Form 6-K Nutrien Ltd. For: Feb 27

Form 6-K Nutrien Ltd. For: Feb 27

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See also Section 17.0.

14.0

MINERAL RESOURCE ESTIMATES

14.1

DEFINITIONS OF MINERAL RESOURCE

The Canadian Institute of Mining and Metallurgy and Petroleum (CIM) has defined Mineral Resource in The CIM Definition Standards for Mineral Resources and Reserves (2014) as:

Inferred Mineral Resource: that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity.

Indicated Mineral Resource: that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient

confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade quality continuity between points of observation.

Measured Mineral Resource: that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning and final evaluation of the economic viability of the deposit. Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points of observation.

CIM defines Modifying Factors as “considerations used to convert Mineral Resources into Mineral Reserves. These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors.”

In south-central Saskatchewan, where geological correlations are straightforward, and within a (potash) Subsurface Mineral Lease with an operating potash mine, Mineral Resource categories are generally characterized by PotashCorp as follows:

Inferred Mineral Resource: areas of limited exploration, such as areas that have been investigated through regional geological studies, or areas with 2D regional surface seismic coverage, little or no drilling, at some distance from underground workings, and within Crown Subsurface Mineral Lease KL 103 B.

Indicated Mineral Resource: areas of adequate exploration, such as areas with 3D surface seismic coverage, little or no drilling, at some distance from underground workings, and within Crown Subsurface Mineral Lease KL 103 B.

Measured Mineral Resource: areas of detailed, physical exploration through actual drilling or mine sampling, near existing underground workings, and within Crown Subsurface Mineral Lease KL 103 B.

The mine began production in 1968 and no further core drilling has been carried out since then. Instead, exploration involved collecting surface seismic data, which became better in quality over the years. Exploration drilling has demonstrated the presence of the potash horizon, and seismic coverage shows the continuity of the Prairie Evaporite Formation within which the potash horizon occurs.

authors believe that this approach provides a body of information that guides and constrains exploration inferences in a much better way than could be achieved from any conventional exploration investigation in areas immediately surrounding, and contiguous to, the Cory potash mine.

14.2 CORY POTASH RESOURCE CALCULATIONS

Exploration information used to calculate reported Mineral Resource tonnages at Cory consist of both physical sampling (drillhole and in-mine) and surface seismic (2D and 3D) as discussed in earlier sections. Based on the definitions and guidelines in Section 14.1, all mineral rights leased or owned by the Company, and within Crown Subsurface Mineral Lease KL 103 B, are assigned to one of the three Mineral Resource categories.

Mineral Resources are reported as mineralization in-place and are exclusive of Mineral Reserves. In-place tonnes were calculated for each of the Mineral Resource categories using the following parameters:


Mining Height:		3.35 metres (11 feet)

Ore Density:		2.110 tonnes / cubic metre (A Zone)

Ore Density:		2.120 tonnes / cubic metre (B Zone)

The Mineral Resources for Cory, as of December 31, 2018 are as follows:

Cory A Zone:


Inferred Resource	1,310	millions of tonnes
Indicated Resource	437	millions of tonnes
Measured Resource	983	millions of tonnes

Total A Zone Resource	2730	millions of tonnes

Cory B Zone:


Inferred Resource	1,316	millions of tonnes
Indicated Resource	439	millions of tonnes
Measured Resource	1,353	millions of tonnes

Total B Zone Resource	3108	millions of tonnes

Total for Cory (A Zone + B Zone):


Inferred Resource	2,626	millions of tonnes
Indicated Resource	876	millions of tonnes
Measured Resource	2,336	millions of tonnes

Total A Zone + B Zone Resource	5,838	millions of tonnes

Cory Mineral Resources are plotted in Figure 19.

The average mineral grade of the Cory A Zone Mineral Resource is 22.5% K₂0 equivalent, and was determined from 4,590 in-mine samples at Cory. The average mineral grade of the Cory B Zone Mineral Resource is 20.3% K₂0 equivalent, and was determined from 20,230 in-mine samples at Lanigan mine where the B Zone has been extensively mined. See Section 11.2 for more detail.

The tonnage reported in the Cory A Zone Measured Resource is comprised of the potash that is within 1.6 km (1 mile) of a physically sampled location (i.e. drillholes or mine workings). Also included as Measured Resource is the potash that is left behind as pillars in mined-out areas of the Cory mine. In a potash mine, it is common practice to consider mining remnant pillar mineralization using solution methods after conventional mining is complete, or after a mine is lost to flooding. The Patience Lake mine was successfully converted from a conventional mine to a solution mine after being lost to flooding in 1989. Since conversion to a solution mine is not anticipated in the near future at Cory, in-place pillar mineralization remains as a Mineral Resource rather than a Mineral Reserve at this time.

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Figure 19: Map showing Cory Mineral Resource with mine workings to December 2018.

15.0

MINERAL RESERVE ESTIMATES

15.1

DEFINITIONS OF MINERAL RESERVE

The Canadian Institute of Mining and Metallurgy and Petroleum (CIM) has defined Mineral Reserve in The CIM Definition Standards for Mineral Resources and Reserves (2014) as:

Probable Mineral Reserve: the economically mineable part of an Indicated, and in some circumstances, a Measured Mineral Resource. The confidence in the Modifying Factors applying to a Probable Mineral Reserve is lower than that applying to a Proven Mineral Reserve.

Proven Mineral Reserve: the economically mineable part of a Measured Mineral Resource. A Proven Mineral Reserve implies a high degree of confidence in the Modifying Factors.

For Saskatchewan, in regions adjacent and contiguous to an operating potash mine, Mineral Reserve categories are characterized by PotashCorp as follows:

Probable Mineral Reserve: identified recoverable potash mineralization classified as a Measured Resource, within a 1.6 km (1 mile) radius of a sampled mine entry or exploration drillhole, and within Crown Subsurface Mineral Lease KL 103 B.

Proven Mineral Reserve: identified recoverable potash mineralization classified as a Measured Resource, delineated on at least three sides by sampled mined entries or exploration drillholes to a maximum of 3.2 km (2 miles) apart, and within Crown Subsurface Mineral Lease KL 103 B.

Along with this approach, analysis of in-mine samples for potash grade has provided an observation-based understanding of the potash mineralized zone at Cory that is far superior to the level of understanding provided by any surface drilling based exploration program. An understanding of the amount of ore that can be conventionally mined from the Measured Resource category using current mining practices comes from nearly 50 years of potash mining experience at Cory.

15.2

CORY POTASH RESERVE CALCULATIONS

Using the definitions outlined in Section 15.1, part of the Cory A Zone Measured Resource has been converted to Mineral Reserve. The assigned Mineral Reserve category is dependent on proximity to sampled mined entries also described in Section 15.1. An overall extraction rate

for the Cory mine has been applied to the area outlined as Measured Resource in Figure 19. This extraction rate is significantly lower than the local extraction rate described in Section 16.1, as it takes into account areas which cannot be mined due to unfavorable geology.

The overall extraction rate at the Cory mine is 27%. It was derived by dividing the total tonnes mined to date by the tonnage equivalent of the total area of the mine workings (i.e. the perimeter around the mine workings) less future mining blocks. Since an extraction rate has been applied, Mineral Reserves are considered recoverable ore, and are reported as such.

The Mineral Reserves for Cory as of December 31, 2018 are as follows:

Cory A Zone:



Probable Reserve	171	millions of tonnes
Proven Reserve	77	millions of tonnes

Total A Zone Reserve	248	millions of tonnes

Cory B Zone:


Probable Reserve			nil
Proven Reserve			nil

Total B Zone Reserve			nil

Total for Cory (A Zone + B Zone):


Probable Reserve	171	millions of tonnes
Proven Reserve	77	millions of tonnes

Total A Zone and B Zone Reserve	248	millions of tonnes

Cory Mineral Reserves are plotted in Figure 20.

The average mineral grade of the Cory A Zone Mineral Reserve is 22.5% K₂0 equivalent, and was determined from 4,590 in-mine samples at Cory.

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Figure 20: Map showing Cory Mineral Reserve with mine workings to December 2018.

16.0

MINING METHOD

16.1

MINING OPERATIONS

All conventional potash mines in Saskatchewan operate at 900 m to 1200 m below surface within 9 m to 30 m of the top of the Prairie Evaporite Formation. Over the scale of any typical Saskatchewan potash mine, potash beds are tabular and regionally flat-lying, with only moderate local variations in dip. At Cory, potash ore is mined using conventional mining methods, whereby:

•

Shafts are sunk to the potash ore body;

•

Continuous mining machines cut out the ore, which is hoisted to surface through the production shaft;

•

Raw potash is processed and concentrated in a mill on surface; and

•

Concentrated finished potash products (near-pure KCl) are sold and shipped to markets in North America and offshore.

Sinking of the two original shafts (Shaft #1 and Shaft #2) from surface to the potash zone was completed in 1968, and the first potash ore was hoisted in the fall of that year. The Cory mine has run on a continuous basis since the first ore was hoisted in 1968, other than short-term shutdowns taken for inventory management purposes or occasional plant maintenance and construction work.

In recent years, the Cory mine underwent a major expansion which brought the nameplate capacity up to 3.0 million tonnes of finished potash products per year. However, in 2014 the operational capability of the Cory facility was reduced to 1.4 million tonnes per year due to market conditions. In October 2017, Cory reverted to a pure crystallization plant producing only white potash products, and further curtailing production to 0.8 million tonnes per year.

Virtually all Cory underground mining rooms are in one potash mineralized zone, the upper layer (or A Zone) of the Patience Lake Member of the Prairie Evaporite Formation (the host evaporite salt). In contrast, some potash mines further east in Saskatchewan mine in a different potash layer, the Esterhazy Member of the Prairie Evaporite Formation. Saskatchewan potash geology is illustrated in Figure 21. At Cory, mine elevations range from approximately 980 m to 1045 m, averaging approximately 1010 m. These depths to A Zone potash mineralization are anticipated over most of the Cory lease area. Mine workings are protected from aquifers in overlying formations by approximately 14 m of overlying salt and potash beds, along with salt plugged porosity in the Dawson Bay Formation, a carbonate layer lying immediately above potash hosting salt beds.

The Cory mine is a conventional underground mining operation whereby continuous mining machines are used to excavate the potash ore by the stress-relief mining method. Continuous conveyor belts transport ore from the mining face to the bottom of the production shaft. Mining methods employed in Saskatchewan are discussed in Jones and Prugger (1982) and in

Gebhardt (1993). The highest mineral grade section of the Cory potash seam is approximately 3.35 m (11’) thick, with gradations to lower grade salts immediately above and below the mining horizon. The actual mining thickness at Cory is dictated by the height of continuous boring machines used to cut the ore. Five older borers are designed to cut at a thickness of 3.35 m (11’) and five new borers are designed to cut 3.65 m (12’).

As discussed in Section 10.0, Cory cuts to a marker (clay) seam that is slightly above the high-grade mineralized zone to establish a safe and stable mine roof. The top marker seam is slightly overcut by 10 to 20 cm. Clay seams are often planes of weakness, and if they are undercut, material immediately below the clay seam becomes a hazard as it may separate and fall. Since the hazard must be remediated prior to proceeding, thus slowing production, the moderately diluted mineral grade that results from the overcutting is preferable from a safety point of view.

LOGO

Figure 21: Typical stratigraphic section correlated with composite photos covering both the Patience Lake Member and the Esterhazy Member potash production intervals. At Cory, mining takes place in the Upper Patience Lake Member (A Zone).

Conservative local extraction rates (never exceeding 45% in any mining block) are employed at all Saskatchewan mines, including Cory, in order to minimize potential detrimental effects of

mining on overlying strata; this is common practice in flat-lying, tabular ore bodies overlain by water-bearing layers.

From the shaft bottom, potash ore is hoisted approximately 1000 m from the potash level through the vertical shafts to a surface mill. In addition to hoisting potash ore to surface, the production shaft provides fresh air ventilation to the mine and serves as a secondary egress. The Service Shaft is used for service access, and exhausting ventilation from the mine.

Actual potash production tonnages for the Cory mine, along with concentration ratios (tonnes-mined / tonnes-product), are plotted for the past decade in Figure 22.

LOGO

Figure 22: Actual mining, production and concentration ratio for the Cory mine over the past 10 years.

16.2

RISKS TO POTASH MINING OPERATIONS, WITH EMPHASIS ON WATER INFLOWS

The mining of potash is a capital-intensive business, subject to the normal risks and capital expenditure requirements associated with mining operations. The production and processing of ore may be subject to delays and costs resulting from mechanical failures and such hazards as unusual or unexpected geological conditions, subsidence, water inflows of varying degree, and other situations associated with any potash mining operation.

Potash beds in all regions of Saskatchewan are overlain by a number of water-bearing formations, and there are water zones underlying the potash beds as well. A water inflow into mine workings is generally significant in a potash mine since salt dissolves in water; an inflow can lead to anything from increased costs at best to closure of the mine at worst (e.g. see Prugger and Prugger, 1991).

Over the past 50 years of mining at Cory, there have been numerous small brine inflows into underground workings. Each new inflow is treated with concern and appropriately investigated, and all active inflow sites are monitored as long as areas of interest can be accessed. However, the seepages have generally proven to be no more than a minor nuisance to underground operations. Flow rates in the mine vary from place to place and with time, but current rates are rarely higher than approximately 200 litres / minute at any one location. At present, inflows are being monitored at nine underground locations at Cory. The flow rate at two of these inflow locations is derived from sump pump rates which are approximately 300 litres / minute and 24 litres / minute. The rate of inflow is being directly measured at the seven other inflow locations; one site at a rate approximately 4 litres / minute, and the remaining six locations at a rate of less than 1 litre / minute.

To date, there has been no ingress of subsurface brines of any significance at Cory. At present, the total flow into Cory mine workings from all sites is estimated at 324 litres / minute. Brine from these inflows is collected underground, then pumped up to surface for disposal in the Tailings Management Area. Total inflows into the existing shafts is estimated at 40 litres / minute.

17.0

RECOVERY METHODS

At Cory, potash ore has been mined and concentrated to produce saleable quantities of high-grade finished potash products since 1968. At present, only concentrated white potash products (near-pure KCl) are produced at Cory; these include high-grade specialized white soluble potash, white granular, chicklets, and prills. These products have industrial, agricultural, and feed applications.

The crystallization method is used to concentrate potash ore into finished potash products at the Cory mill. A simplified process flow diagram is shown in Figure 23. Raw potash ore is processed on surface, and concentrated white potash products are sold and shipped to markets

in North America and offshore.

LOGO

Figure 23: Simplified flow diagram for potash crystallization milling methods used at Cory.

Over the past three years, production of finished potash products at Cory was:

2016: 1.241 million tonnes finished potash products at 61.56% K₂O (average grade)

2017: 0.988 million tonnes finished potash products at 61.96% K₂O (average grade)

2018: 0.810 million tonnes finished potash products at 62.63% K₂O (average grade)

Over the past decade, actual mill recovery rates have been between 66.4% and 75.6%, averaging 72.5% (see Figure 24). Mill recoveries at Cory are lower than at other Nutrien plants because a larger portion (now all) of Cory’s total production is made through the crystallization process.

Given the long-term experience with potash geology and actual mill recovery at Cory, no fundamental potash milling problems are anticipated in the foreseeable future.

Quality control testing and monitoring geared towards fine-tuning and optimizing potash milling and concentrating processes are conducted on a continual basis at all Nutrien minesites and at Nutrien research facilities. At Cory, this is no exception; test work to optimize circuit performance and ensure product quality is carried out on an ongoing basis.

LOGO

Figure 24: Cory mill recovery rate over the past 10 years.

18.0

PROJECT INFRASTRUCTURE

Infrastructure is in place to meet current and projected requirements for transportation, energy (electricity and natural gas), water and process materials at Cory. See also Section 5.0.

The Cory mine is served by a number of villages within 50 kilometres of the minesite. The nearest city is Saskatoon (approximately 7 km distant).

The Cory surface facilities are accessed by existing paved roads and highways that are part of the Saskatchewan Provincial Highway System. All potash product is shipped by rail over existing track.

At present, high voltage power capacity at Cory is 52 MVA. The ten-year projection of power utilization indicates that the utility can meet all foreseeable future demand.

The Cory operation requires a sustained fresh water supply for the milling process which is provided by a waterline from the South Saskatchewan River (approximately 10 km distant). This water supply provides a sustainable source of process water for Cory milling operations without having any impact on other users of water in the area.

19.0

MARKET STUDIES AND CONTRACTS

Potash from Company mines (including Cory) has been sold on a continuous basis since mining began in 1968. At present, Nutrien products are sold in more than 50 countries, to three types of end-use:

Fertilizer, focused on balanced plant nutrition to boost crop yields in order to meet the world’s ever-increasing appetite for food (nitrogen, phosphate, potash)

Feed Supplements, focused on animal nutrition (mainly phosphate)

Industrial, focused on products for high-grade food, technical and other applications (nitrogen, phosphate, as phosphoric acid, potash)

The Company owns and operates six potash mines in Saskatchewan and owns one potash mine in New Brunswick, Canada. The potash mine in New Brunswick is currently in care-and-maintenance mode and is planned to be permanently shut down. Over the past three years (2016, 2017, 2018) the Company had potash sales of 30.959 million tonnes¹. Historical Company potash sales data for the past 10 years are plotted in Figures 25 and 26¹.

Potash is mainly used for fertilizer, which typically makes up approximately 90 percent of the company’s annual potash sales volumes. By helping plants develop strong root systems and retain water, it enhances yields and promotes greater resistance to disease and insects. Because it improves the taste and nutritional value of food, potash is often called the “quality nutrient.” Industrial applications of potash include use in soaps, water softeners, de-icers, drilling muds and food products.

Potash fertilizer is sold primarily as solid granular and standard products. Granular product has a larger and more uniformly shaped particle than standard product and can be easily blended with solid nitrogen and phosphate fertilizers. It is typically used in more advanced agricultural markets such as the US and Brazil.

Most major potash consuming countries in Asia and Latin America have limited or no indigenous production capability and rely primarily on imports to meet their needs. This is an important difference between potash and the other major crop nutrient businesses. Trade typically accounts for approximately three-quarters of demand for potash, which ensures a globally diversified marketplace.

The most significant exporters are producers with mines in the large producing regions of Canada, the Middle East and the former Soviet Union, which all have relatively small domestic requirements.

World consumption of potash fertilizer has grown over the last decade, with the primary growth regions being developing markets in Asia and Latin America. These are countries with expanding crop production requirements, where potash has historically been under-applied and crop yields lag behind those of the developed world. Although temporary pauses can occur in certain countries, the underlying fundamentals of food demand that encourage increased potash application are expected to continue the growth trends in key importing countries See Figure 27 for world potash production and demand in 2017.

¹	Company potash sales data for years prior to 2018 includes only PotashCorp sales.

LOGO

Figure 25: Historical Company potash sales 2009 to 2018 in million tonnes / year ².

LOGO

Figure 26: Historical Company potash net sales 2009 to 2018 in million USD $ / year ².

²	Company potash sales data for years prior to 2018 includes only PotashCorp sales.

LOGO

Figure 27: World potash production and demand for 2017.

Potash is used on many agricultural commodities. Wheat, rice, corn, oilseed, and sugar crops consume over half of the potash used worldwide. Fruits and vegetables are also important users of potash fertilizers, accounting for about 19 percent of the total consumption. The remainder goes to other consumer and industrial crops such as oil palm, rubber, cotton, coffee, and cocoa. See Table 4 for primary potash market profile. This diversity means that global potash demand is not tied to the market fundamentals for any single crop or growing region.


Table 4: Primary Potash Market Profile


Country/Region	Growth Rate*			Key Consuming Crops
China		8.1	%	Vegetables, rice, fruits, corn
India		4.9	%	Rice, wheat, vegetables, sugar crops
Other Asia		4.1	%	Oil palm, rice, sugar crops, fruits, vegetables
Latin America		3.4	%	Soybeans, sugar crops, corn
North America		2.1	%	Corn, soybeans

* 5-year CAGR for consumption (2013-2018E)

Global potash shipments surpassed 66 million tonnes in 2018, an increase of more than 1 million tonnes from the previous record set in 2017. Potash demand has grown at an annualized rate of more than 4 percent over the past 5 years, well above the long-term average

of 2.5 to 3.0 percent. This growth is driven by strong potash consumption trends in all major potash markets.

North American and South American growers applied significant amounts of potash to replenish soil nutrients removed by large harvests. Potash application rates are increasing in China and Southeast Asian countries as a result of increased soil testing and improved agronomic practices. Growers in these countries are also increasing acreage of potassium-intensive crops such as fruits, vegetables and oil palm. India continues to face political barriers to significantly growing potash demand, however, the agronomic need and willingness of farmers to improve yields persists. The Company believes that supportive agriculture fundamentals and the need to address declining soil fertility levels will enable strong demand growth in the years ahead. World potash shipments and consumption in recent years is shown in Figure 28.

LOGO

Figure 28: World potash shipments and consumption, 2013-2018E.

Canpotex Limited (Canpotex), the offshore marketing company owned by the Company and other Saskatchewan potash producers, handles all sales, marketing and distribution of potash produced by its member companies to customers outside of the US and Canada (including the potash produced at Allan).

In North America, Nutrien sells potash to retailers, cooperatives, and distributors, who provide storage and application services to farmers, the end-users. This includes sales to Nutrien’s retail distribution business, which has the largest retail distribution network in North America. Typically, the Company’s North American potash sales are larger in the first half of the year.

The primary customers for potash fertilizer products for the Cory operation are retailers, dealers, cooperatives, distributors and other fertilizer producers who have both distribution and application capabilities.

Nutrien’s market research group provides management with market information on a regular basis including global agriculture and fertilizer markets, demand and supply in fertilizer markets and general economic conditions that may impact fertilizer sales. These may include specific market studies and analyses on different topics as may be required. This information is reviewed on a regular basis and the author of this report takes this information into account in understanding the markets and the assumptions within this report.

Plans and arrangements for potash mining, mineral processing, product transportation, and product sales are established by Nutrien and are within industry norms.

20.0

ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT

The tailings management strategy at all Nutrien potash mines in Saskatchewan, including Cory, is one of sequestering solid mine tailings in an engineered and provincially licenced Tailings Management Area (TMA) near the surface plant site. The Cory TMA currently covers an area of approximately 416 hectares (1027 acres) of land owned by the Company. Solid potash mine tailings typically consist of 85% to 95% rock-salt (NaCl) and 5% to 15% insolubles (carbonate mud = CaCO₃, anhydrite mud = CaSO₄, and clays like chlorite, illite, and so on). An engineered slurry-wall has been constructed on the north, west, and south sides of the Cory TMA in the areas where near-surface aquifers could be impacted by mine waters. Near-surface geology to the east of the TMA limits the possibility of brine migration into these areas. The slurry-wall provides secondary containment of any saline mine waters, stopping these brines from reaching surrounding near-surface aquifers. Areas surrounding the TMA are closely monitored; this includes everything from daily visual perimeter inspections to annual investigations and inspections of surrounding groundwater and aquifers.

Cory currently operates four brine disposal wells near the surface plant of the Cory mine (marked in Figure 12) where clear salt brine (i.e. no silt, clay-slimes, or other waste) is borehole-injected into the Winnipeg / Deadwood Formations, deep subsurface aquifers approximately 1500 m to 1700 m below surface (marked in Figure 13). The groundwater in these extensive deep aquifers is naturally saline.

Emissions to air (mostly salt dust and potash dust) are kept below regulatory limits through various modern air pollution abatement systems (e.g. dust collection systems built into mill processes) that are provincially licensed. This same procedure is followed at all Nutrien mines in Saskatchewan.

The Cory operation requires a sustained fresh water supply for the milling process which is provided by a waterline from the South Saskatchewan River (approximately 10 km distant). This water supply is provincially licensed and provides a sustainable source of process water for Cory milling operations without having any impact on other users of water in the area.

In Saskatchewan, all potash tailings management activities are carried out under an “Approval to Operate” granted by the Saskatchewan Ministry of Environment (MOE), the provincial regulator. The Cory mine is in compliance with all regulations stipulated by the Environmental Protection Branch of MOE. The current Cory Approval to Operate has been granted to July 1, 2028, the renewal date.

In terms of long-term decommissioning, environmental regulations in the Province of Saskatchewan require that all operating potash mines in Saskatchewan create a long-term decommissioning and reclamation plan that will ensure all surface facilities are removed, and the site is left in a chemically and physically stable condition once mine operations are complete. PotashCorp has conducted numerous studies of this topic, and the most recent decommissioning and reclamation plan for Cory was approved by MOE technical staff in October 2016. Because the current expected mine life for Cory is many decades into the future, it is not meaningful to come up with detailed engineering designs for decommissioning at present. Instead, decommissioning plans are reviewed every five years, and updated to accommodate new ideas, technological change, incorporation of new data, and adjustments of production forecasts and cost estimates. Any updated decommissioning and reclamation reports generated by this process are submitted to provincial regulatory agencies. For Cory, a revised decommissioning and reclamation plan is required in July 2021.

In addition to the long-term decommissioning plan, provincial regulations require that every potash producing company in Saskatchewan set up an Environmental Financial Assurance Fund, which is to be held in trust for the decommissioning, restoration and rehabilitation of the plant site after mining is complete. This fund is for all mines operated by Nutrien in the province of Saskatchewan (i.e. Allan, Cory, Lanigan, Patience Lake, Lanigan, Rocanville, and Vanscoy).

21.0

CAPITAL AND OPERATING COSTS

The Cory mine has been in operation since 1968; in the years immediately preceding this, major capital investment was made to bring this mine into production. Since then, capital expenditures were made on a regular and ongoing basis to sustain production, and to expand production from time to time.

A major refurbishment and expansion of the Cory mine was completed in 2012, increasing nameplate capacity to 3.0 million tonnes of finished potash products per year. This work involved enhancement of hoists and shaft conveyances, major expansions of both mine and mill, improvements to loadout facilities, and some infrastructure improvements. Total capital expenditure for this expansion work was CAD $1.65 billion. All construction was carried out without significant disruption to existing potash production from the site.

In October 2017, Cory reverted to a pure crystallization plant producing only white potash products, and further curtailing production to 0.8 million tonnes per year.

22.0

ECONOMIC ANALYSIS

22.1

FUNDAMENTALS

The Company conducts ongoing and detailed economic analyses on each of its operations and on all aspects of its business. While the Company considers its operating costs and results on a per mine basis to be competitively sensitive and confidential information, the Company is confident that the economic analysis conducted routinely for each of the Company’s operating potash mines is complete, reasonable, and meets industry standards.

On a cash flow basis, the Company’s potash segment generated USD $5,702 million in net sales over the past three years (2016, 2017 and 2018) based on sales volume of 30.959 million tonnes of finished potash products³. The annual average realized potash price for manufactured products (includes North American and offshore sales) over a 10-year period (2009 – 2018) is plotted in Figure 29.

Over the past three years (2016, 2017, and 2018) the Allan mine produced 3.038 million tonnes of finished potash products. In the past three years (2016, 2017, and 2018), the Cory mine accounted for 8% of total potash production at the Company over this time period. Cory is currently making a positive contribution to the Company’s potash segment.

Given the Company’s previous history (including 50 years of mining at the Cory operation), recent market conditions, and extensive reserve base, the economic analysis for Cory has met the Company’s internal hurdle rates.

³	Company potash sales data for years prior to 2018 includes only PotashCorp sales.

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Figure 29: Historic annual average realized potash price in USD / tonne ⁴.

22.2

TAXES

Royalties are paid to the Province of Saskatchewan, which holds approximately half of the mineral rights in the Cory Crown Subsurface Mineral Lease. Royalties from non-Crown lands are paid to various freeholders of mineral rights in Saskatchewan. The crown royalty rate is 3% and is governed by The Subsurface Mineral Royalty Regulations, 2017. The actual amount paid is dependent on selling price and production tonnes.

Municipal taxes are paid based on site property values.

Saskatchewan potash production is taxed at the provincial level under The Mineral Taxation Act, 1983. This tax, governed by The Potash Production Tax Regulations, consists of a base payment and a profit tax, collectively known as the potash production tax. As a resource corporation in the Province of Saskatchewan, Nutrien is also subject to a resource surcharge that is a percentage of the value of its resource sales (as defined in The Corporation Capital Tax Act of Saskatchewan).

In addition to this, Nutrien pays federal and provincial income taxes based on corporate profits from all its potash operations in Canada.

⁴	Company annual average realized potash price for years prior to 2018 includes only PotashCorp sales.

23.0

ADJACENT PROPERTIES

The Company Cory Lease KL 103 B is adjacent to the following potash dispositions (Figure 30).

Producing Subsurface Mineral Leases:

•

Company Patience Lake Potash KL 109 A

•

Company Allan Potash KL 112R A

•

Agrium Vanscoy Potash KL 114 A & KL 204

Non-producing Potash Exploration Permits and Subsurface Mineral Leases:

•

BHP Billiton Canada Inc.

•

Canada United Potash Ltd.

For up-to-date information on Crown Potash Leases and Exploration Permits, see the Saskatchewan Mining and Petroleum GeoAtlas which is available online at the Government of Saskatchewan website.

Nutrien, indirectly through Agrium, operates a mine with extensive underground workings within Potash Lease areas KL 114 and KL 204, which are immediately adjacent to Cory Lease area KL 103 B. A safety buffer exists between the two mines where no mining will occur. This buffer ensures that mine workings at one operation will not impact mine workings at the other.

LOGO

Figure 30: Potash properties adjacent to Cory Potash.

24.0

OTHER RELEVANT DATA AND INFORMATION

Not applicable.

25.0

INTERPRETATION AND CONCLUSIONS

PotashCorp has a long history of successful potash mining at Cory, where potash has been produced for the past 50 years. The Company believes that the experience gained mining and milling potash for this length of time has produced a reliable body of information about potash mineralization, mining and milling at Cory.

In a Saskatchewan potash mine that has been producing for many decades, reduction of mine life through increased production is counter-balanced by development mining into new mineral land parcels. This increases mine life through increasing the potash Mineral Reserve.

For Cory, mine life can be estimated by dividing the total Mineral Reserve (Proven + Probable) of 248 million tonnes by the average annual mining rate (million tonnes of ore hoisted per year). For Cory, the mining rate is defined as equal to the actual three-year running average (consecutive, most recent years). The average mining rate at Cory over 2016, 2017 and 2018 was 3.55 million tonnes of potash ore mined and hoisted per year.

If this mining rate is sustained and if Mineral Reserves remain unchanged, then the Cory mine life would be 70 years.

This estimate of mine life is likely to change as mining advances further into new mining blocks, and / or if mining rates change.

26.0

RECOMMENDATIONS

Not applicable for a potash mine that has been in operation since 1968.

27.0

REFERENCES

Companion Policy 43-101CP to National Instrument 43-101 Standards of Disclosure for Mineral Projects (2011). Retrieve this and related documents from many websites (e.g. CIM: http://web.cim.org/standards/documents/Block484_Doc111.pdf).

The CIM Definition Standards for Mineral Resources and Reserves (2014). Retrieve this and related documents from many websites (e.g. Committee for Mineral Reserves International Reporting Standards, http://www.crirsco.com/national.asp).

Fuzesy, Anne (1982). Potash in Saskatchewan (44p). Saskatchewan Industry and Resources Report 181.

Gebhardt, E. (1993). Mine planning and design integration, CIM Bulletin, May 1993, pp. 41 – 49.

Government of Saskatchewan (2018). Saskatchewan Mining and Petroleum GeoAtlas. https://gisappl.saskatchewan.ca/Html5Ext/index.html?viewer=GeoAtlas. Accessed Jan 2019.

Government of Saskatchewan (2018). The Corporation Capital Tax Act of Saskatchewan. Available online at http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/c38-1.pdf.

Government of Saskatchewan (2018). The Mineral Taxation Act, 1983. Available online at http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/M17-1.pdf.

Government of Saskatchewan (2018). The Subsurface Mineral Royalty Regulations, 2017. Available online at http://publications.gov.sk.ca/details.cfm?p=88223&cl=8.

Government of Saskatchewan (2018). The Subsurface Mineral Tenure Regulations, 2015. Available online at http://www.publications.gov.sk.ca/details.cfm?p=72797.

Jones, P. R. and F. F. Prugger (1982). Underground mining in Saskatchewan potash. Mining Engineering, 34, pp. 1677 – 1683.

Prugger, F. F. and A. F. Prugger (1991). Water problems in Saskatchewan potash mining – what can be learned from them? Bulletin of the Canadian Institute of Mining and Metallurgy (CIM Bulletin), Vol. 84, No. 945, pp. 58 – 66.

Robertson, David S. and Associates (1976). Evaluation of the Saskatoon Property of Duval Corporation of Canada. Unpublished consultant’s report to Potash Corporation of Saskatchewan Inc..

Robertson, David S. and Associates (1978). Summary Report on Evaluation of Potash Assets for Potash Corporation of Saskatchewan. Unpublished consultant’s report to Potash Corporation

of Saskatchewan Inc.

Exhibit 99.2

NUTRIEN LTD.

ROCANVILLE POTASH

NATIONAL INSTRUMENT 43-101 TECHNICAL REPORT ON

ROCANVILLE POTASH DEPOSIT (KL 305),

SASKATCHEWAN, CANADA

FEBRUARY 20, 2019

LOGO

NUTRIEN LTD.

GEOSERVICES & LAND- ENGINEERING, TECHNOLOGY & CAPITAL

500 – 122 FIRST AVENUE SOUTH

SASKATOON, SASKATCHEWAN, CANADA

S7K 7G3

QUALIFIED PERSON: CRAIG FUNK, P. ENG., P. GEO.

DATE AND SIGNATURE PAGE


		/s/ “Craig Funk”
Signature		Craig Funk, P. Eng., P. Geo.
		Director, GeoServices & Land
		Nutrien Ltd.

