Resource World Magazine

Arianne Resources Inc. TICKER SYMBOL: DAN-TSXV; DRRSFOTCBB; JE9N-FSE SHARES OUTSTANDING: 75,914,926 YEAR HIGH-LOW: $1.42–$0.80 Arianne Resources Inc. is focused on developing the 100%-owned, advancedstage Lac à Paul phosphorus-titanium project located about 200 km north of the port city of Saguenay, Québec. Phosphorus is primarily used to make fertilizers, a sector with a high demand and a looming deficit. Phosphorus is also used in preservatives, in metallurgy and to make food supplements for animals. Highlights of a Pre-Feasibility Study Update (US$) include: • Measured & indicated resources remain at 348 million tonnes at 6.50% P2O5 • Additional inferred resources of 114 million tonnes at 5.46% P2O5 are not included in the study Encanto Potash Corp. TICKER SYMBOL: EPO-TSXV; ENCTF-OTCQX SHARES OUTSTANDING: 278,209,798 YEAR HIGH-LOW: $0.37–$0.14 Encanto Potash Corp., which has several potash prospects, was formed to work with First Nations to develop potash projects on their lands in southeast Saskatchewan. The company is partnering with the Muskowekwan, Ochapowace and Chacachas First Nations. The Muskowekwan First Nation potash mine project has been accepted by the federal government under the First Nations Commercial and Industrial Development Act (FNCIDA). Bernard Valcourt, Minister of Aboriginal Affairs and Northern Development, said, "The development of the first on-reserve potash mine in Canada will create employment and economic growth as well as other long-term benefits for the First Nation and M AY 2 0 1 3 • Combined Paul and Manouane zones proven and probable mineral reserves remain at 307 million tonnes, with average grade of 6.59% P2O5 and average stripping ratio of 0.83 (Cut-off grade of 2.43%P2O5) • Annual production will average 3 million tonnes of 38% P2O5 apatite concentrate with low impurities • 17-year mine life at 50,000 tonnes ore/ day production rate with average mill recovery of 90% • Average concentrate price of $175/tonne FOB rail • Cash operating cost $80/tonne concentrate mine site ($90/tonne FOB rail) • Total Direct CAPEX Cost: $583.3 million; Indirect CAPEX Cost: $136.1 million and Contingency: $94.5 million; Total Initial CAPEX: $813.9 million • Pre-tax IRR: 23.2%; Pre-tax NPV 8%: $985.1 million The phosphate deposits are expected to produce high quality igneous apatite concentrate grading about 39% P2O5 with little or no contaminant. Arianne is considering various truck and rail scenarios for shipping concentrate to Saguenay. A feasibility study will be completed this year. Discussions have begun with two local First Nation communities. Construction is planned for 2014 and production for 2016. n surrounding communities. I applaud the community and its leaders for their vision and commitment to the long-term prosperity of the Muskowekwan First Nation." First Potash Ventures, a joint partnership between Encanto and Muskowekwan Resources Ltd., is working toward developing the mine on the Muskowekwan First Nation, 100 km northeast of Regina. The mine is expected to produce up to 2.8 million tons of potash annually over more than 50 years. The project will offer training and employment opportunities during the construction and operation of the mine. Once the project is in the development stage, it is expected to generate about 1,000 construction jobs and almost 500 jobs when commercial operation is achieved. In addition, the mine is expected to generate tens of millions of dollars annually in royalties for the First Nation. Encanto is also working on the Spar Project, where a NI 43-101 report states there is an estimated total indicated resource of 12.49 million tonnes of K2O and an inferred resource of 12.24 million tonnes of K2O. There are over 180,000-acres of potash claims in the Prairie Evaporite Formation. The company is currently conducting a 2-D seismic program on the Spar property. n www.resourceworld.com 9

• Cover