Elemental Minerals : KORE - Drilling at Kola Intersects very High-Grade Seam of 58.9% KCl

KORE POTASH LIMITED‌‌‌‌‌‌‌‌‌

Level 3, 88 William Street, Perth,

Western Australia 6000

Telephone: [phone]

Facsimile: [phone]

EMAIL AND WEBSITE

[e-mail] www.korepotash.com

DIRECTORS

Chairman: David Hathorn CEO: Sean Bennett

Non-exec Director: Jonathan Trollip Non-exec Director: Leonard Math Non-exec Director: Timothy Keating Non-exec Director: Pablo Altimiras

ISSUED CAPITAL

(As at - 23 January 2017) 728.9m Ordinary Shares ASX Code: K2P

Drilling at Kola Intersects very High-Grade Seam of 58.9% KCl Summary:

• As previously announced, Kore is carrying out drilling aimed at further expanding and improving confidence of the Kola resource as preparation for the upcoming DFS.
• For the first hole of the three-hole programme Kore Potash is pleased to report that it has intersected 4m @ 58.9% KCl from a depth of 255.85m hosted by sylvinite 'Hangingwall Seam'.
• This seam is interpreted to be well developed in this area being continuous between this hole and EK_13, which is 830 metres away, with similar depth, grade and thickness.
• Kola is already considered to have an excellent grade at 33.13 % KCl. The EK_49 intersection demonstrates the potential to increase this.
• A Resource update is expected early in the June quarter.
• Kola drilling is expected to be completed early February then the drilling programme will move to further test the Dougou Extension Prospect.

Perth, Australia, 23 January 2017 - Kore Potash Limited (ASX:K2P) (formerly known as Elemental Minerals Limited - ASX:ELM) (Kore or the Company) announced on 23 November 2016 that it intended to drill a further 3 holes at its Kola potash project in Republic of Congo aimed at further expanding and adding confidence to the Kola resource for the DFS. The purpose of the first hole, EK_49, was to test the extension of the very high grade Hangingwall sylvinite seam intersected previously at Kola. Kore is very pleased to advise that it has intersected 4 metres of sylvinite grading 58.9% KCl from a depth of 255.85m. The next two holes EK_50 and EK_51 (in progress) are being drilled in large 'gaps' in the existing sylvinite resource. Comment by Sean Bennett, Managing Director "Following the $45m investment at the end of November, I am pleased to have begun our additional drilling programme at Kola to optimize the resource inputs for the upcoming DFS. We are really excited that Kola continues to produce sensational results, demonstrating the high quality of the project. At between 48% and 60% KCl, the Hangingwall seam is a candidate for the highest grade potash seam of significant thickness in the world. The Company is considering ways in which to incorporate these results into the Kola mining plan and DFS in order to improve plant design and projects economics." Observations from the High Grade Result

• The mineralization in EK_49 is comprised of almost 60% sylvite (Figure 1), the remainder is halite and is without visible insoluble material - a deleterious component in most of the worlds potash ores.

• The reported thickness is well above the minimum thickness required for the planned mining method and is expected to be within ~5% of the true width of the seam.

• EK_49 is 830m southwest of hole EK_13, drilled in 2010 which also intersected sylvinite Hangingwall Seam (3.73m grading 54.41% KCl from a depth of 258.74m) supporting the continuity of the seam in this area. Analysis of the core and of seismic data shows that in this area the seam is horizontal and is likely to be continuous between these holes. In both EK_13 and EK_49 the seam is more than 20m below the top of the salt host rock which more than satisfies the requirements for mining.

• The Hangingwall sylvinite seam at Kola grades between 48% and 60% KCl (Table 1). The high grade of the sylvinite does not reflect a localized enrichment but is a consistently high grading seam. Furthermore, the insoluble content of the seam from previous intersections is exceptionally low at less than 0.2%. This seam is also the target at the Dougou Extension Prospect, 15 km to the southwest.

• Due to its very high grade, the Hangingwall sylvinite seam may have a positive impact on the grade of the current (last updated August 2012) Measured and Indicated mineral resource for Kola (Table 2)1 if included in these categories which at present are only assigned to the Upper Seam and Lower Seam (573 Mt grading 33.13% KCl). The Kola resource is being updated and completion of this work is expected in Q2 2017. The current (August 2012) Hangingwall sylvinite seam resource is 47Mt grading 55.04% KCl, all within the Inferred Category.

• Figure 2 shows all holes where sylvinite Hangingwall seam has been intersected at Kola and Table 1 provides details of these intersections. At Kola the Hangingwall seam is consistently between 55 and 60m above the Upper Seam, at a depth of between 195 and 265m below surface.

1 Announcement dated 20 August 2012: Elemental Minerals Announces Significant Further Mineral Resource Upgrade for Kola

Figure 1. The Hangingwall seam sylvinite in EK_49 (orange-pink colour). 4.04 metres grading 58.9% KCl. Rock-salt above and below the seam is included in the photograph

KCl grade determination from API data

The KCl grade of the intersection in EK_49 was determined using a factor for the conversion of API values (generated from downhole gamma-ray logging) to KCl%, established by the Company's independent geophysical provider, Wireline Workshop of South Africa, as described in section 6 of Appendix 1. As further validation, the grade is similar to other intersections of this seam at Kola (Table 1) and visually, sylvite can be seen to comprise approximately 60% of the rock.

Figure 2. Map showing the position of EK_49 in relation to other holes containing sylviite Hangingwall Seam at Kola (Table 1). Holes in progress, EK_50 and EK_51 are shown.