TECHNICAL REPORT SUMMARIZING THE PRELIMINARY FEASIBILITY STUDY FOR THE MUSKOWEKWAN FIRST NATIONS HOME RESERVE PROJECT IN SOUTH EASTERN SASKATCHEWAN, CANADA Prepared For: Encanto Potash Corp. 800 West Pender Street, Suite #450 Vancouver British Columbia, V6C 2V6 Prepared By: Tabetha A. Stirrett, P.G. of North Rim Exploration, Ltd. Drs. Michael P Hardy, Ph.D., P.E., P.Eng., Douglas F. Hambley, P.E., P.Eng., P.G., and Bo Yu, P.E of Agapito Associates Inc. Mr. James Brebner, Ing of Novopro Projects Inc. February 28, 2013 FINAL Report Number: 13-944 Technical Report Summarizing the Preliminary Feasibility Study for the February 28, 2013 Muskowekwan First Nations Project in South Eastern Saskatchewan CONTENTS CONTENTS ........................................................................................................................................ 2 LIST OF FIGURES ............................................................................................................................... 5 LIST OF TABLES ................................................................................................................................. 6 LIST OF APPENDICES ......................................................................................................................... 6 1.0 SUMMARY ................................................................................................................................. 7 1.1 Introduction .............................................................................................................................. 7 1.2 2013 Pre-Feasibility Study ........................................................................................................ 8 1.3 Resource Estimate .................................................................................................................. 10 1.4 Mineral Reserves .................................................................................................................... 12 1.5 Recommendations .................................................................................................................. 12 2.0 INTRODUCTION ........................................................................................................................ 13 2.1 Issuer of the Report ................................................................................................................ 13 2.2 Source of Information ............................................................................................................. 13 2.3 Terms of Reference ................................................................................................................ 15 3.0 RELIANCE ON OTHER EXPERTS ..................................................................................................... 16 4.0 PROPERTY DESCRIPTION, LOCATION AND LEGAL STATUS ................................................................... 17 4.1 Property Description And Location......................................................................................... 17 4.2 Mineral Tenure in Saskatchewan ........................................................................................... 20 4.3 Project Area Subsurface Mineral Rights ................................................................................. 21 4.4 Terms of Subsurface Mineral Permit and Obligations of a Permittee under Treaty Lands Entitlement Framework Agreement (TLEFA) .................................................................................... 22 4.5 Acts and Regulations .............................................................................................................. 23 4.6 Royalties, Back-In Rights, and Other Agreements and Encumbrances ................................... 23 4.7 Environmental Liabilities ........................................................................................................ 23 4.8 First Nations Land Agreement with Encanto Potash .............................................................. 23 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY ........................... 24 5.1 Topography and Vegetation ................................................................................................... 24 5.2 Accessibility and Local Resources ........................................................................................... 24 5.3 Climate .................................................................................................................................... 25 5.4 Infrastructure .......................................................................................................................... 26 6.0 HISTORY .................................................................................................................................. 26 6.1 Project History ........................................................................................................................ 26 6.2 2009 Seismic Program ............................................................................................................ 26 6.3 2010 Seismic Program ............................................................................................................ 27 6.4 2010 Drilling Program ............................................................................................................. 33 6.5 2011 Resource Calculation ..................................................................................................... 33 6.6 2012 Resource Calculation ..................................................................................................... 34 7.0 GEOLOGICAL SETTING AND MINERALIZATION ................................................................................. 35 7.1 Regional Geology .................................................................................................................... 35 7.2 Local Geology And Potash Bearing Members ......................................................................... 39 7.2.1 Patience Lake Member ....................................................................................................... 43 7.2.2 Belle Plaine Member .......................................................................................................... 44 7.2.3 Esterhazy Member ............................................................................................................. 44 7.3 Geological Cross Sections ....................................................................................................... 48 7.4 Disturbances Affecting Geology Of The Potash Bearing Members ........................................ 50 7.5 Mineralization ......................................................................................................................... 52 7.5.1 Property Mineralization ..................................................................................................... 52 7.5.2 Favorable Solution Mining Conditions ............................................................................... 53 7.5.3 Carnallite Distribution ........................................................................................................ 54 7.6 Additional Mineralization Comments ..................................................................................... 54 Page 2 of 129 Technical Report Summarizing the Preliminary Feasibility Study for the February 28, 2013 Muskowekwan First Nations Project in South Eastern Saskatchewan 8.0 DEPOSIT TYPE ........................................................................................................................... 55 9.0 EXPLORATION .......................................................................................................................... 56 10.0 DRILLING ............................................................................................................................... 56 10.1 2011 Drilling Program......................................................................................................... 56 10.2 2011 Drilling Procedures .................................................................................................... 58 10.3 2011 Core Retrieval ............................................................................................................ 59 10.4 Geophysical Wireline Logging ............................................................................................ 61 11.0 SAMPLE PREPARATION, ANALYSIS AND SECURITY ........................................................................... 62 11.1 Geochemical Sampling ....................................................................................................... 62 11.2 Controls on Sample Interval Determination ...................................................................... 63 11.3 Sampling Method and Approach........................................................................................ 65 11.4 Sampling Method and Approach – For Geomechanical and Dissolution Samples............. 66 11.5 Sample Quantities and Dimensions: .................................................................................. 66 11.6 sample preparation, analysis, and security ........................................................................ 67 12.0 DATA VERIFICATION ................................................................................................................. 68 12.1 Assay-to-Gamma Data Verification ...................................................................................