DNK - Danakali Limited

[Miner]

Re: STB - South Boulder Mines

A quick update that this stock is running hard atm with no particularly related news.

Jan 19th it released:


View attachment 41153
It seems that the maiden resource was a disappointment to holders as the sell off in mid jan appears quite severe.

A favourable recommendation from D & D I think.

Now all this speculation (of which I am a part) seems to be pushing it along, nothing has changed.

Mate

I would like to see what D & D says about it now. the irony is D & D , SCI and all of those people in that group always project high fliers and suddenly show lack of interest when their recommendation get flogged.

 

[mr. jeff]

Re: STB - South Boulder Mines

Yes this is a strange way to give comfort to the people who blindly follow their tips. A big concern, the report is dangerous as the volatility that comes to a stock when it is tipped is major and often creates very unpredictable trading patterns as people run scared after swarming in and vice versa, whilst there are probably a few larger players that just eat them for breakfast. I believe you could make a profit just from working over these subscribers if you had the holdings.

Back to STB and although I have not been watching much lately, the sell off has been significant and ongoing. This sort of stock even with the grades and resources has nothing without some cash coming in, in this confused economic climate at least. I notice ELM has followed a similar path, so perhaps for now potash is not the flavour of the month.

 

[Miner]

Re: STB - South Boulder Mines

Yes this is a strange way to give comfort to the people who blindly follow their tips. A big concern, the report is dangerous as the volatility that comes to a stock when it is tipped is major and often creates very unpredictable trading patterns as people run scared after swarming in and vice versa, whilst there are probably a few larger players that just eat them for breakfast. I believe you could make a profit just from working over these subscribers if you had the holdings.

Back to STB and although I have not been watching much lately, the sell off has been significant and ongoing. This sort of stock even with the grades and resources has nothing without some cash coming in, in this confused economic climate at least. I notice ELM has followed a similar path, so perhaps for now potash is not the flavour of the month.

Thanks Mr Jeff.

Regarding potash not being favour - don't know. Probably temporary reaction as big dollars are going towards gold and other stocks considering the melt down started in Europe and more water could percolate from Euro Zone by the end of this year .

However (I do not hold STB or MAK or ELM) I believe people need to eat to survive. So they need food and hence potash and other fertilisers all the more.

Canadian government did not allow BHPB so the later went to buy its own potash plant. In Vancouver BHPB is quietly undertaking a big engineering project through SNC Lavalin for its potash operation. Question : If I believe BHPB is astute enough (often they were wrong however with big capital - Ravensthorpe, Port Hedlands etc) , why would they put their money on potash ? I personally believe Potash will come back in a big way. Probably that will benefit ultimately STB, ELM , MAK and likes.

I am no expert in any thing - So just my wishful thoughts.

 

[mr. jeff]

Re: STB - South Boulder Mines

Miner,

I agree with the driving forces underlying potash for food production, and the likelihood that it will see renewed interest in the future; but as far as the stock market / trading world goes, it's not as hot as it was previously (as much isn't).

Worth keeping a close eye on them though - as the 3 you have named, perhaps plus AGR and TRH, could offer great entries in the next year when the markets have finished whatever it is that is happening and decent speculation returns! I guess that development of a large operation also needs to raise cash after drilling, BFS etc. and that would be more difficult when things are tight in the money arena.

So perhaps a watch and wait type situation at present, until the world suddenly realises it is getting short of food again.

Have a good weekend!

 

[Miner]

Re: STB - South Boulder Mines

Miner,

I agree with the driving forces underlying potash for food production, and the likelihood that it will see renewed interest in the future; but as far as the stock market / trading world goes, it's not as hot as it was previously (as much isn't).

Worth keeping a close eye on them though - as the 3 you have named, perhaps plus AGR and TRH, could offer great entries in the next year when the markets have finished whatever it is that is happening and decent speculation returns! I guess that development of a large operation also needs to raise cash after drilling, BFS etc. and that would be more difficult when things are tight in the money arena.


So perhaps a watch and wait type situation at present, until the world suddenly realises it is getting short of food again.