Date		February 20, 2019

AUTHOR PAGE

Craig Funk, B. Sc., M.Sc., P. Eng., P. Geo. (APEGS Member # 16034)

•

Director, GeoServices & Land—Engineering, Technology & Capital

•

B. Sc. (Geological Engineering – Geophysics), University of Saskatchewan, Saskatoon, Saskatchewan, Canada, 1989

•

M. Sc. (Geophysics), University of Saskatchewan, Saskatoon, Saskatchewan, Canada, 1992

•

with Nutrien or its subsidiaries since 2008

is the qualified person who supervised the preparation of all information presented in this report and who verified the data disclosed herein.

The team of persons who conducted the majority of the work presented in this report consists of:

Jodi Derkach, B. Sc., Cert. GIS, P. Geo. (APEGS Member # 14897)

•

Manager, Land & Resources—Engineering, Technology & Capital

•

B. Sc. (Geology), University of Saskatchewan, Saskatoon, Saskatchewan, Canada, 2007

•

Geographic Information Science for Resource Management Certificate, Saskatchewan Polytechnic, Prince Albert, Saskatchewan, Canada, 2010

•

with Nutrien or its subsidiaries since 2010

Lisa MacKenzie, Cert. GIS

•

Land & GIS Analyst—Engineering, Technology & Capital

•

Geographic Information Science for Resource Management Certificate, Saskatchewan Polytechnic, Prince Albert, Saskatchewan, Canada, 2012

•

with Nutrien or its subsidiaries since 2012

TABLE OF CONTENTS


DATE AND SIGNATURE PAGE		2

AUTHOR PAGE		3

TABLE OF CONTENTS		4

LIST OF FIGURES		6

LIST OF TABLES		8

1.0	SUMMARY	9

2.0	INTRODUCTION	13

3.0	RELIANCE ON OTHER EXPERTS	14

4.0	PROPERTY DESCRIPTION AND LOCATION	14

4.1	GENERAL	14

4.2	MINERAL RIGHTS	18

5.0	ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY	21

6.0	HISTORY	23

7.0	GEOLOGICAL SETTING AND MINERALIZATION	23

8.0	DEPOSIT TYPE	26

9.0	EXPLORATION	27

10.0	DRILLING	35

11.0	SAMPLING METHOD AND APPROACH	39

11.1	BASIC APPROACH	39

11.2	MEAN POTASH MINERAL GRADE FROM IN-MINE SAMPLES	44

11.3	POTASH ORE DENSITY FROM IN-MINE MINERAL GRADE MEASUREMENTS	45

12.0	DATA VERIFICATION	47

12.1	ASSAY DATA	47



12.2	EXPLORATION DATA	48

13.0	MINERAL PROCESSING AND METALLURGICAL TESTING	49

14.0	MINERAL RESOURCE ESTIMATES	49

14.1	DEFINITIONS OF MINERAL RESOURCE	49

14.2	ROCANVILLE POTASH RESOURCE CALCULATIONS	50

15.0	MINERAL RESERVE ESTIMATES	53

15.1	DEFINITIONS OF MINERAL RESERVE	53

15.2	ROCANVILLE POTASH RESERVE CALCULATIONS	53

16.0	MINING METHOD	56

16.1	MINING OPERATIONS	56

16.2	RISKS TO POTASH MINING OPERATIONS, WITH EMPHASIS ON WATER INFLOWS	61

17.0	RECOVERY METHODS	61

18.0	PROJECT INFRASTRUCTURE	63

19.0	MARKET STUDIES AND CONTRACTS	64

20.0	ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT	69

21.0	CAPITAL AND OPERATING COSTS	70

22.0	ECONOMIC ANALYSIS	71

22.1	FUNDAMENTALS	71

22.2	TAXES	72

23.0	ADJACENT PROPERTIES	73

24.0	OTHER RELEVANT DATA AND INFORMATION	75

25.0	INTERPRETATION AND CONCLUSIONS	75

26.0	RECOMMENDATIONS	75

27.0	REFERENCES	76

LIST OF FIGURES

Unless otherwise noted, figures for which a source and / or date are not provided are current as of the effective date of this report and were prepared by the Company.


Figure 1: Aerial photo of Rocanville surface operations, fall 2015.		10

Figure 2: Actual finished potash products production from the Rocanville mine over the past 10 years (in million tonnes per year).		12

Figure 3: Map showing location of Nutrien Operations, including Rocanville.		15

Figure 4: Map showing Rocanville Potash relative to Saskatchewan potash mineralization (pink). Also shown are Company (green) and other (purple) Crown Subsurface Mineral Leases (Saskatchewan Mining and Petroleum GeoAtlas).		17

Figure 5: Map showing Rocanville Crown Lease KL 305 (blue), Unit Area #1 (green), and Unit Area #2 (orange).		20

Figure 6: Map showing infrastructure (towns, rivers, roads, and railways) near Rocanville Potash. Rocanville shaft locations are shown in red and purple.		22

Figure 7: Thickness of the Prairie Evaporite Formation and area of potash distribution within these salts (from Fuzesy, 1982).		24

Figure 8: Diagrammatic vertical section showing basic layered-Earth stratigraphy in a typical Saskatchewan potash region (from Fuzesy, 1982).		25

Figure 9: Schematic cross-section across southern Saskatchewan of the Prairie Evaporite Formation showing relative position of potash members. At Rocanville, potash is mined from the Esterhazy Member, labeled “EM” (from Fuzesy, 1982).		27

Figure 10: Potash exploration at Rocanville (2D & 3D surface seismic and drillholes deeper than 750 m).		29

Figure 11: Air photo showing the Rocanville Mine surface operations and Tailings Management Area.		30

Figure 12: Air photo showing the Scissors Creek surface operations.		31

Figure 13: Seismic section from the Rocanville 2007 3D seismic data volume showing relative rock velocities of fast (red), slow (blue) and in between (white/pink). Vertical exaggeration is 2X, Sea Level (SL) is marked in metres, and major geological units are labeled.		33


Figure 14: Detail of seismic section from the Rocanville 3D seismic data volume (see text for explanation). Mine room is marked in yellow. Ground surface is at approximately +500 m above Sea Level.		34

Figure 15: Drilling of pilot hole at the Scissors Creek shaft site in April 2009 (photo by K. Weedmark, Moosomin World Spectator).		36

Figure 16: 82.6 mm (3¹⁄₄”) diameter potash core from drillhole PCS Tantallon 08-02-18-32 W1. The top of the best 2.59 m (8.5’) potash interval for this drillhole is indicated by the yellow arrow at 1035.41 m depth, and the base of the interval is indicated by the red arrow at 1038.00 m. The blue line highlights the best 2.59 m potash interval.		41

Figure 17: Potash assay plot for drillhole PCS Tantallon 08-02-18-32 W1 indicating the best 2.59 m (8.5’) mining interval.		42

Figure 18: Histogram of potash ore grade from 39,245 Rocanville in-mine samples.		44

Figure 19: Map showing Rocanville Mineral Resource with mine workings to December 2018.		52

Figure 20: Map showing Rocanville Mineral Reserve with mine workings to December 2018.		55

Figure 21: Typical stratigraphic section correlated with composite photos covering both the Patience Lake Member and the Esterhazy Member potash production intervals. At Rocanville, mining takes place in the Esterhazy Member.		58

Figure 22: Actual mining, production and concentration ratio for the Rocanville mine over the past 10 years.		60

Figure 23: Simplified flow diagram for potash flotation and crystallization milling methods used at Rocanville.		62

Figure 24: Rocanville mill recovery rate over the past 10 years.		63

Figure 25: Historical Company potash sales 2009 to 2018 in million tonnes / year (from Nutrien Financial Reporting).		66

Figure 26: Historical Company potash net sales 2009 to 2018 in million USD $ / year (from Nutrien Financial Reporting).		66

Figure 27: World potash production and demand for 2017.		67

Figure 28: World potash shipments and consumption, 2013-2018E.		68

Figure 29: Historic annual average realized potash price in USD / tonne (from Nutrien Financial Reporting).		72

Figure 30: Potash properties adjacent to Rocanville Potash.		74


LIST OF TABLES

Table 1: Mineral Resources and Reserves for Rocanville Potash, as of December 31, 2018.		13

Table 2: Assay results for all potash test holes within Rocanville Lease KL 305.		38

Table 3: Values for potash assay plot in Figure 17.		43

Table 4: Primary Potash Market Profile		67

EFFECTIVE DATE OF REPORT

The effective date of this report is December 31, 2018, other than where otherwise noted.

1.0 SUMMARY

Nutrien is a corporation organized under the Canada Business Corporations Act, the common shares of which listed and publicly traded on the Toronto and New York stock exchanges (symbol NTR).

The Company owns and operates a potash mine at Rocanville, Saskatchewan, Canada (Rocanville Potash, Rocanville mine, or Rocanville). An aerial view of the Rocanville surface operations is shown in Figure 1. The Rocanville Crown Subsurface Mineral Lease is numbered KL 305. Production of potash from the Rocanville mine began in 1970.

LOGO

Figure 1: Aerial photo of Rocanville surface operations, fall 2015.

As of December 31, 2018, annual nameplate capacity for Rocanville was 6.5 million tonnes and annual operational capability is 5.2 million tonnes of finished potash products (concentrated KCl). Estimates of nameplate capacity are based on capacity as per design specifications or Canpotex entitlements once these have been determined. Operational capability is the estimated annual achievable production level at current staffing and operational readiness (estimated at beginning of year), not including any inventory-related shutdowns and unplanned downtime.

While the term potash refers to a wide variety of potassium bearing minerals, in the Rocanville region of Saskatchewan, the predominant potash mineralization is sylvinite, which is comprised mainly of the minerals sylvite (KCl) and halite or rock salt (NaCl), with minor carnallite (KMgCl₃ · 6H₂O) and water insolubles. Potash fertilizer is concentrated, nearly pure KCl (i.e. greater than 95% pure KCl), but ore grade is traditionally reported on a % K₂O equivalent basis. The “% K₂O equivalent” gives a standard measurement of the nutrient value of different potassium-bearing rocks and minerals. To convert from % K₂O equivalent tonnes to actual KCl tonnes, multiply by 1.58.

used to exhaust air from underground workings; a third shaft from surface is used for service access and to provide fresh air into the mine. All shafts can be used as an egress. Raw potash ore is processed and concentrated on surface, and concentrated finished potash products (near-pure KCl) are sold and shipped to markets in North America and offshore.

Virtually all Rocanville underground mining rooms are in the potash mineralized zone situated approximately 30 m below the top of the host evaporite salt, the Prairie Evaporite Formation. More specifically, the Rocanville mine is located within the Esterhazy Member of the Prairie Evaporite Formation. Mine elevations range from approximately 895 m to 1040 m, averaging approximately 955 m. Within the Rocanville Lease, depths to the top of the ore zone can reach up 1250 m (the deepest potash exploration drillhole), but are expected to be shallower than 1200 m over most of the lease area. Mine workings are protected from aquifers in overlying formations by salt and potash beds which overlie the mineralized zone. Conservative local extraction rates (never exceeding 45% in any mining block) are employed at Rocanville to minimize potential detrimental effects of mining on overlying strata; this is common practice in flat-lying, tabular ore bodies overlain by water-bearing layers.

Part of the normal surface infrastructure associated with operating the potash mine in Saskatchewan includes waste disposal on the land and disposal of salt brine into deep subsurface aquifers. The Company stows salt tailings within an engineered and licensed Tailings Management Area (TMA) and operates five brine disposal wells near the surface plant of the Rocanville mine.

Over the 48-year mine life, 248.193 million tonnes of potash ore have been mined and hoisted at Rocanville to produce 80.967 million tonnes of finished potash products (from startup in 1970 to December 31, 2018). The life-of-mine average concentration ratio (raw ore / finished potash products) is 3.07 and the overall extraction rate over this time period is 31%. Actual production of finished potash products at Rocanville for the last 10 years is shown in Figure 2.

LOGO

Figure 2: Actual finished potash products production from the Rocanville mine over the past 10 years (in million tonnes per year).

Over the past three years (2016, 2017, 2018), actual potash production at Rocanville has totaled:

•

40.468 million tonnes of ore mined and hoisted (13.489 million tonnes per year, on average)

•

12.799 million tonnes of concentrated finished potash products produced (4.266 million tonnes per year, on average)

•

Average mill feed ore grade was 23.2% K₂0 equivalent

•

Average concentration ratio (ore mined / potash produced) was 3.162

The Canadian Institute of Mining and Metallurgy and Petroleum (CIM) has defined Mineral Resources and Reserves in The CIM Definition Standards for Mineral Resources and Reserves (2014). Based on these guidelines, all mineral rights owned or leased by the Company at Rocanville can be assigned to Mineral Resource categories (Inferred, Indicated, and Measured) and Mineral Reserve categories (Probable and Proven). Mineral Resources (reported as in-place tonnes) and Mineral Reserves (reported as recoverable ore tonnes) for Rocanville as of December 31, 2018 are outlined in Table 1. Mineral Resources reported are exclusive of Mineral Reserves.

Table 1: Mineral Resources and Reserves for Rocanville Potash, as of December 31, 2018.


Proven Mineral Reserve (millions of tonnes recoverable ore)		195
Probable Mineral Reserve (millions of tonnes recoverable ore)		348
Total Mineral Reserve (millions of tonnes recoverable ore)		543

Measured Mineral Resource (millions of tonnes in-place)		1,761
Indicated Mineral Resource (millions of tonnes in-place)		1,342
Inferred Mineral Resource (millions of tonnes in-place)		1,376
Total Mineral Resource (millions of tonnes in-place)		4,479

Average % K₂O Grade (from Rocanville in-mine samples)		23.4%
Years of Remaining Mine Life		40

The average mineral grade Rocanville Mineral Resource and Mineral Reserve is 23.4% K₂0 equivalent, and was determined from 39,245 in-mine samples at Rocanville to the end of December 2017 (discussed further in Section 11.2).

Potash production in any given year at the Rocanville mine is a function of many variables, so actual production in any given year can vary dramatically from tonnages produced in previous years. The Mineral Reserve tonnage and historic average production are used to estimate remaining mine life. If the average mining rate seen over the past three years (13.489 million tonnes of potash ore mined and hoisted per year) is sustained, and if Mineral Reserves remain unchanged, then the Rocanville mine life is 40 years from December 31, 2018.

The mining of potash is a capital-intensive business subject to the normal risks and capital expenditure requirements associated with mining operations. The production and processing of ore may be subject to delays and costs resulting from mechanical failures and such hazards as: unusual or unexpected geological conditions, subsidence, water inflows of varying degree, and other situations associated with any potash mining operation.

2.0 INTRODUCTION

The purpose of this document is to give a formal reporting of potash Mineral Resource and Reserve for Rocanville Potash, and to provide a description of the method used to compute Mineral Resource and Reserve tonnages. Sources of geological and geotechnical information analysed from this study include:

•

Publicly available geological maps, reports, and publications (listed in Section 27.0)

•

Internal reports on historic exploration drillholes

•

Data from recent exploration boreholes

•

Hydrogeological analysis conducted in recent exploration boreholes

•

Geological studies conducted at the Rocanville mine over the past 48 years

•

In-mine geophysical studies conducted at the Rocanville mine over the past 48 years

•

Geotechnical studies conducted for the Rocanville mine over the past 48 years

•

2D surface seismic exploration data (approximately 1,111 linear km collected to date)

•

3D surface seismic exploration data (an area covering approximately 627 km² to date)

All data and reports are archived at Nutrien’s corporate office in Saskatoon and at the Rocanville mine. In addition, drillhole data (well-log data, drilling reports, drill-stem test results, etc.) are archived with the Saskatchewan Ministry of the Economy, Integrated Resource Information System (IRIS), and surface seismic data (shot records and stack) are archived through an offsite commercial data storage service.

All geological and geophysical data and information presented in this report were personally reviewed and inspected by Nutrien technical staff under the supervision of Craig Funk (P. Eng., P. Geo., Director, Earth Science). All historic mining and mineral rights data and information presented in this report were personally reviewed and inspected by Lisa MacKenzie (GIS Cert.) and Jodi Derkach (GIS Cert., P. Geo.). Jodi Derkach (GIS Cert., P. Geo.), Tanner Soroka (P. Geo.), and James Isbister (G.I.T) conducted or were involved with geological studies and investigations at Rocanville, and Randy Brehm (G.I.T.), and Matthew van den Berghe (G.I.T) conducted or were involved with geophysical studies and investigations at Rocanville. Each of these staff visits the Rocanville mine numerous times every year. Additionally, geological and geophysical data and information pertaining to the Rocanville mine are regularly presented to and discussed with technical and engineering staff from the Rocanville mine.

3.0 RELIANCE ON OTHER EXPERTS

Responsibility for the accuracy of the technical data presented in this report is assumed by the authors. Outside experts were not used in the preparation of this report.

4.0 PROPERTY DESCRIPTION AND LOCATION

4.1 GENERAL

The Rocanville mine (surface plant) is located in south eastern Saskatchewan near the Saskatchewan-Manitoba Provincial Boundary, approximately 15 kilometers north-east of the town of Rocanville, Saskatchewan. The general location is shown on the map in Figure 3.

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Figure 3: Map showing location of Nutrien Operations, including Rocanville.

The legal description (Saskatchewan Township / Range) of the Rocanville surface plant is Section 22 Township 17 Range 30 West of the 1^st Meridian. More precisely, the Rocanville #2 Shaft collar is located at:

–

Latitude: 50 degrees 28 minutes 19.54 seconds North

–

Longitude: 101 degrees 32 minutes 42.58 seconds West

–

Elevation: 480.36 metres above mean Sea Level (SL)

–

Northing: 5,596,826.122 m

–

Easting: 745,137.307 m

–

Projection: UTM

–

Datum: NAD83

–

Zone: 13

The legal description (Saskatchewan Township / Range) of the Rocanville Scissors Creek Shaft is Section 13 Township 17 Range 32 West of the 1^st Meridian and is approximately 12 kilometers north-east of the town of Rocanville, Saskatchewan. More precisely, the Shaft collar is located at:

•

Latitude: 50 degrees 27 minutes 7.0632 seconds North

•

Longitude: 101 degrees 46 minutes 13.58 seconds West

•

Elevation: 525.35 metres above mean Sea Level (SL)

•

Northing: 5,593,868.30 m

•

Easting: 729,253.35 m

•

Projection: UTM

•

Datum: NAD83

•

Zone: 13

The Company owns approximately 3,061 hectares (7,564 acres) of surface rights required for current Rocanville mine operations, including all areas covered by the existing surface plant and Tailings Management Area, and all surface lands required for anticipated future Rocanville mine and expanded milling operations.

All permits and approvals required for the operation of a potash mine in Saskatchewan are in place at Rocanville.

Figure 4 is a more detailed map showing the location of Rocanville Potash relative to the potash deposits in Saskatchewan.

LOGO

Figure 4: Map showing Rocanville Potash relative to Saskatchewan potash mineralization (pink). Also shown are Company (green) and other (purple) Crown Subsurface Mineral Leases (Saskatchewan Mining and Petroleum GeoAtlas).

4.2 MINERAL RIGHTS

Mineral rights at Rocanville are mined pursuant to Subsurface Mineral Leases with the Province of Saskatchewan, Canada (the Crown), and with non-Crown (Freehold) mineral rights owners. Crown mineral rights are governed by The Subsurface Mineral Tenure Regulations, 2015, and Crown Subsurface Mineral Leases are approved and issued by the Ministry of the Economy.

The original Rocanville Crown Subsurface Mineral Lease KL 111 was entered into in June 1966. In the following years, various minor amendments were made to this Crown Lease, resulting in Crown Subsurface Mineral Lease KL 111R. KL 111R covered approximately 24,146 hectares (59,668 acres) of Crown mineral rights.

In May 2007, application was made for a Permit to Prospect for Subsurface Minerals (Potash Exploration Permit) covering approximately 26,184 hectares (64,702 acres) of Crown mineral rights in the area just west of and adjoining the existing Rocanville Crown Lease KL 111R. In late 2007, a major expansion of the Rocanville mine was announced. Shortly after this, in May 2008, Potash Exploration Permit KP 338A was issued. A potash exploration program was initiated in 2007 and completed in 2008 to determine the extent of potash mineralization to the west of the mine workings.

A new Crown Subsurface Mineral Lease numbered KLSA 002 was issued in February 2010 incorporating all Crown mineral rights within the existing Crown Lease KL 111R and approximately two-thirds of Crown mineral rights covered in KP 338A. The portion of the lands that were not part of the Lease amalgamation remained as Crown Exploration Permit KP 338B until December 2016 when they were converted to a Crown Subsurface Mineral Lease numbered KL 249.

In October 2017, KL 305 was formed by the amalgamation of Crown Subsurface Leases KLSA 002 (KLSA 002B, following minor amendments) and KL 249. KL 305 covers an area of approximately hectares 113,975 (281,639 acres), as shown in Figure 5. At Rocanville, the Company has leased potash mineral rights for 54,184 hectares (133,892 acres) of Crown Land and owns or has leased approximately hectares 45,612 (112,710 acres) of Freehold Land within the Lease boundary. The Rocanville Crown Lease term is for a period of 21 years from October 2017, with renewals at the Company’s option for 21 year periods. Freehold Lands also remain under lease providing, generally, that production is continuing and that there is a continuation of the Crown Lease.

Within the current Rocanville Crown Lease area, 80,181 hectares (198,132 acres) are mined pursuant to Unitization Agreements with mineral rights holders (Crown and Freehold) within two Unitized Areas shown in Figure 5. Rocanville Unit Area #1 has been in place since 1970 when mining began, was amended in 2006 and includes 35,234 hectares (87,065 acres) of mineral rights. Rocanville Unit Area #2 has been in place since 2011, and includes 44,947 hectares (111,067 acres) of mineral rights.

When underground workings of a potash mine are designed, there are inevitably regions that are mined with higher mining extraction (e.g. production panels) and other regions where mining extraction is lower (e.g. conveyor-belt development rooms). To treat mineral rights holders in both low extraction and high extraction areas fairly, and to promote good mining practices, a Unitization Agreement is the preferred method for determining royalty payouts. Under a Unitization Agreement, each mineral rights holder is paid a royalty based on their proportional share of the entire Unit Area regardless of whether or not their lands are actually mined. For example, if one mineral rights holder owns rights to 4,000 hectares within a 40,000-hectare Unit Area, they would be paid 10% of the total monthly royalty payout from that Unit Area.

LOGO

Figure 5: Map showing Rocanville Crown Lease KL 305 (blue), Unit Area #1 (green), and Unit Area #2 (orange).

5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

The Rocanville mine surface facilities are accessed by an existing paved road that is part of the Saskatchewan Provincial Highway System. Most finished potash products are shipped by rail over existing track, with some product shipped by truck over the North American Highway System. Location of Rocanville Potash with respect to the features described in this section (major road and rail infrastructure, as well as nearby river systems) is shown in Figure 6.

The Rocanville mine is served by a number of towns and villages within 50 kilometres of the minesite. The nearest towns are Rocanville (15 km distant), Moosomin and Esterhazy (both 50 km distant). The nearest city is Yorkton (100 km distant).

Rocanville is situated near the north extent of the Great Plains of North America. Topography is relatively flat, with gently rolling hills and occasional valleys. The Qu’Appelle River valley, a glacial outflow channel, lies just north of the minesite, and the Assiniboine River Valley is a few kilometers to the east.

Climate at the Rocanville mine is typical for an inland prairie location at latitude 50º North (often characterized as “mid-latitude steppe” climate).

Part of the normal surface infrastructure associated with operating the potash mine in Saskatchewan includes waste disposal on the land and disposal of salt brine into deep subsurface aquifers. Facilities to carry out all aspects of these tasks are in place at Rocanville (for more information, see Section 20.0).

LOGO

Figure 6: Map showing infrastructure (towns, rivers, roads, and railways) near Rocanville Potash. Rocanville shaft locations are shown in red and purple.

6.0 HISTORY

Ten potash mines were brought into production in Saskatchewan in the period 1962 through 1970. With nearly 50 years of production history, most potash mines have contracted or expanded production in response to the demand for potash. No new mines had been commissioned until 2017, when a solution mine and production facility near Moose Jaw, Saskatchewan began production. At present, eight of the eleven operating mines are conventional underground mines, and three operate using solution mining methods.

Exploration drilling for potash in the Rocanville, Saskatchewan area was carried out in the 1960s. Thirty-four potash test holes were drilled during this early exploration phase: 25 in Saskatchewan and nine in Manitoba. The Rocanville mine was built by a company called Sylvite of Canada Ltd. (a division of Hudson’s Bay Mining and Smelting Ltd.) in the late 1960s, and potash production began at Rocanville in 1970. The mine has run on a continuous basis since then (other than during short-term shutdowns taken for inventory management purposes). PotashCorp acquired the Rocanville mine in 1977.

Effective January 1, 2018, PotashCorp and Agrium completed the Arrangement. As a result of completing the Arrangement, PotashCorp and Agrium are wholly-owned subsidiaries of Nutrien.

A major expansion to increase the nameplate capacity of Rocanville from 3.0 million tonnes to approximately 6.0 million tonnes of finished potash products per year was announced in 2007. Expansion work was substantially completed by the end of 2016, and production was ramped up through 2017 when a nameplate capacity of 6.5 million tonnes of finished potash product was announced. The operational capability at Rocanville as of December 31, 2018 is 5.2 million tonnes of finished potash product. For further information, see Section 21.0.

7.0 GEOLOGICAL SETTING AND MINERALIZATION

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Figure 7: Thickness of the Prairie Evaporite Formation and area of potash distribution within these salts (from Fuzesy, 1982).

The 100 m to 200 m thick Prairie Evaporite Formation is overlain by approximately 500 m of Devonian carbonates, followed by 100 m of Cretaceous sandstone, and 400 m of Cretaceous shales and Pleistocene glacial tills to surface; it is underlain by Devonian carbonates (Fuzesy, 1982). The Phanerozoic stratigraphy of Saskatchewan is remarkable in that units are flat-lying and relatively undisturbed over very large areas. A geological section representing Saskatchewan stratigraphy is shown in Figure 8. Rocanville stratigraphy differs slightly from this regional model in that Mississippian carbonates and Jurassic clastics are present.

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Figure 8: Diagrammatic vertical section showing basic layered-Earth stratigraphy in a typical Saskatchewan potash region (from Fuzesy, 1982).

Potash mineralization in this region of Saskatchewan is predominantly sylvinite, which is comprised mainly of the minerals sylvite (KCl) and halite or rock salt (NaCl), with minor carnallite (KMgCl₃ · 6H₂O) and water insolubles. Potash fertilizer is concentrated, nearly pure KCl (i.e. greater than 95% pure KCl), but ore grade is traditionally reported on a % K₂O equivalent basis. The “% K₂O equivalent” gives a standard measurement of the nutrient value of different potassium-bearing rocks and minerals. To convert from % K₂O equivalent tonnes to actual KCl tonnes, multiply by 1.58.

Over the past three years (2016, 2017, 2018), the average, measured potash ore grade of the mill feed at Rocanville was 23.2% K₂0 equivalent. The average ore grade reported from 31 surface drillhole intersections, all within Rocanville Lease KL 305, is 22.4% K₂0 equivalent (discussed further in Section 10.0). The average ore grade observed from 39,245 in-mine chip samples to December 31, 2017 is 23.4% K₂0 equivalent (discussed further in Section 11.2)

8.0 DEPOSIT TYPE

The Rocanville potash deposit lies within the Esterhazy Member of the Prairie Evaporite Formation. The Patience Lake Member potash beds are not present in the Rocanville Area. The Belle Plaine and White Bear Members are present, but not conventionally mineable in the Rocanville area. The potash zone at Rocanville is approximately 2.4 metres thick and occurs near the top of the Prairie Evaporite Formation. Potash mineralization in this area is flat-lying and continuous. Mine elevations range from approximately 895 m to 1040 m, averaging approximately 955 m. Within the Rocanville Lease, depths to the top of the ore zone can reach up 1250 m (the deepest potash exploration drillhole), but are expected to be shallower than 1200 m over most of the lease area. Salt cover from the ore zone to overlying units is approximately 30 m. The Rocanville mine operates as a conventional, underground potash mine.

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Figure 9: Schematic cross-section across southern Saskatchewan of the Prairie Evaporite Formation showing relative position of potash members. At Rocanville, potash is mined from the Esterhazy Member, labeled “EM” (from Fuzesy, 1982).

9.0 EXPLORATION

Before the Rocanville mine was established in 1970, all exploration consisted of drilling test holes from surface and analysis of core from these drillholes (results are discussed in Section 10.0). PotashCorp did not conduct any exploration drilling after start-up until 2008, when a potash exploration program was initiated under the direction of PotashCorp staff to determine the extent of potash mineralization in the western portion of the current Lease. Between 2007 and 2008, exploration work consisted of:

•

Analysis of data from five existing exploration drillholes (well-logs from surface casing to total depth within or below the Prairie Evaporite Formation)

•

Analysis of 377 km of existing 2D surface seismic data

•

Acquisition and analysis 124 km² (48 miles²) of 3D surface seismic data,

•

Drilling of four potash exploration drillholes from surface to the base of the Prairie Evaporite Formation (all with a complete suite of modern well-logs plus coring of the potash mineralized zone)

•

Drilling of one shaft pilot drillhole (with a complete suite of modern well-logs plus coring of the entire rock column from surface to below the potash mineralized zone)

A total of 1,111 linear kilometres of 2D seismic lines have now been acquired at Rocanville. Between 1988 and 2017, 3D seismic has been acquired over an area covering 627 square kilometres. The most recent seismic survey was conducted in 2017 and accounted for 96 square kilometres of the total square kilometres stated above.

A map showing all potash exploration coverage near Rocanville Potash (drillholes, 2D seismic and 3D seismic coverage) is shown in Figure 10. A detailed air photo showing the area around the Rocanville surface operations is shown in Figure 11. A detailed air photo showing the area around the Scissors Creek surface operations is shown in Figure 12.

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Figure 10: Potash exploration at Rocanville (2D & 3D surface seismic and drillholes deeper than 750 m).

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Figure 11: Air photo showing the Rocanville Mine surface operations and Tailings Management Area.

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Figure 12: Air photo showing the Scissors Creek surface operations.

A typical seismic section from the Rocanville area is shown in Figure 13. This is a fence section extracted from the “Rocanville-Cutarm” 2008 3D survey. A 2x vertical stretch has been applied to these data. The vertical scale is in metres relative to sea level (SL). The seismic section is coloured with rock velocities computed from the seismic data: blues are slow (shales), reds are fast (carbonates), and pinks / whites are intermediate (sand, salt). Note that the reflectors at both top and bottom of the unit marked Prairie Evaporite (salt) are continuous. This indicates an undisturbed, flat-lying salt within which potash is likely to be found based on 48 years of mining experience at Rocanville. The reflection from a Rocanville mine panel also shows up.

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Figure 13: Seismic section from the Rocanville 2007 3D seismic data volume showing relative rock velocities of fast (red), slow (blue) and in between (white/pink). Vertical exaggeration is 2X, Sea Level (SL) is marked in metres, and major geological units are labeled.

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Figure 14: Detail of seismic section from the Rocanville 3D seismic data volume (see text for explanation). Mine room is marked in yellow. Ground surface is at approximately +500 m above Sea Level.

10.0 DRILLING

For the original Rocanville potash test holes drilled in 1960s, the primary objective of this drilling was to sample the potash horizon to establish basic mining parameters. Seismic surveys (2D) were done sparingly in those days, so the drillhole information was relied upon heavily to evaluate potash deposits. Test holes would penetrate the evaporite section with a hydrocarbon based drilling mud (oil-based or diesel fuel) to protect the potash mineralization from dissolution. Basic geophysical well-logs were acquired, and in many cases, drill stem tests were run on the Dawson Bay Formation, a carbonate immediately overlying the Prairie Evaporite Formation, to help assess mine inflow potential. Core samples from the targeted potash intersections were split or quartered (cut with a masonry saw) crushed and analysed to establish potash grades.

Original Rocanville drillhole assay data are taken from Robertson et al. (1977), where the best 2.44 m (8’) mining interval – the original mining height at Rocanville – is reported. As explained in the Robertson Associates report, the Rocanville prospect was originally explored by 34 drillholes in Saskatchewan and Manitoba. Of these original drillholes, 26 are located within the current Rocanville Lease KL 305 and are shown in Table 2. See also Figure 10 for drillhole locations.

Potash intersections for one drillhole in Table 2 revealed anomalously low grades. With nearly 50 years of mining experience at Rocanville, it is the opinion of the authors that areas of low grade (i.e. <15% K₂O) are localized with a relatively small lateral extent. Therefore, the average grade calculation does not include these drillholes.

No further exploration drilling was done by the Company at Rocanville until 2008, when four potash exploration drillholes and one shaft pilot hole were completed. The basic drilling program was specified by PotashCorp technical staff. Figure 15 is a photograph showing the drill site for the Scissors Creek shaft pilot hole. The drill rig shown in the photo is the same one used to drill the four exploration holes in the 2008 exploration program.

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Figure 15: Drilling of pilot hole at the Scissors Creek shaft site in April 2009 (photo by K. Weedmark, Moosomin World Spectator).

Each of the 2008 exploration drillholes and the shaft pilot hole were drilled in such a way as to protect the potash minerals from dissolution while core sampling through the targeted mining zone (the Esterhazy Member of the Prairie Evaporite Formation). To accomplish this, the aquifers above the top of salt (top of the Prairie Evaporite) were isolated behind a casing before the drilling mud was changed over to an oil based system. Each drillhole penetrated approximately 10 m into the Winnipegosis Formation, which lies immediately below Prairie Evaporite salts, before drilling was terminated (i.e. through the Prairie Evaporite Formation and far enough into the underlying formation to permit proper geophysical logging of the base of salt).

