Gensource Potash begins Tugaske technical update work

Executive Summary

• Gensource Potash Corp. has initiated a technical update for its Tugaske project, funded by a large Southeast Asian (ASEAN) conglomerate following the execution of an exclusivity agreement (EA).
• The technical update involves a defined engineering scope to align project details with the partner's investment requirements, including refreshed cost estimates and capital budgets for a facility with a capacity of at least 500,000 metric tonnes per year.
• The resulting revised National Instrument 43-101 technical report will serve as the basis for financing commitment and project execution, covering resources, reserves, processing, and infrastructure.

Key Details

• Exclusivity Agreement (EA): Executed on Feb. 9, 2026, with a large, diversified Southeast Asian (ASEAN) conglomerate.
• Financing Structure: The ASEAN partner is committed to financing the technical update work. The broader partnership framework includes a long-term supply agreement and a proposed investment structure to fully finance the construction and commissioning of the Tugaske project.
• Technical Update Scope:
  • Aimed at updating technical details to match the ASEAN partner's investment requirements.
  • Refreshes construction and operating cost estimates.
  • Develops capital budgets for a minimum 500,000-metric-tonne-per-year facility (double the size of the original Tugaske project).
• Execution Team:
  • Supervised by a joint team from Gensource and the ASEAN partner.
  • Engineering work led by a local Saskatoon engineering firm.
  • Includes subject matter experts in engineering, environmental, geology, and other fields.
• Timeline: Completion expected to take several months, proceeding in parallel with the partner's due diligence and project financing work.
• Deliverables: A revised National Instrument 43-101 technical report covering mineral resource and reserve, well field plan, processing, transportation, logistics, utilities, and infrastructure.
• Strategic Context: Management describes Tugaske as the most advanced greenfield potash project available, aiming to maintain momentum toward a final investment decision.

Notable Quotes

• "Gensource and our ASEAN partner have moved quickly to convert the momentum of completing the EA into advancement of the project. To have the technical update be initiated within weeks of the EA demonstrates the genuine focus and dedication of all parties to move preinvestment Tugaske work ahead briskly. Management of the company believes that Tugaske is the most advanced greenfield potash project available anywhere and has the potential to be implemented quickly and efficiently. Both parties are focused on maintaining this momentum into the next steps required to reach a final investment decision on the project." — Mike Ferguson, President and CEO