Have a good weekend!

Thanks

 

[skc]

Re: STB - South Boulder Mines

How desperate are these guys for cash? The just cancelled a 1-for-10 cap raising at $1.10 and changed it to 1-for-5 at 55c

The excuse was that the $1.10 price doesn't provide incentive to shareholders to participate.

Thanks... share price just fell another 25%. If there was ever a great way to incentivise your holders.

And these guys were $6 in March this year.

 

[Iggy_Pop]

Re: STB - South Boulder Mines

In some ways the 1 for 5 at 55c and the 1 for 10 at $1.10 are similar as the 1 for 10 also had an option attached for $1.80. So if the price was over 1.80 in 12 months, the share holder who participated got a 1 for 5 but paid a bit more for the share and option. The second option of the 1 for 5 at 55c has worked as the money is needed. While the share price has been turbulent, it is up 50% this month closing at 1.35 today. The 1 for 5 is likely to be close to 100% take up. The share price has recovered. Still a high risk investment but I have bought a few more while the price has been down.

Good luck to all shareholders

 

[Iggy_Pop]

Re: STB - South Boulder Mines

Its been a while but maybe something is happening up 22% today, but we have lost a bit with the share price sitting at 22c. The challenge with sovereign risk

 

[investitback]

Re: STB - South Boulder Mines

Yes, I've been looking at South Boulder Mines as a mid to long term prospect. I think they are situated in a great location from trading perspective and could benefit from this greatly. They seem to have some low cost potash too.

 

[System]

On June 3rd, 2015, South Boulder Mines Limited (STB) changed its name and ASX code to Danakali Limited (DNK).

 

[Iggy_Pop]

Danakali Limited (ASX: DNK) is focused on the development of the Colluli Potash Project (Colluli or the Project). The Project is located in the Danakil Depression region of Eritrea, East Africa and is 100% owned by the Colluli Mining Share Company (CMSC). CMSC is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO).

Since drilling commenced at Colluli in early 2010, over 1 billion tonnes of high grade potassium bearing salts suitable for the production of potash have been identified. The potassium bearing salts of the Danakil Depression have the unique capability of producing a diverse range of potash types including muriate of potash (MOP or potassium chloride), sulphate of potash (SOP or potassium sulphate), and sulphate of potash magnesia (SOP-M or potassium magnesium sulphate).

Sulphate of potash is a highly valued, chloride free, premium potash fertiliser that has limited primary production facilities globally. SOP contains both potassium and sulphur, which are essential crop nutrients.

Following the positive outcomes of a prefeasibility study (PFS) for the production of sulphate of potash (SOP) in February 2015 and a definitive feasibility study (DFS) that was completed in November 2015, a front-end engineering design (FEED) study was completed in January 2018 for a modular SOP development.

• Module I is expected to produce 472ktpa of premium SOP product; and
• Module II, commencing production in year 6 of the Project, will increase total SOP production to 944ktpa

Colluli meets the criteria for a Tier 1 project:

• Industry leading capital intensity;
• Forecast first quartile operating costs;
• Proximity to coast and global markets;
• Outstanding grade; and
• Exceptionally long mine life (approximately 200 years).

Colluli is the shallowest evaporite deposit in the world, with mineralisation starting at just 16m, allowing open-cut mining.

Colluli is the only SOP resource that allows extraction of potassium salts in solid form. Primary production of SOP typically comes from potassium rich brines, which require considerable evaporation.

Extracting the salts in solid form provides superior economic outcomes: it enables the salts to be processed immediately, significantly reducing the time between mining and revenue generation; and it reduces the evaporation pond footprint contributing to a lower capital intensity.

The processing method to be utilised at Colluli is the most commonly used, low cost process for production of SOP. Colluli salt composition is ideal for low energy, high yield conversion to SOP at ambient temperatures.

Colluli is the closest SOP deposit to a coastline, only 75km from the Red Sea coast.

Colluli is 230km from the established port of Massawa. The port of Massawa is equipped with bulk and container loading facilities.

