EX-99.3

Inferred Resource

millions of tonnes

Indicated Resource

millions of tonnes

Measured Resource

millions of tonnes

Total B Zone Resource

millions of tonnes

EX-99.3 4 d16198dex993.htm EX-99.3 EX-99.3

Exhibit 99.3

NUTRIEN LTD.

LANIGAN

NATIONAL INSTRUMENT 43-101 TECHNICAL REPORT ON

LANIGAN POTASH DEPOSIT (KLSA 001 D),

SASKATCHEWAN, CANADA

FEBRUARY 20, 2025

LOGO

PREPARED BY: JODI DERKACH, P. GEO.

CRAIG FUNK, P. ENG., P. GEO.

NUTRIEN LTD.

GEOSERVICES & LAND – ENGINEERING, TECHNOLOGY & CAPITAL

SUITE 1700, 211 19^TH STREET EAST

SASKATOON, SASKATCHEWAN, CANADA

S7K 5R6

QUALIFIED PERSONS: JODI DERKACH, P. GEO. AND CRAIG FUNK, P. ENG., P. GEO.

DATE AND SIGNATURE PAGE

The scientific and technical information included in this report has been prepared under the supervision of persons who are ‘‘qualified persons’’ under Canadian National Instrument 43-101. Jodi Derkach, P. Geo. and Craig Funk, P. Eng., P. Geo. are the qualified persons who supervised the preparation of the information presented in this report and who verified the data disclosed herein.


						/s/ “Jodi Derkach”
Signature						Jodi Derkach P. Geo.
						Senior Manager, Land & Resource Nutrien Ltd.

Date						February 20, 2025


						/s/ “Craig Funk”
Signature						Craig Funk, P. Eng., P. Geo.
						Director, GeoServices & Land Nutrien Ltd.

Date						February 20, 2025

AUTHOR PAGE

The scientific and technical information included in this report has been prepared by, or under the supervision of, persons who are ‘‘qualified persons’’ under Canadian National Instrument 43-101.

Jodi Derkach, B. Sc., Cert. GIS, P. Geo. (APEGS Member # 14897)

•

Senior Manager, Land & Resource—Engineering, Technology & Capital

•

B. Sc. (Geology), University of Saskatchewan, Saskatoon, Saskatchewan, Canada, 2007

•

Geographic Information Science for Resource Management Certificate, Saskatchewan Polytechnic, Prince Albert, Saskatchewan, Canada, 2010

•

with Nutrien or its subsidiaries since 2010

Craig Funk, B. Sc., M. Sc., P. Eng., P. Geo. (APEGS Member # 16034)

•

Director, GeoServices & Land—Engineering, Technology & Capital

•

B. Sc. (Geological Engineering – Geophysics), University of Saskatchewan, Saskatoon, Saskatchewan, Canada, 1989

•

M. Sc. (Geophysics), University of Saskatchewan, Saskatoon, Saskatchewan, Canada, 1992

•

with Nutrien or its subsidiaries since 2008

are the qualified persons who supervised the preparation of all information presented in this report and who verified the data disclosed herein.

The team of persons who conducted the work presented within this report consists of:

Lisa MacKenzie, Cert. GIS

•

Senior Advisor, Land—Engineering, Technology & Capital

•

Geographic Information Science for Resource Management Certificate, Saskatchewan Polytechnic, Prince Albert, Saskatchewan, Canada, 2012

•

with Nutrien or its subsidiaries since 2012

Jennifer Nicolay Lawlor, B. Sc., P. Geo. (APEGS Member # 16167)

•

Senior Advisor, Land & Resource – Engineering, Technology & Capital

•

B. Sc. (Geology), University of Regina, Regina, Saskatchewan, Canada, 2008

•

with Nutrien or its subsidiaries since 2013

The authors would like to acknowledge the many staff who provided information and expert reviews on portions of this report, as well as past contributions of former (retired) staff Terrance Danyluk and Arnfinn Prugger.

TABLE OF CONTENTS


DATE AND SIGNATURE PAGE		2

AUTHOR PAGE		3

TABLE OF CONTENTS		4

LIST OF FIGURES		6

LIST OF TABLES		7

1.0	SUMMARY	8

2.0	INTRODUCTION	10

3.0	RELIANCE ON OTHER EXPERTS	11

4.0	PROPERTY DESCRIPTION AND LOCATION	11

4.1	GENERAL	11

4.2	MINERAL RIGHTS	12

5.0	ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY	13

6.0	HISTORY	14

7.0	GEOLOGICAL SETTING AND MINERALIZATION	15

8.0	DEPOSIT TYPE	17

9.0	EXPLORATION	18

10.0	DRILLING	20

11.0	SAMPLING PREPARATION, ANALYSES AND SECURITY	23

11.1	BASIC APPROACH	23

11.2	MEAN POTASH MINERAL GRADE FROM IN-MINE SAMPLES	26

11.3	POTASH ORE DENSITY FROM IN-MINE MINERAL GRADE MEASUREMENTS	27

12.0	DATA VERIFICATION	28

12.1	ASSAY DATA	28

12.2	EXPLORATION DATA	29

13.0	MINERAL PROCESSING AND METALLURGICAL TESTING	29

14.0	MINERAL RESOURCE ESTIMATES	29

14.1	DEFINITIONS OF MINERAL RESOURCE	29

14.2	LANIGAN POTASH RESOURCE CALCULATIONS	30



15.0	MINERAL RESERVE ESTIMATES	32

15.1	DEFINITIONS OF MINERAL RESERVE	32

15.2	LANIGAN POTASH RESERVE CALCULATIONS	33

16.0	MINING METHOD	34

16.1	MINING OPERATIONS	34

16.2	RISKS TO POTASH MINING OPERATIONS, WITH EMPHASIS ON WATER INFLOWS	37

17.0	RECOVERY METHODS	38

18.0	PROJECT INFRASTRUCTURE	39

19.0	MARKET STUDIES AND CONTRACTS	39

20.0	ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT	43

21.0	CAPITAL AND OPERATING COSTS	44

22.1	FUNDAMENTALS	44

22.2	TAXES	45

23.0	ADJACENT PROPERTIES	45

24.0	OTHER RELEVANT DATA AND INFORMATION	45

25.0	INTERPRETATION AND CONCLUSIONS	46

26.0	RECOMMENDATIONS	46

27.0	REFERENCES	47

LIST OF FIGURES

Unless otherwise noted, figures for which a source and / or date are not provided are current as of the effective date of this report and were prepared by the Company.


Figure 1: Aerial photo of Lanigan surface operations, 2018			8
Figure 2: Actual finished potash products production from the Lanigan mine over the past 10 years (in million tonnes per year)			9
Figure 3: Map showing location of Nutrien Operations, including Lanigan			11
Figure 4: Nutrien’s potash operations, including Lanigan, relative to potash mineralization (pink) in Saskatchewan			12
Figure 5: Map showing Lanigan Crown Lease KLSA 001 D (blue)			13
Figure 6: Map showing infrastructure near Lanigan. Lanigan surface operations shown as red dot			14
Figure 7: Vertical section showing basic layered-Earth stratigraphy in a typical Saskatchewan potash region			16
Figure 8: Geophysical wireline logs showing basic stratigraphy of the Prairie Evaporite Formation in the Saskatoon area			17
Figure 9: Cross-section of the Prairie Evaporite Formation across southern Saskatchewan showing relative position of potash members			18
Figure 10: Potash exploration at Lanigan including 3D seismic (purple), 2D seismic infill (orange lines), and potash drillholes (black dots)			19
Figure 11: A seismic section showing relative rock velocities and major geological units at Nutrien’s conventional potash operations			20
Figure 12: Typical stratigraphic section correlated with composite photos covering both the A Zone and B Zone production intervals			22
Figure 13: Potash assay plot for drillhole PCS Lanigan 04-28-032-23 W2 indicating the best 3.66 m (12’) mining interval for A Zone and the best 4.88 m (~16’) mining interval for B Zone			24
Figure 14: Histogram of A Zone potash ore grade from Lanigan in-mine grade samples (2007 to December 2024)			27
Figure 15: Histogram of B Zone potash ore grade from Lanigan in-mine grade samples (1999 to December 2024)			27
Figure 16: Map showing Lanigan A Zone and B Zone Mineral Resource as of December 2024			32
Figure 17: Map showing Lanigan A Zone and B Zone Mineral Reserve to December 2024			34
Figure 18: Schematic cross-section through the Prairie Evaporite Formation, illustrating mining horizons at each of Nutrien’s conventional potash operations			36
Figure 19: Mined tonnes, product tonnes, and concentration ratio for the Lanigan mine over the past 10 years			37
Figure 20: Simplified flow diagram for potash flotation and crystallization milling methods used at Lanigan			38
Figure 21: Lanigan mill recovery rate over the past 10 years			39
Figure 22: Historical Company potash sales 2015 to 2024 in million tonnes / year*			40
Figure 23: Historical Company potash net sales 2015 to 2024 in million USD $ / year*			41
Figure 24: World potash production and demand for 2024			41
Figure 25: World potash shipments and consumption, 2019-2024E			42
Figure 26: Aerial photo showing the Lanigan surface operations, disposal wells, and Tailings Management Area			44
Figure 27: Historic annual average realized potash price in USD / tonne*			45

LIST OF TABLES


Table 1: Mineral Resources and Reserves for Lanigan Potash, as of December 31, 2024			10
Table 2: Assay results for all potash test holes within Lanigan Lease KLSA 001 D			23
Table 3: Values for potash assay plot in Figure 13			25
Table 4: Primary Potash Market Profile			42

EFFECTIVE DATE OF REPORT

The effective date of this report is December 31, 2024, other than where otherwise noted.

1.0

SUMMARY

Effective January 1, 2018, Potash Corporation of Saskatchewan Inc. (“PotashCorp”) and Agrium Inc. (“Agrium”) completed a court-approved plan of arrangement (the “Arrangement”), involving, among others, PotashCorp, Agrium and Nutrien Ltd. (“Nutrien”) the new parent company of PotashCorp and Agrium. As a result of completing the Arrangement, PotashCorp and Agrium are wholly owned subsidiaries of Nutrien. References to “the Company” means Nutrien, indirectly through PotashCorp, or, for references prior to the completion of the Arrangement, PotashCorp, as the context requires.

Nutrien is a leading global provider of crop inputs and services. We operate a world-class network of production, distribution and agriculture retail facilities that positions us to efficiently serve the needs of farmers.

Nutrien is a corporation organized under the Canada Business Corporations Act, the common shares of which are listed and publicly traded on the Toronto and New York stock exchanges (symbol NTR).

The Company owns and operates a potash mine at Lanigan, Saskatchewan, Canada (“Lanigan mine” or “Lanigan”). An aerial view of the Lanigan surface operations is shown in Figure 1. The Lanigan Crown Subsurface Mineral Lease is numbered KLSA 001 D (the “Lanigan Crown Lease”) and was last amended in September 2022. Production of potash from the Lanigan mine began in 1968.

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Figure 1: Aerial photo of Lanigan surface operations, 2018.