Hydrogeology in the formations immediately overlying the Prairie Evaporite Formation was evaluated in part by core sampling through the Dawson Bay Formation (for examination of porosity and permeability). As well, drill stem tests were run in the Dawson Bay and Lower Souris River Formations. In the shaft pilot hole, core sampling and drill stem testing were done more extensively as part of a comprehensive investigation for a shaft liner design. In every drillhole, coring and testing of formations above the Prairie Evaporite was completed prior to setting the casing and changing the drilling mud to an oil based system.

A standard suite of geophysical logs was run in each drillhole. These logs included: Gamma Ray, Neutron, Density, Electrical Resistivity (or Induction), Sonic (full-waveform P & S), and Caliper. In certain drillholes, additional specialized logs were run for fracture mapping and / or porosity investigation over certain geological intervals. A deviation survey was run in each drillhole; the results of which were found to be minimal (i.e. all holes are vertical). Stages of open-hole

logging had to be completed before casing was put in place. The stages depended on formational permeability (such as the Mannville Formation, which is a major regional aquifer and needs to be isolated) and formational composition (it is necessary to change drilling mud when drilling through salts to not dissolve the rock).

Potash core samples from the four 2008 exploration drillholes and the Scissors Creek shaft pilot hole were assayed as described in Section 12.0 of this report. The assay results for these drillholes are listed in Table 2. Note that 2008 assay results are for the best 2.59 m (8.5’) mining interval, since an operational decision was made to develop parts of the western portion of Rocanville Lease KL 305 at a height of 2.59 m (8.5’). This mining height allows for more headroom with minimal negative impact on ore grade. Mining machines at Rocanville use potassium sensing technology to ensure that rooms are always cut in the best available potash ore. It is difficult to determine at which mining height certain Mineral Resources and Reserves will be cut in the future, so the more conservative mining height of 2.51 m (8.25’) was applied to Mineral Resource and Reserve calculations.

Drillhole assay data for the Rocanville mining interval gives an estimated mean grade of 22.4% K₂O, with 1.2% water insolubles, and 3.6% carnallite (Table 2).

Due to the remarkably consistent mineralogy and continuity of the potash, as experienced through 48 years of mine production, very little potash exploration drilling has been done at Rocanville since start-up. Instead of exploration drillholes, seismic surveying has been relied upon to explore ahead of mine development. Where normal Prairie Evaporite sequences are mapped in the seismic data, potash beds have unfailingly been present. Localized, relatively small mine anomalies, not mapped in seismic data do occur. When they do, they are dealt with in the normal course of mining and extraction through these anomalous areas is typically minimized. Anomalies associated with possible water inflow problems, which are mapped in the seismic data, are avoided.

Table 2: Assay results for all potash test holes within Rocanville Lease KL 305.

Weighted Average for 2.44 m (8’) Mining Interval


Drillhole	Year Drilled	% K2O	% Water Insolubles	% Carnallite
01-04-17-30 W1	1957	23.84	1.15	4.34
16-14-017-01W2	1957	Excluded	N/A	N/A
04-20-17-32 W1	1958	22.74	0.95	1.77
08-32-17-30 W1	1959	20.74	1.06	5.18
10-12-17-30 W1	1959	16.35	1.06	7.62
13-16-18-30 W1	1959	20.32	0.75	0.74
05-07-18-30 W1	1961	19.95	1.07	4.92
16-04-18-30 W1	1961	21.89	1.26	5.71
02-11-18-30 W1	1961	24.87	0.97	0.2
01-16-17-30 W1	1964	27.05	1.31	4.29
04-20-17-30 W1	1964	23.86	1.22	0.19
16-22-17-30 W1	1964	29.06	1.38	0.11
14-36-17-30 W1	1964	17.06	0.93	6.8
14-36-17-30 W1*	1964	26.26	1.42	4.76
03-28-17-30 W1	1966	26.32	1.26	6.48
13-14-17-30 W1	1966	23.73	1.4	7.02
04-24-17-30 W1	1966	17.88	0.81	0.19
10-34-17-30 W1	1966	24.85	1.48	0.18
11-25-17-30 W1	1966	19.6	1.15	2.13
11-14-18-30 W1	1966	26.53	1.09	0.22
13-22-17-30 W1	1967	35.1	1.3	5.4
01-14-17-33 W1	1967	25.62	2.72	2.52
13-22-17-33 W1	1967	21.75	2.61	7.24
16-26-17-33 W1	1967	24.01	0.92	0.16
14-05-17-30 W1	1969	15.56	0.96	10.27
01-14-17-30 W1	1971	15.67	1.15	N/A
04-01-019-31W1	1989	22.48	0.64	0.00
06-13-17-32 W1**	2008	23.6	0.41	0.25
08-02-18-32 W1**	2008	20.7	1.06	0.76
13-09-16-33 W1**	2008	23.44	1.42	8.32
04-34-16-33 W1**	2008	15.7	0.67	8.84
09-11-18-33 W1**	2008	18.03	0.36	0.25
Average of 31 useable values:		22.41	1.16	3.56
* Refers to a deflection, or whipstock, off original drillhole ** Refers to drillhole from the 2008 exploration program, where the best 2.59 m (8.5’) mining interval is reported

11.0 SAMPLING METHOD AND APPROACH

11.1 BASIC APPROACH

Exploration in the Rocanville area was conducted in two very different time periods: the 1960s, then in 2008. Sampling and assaying of potash cores samples was done using methods considered consistent with standard procedures for potash exploration at these times.

Drillhole sampling methods have remained essentially the same over the years. Potash core samples are acquired as described in Section 10.0. Short segments of core usually about 0.3 m (1’) in length are labeled based on visible changes in mineralization, and sometimes based on more or less fixed intervals. Each segment of core is then split in half using some type of rock or masonry saw. The split portion of core is then bagged and labeled and sent to a laboratory for chemical analysis. Samples from historical drillholes were sometimes quartered; most historical samples have deteriorated substantially. Exploration drillhole samples from 2008 were halved. Potash samples remain stored at the Subsurface Geological Laboratory of the Saskatchewan Ministry of the Economy (Regina, Saskatchewan).

For the exploration holes drilled in 2008, samples were chemically analysed at the Nutrien Pilot Plant (under the supervision of PotashCorp’s Chief Chemist at the time, D. Matthews, MCIC) using the most accurate methods available for the required elements:

•

Potassium (K) content was analysed by titration using the STPB (sodium tetraphenylboron) method.

•

Sodium (Na) was analysed by Atomic Absorption.

•

Calcium (Ca) and Magnesium (Mg) were analysed by EDTA (ethylenediaminetetracetate) titration.

•

Water Insoluble (WI) was analysed gravimetrically.

All wet chemical methods are based upon either American Society of Testing Materials (ASTM) or Association of Official Analytical Chemists (AOAC) methods of analysis. The same samples were also analysed for process (milling) related properties, namely flotation performance, liberation characteristics, and mineralogical content.

Mineralogical (x-ray diffraction) testing was conducted by the Saskatchewan Research Council (SRC) Mining and Minerals Division, in Saskatoon, Saskatchewan. The SRC geoanalytical laboratories are Standards Council of Canada Accredited, with the laboratory management system operated in accordance with ISO / IEC 17025:2005 (Can-P-4E), General Requirements of the Competence of Mineral Testing and Calibration Laboratories.

Detailed sample preparation was as follows:

Place core samples in large flat metal pan. Break with hammer into approximately 2.54 cm (1”) pieces.

Clean out jaw crusher, and place a clean 18.93 L (5 gallon) pail under crusher. Start up crusher, check 0 setting, and then set gap to 10 mm. (Note: jaw crusher should be running when adjusting gap).

Put approximately half of the broken core through the jaw crusher. Shake pan under the jaw crusher occasionally to spread out material. Remove crushed material and place on a full height 5 mesh screen with a full height pan underneath. Shake and tap screen by hand. Place +5 mesh in pan to be re-crushed. Place -5 mesh in a separate pan for crushed material.

Repeat step #3 with the other half of the original broken sample.

Re-crush the +5 mesh from step #3 & #4 with 10 mm opening on jaw crusher. Screen out +5 and -5.

Adjust jaw crusher to 5 mm opening and crush +5. Screen out +5 and -5. Repeat crushing +5 mesh at 5 mm opening.

Adjust crusher to 2.5 mm opening and crush +5 mesh. Screen out +5 and -5. Repeat crushing +5 mesh at 2.5 mm opening.

Combine all crushed fractions and mix well. Place in a well-labeled bag. Seal tightly.

Split out ¹⁄₄ from each crushed sample and pulverize for chemical analysis. The remaining ³⁄₄ of the sample is bagged and sealed for future test work.

After chemical analysis was completed, PotashCorp’s technical staff identified the ore zone (2.59 m) section of the cores. A composite sample of the ore zone was prepared for each core location. Flotation, liberation and metallurgical analysis were conducted on the composite samples to confirm milling assumptions for the ore in the western portion of Rocanville Lease KL 305. An example of the potash mineralized zone seen in drillhole PCS Tantallon 08-02-18-32 W1 is shown in Figure 16.

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Figure 16: 82.6 mm (3¹⁄₄”) diameter potash core from drillhole PCS Tantallon 08-02-18-32 W1. The top of the best 2.59 m (8.5’) potash interval for this drillhole is indicated by the yellow arrow at 1035.41 m depth, and the base of the interval is indicated by the red arrow at 1038.00 m. The blue line highlights the best 2.59 m potash interval.

An assay plot corresponding to PCS Tantallon 08-02-18-32 W1 core (Figure 16) is shown in Figure 17.

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Figure 17: Potash assay plot for drillhole PCS Tantallon 08-02-18-32 W1 indicating the best 2.59 m (8.5’) mining interval.

At Rocanville, on-borer potassium sensing instrumentation is used to keep continuous mining machines centered on the optimal (highest mineral grade) portion of the potash seam. Table 3 lists the assay values used in the Figure 17 plot. Note that sample 5 in Table 3 is split into two samples as it crosses the optimal mining interval. This sample is deemed to be uniformly distributed through 1035.33 m to 1035.66 m.

Table 3: Values for potash assay plot in Figure 17.

PCS Tantallon 08-02-18-32 W1 Assay Values


#	From (m)		To (m)		Interval (m)		% K2O		% Water Insoluble		% Carnallite
1		1033.98		1034.32		0.34		9.83		2.04		1.611
2		1034.32		1034.68		0.36		9.50		0.65		0.480
3		1034.68		1035.00		0.32		15.23		0.28		0.114
4		1035.00		1035.33		0.33		10.29		0.25		0.149
5		1035.33		1035.41		0.08		7.52		0.09		0.046
2.59 m (8.5’) Mining Interval Top of Cut 1035.41 m
5		1035.41		1035.66		0.25		7.52		0.09		0.046
6		1035.66		1036.00		0.34		18.18		0.11		0.000
7		1036.00		1036.33		0.33		39.13		0.07		0.000
8		1036.33		1036.68		0.35		33.72		0.28		0.000
9		1036.68		1037.00		0.32		14.07		2.08		1.543
10		1037.00		1037.33		0.33		14.24		2.44		1.966
11		1037.33		1037.66		0.33		22.66		1.93		1.440
12		1037.66		1038.00		0.34		12.24		1.37		0.983
2.59 m (8.5’) Mining Interval Base of Cut 1038.00 m
13		1038.00		1038.33		0.33		3.44		0.61		0.583
14		1038.33		1038.66		0.33		4.64		1.10		1.417
2.59m (8.5’) Mining Interval Weighted Average								20.70		1.06		0.76

In the opinion of the authors, the sampling methods are acceptable, are consistent with industry standard practices, and are adequate for Mineral Resource and Reserve estimation purposes.

11.2 MEAN POTASH MINERAL GRADE FROM IN-MINE SAMPLES

In-mine grade samples are taken at 60 m intervals in every underground mine room at Rocanville. Traditionally, Rocanville in-mine grade samples were collected as chips along a sidewall from back (roof) to floor; this methodology is referred to as channel sampling. In 2015, in-mine grade samples were taken from the floor (i.e. grab sampling) at the same 60 m sampling interval. Nutrien technical staff believe that collecting samples from the floor is as representative of ore grade in the mining interval as channel sampling, and far less labour-intensive. Grab sample results are currently being compared to channel sample results to thoroughly assess the best practice moving forward.

To the end of 2017, 39,245 in-mine ore grade samples were collected. All samples were analysed in the Rocanville mill laboratory using analysis techniques that were up-to-date for the era in which the sample was collected. In-mine samples collected and analysed in 2018 contributed no meaningful change to the overall mineral ore grade. Figure 18 shows a histogram of in-mine chip sample assay results from the Rocanville mine. The mean ore grade for this family of in-mine samples is 23.4% K₂O equivalent, while the median ore grade for this family of in-mine samples is 23.6% K₂O. The mean ore grade from in-mine samples is considered to be a more representative estimate of expected potash ore grade at Rocanville than drilling results presented in Section 10.0.

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Figure 18: Histogram of potash ore grade from 39,245 Rocanville in-mine samples.

11.3 POTASH ORE DENSITY FROM IN-MINE MINERAL GRADE MEASUREMENTS

Another approach is to look up density values for the minerals which constitute potash rock – values determined in a laboratory to a high degree of accuracy and published in reliable scientific journals / textbooks – then apply these densities to the bulk-rock in some way. Given that the density of each pure mineral is quantified and known, the only difficult aspect of this approach is determining what proportion of each mineral makes up the bulk-rock at a particular sample location. This is the methodology that was used to determine an estimate of bulk-rock density for the Rocanville ore zone. An obvious benefit of this approach is that a mean value computed on the distribution shown in Figure 18 (39,245 sample points) has a much greater confidence interval than the mean value computed from 31 drillhole assays (Section 10.0).

The main mineralogical components of the ore zones of Saskatchewan’s Prairie Evaporite Formation are:

•

Halite – NaCl

•

Sylvite – KCl

•

Carnallite – KMgCl₃· 6(H₂O)

•

Insolubles – dolomite, muscovite, clinochlore, potassium feldspar, illite, quartz, anhydrite, and other minor mineral components

All Nutrien potash facilities measure and record the in-mine % K₂O grade and insoluble content of the mined rock. In addition, the Mg content is also measured at Rocanville, since this is proportional to the carnallite content of the ore. From this set of measurements, the density of the ore can be estimated. The required composition and mineral density information for each mineral component is given below (Webmineral Mineralogy Database):

Halite – NaCl


• Na		39.34%
• Cl		60.66%
• Oxide form Na₂O		53.03%
• Mineral density		2160 kg / m³

Sylvite – KCl


• K		52.45%
• Cl		47.55%
• Oxide form K₂O		63.18%
• Mineral density		1990 kg / m³

Carnallite – KMgCl₃·6(H₂O)


• K		14.07%
• Mg		8.75%
• H		4.35%
• Cl		38.28%
• O		34.55%
• Oxide Form K₂O		16.95%
• Oxide Form MgO		14.51%
• Oxide Form H₂O		38.90%
• Mineral density		1600 kg / m³

Insolubles

•

Component minerals: dolomite, muscovite, clinochlore, potassium feldspar, illite, quartz, anhydrite, and other minor mineral components

•

Mineral density 2790 kg / m³ (Nutrien Pilot Plant, 2018)

The value for insoluble density is based on known densities of the constituent parts of the insoluble components of the mineralization and the average occurrence of these insoluble components, which is known from the nearly 50 years of mining experience at Rocanville. Assuming the lowest plausible density of insolubles known for Saskatchewan potash deposits of this nature, the effect upon overall bulk-rock ore density and Mineral Resource and Reserve calculations would be negligible.

The mineral composition of potash ore at Rocanville is halite, sylvite, carnallite, and insolubles. To compute bulk-rock density, the carnallite content must be estimated from the Mg measurements. This is followed by removing the effect of the carnallite from the % K₂O measurements, leaving % K₂O values that are only due to sylvite; the sylvite percentage is estimated from this adjusted % K₂O. From 39,245 Rocanville in-mine grade samples, raw ore composition is:

% Sylvite = 35.4 (converted from % K₂O)

% Insolubles = 1.0

% Carnallite = 6.1

The percent of halite is assumed to be:

% Halite = (100 - % Sylvite - % Insol. - % Carnallite)

= (100 - 35.4 - 1.0 – 6.1)

= 57.5

Applying this methodology, and using these mean grade data gives a mean bulk-rock density for Rocanville potash of:

RHO_bulk-rock = (Halite density * % Halite) +

(Sylvite density * % Sylvite) +

(Carnallite density * % Carnallite) +

(Insol. density * % Insol.)

= (2170 * % Halite) +

(1990 * % Sylvite) +

(1600 * % Carnallite) +

(2790 * % Insol.)

= 2080

RHO_bulk-rock(Rocanville) = 2080 kg / m³

This method is as accurate as the ore grade measurements and mineral density estimates.

12.0 DATA VERIFICATION

12.1 ASSAY DATA

Original drillhole ore grade assays were studied by independent consultant David S. Robertson and Associates (1977). The original assay results for core samples from historical drillholes were taken as accurate in these studies, as there is no way to reliably reanalyse these samples. Most of the remaining core samples in storage have long since deteriorated to the point where they are no longer usable.

Assay data for the 2008 core samples were supervised and verified by the Company’s former Chief Geologist, T. Danyluk (P. Geo.).

Ore grades of in-mine samples are measured inhouse at the Rocanville mine laboratory by Company staff using modern, standard chemical analysis tools and procedures. These results are not verified by an independent agency; however, check sampling through the SPPA program, discussed in Section 11.1, does occur.

It should be noted that assay results from historical drillholes match mine sample results closely – within approximately 1.0% – even though sample spacing is obviously much greater in the case of drillholes. This fact is a validation of the methodology. Based on 48 years of in-mine

experience at Rocanville, historical assay results are considered accurate and provide an excellent basis for estimating potash grade in areas of future mining at Rocanville. The mean mineral grade of 23.4% K₂O equivalent determined from 39,245 in-mine grade samples is thought to provide the most accurate measurement of potash grade for the Rocanville mine.

12.2 EXPLORATION DATA

The purpose of any mineral exploration program is to determine extent, continuity, and grade of mineralization to a certain level of confidence and accuracy. For potash exploration, it is important to minimize the amount of cross-formational drilling, since each drillhole is a potential conduit for subsurface groundwater from overlying (or underlying) water-bearing formations into future mine workings. Every potash test drillhole from surface sterilizes potash mineralization; a safety pillar is required around every surface drillhole once underground mining commences. This is the main reason that minimal exploration drilling has been carried out at Rocanville in recent years.

Initial sampling and assaying of cores was done during potash exploration at Rocanville in the 1960s. Methods were consistent with standard procedures for that era. The mine began production in 1970 and no further core drilling was carried out by PotashCorp at Rocanville until 2008 when the decision was made to expand the mine westward.

Assay of physical samples (drillhole cores and / or in-mine samples) is the only way to gain information about mineral grade, but extent and continuity of mineralization are correctly determined using data collected from geophysical surveys correlated with historic drilling information. To date, surface seismic data at Rocanville have been collected, analysed, and verified by PotashCorp staff, at times, in cooperation with an independent consultant. Ultimate responsibility for final analyses including depth conversion (seismic depth migration), as well as the accuracy of these data, rests with Nutrien qualified persons.

Data for the Mineral Resource and Reserve estimates for Rocanville mine reported in Sections 14.0 and 15.0 were verified by PotashCorp staff as follows:

•

Annual review of potash assay sample information (drillholes and in-mine grade samples),

•

Annual review of surface geophysical exploration results (3D and 2D seismic data),

•

Annual crosscheck of mined tonnages reported by minesite technical staff with tonnages estimated from mine survey information, and

•

Annual crosscheck of Mineral Resource and Reserve calculations carried out by corporate technical staff.

This approach to data verification of potash mineral grade and surface seismic information is in accordance with generally accepted industry practice for areas adjacent and contiguous to an existing operating potash mine.

13.0 MINERAL PROCESSING AND METALLURGICAL TESTING

At Rocanville, potash ore has been mined and concentrated using flotation and crystallization methods to produce saleable quantities of high-grade finished potash products since 1970. Products include granular and standard grade potash used for agriculture applications.

Over the 48-year mine life, 248.193 million tonnes of potash ore have been mined and hoisted to produce 80.967 million tonnes of finished potash product (from startup in 1970 to December 31, 2018). Given this level of sustained production over 48 years, basic mineralogical processing and prospective metallurgical testing of Rocanville potash is not considered relevant.

See also Section 17.0.

14.0 MINERAL RESOURCE ESTIMATES

14.1 DEFINITIONS OF MINERAL RESOURCE

The Canadian Institute of Mining and Metallurgy and Petroleum (CIM) has defined Mineral Resource in The CIM Definition Standards for Mineral Resources and Reserves (2014) as:

Indicated Mineral Resource: that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade quality continuity between points of observation.

CIM defines Modifying Factors as “considerations used to convert Mineral Resources into Mineral Reserves. These include, but are not restricted to, mining, processing, metallurgical,

infrastructure, economic, marketing, legal, environmental, social and governmental factors.”

Measured Mineral Resource: areas of detailed, physical exploration through actual drilling or mine sampling, near existing underground workings, and within Crown Subsurface Mineral Lease KL 305.

The mine began production in 1970 and, with the exception of five holes drilled during the 2008 exploration program, no further core drilling has been carried out by the Company since then. Instead, exploration involved collecting surface seismic data, which became better in quality over the years. Exploration drilling has demonstrated the presence of the potash horizon, and seismic coverage shows the continuity of the Prairie Evaporite Formation within which the potash horizon occurs.

Along with this approach, analysis of in-mine samples for potash grade has provided an observation-based understanding of the potash mineralized zone at Rocanville that is far superior to the level of understanding provided by any surface drilling based exploration program. The authors believe that this approach provides a body of information that guides and constrains exploration inferences in a much better way than could be achieved from any conventional exploration investigation in areas immediately surrounding, and contiguous to, the Rocanville potash mine.

14.2 ROCANVILLE POTASH RESOURCE CALCULATIONS

Exploration information used to calculate reported Mineral Resource tonnages at Rocanville consist of both physical sampling (drillhole and in-mine) and surface seismic (2D and 3D) as discussed in earlier sections. Based on the definitions and guidelines in Section 14.1, all mineral rights leased or owned by the Company, and within Crown Subsurface Mineral Lease KL 305, are assigned to one of the three Mineral Resource categories.


Mining Height:		2.51 metres (8.25 feet)
Ore Density:		2.080 tonnes / cubic metre

The Mineral Resources for Rocanville Potash, as of December 31, 2018 are as follows:



Inferred Resource			1,376 millions of tonnes
Indicated Resource			1,342 millions of tonnes
Measured Resource			1,761 millions of tonnes

Total Resource			4,479 millions of tonnes

Rocanville Mineral Resources are plotted in Figure 19.

The average mineral grade of the Rocanville Mineral Resource is 23.4% K₂0 equivalent, and was determined from 39,245 in-mine samples at Rocanville. See Section 11.2 for more detail.

The tonnage reported in the Rocanville Measured Resource is comprised of the potash that is within 1.6 km (1 mile) of physically sampled location (i.e. drillhole or mine working). Also included as Measured Resource is the potash that is left behind as pillars in mined-out areas of the Rocanville mine. In a potash mine, it is common practice to consider mining remnant pillar mineralization using solution methods after conventional mining is complete, or after a mine is lost to flooding. The Patience Lake mine was successfully converted from a conventional mine to a solution mine after being lost to flooding in 1989. Since conversion to a solution mine is not anticipated in the near future at Rocanville, in-place pillar mineralization remains as a Mineral Resource rather than a Mineral Reserve at this time.

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Figure 19: Map showing Rocanville Mineral Resource with mine workings to December 2018.

15.0 MINERAL RESERVE ESTIMATES

15.1 DEFINITIONS OF MINERAL RESERVE

The Canadian Institute of Mining and Metallurgy and Petroleum (CIM) has defined Mineral Reserve in The CIM Definition Standards for Mineral Resources and Reserves (2014) as:

Proven Mineral Reserve: the economically mineable part of a Measured Mineral Resource. A Proven Mineral Reserve implies a high degree of confidence in the Modifying Factors.

For Saskatchewan, in regions adjacent and contiguous to an operating potash mine, Mineral Reserve categories are characterized by PotashCorp as follows:

Along with this approach, analysis of in-mine samples for potash grade has provided an observation-based understanding of the potash mineralized zone at Rocanville that is far superior to the level of understanding provided by any surface drilling based exploration program. An understanding of the amount of ore that can be conventionally mined from the Measured Resource category using current mining practices comes from nearly 50 years of potash mining experience at Rocanville.

15.2 ROCANVILLE POTASH RESERVE CALCULATIONS

Using the definitions outlined in Section 15.1, part of the Rocanville Measured Resource has been converted to Mineral Reserve. The assigned Mineral Reserve category is dependent on proximity to sampled mined entries also described in Section 15.1. An overall extraction rate

for the Rocanville mine has been applied to the qualifying areas outlined as Measured Resource in Figure 19. This extraction rate is significantly lower than the local extraction rate described in Section 16.1, as it takes into account areas which cannot be mined due to unfavorable geology.

The overall extraction rate at the Rocanville mine is 31%. It was derived by dividing the total tonnes mined to date by the tonnage equivalent of the total area of the mine workings (i.e. the perimeter around the mine workings) less future mining blocks. Since an extraction rate has been applied, Mineral Reserves are considered recoverable ore, and are reported as such.

The Mineral Reserves for Rocanville Potash as of December 31, 2018 are as follows:


Probable Reserve			348 millions of tonnes
Proven Reserve			195 millions of tonnes

Total Reserve			543 millions of tonnes

Rocanville Mineral Reserves are plotted in Figure 20.

The average mineral grade of the Rocanville Mineral Reserve is 23.4% K₂0 equivalent, and was determined from 39,245 in-mine samples at Rocanville.

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Figure 20: Map showing Rocanville Mineral Reserve with mine workings to December 2018.

16.0 MINING METHOD

16.1 MINING OPERATIONS

All conventional potash mines in Saskatchewan operate at 900 m to 1200 m below surface within 9 m to 30 m of the top of the Prairie Evaporite Formation. Over the scale of any typical Saskatchewan potash mine, potash beds are tabular and regionally flat-lying, with only moderate local variations in dip. At Rocanville, potash ore is mined using conventional mining methods, whereby:

•

Shafts are sunk to the potash ore body;

•

Continuous mining machines cut out the ore, which is hoisted to surface through the shafts;

•

Raw potash is processed and concentrated in a mill on surface; and

•

Concentrated finished potash products (near-pure KCl) are sold and shipped to markets in North America and offshore.

Sinking of the two original shafts (Shaft #1 and Shaft #2) from surface to the potash zone was completed in early 1970, and the first potash ore was hoisted by the fall of that year. The Rocanville mine has run on a continuous basis since the first ore was hoisted in 1970, other than short-term shutdowns taken for inventory management purposes or occasional plant maintenance and construction work.

In recent years the Rocanville mine has undergone a major expansion which brought the nameplate capacity of the Rocanville facility to 6.5 million tonnes of finished potash products per year. This work involved sinking a third shaft, enhancement of hoists, major expansions of both mine and mill, major improvements to loadout facilities, and other infrastructure improvements. The recent Rocanville expansion, which was announced in 2007, was substantially complete in 2016, and production was ramped up through 2017. The operational capability of the Rocanville facility as of December 31, 2018 is 5.2 million tonnes per year.

Virtually all Rocanville underground mining rooms are in one potash mineralized zone, within the Esterhazy Member the Prairie Evaporite Formation (the host evaporite salt). In contrast, Nutrien potash mines further west in Saskatchewan mine in a different potash layer, the Patience Lake Member of the Prairie Evaporite. Saskatchewan potash geology is illustrated in Figure 21. Rocanville mine elevations range from approximately 895 m to 1040 m, averaging approximately 955 m. Within the Rocanville Lease, depths to the top of the ore zone can reach up 1250 m (the deepest potash exploration drillhole), but are expected to be shallower than 1200 m over most of the lease area. Mine workings are protected from aquifers in overlying formations by approximately 30 m of overlying salt and potash beds, along with salt plugged porosity in the Lower Dawson Bay Formation, a carbonate layer lying immediately above potash hosting salt beds.

The Rocanville mine is a conventional underground mining operation whereby continuous mining machines are used to excavate the potash ore by the long-room and pillar mining method. Continuous conveyor belts transport ore from the mining face to the bottom of the production shaft. Mining methods employed in Saskatchewan are discussed in Jones and Prugger (1982) and in Gebhardt (1993). The highest mineral grade section of the Rocanville potash seam is approximately 2.3 m (7.5 ‘) thick, with gradations to lower grade sylvinite salts immediately above and below the mining horizon. The actual mining thickness at Rocanville is dictated by the height of continuous boring machines used to cut the ore, which are designed to cut slightly thicker than the high-grade mineralized zone. Historically, Rocanville borers cut at a thickness of 2.44 m (8’). These five older machines were recently adjusted to cut a thicker 2.51 m (8.25’) mining height. Six newly-acquired boring machines cut a slightly thicker 2.59 m (8.5’) mining height. This mining height allows for more headroom with minimal negative impact on ore grade. Mining machines at Rocanville use potassium sensing technology to ensure that rooms are always cut in the best available potash ore. It is difficult to determine at which mining height certain Mineral Resources and Reserves will be cut in the future, so the more conservative mining height of 2.51 m (8.25’) was applied to Mineral Resource and Reserve calculations.

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Figure 21: Typical stratigraphic section correlated with composite photos covering both the Patience Lake Member and the Esterhazy Member potash production intervals. At Rocanville, mining takes place in the Esterhazy Member.

Conservative local extraction rates (never exceeding 45% in any mining block) are employed at all Saskatchewan mines, including Rocanville, in order to minimize potential detrimental effects of mining on overlying strata; this is common practice in flat-lying, tabular ore bodies overlain by water-bearing layers.

From the shaft-bottom, potash ore is hoisted approximately 960 m from the potash level through the vertical shafts to a surface mill. Both production shafts also provide exhaust ventilation from underground workings; the third shaft from surface at Scissors Creek is used for service access, fresh air ventilation and second egress.

Over the 48 year mine life, 248.193 million tonnes of potash ore have been mined and hoisted at Rocanville to produce 80.967 million tonnes of finished potash products (from startup in 1970 to December 31, 2018). The life-of-mine average concentration ratio (raw ore / finished potash products) is 3.07 and the overall extraction rate over this time period is 31%.

Actual potash production tonnages for the Rocanville mine, along with concentration ratios (tonnes mined / tonnes product), are plotted for the past decade in Figure 22.

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Figure 22: Actual mining, production and concentration ratio for the Rocanville mine over the past 10 years.

16.2 RISKS TO POTASH MINING OPERATIONS, WITH EMPHASIS ON WATER INFLOWS

In November 1984 a major brine inflow occurred at Rocanville. A single production room mined into a previously unknown geological disturbance (a vertical “chimney-like” solution collapse), resulting in an uncontrolled inflow into the mine that was as high as approximately 18,927 litres / minute (5,000 US gallons / minute). Mining operations were suspended and all of the mine’s physical and human resources were devoted to sealing the inflow. By the end of January 1985, a concrete plug was installed at the inflow point, and in March 1985, high pressure valves in the plug were shut off. After four months of concerted effort, the brine inflow into the mine was completely contained.

Since 1984 there has been no ingress of subsurface brines of any significance at Rocanville. At present, brine flow into underground workings at Rocanville is effectively nil (not measurable), and inflow into each existing shaft is estimated at less than 3 litres / minute (less than 1 US gallon / minute).

17.0 RECOVERY METHODS

At Rocanville, potash ore has been mined and concentrated to produce saleable quantities of high-grade finished potash products since 1970. Products include granular and standard grade potash used for agriculture applications.

Both flotation methods and crystallization methods are used to concentrate potash ore into finished potash products at the Rocanville mill. A simplified process flow diagram is shown in Figure 23. Raw potash ore is processed on surface, and concentrated finished potash products (near-pure KCl) are sold and shipped to markets in North America and offshore.

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Figure 23: Simplified flow diagram for potash flotation and crystallization milling methods used at Rocanville.

Over the past three years, production of finished potash products at Rocanville was:

2016: 2.720 million tonnes finished potash products at 60.60% K₂O (average grade)

2017: 4.857 million tonnes finished potash products at 60.62% K₂O (average grade)

2018: 5.222 million tonnes finished potash products at 60.46% K₂O (average grade)

Over the past decade actual mill recovery rates have been between 81.5% and 85.7%, averaging 83.5% (see Figure 24). Given the long-term experience with potash geology and actual mill recovery at Rocanville, no fundamental potash milling problems are anticipated in the foreseeable future.

Quality control testing and monitoring geared towards fine-tuning and optimizing potash milling and concentrating processes are conducted on a continual basis at all Nutrien minesites and at Nutrien research facilities. At Rocanville, this is no exception; test work to optimize circuit performance and ensure product quality is carried out on an ongoing basis.

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Figure 24: Rocanville mill recovery rate over the past 10 years.

18.0 PROJECT INFRASTRUCTURE

Infrastructure is in place to meet current and projected requirements for transportation, energy (electricity and natural gas), water and process materials at Rocanville. See also Section 5.0.

At present, high voltage power utilization at the Rocanville Potash is 84 MVA (i.e. 72 MVA to the Rocanville Plant site plus 12 MVA to the Scissors Creek site). The ten-year projection of power utilization indicates that the utility can meet foreseeable future demand.

The Rocanville operation requires a sustained fresh water supply for the milling process which is sourced from two subsurface reservoirs called the Welby Plains Surficial Aquifer and the Welby Plains Middle Aquifer. These aquifers provide a sustainable source of process water for Rocanville milling operations, without having any perceptible impact on other users of water drawn from these aquifers.