A Mining Agreement was entered into with the Eritrean Ministry of Energy and Mines in February 2017; and subsequently seven Mining Licenses were awarded.

Colluli is expected to provide an outstanding economic, social and community dividend. Positive impacts through infrastructure, job creation, taxes, royalties, and associated economic development. Creation of hundreds of permanent jobs for Eritrean nationals. Long term training for trades and professionals.

Danakali is focused on offtake, funding and project execution in 2018

Workstream Expected 2018 milestones
Offtake Progress negotiations to final binding offtake
agreements
EPCM Final negotiations with shortlisted bidders
Mining Final negotiations with shortlisted bidders
Power Final negotiations with Inglett and Stubbs International (preferred power provider)
Equity Dual listing on the London Stock Exchange
Debt Finalise arrangements with commercial lenders

http://www.danakali.com.au/

Iggy

 

[Iggy_Pop]

Listed on the London Stock Exchange this month which gave a bit of a boost to the share price. Also this month Eritrea and Ethiopia are talking again after 20 years, which is another positive for DNK.

Iggy

 

[barney]

Listed on the London Stock Exchange this month which gave a bit of a boost to the share price. Also this month Eritrea and Ethiopia are talking again after 20 years, which is another positive for DNK.View attachment 88613

Iggy

Healthy looking Chart as well after a long consolidation period

 

[Iggy_Pop]

Extract from Bloomberg https://www.bloomberg.com/news/arti...ort-as-ethiopia-rapprochement-spurs-investors


Eritrea Mulls Port as Ethiopia Rapprochement Spurs Investors
By
Nizar Manek
August 23, 2018, 2:00 PM GMT+10 Updated on August 23, 2018, 9:29 PM GMT+10

• Harbor could be used to ferry fertilizer exports from new mine
• Construction of potash mine may start later this year

In this article
Eritrea is considering building a port on its Red Sea coastline to export potash from deposits being developed in the Horn of Africa nation, a mines ministry official said.

Plans for the harbor signal the country’s reemergence as a potential investor destination after its surprise rapprochement with neighboring Ethiopia last month ended two decades of political tensions. The facility could be used to ship potash from Ethiopia and adds to a series of port developments in the strategically located region by nations including Djibouti, Somalia, Sudan and the self-declared Republic of Somaliland.

Alem Kibreab
Photographer: Nizar Manek/Bloomberg
The port would be situated at the Bay of Anfile, 75 kilometers (47 miles) east of the 1.2 billion-metric-ton Colluli potash deposit, Alem Kibreab, director-general of mines in the Ministry of Energy and Mines, said in an interview in the capital, Asmara. A feasibility study is under way to decide on the specific site, with the start of construction envisaged about five years after a mine starts operating there, he said.

“To begin, the company has to make money,” Alem said.

High Grade
Danakali Ltd. of Australia and the state-owned Eritrean National Mining Co. Colluli contains deposits of high-grade fertilizers suitable for use on fruit and coffee trees and vegetables, according to Danakali’s website. It’s situated in the Danakil Depression, a geological area that stretches into Ethiopia and is regarded as an “emerging potash province,” the company said.

Danakali expects construction of the $320 million mine to start later this year, Chairman Seamus Cornelius said by phone from London. The company is engaging bankers to secure funding for construction of the mine, he said.

“Those discussions have accelerated” following the recent rapprochement between Eritrea and Ethiopia, he said. “With the rapid changes and the rapid improvement in the geopolitical situation, things we weren’t thinking were possible in the past are now possible.”

Eritrea gained independence from Ethiopia a quarter of a century ago. The two countries had been at odds since a 1998-2000 war that claimed as many as 100,000 lives and have each harbored rebels hostile to their neighbor. Last month, they agreed to implement a long-delayed peace agreement that ended the conflict.

Existing Port
Construction of the mine is expected to take about two years, before the start of production that will eventually rise to 472,000 tons per year, Cornelius said. Output initially will be shipped from the existing Eritrean port of Massawa, which has sufficient capacity to handle the mine’s exports but is further away than Anfile, he said.