In 2024, annual nameplate capacity for Lanigan was 3.8 million tonnes and annual operational capability was 3.0 million tonnes of finished potash products (concentrated KCl). Estimates of nameplate capacity are based on capacity as per design specifications or Canpotex entitlements once these have been determined. Operational capability is the estimated annual achievable production level at current staffing and operational readiness (estimated at beginning of year), not including any inventory-related shutdowns and unplanned downtime and may vary during the year and year-to-year including as between our potash operations.

While the term potash refers to a wide variety of potassium bearing minerals, in the Lanigan region of Saskatchewan, the predominant potash mineralization is sylvinite, which is comprised mainly of the minerals sylvite (KCl / potassium-

salt) and halite (NaCl / rock salt), with minor amounts water insolubles. Carnallite (KMgCl₃ · 6H₂O) usually occurs in minor amounts at Lanigan; areas of the B Zone where carnallite layering is sporadically present are avoided through selective mining (i.e. by identifying and avoiding cutting through these layers). Potash fertilizer is concentrated, nearly pure KCl (i.e. greater than 95% pure KCl), but ore grade is traditionally reported on a % K₂O equivalent basis. The “% K₂O equivalent” gives a standard measurement of the nutrient value of different potassium-bearing rocks and minerals. To convert from % K₂O equivalent tonnes to actual KCl tonnes, multiply by 1.58.

Virtually all Lanigan underground mining rooms are in one of two potash mineralized zones within the Patience Lake Member of the Prairie Evaporite Formation (the host evaporite salt). The potash mineralized zones are referred to as A Zone (the upper seam) and B Zone (the lower seam). The Lanigan mine is a conventional underground mining operation whereby continuous mining machines are used to excavate potash ore by the stress-relief mining method in one ore zone (the A Zone) and the long-room and pillar mining method in another ore zone (the B Zone). Currently, in any specific mining block, only one zone is mined (i.e. bi-level mining is not in practice). Continuous conveyor belts transport ore from the mining face to the bottom of the production shaft. In addition to hoisting potash ore to surface, the production shaft provides fresh air ventilation to the mine and serves as secondary egress. The Service Shaft is used for service access, and exhausting ventilation from the mine. Raw potash ore is processed and concentrated on surface and concentrated finished potash products (near-pure KCl) are sold and shipped to markets in North America and offshore.

At Lanigan, mine elevations range from approximately 940 m to 1,030 m depth below surface. These depths to potash mineralization are anticipated over most of the Lanigan lease area. Mine workings are protected from aquifers in overlying formations by salt and potash beds which overlie the mineralized zone. Conservative local extraction ratios (never exceeding 45% in any mining block) are employed at Lanigan to minimize potential detrimental effects of mining on overlying strata; this is common practice in flat-lying, tabular ore bodies overlain by water-bearing layers.

Part of the normal surface infrastructure associated with operating the potash mine in Saskatchewan includes waste disposal on the land and disposal of salt brine into deep subsurface aquifers. The Company stows salt tailings within an engineered and licensed Tailings Management Area (TMA) and operates three brine disposal wells near the surface plant of the Lanigan mine.

Since opening in 1968, 255.996 million tonnes of potash ore have been mined and hoisted at Lanigan to produce 76.014 million tonnes of finished potash products. The life-of-mine average concentration ratio (raw ore / finished potash products) is 3.37 and the overall extraction ratio over this time period is 24%. Actual production of finished potash products at Lanigan for the last 10 years is shown in Figure 2.

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Figure 2: Actual finished potash products production from the Lanigan mine over the past 10 years (in million tonnes per year).

Over the past three years (2022, 2023, 2024), actual potash production at Lanigan has totaled:

•

25.892 million tonnes of ore mined and hoisted (8.631 million tonnes per year, on average)

•

8.749 million tonnes of finished potash products produced (2.916 million tonnes per year, on average)

•

Average mill feed ore grade was 25.1% K₂O equivalent

•

Average concentration ratio (ore mined / potash produced) was 2.97

The Canadian Institute of Mining and Metallurgy and Petroleum (CIM) has defined Mineral Resources and Reserves in The CIM Definition Standards for Mineral Resources and Reserves (2014). Based on these guidelines, all mineral rights owned or leased by the Company at Lanigan Potash can be assigned to Mineral Resource categories (Inferred, Indicated, and Measured) and Mineral Reserve categories (Probable and Proven). Mineral Resources (reported as in-place tonnes) and Mineral Reserves (reported as recoverable ore tonnes) for Lanigan as of December 31, 2024 are outlined in Table 1. Mineral Resources reported are exclusive of Mineral Reserves.

Table 1: Mineral Resources and Reserves for Lanigan Potash, as of December 31, 2024.


Proven Mineral Reserve—A Zone (millions of tonnes recoverable ore)	32
Proven Mineral Reserve—B Zone (millions of tonnes recoverable ore)	63
Probable Mineral Reserve—A Zone (millions of tonnes recoverable ore)	225
Probable Mineral Reserve—B Zone (millions of tonnes recoverable ore)	140

Total Mineral Reserve (millions of tonnes recoverable ore)	460

Measured Mineral Resource—A Zone (millions of tonnes in-place)	1,223
Measured Mineral Resource—B Zone (millions of tonnes in-place)	1,351
Indicated Mineral Resource—A Zone (millions of tonnes in-place)	1,939
Indicated Mineral Resource—B Zone (millions of tonnes in-place)	2.561
Inferred Mineral Resource—A Zone (millions of tonnes in-place)	207
Inferred Mineral Resource—B Zone (millions of tonnes in-place)	273

Total Mineral Resource (millions of tonnes in-place)	7,554

Average % K₂O Grade—A Zone (from Lanigan in-mine samples)	24.7	%
Average % K₂O grade—B Zone (from Lanigan in-mine samples)	20.2	%

Years of Remaining Mine Life (A Zone)	30

Years of Remaining Mine Life (B Zone)	23

The average mineral grade of the Lanigan A Zone Mineral Resource and Mineral Reserve is estimated to be 24.7% K₂O equivalent and was determined from thousands of in-mine samples at Lanigan to the end of December 2024 (discussed further in Section 11.2). The average mineral grade of the Lanigan B Zone Mineral Resource and Mineral Reserve is estimated to be 20.2% K₂O equivalent and was determined from thousands of in-mine samples at Lanigan to the end of December 2024 (discussed further in Section 11.2).

Potash production in any given year at the Lanigan mine is a function of many variables, so actual production in any given year can vary dramatically from tonnages produced in previous years. The Mineral Reserve tonnage and historic average production are used to estimate the remaining mine life. If the average mining rate seen over the past three years (8.631 million tonnes of potash ore mined and hoisted per year) is sustained, and if Mineral Reserves remain unchanged, then Lanigan A Zone mine life is 30 years from December 31, 2024, and Lanigan B Zone mine life is 23 years from December 31, 2024.

The mining of potash is a capital-intensive business subject to the normal risks and capital expenditure requirements associated with mining operations. The production and processing of ore may be subject to delays and costs resulting from mechanical failures, physical hazards such as fires, and other hazards such as: unusual or unexpected geological conditions, significant subsidence, brine inflows and gas seepages of varying degree, and other situations associated with any potash mining operation.

2.0

INTRODUCTION

The purpose of this document is to give a formal reporting of potash Mineral Resource and Reserve for Lanigan, and to provide a description of the method used to compute Mineral Resource and Reserve tonnages. Sources of geological and geotechnical information analysed from this study include:

•

Publicly available geological maps, reports, and publications (listed in Section 27.0)

•

Data and internal reports on exploration drillholes

•

Hydrogeological analysis conducted in exploration drillholes

•

Geological studies conducted at the Lanigan mine over the past 50+ years

•

In-mine geophysical studies conducted at the Lanigan mine over the past 50+ years

•

Geotechnical studies conducted for the Lanigan mine over the past 50+ years

•

2D & 3D surface seismic exploration data

All data and reports are archived at the Nutrien corporate office in Saskatoon, the Lanigan mine site, or secure offsite commercial document storage facilities. In addition, drillhole data (well-log data, drilling reports, drill-stem test results, etc.) are archived with the Saskatchewan Ministry of Energy & Resources, Integrated Resource Information System (IRIS), and surface seismic data (shot records and stack) are archived through an offsite commercial data storage service.

All geological and geophysical data and information presented in this report were personally reviewed and inspected by qualified geoscience staff at Nutrien who are registered with the Association of Professional Engineers and Geoscientists of Saskatchewan (APEGS) under the supervision of Jodi Derkach, P. Geo. and Craig Funk, P. Eng., P. Geo. Jodi Derkach and Craig Funk last visited Lanigan on July 22, 2024. All reserve and resource estimates and mineral rights data presented in this report were personally evaluated and reviewed by the authors of this report. Each of these staff collaborates with Lanigan personnel multiple times per year.

The authors would like to acknowledge the many staff who provided information and expert reviews on portions of this report.

3.0

RELIANCE ON OTHER EXPERTS

Responsibility for the accuracy of the technical data presented in this report is assumed by the authors. Outside experts were not used in the preparation of this report.

4.0

PROPERTY DESCRIPTION AND LOCATION

4.1

GENERAL

The Lanigan mine is located in central Saskatchewan, approximately 100 km east of the city of Saskatoon, Saskatchewan. The general location is shown on the map in Figure 3.

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Figure 3: Map showing location of Nutrien Operations, including Lanigan.

The Legal Description (Saskatchewan Township / Range) of the Lanigan surface operation is Section 28 Township 33 Range 23 West of 2^nd Meridian. More precisely, the Lanigan Shaft #2 collar is located at:

•

Latitude: 51 degrees 51 minutes 20.48 seconds North

•

Longitude: 105 degrees 12 minutes 34.79 seconds West

•

Elevation: 535.34 metres above mean Sea Level (SL)

•

Easting: 485,560.306m

•

Northing: 5,745,008.726m

•

Projection: UTM

•

Datum: NAD83

•

Zone: 13

The Company owns approximately 3,980 hectares (9,836 acres) of surface rights required for current Lanigan mine operations, including areas covered by the existing surface plant and TMA, and surface lands required for anticipated future Lanigan mine and expanded milling operations.

All permits and approvals required for the operation of a potash mine in Saskatchewan are in place at Lanigan.

Figure 4 is a more detailed map showing the location of Lanigan potash deposits in Saskatchewan (modified from Yang, 2009).

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Figure 4: Nutrien’s potash operations, including Lanigan, relative to potash mineralization (pink) in Saskatchewan.

4.2

MINERAL RIGHTS

Mineral rights at Lanigan are mined pursuant to subsurface mineral leases with the Province of Saskatchewan, Canada (the Crown), and with non-Crown (Freehold) mineral rights owners. Crown mineral rights are governed by The Subsurface Mineral Tenure Regulations, 2015, and Crown Leases are approved and issued by the Saskatchewan Ministry of Energy & Resources.

The original Lanigan Crown Subsurface Mineral Lease, numbered KL 100, was made effective in March 1964. In the following years various amendments were made whereby certain lands were added, removed, or transferred between Company dispositions for realized synergies between mining operations. The last amendment was executed in September 2022, and resulted in Crown Subsurface Mineral Lease KLSA 001 D (the “Lanigan Crown Lease” or simply “KLSA 001 D”).