19.0 MARKET STUDIES AND CONTRACTS

Potash from Company mines (including Rocanville) has been sold on a continuous basis since mining began in 1968. At present, Nutrien products are sold in more than 50 countries, to three types of end-use:

Fertilizer, focused on balanced plant nutrition to boost crop yields in order to meet the world’s ever-increasing appetite for food (nitrogen, phosphate, potash)

Feed Supplements, focused on animal nutrition (mainly phosphate)

Industrial, focused on products for high-grade food, technical and other applications (nitrogen, phosphate, as phosphoric acid, potash)

The most significant exporters are producers with mines in the large producing regions of Canada, the Middle East and the former Soviet Union, which all have relatively small domestic requirements.

¹	Company potash sales data for years prior to 2018 includes only PotashCorp sales.

World consumption of potash fertilizer has grown over the last decade, with the primary growth regions being developing markets in Asia and Latin America. These are countries with expanding crop production requirements, where potash has historically been under-applied and crop yields lag behind those of the developed world. Although temporary pauses can occur in certain countries, the underlying fundamentals of food demand that encourage increased potash application are expected to continue the growth trends in key importing countries. See Figure 27 for world potash production and demand in 2017.

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Figure 25: Historical Company potash sales 2009 to 2018 in million tonnes / year ².

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Figure 26: Historical Company potash net sales 2009 to 2018 in million USD $ / year².

²	Company potash sales data for years prior to 2018 includes only PotashCorp sales.

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Figure 27: World potash production and demand for 2017.

Table 4: Primary Potash Market Profile


Country/Region	Growth Rate*	Key Consuming Crops
China	8.1%	Vegetables, rice, fruits, corn
India	4.9%	Rice, wheat, vegetables, sugar crops
Other Asia	4.1%	Oil palm, rice, sugar crops, fruits, vegetables
Latin America	3.4%	Soybeans, sugar crops, corn
North America	2.1%	Corn, soybeans

*	5-year CAGR for consumption (2013-2018E)

of 2.5 to 3.0 percent. This growth is driven by strong potash consumption trends in all major potash markets.

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Figure 28: World potash shipments and consumption, 2013-2018E.

dealers, cooperatives, distributors and other fertilizer producers who have both distribution and application capabilities.

Plans and arrangements for potash mining, mineral processing, product transportation, and product sales are established by Nutrien and are within industry norms.

20.0 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT

The tailings management strategy at all Nutrien potash mines in Saskatchewan, including Rocanville, is one of sequestering solid mine tailings in an engineered and provincially licenced Tailings Management Area (TMA) near the surface plant site. The Rocanville TMA currently covers an area of approximately 567 hectares (1400 acres) of land owned by the Company. Solid potash mine tailings typically consist of 85% to 95% rock salt (NaCl) and 5% to 15% insolubles (carbonate mud = CaCO₃, anhydrite mud = CaSO₄, and clays like chlorite, illite, and so on). An engineered slurry-wall has been constructed around the entire Rocanville TMA. The slurry-wall provides secondary containment for any saline mine waters, minimizing brine impacts from the TMA to surrounding surface water bodies and near-surface aquifers. Areas surrounding the TMA are closely monitored: this includes everything from daily visual perimeter inspections to annual investigations and inspections of surrounding subsurface aquifers.

Rocanville currently operates five brine disposal wells near the surface plant of the Rocanville mine (marked in Figure 11) where clear salt brine (i.e. no silt, clay slimes, or other waste) is borehole-injected into the Interlake Carbonates, at a depth of approximately 1200 m to 1400 m below surface (marked in Figure 13). The groundwater in these extensive deep aquifers is naturally saline.

The Rocanville operation requires a sustained fresh water supply for the milling process which is sourced from two subsurface reservoirs called the Welby Plains Surficial Aquifer and the Welby Plains Middle Aquifer. This water supply is provincially licensed and provides a sustainable source of process water for Rocanville milling operations, without having any perceptible impact on other users of water drawn from these aquifers.

In Saskatchewan, all potash tailings management activities are carried out under an “Approval to Operate” granted by the Saskatchewan Ministry of Environment (MOE), the provincial regulator. The Rocanville mine is in compliance with all regulations stipulated by the Environmental Protection Branch of Saskatchewan MOE. The current Rocanville Approval to Operate has been granted to July 1, 2028, the renewal date.

In terms of long-term decommissioning, environmental regulations in the Province of Saskatchewan require that all operating potash mines in Saskatchewan create a long-term decommissioning and reclamation plan that will ensure all surface facilities are removed, and the site is left in a chemically and physically stable condition once mine operations are complete. PotashCorp has conducted numerous studies of this topic, and the most recent decommissioning and reclamation plan for Rocanville was approved by MOE technical staff in October 2016. Because the current expected mine life for Rocanville is many decades into the future, it is not meaningful to come up with detailed engineering designs for decommissioning at present. Instead, decommissioning plans are reviewed every five years, and updated to accommodate new ideas, technological change, incorporation of new data, and adjustments of production forecasts and cost estimates. Any updated decommissioning and reclamation reports generated by this process are submitted to provincial regulatory agencies. For Rocanville, a revised decommissioning and reclamation plan is required in July 2021.

In addition to the long-term decommissioning plan, provincial regulations require that every potash producing company in Saskatchewan set up an Environmental Financial Assurance Fund, which is to be held in trust for the decommissioning, restoration, and rehabilitation of the plant site after mining is complete. This fund is for all mines operated by Nutrien in the province of Saskatchewan (i.e. Allan, Cory, Lanigan, Patience Lake, Lanigan, Rocanville, and Vanscoy).

21.0 CAPITAL AND OPERATING COSTS

The Rocanville mine has been in operation since 1970; in the years immediately preceding this, major capital investment was made to bring this mine into production. Since then, capital expenditures were made on a regular and ongoing basis to sustain production, and to expand production from time to time.

A major refurbishment and expansion of the Rocanville mine was completed in 2013, increasing nameplate capacity to 6.5 million tonnes of finished potash products per year. This work involved construction of a third shaft, enhancement of hoists and shaft conveyances, major expansions of both mine and mill, improvements to loadout facilities, and some infrastructure improvements. All construction was carried out without significant disruption to existing potash production from the site.

22.0 ECONOMIC ANALYSIS

22.1 FUNDAMENTALS

On a cash flow basis, The Company’s potash segment generated USD $5,702 million in net sales over the past three years (2016, 2017 and 2018) based on sales volume of 30.959 million tonnes of finished potash products³. The annual average realized potash price for manufactured products (includes North American and offshore sales) over a 10-year period (2009 – 2018) is plotted in Figure 29.

Over the past three years (2016, 2017, and 2018) the Rocanville mine produced 12.799 million tonnes of finished potash products. In the past three years (2016, 2017, and 2018), the Rocanville mine accounted for 35% of total potash production at The Company over this time period. Rocanville is currently making a positive contribution to the Company’s potash segment.

Given the Company’s previous history (including 48 years of mining at the Rocanville operation), recent market conditions, and extensive reserve base, the economic analysis for Rocanville has met the Company’s internal hurdle rates.

³	Company potash sales data for years prior to 2018 includes only PotashCorp sales.

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Figure 29: Historic annual average realized potash price in USD / tonne⁴.

22.2 TAXES

Royalties are paid to the Province of Saskatchewan, which holds approximately half of the mineral rights in the Rocanville Crown Subsurface Mineral Lease. Royalties from non-Crown lands are paid to various freeholders of mineral rights in Saskatchewan. The crown royalty rate is 3% and is governed by The Subsurface Mineral Royalty Regulations, 2017. The actual amount paid is dependent on selling price and production tonnes.

Municipal taxes are paid based on site property values.

In addition to this, Nutrien pays federal and provincial income taxes based on corporate profits from all its operations in Canada.

⁴	Company annual average realized potash price for years prior to 2018 includes only PotashCorp sales.

23.0 ADJACENT PROPERTIES

The Company Rocanville Potash Lease KL 305 is adjacent to the following potash dispositions (Figure 30).

Producing Subsurface Mineral Leases:

•

Mosaic Esterhazy Holdings ULC (KLSA 003)

•

Mosaic Esterhazy Holdings ULC (KL 105)

•

Mosaic Esterhazy Holdings ULC (KL 126)

Non-producing Potash Exploration Permits and Subsurface Mineral Leases:

•

101211205 Saskatchewan Ltd. (KL 279)

•

BHP Billiton Ltd. (KP 342 – Active Pending Lease)

•

Manitoba Potash Corporation Russell-McAuley Potash Property (Manitoba)

For up-to-date information on Crown Potash Leases and Exploration Permits, see the Saskatchewan Mining and Petroleum GeoAtlas which is available online at the Government of Saskatchewan website.

The Mosaic Company (Mosaic) operates a mine with extensive underground workings within Potash Lease areas KLSA 003, KL 105 and KL 126, which are immediately adjacent to Rocanville Lease KL 305. The Company and Mosaic have negotiated a safety buffer between the two companies’ lease areas, where it is agreed that no mining will occur. This buffer ensures that mine workings in one company’s lease area will not impact workings of the other company.

There are no potash permits or leases south of the Rocanville properties, since this area is a producing oil and gas zone and not a producing potash zone. The Crown will not currently issue either potash exploration permits or potash leases on lands south of Rocanville Lease KL 305.

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Figure 30: Potash properties adjacent to Rocanville Potash.

24.0 OTHER RELEVANT DATA AND INFORMATION

Not applicable.

25.0 INTERPRETATION AND CONCLUSIONS

PotashCorp has a long history of successful potash mining at Rocanville, where potash has been produced for the past 48 years. The authors believe that the experience gained mining and milling potash for this length of time has produced a reliable body of information about potash mineralization, mining and milling at Rocanville.

For Rocanville, mine life can be estimated by dividing the total Mineral Reserve (Proven + Probable) of 543 million tonnes by the average annual mining rate (million tonnes of ore hoisted per year). For Rocanville, the mining rate is defined as equal to the actual three-year running average (consecutive, most recent years). The average mining rate at Rocanville over 2016, 2017 and 2018 was 13.489 million tonnes of potash ore mined and hoisted per year.

If this mining rate is sustained and if Mineral Reserves remain unchanged, then the Rocanville mine life would be 40 years.

This estimate of mine life is likely to change as mining advances further into new mining blocks, and / or if mining rates change.

26.0 RECOMMENDATIONS

Not applicable for a potash mine that has been in operation since 1970.

27.0 REFERENCES

Fuzesy, Anne (1982). Potash in Saskatchewan (44p). Saskatchewan Industry and Resources Report 181.

Gebhardt, E. (1993). Mine planning and design integration, CIM Bulletin, May 1993, pp. 41 – 49.

Government of Saskatchewan (2018). Saskatchewan Mining and Petroleum GeoAtlas.

https://gisappl.saskatchewan.ca/Html5Ext/index.html?viewer=GeoAtlas. Accessed Jan 2019.

Government of Saskatchewan. The Corporation Capital Tax Act of Saskatchewan. Available online at

http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/c38-1.pdf.

Government of Saskatchewan. The Mineral Taxation Act, 1983. Available online at

http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/M17-1.pdf.

Government of Saskatchewan. The Subsurface Mineral Royalty Regulations, 2017. Available online at

http://publications.gov.sk.ca/details.cfm?p=88223&cl=8.

Government of Saskatchewan. The Subsurface Mineral Tenure Regulations, 2015. Available online at

http://www.publications.gov.sk.ca/details.cfm?p=72797.

Jones, P. R. and F. F. Prugger (1982). Underground mining in Saskatchewan potash. Mining Engineering, 34, pp. 1677 – 1683.

Nutrien Pilot Plant (2018). Personal communication on density of insoluble minerals in different ore zones.

Robertson, David S. and Associates (1977). Report on Evaluation of the Saskatchewan Assets of Sylvite of Canada. Unpublished consultant’s report to Potash Corporation of Saskatchewan Inc..

Webmineral Mineralogy Database (2014). http://webmineral.com. Accessed Jan 2018.

Exhibit 99.3

NUTRIEN LTD.

ALLAN POTASH

NATIONAL INSTRUMENT 43-101 TECHNICAL REPORT ON

ALLAN POTASH DEPOSIT (KL 112R A),

SASKATCHEWAN, CANADA

FEBRUARY 20, 2019

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NUTRIEN LTD.

GEOSERVICES & LAND - ENGINEERING, TECHNOLOGY & CAPITAL

500 – 122 FIRST AVENUE SOUTH

SASKATOON, SASKATCHEWAN, CANADA

S7K 7G3

QUALIFIED PERSON: CRAIG FUNK, P. ENG., P. GEO.

DATE AND SIGNATURE PAGE


				/s/ “Craig Funk”
Signature				Craig Funk, P. Eng., P. Geo.
				Director, GeoServices & Land
				Nutrien Ltd.

Date				February 20, 2019

AUTHOR PAGE

Craig Funk, B. Sc., M.Sc., P. Eng., P. Geo. (APEGS Member # 16034)

•

Director, GeoServices & Land – Engineering, Technology & Capital

•

B. Sc. (Geological Engineering – Geophysics), University of Saskatchewan, Saskatoon, Saskatchewan, Canada, 1989

•

M. Sc. (Geophysics), University of Saskatchewan, Saskatoon, Saskatchewan, Canada, 1992

•

with Nutrien or its subsidiaries since 2008

is the qualified person who supervised the preparation of all information presented in this report and who verified the data disclosed herein.

The team of persons who conducted the majority of the work presented in this report consists of:

Jodi Derkach, B. Sc., Cert. GIS, P. Geo. (APEGS Member # 14897)

•

Manager, Land & Resources – Engineering, Technology & Capital

•

B. Sc. (Geology), University of Saskatchewan, Saskatoon, Saskatchewan, Canada, 2007

•

Geographic Information Science for Resource Management Certificate, Saskatchewan Polytechnic, Prince Albert, Saskatchewan, Canada, 2010

•

with Nutrien or its subsidiaries since 2010

Lisa MacKenzie, Cert. GIS

•

Land & GIS Analyst – Engineering, Technology & Capital

•

Geographic Information Science for Resource Management Certificate, Saskatchewan Polytechnic, Prince Albert, Saskatchewan, Canada, 2012

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with Nutrien or its subsidiaries since 2012

TABLE OF CONTENTS


DATE AND SIGNATURE PAGE		2

AUTHOR PAGE		3

TABLE OF CONTENTS		4

LIST OF FIGURES		6

LIST OF TABLES		8

1.0	SUMMARY	9

2.0	INTRODUCTION	12

3.0	RELIANCE ON OTHER EXPERTS	13

4.0	PROPERTY DESCRIPTION AND LOCATION	13

4.1	GENERAL	13

4.2	MINERAL RIGHTS	17

5.0	ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY	19

6.0	HISTORY	21

7.0	GEOLOGICAL SETTING AND MINERALIZATION	21

8.0	DEPOSIT TYPE	26

9.0	EXPLORATION	27

10.0	DRILLING	33

11.0	SAMPLING METHOD AND APPROACH	37

11.1	BASIC APPROACH	37

11.2	MEAN POTASH MINERAL GRADE FROM IN-MINE SAMPLES	40

11.3	POTASH ORE DENSITY FROM IN-MINE MINERAL GRADE MEASUREMENTS	41

12.0	DATA VERIFICATION	43

12.1	ASSAY DATA	43


12.2	EXPLORATION DATA	45

13.0	MINERAL PROCESSING AND METALLURGICAL TESTING	46

14.0	MINERAL RESOURCE ESTIMATES	46

14.1	DEFINITIONS OF MINERAL RESOURCE	46

14.2	ALLAN POTASH RESOURCE CALCULATIONS	47

15.0	MINERAL RESERVE ESTIMATES	50

15.1	DEFINITIONS OF MINERAL RESERVE	50

15.2	ALLAN POTASH RESERVE CALCULATIONS	50

16.0	MINING METHOD	53

16.1	MINING OPERATIONS	53

16.2	RISKS TO POTASH MINING OPERATIONS, WITH EMPHASIS ON WATER INFLOWS	57

17.0	RECOVERY METHODS	57

18.0	PROJECT INFRASTRUCTURE	59

19.0	MARKET STUDIES AND CONTRACTS	59

20.0	ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT	64

21.0	CAPITAL AND OPERATING COSTS	65

22.0	ECONOMIC ANALYSIS	66

22.1	FUNDAMENTALS	66

22.2	TAXES	67

23.0	ADJACENT PROPERTIES	68

24.0	OTHER RELEVANT DATA AND INFORMATION	70

25.0	INTERPRETATION AND CONCLUSIONS	70

26.0	RECOMMENDATIONS	70

27.0	REFERENCES	71

LIST OF FIGURES

Unless otherwise noted, figures for which a source and / or date are not provided are current as of the effective date of this report and were prepared by the Company.


Figure 1: Aerial photo of Allan surface operations, fall, 2012.			9

Figure 2: Actual finished potash products production from the Allan mine over the past 10 years (in million tonnes per year).			11

Figure 3: Map showing location of Nutrien Operations, including Allan.			14

Figure 4: Map showing Allan Potash relative to Saskatchewan potash mineralization (pink). Also shown are Company (green) and other (purple) Crown Subsurface Mineral Leases (Saskatchewan Mining and Petroleum GeoAtlas).			16

Figure 5: Map showing Allan Crown Lease KL 112R A (blue), Unit Area #1 (green), and Unit Area #2 (orange).			18

Figure 6: Map showing infrastructure (City of Saskatoon, towns, rivers, roads, and railways) near Allan Potash. Allan shaft locations are shown by red markers.			20

Figure 7: Thickness of the Prairie Evaporite Formation and area of potash distribution within these salts (from Fuzesy, 1982).			22

Figure 8: Diagrammatic vertical section showing basic layered-Earth stratigraphy in a typical Saskatchewan potash region (from Fuzesy, 1982).			23

Figure 9: Diagrammatic vertical section showing basic stratigraphy of the Prairie Evaporite Formation in the Saskatoon area (from Fuzesy, 1982).			25

Figure 10: Schematic cross-section across southern Saskatchewan of the Prairie Evaporite Formation showing relative position of potash members. At Allan, potash is mined from the Patience Lake Member, labeled “PLM” (from Fuzesy, 1982).			26

Figure 11: Potash exploration at Allan (2D & 3D surface seismic and potash drillholes).			28

Figure 12: Air photo showing the Allan surface operations and Tailings Management Area.			29

Figure 13: Seismic section from the Allan 2004 3D seismic data volume showing relative rock velocities. Vertical exaggeration is 2X. Sea level (SL) is marked in metres and major geological units are labeled.			31


Figure 14: Detail of seismic section from the Allan 3D seismic data volume (see text for explanation). Actual mine room reflection is marked in yellow. Ground surface is at approximately +500 m above Sea Level.			32

Figure 15: Stratigraphic section showing local nomenclature for potash zones and approximate position of prominent clay seams (modified from Robertson 1978).			34

Figure 16: Typical stratigraphic section correlated with composite photos covering the A Zone production interval.			35

Figure 17: Potash assay plot for PCS Allan 09-27-034-01 W3 indicating the best 3.35 m (11’) mining interval.			38

Figure 18: Histogram of potash ore grade from 6,738 Allan in-mine grade samples (data from 1968 through to end of December 2017).			40

Figure 19: Map showing Allan Mineral Resource with mine workings to December 2018.			49

Figure 20: Map showing Allan Mineral Reserve with mine workings to December 2018.			52

Figure 21: Typical stratigraphic section correlated with composite photos covering both the Patience Lake Member and the Esterhazy Member potash production intervals. At Allan, mining takes place in the Upper Patience Lake Member (A Zone).			54

Figure 22: Actual mining, production and concentration ratio for the Allan mine over the past 10 years.			56

Figure 23: Simplified flow diagram for potash flotation and crystallization milling methods used at Allan.			58

Figure 24: Allan mill recovery rate over the past 10 years.			59

Figure 25: Historical Company potash sales 2009 to 2018 in million tonnes / year (from Nutrien Financial Reporting).			61

Figure 26: Historical Company potash net sales 2009 to 2018 in million USD $ / year (from Nutrien Financial Reporting)			61

Figure 27: World potash production and demand for 2017.			62

Figure 28: World potash shipments and consumption, 2013-2018E.			63

Figure 29: Historic annual average realized potash price in USD / tonne (from Nutrien Financial Reporting).			67

Figure 30: Potash properties adjacent to Allan Potash.			69

LIST OF TABLES


Table 1: Potash Mineral Resources and Reserves for Allan, as of December 31, 2018.			12

Table 2: Assay results for all potash test holes within Allan Lease KL 112R A.			36

Table 3: Values for potash assay plot in Figure 17.			39

Table 4: Primary Potash Market Profile			62

EFFECTIVE DATE OF REPORT

The effective date of this report is December 31, 2018, other than where otherwise noted.

1.0

SUMMARY

Nutrien is a corporation organized under the Canada Business Corporations Act, the common shares of which listed and publicly traded on the Toronto and New York stock exchanges (symbol NTR).

The Company owns and operates a potash mine at Allan, Saskatchewan, Canada (Allan Potash, or Allan mine, or Allan). An aerial view of the Allan surface operations is shown in Figure 1. The Allan Crown Subsurface Mineral Lease is numbered KL 112R A, and was expanded in October 2017. Production of potash from the Allan mine began in 1968.

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Figure 1: Aerial photo of Allan surface operations, fall, 2012.

As of December 31, 2018, annual nameplate capacity for Allan was 4.0 million tonnes and annual operational capability is 2.6 million tonnes of finished potash products (concentrated KCl). Estimates of nameplate capacity are based on capacity as per design specifications or Canpotex entitlements once these have been determined. Operational capability is the estimated annual achievable production level at current staffing and operational readiness (estimated at beginning of year), not including any inventory-related shutdowns and unplanned downtime.

While the term potash refers to a wide variety of potassium bearing minerals, in the Allan region of Saskatchewan, the predominant potash mineralization is sylvinite, which is comprised mainly of the minerals sylvite (KCl / potassium-salt) and halite (NaCl / rock salt), with minor amounts water insolubles. Carnallite (KMgCl₃ · 6H₂O) occurs only in trace amounts at Allan. Potash fertilizer is concentrated, nearly pure KCl (i.e. greater than 95% pure KCl), but ore grade is traditionally reported on a % K₂O equivalent basis. The “% K₂O equivalent” gives a standard measurement of the nutrient value of different potassium-bearing rocks and minerals. To convert from % K₂O equivalent tonnes to actual KCl tonnes, multiply by 1.58.

The Allan mine is a conventional underground mining operation whereby continuous mining machines are used to excavate the potash ore by the stress-relief mining method, with continuous conveyor belt transport of ore from the mining face to the bottom of the production shaft. In addition to hoisting potash ore to surface, the production shaft also provides fresh air ventilation to the mine and serves as a secondary egress. The Service Shaft is used for service access, and exhaust ventilation from the mine. Raw potash ore is processed and concentrated on surface, and concentrated finished potash products (near-pure KCl) are sold and shipped to markets in North America and offshore.

Virtually all Allan underground mining rooms are in the potash mineralized zone situated approximately 14 m below the top of the host evaporite salt, the Prairie Evaporite Formation. More specifically, the Allan mine is located within the Patience Lake Member of the Prairie Evaporite Formation. In this Member, there are two potash seams named A Zone (the upper seam) and B Zone (the lower seam); at present, only the A Zone is being mined at Allan. Mine elevations range from approximately 980 m to 1120 m, averaging approximately 1010 m. These depths to A Zone potash mineralization are anticipated over most of the Allan lease area. Mine workings are protected from aquifers in overlying formations by salt and potash beds which overlie the mineralized zone. Conservative local extraction rates (never exceeding 45% in any mining block) are employed at Allan to minimize potential detrimental effects of mining on overlying strata; this is common practice in flat-lying, tabular ore bodies overlain by water-bearing layers.

Tailings Management Area (TMA) and operates two brine disposal wells near the surface plant of the Allan mine.

Over the 50-year mine life, 150.239 million tonnes of potash ore have been mined and hoisted at Allan to produce 52.949 million tonnes of finished potash products (from startup in 1968 to December 31, 2018). The life-of-mine average concentration ratio (raw ore / finished potash products) is 2.84 and the overall extraction rate over this time period is 33%. Actual production of finished potash products at Allan for the last 10 years is shown in Figure 2.

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Figure 2: Actual finished potash products production from the Allan mine over the past 10 years (in million tonnes per year).

Over the past three years (2016, 2017, 2018), actual potash production at Allan has totaled:

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18.593 million tonnes of ore mined and hoisted (6.198 million tonnes per year, on average)

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6.621 million tonnes of concentrated finished potash products produced (2.207 million tonnes per year, on average)

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Average mill feed ore grade was 25.3% K₂0 equivalent

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Average concentration ratio (ore mined / potash produced) was 2.81

The Canadian Institute of Mining and Metallurgy and Petroleum (CIM) has defined Mineral Resources and Reserves in The CIM Definition Standards for Mineral Resources and Reserves (2014). Based on these guidelines, all mineral rights owned or leased by the Company at Allan can be assigned to Mineral Resource categories (Inferred, Indicated, and Measured) and Mineral Reserve categories (Probable and Proven). Mineral Resources (reported as in-place tonnes) and Mineral Reserves (reported as recoverable ore tonnes) for Allan as of December 31, 2018 are outlined in Table 1. Mineral Resources reported are exclusive of Mineral Reserves.

Table 1: Potash Mineral Resources and Reserves for Allan, as of December 31, 2018.


Proven Mineral Reserve (millions of tonnes recoverable ore)	99
Probable Mineral Reserve (millions of tonnes recoverable ore)	250
Total Mineral Reserve (millions of tonnes recoverable ore)	349

Measured Mineral Resource - A Zone (millions of tonnes in-place)	1,006
Measured Mineral Resource - B Zone (millions of tonnes in-place)	1,506
Indicated Mineral Resource - A Zone (millions of tonnes in-place)	366
Indicated Mineral Resource - B Zone (millions of tonnes in-place)	367
Inferred Mineral Resource - A Zone (millions of tonnes in-place)	2,678
Inferred Mineral Resource - B Zone (millions of tonnes in-place)	2,691
Total Mineral Resource (millions of tonnes in-place)	8,614

Average % K₂O Grade - A Zone (from Allan in-mine samples)	24.8	%
Average % K₂O Grade - B Zone (from Lanigan in-mine samples)	20.3	%
Years of Remaining Mine Life	56

The average mineral grade of the Allan A Zone Mineral Resource and Mineral Reserve is 24.8% K₂0 equivalent, and was determined from 6,738 in-mine samples at Allan to the end of December 2017 (discussed further in section 11.2). The average mineral grade of the Allan B Zone Mineral Resource and Mineral Reserve is 20.3% K₂0 equivalent, and was determined from 20,230 in-mine samples at the Lanigan mine to the end of December 2017, where the B Zone has been extensively mined (discussed further in section 11.2).

Potash production in any given year at the Allan potash mine is a function of many variables, so actual production in any given year can vary dramatically from tonnages produced in previous years. The Mineral Reserve tonnage and historic average production are used to estimate remaining mine life. If the average mining rate seen over the past three years (6.198 million tonnes of potash ore mined and hoisted per year) is sustained, and if Mineral Reserves remain unchanged, then the Allan mine life is 56 years from December 31, 2018.

2.0

INTRODUCTION

The purpose of this document is to give a formal reporting of potash Mineral Resource and Reserve for Allan Potash, and to provide a description of the method used to compute Mineral Resource and Reserve tonnages. Sources of geological and geotechnical information analysed

from this study include:

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Publicly available geological maps, reports, and publications (listed in Section 27.0)

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Internal reports on historic exploration drillholes

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Hydrogeological analysis conducted in historic exploration drillholes

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Geological studies conducted at the Allan mine over the past 50 years

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In-mine geophysical studies conducted at the Allan mine over the past 50 years

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Geotechnical studies conducted for the Allan mine over the past 50 years

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2D surface seismic exploration data (approximately 248 linear km collected to date)

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3D surface seismic exploration data (an area covering approximately 363 km² to date)

All data and reports are archived at Nutrien corporate offices in Saskatoon and at the Allan minesite. In addition, drillhole data (well-log data, drilling reports, drill-stem test results, etc.) are archived with the Saskatchewan Ministry of the Economy, Integrated Resource Information System (IRIS), and surface seismic data (shot records and stack) are archived through an offsite commercial data storage service.

All geological and geophysical data and information presented in this report were personally reviewed and inspected by Nutrien technical staff under the supervision of Craig Funk (P. Eng., P. Geo., Director, Earth Science). All historic mining and mineral rights data and information presented in this report were personally reviewed and inspected by Lisa MacKenzie (GIS Cert.) and Jodi Derkach (GIS Cert., P. Geo.). Jodi Derkach (GIS Cert., P. Geo.), Tanner Soroka (P. Geo.), and James Isbister (G.I.T) conducted or were involved with geological studies and investigations at Allan, and Randy Brehm (G.I.T.), and Matthew van den Berghe (G.I.T) conducted or were involved with geophysical studies and investigations at Allan. Each of these staff visits the Allan mine numerous times every year. Additionally, geological and geophysical data and information pertaining to the Allan mine are regularly presented to and discussed with technical and engineering staff from the Allan mine.

3.0

RELIANCE ON OTHER EXPERTS

Responsibility for the accuracy of the technical data presented in this report is assumed by the authors. Outside experts were not used in the preparation of this report.

4.0

PROPERTY DESCRIPTION AND LOCATION

4.1 GENERAL

The Allan mine is located in central Saskatchewan, approximately 45 kilometers east of the city

of Saskatoon, Saskatchewan. The general location is shown on the map in Figure 3.

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Figure 3: Map showing location of Nutrien Operations, including Allan.

The Legal Description (Saskatchewan Township / Range) of the Allan surface plant is Section 22 Township 34 Range 01 West of 3^rd Meridian.

More precisely, the Allan Shaft #2 collar is located at:


—	Latitude:	51 degrees 55 minutes 55.56 seconds North
—	Longitude:	106 degrees 04 minutes 18.84 seconds West
—	Elevation:	524.26 metres above mean sea level (SL)

—	Northing:	5,754,028.978 m
—	Easting:	426,303.225 m
—	Projection:	UTM
—	Datum:	NAD83
—	Zone:	13

The Company owns approximately 3,212 hectares (7,938 acres) of surface rights required for current Allan mine operations, including all areas covered by the existing surface plant and Tailings Management Area, and all surface lands required for anticipated future Allan mine and expanded milling operations.

All permits and approvals required for the operation of a potash mine in Saskatchewan are in place at Allan.

Figure 4 is a more detailed map showing the location of Allan Potash relative to the potash deposits in Saskatchewan.

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Figure 4: Map showing Allan Potash relative to Saskatchewan potash mineralization (pink). Also shown are Company (green) and other (purple) Crown Subsurface Mineral Leases (Saskatchewan Mining and Petroleum GeoAtlas).

4.2

MINERAL RIGHTS

Mineral rights at Allan are mined pursuant to mining leases with the Province of Saskatchewan, Canada (the Crown), and with non-Crown (Freehold) mineral rights owners. Crown mineral rights are governed by The Subsurface Mineral Tenure Regulations, 2015, and Crown Leases are approved and issued by the Ministry of the Economy. The original Allan Crown Subsurface Mineral Lease, numbered KL 112, was signed and executed in September 1962. In the following years, minor amendments were made to the Lease, resulting in Crown Subsurface Mineral Lease KL 112R. In October 2017, a large area of land totaling 20,784 hectares (51,359 acres) was added to the Lease resulting in Crown Subsurface Mineral Lease KL 112R A.

KL 112R A covers an area of approximately 75,112 hectares (185,605 acres), as shown in Figure 5. At Allan, the Company has leased potash mineral rights for 45,484 hectares (112,393 acres) of Crown Land and owns or has leased approximately 17,932 hectares (44,311 acres) of Freehold Land within the lease boundary. The Allan Crown Lease term is for a period of 21 years from September 2004, with renewals (at the Company’s option) for 21 year periods. Freehold Lands also remain under lease providing, generally, that production is continuing and that there is a continuation of the Crown Lease.

Within the Allan Crown Lease area, 19,183 hectares (47,403 acres) are mined pursuant to Unitization Agreements with mineral rights holders (Crown and Freehold) within two Unitized Areas shown in Figure 5. Allan Unit Area #1 includes 9,888 hectares (24,343 acres), while Allan Unit Area #2 includes 9,295 hectares (22,969 acres).

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Figure 5: Map showing Allan Crown Lease KL 112R A (blue), Unit Area #1 (green), and Unit Area #2 (orange).

5.0

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

The Allan mine surface facilities are accessed by an existing paved road that is part of the Saskatchewan Provincial Highway System. All potash product is shipped by rail over existing track. Location of the Allan Potash with respect to the features described in this section (major road and rail infrastructure, as well as nearby river systems) is shown in Figure 6.

The Allan mine is served by a number of villages within 50 kilometres of the minesite. The nearest city is Saskatoon (45 km distant).

Allan is situated near the northern extent of the Great Plains of North America. Topography is relatively flat, with gently rolling hills and occasional valleys. There are no rivers or other major watercourse channels near the Allan minesite. Climate at the Allan mine is typical for an inland prairie location at latitude 52º North (often characterized as “mid-latitude steppe” climate).

Part of the normal surface infrastructure associated with operating the potash mine in Saskatchewan includes waste disposal on the land and disposal of salt brine into deep subsurface aquifers. Facilities to carry out all aspects of these tasks are in place at Allan (see Section 20.0).

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Figure 6: Map showing infrastructure (City of Saskatoon, towns, rivers, roads, and railways) near Allan Potash. Allan shaft locations are shown by red markers.

