Danakali Limited announced that the results of the Front End Engineering Design (FEED) phase for the Colluli Potash Project, located in Eritrea, East Africa. The project is 100% owned by the Colluli Mining Share Company (CMSC), a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation. FEED firmly establishes Colluli as the most progressed, economically attractive, and fundable Sulphate of Potash (SOP) greenfield development project globally. There is no other known SOP greenfield development project that has completed FEED. FEED provides offtakers and funders with a high level of study detail and accuracy, the FEED results provide a higher level of financial certainty to project financiers, further de-risking the investment proposition and underpinning the Financial Model, completion of well-defined procurement and supplier lists concludes the pre-requisites for the participation of Export Credit Agencies, which form a key component of the project finance strategy, FEED provides offtakers with additional confidence on Project certainty and fundability, which will support finalisation of binding bankable offtake agreements. FEED carries a high level of accuracy, and is the final study stage before project execution, FEED study carries an operating and capital cost accuracy level of ±10%, Fluor acted as lead consultant during FEED and was supported by a selection of highly qualified, industry recognised consultants with intimate knowledge of the Project obtained in previous study phases, optimisation opportunities across the entire mining and infrastructure supply chain were identified and evaluated during FEED and are included in the final assessment, the majority of the cost estimates are supported by formal vendor/contractor pricing. The FEED results reaffirm the outstanding project economics of Colluli, capital intensity achieved in the DFS further reduced as a result of lower development capital requirements for Module I and increased annual production rate, Forecast first quartile operating costs, Net Present Value (NPV) of USD 902 million, Internal Rate of Return (IRR) of 29.9%, Danakali share of NPV of USD 439 million with IRR of 31.3%. Modular development approach underpins highly scalable, long life project, Module I is expected to produce 472ktpa of premium SOP product, Module II, commencing production in year 6 of the Project, will increase total SOP production to 944ktpa, the Project has significant expansion and multi-commodity potential presenting additional value upside, expected mine life of approximately 200 years at FEED production rates.