KLSA 001 D covers an area of approximately 63,022 hectares (155,732 acres), as shown in Figure 5. At Lanigan, the Company has leased potash mineral rights for 42,930 hectares (106,082 acres) of Crown Land and owns or has leased approximately 19,522 hectares (48,240 acres) of Freehold Land within the lease boundary. The Lanigan Crown Lease term is for a period of 21 years and is renewable in accordance with The Subsurface Mineral Tenure Regulations, 2015 for successive 21-year periods. Freehold Lands also remain under lease providing, generally, that production is continuing and that there is a continuation of the Crown Lease.

Within the Lanigan Crown Lease area, 55,950 hectares (138,256 acres) are mined pursuant to unitization agreements with mineral rights holders (Crown and Freehold) within two unitized areas.

When underground workings of a potash mine are designed, there are inevitably regions that are mined with higher mining extraction (e.g. production panels) and other regions where mining extraction is lower (e.g. conveyor-belt development rooms). To treat mineral rights holders in both low extraction and high extraction areas fairly, and to promote good mining practices, a unitization agreement is the preferred method for determining mined potash allocation (on paper, for accounting purposes) and the resulting pro rata royalty. Under a unitization agreement, each mineral rights holder is paid a royalty based on their proportional share of the entire unit area regardless of whether their lands are mined. For example, if one mineral rights holder owns rights to 4,000 hectares within a 40,000-hectare unit area, they would be paid 10% of the total royalty payout from that unit area.

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Figure 5: Map showing Lanigan Crown Lease KLSA 001 D (blue).

5.0

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

The Lanigan mine surface facilities are accessed by an existing paved road that is part of the Saskatchewan Provincial

Highway System. All potash product is shipped by rail over existing track. The location of Lanigan Potash with respect to the features described in this section (major road and rail infrastructure, as well as nearby river systems) is shown in Figure 6.

The Lanigan mine is served by a number of villages within 50 km of the mine site. The nearest cities are Humboldt (approximately 45 km north of Lanigan) and Saskatoon (approximately 100 km west of Lanigan).

Lanigan is situated near the northern extent of the Great Plains of North America. Topography is relatively flat, with gently rolling hills and occasional valleys. There are no rivers or other major watercourse channels near the Lanigan mine site. Climate at the Lanigan mine is typical for an inland prairie location at latitude 52º North (often characterized as “mid-latitude steppe” climate).

Part of the normal surface infrastructure associated with operating the potash mine in Saskatchewan includes waste disposal on the land and disposal of salt brine into deep subsurface aquifers. Facilities to carry out all aspects of these tasks are in place at Lanigan (see Section 20.0).

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Figure 6: Map showing infrastructure near Lanigan. Lanigan surface operations shown as red dot.

6.0

HISTORY

Ten potash mines were brought into production in Saskatchewan between 1962 and 1970. Until 2017, no new mine had been commissioned following the original ten. Most current potash production comes from conventional underground mines, while just three operate using solution mining methods. Generally, potash mines have contracted or expanded production over the years in response to the demand for potash.

Exploration drilling for potash in the Lanigan area was carried out in the 1950s and 1960s. The Lanigan mine was built by a company named Alwinsal Potash of Canada Ltd., a consortium of German and French mining and fertilizer companies in the 1960s. Potash production began at Lanigan in 1968 and the mine has run on a continuous basis since then other than short-term shutdowns taken for inventory management purposes, occasional plant maintenance and construction work, or other outages that are typical for operations of this nature.

PotashCorp acquired the Lanigan mine in 1976.

Effective January 1, 2018, PotashCorp and Agrium completed the Arrangement. As a result of completing the Arrangement, PotashCorp and Agrium are wholly owned subsidiaries of Nutrien.

Both flotation and crystallization methods are used at Lanigan to produce potash products for agricultural application. Mill rehabilitation, mine expansion and hoist improvement projects were completed at Lanigan between 2005 and 2010. The expansion construction was carried out without significant disruption to existing potash production from the site. The annual nameplate capacity at Lanigan as of December 31, 2024, is 3.8 million tonnes.

7.0

GEOLOGICAL SETTING AND MINERALIZATION

Much of southern Saskatchewan is underlain by the Prairie Evaporite Formation, a layered sequence of salts and anhydrite which contains one of the world’s largest deposits of potash. The potash extracted from the predominantly sylvinitic ore has its main use as a fertilizer. A map showing the extent of the potash deposits in Saskatchewan is shown in Figure 4.

The 100 m to 200 m thick Prairie Evaporite Formation is overlain by between 400 and 500 m of Devonian carbonates, followed by approximately 100 m of Cretaceous sandstone, and between 400 and 500 m of Cretaceous shales and more recent Pleistocene glacial tills to surface. The Prairie Evaporite Formation is underlain by Devonian carbonates. The Phanerozoic stratigraphy of Saskatchewan is remarkable in that units are flat-lying and relatively undisturbed over very large areas. A geological section representing Saskatchewan stratigraphy is shown in Figure 7 (modified from Fuzesy, 1982). A geological section representing the Prairie Evaporite Formation stratigraphy in the Saskatoon area is shown in Figure 8 (modified from Fuzesy, 1982).

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Figure 7: Vertical section showing basic layered-Earth stratigraphy in a typical Saskatchewan potash region.

Potash mineralization in this region of Saskatchewan is predominantly sylvinite, which is comprised mainly of the minerals sylvite (KCl) and halite or rock salt (NaCl), with trace carnallite (KMgCl₃ · 6H₂O) and minor water insolubles. Potash fertilizer is concentrated, nearly pure KCl (i.e. greater than 95% pure KCl), but ore grade is traditionally reported on a % K₂O equivalent basis. The “% K₂O equivalent” gives a standard measurement of the nutrient value of different potassium-bearing rocks and minerals. To convert from % K₂O equivalent tonnes to actual KCl tonnes, multiply by 1.58.

Over the past three years (2022, 2023, 2024), the average measured potash ore grade of the mill feed at Lanigan was 25.1% K₂O equivalent. The average ore grade reported from surface drillhole intersections, all within Lanigan Subsurface Mineral Lease KLSA 001 D, is 25.4% K₂O equivalent for A Zone and 23.3% K₂O equivalent for B Zone (discussed further in Section 10.0). The average ore grade observed from thousands of in-mine samples collected to the end of December 2024 is 24.7% K₂O equivalent for A Zone and 20.2% K₂O equivalent for B Zone (discussed further in Section 11.2).

LOGO

Figure 8: Geophysical wireline logs showing basic stratigraphy of the Prairie Evaporite Formation in the Saskatoon area.

8.0

DEPOSIT TYPE

There are three mineable potash members within the Prairie Evaporite Formation of Saskatchewan. Stratigraphically highest to lowest, these members are: Patience Lake, Belle Plaine, and Esterhazy. A geological section showing potash members that occur in Saskatchewan is shown in Figure 9.

The Lanigan potash deposit lies within the Patience Lake Member of Prairie Evaporite Formation. There are two potash seams named A Zone and B Zone within this member; both the A Zone and B Zone are being mined at Lanigan. Two other potash members are present at Lanigan: the Belle Plaine Member and the lesser developed Esterhazy Member.

Lanigan potash mineralization occurs at an average of about 990 m depth below surface. Salt cover from the top of the A Zone mining horizon to overlying units is approximately 7 m thick, and salt cover from the top of the B Zone mining horizon to overlying units is approximately 14 m thick. The Lanigan mine operates as a conventional, underground potash mine.

LOGO

Figure 9: Cross-section of the Prairie Evaporite Formation across southern Saskatchewan showing relative position of potash members.

9.0

EXPLORATION

Before the Lanigan mine was established in 1968, all exploration consisted of drilling from surface and analysis of core from these drillholes; drilling results are discussed in Section 10.0. Since mining began in 1968, exploration drilling has been infrequent. Now, drilling is most often used to derisk mining. A map showing potash exploration coverage at Lanigan Potash (drillholes, 2D and 3D seismic coverage) is shown in Figure 10.

In most of southern Saskatchewan, potash mineralization is in place wherever Prairie Evaporite Formation salts exist, are flat-lying, and are undisturbed. Since the surface seismic exploration method is an excellent tool for mapping the top and bottom of Prairie Evaporite salts, this has become the main potash exploration tool in any existing Saskatchewan Subsurface (potash) Mineral Lease. Historically, 2D seismic, and now the more accurate and full coverage 3D seismic methods are used to infer continuity and extent of potash beds in flat-lying potash deposits. Seismic data are relied upon to identify collapse structures that must be avoided in the process of mine development since these structures can act as conduits for water ingress to the mine. As a result, isolation pillars or mining buffer zones are left around these anomalous features. This practice reduces the overall mining extraction ratio, but the risk of inflow to mine workings are effectively mitigated. Occasional, small-scale salt anomalies that are not mapped by seismic data do occur. When they do, they are dealt with in the normal course of mining and extraction through these areas is typically minimized. Where there is uncertainty in seismic interpretations, drilling is often used to confirm or improve refine the seismic interpretation.

Within the Lanigan Crown Lease, a total of 582 linear kilometres of 2D seismic lines, and 590 square kilometres of 3D seismic has been acquired to the end of December 2024.

LOGO

Figure 10: Potash exploration at Lanigan including 3D seismic (purple), 2D seismic infill (orange lines), and potash drillholes (black dots).

A typical seismic section from Nutrien’s conventional seismic operations is shown in Figure 11. This is a cross-section extracted from a multi-program 3D seismic volume (earliest program was 2002). The vertical scale is in metres relative to sea level (SL). The seismic section is coloured by rock velocities computed from the seismic data and represents different rock types. Note that the Prairie Evaporite (salt) is continuous. This indicates an undisturbed, flat-lying salt within which potash is likely to be found based on over 50 years of mining experience at Lanigan.

Experience has shown that the potash mining horizon is continuous when seismic data are undisturbed and flat-lying, as shown in Figure 11. It is now Nutrien’s policy to collect detailed 3D seismic data ahead of mining. Any areas recognized as seismically unusual are identified early, and mine plans are adjusted as needed.

LOGO

Figure 11: A seismic section showing relative rock velocities and major geological units at Nutrien’s conventional potash operations.

10.0

DRILLING

For the original Lanigan potash test holes drilled in the 1950s and 1960s, the primary objective was to sample potash horizons to establish basic mining parameters. The seismic method was still novel and crude at that time and as such, 2D seismic surveys were done sparingly, so the drillhole information was relied upon heavily to evaluate potash deposits. Test holes would penetrate the evaporite section with a hydrocarbon-based drilling mud (oil-based or diesel fuel) to protect the potash mineralization from dissolution. Basic geophysical well-logs were acquired, and in many cases, drill stem tests were run on the Dawson Bay Formation to help assess water-make potential of the caprock. Core samples from the targeted potash intersections were split or quartered (cut with a masonry saw), crushed and analysed to establish potash grades.

Drilling activity was limited at Lanigan during the 1970s. In 1973, a single exploration drillhole was completed, although assay results proved to be unusable. Subsequently, in 1975, a second saltwater disposal well, from which assay data were taken, was constructed.