6.0

HISTORY

Exploration drilling for potash in the Allan area was carried out in the 1950s and 1960s. The Allan mine was built by a consortium of companies (U. S. Borax, Homestake Potash Company, and Swift Canadian Company) in the 1960s. Potash production began at Allan in April 1968 and the mine has run on a continuous basis since then (other than short-term shutdowns taken for inventory management purposes or occasional plant maintenance and construction work).

PotashCorp acquired a 60% ownership of the Allan mine in 1978 (through purchase of the U. S. Borax and Swift Canadian interests), and became the operator of the mine in 1981. In 1990, PotashCorp purchased the remaining 40% interest.

Effective January 1, 2018, PotashCorp and Agrium completed the Arrangement. As a result of completing the Arrangement, PotashCorp and Agrium are wholly-owned subsidiaries of Nutrien.

Both flotation and crystallization methods are used at Allan to produce granular, standard, and suspension-grade potash products. Debottlenecking and compaction expansion projects were completed at Allan during two phases of construction in 2005 and 2007. A major refurbishment and expansion of the Allan mine was completed in 2013, increasing nameplate capacity to 4.0 million tonnes of finished potash products per year.

7.0

GEOLOGICAL SETTING AND MINERALIZATION

LOGO

Figure 7: Thickness of the Prairie Evaporite Formation and area of potash distribution within these salts (from Fuzesy, 1982).

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Figure 8: Diagrammatic vertical section showing basic layered-Earth stratigraphy in a typical Saskatchewan potash region (from Fuzesy, 1982).

Over the past three years (2016, 2017, 2018), the average, measured potash ore grade of the mill feed at Allan was 25.3% K₂0 equivalent. The average ore grade reported from 18 historic surface drillhole intersections, all within Allan Subsurface Mineral Lease KL 112R A, is 26.65% K₂0 equivalent (discussed further in Section 10.0). The average ore grade observed from 6,738 in-mine samples collected to the end of December 2017 is 24.8% K₂0 equivalent (discussed further in Section 11.2).

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Figure 9: Diagrammatic vertical section showing basic stratigraphy of the Prairie Evaporite Formation in the Saskatoon area (from Fuzesy, 1982).

8.0

DEPOSIT TYPE

The Allan potash deposit lies within the Patience Lake Member of Prairie Evaporite Formation. There are two potash seams named A Zone and B Zone within this Member; at present, only the A Zone is being mined at Allan. Some test mining has been carried out in the B Zone, but no mining is done in this layer at present. Neither the Esterhazy nor the White Bear Potash Members are present in the Allan area. The Belle Plaine Potash Member is not well-developed, and therefore is not mined.

Allan potash mineralization occurs at about 1000 metres depth below surface. The A Zone is approximately 3.35 metres thick and occurs near the top of the Prairie Evaporite Formation salts. Salt cover from the ore zone to overlying units is approximately 14 m. The Allan mine operates as a conventional, underground potash mine.

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Figure 10: Schematic cross-section across southern Saskatchewan of the Prairie Evaporite Formation showing relative position of potash members. At Allan, potash is mined from the Patience Lake Member, labeled “PLM” (from Fuzesy, 1982).

9.0

EXPLORATION

Before the Allan mine was established in 1968, all exploration consisted of drilling from surface and analysis of core from these drillholes; drilling results are discussed in Section 10.0. Since mining began in 1968, there has been just one exploration drillhole; this drillhole was completed in 1969. A map showing potash exploration coverage at Allan (drillholes, 2D and 3D seismic coverage) is shown in Figure 11. A detailed air photo showing the area around the Allan surface operations is shown in Figure 12.

A total of 248 linear kilometres of 2D seismic lines have been acquired at Allan. Between 1988 and 2015, 3D seismic has been acquired over an area covering 363 square kilometres. The most recent seismic survey was conducted in 2015 and accounted for 49.5 square kilometres of the total square kilometres stated above.

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Figure 11: Potash exploration at Allan (2D & 3D surface seismic and potash drillholes).

28 `

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Figure 12: Air photo showing the Allan surface operations and Tailings Management Area.

A typical seismic section from the Allan area is shown in Figure 13. This is a fence section extracted from the “Allan 2004” 3D survey. A 2x vertical stretch has been applied to these data. The vertical scale is in metres relative to sea level (SL). The seismic section is coloured by rock velocities computed from the seismic data: blues are slow (shales), reds are fast (carbonates), and pinks / whites are intermediate (sand, salt). Note that the reflectors at both top and bottom of the unit marked Prairie Evaporite (salt) are continuous. This indicates an undisturbed, flat-lying salt within which potash is likely to be found based on 50 years of mining experience at Allan. The reflection from an Allan mine panel also shows up.

Figure 14 is a detailed (zoomed-in) view of the data plotted in Figure 13. In this figure, mine elevations from the in-mine level survey are added into the seismic data volume; the seismic data were acquired in 2004 and the room plotted in the figure was cut before seismic acquisition.

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Figure 13: Seismic section from the Allan 2004 3D seismic data volume showing relative rock velocities. Vertical exaggeration is 2X. Sea level (SL) is marked in metres and major geological units are labeled.

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Figure 14: Detail of seismic section from the Allan 3D seismic data volume (see text for explanation). Actual mine room reflection is marked in yellow. Ground surface is at approximately +500 m above Sea Level.

10.0

DRILLING

For the original Allan potash test holes drilled in the 1950s and 1960s, the primary objective of this drilling was to sample the potash horizons to establish basic mining parameters. Seismic surveys (2D) were done sparingly in those days, so the drillhole information was relied upon heavily to evaluate potash deposits. Test holes would penetrate the evaporite section with a hydrocarbon based drilling mud (oil-based or diesel fuel) to protect the potash mineralization from dissolution. Basic geophysical well-logs were acquired, and in many cases, drill stem tests were run on the Dawson Bay Formation to help assess mine inflow potential. Core samples from the targeted potash intersections were split or quartered (cut with a masonry saw) crushed and analysed to establish potash grades.

Relatively thin interbeds or seams, referred to as clay seams in the potash industry, are an ever-present component of the A Zone and B Zone at Allan. Figure 15 shows the basic stratigraphic relationships. These seams, along with the clay or clay-like material disseminated throughout the rock, make up the water insoluble portion of the mineralized horizons. The same sequences of clay seams can be correlated for many kilometres across the central Saskatchewan potash mining district.

At Allan, a particular sequence of three clay seams marks the top of the A Zone, as illustrated in Figure 16. These seams are used to guide the vertical positioning of the mining machine. The uppermost portion of the sequence of three seams is maintained at the top of the mining cut to keep the cutting “on grade”. Cutting too high above this upper seam or top marker results in dilution, as halite (rather than sylvinite) immediately overlies the production zone. In practice though, the top marker seam is slightly overcut (between 10 cm to 20 cm) to prevent an unstable condition from being created. Clay seams are often planes of weakness, and if they are undercut, material immediately below the clay seam becomes a hazard as it may separate and fall. Since the hazard must be remediated prior to proceeding, thus slowing production, the moderately diluted mineral grade that results from the overcutting is preferable from a safety point of view.

The A Zone mining interval was historically fixed at 3.35 m (11’). Recently acquired mining machines cut at a fixed height of 3.65 m (12’). At present, seven older mining machines cut at a height of 3.35 m (11’) and four new mining machines cut at a height of 3.65 m (12’). These mining heights allow for comfortable working headroom and efficient extraction of potash ore. It is difficult to determine at which mining height certain Mineral Resources and Reserves will be cut in the future, so the more conservative mining height of 3.35 m (11’) was applied to Mineral Resource and Reserve calculations.

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Figure 15: Stratigraphic section showing local nomenclature for potash zones and approximate position of prominent clay seams (modified from Robertson 1978).

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Figure 16: Typical stratigraphic section correlated with composite photos covering the A Zone production interval.

The original exploration area was explored with a number of test holes spaced at intervals of 1.6 km to 6.4 km (1 – 4 miles). Assays from most of these original test holes were studied by independent consultant David S. Robertson and Associates (1978) and are found in Table 2. An additional six historical test holes were studied by Nutrien staff in 2018; these drillhole assays are also listed in Table 2 below. In each case, the best 3.35 m (11’) mining interval intersected in each drillhole was determined from the assay values, using clay marker seams as a guide. Note that one of the above-mentioned test holes was omitted from the assay calculation due to a section of missing core in the ore zone; one was omitted due to erroneous assay data which could not be resolved; and, another two were omitted due to an ore grade of less than 15% K₂O. With 50 years of mining experience at Allan, it is the opinion of the authors that areas of low grade (i.e. <15% K₂O) are localized with a relatively small lateral extent.

Drillhole assay data for the A Zone at Allan gives an estimated mean grade of 26.65% K₂O with 4.96% water insolubles.

B Zone mineralization is indicated by gamma ray geophysical log response in each of the exploration drillholes listed in Table 2 indicating a potash Mineral Resource. Some test mining of the B Zone has been done. However, sustained production from that zone has not been established. Assay results for the B Zone are not presented here.

Table 2: Assay results for all potash test holes within Allan Lease KL 112R A.


Average in 3.35 m (11’) mining interval (undiluted)
Drillhole	Year Drilled	% K₂O		% Water Insolubles
04-10-033-01 W3	1954		*		*
12-32-034-02 W3	1956		28.74		5.76
16-11-033-01W3	1956		*		*
04-29-034-01 W3	1957		25.79		4.74
01-25-034-01 W3	1957		28.05		4.74
16-11-034-02 W3	1957		29.05		3.40
13-11-034-01 W3	1957		28.75		4.54
13-11-034-03 W3	1957		21.97		1.74
16-09-035-01 W3	1957		25.04		5.11
05-26-035-01 W3	1957		16.78		*
09-29-033-02 W3	1957		*		*
09-28-034-01 W3	1961		29.53		5.26
09-27-034-01 W3	1961		30.63		4.52
09-26-034-01 W3	1961		27.71		6.33
09-33-034-01 W3	1961		23.95		5.89
08-34-034-01 W3	1961		26.31		5.76
09-35-034-01 W3	1961		25.89		8.64
05-22A-034-01 W3	1961		26.47		3.19
16-14-034-01 W3	1962		26.78		5.25
01-17-034-01 W3	1962		28.63		5.29
01-12-034-01 W3	1962		*		*
14-23-034-03 W3	1969		29.56		4.18
Average (from 18 usable values):			26.65		4.96

Due to the remarkably consistent mineralogy and continuity of the resource, as experienced through 50 years of mine production, no potash exploration drilling has been done at Allan since 1969. Instead of exploration drillholes, seismic surveying has been relied upon to explore ahead of mine development. Where normal Prairie Evaporite sequences are mapped in the seismic data, potash beds have unfailingly been present. Localized, relatively small mine anomalies, not mapped in seismic data do occur. When they do, they are dealt with in the

normal course of mining and extraction through these anomalous areas is typically minimized. Anomalies associated with possible water inflow problems, which are mapped in the seismic data, are avoided.

11.0

SAMPLING METHOD AND APPROACH

11.1

BASIC APPROACH

Exploration in the Allan area was conducted in the 1950s and 1960s. Sampling and assaying of potash core samples was done using methods considered consistent with standard procedures for potash exploration at these times.

Drillhole sampling methods have remained essentially the same over the years. Potash core samples are acquired as described in earlier sections of this report. Short segments of core usually about 1 foot (0.3 m) in length are labeled based on visible changes in mineralization, and sometimes based on more or less fixed intervals. Each segment of core is then split using some type of rock or masonry saw. The split portion of core is then bagged and labeled and sent to a laboratory for chemical analysis. Historical potash samples remain stored at the Subsurface Geological Laboratory (Regina, Saskatchewan) of the Saskatchewan Ministry of the Economy. Most of these have deteriorated substantially.

An assay plot for drillhole PCS Allan 09-27-034-01 W3 is shown below in Figure 17. Similar data were compiled for all historical potash test holes. The best 3.35 m (11’) mining interval intersected in each drillhole, as discussed in Section 10.0, is determined from the assay values, using clay seams as a guide. Table 3 lists the assay values plotted in Figure 17.

LOGO

Figure 17: Potash assay plot for PCS Allan 09-27-034-01 W3 indicating the best 3.35 m (11’) mining interval.

Table 3: Values for potash assay plot in Figure 17.

PCS Allan 09-27-03-034-01 W3 Assay Values


#	From (m)	To (m)	Interval (m)	% K2O Total	% Insolubles	% Carnallite
22	1016.36	1016.63	0.27	30.61	1.70	0.00
23	1016.63	1016.72	0.09	4.12	12.29	0.00
24	1016.72	1016.84	0.12	7.51	30.77	0.00
25	1016.84	1017.24	0.40	2.83	1.10	0.69
26	1017.24	1017.76	0.52	7.33	0.68	0.34
3.35 m (11’) Mining Interval Top of Cut 1017.76 m

27	1017.76	1018.18	0.43	22.31	1.99	0.46
28	1018.18	1018.25	0.06	4.40	24.49	2.06
29	1018.25	1018.52	0.27	20.55	0.51	0.11
30	1018.52	1018.73	0.21	23.13	7.12	0.80
31	1018.73	1019.25	0.52	37.25	1.52	0.34
32	1019.25	1019.83	0.58	35.79	3.05	0.69
33	1019.83	1020.29	0.46	32.02	4.76	1.14
34	1020.29	1020.68	0.40	35.06	1.76	0.91
35	1020.68	1020.87	0.18	34.75	0.47	0.57
36	1020.87	1021.11	0.24	30.06	8.15	1.71
3.35 m (11’) Mining Interval Base of Cut 1021.11 m
37	1021.11	1021.23	0.12	14.80	7.79	2.29
38	1021.23	1021.38	0.15	2.46	20.73	1.26
39	1021.38	1021.54	0.15	0.47	28.53	0.80
40	1021.54	1021.72	0.18	2.63	11.99	1.83
3.35 m (11’) Mining Interval Weighted Average				30.63	3.43	0.75

A total of 6,738 in-mine ore grade samples were collected at Allan to the end of December 2017 (discussed further in section 11.2). All in-mine samples were analysed in the Allan mill laboratory using analysis techniques that were up-to-date for the era in which the sample was collected.

samples can be used for control standards as required in QA/QC sections of standard analytical procedures.

In the opinion of the authors, the sampling methods are acceptable, are consistent with industry-standard practices, and are adequate for Mineral Resource and Reserve estimation purposes.

11.2

MEAN POTASH MINERAL GRADE FROM IN-MINE SAMPLES

At Allan, in-mine grade samples are taken from the floor approximately once per week per active mining face. This is roughly equivalent to a sample taken every 68 m to 74 m in production panels, and a sample taken every 85 m to 128 m in development panels. Since start-up in 1968 through to the end of December 2017, a total of 6,738 in-mine potash mineral grade samples were collected from the Allan A Zone, the main potash horizon at Allan. In-mine samples collected and analysed in 2018 contributed no meaningful change to the overall mineral ore grade. All samples were analysed in the Allan mill laboratory using analysis techniques that were up-to-date for the era in which the sample was collected. Figure 18 shows a histogram of A Zone in-mine grade sample results from the Allan mine.

LOGO

Figure 18: Histogram of potash ore grade from 6,738 Allan in-mine grade samples (data from 1968 through to end of December 2017).

The median ore grade for this family of in-mine samples is 25.5% K₂O equivalent and the mean ore grade is 24.8%. This is considered to be a more representative estimate of expected potash ore grade at Allan than drillhole assay results presented in Section 10.0.

For the B Zone at Allan, mineral grade is reported to be 20.3% K₂O equivalent, the grade observed from 20,230 in-mine samples at the Lanigan mine where the B Zone has been extensively mined. Even though Allan mine is some distance from Lanigan, this is considered the best estimate of expected mineral grade for this potash layer because the deposit is known to be regionally continuous from west of Cory to east of Lanigan (Fuzesy, 1982 and references therein). Although it is possible that once mining proceeds into the B Zone the reported grade could change from what is reported, it is expected that any such change would be minimal.

11.3

POTASH ORE DENSITY FROM IN-MINE MINERAL GRADE MEASUREMENTS

Another approach is to look up density values for the minerals which constitute potash rock – values determined in a laboratory to a high degree of accuracy and published in reliable scientific journals / textbooks – then apply these densities to the bulk-rock in some way. Given that the density of each pure mineral is quantified and known, the only difficult aspect of this approach is determining what proportion of each mineral makes up the bulk-rock at a particular sample location. This is the methodology that was used to determine an estimate of bulk-rock density for the Allan ore zone. An obvious benefit of this approach is that a mean value computed on the distribution shown in Figure 18 (6,738 sample points) has a much greater confidence interval than a mean value computed from 18 drillhole assays.

The main mineralogical components of the ore zones of Saskatchewan’s Prairie Evaporite Formation are:

•

Halite – NaCl

•

Sylvite – KCl

•

Carnallite – KMgCl₃· 6(H₂O)

•

Insolubles – dolomite, muscovite, clinochlore, potassium feldspar, illite, quartz, anhydrite, and other minor mineral components

All Nutrien potash mines measure and record the in-mine % K₂O grade and insoluble content of the mined rock. The magnesium content is not measured at Allan, since carnallite is not a significant component of the ore here. From this set of measurements, the density of the ore can be calculated. The required composition and mineral density information for each mineral component is given below (Webmineral Mineralogy Database):

Halite – NaCl


• Na		39.34%
• Cl		60.66%
• Oxide form Na₂O		53.03%
• Mineral density		2170 kg / m³

Sylvite – KCl

• K		52.45%
• Cl		47.55%
• Oxide form K₂O		63.18%
• Mineral density		1990 kg / m³

Insolubles (Allan A Zone)

•

Component minerals: dolomite, muscovite, clinochlore, potassium feldspar, illite, quartz, anhydrite, and other minor mineral components

•

Average density 2510 kg / m³ (Nutrien Pilot Plant, 2018)

The value for insoluble density is based on known densities of the constituent parts of the insoluble components of the mineralization and the average occurrence of these insoluble components, which is known from the 50 years of mining experience at Allan. Assuming the lowest plausible density of insolubles known for Saskatchewan potash deposits of this nature, the effect upon overall bulk-rock ore density and Mineral Resource and Reserve calculations would be negligible.

The mineral composition of potash ore is halite, sylvite, and insolubles. From 6,738 Allan A Zone in-mine grade samples, raw ore composition is:

% Sylvite = 39.3 (converted from % K₂O)

% Insolubles = 2.7

% Carnallite = 0.0

The percent of halite is assumed to be:

% Halite = (100 - % Sylvite - % Insol. - % Carnallite)

= (100 - 39.3 - 2.7 - 0.0)

= 58.1

Applying this methodology, and using these mean grade data gives a mean bulk-rock density for Allan A Zone potash of:

RHObulk-rock

= (Halite density * % Halite) +

(Sylvite density * % Sylvite) +

(Insol. density * % Insol.)

= (2170 * % Halite) +

(1990 * % Sylvite) +

(2510 * % Insol.)

= 2110

RHO_bulk-rock(Allan Zone) = 2110 kg / m³

This method is as accurate as the ore grade measurements and mineral density estimates.

To date, not enough B Zone mining has been carried out at Allan to permit a bulk density calculation based on Allan in-mine grade samples. The mining of 3.537 million tonnes of the B Zone represents a relatively small amount of material for a potash mine. The historic mining that was conducted in the B Zone at Allan was localized in only one geographic area, so data from this mining is not considered representative of what will be seen once mining proceeds in this layer. Although it is possible that once enough mining has occurred in the B Zone to give enough samples with all constituent minerals measured, the reported proportions of the various mineral constituents could change from what is reported. It is expected that any such change would have only a minimal effect on bulk-rock density used in tonnage calculations.

Instead, the potash bulk-rock density is calculated using 20,230 in-mine grade samples from Lanigan B Zone:

RHO_bulk-rock(Allan B Zone) = RHO_bulk-rock(Lanigan B Zone) = 2120 kg / m³

This estimate is considered acceptable since both Allan B Zone and Lanigan B Zone are the same potash seam. Should the Allan B Zone bulk density change from the predicted value of 2120 kg / m³, the later defined Allan B Zone Mineral Resources and Reserves in Sections 14.2 and 15.2 will also change, albeit, insignificantly.

12.0

DATA VERIFICATION

12.1

ASSAY DATA

Most of the original drillhole assays were studied by independent consultant David S. Robertson and Associates (1978). In 2018, six historical drillhole assay results were studied by Nutrien technical staff, Jodi Derkach (GIS Cert., P. Geo.) and Tanner Soroka (P. Geo.).

The original assay results for core samples from historical drillholes were taken as accurate in these studies, as there is no way to reliably reanalyse these samples. Most of the remaining samples in storage have long since deteriorated to the point where they are not usable.

Ore grades of in-mine samples are measured inhouse at the Allan mine laboratory by Company staff using modern, standard chemical analysis tools and procedures; an independent agency does not verify these results. However, check sampling through the SPPA program, discussed in Section 11.1, does occur.

It should be noted that assay results from historical drillholes match mine sample results closely – within approximately 0.9% – even though sample spacing is obviously much greater in the case of wells. This fact is a validation of the methodology. Based on 50 years of in-mine experience at Allan, historical assay results are considered acceptable and provide a good basis for estimating ore grade in areas of future mining at Allan. However, the mean mineral grade of 24.8% K₂O equivalent determined from 6,738 in-mine grade samples is thought to provide the most accurate measurement of potash grade for the Allan mine.

12.2

EXPLORATION DATA

The purpose of any mineral exploration program is to determine extent, continuity, and grade of mineralization to a certain level of confidence and accuracy. For potash exploration, it is important to minimize the amount of cross-formational drilling, since each drillhole is a potential conduit for subsurface groundwater from overlying (or underlying) water-bearing formations into future mine workings. Every potash test drillhole from surface sterilizes potash mineralization; a safety pillar is required around every surface drillhole once underground mining commences. This is the main reason that exploration drilling has not been carried out at Allan in recent years.

Initial sampling and assaying of cores was done during potash exploration at Allan in the 1950s and 1960s. Methods were consistent with standard procedures for that era. The mine began production in 1968 and, with the exception of a single potash test hole in 1969, no further core drilling has been carried out since then. This approach to potash sampling is in accordance with widely accepted industry practice for areas adjacent and contiguous to an existing operating potash mine.

Assay of physical samples (drillhole cores and/or in-mine samples) is the only way to gain information about mineral grade, but extent and continuity of mineralization are correctly determined using data collected from geophysical surveys correlated with historic drilling information. To date, surface seismic data at Allan have been collected, analysed, and verified by Company staff, at times, in cooperation with an independent consultant. Ultimate responsibility for final analyses including depth conversion (seismic depth migration), as well as the accuracy of these data, rests with Nutrien qualified persons.

Data for the Mineral Resource and Reserve estimates for Allan mine reported in Sections 14.0 and 15.0 were verified by Company staff as follows:

•

Annual review of potash assay sample information (drillholes and in-mine grade samples),

•

Annual review of surface geophysical exploration results (3D and 2D seismic data),

•

Annual crosscheck of mined tonnages reported by minesite technical staff with tonnages estimated from mine survey information, and

•

Annual crosscheck of Mineral Resource and Reserve calculations carried out by corporate technical staff.

13.0

MINERAL PROCESSING AND METALLURGICAL TESTING

At Allan, potash ore has been mined and concentrated using flotation and crystallization methods to produce saleable quantities of high-grade finished potash products since 1968.

Over the 50-year mine life, 150.239 million tonnes of potash ore have been mined and hoisted to produce 52.949 million tonnes of finished potash product (from startup in 1968 to December 31, 2018). Given this level of sustained production over 50 years, basic mineralogical processing and prospective metallurgical testing of Allan potash is not considered relevant.

See also Section 17.0.

14.0

MINERAL RESOURCE ESTIMATES

14.1

DEFINITIONS OF MINERAL RESOURCE

The Canadian Institute of Mining and Metallurgy and Petroleum (CIM) has defined Mineral Resource in The CIM Definition Standards for Mineral Resources and Reserves (2014) as:

The mine began production in 1968 and, with the exception of a single test hole in 1969, no further core drilling has been carried out since then. Instead, exploration involved collecting surface seismic data, which became better in quality over the years. Exploration drilling has demonstrated the presence of the potash horizon, and seismic coverage shows the continuity of the Prairie Evaporite Formation within which the potash horizon occurs.

Along with this approach, analysis of in-mine samples for potash grade has provided an observation-based understanding of the potash mineralized zone at Allan that is far superior to the level of understanding provided by any surface drilling based exploration program. The authors believe that this approach provides a body of information that guides and constrains exploration inferences in a much better way than could be achieved from any conventional exploration investigation in areas immediately surrounding, and contiguous to, the Allan potash mine.

14.2

ALLAN POTASH RESOURCE CALCULATIONS

Exploration information used to calculate reported Mineral Resource tonnages at Allan consist of both physical sampling (drillhole and in-mine) and surface seismic (2D and 3D) as discussed in earlier sections. Based on the definitions and guidelines in Section 14.1, all mineral rights leased or owned by the Company, and within Crown Subsurface Mineral Lease KL 112R A, are assigned to one of the three Mineral Resource categories.


Mining Height:		3.35 metres (11 feet)
Ore Density:		2.110 tonnes / cubic metre (A Zone)
Ore Density:		2.120 tonnes / cubic metre (B Zone)

The Mineral Resources for Allan, as of December 31, 2018 are as follows:

Allan A Zone:


Inferred Resource	2,678	millions of tonnes
Indicated Resource	366	millions of tonnes
Measured Resource	1,006	millions of tonnes

Total A Zone Resource	4,050	millions of tonnes

Allan B Zone:


Inferred Resource	2,691	millions of tonnes
Indicated Resource	367	millions of tonnes
Measured Resource	1,506	millions of tonnes

Total B Zone Resource	4,564	millions of tonnes

Total for Allan (A Zone + B Zone):


Inferred Resource	5,369	millions of tonnes
Indicated Resource	733	millions of tonnes
Measured Resource	2,512	millions of tonnes

Total A Zone + B Zone Resource	8,614	millions of tonnes

Allan Mineral Resources are plotted in Figure 19.

The average mineral grade of the Allan A Zone Mineral Resource is 24.8% K₂0 equivalent, and was determined from 6,738 in-mine samples at Allan. The average mineral grade of the Allan B Zone Mineral Resource is 20.3% K₂0 equivalent, and was determined from 20,230 in-mine samples at Lanigan mine where the B Zone has been extensively mined. See Section 11.2 for more detail.

The tonnage reported in the Allan A Zone Measured Resource is comprised of the potash that is within 1.6 km (1 mile) of physically sampled location (i.e. drillholes or mine workings). Also included as Measured Resource is the potash that is left behind as pillars in mined-out areas of the Allan mine. In a potash mine, it is common practice to consider mining remnant pillar mineralization using solution methods after conventional mining is complete, or after a mine is lost to flooding. The Patience Lake mine was successfully converted from a conventional mine to a solution mine after being lost to flooding in 1989. Since conversion to a solution mine is not anticipated in the near future at Allan, in-place pillar mineralization remains as a Mineral Resource rather than a Mineral Reserve at this time.

LOGO

Figure 19: Map showing Allan Mineral Resource with mine workings to December 2018.

15.0

MINERAL RESERVE ESTIMATES

15.1 DEFINITIONS OF MINERAL RESERVE

The Canadian Institute of Mining and Metallurgy and Petroleum (CIM) has defined Mineral Reserve in The CIM Definition Standards for Mineral Resources and Reserves (2014) as:

Proven Mineral Reserve: the economically mineable part of a Measured Mineral Resource. A Proven Mineral Reserve implies a high degree of confidence in the Modifying Factors.

For Saskatchewan, in regions adjacent and contiguous to an operating potash mine, Mineral Reserve categories are characterized by PotashCorp as follows:

Along with this approach, analysis of in-mine samples for potash grade has provided an observation-based understanding of the potash mineralized zone at Allan that is far superior to the level of understanding provided by any surface drilling based exploration program. An understanding of the amount of ore that can be conventionally mined from the Measured Resource category using current mining practices comes from 50 years of potash mining experience at Allan.

15.2

ALLAN POTASH RESERVE CALCULATIONS

Using the definitions outlined in Section 15.1, part of the Allan A Zone Measured Resource has been converted to Mineral Reserve. The assigned Mineral Reserve category is dependent on proximity to sampled mined entries also described in Section 15.1. An overall extraction rate

for the Allan mine has been applied to the qualifying areas outlined as Measured Resource in Figure 19. This extraction rate is significantly lower than the local extraction rate described in Section 16.1, as it takes into account areas which cannot be mined due to unfavorable geology.

The overall extraction rate at the Allan mine is 33%. It was derived by dividing the total tonnes mined to date by the tonnage equivalent of the total area of the mine workings (i.e. the perimeter around the mine workings) less future mining blocks. Since an extraction rate has been applied, Mineral Reserves are considered recoverable ore, and are reported as such.

The Mineral Reserves for Allan as of December 31, 2018 are as follows:

Allan A Zone:

Allan B Zone:


Probable Reserve		nil
Proven Reserve		nil

Total B Zone Reserve =		nil

Total for Allan (A Zone + B Zone):

Allan Mineral Reserves are plotted in Figure 20.

The average mineral grade of the Allan A Zone Mineral Reserve is 24.8% K₂0 equivalent, and was determined from 6,738 in-mine samples at Allan.

LOGO

Figure 20: Map showing Allan Mineral Reserve with mine workings to December 2018.

16.0 MINING METHOD

16.1 MINING OPERATIONS

All conventional potash mines in Saskatchewan operate at 900 m to 1200 m below surface within 9 m to 30 m of the top of the Prairie Evaporite Formation. Over the scale of any typical Saskatchewan potash mine, potash beds are tabular and regionally flat-lying, with only moderate local variations in dip. At Allan, potash ore is mined using conventional mining methods, whereby:

•

Shafts are sunk to the potash ore body;

•

Continuous mining machines cut out the ore, which is hoisted to surface through the production shaft;

•

Raw potash is processed and concentrated in a mill on surface; and

•

Concentrated finished potash products (near-pure KCl) are sold and shipped to markets in North America and offshore.

Sinking of the two original shafts (Shaft #1 and Shaft #2) from surface to the potash zone was completed in early 1968, and the first potash ore was hoisted by in April of that year. The Allan mine has run on a continuous basis since the first ore was hoisted in 1968, other than short-term shutdowns taken for inventory management purposes or occasional plant maintenance and construction work.

In recent years, the Allan mine underwent a major expansion which brought the nameplate capacity up to 4.0 million tonnes of finished potash products per year. The operational capability at the Allan facility as of December 31, 2018 is 2.6 million tonnes per year.

Virtually all Allan underground mining rooms are in one potash mineralized zone, the upper layer (or A Zone) of the Patience Lake Member of the Prairie Evaporite Formation (the host evaporite salt). In contrast, some potash mines further east in Saskatchewan mine in a different potash layer, the Esterhazy Member of the Prairie Evaporite Formation. Saskatchewan potash geology is illustrated in Figure 21. At Allan, mine elevations range from approximately 980 m to 1120 m, averaging approximately 1010 m. These depths to A Zone potash mineralization are anticipated over most of the Allan lease area. Mine workings are protected from aquifers in overlying formations by approximately 14 m of overlying salt and potash beds, along with salt plugged porosity in the Dawson Bay Formation, a carbonate layer lying immediately above potash hosting salt beds.

The Allan mine is a conventional underground mining operation whereby continuous mining machines are used to excavate the potash ore by the stress-relief mining method. Continuous conveyor belts transport ore from the mining face to the bottom of the production shaft. Mining methods employed in Saskatchewan are discussed in Jones and Prugger (1982) and in Gebhardt (1993). The highest mineral grade section of the Allan potash seam is approximately 3.35 m (11’) thick, with gradations to lower grade salts immediately above and below the

mining horizon. The actual mining thickness at Allan is dictated by the height of continuous boring machines used to cut the ore. Seven older borers are designed to cut at a thickness of 3.35 m (11’) and four new borers are designed to cut 3.65 m (12’).

As discussed in Section 10.0, Allan cuts to a marker (clay) seam that is slightly above the high-grade mineralized zone to establish a safe and stable mine roof. The top marker seam is slightly overcut by 10 to 20 cm. Clay seams are often planes of weakness, and if they are undercut, material immediately below the clay seam becomes a hazard as it may separate and fall. Since the hazard must be remediated prior to proceeding, thus slowing production, the moderately diluted mineral grade that results from the overcutting is preferable from a safety point of view.

LOGO

Figure 21: Typical stratigraphic section correlated with composite photos covering both the Patience Lake Member and the Esterhazy Member potash production intervals. At Allan, mining takes place in the Upper Patience Lake Member (A Zone).

Conservative local extraction rates (never exceeding 45% in any mining block) are employed at all Saskatchewan mines, including Allan, in order to minimize potential detrimental effects of mining on overlying strata; this is common practice in flat-lying, tabular ore bodies overlain by water-bearing layers.

From the shaft-bottom, potash ore is hoisted approximately 1000 m from the potash level through the vertical shafts to a surface mill. In addition to hoisting potash ore to surface, the production shaft also provides fresh air ventilation to the mine and serves as a secondary egress. The Service Shaft is used for service access, and exhaust ventilation from the mine.

Actual potash production tonnages for the Allan mine, along with concentration ratios (tonnes mined / tonnes product), are plotted for the past decade in Figure 22.

LOGO

Figure 22: Actual mining, production and concentration ratio for the Allan mine over the past 10 years.