Alem said Anfile could be used by potash projects being developed in Ethiopia as an export route, instead of Djibouti, which is farther away. Oslo-based Yara International ASA plans to establish a $700 million potash plant near the Eritrean border, while British Virgin Islands-registered Circum Minerals Potash Ltd. has a mining license there covering 365 square kilometers (141 square miles).

Reopening an Ethiopian road network to Massawa and development programs along the border are priorities for Ethiopia’s government, Eritrean state media reported on July 11, citing Ethiopian Information Minister Ahmed Shide. In 2015, the government adopted a logistics strategy to use multiple regional ports to improve external trade.

Djiboutian ports authority Chairman Aboubaker Omar Hadi said the country’s Chinese-built Tadjourah port is expected to start potash exports by the start of 2020 and is in talks with exporters like Yara. A 128-kilometer road linking the port to the Ethiopian border is scheduled to open in January, he said.

“It’s a no-brainer that if you could have a port there and potash on the Ethiopian side, obviously you will choose that port,” Alem said. “Before the peace came, that was an impossibility.”


Iggy

 

[Iggy_Pop]

During September DNK confirmed DRA Global as preferred EPCM contractor for Colluli
• CMSC has confirmed DRA as the preferred EPCM contractor for Colluli
• DRA is a high quality multi-disciplinary global Project Management and Engineering group with strong African experience and EPCM delivery capability
• Critical project execution milestone
• The EPCM contract is a requirement of potential debt providers Danakali Limited (ASX: DNK, LSE: DNK) (Danakali, or the Company) on behalf of the Colluli Mining Share Company (CMSC), is pleased to advise that DRA Global (DRA) has been confirmed as the preferred Engineering, Procurement, Construction & Management (EPCM) provider for the Colluli Potash Project (Colluli, or the Project), subject to completion of detailed contract terms. The confirmation of DRA as preferred EPCM contractor for Colluli represents another critical milestone for the Project, reinforcing that Colluli is execution ready. DRA will be responsible for all aspects of design, project management, procurement, construction management and supervision as well as commissioning of the complete process plant and associated infrastructure, including provision of all temporary construction facilities. DRA will also be responsible for awarding major contracts such as early works, earthworks, structural, mechanical, piping, electrical and instrumentation works, laboratory and permanent camp (including life support, freight and logistics).

http://www.danakali.com.au/images/s...lobal_confirmed_preferred_EPCM_contractor.pdf

Iggy

 

[Iggy_Pop]

Supportive major shareholders and high levels of Board and Senior Management ownership
• Strong share price performance during the Colluli study phase – increase of >290% since Jan-15
• Commenced trading on the LSE on 24 July 2018
• Supportive major shareholders including Well Efficient (13.2%), J.P. Morgan Asset Management (7.6%) and Capital Group (6.3%)
• Board and Senior Management holds over 5%

Extract from Bell Potters Emerging Leaders 2018
http://www.danakali.com.au/images/s...20181025_BellPotter_Emerging_Leaders_2018.pdf

Iggy

 

[Iggy_Pop]

The United Nations lifted almost decade-old sanctions on Eritrea, potentially boosting the once-isolated Red Sea nation’s economy as it rebuilds relations with giant neighbor and long-time foe Ethiopia.

The UN Security Council’s move ends restrictions first imposed in 2009 on accusations Eritrea backed armed groups including al-Shabaab in Somalia. Eritrea has long decried the claims as baseless and politically motivated, while UN investigators said they’ve found no evidence of support for the Somali al-Qaeda affiliate over the past five years.

“The government of Eritrea welcomes this belated decision to redress injustice, almost a decade after nefarious acts were taken inculcating indefensible harm on the country,” the Information Ministry said Wednesday on Twitter, shortly after the announcement. The Security Council voted unanimously to remove the arms embargo, travel bans, asset freezes and other targeted sanctions.