In 1981, further exploration drilling was carried out at Lanigan as part of a mine expansion project. Five additional drillholes were completed, following similar drilling and sampling methodologies as the original 1950s and 1960s drillholes. Geophysical well-logging technology had improved and therefore the log suites collected in the 1981 drill program were of better quality than those collected previously. A 2D seismic survey had been carried out prior to the 1981 drilling program. Two of the five drillholes completed in 1981 targeted seismic (geological) anomalies as part of a seismic data verification process. The anomalies were confirmed and areas around these drillholes were excluded from mine development.

Relatively thin interbeds or seams of insoluble material, referred to as clay seams in the potash industry, are an ever-present component of the A Zone and B Zone at Lanigan. Figure 12 shows the basic stratigraphic relationships. These seams, along with the clay and other detrital minerals disseminated throughout the potash rock matrix, make up the

water insoluble portion of the ore. The same sequences of clay seams can be correlated for many kilometres across the central Saskatchewan potash mining district.

At Lanigan, a particular sequence of two clay seams marks the top of the A Zone, as illustrated in Figure 12 (modified from Robertson, 1978). A single distinct clay seam marks the top of the B Zone; this clay seam is immediately overlain by a much less consistent clay seam referred to as Shadowband at Lanigan. In 2013, Lanigan modified its cutting practices in the B Zone to improve mine roof stability. This modification involved cutting a slightly higher horizon, just above Shadowband, thus removing the hazard associated with the seam. The goal of improved mine roof stability was achieved; however, less potash and more salt is now being mined resulting in a slightly lower reported ore grade for B Zone.

Lanigan’s clay seams are illustrated in Figure 12. These seams are used to guide the vertical positioning of the mining machines in both A Zone and B Zone mining. The seams marking the top of each mining zone are maintained at the top of the mining cut to keep the mining machines “on grade”. Cutting too high above the upper seam or top marker results in ore grade dilution, as lower grade material immediately overlies each mining zone. In practice though, the top marker seam is slightly overcut (between 10 cm to 20 cm) to prevent an unstable mine roof condition from being created. Clay seams often act as planes of weakness in potash mining, and if they are undercut, materials immediately below the clay seam may separate and fall. As such, the moderate mineral grade dilution that results from the overcutting is preferable from a safety point of view.

The A Zone mining interval is fixed at 3.66 m (12’). B Zone mining machines have a fixed mining height of 2.74 m (9’). In a normal B Zone production room, ore is extracted in two lifts resulting in a mining height of approximately 4.88 m (16’). These mining heights allow for comfortable working headroom and efficient extraction of potash ore.

LOGO

Figure 12: Typical stratigraphic section correlated with composite photos covering both the A Zone and B Zone production intervals.

Drill core assay results were studied by independent consultant David S. Robertson and Associates (1976) and by Nutrien technical staff (see Section 12.1). Results are found in Table 2. The best 3.66 m (12’) mining interval in A Zone, and the best approximately 4.88 m (16’) mining interval in B Zone was determined from the assay values in each potash test well, using clay marker seams as a guide. Note that while B Zone drillhole assays were derived using interval thicknesses of between 4.07 m to 7.30 m averaging 5.08 m, a more conservative mining height of 4.88 m is used for Mineral Resource and Reserve estimates.

The original Lanigan exploration area was explored with 12 test holes spaced at intervals of 1.6 km to 3.4 km (1 – 3 miles). Assays from most of these original test holes were studied by an independent consultant. Drillholes following the original test holes were analysed by Nutrien staff and are listed in Table 2 below. Certain drillholes within KLSA 001 D were not assayed, while others intersected abnormal geology whereby a normal potash zone could not be picked given the limited data available and, therefore, the resulting % K₂O and % water insoluble content could not be evaluated with confidence. As such, these anomalous drillholes are not listed in Table 2 below. All drilling and sampling were carried out following the regulations in place at the time.

Drillhole assay data for the A Zone at Lanigan gives an estimated mean grade of 25.4% K₂O with 5.8% water insolubles. Drillhole assay data for B Zone at Lanigan gives an estimated mean grade of 23.3% K₂O with 5.8% water insolubles.

Table 2: Assay results for all potash test holes within Lanigan Lease KLSA 001 D


Location	Year Drilled	A Zone			B Zone
Location	Year Drilled	Interval (m)	% K₂O Equiv.	% Water Insol.	Interval (m)	% K₂O Equiv.	% Water Insol.
01-29-033-22 W2	1955	3.66	27.7	6	5.49	*	*
13-34-033-23 W2	1956		*	*		*	*
16-12-034-24 W2	1956		*	*	4.51	25.8	*
12-24-034-23 W2	1957	3.66	25.6	2.8	5.12	18.5	2.4
04-28-033-23 W2	1958	3.66	25.9	2.1	4.85	25.8	6.3
04-29-032-22 W2	1959		*	*		*	*
13-11-033-23 W2	1959	3.66	21.2	9.7	4.16	26.9	5.5
09-26-033-23 W2	1959	3.66	27.3	2.2	4.51	25.2	6.6
03-10-034-23 W2	1959	3.66	22.1	*	4.07	24.0	5.7
01-10-033-24 W2	1959	3.66	27.3	*	4.92	24.6	4.2
04-24-033-24 W2	1959	3.66	25.7	1.9	5.19	24.0	5
13-18-033-22 W2	1960	3.66	26.3	7.1	4.72	22.8	8.2
08-02-033-23 W2	1960	3.66	26.9	7.1	7.59	15.7	5.3
12-04-033-23 W2	1960	3.66	26.5	6.5	4.76	24.6	5.8
12-16-033-23 W2	1960	3.66	23.9	8.4	4.31	25.9	4.2
09-22-033-23 W2	1960	3.66	29.5	5.7	5.04	25.2	6.8
02-30-033-23 W2	1960		*	*		*	*
13A-30-033-23 W2	1960	3.66	25.4	8.9	7.3	14.8	3.5
01-12-033-24 W2	1960	3.66	24.7	7.3	5.02	26.6	4.8
12-04-033-23 W2	1961		*	*		*	*
08-03-033-23 W2	1973		*	*		*	*
01-20-033-23 W2	1975		*	*	5.96	22.4	5.6
04-07-033-22 W2	1981	3.66	22.8	4.2		*	*
03-26-032-23 W2	1981	3.66	20.6	6.2	4.57	18.8	7.2
04-28-032-23 W2	1981	3.66	25.7	*	4.94	25.6	6.9
16-25-033-23 W2	1981		*	*		*	*
13-25-032-24 W2	1981	3.66	25.6	6.4	4.88	24.0	6.8
11-05-033-22 W2	2020	3.66	26.6	6.7	4.62	23.5	7.0
16-11-33-22 W2	2021		*	*		25.6	8.6

Average (of usable values):		3.66	25.4	5.8	5.07	23.3	5.8

Due to the remarkably consistent mineralogy and continuity of the resource, as experienced through decades of mine production, very little potash exploration drilling has been done at Lanigan since 1961. Instead of exploration drillholes, seismic surveying has been relied upon more and more to explore ahead of mine development. Where normal Prairie Evaporite sequences are mapped in the seismic data, potash beds have unfailingly been present. Occasional, small-scale salt anomalies that are not mapped by seismic data do occur. When they do, they are dealt with in the normal course of mining and extraction through these areas is typically minimized. Anomalies associated with possible water inflow problems, which are mapped in the seismic data, are avoided.

11.0

SAMPLING PREPARATION, ANALYSES AND SECURITY

11.1

BASIC APPROACH

Exploration drilling in the Lanigan area was conducted in the 1950s and 1960s. A second phase of drilling associated with a mine expansion project occurred in 1981. Sampling and assaying of potash core samples was done using methods considered consistent with standard procedures for potash exploration at these times.

Drillhole sampling methods have remained essentially the same over the years. Potash core samples are acquired as described in earlier sections of this report. Short segments of core usually about 0.3 m (1’) in length are labeled based on visible changes in mineralization, and sometimes based on fixed intervals. Each segment of core is then split using some type of rock or masonry saw. The split portion of core is then bagged and labeled and sent to a laboratory for

chemical analysis. Historical potash samples remain stored at the Subsurface Geological Laboratory (Regina, Saskatchewan) of the Saskatchewan Ministry of Energy & Resources.

LOGO

Figure 13: Potash assay plot for drillhole PCS Lanigan 04-28-032-23 W2 indicating the best 3.66 m (12’) mining interval for A Zone and the best 4.88 m (~16’) mining interval for B Zone.

An assay plot for drillhole PCS Lanigan 04-28-032-23 W2 is shown above in Figure 13. Similar data were compiled for all historical potash test holes. In the A Zone, the best 3.66 m (12’) mining interval intersected in each drillhole, as discussed in Section 10.0, is determined from the assay values using clay seams as a guide. Likewise, the best approximately 4.88 m (16’) B Zone mining interval is determined from the assay values using clay seams as a guide. Note that while B Zone drillhole assays were derived using intervals of between 4.07 m to 7.30 m averaging 5.08 m, a more conservative mining height of 4.88 m is used for Mineral Resource and Reserve estimates. Table 3 lists the assay values plotted in Figure 13.

Table 3: Values for potash assay plot in Figure 13.

LOGO

All new drilling efforts have targeted areas of geological uncertainty. Although normal ore zone conditions may occur in the tested areas, they are not targeted specifically. For this reason, and because ore grade is known to be locally variable, assays from drilling are not relied upon for ore grade estimation. Instead, grade determined from routinely collected in-mine ore zone samples are found to be most reliable. The long-term average from in-mine tends to best represent the larger ore zone as it normalizes local variability.

Thousands of in-mine ore grade samples were collected at Lanigan to the end of December 2024 (discussed further in Section 11.2). All in-mine samples were analysed in the Lanigan mill laboratory using analysis techniques that were up-to-date for the era in which the sample was collected.

Regarding quality assurance for analytical results, the Company participates in the Canpotex Producer Sample Exchange Program using methods developed by the Saskatchewan Potash Producers Association (SPPA). The Sample Exchange Program monitors the accuracy of analytical procedures used in its labs. In the early 1970s, the SPPA initiated a round-robin Sample Exchange Program, the purpose of which was to assist the potash laboratories in developing a high level of confidence in analytical results. This program, now named the Canpotex Producer Sample Exchange Program using SPPA Methods (CPSEP), has continued up to the present. Current participants include all Canpotex member potash mine site labs, the Nutrien Pilot Plant Lab, and independent third-party surveyor labs. The CPSEP provides participants with three unknown potash samples for analysis quarterly. Results for the unknown sample analysis are correlated by an independent agency that distributes statistical analysis and a summary report to all participants. Completed exchange program samples can be used for control standards as required in QA/QC sections of standard analytical procedures.

The Nutrien Pilot Plant is secured in the same way as modern office buildings are secured. Authorized personnel have access and visitors are accompanied by staff. No special security measures are taken beyond that. Currently, no external laboratory certification is held by the Nutrien Pilot Plant. On occasion, product quality check samples are sent to the Saskatchewan Research Council (SRC), a fully certified analytical facility.

In the opinion of the authors, the sample preparation, security, and analytical procedures are acceptable, are consistent with industry-standard practices, and are adequate for Mineral Resource and Reserve estimation purposes.