16.2

RISKS TO POTASH MINING OPERATIONS, WITH EMPHASIS ON WATER INFLOWS

When sinking of the Allan Shaft #1 was near the bottom of the Blairmore Formation at approximately 570 m depth, a breach developed in the ice wall and the shaft was flooded (Prugger and Prugger, 1991). A concrete plug was installed in the shaft bottom (underwater), and two additional freeze holes were drilled to seal the area of the breach and allow recovery of the shaft. The shaft was completed in 1968. In the mid-1990s the concrete shaft liner in an area of the Allan production shaft had deteriorated to the point where it required replacement. The concrete in the 671 m to 750m (2203’ to 2463’) level was replaced with iron tubbing segments in 1999, successfully repairing the shaft through this area. Further shaft repairs were made just below this zone in 2017. At present, inflow into the existing shafts is estimated at 25 litres / minute (6 US gallons / minute) for the Service Shaft and 145 litres / minute (38 US gallons / minute) for the Production Shaft.

In 1996, a connate potash seam brine was encountered in an area that had recently been mined; this was the first inflow into underground workings at Allan. This inflow, initially estimated at approximately 20 litres / minute, did not require active intervention, and the flow eventually diminished to virtually nil. There have been a few similar occurrences of brine in underground workings at Allan; all of these have been minor occurrences that were addressed without any impact to mine operations. There has not been any significant water ingress into underground workings at Allan since production began in 1968. At present, brine ingress into underground mine workings at Allan is effectively nil (not measurable).

17.0

RECOVERY METHODS

At Allan, potash ore has been mined and concentrated to produce saleable quantities of high grade finished potash products since 1968. Products include granular, standard, and industrial grade potash used for agricultural applications and industrial purposes.

Both flotation methods and crystallization methods are used to concentrate potash ore into finished potash products at the Allan mill. A simplified process flow diagram is shown in Figure 23. Raw potash ore is processed on surface, and concentrated finished potash products (near-pure KCl) are sold and shipped to markets in North America and offshore.

LOGO

Figure

23: Simplified flow diagram for potash flotation and crystallization milling methods used at Allan.

Over the past three years, production of finished potash products at Allan was:

2016: 2.380 million tonnes finished potash products at 61.16% K₂O (average grade)

2017: 1.832 million tonnes finished potash products at 61.39% K₂O (average grade)

2018: 2.410 million tonnes finished potash products at 61.17% K₂O (average grade)

Over the past decade actual mill recovery rates have been between 81.5% and 87.0%, averaging 84.6% (see Figure 24). Given the long-term experience with potash geology and actual mill recovery at Allan, no fundamental potash milling problems are anticipated in the foreseeable future.

Quality control testing and monitoring geared towards fine-tuning and optimizing potash milling and concentrating processes are conducted on a continual basis at all Nutrien minesites and at Nutrien research facilities. At Allan, this is no exception; test work to optimize circuit performance and ensure product quality is carried out on an ongoing basis.

LOGO

Figure 24: Allan mill recovery rate over the past 10 years.

18.0

PROJECT INFRASTRUCTURE

Infrastructure is in place to meet current and projected requirements for transportation, energy (electricity and natural gas), water and process materials at Allan. See also Section 5.0.

The Allan mine is served by a number of villages within 50 kilometres of the minesite. The nearest city is Saskatoon (approximately 45 km distant).

The Allan surface facilities are accessed by existing paved roads and highways that are part of the Saskatchewan Provincial Highway System. All potash product is shipped by rail over existing track.

At present, high voltage power capacity at the Allan is 32 MVA. The ten-year projection of power utilization indicates that the utility can meet all foreseeable future demand.

The Allan operation requires a sustained fresh water supply for the milling process which is provided from a local reservoir called the Bradwell Reservoir operated by SaskWater (approximately 6 km distant). This water supply provides a sustainable source of process water for Allan milling operations without having any impact on other users of water in the area.

19.0

MARKET STUDIES AND CONTRACTS

Potash from Company mines (including Allan) has been sold on a continuous basis since mining began in 1968. At present, Nutrien products are sold in more than 50 countries, to three types of end-use:

Fertilizer, focused on balanced plant nutrition to boost crop yields in order to meet the world’s ever-increasing appetite for food (nitrogen, phosphate, potash)

Feed Supplements, focused on animal nutrition (mainly phosphate)

Industrial, focused on products for high-grade food, technical and other applications (nitrogen, phosphate, as phosphoric acid, potash)

The most significant exporters are producers with mines in the large producing regions of Canada, the Middle East and the former Soviet Union, which all have relatively small domestic requirements.

¹	Company potash sales data for years prior to 2018 includes only PotashCorp sales.

potash application are expected to continue the growth trends in key importing countries. See Figure 27 for world potash production and demand in 2017.

LOGO

Figure 25: Historical Company potash sales 2009 to 2018 in million tonnes / year².

LOGO

Figure 26: Historical Company potash net sales 2009 to 2018 in million USD $ / year².

²	Company potash sales data for years prior to 2018 includes only PotashCorp sales.

LOGO

Figure 27: World potash production and demand for 2017.

Table 4: Primary Potash Market Profile


Country/Region	Growth Rate*		Key Consuming Crops
China		8.1%	Vegetables, rice, fruits, corn
India		4.9%	Rice, wheat, vegetables, sugar crops
Other Asia		4.1%	Oil palm, rice, sugar crops, fruits, vegetables
Latin America		3.4%	Soybeans, sugar crops, corn
North America		2.1%	Corn, soybeans
*5-year CAGR for consumption (2013-2018E)

of 2.5 to 3.0 percent. This growth is driven by strong potash consumption trends in all major potash markets.

LOGO

Figure 28: World potash shipments and consumption, 2013-2018E.

dealers, cooperatives, distributors and other fertilizer producers who have both distribution and application capabilities.

Plans and arrangements for potash mining, mineral processing, product transportation, and product sales are established by Nutrien and are within industry norms.

20.0

ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT

The tailings management strategy at all Nutrien potash mines in Saskatchewan, including Allan, is one of sequestering solid mine tailings in an engineered and provincially licenced Tailings Management Area (TMA) near the surface plant site. The Allan TMA currently covers an area of approximately 600 hectares (1,483 acres) of land owned by the Company. Solid potash mine tailings typically consist of 85% to 95% rock salt (NaCl) and 5% to 15% insolubles (carbonate mud = CaCO₃, anhydrite mud = CaSO₄, and clays like chlorite, illite, and so on). An engineered slurry-wall (in some portions, a compacted earth trench barrier) has been constructed where required around approximately half of the Allan TMA. In future years this wall can be expanded if required for operational needs. The slurry-wall provides secondary containment for any saline mine waters, minimizing brine impacts from the TMA to surrounding surface water bodies and near-surface aquifers. Areas surrounding the TMA are closely monitored: this includes everything from daily visual perimeter inspections to annual investigations and inspections of surrounding groundwater and aquifers.

Allan currently operates two brine disposal wells near the surface plant of the Allan mine (marked in Figure 12) where clear salt brine (i.e. no silt, clay slimes, or other waste) is borehole-injected into the Winnipeg / Deadwood Formations, deep subsurface aquifers approximately 1500 m to 1700 m below the surface (marked in Figure 13). The groundwater in these extensive deep aquifers is naturally saline.

The Allan operation requires a sustained fresh water supply for the milling process which is provided by a waterline from the Bradwell Reservoir (approximately 6 km distant). This water supply is provincially licensed and provides a sustainable source of process water for Allan milling operations without having any impact on other users of water in the area.

In Saskatchewan, all potash tailings management activities are carried out under an “Approval to Operate” granted by the Saskatchewan Ministry of Environment (MOE), the provincial regulator. The Allan mine is in compliance with all regulations stipulated by the Environmental Protection Branch of MOE. The current Allan Approval to Operate has been granted to July 1, 2028, the renewal date.

In terms of long-term decommissioning, environmental regulations of the Province of Saskatchewan require that all operating potash mines in Saskatchewan create a long-term decommissioning and reclamation plan that will ensure all surface facilities are removed, and the site is left in a chemically and physically stable condition once mine operations are complete. The Company has conducted numerous studies of this topic, and the most recent decommissioning and reclamation plan for Allan was approved by MOE technical staff in October 2016. Because the current expected mine life for Allan is many decades into the future, it is not meaningful to come up with detailed engineering designs for decommissioning at present. Instead, decommissioning plans are reviewed every five years, and updated to accommodate new ideas, technological change, incorporation of new data, and adjustments of production forecasts and cost estimates. Any updated decommissioning and reclamation reports generated by this process are submitted to provincial regulatory agencies. For Allan, a revised decommissioning and reclamation plan is required in July 2021.

21.0

CAPITAL AND OPERATING COSTS

The Allan mine has been in operation since 1968; in the years immediately preceding this, major capital investment was made to bring this mine into production. Since then, capital expenditures were made on a regular and ongoing basis to sustain production, and to expand production from time to time.

A major refurbishment and expansion of the Allan mine was completed in 2013, increasing nameplate capacity to 4.0 million tonnes of finished potash products per year. This work involved enhancement of hoists and shaft conveyances, major expansions of both mine and mill, improvements to loadout facilities, and some infrastructure improvements. All construction was carried out without significant disruption to existing potash production from the site.

22.0

ECONOMIC ANALYSIS

22.1

FUNDAMENTALS

Over the past three years (2016, 2017, and 2018) the Allan mine produced 6.621 million tonnes of finished potash products. In the past three years (2016, 2017, and 2018), the Allan mine accounted for 18% of total potash production at the Company over this time period. Allan is currently making a positive contribution to the Company’s potash segment.

Given the Company’s previous history (including 50 years of mining at the Allan operation), recent market conditions, and extensive reserve base, the economic analysis for Allan has met the Company’s internal hurdle rates.

³	Company potash sales data for years prior to 2018 includes only PotashCorp sales.

LOGO

Figure 29: Historic annual average realized potash price in USD / tonne⁴.

22.2

TAXES

Royalties are paid to the Province of Saskatchewan, which holds approximately half of the mineral rights in the Allan Crown Subsurface Mineral Lease. Royalties from non-Crown lands are paid to various freeholders of mineral rights in Saskatchewan. The crown royalty rate is 3% and is governed by The Subsurface Mineral Royalty Regulations, 2017. The actual amount paid is dependent on selling price and production tonnes.

Municipal taxes are paid based on site property values.

In addition to this, Nutrien pays federal and provincial income taxes based on corporate profits from all its operations in Canada.

⁴	Company annual average realized potash price for years prior to 2018 includes only PotashCorp sales.

23.0

ADJACENT PROPERTIES

The Company’s Allan Lease KL 112R A is adjacent to the following potash dispositions (Figure 30).

Producing Subsurface Mineral Leases:

•

Company Cory Potash (KL 103)

•

Company Lanigan Potash (KLSA 001)

•

Company Patience Lake Potash (KL 109A)

•

Company Vanscoy Potash (KL 114 & KL 204)

•

Mosaic Potash Colonsay ULC (KL 108)

Non-producing Potash Exploration Permits and Subsurface Mineral Leases:

•

BHP Billiton Canada Inc.

•

Canada Potash Corp.

•

Canada Wanbei Hengjai Potash Co. Ltd.

•

M & J Potash Corporation

•

Sanya Resource Corporation

For up-to-date information on Crown Potash Leases and Exploration Permits, see the Saskatchewan Mining and Petroleum GeoAtlas which is available online at the Government of Saskatchewan website.

Mosaic Potash Colonsay (Mosaic) operates a mine with extensive underground workings within Crown Subsurface Mineral Lease KL 108, which are immediately adjacent to Allan Lease KL 112R A. The Company and Mosaic each have a safety buffer between the two companies’ lease areas, where it is agreed that no mining will occur. This buffer ensures that mine workings in one company’s lease area will not impact workings of the other company.

LOGO

Figure 30: Potash properties adjacent to Allan Potash.

24.0

OTHER RELEVANT DATA AND INFORMATION

Not applicable.

25.0

INTERPRETATION AND CONCLUSIONS

PotashCorp has a long history of successful potash mining at Allan, where potash has been produced for the past 50 years. The authors believe that the experience gained mining and milling potash for this length of time has produced a reliable body of information about potash mineralization, mining and milling at Allan.

For Allan, mine life can be estimated by dividing the total Mineral Reserve (Proven + Probable) of 349 million tonnes by the average annual mining rate (million tonnes of ore hoisted per year). For Allan, the mining rate is defined as equal to the actual three-year running average (consecutive, most recent years). The average mining rate at Allan over 2016, 2017 and 2018 was 6.198 million tonnes of potash ore mined and hoisted per year.

If this mining rate is sustained and if Mineral Reserves remain unchanged, then the Allan mine life would be 56 years.

This estimate of mine life is likely to change as mining advances further into new mining blocks, and / or if mining rates change.

26.0

RECOMMENDATIONS

Not applicable for a potash mine that has been in operation since 1968.

27.0

REFERENCES

Fuzesy, Anne (1982). Potash in Saskatchewan (44p). Saskatchewan Industry and Resources Report 181.

Gebhardt, E. (1993). Mine planning and design integration, CIM Bulletin, May 1993, pp. 41 – 49.

Government of Saskatchewan (2018). Saskatchewan Mining and Petroleum GeoAtlas.

https://gisappl.saskatchewan.ca/Html5Ext/index.html?viewer=GeoAtlas. Accessed Jan 2019.

Government of Saskatchewan. The Corporation Capital Tax Act of Saskatchewan. Available online at http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/c38-1.pdf.

Government of Saskatchewan. The Mineral Taxation Act, 1983. Available online at http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/M17-1.pdf.

Government of Saskatchewan. The Subsurface Mineral Royalty Regulations, 2017. Available online at

http://publications.gov.sk.ca/details.cfm?p=88223&cl=8.

Government of Saskatchewan. The Subsurface Mineral Tenure Regulations, 2015. Available online at

http://www.publications.gov.sk.ca/details.cfm?p=72797.

Jones, P. R. and F. F. Prugger (1982). Underground mining in Saskatchewan potash. Mining Engineering, 34, pp. 1677 – 1683.

Nutrien Pilot Plant (2018). Personal communication on density of insoluble minerals in different ore zones.

Robertson, David S. and Associates (1978). Summary Report on Evaluation of Potash Assets for Potash Corporation of Saskatchewan. Unpublished consultant’s report to Potash Corporation of Saskatchewan Inc.

Webmineral Mineralogy Database (2014). http://webmineral.com. Accessed Jan 2018.

Exhibit 99.4

NUTRIEN LTD.

LANIGAN POTASH

NATIONAL INSTRUMENT 43-101 TECHNICAL REPORT ON

LANIGAN POTASH DEPOSIT (KLSA 001 C),

SASKATCHEWAN, CANADA

FEBRUARY 20, 2019

LOGO

NUTRIEN LTD.

GEOSERVICES & LAND – ENGINEERING, TECHNOLOGY & CAPITAL

500 – 122 FIRST AVENUE SOUTH

SASKATOON, SASKATCHEWAN, CANADA

S7K 7G3

QUALIFIED PERSON: CRAIG FUNK, P. ENG., P. GEO.

DATE AND SIGNATURE PAGE


						/s/ “Craig Funk”
Signature						Craig Funk, P. Eng., P. Geo.
						Director, GeoServices & Land
						Nutrien Ltd.

Date						February 20, 2019

AUTHOR PAGE

Craig Funk, B. Sc., M.Sc., P. Eng., P. Geo. (APEGS Member # 16034)

•

Director, GeoServices & Land—Engineering, Technology & Capital

•

B. Sc. (Geological Engineering – Geophysics), University of Saskatchewan, Saskatoon, Saskatchewan, Canada, 1989

•

M. Sc. (Geophysics), University of Saskatchewan, Saskatoon, Saskatchewan, Canada, 1992

•

with Nutrien or its subsidiaries since 2008

is the qualified person who supervised the preparation of all information presented in this report and who verified the data disclosed herein.

The team of persons who conducted the majority of the work presented in this report consists of:

Jodi Derkach, B. Sc., Cert. GIS, P. Geo. (APEGS Member # 14897)

•

Manager, Land & Resources—Engineering, Technology & Capital

•

B. Sc. (Geology), University of Saskatchewan, Saskatoon, Saskatchewan, Canada, 2007

•

Geographic Information Science for Resource Management Certificate, Saskatchewan Polytechnic, Prince Albert, Saskatchewan, Canada, 2010

•

with Nutrien or its subsidiaries since 2010

Lisa MacKenzie, Cert. GIS

•

Land & GIS Analyst—Engineering, Technology & Capital

•

Geographic Information Science for Resource Management Certificate, Saskatchewan Polytechnic, Prince Albert, Saskatchewan, Canada, 2012

•

with Nutrien or its subsidiaries since 2012

TABLE OF CONTENTS


DATE AND SIGNATURE PAGE		2

AUTHOR PAGE		3

TABLE OF CONTENTS		4

LIST OF FIGURES		6

LIST OF TABLES		9

1.0	SUMMARY	10

2.0	INTRODUCTION	15

3.0	RELIANCE ON OTHER EXPERTS	15

4.0	PROPERTY DESCRIPTION AND LOCATION	16

4.1	GENERAL	16

4.2	MINERAL RIGHTS	19

5.0	ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY	21

6.0	HISTORY	23

7.0	GEOLOGICAL SETTING AND MINERALIZATION	23

8.0	DEPOSIT TYPE	28

9.0	EXPLORATION	29

10.0	DRILLING	35

11.0	SAMPLING METHOD AND APPROACH	39

11.1	BASIC APPROACH	39

11.2	MEAN POTASH MINERAL GRADE FROM IN-MINE SAMPLES	42

11.3	POTASH ORE DENSITY FROM IN-MINE MINERAL GRADE MEASUREMENTS	44

12.0	DATA VERIFICATION	47

12.1	ASSAY DATA	47


12.2	EXPLORATION DATA	48

13.0	MINERAL PROCESSING AND METALLURGICAL TESTING	49

14.0	MINERAL RESOURCE ESTIMATES	49

14.1	DEFINITIONS OF MINERAL RESOURCE	49

14.2	LANIGAN POTASH RESOURCE CALCULATIONS	50

15.0	MINERAL RESERVE ESTIMATES	54

15.1	DEFINITIONS OF MINERAL RESERVE	54

15.2	LANIGAN POTASH RESERVE CALCULATIONS	54

16.0	MINING METHOD	57

16.1	MINING OPERATIONS	57

16.2	RISKS TO POTASH MINING OPERATIONS, WITH EMPHASIS ON WATER INFLOWS	61

17.0	RECOVERY METHODS	61

18.0	PROJECT INFRASTRUCTURE	63

19.0	MARKET STUDIES AND CONTRACTS	64

20.0	ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT	69

21.0	CAPITAL AND OPERATING COSTS	71

22.1	FUNDAMENTALS	71

22.2	TAXES	72

23.0	ADJACENT PROPERTIES	73

24.0	OTHER RELEVANT DATA AND INFORMATION	75

25.0	INTERPRETATION AND CONCLUSIONS	75

26.0	RECOMMENDATIONS	75

27.0	REFERENCES	76

LIST OF FIGURES

Unless otherwise noted, figures for which a source and / or date are not provided are current as of the effective date of this report and were prepared by the Company.


Figure 1: Aerial photo of Lanigan surface operations, fall, 2012.		11

Figure 2: Actual finished potash products production from the Lanigan mine over the past 10 years (in million tonnes per year).		13

Figure 3: Map showing location of Nutrien Operations, including Lanigan.		16

Figure 4: Map showing Lanigan Potash relative to Saskatchewan potash mineralization (pink). Also shown are Company (green) and other (purple) Crown Subsurface Mineral Leases (Saskatchewan Mining and Petroleum GeoAtlas).		18

Figure 5: Map showing Lanigan Crown Lease KLSA 001 C (blue), Unitization Area #1 (green), and Unitization Area #2 (orange).		20

Figure 6: Map showing infrastructure (towns, rivers, roads, and railways) near Lanigan Potash. Lanigan shaft locations are shown by red markers.		22

Figure 7: Thickness of the Prairie Evaporite Formation and area of potash distribution within these salts (from Fuzesy, 1982).		24

Figure 8: Diagrammatic vertical section showing basic layered-Earth stratigraphy in a typical Saskatchewan potash region (from Fuzesy, 1982).		25

Figure 9: Diagrammatic vertical section showing basic stratigraphy of the Prairie Evaporite Formation in the Saskatoon area (from Fuzesy, 1982).		27

Figure 10: Schematic cross-section across southern Saskatchewan of the Prairie Evaporite Formation showing relative position of potash members. At Lanigan, potash is mined from the Patience Lake Member, labeled “PLM” (from Fuzesy, 1982).		28

Figure 11: Potash exploration at Lanigan (2D & 3D surface seismic and potash exploration drillholes).		30

Figure 12: Air photo showing Lanigan Potash surface operations and Tailings Management Area.		31



Figure 13: Seismic section from the Lanigan 2008 3D seismic data volume showing relative rock velocities. Sea level (SL) is marked in metres and major geological units are labeled.		33

Figure 14: Detail of seismic section from the Lanigan 3D seismic data volume. Actual mine room reflection is marked in yellow. Ground surface is at approximately +500 m above Sea Level.		34

Figure 15: Typical stratigraphic section correlated with composite photos covering both the A Zone and B Zone production intervals.		36

Figure 16: Potash assay plot for drillhole PCS Lanigan 04-28-032-23 W2 indicating the best 3.66 m (12’) mining interval for A Zone and the best 4.94 m (~16’) mining interval for B Zone.		40

Figure 17: Histogram of potash ore grade from 1,485 A Zone in-mine grade samples at Lanigan (data from 2007 through to the end of December 2017).		43

Figure 18: Histogram of potash ore grade from 20,230 B Zone in-mine grade samples at Lanigan (data from 1999 through to end of December 2017).		44

Figure 19: Map showing Lanigan A Zone Mineral Resource with mine workings to December 2018.		53

Figure 20: Map showing Lanigan A Zone Mineral Reserve with mine workings to December 2018.		56

Figure 21: Typical stratigraphic section correlated with composite photos covering both the Patience Lake Member and the Esterhazy Member potash production intervals. At Lanigan, mining takes place in both the Upper and Lower Patience Lake Member (A Zone and B Zone).		59

Figure 22: Actual mining, production and concentration ratio for the Lanigan mine over the past 10 years.		60

Figure 23: Simplified flow diagram for potash floatation and crystallization milling methods used at Lanigan.		62

Figure 24: Lanigan mill recovery rate over the past 10 years.		63

Figure 25: Historical Company potash sales 2009 to 2018 in million tonnes / year (from Nutrien Financial Reporting).		66

Figure 26: Historical Company potash net sales 2009 to 2018 in million USD $ / year (from Nutrien Financial Reporting)		66


Figure 27: World potash production and demand for 2017.		67

Figure 28: World potash shipments and consumption, 2013-2018E.		68

Figure 29: Historic annual average realized potash price in USD / tonne (from Nutrien Financial Reporting).		72

Figure 30: Potash properties adjacent to Lanigan Potash.		74

LIST OF TABLES


Table 1: Mineral Resources and Reserves for Lanigan Potash, as of December 31, 2018.		14

Table 2: Assay results for all potash test holes within Lanigan Lease KLSA 001 C		38

Table 3: Values for potash assay plot in Figure 16.		41

Table 4: Primary Potash Market Profile		67

EFFECTIVE DATE OF REPORT

The effective date of this report is December 31, 2018, other than where otherwise noted.

1.0

SUMMARY

Nutrien is a corporation organized under the Canada Business Corporations Act, the common shares of which listed and publicly traded on the Toronto and New York stock exchanges (symbol NTR).

The Company owns and operates a potash mine at Lanigan, Saskatchewan, Canada (Lanigan Potash, Lanigan mine, or Lanigan). An aerial view of the Lanigan surface operations is shown in Figure 1. The Lanigan Crown Subsurface Mineral Lease is numbered KLSA 001 C. Production of potash from the Lanigan mine began in 1968.

LOGO

Figure 1: Aerial photo of Lanigan surface operations, fall, 2012.

As of December 31, 2018, annual nameplate capacity for Lanigan was 3.8 million tonnes and annual operational capability is 2.0 million tonnes of finished potash products (concentrated KCl). Estimates of nameplate capacity are based on capacity as per design specifications or Canpotex entitlements once these have been determined. Operational capability is the estimated annual achievable production level at current staffing and operational readiness (estimated at beginning of year), not including any inventory-related shutdowns and unplanned downtime.

Mill rehabilitation, mine expansion and hoist improvement projects were completed at Lanigan between 2005 and 2010. The expansion construction was carried out without significant disruption to existing potash production from the site.

While the term potash refers to a wide variety of potassium bearing minerals, in the Lanigan region of Saskatchewan, the predominant potash mineralization is sylvinite, which is comprised mainly of the minerals sylvite (KCl / potassium-salt) and halite (NaCl / rock salt), with minor amounts water insolubles. Carnallite (KMgCl₃ · 6H₂O) usually occurs in minor amounts at Lanigan; areas of the B Zone where carnallite layering is sporadically present are avoided through selective mining (i.e. by identifying and avoiding cutting through these layers). Potash fertilizer is concentrated, nearly pure KCl (i.e. greater than 95% pure KCl), but ore grade is traditionally reported on a % K₂O equivalent basis. The “% K₂O equivalent” gives a standard measurement of the nutrient value of different potassium-bearing rocks and minerals. To convert from % K₂O equivalent tonnes to actual KCl tonnes, multiply by 1.58.

Virtually all Lanigan underground mining rooms are in one of two potash mineralized zones within the Patience Lake Member of the Prairie Evaporite Formation (the host evaporite salt). The potash mineralized zones are referred to as A Zone (the upper seam) and B Zone (the lower seam). The Lanigan mine is a conventional underground mining operation whereby continuous mining machines are used to excavate potash ore by the stress-relief mining method in one ore zone (the A Zone) and the long-room and pillar mining method in another ore zone (the B Zone). Currently, in any specific mining block, only one zone is mined (i.e. bi-level mining is not in practice). Continuous conveyor belts transport ore from the mining face to the bottom of the production shaft. In addition to hoisting potash ore to surface, the production shaft provides fresh air ventilation to the mine and serves as secondary egress. The Service Shaft is used for service access, and exhausting ventilation from the mine. Raw potash ore is processed and concentrated on surface, and concentrated finished potash products (near-pure KCl) are sold and shipped to markets in North America and offshore.

At Lanigan, mine elevations range from approximately 940 m to 1030 m, averaging approximately 990 m. These depths to potash mineralization are anticipated over most of the Lanigan lease area. Mine workings are protected from aquifers in overlying formations by salt and potash beds which overlie the mineralized zone. Conservative local extraction rates (never exceeding 45% in any mining block) are employed at Lanigan to minimize potential detrimental effects of mining on overlying strata; this is common practice in flat-lying, tabular ore bodies overlain by water-bearing layers.

Part of the normal surface infrastructure associated with operating the potash mine in Saskatchewan includes waste disposal on the land and disposal of salt brine into deep subsurface aquifers. The Company stows salt tailings within an engineered and licensed Tailings Management Area (TMA) and operates three brine disposal wells near the surface plant of the Lanigan mine.

Over the 50-year mine life, 207.762 million tonnes of potash ore have been mined and hoisted at Lanigan to produce 60.276 million tonnes of finished potash products (from startup in 1968 to December 31, 2018). The life-of-mine average concentration ratio (raw ore / finished potash products) is 3.45 and the overall extraction rate over this time period is 26%. Actual production of finished potash products at Lanigan for the last 10 years is shown in Figure 2.

LOGO

Figure 2: Actual finished potash products production from the Lanigan mine over the past 10 years (in million tonnes per year).

Over the past three years (2016, 2017, 2018), actual potash production at Lanigan has totaled:

•

20.384 million tonnes of ore mined and hoisted (6.795 million tonnes per year, on average)

•

5.809 million tonnes of concentrated finished potash products produced (1.936 million tonnes per year, on average)

•

Average mill feed ore grade was 20.9% K₂0 equivalent

•

Average concentration ratio (ore mined / potash produced) was 3.51

The Canadian Institute of Mining and Metallurgy and Petroleum (CIM) has defined Mineral Resources and Reserves in The CIM Definition Standards for Mineral Resources and Reserves (2014). Based on these guidelines, all mineral rights owned or leased by the Company at Lanigan Potash can be assigned to Mineral Resource categories (Inferred, Indicated, and Measured) and Mineral Reserve categories (Probable and Proven). Mineral Resources (reported as in-place tonnes) and Mineral Reserves (reported as recoverable ore tonnes) for Lanigan as of December 31, 2018 are outlined in Table 1. Mineral Resources reported are exclusive of Mineral Reserves.

Table 1: Mineral Resources and Reserves for Lanigan Potash, as of December 31, 2018.


Proven Mineral Reserve - A Zone (millions of tonnes recoverable ore)	19
Proven Mineral Reserve - B Zone (millions of tonnes recoverable ore)	92
Probable Mineral Reserve - A Zone (millions of tonnes recoverable ore)	142
Probable Mineral Reserve - B Zone (millions of tonnes recoverable ore)	287
Total Mineral Reserve (millions of tonnes recoverable ore)	540

Measured Mineral Resource - A Zone (millions of tonnes in-place)	2,142
Measured Mineral Resource - B Zone (millions of tonnes in-place)	2,578
Indicated Mineral Resource - A Zone (millions of tonnes in-place)	1,325
Indicated Mineral Resource - B Zone (millions of tonnes in-place)	1,775
Inferred Mineral Resource - A Zone (millions of tonnes in-place)	671
Inferred Mineral Resource - B Zone (millions of tonnes in-place)	899
Total Mineral Resource (millions of tonnes in-place)	9,390

Average % K₂O Grade - A Zone (from Lanigan in-mine samples)	23.5	%
Average % K₂O grade - B Zone (from Lanigan in-mine samples)	20.3	%
Years of Remaining Mine Life (A Zone)	24
Years of Remaining Mine Life (B Zone)	56
Total Years of Remaining Mine Life (A Zone + B Zone)	80

The average mineral grade of the Lanigan A Zone Mineral Resource and Mineral Reserve is 23.5% K₂0 equivalent, and was determined from 1,485 in-mine samples at Lanigan to the end of December 2017 (discussed further in Section 11.2). The average mineral grade of the Lanigan B Zone Mineral Resource and Mineral Reserve is 20.3% K₂0 equivalent, and was determined from 20,230 in-mine samples at Lanigan to the end of December 2017 (discussed further in Section 11.2).

Potash production in any given year at the Lanigan mine is a function of many variables, so actual production in any given year can vary dramatically from tonnages produced in previous years. The Mineral Reserve tonnage and historic average production are used to estimate remaining mine life. If the average mining rate seen over the past three years (6.79 million tonnes of potash ore mined and hoisted per year) is sustained, and if Mineral Reserves remain unchanged, then Lanigan A Zone mine life is 24 years from December 31, 2018, and Lanigan B Zone mine life is 56 years from December 31, 2018. Total years of remaining mine life at Lanigan is 80 years from December 31, 2018.

2.0

INTRODUCTION

The purpose of this document is to give a formal reporting of potash Mineral Resource and Reserve for Lanigan Potash, and to provide a description of the method used to compute Mineral Resource and Reserve tonnages. Sources of geological and geotechnical information analysed from this study include:

•

Publicly available geological maps, reports, and publications (listed in Section 27.0)

•

Internal reports on historic exploration drillholes

•

Hydrogeological analysis conducted in historic exploration drillholes

•

Geological studies conducted at the Lanigan mine over the past 50 years

•

In-mine geophysical studies conducted at the Lanigan mine over the past 50 years

•

Geotechnical studies conducted for the Lanigan mine over the past 50 years

•

2D surface seismic exploration data (approximately 621 linear km collected to date)

•

3D surface seismic exploration data (an area covering approximately 520 km² to date)

All data and reports are archived at Nutrien’s corporate office in Saskatoon and at the Lanigan mine. In addition, drillhole data (well-log data, drilling reports, drill-stem test results, etc.) are archived with the Saskatchewan Ministry of the Economy, Integrated Resource Information System (IRIS), and surface seismic data (shot records and stack) are archived through an offsite commercial data storage service.

All geological and geophysical data and information presented in this report were personally reviewed and inspected by Nutrien technical staff under the supervision of Craig Funk (P. Eng., P. Geo., Director, Earth Science). All historic mining and mineral rights data and information presented in this report were personally reviewed and inspected by Lisa MacKenzie (GIS Cert.) and Jodi Derkach (GIS Cert., P. Geo.). Jodi Derkach (GIS Cert., P. Geo.), Tanner Soroka (P. Geo.), and James Isbister (G.I.T) conducted or were involved with geological studies and investigations at Lanigan, and Randy Brehm (G.I.T.), and Matthew van den Berghe (G.I.T) conducted or were involved with geophysical studies and investigations at Lanigan. Each of these staff visits the Lanigan mine numerous times every year. Additionally, geological and geophysical data and information pertaining to the Lanigan mine are regularly presented to and discussed with technical and engineering staff from the Lanigan mine.

3.0

RELIANCE ON OTHER EXPERTS

Responsibility for the accuracy of the technical data presented in this report is assumed by the authors. Outside experts were not used in the preparation of this report.

4.0

PROPERTY DESCRIPTION AND LOCATION

4.1

GENERAL

The Lanigan mine is located in central Saskatchewan, approximately 100 kilometers east of the city of Saskatoon, Saskatchewan. The general location is shown on the map in Figure 3.

LOGO

Figure 3: Map showing location of Nutrien Operations, including Lanigan.

The Legal Description (Saskatchewan Township / Range) of the Lanigan surface operation is Section 28 Township 33 Range 23 West of 2^nd Meridian. More precisely, the Lanigan Shaft #2 collar is located at:


— Latitude:		51 degrees 51 minutes 20.48 seconds North
— Longitude:		105 degrees 12 minutes 34.79 seconds West
— Elevation:		535.34 metres above mean Sea Level (SL)

— Easting:		485,560.306m
— Northing:		5,745,008.726m
— Projection:		UTM
— Datum:		NAD83
— Zone:		13

The Company owns approximately 3,700 hectares (9,140 acres) of surface rights required for current Lanigan mine operations, including all areas covered by the existing surface plant and tailings management area, and all surface lands required for anticipated future Lanigan mine and expanded milling operations.