The step could help Eritrea, which a government survey says is home to 3.2 million people, unlock opportunities for its mainly agrarian economy where few foreign companies operate and that’s mostly isolated from the international banking system. The one-party state, roughly the size of Pennsylvania, enacts mandatory conscription for adults and in recent years has been a major source of migrants fleeing to neighboring nations and Europe.

‘Season for Peace’

Eritrea in July signed a peace accord with Ethiopia, ending a stalemate following a 1998-2000 war that claimed as many as 100,000 lives, and Ethiopian rebels hosted by Eritrea’s government have returned home. As it rebuilds relations with Somalia and neighboring Djibouti, President Isaias Afwerki, who’s ruled since independence from Ethiopia in 1993, has hailed a “season for peace” in the Horn of Africa region.
The office of Ethiopian Prime Minister Abiy Ahmed congratulated Eritrea on “a significant step towards deepening the economic, social, and cultural ties the sisterly nations of Ethiopia and Eritrea enjoy.”

The UN resolution urged Eritrea and Djibouti to discuss the issue of Djiboutian combatants missing in action after border clashes between the two countries in 2008 and to continue efforts to settle the boundary dispute peacefully.

UN investigators this year reported they’d found no further details regarding the Djiboutian soldiers’ fates or whereabouts. They also said that a military base in Eritrea used by the United Arab Emirates contravenes the arms embargo. Even as it said it was turning “the page of this dark chapter,” Eritrea’s Information Ministry criticized what it described as the country’s needless victimization.

“The UNSC shoulders a responsibility of effecting amends to the wrongs done; above and beyond the lifting of the sanctions,” it said, without specifying what that would entail. “The government and people of Eritrea will not thus abandon their efforts for truth and justice with the mere lifting of the sanctions.”

https://www.bloomberg.com/news/arti...ld-sanctions-on-eritrea-as-leaders-tout-peace

Iggy

 

[Iggy_Pop]

ASX announcement for DNK, Thursday 6th December 2018.

US$200m debt finance mandate executed
Debt finance mandate executed following signing of US$200M term sheet
African development financial institutions Afreximbank and AFC will act as Mandated Lead Arrangers Danakali Limited (ASX: DNK, LSE: DNK) (Danakali or the Company) is pleased to announce that the Colluli Mining Share Company (CMSC) has executed a mandate to provide fully underwritten debt finance facilities of US$200M to fund the construction and development of the Colluli Potash Project (Colluli or the Project) in Eritrea, East Africa (Mandate). African development financial institutions (DFIs) African Export-Import Bank (Afreximbank) and Africa Finance Corporation (AFC) will act as the Mandated Lead Arrangers. The Mandate follows the signing of a US$200M non-binding indicative term sheet (Term Sheet). The execution of the Mandate is a critical project financing and execution milestone. Afreximbank and AFC are highly reputable African DFIs with extensive experience in providing project financing to African projects across the continent and were chosen as Mandated Lead Arrangers due to their extensive African project finance experience and the strength of their investor reach. In 2017 Afreximbank was lead / co-lead arranger on 11 syndicated debt transactions totalling over US$3Bn. In the same period AFC was mandated on over US$1Bn of transactions. Once the remaining aspects of due diligence are finalised and preconditions satisfied the Mandated Lead Arrangers will proceed to credit approval and execution of the syndicated loan facility with CMSC (Facility). Drawdown will follow after satisfaction of the conditions precedent to be agreed in the Facility. See Appendix A for a Colluli debt funding process overview. Chief Financial Officer of Danakali, Stuart Tarrant said: “The execution of the Mandate represents a significant milestone for the Colluli project funding. We are very pleased to be partnering with strong, experienced African financial institutions. Initial bank due diligence and subsequent negotiations have significantly advanced the project financing process and built on the finalisation of the binding offtake agreement with EuroChem placing CMSC in strong position to advance the Colluli Project .” Endeavour Financial is acting as debt financial adviser to Danakali and CMSC.

Iggy

 

[Iggy_Pop]

Danakali near-financing a positive sign for 'shovel ready' Eritrean potash project
09:16 18 Jan 2019
The company’s share price gained on the London exchange this week.