11.2

MEAN POTASH MINERAL GRADE FROM IN-MINE SAMPLES

In the Lanigan A Zone, in-mine grade samples are taken by collecting fine “muck” from the floor of the mine (i.e. grab sampling) at the start of every cutting sequence. This is equivalent to a sample taken approximately every 23 m (76’) in production panels, and a sample taken approximately every 47 m (155’) in development panels. Since mining began in the A Zone in 2007 through to the end of December 2024, a total of 5,518 in-mine potash mineral grade samples were collected from the Lanigan A Zone. All samples were analysed in the Lanigan mill laboratory using up-to-date analysis techniques. Figure 14 shows a histogram of A Zone in-mine grade sample results from the Lanigan mine.

The median ore grade for this family of in-mine samples is 25.7% K₂O equivalent and the mean ore grade is 24.7%. The five-year (2020 – 2024) mean ore grade is 25.4% K₂O equivalent and was determined from 3,053 samples.

This is considered to be a more representative estimate of expected potash ore grade in the A Zone at Lanigan than drillhole assay results presented in Section 10.0.

LOGO

Figure 14: Histogram of A Zone potash ore grade from Lanigan in-mine grade samples (2007 to December 2024).

In the Lanigan B Zone, in-mine grade samples are taken from the floor every 60 m (200’) in newly mined rooms. In-mine grade data is available from 1999 through to the end of December 2024. A total of 22,175 in-mine potash mineral grade samples were collected from the Lanigan B Zone. All samples were analysed in the Lanigan mill laboratory using analysis techniques that were up-to-date for the era in which the sample was collected. Figure 15 shows a histogram of B Zone in-mine grade sample results from the Lanigan mine.

The median ore grade for this family of in-mine samples is 20.8% K₂O equivalent and the mean ore grade is 20.2%. The five-year (2017 – 2024) mean ore grade is 19.1% K₂O equivalent and was determined from 1,390 samples.

This is considered to be a more representative estimate of expected potash ore grade in the B Zone at Lanigan than drillhole assay results presented in Section 10.0.

In 2013, Lanigan modified its cutting practices in the B Zone to improve mine roof stability. This modification involved cutting in a slightly higher, but more stable horizon (described in more detail in Section 10.0). The goal of improved mine roof stability was achieved, however, less potash and more salt is now being mined which has resulted in a lower, more diluted reported B Zone ore grade.

LOGO

Figure 15: Histogram of B Zone potash ore grade from Lanigan in-mine grade samples (1999 to December 2024).

11.3

POTASH ORE DENSITY FROM IN-MINE MINERAL GRADE MEASUREMENTS

An estimate of in-situ rock density is used to calculate potash mineralization volumes in Mineral Resource and Reserve assessments. A common approach, and the one used by Nutrien, is to determine in-place Mineral Resource and Reserve volumes (m³), then multiply this number by in-situ bulk-rock density (tonnes / m³) to give in-place Mineral Resource and Reserve tonnes.

Well-log data from drillholes can be used to calculate bulk density if accurate and calibrated well-logs are acquired during exploration drilling. In practical terms, modern well-logs tend to meet these criteria, but historic well-logs (collected before the 1990s) do not. In Saskatchewan, almost all potash exploration drilling took place in the 1950s and 1960s, well before density logs were accurate and reliable.

Another approach, and the one used by Nutrien, is to look up density values for the minerals which constitute potash rock – values determined in a laboratory to a high degree of accuracy and published in reliable scientific journals / textbooks – then apply these densities to the bulk rock. Given that the density of each pure mineral is quantified and known, the only variable is what proportion of each mineral makes up the bulk rock. An obvious benefit of this approach is that a mean value computed on the in-mine samples shown in Figure 14 and Figure 15 has a much greater confidence interval than a mean value computed from just a few drillhole assays.

The four main mineralogical components of the ore zones of Saskatchewan’s Prairie Evaporite Formation with their respective mineral densities are:


Mineral	Density (kg / m³)	Components
Halite	2,170	NaCl
Sylvite	1,990	KCl
Carnallite	1,600	KMgCl₃ · 6(H₂O)
Insolubles	2.870	Anhydrite, dolomite, quartz, muscovite, and other minor mineral components (Nutrien Pilot Plant, 2018)

All Nutrien potash mines measure and record the in-mine % K₂O grade and insoluble content of the mined rock. In addition, carnallite content is also measured at Lanigan since it can be a component of the lower portion of the B Zone. From this set of measurements, density of the ore can be calculated.

The value for insoluble density is based on known densities of the constituent parts of the insoluble components of the mineralization and the average occurrence of these insoluble components, which is known from over 50 years of mining experience at Lanigan. Assuming the lowest plausible density of insolubles known for Saskatchewan potash deposits of this nature, the effect upon overall bulk-rock ore density and Mineral Resource and Reserve calculations would be negligible.

From thousands of in-mine samples taken at Lanigan, bulk density for the Lanigan A Zone has been determined to be:

= (halite density * % halite) + (sylvite density * % sylvite) + (insolubles density * % insolubles) + (carnallite density * % carnallite)

= (2,170 kg / m³* 54.7%) + (1,990 kg / m³ * 38.2%) + (2,870 kg / m³* 6.1%) + (1,600 kg / m³* 1.0%)

= 2,138 kg / m³

RHO_bulk-rock(Lanigan A Zone) = 2,138 kg / m³= 2.14 tonnes / m³

From thousands of in-mine samples taken at Lanigan, bulk density for the Lanigan B Zone has been determined to be:

= (halite density * % halite) + (sylvite density * % sylvite) + (insolubles density * % insolubles) + (carnallite density * % carnallite)

= (2,170 kg / m³* 59.5%) + (1,990 kg / m³ * 30.8%) + (2,870 kg / m³* 4.8%) + (1,600 kg / m³* 4.9%)

= 2,120 kg / m³

RHO_bulk-rock(Lanigan B Zone) = 2,120 kg / m³= 2.12 tonnes / m³

This method is as accurate as the ore grade measurements and mineral density estimates.

12.0

DATA VERIFICATION

12.1

ASSAY DATA

Original drill core assays were studied by independent consultant David S. Robertson and Associates (1976). The original assay results for core samples from historical drillholes were taken as accurate in these studies, as there is no way to reliably reanalyse these samples. Most of the remaining samples in storage have long since deteriorated to the point where they are not usable. Robertson (1976) assay analyses for the A Zone are not reported in Section 10.0 as they assumed a 3.4 m (11’) mining interval. Instead, Nutrien technical staff recalculated the historical assay results from the A Zone using a 3.66 m (12’) mining interval, the mining height currently used in the Lanigan A Zone. Recently, drillhole core is prepared for sampling by Nutrien staff and, generally, sent to SRC Geoanalytical Laboratory for independent analyses.

Ore grades of in-mine samples are measured inhouse at the Lanigan mine laboratory by Company staff using modern, standard chemical analysis tools and procedures; an independent agency does not verify these results. However, check sampling through the CPSEP, discussed in Section 11.1, does occur.

It should be noted that assay results from historical drillholes match in-mine sample results reasonably well even though drillhole sample spacing is much greater. This correlation is further validation of the in-mine sampling methodology. Mean mineral grade determined from in-mine samples taken over decades of mining at Lanigan is thought to provide the most accurate measurement of potash grade for the Lanigan mine, also providing a good basis for estimating ore grade in areas of future mining at Lanigan.

12.2

EXPLORATION DATA

The purpose of any mineral exploration program is to determine extent, continuity, and grade of mineralization to a certain level of confidence and accuracy. For potash exploration, it is important to minimize the amount of cross-formational drilling, since each drillhole is a potential conduit for subsurface groundwater from overlying (or underlying) water-bearing formations into future mine workings. Every potash test drillhole from surface sterilizes potash mineralization as a safety pillar is required around every surface drillhole once underground mining commences.

Initial sampling and assaying of cores were done during potash exploration at Lanigan in the 1950s and 1960s. Methods were consistent with standard procedures for that era. The mine began production in 1968 and test drilling conducted after that was largely for the purpose of better understanding the caprock rather than potash mineralization. This approach to potash sampling is in accordance with widely accepted industry practice for areas adjacent and contiguous to an existing operating potash mine.

Assay of physical samples (drillhole cores and/or in-mine samples) is the only way to gain information about mineral grade, but extent and continuity of mineralization are correctly determined using data collected from seismic surveys correlated with drilling information. To date, surface seismic data at Lanigan have been collected, analysed, and verified by Company staff, at times, in cooperation with independent consultants.

Data for the Mineral Resource and Reserve estimates for Lanigan mine reported in Sections 14.0 and 15.0 were verified by Company staff as follows:

•

Review of potash assay sample information (drillholes and in-mine grade samples),

•

Review and verify procedures used for in-mine grade sampling and laboratory analysis,

•

Review of surface geophysical exploration results (3D and 2D seismic data),

•

Crosscheck of mined tonnages reported by mine site technical staff with tonnages estimated from mine survey information, and

•

Crosscheck of Mineral Resource and Mineral Reserve calculations carried out by corporate technical staff.

In the opinion of the authors, this approach to data verification of potash mineral grade and surface seismic information is in accordance with generally accepted industry practice for areas adjacent and contiguous to an existing operating potash mine.

13.0

MINERAL PROCESSING AND METALLURGICAL TESTING

At Lanigan, potash ore has been mined and concentrated to produce saleable quantities of high-grade finished potash products since 1968.

Since opening in 1968, 255.996 million tonnes of potash ore have been mined and hoisted to produce 76.014 million tonnes of finished potash products. Given this level of sustained production over several decades, basic mineralogical processing, and prospective metallurgical testing of Lanigan potash is not considered relevant.

See also Section 17.0.

14.0

MINERAL RESOURCE ESTIMATES

14.1

DEFINITIONS OF MINERAL RESOURCE

The CIM has defined Mineral Resource in The CIM Definition Standards for Mineral Resources and Reserves (2014) as:

Inferred Mineral Resource: that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity.

Indicated Mineral Resource: that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade quality continuity between points of observation.

Measured Mineral Resource: that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning and final evaluation of the economic viability of the deposit. Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points of observation.

CIM defines Modifying Factors as “considerations used to convert Mineral Resources into Mineral Reserves. These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors.”

In south-central Saskatchewan, where geological correlations are straightforward, and within a (potash) subsurface mineral lease at an operating potash mine, Mineral Resource categories are generally characterized by Nutrien as follows:

Inferred Mineral Resource: areas of limited exploration, such as areas that have been investigated through regional geological studies, or areas with 2D regional surface seismic coverage, little or no drilling, at some distance from underground workings, and within Crown Subsurface Mineral Lease KLSA 001 D.

Indicated Mineral Resource: areas of adequate exploration, such as areas with 3D surface seismic coverage, little or no drilling, at some distance from underground workings, and within Crown Subsurface Mineral Lease KLSA 001 D.

Measured Mineral Resource: areas of detailed, physical exploration through actual drilling or mine sampling, near existing underground workings, and within Crown Subsurface Mineral Lease KLSA 001 D.

The mine began production in 1968 and test drilling conducted after that was largely for the purpose of better understanding the caprock rather than potash mineralization. Instead, exploration involved collecting surface seismic data, which became better in quality over the years. Exploration drilling has demonstrated the presence of the potash horizon, and seismic coverage shows the continuity of the Prairie Evaporite Formation within which the potash horizon occurs.