All permits and approvals required for the operation of a potash mine in Saskatchewan are in place at Lanigan.

Figure 4 is a more detailed map showing the location of Lanigan relative to the potash deposits in Saskatchewan.

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Figure 4: Map showing Lanigan Potash relative to Saskatchewan potash mineralization (pink). Also shown are Company (green) and other (purple) Crown Subsurface Mineral Leases (Saskatchewan Mining and Petroleum GeoAtlas).

4.2

MINERAL RIGHTS

Mineral rights at Lanigan are mined pursuant to mining leases with the Province of Saskatchewan, Canada (the Crown), and with non-Crown (Freehold) mineral rights owners. Crown mineral rights are governed by The Subsurface Mineral Tenure Regulations, 2015, and Crown Leases are approved and issued by the Ministry of the Economy.

The original Lanigan Crown Subsurface Mineral Lease, numbered KL 100, was entered into in March 1964. A minor amendment to this Lease in September 1989 resulted in KL 100R. In November 2009, a large area of land was added to the Lease resulting in KLSA 001. Shortly after that, in June 2011, a minor amendment to the Lease resulted in KLSA 001A. KLSA 001B was issued in September 2014 when portions of the adjacent Exploration Permits, granted in September 2011, were added to the Lease. Finally, in November 2015, a minor change to the lease resulted in KLSA 001 C.

KLSA 001 C covers an area of approximately 56,328 hectares (139,190 acres), as shown in Figure 5. At Lanigan, the Company has leased potash mineral rights for 38,188 hectares (94,365 acres) of Crown Land and owns or has leased approximately 17,913 hectares (44,265 acres) of Freehold Land within the lease boundary. The Lanigan Crown Lease term is for a period of 21 years from March 2006, with renewals (at the Company’s option) for 21-year periods. Freehold Lands also remain under lease providing, generally, that production is continuing and that there is a continuation of the Crown Lease.

Within the Lanigan Crown Lease area, 55,950 hectares (138,256 acres) are mined pursuant to Unitization Agreements with mineral rights holders (Crown and Freehold) within two Unitized Areas shown in Figure 5. Lanigan Unit Area #1 includes 19,990 hectares (49,395 acres), while Lanigan Unit Area #2 includes 35,961 hectares (88,861 acres).

When underground workings of a potash mine are designed, there are inevitably regions that are mined with higher mining extraction (e.g. production panels) and other regions where mining extraction is lower (e.g. conveyor-belt development rooms). To treat mineral rights holders in both low extraction and high extraction areas fairly, and to promote good mining practices, a Unitization Agreement is the preferred method for determining royalty payouts. Under a Unitization Agreement, each mineral rights holder is paid a royalty based on their proportional share of the entire Unit Area regardless of whether or not their lands are actually mined. For example, if one mineral rights holder owns rights to 4,000 hectares within a 40,000-hectare Unit Area, they would be paid 10% of the total monthly royalty payout from that Unit Area.

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Figure 5: Map showing Lanigan Crown Lease KLSA 001 C (blue), Unitization Area #1 (green), and Unitization Area #2 (orange).

5.0

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

The Lanigan mine surface facilities are accessed by an existing paved road that is part of the Saskatchewan Provincial Highway System. All potash product is shipped by rail over existing track. The location of Lanigan Potash with respect to the features described in this section (major road and rail infrastructure, as well as nearby river systems) is shown in Figure 6.

The Lanigan mine is served by a number of villages within 50 kilometres of the minesite. The nearest cities are Humboldt (approximately 45 km north of Lanigan) and Saskatoon (approximately 100 km west of Lanigan).

Lanigan is situated near the northern extent of the Great Plains of North America. Topography is relatively flat, with gently rolling hills and occasional valleys. There are no rivers or other major watercourse channels near the Lanigan minesite. Climate at the Lanigan mine is typical for an inland prairie location at latitude 52º North (often characterized as “mid-latitude steppe” climate).

Part of the normal surface infrastructure associated with operating the potash mine in Saskatchewan includes waste disposal on the land and disposal of salt brine into deep subsurface aquifers. Facilities to carry out all aspects of these tasks are in place at Lanigan (see Section 20.0).

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Figure 6: Map showing infrastructure (towns, rivers, roads, and railways) near Lanigan Potash. Lanigan shaft locations are shown by red markers.

6.0

HISTORY

Exploration drilling for potash in the Lanigan area was carried out in the 1950s and 1960s. The Lanigan mine was built by a company named Alwinsal Potash of Canada Ltd., a consortium of German and French mining and fertilizer companies. Potash production began at Lanigan in 1968 and the mine has run on a continuous basis since then (other than short-term shutdowns taken for inventory management purposes or occasional plant maintenance and construction work). PotashCorp acquired the Lanigan mine in 1976.

Effective January 1, 2018, PotashCorp and Agrium completed the Arrangement. As a result of completing the Arrangement, PotashCorp and Agrium are wholly-owned subsidiaries of Nutrien.

Both flotation and crystallization methods are used at Lanigan to produce granular, standard and suspension grade potash for agricultural use. The annual nameplate capacity at Lanigan as of December 31, 2018 is 3.8 million tonnes and the annual operational capability is 2.0 million tonnes of concentrated finished potash products.

7.0

GEOLOGICAL SETTING AND MINERALIZATION

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Figure 7: Thickness of the Prairie Evaporite Formation and area of potash distribution within these salts (from Fuzesy, 1982).

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Figure 8: Diagrammatic vertical section showing basic layered-Earth stratigraphy in a typical Saskatchewan potash region (from Fuzesy, 1982).

Potash mineralization in this region of Saskatchewan is predominantly sylvinite, which is comprised mainly of the minerals sylvite (KCl) and halite or rock salt (NaCl), with minor amounts of water insolubles. Carnallite (KMgCl₃ · 6H₂O) usually occurs in minor amounts at Lanigan; areas of the B Zone where carnallite layering is sporadically present are avoided through selective mining (i.e. by identifying and avoiding cutting through these layers). Potash fertilizer is concentrated, nearly pure KCl (i.e. greater than 95% pure KCl), but ore grade is traditionally reported on a % K₂O equivalent basis. The “% K₂O equivalent” gives a standard measurement of the nutrient value of different potassium-bearing rocks and minerals. To convert from % K₂O equivalent tonnes to actual KCl tonnes, multiply by 1.58.

Over the past three years (2016, 2017, 2018), the average, measured potash ore grade of the mill feed at Lanigan was 20.9% K₂0 equivalent. The average ore grade reported from 19 historic surface drillhole intersections, all within Lanigan Subsurface Mineral Lease KLSA 001 C, is 25.29% K₂0 equivalent for A Zone, and 23.21% K₂0 equivalent for B Zone (discussed further in Section 10.0). The average A Zone ore grade observed from 1,485 in-mine samples is 23.5% K₂O equivalent, and the average B Zone ore grade observed from 20,230 in-mine samples is 20.3% K₂O equivalent.

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Figure 9: Diagrammatic vertical section showing basic stratigraphy of the Prairie Evaporite Formation in the Saskatoon area (from Fuzesy, 1982).

8.0

DEPOSIT TYPE

The Lanigan potash deposit lies within the Patience Lake Member of Prairie Evaporite Formation. There are two potash seams named A Zone and B Zone within this Member; both the A Zone and B Zone are being mined at Lanigan. The Belle Plaine potash member is present at Lanigan but is not economically mineable, while the Esterhazy Member is poorly developed and not economically mineable.

Lanigan potash mineralization occurs at an average of about 990 m depth below surface. Salt cover from the top of the A Zone mining horizon to overlying units is approximately 7 metres thick, and salt cover from the top of the B Zone mining horizon to overlying units is approximately 14 metres thick. The Lanigan mine operates as a conventional, underground potash mine.

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Figure 10: Schematic cross-section across southern Saskatchewan of the Prairie Evaporite Formation showing relative position of potash members. At Lanigan, potash is mined from the Patience Lake Member, labeled “PLM” (from Fuzesy, 1982).

9.0

EXPLORATION

Before the Lanigan mine was established in 1968, all exploration consisted of drilling from surface and analysis of core from these drillholes; drilling results are discussed in Section 10.0. Since mining began in 1968, there have been just seven potash test holes; two of which targeted seismic (geological) anomalies as part of a seismic data verification process. A map showing potash exploration coverage at Lanigan Potash (drillholes, 2D and 3D seismic coverage) is shown in Figure 11. A detailed air photo showing the area around the Lanigan surface operations is shown in Figure 12.

A total of 621 linear kilometres of 2D seismic lines have been acquired at Lanigan. A total of 520 square kilometres of 3D seismic have been acquired at Lanigan between 1988 and 2018. The most recent seismic survey was conducted in 2017 and accounted for 10 square kilometres of the total square kilometres stated above.

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Figure 11: Potash exploration at Lanigan (2D & 3D surface seismic and potash exploration drillholes).

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Figure 12: Air photo showing Lanigan Potash surface operations and Tailings Management Area.

A typical seismic section from the Lanigan area is shown in Figure 13. This is a fence section extracted from the “Lanigan 2008” 3D survey. A 2x vertical stretch has been applied to these data. The vertical scale is in metres relative to sea level (SL). The seismic section is coloured with rock velocities computed from the seismic data: blues are slow (shales), reds are fast (carbonates), and pinks / whites are intermediate (sand, salt). Note that the reflectors at both top and bottom of the unit marked Prairie Evaporite (salt) are continuous. This indicates an undisturbed, flat-lying salt within which potash is likely to be found based on 50 years of mining experience at Lanigan. The reflection from a Lanigan mine panel also shows up.

Figure 14 is a detailed (zoomed-in) view of the data plotted in Figure 13. In this figure, mine elevations from the in-mine level survey are added into the seismic data volume; the seismic data were acquired in 2008 and the room plotted in the figure was cut before seismic acquisition.

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Figure 13: Seismic section from the Lanigan 2008 3D seismic data volume showing relative rock velocities. Sea level (SL) is marked in metres and major geological units are labeled.

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Figure 14: Detail of seismic section from the Lanigan 3D seismic data volume. Actual mine room reflection is marked in yellow. Ground surface is at approximately +500 m above Sea Level.

10.0

DRILLING

For the original Lanigan potash test holes drilled in the 1950s and 1960s, the primary objective of this drilling was to sample the potash horizons to establish basic mining parameters. Seismic surveys (2D) were done sparingly in those days, so the drillhole information was relied upon heavily to evaluate potash deposits. Test holes would penetrate the evaporite section with a hydrocarbon based drilling mud (oil-based or diesel fuel) to protect the potash mineralization from dissolution. Basic geophysical well-logs were acquired, and in many cases, drill stem tests were run on the Dawson Bay Formation to help assess mine inflow potential. Core samples from the targeted potash intersections were split or quartered (cut with a masonry saw) crushed and analysed to establish potash grades.

Drilling activity was limited at Lanigan during the 1970s. In 1973, a single exploration drillhole was completed, although assay results proved to be unusable. Subsequently, in 1975, a second salt water disposal well, from which assay data were taken, was constructed.

In 1981, further exploration drilling was carried out at Lanigan as part of a mine expansion project. Five additional drillholes were completed, following similar drilling and sampling methodologies as the original 1950s and 1960s drillholes. Geophysical well-logging technology had improved and therefore the log suites collected in the 1981 drill program were of better quality than those collected previously. A 2D seismic survey had been carried out prior to the 1981 drilling program. Two of the five drillholes completed in 1981 targeted seismic (geological) anomalies as part of a seismic data verification process. The anomalies were confirmed and areas around these drillholes were excluded from mine development.

Relatively thin interbeds or seams, referred to as clay seams in the potash industry, are an ever-present component of the A Zone and B Zone at Lanigan. Figure 15 shows the basic stratigraphic relationships. These seams, along with the clay or clay-like material disseminated throughout the rock, make up the water insoluble portion of the mineralized horizons. The same sequences of clay seams can be correlated for many kilometres across the central Saskatchewan potash mining district.

At Lanigan, a particular sequence of two clay seams marks the top of the A Zone. A distinct clay seam marks the top of the B Zone; this clay seam is immediately overlain by a much less consistent clay seam referred to as Shadowband at Lanigan. In 2013, Lanigan modified its cutting practices in the B Zone to improve mine roof stability. This modification involved cutting a slightly higher horizon, just above Shadowband, thus removing the hazard associated with the seam. The goal of improved mine roof stability was achieved; however, less potash and more salt is now being mined resulting in a slightly lower reported ore grade for B Zone.

Clay seams are illustrated in Figure 15. These seams are used to guide the vertical positioning of the mining machine. The uppermost portion of the sequence of three seams is maintained at the top of the mining cut to keep the cutting “on grade”. Cutting too high above this upper seam or top marker results in dilution, as lower grade material immediately overlies the

production zone. In practice though, the top marker seam is slightly overcut (between 10 cm to 20 cm) to prevent an unstable condition from being created. Clay seams are often planes of weakness, and if they are undercut, material immediately below the clay seam becomes a hazard as it may separate and fall. Since the hazard must be remediated prior to proceeding, thus slowing production, the moderately diluted mineral grade that results from the overcutting is preferable from a safety point of view.

The A Zone mining interval is fixed at 3.66 m (12’). B Zone mining machines have a fixed mining height of 2.74 m (9’). In a normal B Zone production room, ore is extracted in two lifts resulting in a mining height of approximately 4.88 m (16’). These mining heights allow for comfortable working headroom and efficient extraction of potash ore.

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Figure 15: Typical stratigraphic section correlated with composite photos covering both the A Zone and B Zone production intervals.

Drill core assay results were studied by independent consultant David S. Robertson and Associates (1976) and by Nutrien technical staff (see Section 12.1). Results are found in Table 2. The best 3.66 m (12’) mining interval in A Zone, and the best approximately 4.88 m (16’) mining interval in B Zone was determined from the assay values in each potash test well, using clay marker seams as a guide. Note that while B Zone drillhole assays were derived using intervals of between 4.07 m to 7.30 m averaging 5.08 m, a more conservative mining height of 4.88 m is used for Mineral Resource and Reserve estimates.

The original Lanigan exploration area was explored with 12 test holes spaced at intervals of 1.6 km to 3.4 km (1 – 3 miles). In total, 27 potash test holes have been drilled within Lanigan Lease KLSA 001 C, but only 19 are used in the average ore grade calculation for A Zone in Table 2, and only 19 are used in the average ore grade calculation for B Zone in Table 2. Certain drillholes within KLSA 001 C were not assayed, while others intersected abnormal geology whereby a normal potash zone could not be picked given the limited data available and, therefore, the resulting % K₂O and % water insoluble content could not be evaluated with confidence.

Drillhole assay data for the A Zone at Lanigan gives an estimated mean grade of 25.29% K₂O with 5.78% water insolubles. Drillhole assay data for B Zone at Lanigan gives an estimated mean grade of 23.21% K₂O with 5.59% water insolubles.

Due to the remarkably consistent mineralogy and continuity of the resource, as experienced through 50 years of mine production, very little potash exploration drilling has been done at Lanigan since 1961. Instead of exploration drillholes, seismic surveying has been relied upon more and more to explore ahead of mine development. Where normal Prairie Evaporite sequences are mapped in the seismic data, potash beds have unfailingly been present. Localized, relatively small mine anomalies, not mapped in seismic data do occur. When they do, they are dealt with in the normal course of mining and extraction through these anomalous areas is typically minimized. Anomalies associated with possible water inflow problems, which are mapped in the seismic data, are avoided.

Table 2: Assay results for all potash test holes within Lanigan Lease KLSA 001 C


Location	Year Drilled	A Zone						B Zone
Location	Year Drilled	Interval (m)		% K₂0 Equiv.		% Water Insol.		Interval (m)		% K₂0 Equiv.		% Water Insol.
01-29-033-22 W2	1955		3.66		27.68		6		5.49		*		*
13-34-033-23 W2	1956		—		*		*		—		*		*
16-12-034-24 W2	1956		—		*		*		4.51		25.77		*
12-24-034-23 W2	1957		3.66		25.61		2.78		5.12		18.51		2.37
04-28-033-23 W2	1958		3.66		25.87		2.13		4.85		25.75		6.3
04-29-032-22 W2	1959		—		*		*		—		*		*
13-11-033-23 W2	1959		3.66		21.17		9.65		4.16		26.85		5.5
09-26-033-23 W2	1959		3.66		27.33		2.24		4.51		25.18		6.6
03-10-034-23 W2	1959		3.66		22.06		*		4.07		23.97		5.7
01-10-033-24 W2	1959		3.66		27.32		*		4.92		24.58		4.2
04-24-033-24 W2	1959		3.66		25.68		1.91		5.19		24.02		5
13-18-033-22 W2	1960		3.66		26.29		7.1		4.72		22.84		8.15
08-02-033-23 W2	1960		3.66		26.93		7.1		7.59		15.73		5.25
12-04-033-23 W2	1960		3.66		26.53		6.54		4.76		24.61		5.8
12-16-033-23 W2	1960		3.66		23.87		8.4		4.31		25.89		4.2
09-22-033-23 W2	1960		3.66		29.45		5.69		5.04		25.15		6.8
02-30-033-23 W2	1960		—		*		*		—		*		*
13A-30-033-23 W2	1960		3.66		25.36		8.88		7.3		14.79		3.51
01-12-033-24 W2	1960		3.66		24.72		7.33		5.02		26.62		4.8
12-04-033-23 W2	1961		—		*		*		—		*		*
08-03-033-23 W2	1973		—		*		*		—		*		*
01-20-033-23 W2	1975		—		*		*		5.96		22.4		5.6
04-07-033-22 W2	1981		3.66		22.8		4.15		—		*		*
03-26-032-23 W2	1981		3.66		20.59		6.21		4.57		18.8		7.17
04-28-032-23 W2	1981		3.66		25.67		*		4.94		25.59		6.88
16-25-033-23 W2	1981		—		*		*		—		*		*
13-25-032-24 W2	1981		3.66		25.57		6.4		4.88		24.01		6.8
Average (of usable values):			3.66		25.29		5.78		5.10		23.21		5.59

Italicized numbers from Robertson Associates 1976

*	Assay sampling incomplete. In drillholes that intersected abnormal potash geology, a normal potash zone could not be picked given the limited data available and, therefore, the resulting % K₂O and % water insoluble content could not be evaluated with confidence.

11.0

SAMPLING METHOD AND APPROACH

11.1

BASIC APPROACH

Exploration in the Lanigan area was conducted in the 1950s and 1960s. A second phase of drilling associated with a mine expansion project occurred in 1981. Sampling and assaying of potash core samples was done using methods considered consistent with standard procedures for potash exploration at these times.

An assay plot for drillhole PCS Lanigan 04-28-032-23 W2 is shown below in Figure 16. Similar data were compiled for all historical potash test holes. In the A Zone, the best 3.66 m (12’) mining interval intersected in each drillhole, as discussed in Section 10.0, is determined from the assay values using clay seams as a guide. Likewise, the best approximately 4.88 m (16’) B Zone mining interval is determined from the assay values using clay seams as a guide. Note that while B Zone drillhole assays were derived using intervals of between 4.07 m to 7.30 m averaging 5.08 m, a more conservative mining height of 4.88 m is used for Mineral Resource and Reserve estimates. Table 3 lists the assay values plotted in Figure 16.

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Figure 16: Potash assay plot for drillhole PCS Lanigan 04-28-032-23 W2 indicating the best 3.66 m (12’) mining interval for A Zone and the best 4.94 m (~16’) mining interval for B Zone.

Table 3: Values for potash assay plot in Figure 16.

PCS LANIGAN 04-28-032-23 W2 ASSAY VALUES


#	Depth (metres)				Interval Thick.		% K₂O Total		% Water Insol.		% Carnallite
#	From		To		Interval Thick.		% K₂O Total		% Water Insol.		% Carnallite
20		1008.44		1008.79		0.35		25.19		1.44		0.62
21		1008.79		1009.07		0.28		25.70		3.17		0.65
3.66m (12’) A Zone Mining Interval Top of Zone: 1009.07m
22		1009.07		1009.28		0.21		21.20		13.53		0.83
23		1009.28		1009.52		0.24		29.88		15.22		0.91
24		1009.52		1009.78		0.26		29.10		4.54		0.70
25		1009.78		1010.02		0.24		26.92		6.21		0.73
26		1010.02		1010.25		0.23		21.29		7.89		0.75
27		1010.25		1010.51		0.26		27.95		1.10		0.59
28		1010.51		1010.70		0.19		32.16		2.43		0.63
29		1010.70		1010.90		0.20		33.66		3.36		0.64
30		1010.90		1011.07		0.17		32.55		2.32		0.64
31		1011.07		1011.27		0.20		17.70		18.58		1.02
32		1011.27		1011.45		0.18		35.68		1.42		0.61
33		1011.45		1011.76		0.31		27.86		1.61		0.61
34		1011.76		1012.00		0.24		20.08		1.27		0.59
35		1012.00		1012.25		0.25		25.55		3.91		0.65
36		1012.25		1012.48		0.23		26.26		8.48		0.74
37		1012.48		1012.66		0.18		7.69		29.24		3.85
38s		1012.66		1012.73		0.07		28.82		3.22		0.65
3.66m (12’) A Zone Mining Interval Base of Zone: 1012.73m
38s		1012.73		1012.95		0.220		28.82		3.22		0.65
39		1012.95		1013.16		0.210		5.17		1.22		0.59
3.66m (12’) A Zone Mining Interval Weighted Average								26.08		7.29		0.89
56		1017.25		1017.61		0.36		3.64		0.50		0.56
57		1017.61		1017.89		0.28		1.17		1.17		0.57
4.94m (16’) B Zone Mining Interval Top of Zone: 1017.89m
58		1017.89		1018.15		0.26		4.16		9.23		0.72
59		1018.15		1018.37		0.22		41.05		2.11		0.62
60		1018.37		1018.53		0.16		36.65		1.80		0.61
61		1018.53		1018.71		0.18		17.76		5.61		0.68
62		1018.71		1018.90		0.19		18.74		25.62		6.67
63		1018.90		1019.17		0.27		33.02		7.08		0.70
64		1019.17		1019.30		0.13		26.88		11.37		0.80
65		1019.30		1019.45		0.15		24.28		3.74		0.63
66		1019.45		1019.69		0.24		39.66		0.50		0.59
67		1019.69		1019.93		0.24		32.77		6.10		0.67
68		1019.93		1020.08		0.15		29.12		1.36		0.59
69		1020.08		1020.27		0.19		17.23		0.98		0.59
70		1020.27		1020.52		0.25		29.59		0.35		0.58
71		1020.52		1020.74		0.22		21.84		11.25		0.79
72		1020.74		1021.00		0.26		9.38		15.03		0.84
73		1021.00		1021.27		0.27		39.20		5.39		0.66
74		1021.27		1021.56		0.29		39.83		2.81		0.63
75		1021.56		1021.77		0.21		35.50		3.11		0.63
76		1021.77		1021.92		0.15		14.97		24.66		5.21
77		1021.92		1022.14		0.22		25.56		7.85		0.73
78		1022.14		1022.32		0.18		21.47		2.80		0.62
79		1022.32		1022.63		0.31		9.32		2.73		0.61
80		1022.63		1022.83		0.20		18.75		14.41		0.87


4.94m (16’) B Zone Mining Interval Base of Zone: 1022.83m
81	1022.83	1023.09	0.26	3.38	6.33	0.70
82	1023.09	1023.59	0.50	0.39	1.62	0.57
4.94m (~16’) B Zone Mining Interval Weighted Average				25.59	6.88	1.04

A total of 1,485 A Zone in-mine ore grade samples, and 20,230 B Zone in-mine ore grade samples were collected at Lanigan to the end of December 2017 (discussed further in Section 11.2). All in-mine samples were analysed in the Lanigan mill laboratory using analysis techniques that were up-to-date for the era in which the sample was collected.

In the opinion of the authors, the sampling methods are acceptable, are consistent with industry standard practices, and are adequate for Mineral Resource and Reserve estimation purposes.

11.2

MEAN POTASH MINERAL GRADE FROM IN-MINE SAMPLES

In the Lanigan A Zone, in-mine grade samples are taken from the floor at the start of every cutting sequence. This is equivalent to a sample taken approximately every 23 m (76’) in production panels, and a sample taken approximately every 47 m (155’) in development panels. Since mining began in the A Zone in 2007 through to the end of December 2017, a total of 1,485 in-mine potash mineral grade samples were collected from the Lanigan A Zone. In- mine samples collected and analysed in 2018 contributed no meaningful change to the overall mineral ore grade. All samples were analysed in the Lanigan mill laboratory using up-to-date analysis techniques. Figure 17 shows a histogram of A Zone in-mine grade sample results from the Lanigan mine.

The median ore grade for this family of in-mine samples is 24.5% K₂O equivalent and the mean ore grade is 23.5%. This is considered to be a more representative estimate of expected potash ore grade in the A Zone at Lanigan than drillhole assay results presented in Section 10.0.

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Figure 17: Histogram of potash ore grade from 1,485 A Zone in-mine grade samples at Lanigan (data from 2007 through to the end of December 2017).

In the Lanigan B Zone, in-mine grade samples are taken from the floor every 60 m (200’) in newly mined rooms. In-mine grade data is available from 1999 through to the end of December 2017. A total of 20,230 in-mine potash mineral grade samples were collected from the Lanigan B Zone. In-mine samples collected and analysed in 2018 contributed no meaningful change to the overall mineral ore grade. All samples were analysed in the Lanigan mill laboratory using analysis techniques that were up-to-date for the era in which the sample was collected. Figure 18 shows a histogram of B Zone in-mine grade sample results from the Lanigan mine.

The median ore grade for this family of in-mine samples is 20.8% K₂O equivalent and the mean ore grade is 20.3%. This is considered to be a more representative estimate of expected potash ore grade in the B Zone at Lanigan than drillhole assay results presented in Section 10.0.

In 2013, Lanigan modified its cutting practices in the B Zone to improve mine roof stability. This modification involved cutting in a slightly higher, but more stable horizon (described in more detail in Section 10.0). The goal of improved mine roof stability was achieved, however, less potash and more salt is now being mined resulting in a slightly lower reported ore grade for B Zone.

LOGO

Figure 18: Histogram of potash ore grade from 20,230 B Zone in-mine grade samples at Lanigan (data from 1999 through to end of December 2017).

11.3

POTASH ORE DENSITY FROM IN-MINE MINERAL GRADE MEASUREMENTS

Another approach is to look up density values for the minerals which constitute potash rock – values determined in a laboratory to a high degree of accuracy and published in reliable scientific journals / textbooks – then apply these densities to the bulk-rock in some way. Given that the density of each pure mineral is quantified and known, the only difficult aspect of this approach is determining what proportion of each mineral makes up the bulk-rock at a particular sample location. This is the methodology that was used to determine an estimate of bulk-rock density for the Lanigan B Zone. An obvious benefit of this approach is that a mean value computed on the distribution shown in Figure 18 (20,230 sample points) has a much greater confidence interval than a mean value computed from 19 drillhole assays.

The main mineralogical components of the ore zones of Saskatchewan’s Prairie Evaporite Formation are:

— Halite – NaCl

— Sylvite – KCl

— Carnallite – KMgCl₃· 6(H₂O)

— Insolubles – dolomite, muscovite, clinochlore, potassium feldspar, illite, quartz, anhydrite, and other minor mineral components

All Nutrien potash facilities measure and record the in-mine % K₂O grade and insoluble content of the mined rock. In addition, carnallite content is also measured at Lanigan since it can be a component of the lower portion of the B Zone. Selective mining is generally employed when carnallite is encountered in B Zone production mining. This is performed by taking only a single lift with the mining machine through the upper portion of the B Zone mining horizon, leaving much of the carnallite mineralization in the floor unmined. The B Zone carnallite that does remain in the ore stream is accounted for during analysis. From this set of measurements, the density of the ore can be estimated. The required composition and mineral density information for each mineral component is given below (Webmineral Mineralogy Database):


Halite – NaCl

— Na		39.34%
— Cl		60.66%
— Oxide form Na₂O		53.03%
— Mineral density		2170 kg / m³

Sylvite – KCl

— K		52.45%
— Cl		47.55%
— Oxide form K₂O		63.18%
— Mineral density		1990 kg / m³

Carnallite – KMgCl₃ · 6H₂O

— K		14.07%
— Mg		8.75%
— H		4.35%
— Cl		38.28%
— O		34.55%
— Oxide form K₂O		16.95%
— Oxide form MgO		14.51%
— Oxide form H₂O		38.90%
— Mineral density		1600 kg / m³

Insolubles (Lanigan B Zone)

•

Component minerals: dolomite, muscovite, clinochlore, potassium feldspar, illite, quartz, anhydrite, and other minor mineral components

•

Average density 2870 kg / m³ (Nutrien Pilot Plant, 2018)

Note that the estimate of the value for insoluble density is based on known densities of the constituent parts of the insoluble components of B Zone mineralization and the average occurrence of these insoluble components, which is known from the nearly 50 years of mining experience at Lanigan. Assuming the lowest plausible density of insolubles known for Saskatchewan potash deposits of this nature, the effect upon overall bulk-rock ore density and reserve calculations would be negligible.

The mineral composition of B Zone potash ore is halite, sylvite, carnallite and insolubles. The effect of % K₂O as carnallite is removed from the total % K₂O measurements leaving % K₂O values that are only due to sylvite. From 20,230 Lanigan B Zone in-mine grade samples, raw ore composition is:


% Sylvite	=	30.8 (converted from % K₂O)
% Insolubles	=	4.8
% Carnallite	=	4.9

The percent of halite is assumed to be:


% Halite	=	(100 - % Sylvite - % Insol. - % Carnallite)
	=	(100 – 30.8 - 4.8 – 4.9)
	=	59.5

Applying this methodology, and using these mean grade data gives a mean bulk-rock density for Lanigan B Zone potash of:


RHO_bulk-rock	=	(Halite density * % Halite) +
		(Sylvite density * % Sylvite) +
		(Carnallite density * % Carnallite) +
		(Insol. density * % Insol.)
	=	(2170 * % Halite) +
		(1990 * % Sylvite) +
		(1600 * % Carnallite) +
		(2870 * % Insol.)
	=	2120

RHO_bulk-rock(Lanigan B Zone) = 2120 kg / m³

This method is as accurate as the B Zone ore grade measurements and mineral density estimates.

To date, not enough A Zone mining has been carried out at Lanigan to permit the calculation of a proper in-situ bulk-rock potash density based solely on in-mine grade samples. A Zone mining has proven successful at Lanigan and takes place in several different geographic locations within the Mineral Lease. Therefore, it is likely that, in the future, enough in-mine samples will be available to support the calculation of an accurate in-situ bulk-rock density for A Zone potash ore. However, in the interim, Allan Potash’s in-situ bulk-rock density for A Zone potash is used; this has been calculated using 6,738 in-mine samples from the Allan A Zone:

RHO_bulk-rock (Lanigan A Zone) = RHO_bulk-rock(Allan A Zone) = 2110 kg / m³

This estimate is considered acceptable since both Allan A Zone and Lanigan A Zone are the same potash seam. Should the Lanigan A Zone bulk density change from the predicted value of 2110 kg / m³, the later defined Lanigan A Zone Mineral Resources and Reserves in Sections 14.2 and 15.2 will also change, albeit, insignificantly.

12.0

DATA VERIFICATION

12.1

ASSAY DATA

Original drill core assays were studied by independent consultant David S. Robertson and Associates (1976). The original assay results for core samples from historical drillholes were taken as accurate in these studies, as there is no way to reliably reanalyse these samples. Most of the remaining samples in storage have long since deteriorated to the point where they are not usable. Robertson (1976) assay analyses for the A Zone are not reported in Section 10.0 as they assumed a 3.4 m (11’) mining interval. Instead, Nutrien technical staff Jennifer Scott (P. Geo.) and Tanner Soroka (P. Geo.) reevaluated the historical assay results from the A Zone using a 3.66 m (12’) mining interval, the mining height currently used in the Lanigan A Zone. Robertson (1976) assay analyses for the B Zone are reported in Section 10.0. Former Company staff evaluated assay results from potash test holes drilled in 1981.

Ore grades of in-mine samples are measured inhouse at the Lanigan mine laboratory by Company staff using modern, standard chemical analysis tools and procedures; an independent agency does not verify these results. However, check sampling through the SPPA program, discussed in Section 11.1, does occur.

It should be noted that assay results from historical drillholes match mine sample results closely – within approximately 0.9% for A Zone and 1.4% for B Zone – even though sample spacing is obviously much greater in the case of drillholes. This fact is a validation of the methodology. Based on 50 years of in-mine experience at Lanigan, historical assay results are considered acceptable and provide a good basis for estimating ore grade in areas of future mining at Lanigan. However, the A Zone mean mineral grade of 23.5% K₂O equivalent determined from 1,485 in-mine grade samples, and the B Zone mean mineral grade of 20.3% K₂O equivalent determined from 20,230 in-mine grade samples is thought to provide the most accurate

measurement of potash grade for the Lanigan mine.

12.2

EXPLORATION DATA

The purpose of any mineral exploration program is to determine extent, continuity, and grade of mineralization to a certain level of confidence and accuracy. For potash exploration, it is important to minimize the amount of cross-formational drilling, since each drillhole is a potential conduit for subsurface groundwater from overlying (or underlying) water-bearing formations into future mine workings. Every potash test hole from surface sterilizes potash mineralization; a safety pillar is required around every surface drillhole once underground mining commences. This is the main reason that minimal exploration drilling has been carried out at Lanigan in recent years.