OVERVIEW: DNKTHE BIGPICTURE
Colluli is about 75 kilometres from Eritrea’s eastern Red Sea coast


Danakali Ltd (ASXNK) (LONNK) (OTCMKTS:SBMSF) has powered up its ambitions to construct and develop the Colluli Potash Project in Eritrea with a US$200 million syndicated loan facility.

The fully-underwritten loan facility led by African development financial institutions (DFIs) African Export-Import Bank and Africa Finance Corporation has a series of milestones Danakali must satisfy to qualify.

WATCH: Danakali ‘shovel-ready’ at Colluli after execution of US$200m debt finance mandate
Colluli has a massive ore reserve estimate of 1.1 billion tonnes grading 10.5% potassium oxide for 203 million tonnes of contained sulphate of potash equivalent.

Front end engineering design (FEED) has confirmed a post-tax net present value of US$902 million and post-tax internal rate of return (IRR) of 29.9% for the project.

Danakali secured its funding mandate for the project from the two African financiers in December 2018, with the company declaring the agreement a ‘significant milestone.’

Executive chairman Seamus Cornelius reported: “The execution of the mandate represents a significant milestone for the Colluli project funding.

“We are very pleased to be partnering with strong, experienced African financial institutions.”



Cornelius told Proactive Investors’ Stocktube video channel it was a major positive step to recruit the major African institutions for a wider project team to advance Colluli.

He said: “This is major African institutions joining us, joining our existing partners at ENAMCO (Eritrean National Mining Corporation), joining EuroChem, our offtake partners.

“A project like this, it needs a team. It needs a team inside Danakali, but it needs a team of partners to give it the best possible outcome, and that’s what we’ve got now.”

Colluli is 100% owned by the Colluli Mining Share Company (CMSC), a 50:50 joint venture between Danakali and ENAMCO.

CSMC has a binding offtake agreement with EuroChem for up to 100% (minimum 87%) of module I sulphate of potash (SOP) production from Colluli.

A number of debt milestones remain for the company that is focused on development of its asset in a country now at peace with its neighbour, Ethiopia.

Cornelius told Proactive Investors the company was at an exciting phase.

“Where we are in terms of the project, is we are shovel-ready.

“As soon as we secure the full funding we will start construction — the construction will take two years and then we’ll be in production [in] 2021.”

A changed environment
The UN lifted sanctions on Eritrea in November, changing the country’s investment environment.

Cornelius said: “Lifting of the sanctions is unquestionably a very positive thing.

“The sanctions were never specifically impacting us but as you can imagine, the general atmosphere was negatively affected by the fact of the sanctions.”

Colluli quality
The executive chairman outlined the features of the Eritrean asset Colluli in his Stocktube interview.

Cornelius said: “Colluli is a potassium asset, it’s in the Danakil Depression which is a giant, natural geological feature.

“Colluli is a very shallow potassium deposit very close to the coast.”

The deposit is amenable to simple, low-cost open-cut mining with a progressive working face to provide simultaneous access to each mineralised layer.

It has been declared the shallowest evaporite deposit in the world, with mineralisation starting at just 16 metres, allowing open-cut mining.

Cornelius also spoke about the proposed mine and ore gradings, saying “Once (the mine) opens up at the very beginning, we’ll be producing 472,000 tonnes of potassium sulphate, which is a particular kind of potash.

“It is the high-value, high-grade kind that is inshort supply, so we’re very happy with that.”

Milestone focus
Danakali’s remaining debt milestones include finalising contracts with a number of parties, including the company’s preferred engineering, procurement, construction and management (EPCM) provider DRA Global.

Danakali also needs to finalise contracts with EPC solutions provider Inglett & Stubbs International, and its preferred mining contractor.

Other commitments are to follow, including final credit approval from financiers, executive of facility agreement documents and closing of the financial deal after the conditions precedent are met.

Investor backing
Danakali has a market capitalisation of $187.7 million, having 264,422,398 ordinary shares on issue on December 21, 2018.

