCl Thailand Italian-Thai (Udon Thani) 40.0% KCl Thai Kali Co. Ltd. (Nakhon Ratchasima) 21.5% KCl APOT (Chaiyaphum) 15.7% KCl Page 24

25 Appendix 2 Market Cap Junior Potash Companies Company Location Share price # shares Market Cap TSX-listed companies Encanto Potash Saskatchewan $ mil $ 22 mil Karnalyte Resources Saskatchewan $ mil $ 14 mil Potash Ridge Utah $ mil $ 20 mil Western Resources Saskatchewan $ mil $ 37 mil ASX-listed companies Danakali Resources Eritrea A$ mil A$ 180 mil Highfield Resources Spain A$ mil A$ 304 mil Kore Potash Congo A$ mil A$ 77 mil NYSE-listed companies Intrepid Potash United States US$ mil US$ 452 mil AIM-listed companies Sirius Minerals England bil 1.42 bil Page 25

26 Corporate Contact Corporate Office Vatic Ventures Corp. Shareholder Contact Nasim Tyab West Georgia Street Vancouver, BC, V6E 4H1, Canada Tel. +1 (778) Page 26