Along with this approach, analysis of in-mine samples for potash grade has provided an observation-based understanding of the potash mineralized zone at Lanigan that is far superior to the level of understanding provided by any surface drilling-based exploration program. The authors believe that this approach provides a body of information that guides and constrains exploration inferences in a much better way than could be achieved from any conventional exploration investigation in areas immediately surrounding, and contiguous to, the Lanigan potash mine.

14.2

LANIGAN POTASH RESOURCE CALCULATIONS

Exploration information used to calculate reported Mineral Resource tonnages at Lanigan consist of both physical sampling (drillhole and in-mine) and surface seismic (2D and 3D) as discussed in earlier sections. Based on the definitions and guidelines in Section 14.1, all mineral rights leased or owned by the Company, and within Crown Subsurface Mineral Lease KLSA 001 D, are assigned to one of the three Mineral Resource categories.

Mineral Resources are reported as mineralization in-place and are exclusive of Mineral Reserves. In-place tonnes were calculated for each of the Mineral Resource categories using the following parameters:


Mining Height (A Zone):		3.66 m (12’)

Mining Height (B Zone):		4.88 m (16’)

Ore Density (A Zone):		2.14 tonnes / m³

Ore Density (B Zone):		2.12 tonnes / m³

The Mineral Resources for Lanigan, as of December 31, 2024 are as follows:

Lanigan A Zone:


Inferred Resource	207	millions of tonnes
Indicated Resource	1,939	millions of tonnes
Measured Resource	1.223	millions of tonnes

Total A Zone Resource	3,369	millions of tonnes

Lanigan B Zone:

Total for Lanigan (A Zone + B Zone):

Lanigan Mineral Resources are plotted in Figure 16.

The average mineral grade of the Lanigan A Zone Mineral Resource is 24.7% K₂O equivalent and was determined from thousands of in-mine samples at Lanigan. The average mineral grade of the Lanigan B Zone Mineral Resource is 20.2% K₂O equivalent and was determined from thousands of in-mine samples at Lanigan. See Section 11.2 for more detail.

The tonnage reported in the Lanigan A Zone Measured Resource is comprised of the potash that is within 1.6 km (1 mile) of a physically sampled location (i.e. drillholes or mine workings). Likewise, the tonnage reported in the Lanigan B Zone Measured Resource is comprised of the potash that is within 1.6 km (1 mile) of physically sampled location (i.e. drillholes or mine workings). Also included as Measured Resource is the potash in the pillars of mined-out areas of the Lanigan mine that is not already accounted for in the Proven Reserve estimation as there is the possibility of retrieving ore from the remnant mining pillars at some point in the future.

LOGO

Figure 16: Map showing Lanigan A Zone and B Zone Mineral Resource as of December 2024.

15.0

MINERAL RESERVE ESTIMATES

15.1

DEFINITIONS OF MINERAL RESERVE

The CIM has defined Mineral Reserve in The CIM Definition Standards for Mineral Resources and Reserves (2014) as:

Probable Mineral Reserve: the economically mineable part of an Indicated, and in some circumstances, a Measured Mineral Resource. The confidence in the Modifying Factors applying to a Probable Mineral Reserve is lower than that applying to a Proven Mineral Reserve.

Proven Mineral Reserve: the economically mineable part of a Measured Mineral Resource. A Proven Mineral Reserve implies a high degree of confidence in the Modifying Factors.

For Saskatchewan, in regions adjacent and contiguous to an operating potash mine and within a (potash) subsurface mineral lease, Mineral Reserve categories are characterized by Nutrien as follows:

Probable Mineral Reserve: identified recoverable potash mineralization classified as a Measured Resource, within a 1.6 km (1 mile) radius of a sampled mine entry or exploration drillhole contiguous to mine workings, and within Crown Subsurface Mineral Lease KLSA 001 D.

Proven Mineral Reserve: identified recoverable potash mineralization classified as a Measured Resource, delineated on at least three sides by sampled mined entries or exploration drillholes to a maximum of 3.2 km (2 miles) apart, and within Crown Subsurface Mineral Lease KLSA 001 D.

Along with this approach, analysis of in-mine samples for potash grade has provided an observation-based understanding of the potash mineralized zone at Lanigan that is far superior to the level of understanding provided by any surface drilling-based exploration program. An understanding of the amount of ore that can be conventionally mined from the Measured Resource category using current mining practices comes from over 50 years of potash mining experience at Lanigan.

15.2

LANIGAN POTASH RESERVE CALCULATIONS

Using the definitions outlined in Section 15.1, a portion of the Lanigan A Zone and B Zone Measured Resource has been converted to Mineral Reserve. The assigned Mineral Reserve category is dependent on proximity to sampled mined entries also described in Section 15.1. An overall extraction ratio for the Lanigan mine has been applied to the qualifying area outlined as Measured Resource in Figure 16. This extraction ratio is significantly lower than the local extraction ratio described in Section 16.1, as it takes into account areas which cannot be mined due to unfavorable geology.

The overall extraction ratio at the Lanigan mine is 24%. It was derived by dividing the total ore tonnes mined to date by the tonnage equivalent of the total area of the mine workings (i.e. the perimeter around the mine workings) less future mining blocks. This extraction ratio has been applied to the Probable Reserve, an area where no mining has occurred to date. To remain conservative in our estimations, and because a considerable amount of mining has already occurred in the Proven Reserve area, this extraction ratio has been applied only to the portion of the Proven Reserve that is anticipated to be mined in future. Future mining blocks within the Proven Reserve area vary from year-to-year as production continues. Pillars remaining that are not planned for mining remain a Measured Resource. Since an extraction ratio has been applied, Mineral Reserves are considered recoverable ore, and are reported as such. Note that only drillholes whose 1.6 km radii are contiguous to mine workings or the 1.6 km radius placed around mine workings are used to compute probable mineral reserve. The remaining non-contiguous drillholes remain in the Measured Resource category.

At times, irregular mining which resembles development mining occurs to support operational requirements (e.g. egress) or as geological conditions necessitate. While irregular mining increases confidence in the Mineral Resource by way of physical sampling, it can add considerable Mineral Reserve to broad areas not otherwise covered (or planned to be covered) by mine workings. Again, to remain conservative in our estimations, certain irregular mining may not have been converted from Measured Resource to Proven Reserve.

Currently, in any specific mining block at Lanigan, only one zone is mined (i.e. bi-level mining is not in practice). As such, Mineral Reserve is assigned only to the ore zone that will be mined in the future so that A Zone Mineral Reserve and B Zone Mineral Reserve do not overlap. Unmined B Zone potash mineralization directly underlying the defined A Zone Mineral Reserve is classified as B Zone Measured Resource. In the same way, unmined A Zone potash mineralization directly overlying the defined B Zone Mineral Reserve is classified as A Zone Measured Resource.

The Mineral Reserves for Lanigan as of December 31, 2024 are as follows:

Lanigan A Zone:

Lanigan B Zone:

Total for Lanigan (A Zone + B Zone):

Lanigan Mineral Reserves are plotted in Figure 17.

LOGO

Figure 17: Map showing Lanigan A Zone and B Zone Mineral Reserve to December 2024.

16.0

MINING METHOD

16.1

MINING OPERATIONS

All conventional potash mines in Saskatchewan operate at 900 m to 1,200 m below surface within 9 m to 30 m of the top of the Prairie Evaporite Formation. Over the scale of any typical Saskatchewan potash mine, potash beds are tabular and regionally flat-lying, with only moderate local variations in dip. At Lanigan, potash ore is mined using conventional mining methods, whereby:

•

Shafts are sunk to the potash ore body;

•

Continuous mining machines cut out the ore, which is hoisted to surface through the production shaft;

•

Raw potash is processed and concentrated in a mill on surface; and

•

Concentrated finished potash products (near-pure KCl) are sold and shipped to markets in North America and offshore.

Potash ore was first hoisted at Lanigan in the fall of 1968. The Lanigan mine has run on a continuous basis since then,

other than short-term shutdowns taken for inventory management purposes or occasional plant maintenance and construction work, or other outages that are typical for operations of this nature.

In recent years, the Lanigan mine underwent a major expansion which brought the nameplate capacity up to 3.8 million tonnes of finished potash products per year. The operational capability at the Lanigan facility in 2024 was 3.0 million tonnes per year

Virtually all Lanigan underground mining rooms are in one of two potash mineralized zones within the Patience Lake Member of the Prairie Evaporite Formation (the host evaporite salt). In this Member, there are two potash seams named A Zone (the upper seam) and B Zone (the lower seam); at present, both the A Zone and B Zone are being mined at Lanigan. The A Zone and B Zone are separated by approximately 4 m to 6 m of tabular salt. Saskatchewan potash geology is illustrated in Figure 18. At Lanigan, mine elevations range from approximately 940 m to 1,030 m depth below surface. These depths to potash mineralization are anticipated over most of the Lanigan lease area. Mine workings are protected from aquifers in overlying formations by approximately 7 m (A Zone) to 14 m (B Zone) of overlying salt and potash beds, along with salt plugged porosity in the Dawson Bay Formation, a carbonate layer lying immediately above potash hosting salt beds.

The Lanigan mine is a conventional underground mining operation whereby mining machines are used to excavate potash ore by the stress-relief mining method in the A Zone and the long-room and pillar mining method in the B Zone. Currently, in any specific mining block, only one zone is mined (i.e. bi-level mining is not in practice). Continuous conveyor belts transport ore from the mining face to the bottom of the production shaft. Mining methods employed in Saskatchewan are discussed in Jones and Prugger (1982) and in Gebhardt (1993).

The actual mining thickness at Lanigan is dictated by the height of mining machines used to cut the ore. The A Zone mining interval is fixed at 3.66 m (12’). The 3.66 m (12’) mining height also allows for comfortable working headroom and efficient extraction of potash ore. The thickness of the B Zone mining horizon varies somewhat and there is some flexibility in the thickness of the potash ore that is extracted there. Mining machines have a fixed mining height of 2.74 m (9’). In a normal production room, ore is extracted in two lifts resulting in a mining height of approximately 4.88 m (16’). The Lanigan mine regularly utilizes ten mining machines and has five additional machines cutting periodically.

Carnallite sometimes occurs in minor amounts in the basal part of the B Zone. Carnallite is an undesirable mill feed material. It is common at Lanigan to find carnallite in pod-like deposits and the larger pods can be mapped with seismic and avoided. Smaller pods are typically mapped using physical sampling or Ground Penetrating Radar after the first lift of a production room. When detected, the second production lift is not cut thus leaving the carnallite in the floor. In these instances, the B Zone mining height is just 2.74 m (9’). Carnallite is found in trace amounts in the A Zone; however, due to its low occurrence, mining practices remain unchanged when it is encountered.

As discussed in Section 10.0, mining systems used in both A Zone and B Zone cut to a marker (clay) seam that is slightly above the high-grade mineralized zone to establish a safe and stable mine roof. In both zones, the top marker seam is slightly overcut by 10 cm to 20 cm. Clay seams are often planes of weakness, and if they are undercut, material immediately below the clay seam becomes a hazard as it may separate and fall. Since the hazard must be remediated prior to proceeding, thus slowing production, the moderately diluted mineral grade that results from the overcutting is preferable from a safety point of view.

