Salt Lake Potash : First Tranche of Placement Completed

ASX ANNOUNCEMENT‌‌‌

4 May 2017‌‌‌‌ FIRST TRANCHE OF PLACEMENT COMPLETED

Salt Lake Potash Limited (the Company or SO4) is pleased to announce that has completed the first tranche of the A$17,630,000 placement with the issue of 30.7 million shares at A$0.43 per share.‌

The second tranche of 10.3 million shares will be issued on or about Friday 16 June 2017 following shareholder approval. A notice of general meeting will be sent to shareholders shortly.

Proceeds from the Placement will be used for the planning and initial construction costs of a Pilot Plant at the Goldfields Salt Lakes Project, as well as ongoing resource investigation, process testwork, engineering and transport studies and working capital.

An Appendix 3B and Section 708A Notice are attached.

Enquiries: Matthew Syme

Telephone: [phone]

ASX ANNOUNCEMENT | 4 May 2017

Information required under ASX Listing Rule 3.10.5A:

1. Dilution to existing shareholders as a result of the issue under Listing Rule 7.1A is 9%, dilution to existing shareholders as a result of the issue under Listing Rule 7.1 is 11% and the total dilution to existing shareholders is 19%. The securities issued under Listing Rule 7.1A have been issued to both existing and new security holders. The percentage of the post-placement capital is as follows:

   • 81.4% held by pre-placement security holders who did not participate in the placement;

   • 2.9% held by pre-placement security holders who did participate in the placement (incl. 0% held by those who participated under Listing Rule 7.1A); and

   • 15.7% held by participants in the placement who were not previously security holders (incl. 8.1% held by those who participated under Listing Rule 7.1A).

2. The Company will issue 13,382,759 placement shares under Listing Rule 7.1A as a placement was considered to be a more efficient mechanism for raising funds. The placement did not expose the Company to additional costs, a protracted process and market volatility that may have been experienced with a pro-rata issue or other type of issue in which existing ordinary security holders would have been eligible to participate;

3. No underwriting arrangements are in place for the placement under rule 7.1A; and

4. A fee of up to 6% may be paid to brokers/advisors in connection with the placement under rule 7.1A.

Forward Looking Statements

This announcement may include forward-looking statements. These forward-looking statements are based on Salt Lake Potash Limited's expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Salt Lake Potash Limited, which could cause actual results to differ materially from such statements. Salt Lake Potash Limited makes no undertaking to subsequently update or revise the forward-looking statements made in this announcement, to reflect the circumstances or events after the date of that announcement.

Appendix 3B New issue announcement

Appendix 3B

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

New issue announcement, application for quotation of additional securities‌ and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12, 04/03/13

Name of entity

SALT LAKE POTASH LIMITED

ABN

98 117 085 748

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1	+Class of +securities issued or to be issued	Ordinary Shares
2	Number of +securities issued or to be issued (if known) or maximum number which may be issued	30,700,000
3	Principal terms of the +securities (e.g. if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)	Fully paid ordinary shares

+ See chapter 19 for defined terms.

04/03/2013 Appendix 3B Page 1

Appendix 3B

New issue announcement

4	Do the +securities rank equally in all respects from the +issue date with an existing +class of quoted +securities? If the additional +securities do not rank equally, please state: the date from which they do the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment	Yes
5	Issue price or consideration	$0.43
6	Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)	To provide funding for the Company's planned exploration and development activities for the Sulphate of Potash Projects and for general working capital.
6a	Is the entity an +eligible entity that has obtained security holder approval under rule 7.1A? If Yes, complete sections 6b - 6h in relation to the +securities the subject of this Appendix 3B, and comply with section 6i	Yes
6b	The date the security holder resolution under rule 7.1A was passed	30 November 2016
6c	Number of +securities issued without security holder approval under rule 7.1	17,317,241
6d	Number of +securities issued with security holder approval under rule 7.1A	13,382,759

+ See chapter 19 for defined terms.

Appendix 3B Page 2 04/03/2013