GENSOURCE ANNOUNCES HELM AG AS OFFTAKER FOR THE TUGASKE PROJECT

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Jan 31, 2020

Gensource Potash Corporation (“Gensource” or the “Company”) (TSX-V: GSP), is extremely pleased to announce that HELM AG is the off-taker for the Tugaske project (“Tugaske” or the “Project”).

In a news release dated May 22, 2019, Gensource announced that it had completed a non-binding memorandum of understanding with a large and well-respected international fertilizer manufacturing and distribution company for the sale of 100% of the production from Tugaske. Development of the Tugaske Project has since progressed significantly and Gensource is now pleased to formally announce HELM AG and its North American subsidiary, HELM Fertilizer Corp (together, “HELM”) as its off-take partner for the Tugaske Project.

“We are very happy to announce our partnership with HELM as Tugaske’s off-taker,” commented Mike Ferguson, President & CEO of Gensource. “Helm brings a significant existing US customer base as well as substantial and growing infrastructure – terminals and storage facilities – within the US agri-business supply chain. Tugaske represents another strategic venture for HELM that is similar to previous successes it has enjoyed. It is clear to us that HELM is here for the long term and is acting strategically to support and grow its fertilizer business, and Gensource is proud to be part of that effort.”

HELM and Gensource are currently finalizing the definitive off-take agreement for Tugaske under which HELM will purchase 100% of the production from the Project for 10 years, renewable thereafter. The off-take agreement is expected to be completed in Q1 this year.

Regarding project status: The Tugaske Project is in the detailed project finance stage with a goal to reach financial commitments in late spring 2020 and have construction commence thereafter. With the debt financing due diligence activities progressing and the discussions on equity also progressing, Gensource remains focused on bringing these two critical efforts to a successful conclusion, thereby allowing the project to proceed to construction.

About HELM

HELM, founded in 1900, is a privately-owned company based in Hamburg, Germany.

HELM is one of the world’s largest chemical marketing companies and guarantees access to the world’s key markets through its specific regional knowledge and more than 100 subsidiaries, sales offices, and participation in over 30 countries. HELM AG employs 1,621 staff.

As a multifunctional marketing organization, HELM is active in the chemical industry, the crop protection industry, and the active pharmaceutical ingredients and pharmaceuticals industries as well as the fertilizer industry.

HELM’s fertilizer business unit was started in 1972 and has developed into one of the world’s largest independent global logistics and marketing networks. HELM distributes fertilizer in its core markets of Europe, North America, and Latin America. Within the US market, HELM Fertilizers is counted as one of the top five in North America in terms of its storage facilities, distribution hubs, long-term transport contracts, and end-user customer networks.

To serve the needs of the customer, HELM has recently increased its portfolio of storage facilities close to the agricultural markets in the US.

About Gensource

Gensource Potash is a fertilizer development company based in Saskatoon, Saskatchewan and is on track to become the next fertilizer production company in that province. With a small scale and environmentally leading approach to potash production, Gensource believes its technical and business model will be the future of the industry. Gensource operates under a business plan that has two key components: (1) vertical integration with the market to ensure that all production capacity built is directed, and pre-sold, to a specific market, eliminating market-side risk; and (2) technical innovation which will allow for a small and economic potash production facility, that demonstrates environmental leadership within the industry, producing no salt tailings, therefore eliminating decommissioning risk, and requiring no surface bine ponds, thereby removing the single largest negative environmental aspect of potash mining.