Initial sampling and assaying of cores was done during potash exploration at Lanigan in the 1950s and 1960s. Methods were consistent with standard procedures for that era. The mine began production in 1968 and, with the exception of a potash test hole in 1975 and six potash test holes in 1981, no further core drilling has been carried out since then. This approach to potash sampling is in accordance with widely accepted industry practice for areas adjacent and contiguous to an existing operating potash mine.

Assay of physical samples (drillhole cores and / or in-mine samples) is the only way to gain information about mineral grade, but extent and continuity of mineralization are correctly determined using data collected from geophysical surveys correlated with historic drilling information. To date, surface seismic data at Lanigan have been collected, analysed, and verified by Company staff, at times, in cooperation with an independent consultant. Ultimate responsibility for final analyses including depth conversion (seismic depth migration), as well as the accuracy of these data, rests with Nutrien qualified persons.

Data for the Mineral Resource and Reserve estimates for Lanigan mine reported in Sections 14.0 and 15.0 were verified by Nutrien staff as follows:

•

Annual review of potash assay sample information (drillholes and in-mine grade samples),

•

Annual review of surface geophysical exploration results (3D and 2D seismic data),

•

Annual crosscheck of mined tonnages reported by minesite technical staff with tonnages estimated from mine survey information, and

•

Annual crosscheck of Mineral Resource and Reserve calculations carried out by corporate technical staff.

13.0

MINERAL PROCESSING AND METALLURGICAL TESTING

At Lanigan, potash ore has been mined and concentrated to produce saleable quantities of high-grade finished potash products since 1968. Products include granular, standard and suspension grade potash for agricultural use.

Over the 50-year mine life, 207.762 million tonnes of potash ore have been mined and hoisted to produce 60.276 million tonnes of finished potash product (from startup in 1968 to December 31, 2018). Given this level of sustained production over 50 years, basic mineralogical processing and prospective metallurgical testing of Lanigan potash is not considered relevant.

See also Section 17.0.

14.0

MINERAL RESOURCE ESTIMATES

14.1

DEFINITIONS OF MINERAL RESOURCE

The Canadian Institute of Mining and Metallurgy and Petroleum (CIM) has defined Mineral Resource in The CIM Definition Standards for Mineral Resources and Reserves (2014) as:

The mine began production in 1968, and since then just seven potash exploration drillholes have been drilled in the Lanigan lease area; two of which are unusable for assay analysis (see Section 10.0). Instead, exploration involved collecting surface seismic data, which became better in quality over the years. Exploration drilling has demonstrated the presence of the potash horizon, and seismic coverage shows the continuity of the Prairie Evaporite Formation within which the potash horizon occurs.

Along with this approach, analysis of in-mine samples for potash grade has provided an observation-based understanding of the potash mineralized zones at Lanigan that is far superior to the level of understanding provided by any surface drilling based exploration program. The authors believe that this approach provides a body of information that guides and constrains exploration inferences in a much better way than could be achieved from any conventional exploration investigation in areas immediately surrounding, and contiguous to, the Lanigan potash mine.

14.2

LANIGAN POTASH RESOURCE CALCULATIONS

Exploration information used to calculate reported Mineral Resource tonnages at Lanigan consist of both physical sampling (drillhole and in-mine) and surface seismic (2D and 3D) as discussed in earlier sections. Based on the definitions and guidelines in Section 14.1, all mineral rights leased or owned by the Company, and within Crown Subsurface Mineral Lease KLSA 001 C, are assigned to one of the three Mineral Resource categories.


Mining Height (A Zone):		3.66 metres (12’)
Mining Height (B Zone):		4.88 metres (16’)
Ore Density (A Zone):		2.110 tonnes / cubic metre
Ore Density (B Zone):		2.120 tonnes / cubic metre

The Mineral Resources for Lanigan, as of December 31, 2018 are as follows:

Lanigan A Zone:


Inferred Resource	671	millions of tonnes
Indicated Resource	1,325	millions of tonnes
Measured Resource	2,142	millions of tonnes

Total A Zone Resource	4,137	millions of tonnes

Lanigan B Zone:


Inferred Resource	899	millions of tonnes
Indicated Resource	1,775	millions of tonnes
Measured Resource	2,578	millions of tonnes

Total B Zone Resource	5,251	millions of tonnes

Total for Lanigan (A Zone + B Zone):


Inferred Resource	1,570	millions of tonnes
Indicated Resource	3,099	millions of tonnes
Measured Resource	4,719	millions of tonnes

Total A Zone + B Zone Resource	9,390	millions of tonnes

Lanigan Mineral Resources are plotted in Figure 19.

The average mineral grade of the Lanigan A Zone Mineral Resource is 23.5% K₂0 equivalent, and was determined from 1,485 in-mine samples at Lanigan. The average mineral grade of the Lanigan B Zone Mineral Resource is 20.3% K₂0 equivalent, and was determined from 20,230 in-mine samples at Lanigan. See Section 11.2 for more detail.

The tonnage reported as Lanigan A Zone Measured Resource is comprised of both potash ore that is within 1.6 km (1 mile) of A Zone mine workings, and potash ore that is left behind as pillars in mined-out areas of the A Zone at Lanigan. Also included as Lanigan A Zone Measured Resource is the potash ore within 1.6 km (1 mile) of drillholes for which A Zone assay results are available.

Similarly, the tonnage reported as Lanigan B Zone Measured Resource is comprised of both potash ore that is within 1.6 km (1 mile) of B Zone mine workings, and potash ore that is left behind as pillars in mined-out areas of the B Zone at Lanigan. Also included as Lanigan B Zone

Measured Resource is the potash ore within 1.6 km (1 mile) of drillholes for which B Zone assay results are available.

In a potash mine, it is common practice to consider mining remnant pillar mineralization using solution methods after conventional mining is complete, or after a mine is lost to flooding. The Patience Lake mine was successfully converted from a conventional mine to a solution mine after being lost to flooding in 1989. Since conversion to a solution mine is not anticipated in the near future at Lanigan, in-place pillar mineralization remains as a Mineral Resource rather than a Mineral Reserve at this time.

LOGO

Figure 19: Map showing Lanigan A Zone Mineral Resource with mine workings to December 2018.

15.0

MINERAL RESERVE ESTIMATES

15.1

DEFINITIONS OF MINERAL RESERVE

The Canadian Institute of Mining and Metallurgy and Petroleum (CIM) has defined Mineral Reserve in The CIM Definition Standards for Mineral Resources and Reserves (2014) as:

Proven Mineral Reserve: the economically mineable part of a Measured Mineral Resource. A Proven Mineral Reserve implies a high degree of confidence in the Modifying Factors.

For Saskatchewan, in regions adjacent and contiguous to an operating potash mine, Mineral Reserve categories are characterized by PotashCorp as follows:

Along with this approach, analysis of in-mine samples for potash grade has provided an observation-based understanding of the potash mineralized zone at Lanigan that is far superior to the level of understanding provided by any surface drilling based exploration program. An understanding of the amount of ore that can be conventionally mined from the Measured Resource category using current mining practices comes from nearly 50 years of potash mining experience at Lanigan.

15.2

LANIGAN POTASH RESERVE CALCULATIONS

Using the definitions outlined in Section 15.1, part of the Lanigan A Zone and B Zone Measured Resource has been converted to Mineral Reserve. The assigned Mineral Reserve category is dependent on proximity to sampled mined entries also described in Section 15.1. An overall

extraction rate for the Lanigan mine has been applied to the qualifying area outlined as Measured Resource in Figure 19. This extraction rate is significantly lower than the local extraction rate described in Section 16.1, as it takes into account areas which cannot be mined due to unfavorable geology.

The overall extraction rate at the Lanigan mine is 26%. It was derived by dividing the total tonnes mined to date by the tonnage equivalent of the total area of the mine workings (i.e. the perimeter around the mine workings). Since an extraction rate has been applied, Mineral Reserves are considered recoverable ore, and are reported as such.

Currently, in any specific mining block at Lanigan, only one zone is mined (i.e. bi-level mining is not in practice). As such, Mineral Reserve has been split by ore zone that will be mined in the future; A Zone Mineral Reserve and B Zone Mineral Reserve do not overlap. Unmined B Zone potash mineralization directly underlying the defined A Zone Mineral Reserve is classified as B Zone Measured Resource. In the same way, unmined A Zone potash mineralization directly overlying the defined B Zone Mineral Reserve is classified as A Zone Measured Resource.

The Mineral Reserves for Lanigan as of December 31, 2018 are as follows:

Lanigan A Zone:



Probable Reserve	142	millions of tonnes
Proven Reserve	19	millions of tonnes

Total A Zone Reserve	161	millions of tonnes

Lanigan B Zone:


Probable Reserve	287	millions of tonnes
Proven Reserve	92	millions of tonnes

Total B Zone Reserve	379	millions of tonnes

Total for Lanigan (A Zone + B Zone):


Probable Reserve	429	millions of tonnes
Proven Reserve	111	millions of tonnes

Total A Zone and B Zone Reserve	540	millions of tonnes

Lanigan Mineral Reserves are plotted in Figure 20.

LOGO

Figure 20: Map showing Lanigan A Zone Mineral Reserve with mine workings to December 2018.

16.0

MINING METHOD

16.1

MINING OPERATIONS

All conventional potash mines in Saskatchewan operate at 900 m to 1200 m below surface within 9 m to 30 m of the top of the Prairie Evaporite Formation. Over the scale of any typical Saskatchewan potash mine, potash beds are tabular and regionally flat-lying, with only moderate local variations in dip. At Lanigan, potash ore is mined using conventional mining methods, whereby:

•

Shafts are sunk to the potash ore body;

•

Continuous mining machines cut out the ore, which is hoisted to surface through the production shaft;

•

Raw potash is processed and concentrated in a mill on surface; and

•

Concentrated finished potash products (near-pure KCl) are sold and shipped to markets in North America and offshore.

Potash ore was first hoisted at Lanigan in the fall of 1968. The Lanigan mine has run on a continuous basis since then, other than short-term shutdowns taken for inventory management purposes or occasional plant maintenance and construction work.

Most recently, mill rehabilitation, mine expansion and hoist improvement projects were completed at Lanigan between 2005 and 2010. The expansion construction was carried out without significant disruption to existing potash production from the site. As of December 31, 2018, annual nameplate capacity for Lanigan was 3.8 million tonnes and annual operational capability is 2.0 million tonnes of finished potash products (concentrated KCl).

Virtually all Lanigan underground mining rooms are in one of two potash mineralized zones within the Patience Lake Member of the Prairie Evaporite Formation (the host evaporite salt). In this Member, there are two potash seams named A Zone (the upper seam) and B Zone (the lower seam); at present, both the A Zone and B Zone are being mined at Lanigan. The A Zone and B Zone are separated by approximately 4 m to 6 m of tabular salt. In contrast, some potash mines further east in Saskatchewan mine in a different potash layer, the Esterhazy Member of the Prairie Evaporite Formation. Saskatchewan potash geology is illustrated in Figure 21. At Lanigan, mine elevations range from approximately 940 m to 1030 m, averaging approximately 990 m. These depths to potash mineralization are anticipated over most of the Lanigan lease area. Mine workings are protected from aquifers in overlying formations by approximately 7 m (A Zone) to 14 m (B Zone) of overlying salt and potash beds, along with salt plugged porosity in the Dawson Bay Formation, a carbonate layer lying immediately above potash hosting salt beds.

The Lanigan mine is a conventional underground mining operation whereby continuous mining machines are used to excavate potash ore by the stress-relief mining method in the A Zone and the long-room and pillar mining method in the B Zone. Currently, in any specific mining block,

only one zone is mined (i.e. bi-level mining is not in practice). Continuous conveyor belts transport ore from the mining face to the bottom of the production shaft. Mining methods employed in Saskatchewan are discussed in Jones and Prugger (1982) and in Gebhardt (1993).

The actual mining thickness at Lanigan is dictated by the height of continuous boring machines used to cut the ore. The A Zone mining interval is fixed at 3.66 m (12’). The 3.66 m (12’) mining height also allows for comfortable working headroom and efficient extraction of potash ore. The thickness of the B Zone mining horizon varies somewhat and there is some flexibility in the thickness of the potash ore that is extracted there. Production mining machines have a fixed mining height of 2.74 m (9’). In a normal production room, ore is extracted in two lifts resulting in a mining height of approximately 4.88 m (16’).

Carnallite sometimes occurs in minor amounts in the basal part of the B Zone. Carnallite is an undesirable mill feed material. If more than minor amounts of carnallite are detected in the floor after the first lift of a production room in the B Zone, it is left in the floor (i.e. a second lift is not cut). In these instances, the B Zone mining height is just 2.74 m (9’). Carnallite is found in trace amounts in the A Zone; however, due to its low occurrence, mining practices remain unchanged when it is encountered.

As discussed in Section 10.0, mining systems used in both A Zone and B Zone cut to a marker (clay) seam that is slightly above the high-grade mineralized zone to establish a safe and stable mine roof. In both zones, the top marker seam is slightly overcut by 10 to 20 cm. Clay seams are often planes of weakness, and if they are undercut, material immediately below the clay seam becomes a hazard as it may separate and fall. Since the hazard must be remediated prior to proceeding, thus slowing production, the moderately diluted mineral grade that results from the overcutting is preferable from a safety point of view.

In 2013, Lanigan modified its cutting practices in the B Zone to improve mine roof stability. This modification involved cutting in a slightly higher, but more stable horizon. The goal of improved mine roof stability was achieved; however, less potash and more salt is now being mined resulting in a slightly lower reported ore grade for B Zone.

Conservative local extraction rates (never exceeding 45% in any mining block) are employed at all Saskatchewan mines, including Lanigan, in order to minimize potential detrimental effects of mining on overlying strata; this is common practice in flat-lying, tabular ore bodies overlain by water-bearing layers.

LOGO

Figure 21: Typical stratigraphic section correlated with composite photos covering both the Patience Lake Member and the Esterhazy Member potash production intervals. At Lanigan, mining takes place in both the Upper and Lower Patience Lake Member (A Zone and B Zone).

From the shaft-bottom, potash ore is hoisted approximately 1000 m from the potash level through the vertical shafts to a surface mill. In addition to hoisting potash ore to surface, the production shaft provides fresh air ventilation to the mine and serves as secondary egress. The Service Shaft is used for service access, and exhausting ventilation from the mine.

Actual potash production tonnages for the Lanigan mine, along with concentration ratios (tonnes mined / tonnes product), are plotted for the past decade in Figure 22.

LOGO

Figure 22: Actual mining, production and concentration ratio for the Lanigan mine over the past 10 years.

16.2

RISKS TO POTASH MINING OPERATIONS, WITH EMPHASIS ON WATER INFLOWS

Over the past 50 years of mining at Lanigan, there have been numerous small brine inflows into underground workings. Analysis of water chemistry and stable isotope composition shows that these brines are from connate pockets of ancient, saturated brine trapped in the Prairie Evaporite Formation and / or the Dawson Bay Formation.

More recently, during the summer of 2012, a minor inflow was detected in underground workings at Lanigan. At present, the inflow is estimated at approximately 170 litres / minute. Since it was discovered, work to fully characterize and manage this inflow has been focused and sustained, and is ongoing. To date, this inflow has had no impact on Lanigan potash production.

Inflow into each existing shaft at Lanigan, which were both designed to be water-tight, is estimated at nil (i.e. not measurable).

17.0

RECOVERY METHODS

Both floatation methods and crystallization methods are used to concentrate potash ore into finished potash products at the Lanigan mill. A simplified process flow diagram is shown in Figure 23. Raw potash ore is processed on surface, and concentrated red potash products are sold and shipped to markets in North America and offshore.

LOGO

Figure 23: Simplified flow diagram for potash floatation and crystallization milling methods used at Lanigan.

Over the past three years, production of finished potash products at Lanigan was:

2016: 2.030 million tonnes finished potash products at 60.72% K₂O (average grade)

2017: 1.817 million tonnes finished potash products at 60.92% K₂O (average grade)

2018: 1.962 million tonnes finished potash products at 60.97% K₂O (average grade)

Over the past decade, actual mill recovery rates have been between 75.6% and 85.9%, averaging 82.7% (see Figure 24).

Given the long-term experience with potash geology and actual mill recovery at Lanigan, no fundamental potash milling problems are anticipated in the foreseeable future.

Quality control testing and monitoring geared towards fine-tuning and optimizing potash milling and concentrating processes are conducted on a continual basis at all Nutrien minesites and at Nutrien research facilities. At Lanigan, this is no exception; test work to optimize circuit performance and ensure product quality is carried out on an ongoing basis.

LOGO

Figure 24: Lanigan mill recovery rate over the past 10 years.

18.0

PROJECT INFRASTRUCTURE

Infrastructure is in place to meet current and projected requirements for transportation, energy (electricity and natural gas), water and process materials at Lanigan. See also Section 5.0.

The Lanigan mine is served by a number of villages within 50 kilometres of the minesite. The nearest cities are Humboldt (approximately 45 km distant) and Saskatoon (approximately 100 km distant).

The Lanigan surface facilities are accessed by existing paved roads and highways that are part of the Saskatchewan Provincial Highway System. All potash product is shipped by rail over existing track.

At present, high voltage power capacity at Lanigan is 52 MVA. The ten-year projection of power utilization indicates that the utility can meet all foreseeable future demand.

The Lanigan operation requires a sustained fresh water supply for the milling process which is provided by a waterline from the Dellwood Reservoir (approximately 10 km distant) and from a regional aquifer called the Hatfield Valley Aquifer. This water supply provides a sustainable source of process water for Lanigan milling operations without having any impact on other users of water in the area.

19.0

MARKET STUDIES AND CONTRACTS

Potash from Company mines (including Lanigan) has been sold on a continuous basis since mining began in 1968. At present, Nutrien products are sold in more than 50 countries, to three types of end-use:

Fertilizer, focused on balanced plant nutrition to boost crop yields in order to meet the world’s ever-increasing appetite for food (nitrogen, phosphate, potash)

Feed Supplements, focused on animal nutrition (mainly phosphate)

Industrial, focused on products for high-grade food, technical and other applications (nitrogen, phosphate, as phosphoric acid, potash)

The most significant exporters are producers with mines in the large producing regions of Canada, the Middle East and the former Soviet Union, which all have relatively small domestic requirements.

¹	Company potash sales data for years prior to 2018 includes only PotashCorp sales.

World consumption of potash fertilizer has grown over the last decade, with the primary growth regions being developing markets in Asia and Latin America. These are countries with expanding crop production requirements, where potash has historically been under-applied and crop yields lag behind those of the developed world. Although temporary pauses can occur in certain countries, the underlying fundamentals of food demand that encourage increased potash application are expected to continue the growth trends in key importing countries. See Figure 27 for world potash production and demand in 2017.

LOGO

Figure 25: Historical Company potash sales 2009 to 2018 in million tonnes / year ².

LOGO

Figure 26: Historical Company potash net sales 2009 to 2018 in million USD $ / year ².

²	Company potash sales data for years prior to 2018 includes only PotashCorp sales.

LOGO

Figure 27: World potash production and demand for 2017.

Table 4: Primary Potash Market Profile


Country/Region	Growth Rate*			Key Consuming Crops
China		8.1	%	Vegetables, rice, fruits, corn
India		4.9	%	Rice, wheat, vegetables, sugar crops
Other Asia		4.1	%	Oil palm, rice, sugar crops, fruits, vegetables
Latin America		3.4	%	Soybeans, sugar crops, corn
North America		2.1	%	Corn, soybeans

*	5-year CAGR for consumption (2013-2018E)

Global potash shipments surpassed 66 million tonnes in 2018, an increase of more than 1 million tonnes from the previous record set in 2017. Potash demand has grown at an

annualized rate of more than 4 percent over the past 5 years, well above the long-term average of 2.5 to 3.0 percent. This growth is driven by strong potash consumption trends in all major potash markets.

LOGO

Figure 28: World potash shipments and consumption, 2013-2018E.

dealers, cooperatives, distributors and other fertilizer producers who have both distribution and application capabilities.

Plans and arrangements for potash mining, mineral processing, product transportation, and product sales are established by Nutrien and are within industry norms.

20.0

ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT

The tailings management strategy at all Nutrien potash mines in Saskatchewan, including Lanigan, is one of sequestering solid mine tailings in an engineered and provincially licenced Tailings Management Area (TMA) near the surface plant site. The Lanigan TMA currently covers an area of approximately 708 hectares (1,750 acres) of land owned by the Company. Solid potash mine tailings typically consist of 85% to 95% rock-salt (NaCl) and 5% to 15% insolubles (carbonate mud = CaCO₃, anhydrite mud = CaSO₄, and clays like chlorite, illite, and so on). An engineered slurry-wall has been constructed on the south and south-west sides of the Lanigan TMA in the areas where near-surface aquifers could be impacted by mine waters. Near-surface geology on all other sides of the TMA limits the possibility of brine migration into these areas. The slurry-wall provides secondary containment of any saline mine waters, stopping these brines from reaching surrounding near-surface aquifers. Areas surrounding the TMA are closely monitored; this includes everything from daily visual perimeter inspections to annual investigations and inspections of surrounding groundwater and aquifers.

Lanigan currently operates three brine disposal well near the surface plant of the Lanigan mine (marked in Figure 12) where clear salt brine (i.e. no silt, clay-slimes, or other waste) is borehole-injected into the Winnipeg / Deadwood Formations, deep subsurface aquifers approximately 1500 m to 1700 m below surface (marked in Figure 13). The groundwater in these extensive deep aquifers is naturally saline.

The Lanigan operation requires a sustained fresh water supply for the milling process which is provided by a waterline from the Dellwood Reservoir (approximately 10 km distant) and from a regional aquifer called the Hatfield Valley Aquifer. This water supply is provincially licensed and provides a sustainable source of process water for Lanigan milling operations without having

any impact on other users of water in the area.

In Saskatchewan, all potash tailings management activities are carried out under an “Approval to Operate” granted by the Saskatchewan Ministry of Environment (MOE), the provincial regulator. The Lanigan mine is in compliance with all regulations stipulated by the Environmental Protection Branch of Saskatchewan MOE. The current Lanigan Approval to Operate has been granted to July 1, 2028, the renewal date.

In terms of long-term decommissioning, environmental regulations in the Province of Saskatchewan require that all operating potash mines in Saskatchewan create a long-term decommissioning and reclamation plan that will ensure all surface facilities are removed, and the site is left in a chemically and physically stable condition once mine operations are complete. PotashCorp has conducted numerous studies of this topic, and the most recent decommissioning and reclamation plan for Lanigan was approved by MOE technical staff in October 2016. Because the current expected mine life for Lanigan is many decades into the future, it is not meaningful to come up with detailed engineering designs for decommissioning at present. Instead, decommissioning plans are reviewed every five years, and updated to accommodate new ideas, technological change, incorporation of new data, and adjustments of production forecasts and cost estimates. Any updated decommissioning and reclamation reports generated by this process are submitted to provincial regulatory agencies. For Lanigan, a revised decommissioning and reclamation plan is required in July 2021.

21.0

CAPITAL AND OPERATING COSTS

The Lanigan mine has been in operation since 1968; in the years immediately preceding this, major capital investment was made to bring this mine into production. Since then, capital expenditures were made on a regular and ongoing basis to sustain production, and to expand production from time to time.

22.0

ECONOMIC ANALYSIS

22.1

FUNDAMENTALS

Over the past three years (2016, 2017, and 2018) the Lanigan mine produced 5.809 million tonnes of finished potash products. In the past three years (2016, 2017, and 2018), the Lanigan mine accounted for 16% of total potash production at the Company over this time period. Allan is currently making a positive contribution to the Company’s potash segment.

Given the Company’s previous history (including 50 years of mining at the Lanigan operation), recent market conditions, and extensive reserve base, the economic analysis for Lanigan has met the Company’s internal hurdle rates.

³	Company potash sales data for years prior to 2018 includes only PotashCorp sales.

LOGO

Figure 29: Historic annual average realized potash price in USD / tonne⁴.

22.2

TAXES

Royalties are paid to the Province of Saskatchewan, which holds approximately half of the mineral rights in the Lanigan Crown Subsurface Mineral Lease. Royalties from non-Crown lands are paid to various freeholders of mineral rights in Saskatchewan. The crown royalty rate is 3% and is governed by The Subsurface Mineral Royalty Regulations, 2017. The actual amount paid is dependent on selling price and production tonnes.

Municipal taxes are paid based on site property values.

In addition to this, Nutrien pays federal and provincial income taxes based on corporate profits from all its operations in Canada.

⁴	Company annual average realized potash price for years prior to 2018 includes only PotashCorp sales.

23.0

ADJACENT PROPERTIES

The Company Lanigan Lease KLSA 001 C is adjacent to the following potash dispositions (Figure 30).

Producing Subsurface Mineral Leases:

•

Mosaic Potash Colonsay ULC (KL 108)

Non-producing Potash Exploration Permits and Subsurface Mineral Leases:

•

BHP Billiton Canada Inc.

•

Canada Golden Fortune Potash Corp.

For up-to-date information on Crown Potash Leases and Exploration Permits, see the Saskatchewan Mining and Petroleum GeoAtlas which is available online at the Government of Saskatchewan website.

LOGO

Figure 30: Potash properties adjacent to Lanigan Potash.

24.0

OTHER RELEVANT DATA AND INFORMATION

Not applicable.

25.0

INTERPRETATION AND CONCLUSIONS

PotashCorp has a long history of successful potash mining at Lanigan, where potash has been produced for the past 50 years. The Company believes that the experience gained mining and milling potash for this length of time has produced a reliable body of information about potash mineralization, mining and milling at Lanigan.

For Lanigan, mine life can be estimated by dividing the total Mineral Reserve (Proven + Probable) of 540 million tonnes by the average annual mining rate (million tonnes of ore hoisted per year). For Lanigan, the mining rate is defined as equal to the actual three-year running average (consecutive, most recent years). The average mining rate at Lanigan over 2016, 2017 and 2018 was 6.79 million tonnes of potash ore mined and hoisted per year.

If this mining rate is sustained and if Mineral Reserves remain unchanged, then the Lanigan mine life would be 24 years for A Zone and 56 years for B Zone, totaling 80 years.

This estimate of mine life is likely to change as mining advances further into new mining blocks, and / or if mining rates change.

26.0

RECOMMENDATIONS

Not applicable for a potash mine that has been in operation since 1968.

27.0 REFERENCES

Fuzesy, Anne (1982). Potash in Saskatchewan (44p). Saskatchewan Industry and Resources Report 181.

Gebhardt, E. (1993). Mine planning and design integration, CIM Bulletin, May 1993, pp. 41 – 49.

Government of Saskatchewan (2018). Saskatchewan Mining and Petroleum GeoAtlas. https://gisappl.saskatchewan.ca/Html5Ext/index.html?viewer=GeoAtlas. Accessed Jan 2019.

Government of Saskatchewan. The Corporation Capital Tax Act of Saskatchewan. Available online at http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/c38-1.pdf.

Government of Saskatchewan. The Mineral Taxation Act, 1983. Available online at http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/M17-1.pdf.

Government of Saskatchewan. The Subsurface Mineral Royalty Regulations, 2017. Available online at http://publications.gov.sk.ca/details.cfm?p=88223&cl=8.

Government of Saskatchewan. The Subsurface Mineral Tenure Regulations, 2015. Available online at http://www.publications.gov.sk.ca/details.cfm?p=72797.

Jones, P. R. and F. F. Prugger (1982). Underground mining in Saskatchewan potash. Mining Engineering, 34, pp. 1677 – 1683.

Nutrien Pilot Plant (2018). Personal communication on density of insoluble minerals in different ore zones.

Robertson, David S. and Associates (1976). Evaluation of Alwinsal Potash of Canada Limited. Unpublished consultant’s report to Potash Corporation of Saskatchewan Inc.

Webmineral Mineralogy Database (2014). http://webmineral.com. Accessed Jan 2018.

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Exhibit		Description of Exhibit

99.1		National Instrument 43-101 Technical Report on Cory Potash Deposit (KL 103 B), Saskatchewan, Canada, dated effective December 31, 2018

99.2		National Instrument 43-101 Technical Report on Rocanville Potash Deposit (KL 305), Saskatchewan, Canada, dated effective December 31, 2018

99.3		National Instrument 43-101 Technical Report on Allan Potash Deposit (KL 112R A), Saskatchewan, Canada, dated effective December 31, 2018

99.4		National Instrument 43-101 Technical Report on Lanigan Potash Deposit (KLSA 001 C), Saskatchewan, Canada, dated effective December 31, 2018


Average in 3.35 m (11’) mining interval (undiluted)
Drillhole	Year Drilled		% K₂O			% Water Insolubles
14-28-036-06 W3		1954		*			*
04-28-037-07 W3		1955		24.93			4.59
01-11-037-07 W3		1955		25.96			4.78
08-22-036-07 W3		1956		29.1			4.55
04-16-036-07 W3		1965		27.04			6.18
16-34-035-07 W3		1965		27.98			4.87
01-25-035-07 W3		1965		17.27			6.78
01-32-036-07 W3		1965		26.41			5.17
06-18-036-06 W3		1965		23.75			3.92
05-07-036-06 W3		1965		26.45			4.71
04-04-036-06 W3		1965		29.44	(anomalous)		4.59	(anomalous)
05-30-036-06 W3		1965		27.34			4.91
01-16-036-06 W3		1965		25.61	(anomalous)		5.71	(anomalous)
13-01-038-08 W3		1968		*			*
Average of 10 usable values:				25.62			5.05


PCS Cory 05-30-36-6 Assay Values
#	From (m)	To (m)	Interval (m)	% K₂O	% Water Insol.	% Carnallite
1	1020.78	1020.82	0.05	4.81	38.71	2.63
2	1020.82	1020.93	0.11	23.87	3.69	0.34
3	1020.93	1021.46	0.53	5.9	27.96	2.17
4	1021.46	1022.47	1.01	2.54	1.27	0.80
3.35 m (11’) Mining Interval Top of Cut 1022.47 m
5	1022.47	1022.82	0.35	16.39	3.91	0.91
6	1022.82	1022.94	0.12	2.5	19.21	1.94
7	1022.94	1023.26	0.32	22.66	14.15	1.37
8	1023.26	1023.97	0.71	30.4	2.45	1.03
9	1023.97	1024.48	0.52	33.05	4.52	0.69
10	1024.48	1024.79	0.30	32.89	0.69	0.57
11	1024.79	1025.10	0.31	35.95	2.39	0.46
12	1025.10	1025.35	0.24	34.75	2.11	0.91
13	1025.35	1025.47	0.12	18.05	14.2	1.37
14	1025.47	1025.82	0.35	21.9	2.65	0.91
3.35 m (11’) Mining Interval Base of Cut 1025.82 m
14	1025.82	1025.87	0.05	21.9	2.65	0.91
15	1025.87	1026.38	0.51	20.34	0.95	0.23
16	1026.38	1026.56	0.18	13	11.67	1.83
17	1026.56	1027.05	0.49	21.42	2.2	1.03
18	1027.05	1027.28	0.23	1	11.72	1.83
19	1027.28	1027.61	0.33	15.39	1.18	0.91
3.39m (11’) Mining Interval Weighted Average				27.44	4.95	0.93

Probable Reserve

millions of tonnes

Proven Reserve

millions of tonnes

Total A Zone Reserve =

millions of tonnes


Suite 500, 122 – 1st Avenue South Saskatoon, Saskatchewan S7K 7G3 Canada		13131 Lake Fraser Drive S.E. Calgary, Alberta T2J 7E8 Canada
(Address of principal executive offices)


Figure 1: Photo of Cory surface operations, fall, 2014.			9

Figure 2: Actual finished potash products production from the Cory mine over the past 10 years (in million tonnes per year).			11

Figure 3: Map showing location of Nutrien Operations, including Cory.			14

Figure 4: Map showing Cory Potash relative to Saskatchewan potash mineralization (pink). Also shown are Company (green) and other (purple) Crown Subsurface Mineral Leases (Saskatchewan Mining and Petroleum GeoAtlas).			16

Figure 5: Map showing Cory Crown Lease KL 103 B (blue) and the Unitization Area (green).			18

Figure 6: Map showing infrastructure (City of Saskatoon, towns, rivers, roads, and railways) near Cory Potash. Cory shaft locations are shown by red markers.			20

Figure 7: Thickness of the Prairie Evaporite Formation and area of potash distribution within these salts (from Fuzesy, 1982).			22

Figure 8: Diagrammatic vertical section showing basic layered-Earth stratigraphy in a typical Saskatchewan potash region (from Fuzesy, 1982).			23

Figure 9: Diagrammatic vertical section showing basic stratigraphy of the Prairie Evaporite Formation in the Saskatoon area (from Fuzesy, 1982).			25

Figure 10: Schematic cross-section across southern Saskatchewan of the Prairie Evaporite Formation showing relative position of potash members. At Cory, potash is mined from the Patience Lake Member, labeled “PLM” (from Fuzesy, 1982).			26

Figure 11: Potash exploration at Cory (2D & 3D surface seismic and potash exploration drillholes).			28

Figure 12: Air photo showing Cory Potash surface operations and Tailings Management Area.			29

Figure 13: Seismic section from the Cory 2007 3D seismic data volume showing relative rock velocities. Sea level (SL) is marked in metres and major geological units are labeled.			31

Figure 14: Detail of seismic section from the Cory 3D seismic data volume. Actual mine room reflection is marked in yellow. Ground surface is at approximately +500 m above Sea Level.			32


–	Latitude:	52 degrees 05 minutes 30.15 seconds North
–	Longitude:	106 degrees 51 minutes 16.32 seconds West
–	Elevation:	502.92 metres above mean Sea Level (SL)

–	Northing:	5,772,861 m
–	Easting:	372,951 m
–	Projection:	UTM
–	Datum:	NAD83
–	Zone:	13