In 2013, Lanigan modified its cutting practices in the B Zone to improve mine roof stability. This modification involved cutting a slightly higher horizon. The goal of improved mine roof stability was achieved; however, less potash and more salt is now being mined resulting in a slightly lower reported ore grade for B Zone.

LOGO

Figure 18: Schematic cross-section through the Prairie Evaporite Formation, illustrating mining horizons at each of Nutrien’s conventional potash operations.

Conservative local extraction ratios (never exceeding 45% in any mining block) are employed at all Saskatchewan mines, including Lanigan, to minimize potential detrimental effects of mining on overlying strata; this is common practice in flat-lying, tabular ore bodies overlain by water-bearing layers.

From the shaft-bottom, potash ore is hoisted approximately 1,000 m from the potash level through the vertical shafts to a surface mill. In addition to hoisting potash ore to surface, the production shaft provides fresh air ventilation to the mine and serves as secondary egress. The Service Shaft is used for service access, and exhausting ventilation from the mine.

Since production began in 1968, 255.996 million tonnes of potash ore have been mined and hoisted at Lanigan to produce 76.014 million tonnes of finished potash products ). The life-of-mine average concentration ratio (raw ore / finished potash products) is 3.37 and the overall extraction ratio over this time period is 24%.

Actual potash production tonnages for the Lanigan mine, along with concentration ratios (tonnes mined / tonnes product), are plotted for the past decade in Figure 19.

LOGO

Figure 19: Mined tonnes, product tonnes, and concentration ratio for the Lanigan mine over the past 10 years.

16.2

RISKS TO POTASH MINING OPERATIONS, WITH EMPHASIS ON WATER INFLOWS

The mining of potash is a capital-intensive business, subject to the normal risks and capital expenditure requirements associated with mining operations. The production and processing of ore may be subject to delays and costs resulting from mechanical failures, physical hazards such as fires, and other hazards such as: unusual or unexpected geological conditions, significant subsidence, brine inflows and gas seepages of varying degree, and other situations associated with any potash mining operation.

Potash beds in all regions of Saskatchewan are overlain by a number of water-bearing formations, and there are water zones underlying the potash beds as well. A water inflow into mine workings is generally significant in a potash mine since salt dissolves in water; an inflow can lead to anything from increased costs at best to closure of the mine at worst (e.g. see Prugger and Prugger, 1991).

Over the past 50 years of mining at Lanigan, there have been numerous small brine inflows into underground workings. Analysis of water chemistry and stable isotope composition shows that these brines are from connate pockets of ancient, saturated brine trapped in the Prairie Evaporite Formation and / or the Dawson Bay Formation.

In 2012, an inflow located in an abandoned area of the Lanigan mine workings was discovered. At present, the inflow is estimated at approximately 490 litres / minute. Since it was discovered, this inflow has been characterized and successfully managed. The source of the brine is known to be the Souris River Formation. The inflow is managed according to an internal Nutrien guideline known as the Inflow Management Strategy. It is based on requirements provided by The Mines Regulations (Saskatchewan) and guidelines developed by the members of the Saskatchewan Mining Association for safe and effective management of brine inflows in potash mines. Accordingly, brine from this inflow is collected, then pumped up to surface for disposal directly into the Deadwood Formation (refer to Section 20 for more information on brine disposal). To date, this inflow has had no impact on Lanigan potash production.

It is typical with inflows in Saskatchewan potash mines that some hydrogen sulfide gas (H₂S) is exsolved from the depressurized formation brines as they enter the mine workings. Average concentrations are low (below 5 ppm) and well within safe limits for mine personnel.

Inflow into each existing shaft at Lanigan, which were both designed to be water-tight, is estimated at nil (i.e. not measurable).

17.0

RECOVERY METHODS

At Lanigan, potash ore has been mined and concentrated to produce saleable quantities of high-grade finished potash products since 1968. Products include granular, standard and fine standard grade potash which are used for agricultural application.

Both flotation methods and crystallization methods are used to concentrate potash ore into finished potash products at the Lanigan mill. A simplified process flow diagram is shown in Figure 20. Raw potash ore is processed on surface, and concentrated red potash products (near-pure KCl) are sold and shipped to markets in North America and offshore.

LOGO

Figure 20: Simplified flow diagram for potash flotation and crystallization milling methods used at Lanigan.

Over the past three years, production of finished potash products at Lanigan was:

2022: 2.457 million tonnes finished potash products at 60.99% K₂O (average grade)

2023: 2.889 million tonnes finished potash products at 61.03% K₂O (average grade)

2024: 3.403 million tonnes finished potash products at 60.97% K₂O (average grade)

Over the past decade, actual mill recovery rates have been between 80.1% and 85.9%, averaging 82.7% (see Figure 21).

Given the long-term experience with potash geology and actual mill recovery at Lanigan, no fundamental potash milling problems are anticipated in the foreseeable future.

Quality control testing and monitoring geared towards fine-tuning and optimizing potash milling and concentrating processes are conducted on a continual basis at all Nutrien mine sites and at Nutrien research facilities. At Lanigan, this is no exception; test work to optimize circuit performance and ensure product quality is carried out on an ongoing basis.

LOGO

Figure 21: Lanigan mill recovery rate over the past 10 years.

18.0

PROJECT INFRASTRUCTURE

Infrastructure is in place to meet current and projected requirements for transportation, energy (electricity and natural gas), water and process materials at Lanigan. See also Section 5.0.

The Lanigan mine is served by a number of villages within 50 kilometres of the mine site. The nearest cities are Humboldt (approximately 45 km distant) and Saskatoon (approximately 100 km distant).

The Lanigan surface facilities are accessed by existing paved roads and highways that are part of the Saskatchewan Provincial Highway System. All finished potash products are shipped by rail over existing track.

At present, high voltage power capacity at Lanigan is 72 MVA. The ten-year projection of power utilization indicates that the utility can meet all foreseeable future demand.

The Lanigan operation requires a sustained fresh water supply for the milling process which is provided by a waterline from the Dellwood Reservoir (approximately 10 km distant) and from a regional aquifer called the Hatfield Valley Aquifer. This provincially licensed water supply provides a source of process water for Lanigan milling operations and usage is regulated by terms of the license issued by the Water Security Agency.

19.0

MARKET STUDIES AND CONTRACTS

Potash from Company mines (including Lanigan) has been sold on a continuous basis since mining began in 1968. At present, Nutrien products are sold in more than 50 countries, to three types of end-use:

Fertilizer, focused on balanced plant nutrition to boost crop yields to meet the world’s ever-increasing appetite for food (nitrogen, phosphate, potash)

Feed Supplements, focused on animal nutrition (mainly phosphate)

Industrial, focused on products for high-grade food, technical and other applications (nitrogen, phosphate, as phosphoric acid, potash)

The Company owns and operates six potash mines in Saskatchewan and a potash mine in New Brunswick, Canada, which no longer produces potash and was permanently closed in 2018. Over the past three years (2022, 2023, 2024) the Company had potash sales of 39.639 million tonnes. Historical Company potash sales data for the past 10 years are plotted in Figure 22 and Figure 23.

Potash is mainly used for fertilizer, which typically makes up approximately 90% of the company’s annual potash sales volumes. By helping plants develop strong root systems and retain water, it enhances yields and promotes greater resistance to disease and insects. Because it improves the taste and nutritional value of food, potash is often called the “quality nutrient.” Industrial applications of potash include use in soaps, water softeners, de-icers, drilling muds and food products.

Potash fertilizer is sold primarily as solid granular and standard products. Granular product has a larger and more uniformly shaped particle than standard product and can be easily blended with solid nitrogen and phosphate fertilizers. It is typically used in more advanced agricultural markets such as the US and Brazil.

Most major potash consuming countries in Asia and Latin America have limited or no indigenous production capability and rely primarily on imports to meet their needs. This is an important difference between potash and the other major crop nutrient businesses. Trade typically accounts for more than three-quarters of demand for potash, which ensures a globally diversified marketplace.

The most significant exporters are producers with mines in the large producing regions of Canada, the Middle East, and the former Soviet Union, which all have relatively small domestic requirements.

LOGO

Figure 22: Historical Company potash sales 2015 to 2024 in million tonnes / year.*

*	Company sales data for years prior to 2018 includes only PotashCorp sales.

LOGO

Figure 23: Historical Company potash net sales 2015 to 2024 in million USD $ / year.*

World consumption of potash fertilizer has grown over the last decade, with the primary growth regions being developing markets in Asia and Latin America. These are countries with expanding crop production requirements, where potash has historically been under-applied and crop yields lag behind those of the developed world. Although temporary pauses can occur in certain countries, the underlying fundamentals of food demand that encourage increased potash application are expected to continue the growth trends in key importing countries. See Figure 24 for world potash production and demand in 2024.

LOGO

Figure 24: World potash production and demand for 2024.

Potash is used on many agricultural commodities. Wheat, rice, corn, oilseed, and sugar crops consume over half of the potash used worldwide. Fruits and vegetables are also important users of potash fertilizers, accounting for about 19 percent of the total consumption. The remainder goes to other consumer and industrial crops such as oil palm, rubber,

*	Company sales data for years prior to 2018 includes only PotashCorp sales.

cotton, coffee, and cocoa. See Table 4 for primary potash market profile. This diversity means that global potash demand is not tied to the market fundamentals for any single crop or growing region.

Table 4: Primary Potash Market Profile


Country/Region	Growth Rate*	Key Consuming Crops
China	3.4%	Vegetables, rice, fruits, corn
India	-0.5%	Rice, wheat, vegetables, sugar crops
Other Asia	2.8%	Oil palm, rice, sugar crops, fruits, vegetables
Latin America	5.1%	Soybeans, sugar crops, corn
North America	3.2%	Corn, soybeans

*	5-year CAGR for consumption (2019-2024E)

Global potash shipments are estimated to have reached record levels at approximately 72.5 million tonnes in 2024, an increase of about 4.5 million tonnes from the previous year. Potash consumption has grown at an annualized rate of 2.6 percent over the past 5 years, driven by strong potash consumption trends in all major potash markets.

North American and South American growers applied significant amounts of potash to replenish soil nutrients removed by large harvests. Potash application rates are increasing in China and Southeast Asian countries as a result of increased soil testing and improved agronomic practices, along with a renewed focus on food security in China. Growers in these countries are also increasing acreage of potassium-intensive crops such as fruits, vegetables, and oil palm. India continues to face political barriers to significantly growing potash demand, however, the agronomic need and willingness of farmers to improve yields persists. The Company believes that supportive agriculture fundamentals and the need to address declining soil fertility levels will enable strong demand growth in the years ahead. World potash shipments and consumption in recent years is shown in Figure 25.

LOGO

Figure 25: World potash shipments and consumption, 2019-2024E.

Canpotex Limited (Canpotex), the offshore marketing company owned by the Company and another Saskatchewan potash producer, handles all sales, marketing and distribution of potash produced by its member companies to customers outside of the US and Canada (including the potash produced at Lanigan).

