Gensource Finalizes Vanguard One Location and Provides General Update

SASKATOON, Saskatchewan–(BUSINESS WIRE)–Gensource Potash Corporation (“Gensource” or the “Company”)
(TSX.V: GSP) is pleased to announce that it has executed an agreement to
lock-up the plant site location for the Vanguard One project (the
“Project”), further readying the Project for field activities to begin.
While there were several suitable land packages available for selection
of the site, the preferred location was successfully secured.

Mike Ferguson, Gensource’s President & CEO stated that “we are pleased
to officially announce that we have our ‘home’ for the Vanguard One
project, and we continue to march forward towards construction. Together
with two key milestones already achieved in the past few months – the
signing of a definitive offtake agreement for 100% of the production of
Vanguard One and the completion of the environmental assessment process
– the plant site land control now means we are truly shovel-ready.”

Gensource’s approach to building a project has always been to “de-risk”
the investment opportunity first, by ensuring that the key business and
approval requirements are in place before committing the necessary
capital to construct. The first key requirement, guaranteeing that the
full production from the project is “pre-sold”, was successfully
completed and announced in a news release on May 18, 2018. Under this
definitive “take or pay” off-take agreement, Gensource has guaranteed
the sale of the total annual production from the Vanguard One module
(planned at 250,000 tonnes/year) for 10 years, with an option to renew
for the life of the Project and a right of first refusal for the
off-taker to purchase any additional production from the Project. The
definitive off-take agreement with a senior North American agriculture
industry leader (the “Off-taker”) enables Gensource and the Off-taker to
create a direct link from the mine to the farmer, which has always been
a strategic objective for the Company.

As announced on August 9, 2018, Gensource successfully completed the
Environmental Assessment process through the Saskatchewan Ministry of
Environment (“MOE”), having received a determination that the Project is
not required to complete a full Environmental Impact Assessment (EIA) –
the environmental assessment work completed to-date being sufficient to
allow the Project to proceed to the detailed construction licensing
process. This determination means that the Project does not trigger the
stringent criteria of the Saskatchewan Environmental Assessment Act, and
consequently, the Project, with its unique ‘no salt to surface’ design,
which eliminates the need for tailings management facilities, is
unlikely to have a significant impact on the environment. The permitting
and licensing stage of the Project will be underway upon project
financing, when detailed engineering is initiated.

With all other “pre-construction boxes checked”, Gensource is now
closing in on the final milestone required to initiate construction –
full project financing. The process of arriving at a capital structure
that makes sense to both debt-providers and equity investors has gone
well and several potential partners are in the detailed discussion
stage. Indicative term sheets are being discussed and the process of
identifying a lead senior debt provider is progressing well. As part of
the financing effort, Gensource is pleased that its Off-taker partner is
interested and willing to participate as an equity investor. That
willingness provides a very positive message to the project lenders and
other equity investors, significantly advancing the process of
assembling the project finance package. Further updates will be provided
as the finance package progresses.

With much of the focus on the Vanguard One project, Gensource also
continues to make progress on the development of the entire Vanguard
Area, in order to support the increasing interest and demand for potash
production. Gensource offers direct access to the resource and an
opportunity for an off-taker to “own” potash production of their own
under the Company’s business model. The further definition of the
resource in the Vanguard Area is part of the Company’s flow-through
expenditure requirements and, this fall, will take the form of an
additional exploration drill hole, to core and recover potash for
assaying and resource reporting. In addition to the bore hole, Gensource
is continuing technical studies on dissolution and cavern modelling.
This effort will increase the overall resource definition in the area
and improve the confidence of the existing resource and reserve – both
being key for the implementation of the next modules in the Vanguard
Area.

“There has been significant progress on the Vanguard One project on all
fronts in the last quarter, and we are setting ourselves up for a busy
fall. Gensource not only continues to work hard on getting Vanguard One
into the execution phase, but we also remain committed to the next
opportunities to implement additional modules of production in the
Vanguard Area – creating more availability for our customers and
creating more value for our shareholders”, says Gensource’s President &
CEO, Mike Ferguson. “We are excited about the next stage of our
company’s development, with our clear goal of becoming a new and
independent producer in the potash industry.

Finally, Gensource will be hosting its quarterly shareholder update
call on October 10, 2018 to provide more details on the recent corporate
and project development efforts. The call is scheduled for 4:00pm
Eastern Standard Time, and participants can join by dialing:
1-866-486-8901.
For any specific items that shareholders would
like addressed during the call, please email your questions in advance
to:
info@gensource.ca.

About Gensource

Gensource is based in Saskatoon, Saskatchewan and is focused on
developing the next potash production facility in that province – but
with a radically and fundamentally different approach. Gensource’s
President & CEO, Mike Ferguson, P.Eng., has assembled a management and
technical team with direct and specific expertise and experience in
potash development in Saskatchewan.

Gensource operates under a business plan that has two key components:
(1) vertical integration with the market to ensure that all production
capacity built is directed, and pre-sold, to a specific market,
eliminating market-side risk; and (2) technical innovation which will
allow for a small and economic potash production facility, which
is much friendlier to the environment to construct and operate – the
output of which can then be directed to a single, specific market.

The project information contained in this news release is based on the
feasibility study for the Vanguard One Project completed in Q2 2017 (See
the news release dated 31May2017 for further details). Mike Ferguson,
P.Eng., President & CEO of Gensource and a Qualified Person (“QP”) as
defined in NI 43-101, has reviewed and approved the contents of this
news release.

Neither TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward-Looking Statements

This news release may contain forward looking information and
Gensource cautions readers that forward- looking information is based on
certain assumptions and risk factors that could cause actual results to
differ materially from the expectations of Gensource included in this
news release. This news release includes certain “forward-looking
statements”, which often, but not always, can be identified by the use
of words such as “believes”, “anticipates”, “expects”, “estimates”,
“may”, “could”, “would”, “will”, or “plan”. These statements are based
on information currently available to Gensource and Gensource provides
no assurance that actual results will meet management’s expectations.
Forward-looking statements include estimates and statements with respect
to Gensource’s future plans, objectives or goals, to the effect that
Gensource or management expects a stated condition or result to occur,
including the establishment of vertical integration partnerships and the
sourcing of end use potash purchasers. Since forward-looking statements
are based on assumptions and address future events and conditions, by
their very nature they involve inherent risks and uncertainties. Actual
results relating to Gensource’s financial condition and prospects, the
ability to establish viable vertical integration partnerships and the
sourcing of end use potash purchasers could differ materially from those
currently anticipated in such statements for many reasons such as:
failure to settle a definitive joint venture agreement with a party and
advance and finance the project; changes in general economic conditions
and conditions in the financial markets; the ability to find and source
off-take agreements; changes in demand and prices for potash;
litigation, legislative, environmental and other judicial, regulatory,
political and competitive developments; technological and operational
difficulties encountered in connection with Gensource’s activities; and
other matters discussed in this news release and in filings made with
securities regulators. This list is not exhaustive of the factors that
may affect any of Gensource’s forward-looking statements. These and
other factors should be considered carefully and readers should not
place undue reliance on Gensource’s forward-looking statements.
Gensource does not undertake to update any forward-looking statement
that may be made from time to time by Gensource or on its behalf, except
in accordance with applicable securities laws.

Contacts

Gensource Potash Corporation:
Mike Ferguson, (306) 974-6414
President
& CEO
mike@gensource.ca

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