The company had $11.8 million cash on hand at the end of the September 2018 financial quarter after spending $1.3 million on operating expenses in the period and $1.3 million on investing activities.

Estimated outflows for the December 2018 quarter were $2.8 million, Danakali reported on October 30, 2018.

https://www.proactiveinvestors.com....el-ready--eritrean-potash-project-212745.html

Iggy

 

[Iggy_Pop]

New CEO for Danakali looks promising (https://www.danakali.com.au)

Highly experienced industry executive appointed as new Danakali CEO
• Highly experienced industry executive, Niels Wage, has been appointed as CEO after an extensive global search
• Mr. Wage previously held a number of senior management roles at BHP, including Vice President Potash and Vice President Freight, and has been CCO of Danakali since June 2018
• The appointment of Mr. Wage, with his considerable leadership and operational credentials, is timely as Danakali finalises project funding and commences project execution Danakali Limited (ASX: DNK, LSE: DNK) (Danakali or the Company) is pleased to advise that Mr. Niels Wage has been appointed as Chief Executive Officer (CEO) of the Company. The appointment is effective immediately. The Company undertook a thorough global search for potential CEO candidates. Mr. Wage won the role due to his extensive and relevant industry experience, clear leadership capabilities, and passion for the Colluli Potash Project (Colluli or the Project) and Eritrea. Mr. Wage has significant potash, trading and logistics experience. Prior to joining Danakali he held a number of senior management roles at BHP, including Vice President Potash, Vice President Freight and Vice President Diamonds. At BHP he was also responsible for marketing, sales and supply chain for the Jansen Potash Project. Before BHP Mr. Wage worked in trading and logistics for Cargill and Vopak. He has also held a series of directorships including joint ventures between Japanese firms K-line, Daiichi and JFE Steel and BHP, the International Plant Nutrition Institute and RightShip. He holds a Master’s Degree in Business Economics from the University of Amsterdam and has completed the International Directors Programme at global business school INSEAD. Mr. Wage joined Danakali in June 2018 as Chief Commercial Officer (CCO). As CCO, Mr. Wage assisted the Company to build and maintain industry relationships including interacting with the Colluli Mining Share Company’s (CMSC) offtake partner, EuroChem Group. He has also been involved in investigating the multicommodity and logistics optimisation potential of the Project, further developing CMSC’s product sales strategy, advancing Danakali and CMSC’s social and environmental agenda, and supporting funding, project execution and operations readiness processes. Executive Chairman Seamus Cornelius said: “The Danakali Board is very pleased to confirm Niels as the Company’s new CEO. The confirmation follows an extensive global search for the right leader for the Company’s current stage, upcoming milestones and longer term strategy, and we are very confident we have found that with Niels. In his time at the Company he has already added significant value, utilising his wealth of experience and skills in leadership, mining, fertiliser, sales, marketing and supply-chain management. Niels starts as CEO at a very exciting and critical time for Danakali with project funding well progressed and project execution set to commence. I wish him the best of luck and know he will be supported ably by the rest of the Company’s employees and the Danakali Board.” Incoming Danakali CEO Niels Wage said: “I am honoured to be asked by the Danakali Board to serve as CEO at this particularly exciting stage, as the Company advances towards construction and production at Colluli. The recent achievements of the Company including the industry-first binding take or pay offtake agreement with Danakali Limited Level 11, 125 St George’s Terrace, Perth WA 6000 Tel: +61 8 6189 8635 / ABN 56 097 904 302 Page 2 of 5 EuroChem, a US$200M mandate and term sheet executed with leading African Development Finance Institutions AFC and Afreximbank and admittance to trading on the London Stock Exchange Main Market provide an excellent platform for the Company’s further funding and project execution success. I look forward to building value for shareholders by working closely with the Danakali team, joint venture partners ENAMCO and other stakeholders to move rapidly towards production from Colluli. I am privileged to be able to contribute to a unique project that has the potential to positively change the lives of people in Eritrea and across the region while helping to deliver the substantial and environmentally sound increases in global food supply required in the coming decades.”

Iggy