In North America, Nutrien sells potash to retailers, cooperatives, and distributors, who provide storage and application services to farmers, the end-users. This includes sales to Nutrien’s retail distribution business, which has the largest retail distribution network in North America. Typically, the Company’s North American potash sales are larger in the first half of the year. The primary customers for potash fertilizer products for the Lanigan operation are retailers, dealers, cooperatives, distributors, and other fertilizer producers who have both distribution and application capabilities.

Nutrien’s market research group provides management with market information on a regular basis including global agriculture and fertilizer markets, demand and supply in fertilizer markets and general economic conditions that may impact fertilizer sales. These may include specific market studies and analyses on different topics as may be required. This information is reviewed on a regular basis and the author of this report takes this information into account in understanding the markets and the assumptions within this report.

Plans and arrangements for potash mining, mineral processing, product transportation, and product sales are established by Nutrien and are within industry norms.

20.0

ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT

The tailings management strategy at all Nutrien potash mines in Saskatchewan, including Lanigan, is one of sequestering solid mine tailings in an engineered and provincially licenced TMA near the surface plant site. The Lanigan TMA currently covers an area of approximately 737 hectares (1,821 acres) of land owned by the Company. Solid potash mine tailings typically consist of 85% to 95% rock-salt (NaCl) and 5% to 15% insolubles (carbonate mud = CaCO₃, anhydrite mud = CaSO₄, and clays like chlorite, illite, and so on). An engineered slurry-wall has been constructed on the south and south-west sides of the Lanigan TMA in the areas where near-surface aquifers could be impacted by mine waters. Near-surface geology on all other sides of the TMA limits the possibility of brine migration into these areas. The slurry-wall provides secondary containment of any saline mine waters, stopping these brines from reaching surrounding near-surface aquifers. Areas surrounding the TMA are closely monitored; this includes everything from daily visual perimeter inspections to annual investigations and inspections of surrounding groundwater and aquifers.

Lanigan currently operates three brine disposal wells near the surface plant of the Lanigan mine (marked in Figure 26) where clear salt brine (i.e. no silt, insolubles, or other waste) is borehole-injected into the Winnipeg / Deadwood Formations, deep subsurface aquifers approximately 1,500 m to 1,700 m below surface (marked in Figure 7). The disposal wells are provincially licensed and formation water in these extensive deep aquifers is naturally saline.

Emissions to air (consisting primarily of particulate matter) are kept below regulatory limits through various modern air pollution abatement systems (e.g. dust collection systems built into mill processes) that are provincially licensed. This same procedure is followed at all Nutrien mines in Saskatchewan.

In Saskatchewan, all potash tailings management activities are carried out under an “Approval to Operate” granted by the Saskatchewan Ministry of Environment (MOE), the provincial regulator. Staff at the Lanigan mine actively monitor and inspect operations and routinely report the observations and measurements to the Environmental Protection Branch of MOE. The current Lanigan Approval to Operate has been granted to July 1, 2028, the renewal date.

In terms of long-term decommissioning, environmental regulations in the Province of Saskatchewan require that all operating potash mines in Saskatchewan create a long-term decommissioning and reclamation plan that will ensure all surface facilities are removed, and the site is left in a chemically and physically stable condition once mine operations are complete. The Company has conducted numerous studies of this topic, and the most recent decommissioning and reclamation plan for Lanigan was approved by MOE technical staff in January 2022. Because the current expected mine life for Lanigan is many decades into the future, it is not meaningful to come up with detailed engineering designs for decommissioning annually. Instead, decommissioning plans are reviewed every five years, and updated to accommodate new concepts, technological change, incorporation of new data, and adjustments of production forecasts and cost estimates. Any updated decommissioning and reclamation reports generated by this process are submitted to provincial regulatory agencies. For Lanigan, a revised decommissioning and reclamation plan is due to be submitted for MOE review in June 2026.

In addition to the long-term decommissioning plan, provincial regulations require that every potash producing company in Saskatchewan set up an Environmental Financial Assurance Fund, which is to be held in trust for the decommissioning, restoration, and rehabilitation of the plant site after mining is complete. This fund is for all mines operated by Nutrien in the province of Saskatchewan (i.e., Allan, Cory, Lanigan, Patience Lake, Rocanville, and Vanscoy).

LOGO

Figure 26: Aerial photo showing the Lanigan surface operations, disposal wells, and Tailings Management Area.

21.0

CAPITAL AND OPERATING COSTS

The Lanigan mine has been in operation since 1968; in the years immediately preceding this, major capital investment was made to bring this mine into production. Since then, capital expenditures were made on a regular and ongoing basis to sustain production, and to expand production from time to time.

Most recently, mill rehabilitation, mine expansion and hoist improvement projects were completed at Lanigan between 2005 and 2010. The expansion construction was carried out without significant disruption to existing potash production from the site.

22.0

ECONOMIC ANALYSIS

22.1

FUNDAMENTALS

The Company conducts ongoing and detailed economic analyses on each of its operations and on all aspects of its business. While the Company considers its operating costs and results on a per mine basis to be competitively sensitive and confidential information, the Company is confident that the economic analysis conducted routinely for each of the Company’s operating potash mines is complete, reasonable, and meets industry standards.

On a cash flow basis, The Company’s potash segment generated USD $14,647 million in net sales over the past three years (2022, 2023 and 2024) based on sales volume of 39.639 million tonnes of finished potash products. The annual

average realized potash price for manufactured products (includes North American and offshore sales) over a 10-year period (2015 – 2024) is plotted in Figure 27.

Over the past three years (2022, 2023, and 2024) the Lanigan mine produced 8.749 million tonnes of finished potash products. In the past three years (2022, 2023, and 2024), the Lanigan mine accounted for 22% of total potash production at the Company over this period. Lanigan is currently making a positive contribution to the Company’s potash segment.

Given the Company’s previous history (including over 50 years of mining at the Lanigan operation), recent market conditions, and extensive reserve base, the economic analysis for Lanigan has met the Company’s internal hurdle rates.

LOGO

Figure 27: Historic annual average realized potash price in USD / tonne.*

22.2

TAXES

Royalties are paid to the Province of Saskatchewan in connection with the Company’s Potash operations, which holds most of the mineral rights in the lease areas, and royalties from Freehold lands are paid to various freeholders of mineral rights in the area. The Crown royalty rate is 3 percent and is governed by The Subsurface Mineral Royalty Regulations, 2017. The actual amount paid is dependent on selling price and production tonnes.

Municipal taxes are paid based on site property values to the applicable municipality in Saskatchewan. Saskatchewan potash production is taxed at the provincial level under The Mineral Taxation Act, 1983. This tax, governed by The Potash Production Tax Regulations, consists of a base payment and a profit tax, collectively known as the potash production tax. As a resource corporation in the Province of Saskatchewan, the Company is also subject to a resource surcharge equal to a percentage of the value of its resource sales (as defined in The Corporation Capital Tax Act of Saskatchewan). In addition to this, the Company pays federal and provincial income taxes based on corporate profits from all of its operations in Canada.

23.0

ADJACENT PROPERTIES

The Company’s Lanigan Lease KLSA 001 D is adjacent to the following Crown potash dispositions:

•

BHP Billiton Canada Inc. KLSA 011, KL 207, KL 211, KL 214, and KP 323

24.0

OTHER RELEVANT DATA AND INFORMATION

Not applicable.

*	Company annual average realized potash price for years prior to 2018 includes only PotashCorp sales.

25.0

INTERPRETATION AND CONCLUSIONS

Nutrien has a long history of successful potash mining at Lanigan, where potash has been produced for over 50 years. The Company believes that the experience gained mining and milling potash for this length of time has produced a reliable body of information about potash mineralization, mining and milling at Lanigan.

In a Saskatchewan potash mine that has been producing for many decades, reduction of mine life through increased production is counter-balanced by development mining into new mineral land parcels. This increases mine life through increasing the potash Mineral Reserve.

For Lanigan, mine life can be estimated by dividing the Mineral Reserve (Proven + Probable) for each A Zone (257 million tonnes) and B Zone (203 million tonnes) by the average annual mining rate (million tonnes of ore hoisted per year). For Lanigan, the mining rate is defined as equal to the actual three-year running average (consecutive, most recent years). The average mining rate at Lanigan over the past three years (2022, 2023 and 2024) was 8.63 million tonnes of potash ore mined and hoisted per year.

If this mining rate is sustained and if Mineral Reserves remain unchanged, then the Lanigan mine life would be 30 years in an A Zone only mining scenario, and 23 years in a B Zone only mining scenario. It should be noted that mine life estimates for A Zone and B Zone must remain independent and must not be added to arrive at a cumulative mine life. This is because Mineral Reserve was evaluated for each zone independently and – subsequently – the three-year average mining rate (in full) was applied to each. This estimate of mine life is likely to change as mining advances further into new mining blocks, and / or if mining rates or mining methodologies change.

26.0

RECOMMENDATIONS

Not applicable for a potash mine that has been in operation since 1968.

27.0

REFERENCES

Companion Policy 43-101CP to National Instrument 43-101 Standards of Disclosure for Mineral Projects (2011). Retrieve this and related documents from many websites.

The CIM Definition Standards for Mineral Resources and Reserves (2014). Retrieve this and related documents from many websites.

Fuzesy, Anne (1982). Potash in Saskatchewan (44p). Saskatchewan Industry and Resources Report 181. https://publications.saskatchewan.ca/#/products/7307.

Gebhardt, E. (1993). Mine planning and design integration, CIM Bulletin, May 1993, pp. 41 – 49.

Government of Saskatchewan (2025). Saskatchewan Mining and Petroleum GeoAtlas. https://gisappl.saskatchewan.ca/Html5Ext/index.html?viewer=GeoAtlas. Accessed January 2025.

Government of Saskatchewan. The Corporation Capital Tax Act of Saskatchewan. Available online at http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/c38-1.pdf.

Government of Saskatchewan. The Mineral Taxation Act, 1983. Available online at http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/M17-1.pdf.

Government of Saskatchewan. The Mines Regulations, 2018. Available online at https://publications.saskatchewan.ca/#/products/100307.

Government of Saskatchewan. The Potash Production Tax Regulations. Available online at https://publications.saskatchewan.ca/#/products/1263.

Government of Saskatchewan. The Subsurface Mineral Royalty Regulations, 2017. Available online at http://publications.gov.sk.ca/details.cfm?p=88223&cl=8.

Government of Saskatchewan. The Subsurface Mineral Tenure Regulations, 2015. Available online at http://www.publications.gov.sk.ca/details.cfm?p=72797.

Jones, P. R., and F. F. Prugger (1982). Underground mining in Saskatchewan potash. Mining Engineering, 34, pp. 1677 – 1683.

Nutrien Pilot Plant (2018). Personal communication on density of insoluble minerals in different ore zones.

Prugger, F.F., (1979), The flooding of the Cominco potash mine and its rehabilitation; CIM Bulletin, Vol. 72, No. 807, pp. 86 – 90.

Prugger, F. F. and A. F. Prugger (1991). Water problems in Saskatchewan potash mining – what can be learned from them? Bulletin of the Canadian Institute of Mining and Metallurgy (CIM Bulletin), Vol. 84, No. 945, pp. 58 – 66.

Robertson, David S. and Associates (1978). Summary Report on Evaluation of Potash Assets for Potash Corporation of Saskatchewan. Unpublished consultant’s report to Potash Corporation of Saskatchewan Inc.

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