Australian Potash Ltd (asx:apc) Final Feasibility Work Programs

Australian Potash Limited (ASX:APC) (APC or the Company) is pleased to advise the commencement of the final field programs of work in the Definitive Feasibility Study (DFS) of the Lake Wells Sulphate of Potash Project (Project).

Highlights:

- Resource finalisation

o Up to 3 further production wells to be developed to depths of between 140m and 170m

o 3 monitoring bores per production well to be drilled to plot aquifer response during pump-testing

o Long term pump testing of production wells confirming flow rates, which will in turn underpin the hydro-flow model for the bore-field design

o Diamond drilling to recover basement rock core and test permeability

o Down-hole geophysics across 30 of the deepest holes drilled at site to provide further confidence in the permeability of the sediment strata

- Evaporation pond construction program

o Trial evaporation ponds to be built on lake to assess design constructability and efficacy

- Environmental monitoring program to be finalised, which will feed into the Environmental Review Document

Managing Director and CEO, Matt Shackleton, commented: "Integral to any mineral project's success is the quality of the JORC Resource estimate underpinning it, and the Lake Wells SOP project is no different. Project developments of this nature have to demonstrate to the lowest level of risk, both longevity of production, and recoverability of minerals. A bore-field permits an easier assessment of at least the recoverability of brine, and is a well-tried and proven method for abstracting brine.

"Central to the final field program at Lake Wells is the push to a JORC Reserve estimate, and our focus is on building upon the more than 50,000 metres of drilling and already extensive database of testwork that comprises the existing, robust JORC Compliant SOP mineral resource estimate which contains over 12 million tonnes of gravity recoverable SOP at the Indicated level (see Note below).

"Developing more production wells, test-pumping them, and collecting bed-rock core for analysis are critical factors that will feed into the calculation of an Ore Reserve estimate for Lake Wells.

"APC's extensive geotechnical field and test-work at the Project have revealed the existence of a uniform, flat lying layer of low permeability clay at the lake surface that can accommodate 'on-playa' evaporation ponds. Because of this, we can avoid the large scale capital expenditure required to line the pre-concentration ponds with HDPE...