Buffalo Potash Completes Second Vertical Well and Advances to Horizontal Drilling Phase at Disley Initial Production Module

Buffalo Potash Corporation completed the second vertical well, the 2-14 Disposal Well, at its Disley Initial Production Module (IPM) and spudded the first horizontal well, 5D15-10, on August 13, 2026. Phase 1, which included vertical source and disposal wells, was finished ahead of schedule and under budget. The 2-14 well was cored for 108 meters with 100% recovery and prepared for brine disposal.

The first horizontal well is planned to be landed within the potash-bearing Prairie Evaporite Formation with a horizontal leg of approximately 550 meters, marking the start of Phase 2, or Horizontal Line-Drive drilling. Core samples from the 15-10 and 2-14 wells have been submitted to the Saskatchewan Research Council for ICP assay to determine potash grade.

The IPM design capacity remains 125,000 tonnes per annum (TPA) of soluble-grade potash, with first production targeted for Q1 2027. Additionally, the company granted 2,750,000 stock options to directors, officers, and consultants at an exercise price of $0.80 per share, vesting over 12 to 24 months.

Buffalo Potash Corporation (BUFF) confirmed that its operational execution aligns with the previously announced development roadmap, noting that drilling progress followed the July 22 commencement of IPM drilling. The company completed Phase 1 ahead of schedule and under budget, a move described as operationally positive, though it does not alter the fundamental project economics or timeline. The market had already priced in the Q1 2027 first production target based on the April PEA and June financing.

Regarding corporate actions, the stock option grant at $0.80 is slightly above the current trading price of approximately $0.77, indicating management confidence. This represents standard equity compensation and introduces minor dilution of approximately 2.5% of outstanding shares. No changes to the PEA metrics, including a US$1.1B NPV and 30% IRR, production capacity, or capital requirements are disclosed. The news is incremental and confirms execution rather than introducing new value drivers.

Buffalo Potash Corporation (BUFF) is a pre-revenue exploration and development company focused on the Disley Project in Saskatchewan, Canada. The project utilizes a patented Horizontal Line-Drive (HLD) selective solution mining method, aiming to reduce freshwater use, eliminate 45-90 vertical wells, and target high-grade sylvite layers. The Disley Project covers 10,610 hectares, located approximately 50 km northwest of Regina, adjacent to major producing solution mines including K+S Bethune and Mosaic Belle Plaine.

The development strategy is modular: starting with the IPM (125,000 TPA soluble-grade potash), followed by Disley East and Disley West (500,000 TPA each), targeting a full build-out of 1,125,000 TPA. A Preliminary Economic Assessment (PEA) dated April 2026 estimates an after-tax NPV of US$1.1 billion at an 8% discount rate, an IRR of 30%, and a payback period of approximately 12 months from IPM production start.