EX-96.1 14 ipi123124exhibit961.htm EX-96.1

Technical Report Summary

of the

2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico

Prepared for:

Intrepid Potash–New Mexico, LLC

Revised Report Date:

February 11, 2025

Effective Date:

December 31, 2024

Prepared by:

660 Rood Avenue, Suite A

Grand Junction, Colorado 81501

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			ii

Date and Signature Page

This report titled “Technical Report Summary of the 2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico” is effective as of December 31, 2024, and was prepared and signed by RESPEC Company, LLC, acting as a Qualified Person Firm.

Signed and Dated February 11, 2025.

signed/ RESPEC Company, LLC

Susan B Patton, PE

Principal

On behalf of RESPEC Company, LLC

RESPEC

    

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			iii

Technical Report Summary

of the

2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico

Table of Contents

									Page
1.0			Executive Summary						1
1.1			Property Description and Ownership						1
1.2			Geology and Mineralization						1
1.3			Status of Exploration, Development and Operations						1
1.4			Mineral Resource Estimates						2
1.5			Mineral Reserve Estimates						3
1.6			Summary of Capital and Operating Cost Estimates						4
1.7			Economic Analysis						4
1.8			Permitting Requirements						5
1.9			Conclusions and Recommendations						5
2.0			Introduction						6
2.1			Terms of Reference						6
2.2			Sources of Information						7
2.3			Personal Inspection						7
3.0			Property Description						9
3.1			Location and Area of the Property						9
3.2			Mineral Rights						9
3.3			Significant Encumbrances						9
3.4			Significant Factors						14
4.0			Accessibility						15
4.1			Topography, Elevation, and Vegetation						15
4.2			Property Access						15
4.3			Climate						15
4.4			Infrastructure Availability						16
5.0			History						18

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6.0			Geologic Setting						20
6.1			Deposit Type						20
6.2			Regional Geology						20
6.3			Property Geology						23
			6.3.1			East Mine			23
			6.3.2			West Mine			23
			6.3.3			North Mine			24
			6.3.4			HB Solar Solution Mine			26
6.4			Mineralization						26
6.5			Geologic Structure						28
7.0			Exploration						29
7.1			Exploration Other than Drilling						29
7.2			Drilling Exploration						29
7.3			Characterization of Hydrogeology Data						31
7.4			Characterization of Geotechnical Data						31
8.0			Sample Preparation						32
9.0			Data Verification						33
9.1			Data Verification Procedure						33
9.2			Limitations on Verification						33
9.3			Adequacy of the Data						33
10.0			Mineral Processing and Metallurgical Testing						34
10.1			Adequacy of the Data						34
11.0			Mineral Resource Estimates						35
11.1			Key Assumptions, Parameters and Methods						36
11.2			Mineral Resource Estimate						49
11.3			Discussion of Future Work						50
12.0			Mineral Reserve Estimates						51
12.1			Key Assumptions, Parameters, and Methods						51
12.2			Mineral Reserves Estimate						52
12.3			Risk Factors						53
13.0			Mining Methods						55

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14.0			Processing and Recovery Methods						59
14.1			HB Processing Facility						59
14.2			Langbeinite Processing Facility						63
14.3			North Compaction Plant						63
14.4			Tailings Facilities						64
15.0			Infrastructure						70
16.0			Market Studies						72
17.0			Environmental Studies, Permitting, and Plans						73
17.1			Environmental Studies						73
17.2			Waste and Tailings Disposal, Site Monitoring, and Water Management During and After Mine Closure						73
17.3			Permitting Status and Reclamation Bonds						73
17.4			Agreements with Local Individuals						73
17.5			Closure Plans						75
17.6			Adequacy of Current Plans and Compliance						75
18.0			Capital and Operating Costs						76
18.1			Capital Cost Estimate						76
18.2			Operating Cost Estimate						76
18.3			Accuracy Discussion						76
19.0			Economic Analysis						78
19.1			Key Assumptions, Parameters, and Methods						79
19.2			Economic Analysis						79
19.3			Sensitivity Analysis						79
20.0			Adjacent Properties						86
21.0			Other Relevant Data and Information						87
22.0			Interpretation and Conclusions						88
23.0			Recommendations						89
24.0			References						90
25.0			Reliance on Information						95

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List of Tables

						Page
Table 1-1.			Mineral Resource Estimate Summary effective December 31, 2024			2
Table 1-2.			Mineral Resource Estimate Summary effective December 31, 2024			3
Table 1-3.			IPNM Mineral Reserve Estimate Summary effective December 31, 2024			4
Table 2-1.			Summary of Reserve Reports			8
Table 3-1.			Property Lease Details			12
Table 5-1.			Mine Ownership History			19
Table 6-1.			The Potash Zones in the McNutt Potash Member			22
Table 6-2.			Carlsbad Area Minerals and Their Compositions			27
Table 7-1.			Data Sample Sets—All Available Holes			29
Table 7-2.			Data Sample Sets—Resource Evaluation Dataset			31
Table 11-1.			Parameter Assumptions			36
Table 11-2.			Cost of Goods Sold and Sales Price Assumptions			37
Table 11-3.			Cutoff Grade Analysis for Mechanical Mining			38
Table 11-4.			Mineral Resource Estimate Summary effective December 31, 2024			49
Table 11-5.			Mineral Resource Estimate Summary effective December 31, 2024			50
Table 12-1.			Product Sales Price (Reserves)			51
Table 12-2.			Cutoff for Solution Mined Reserves			52
Table 12-3.			Mineral Reserve Estimate effective December 31, 2024			53
Table 13-1.			IPNM 25-Year Mine Plan			58
Table 17-1.			Permitting Status			74
Table 18-1.			Major Remediation and Capital Cost Estimate			77
Table 18-2.			Unit Mining Cost			78
Table 19-1.			Economic Analysis Assumptions			79
Table 19-2.			Estimated Pre-Tax Cash Flow			80
Table 19-3.			Estimated After-Tax Cash Flow			81
Table 19-4.			NPV Pre-Tax Cash Estimate			84
Table 19-5.			NPV After-Tax Estimate			84

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			vii

List of Figures

						Page
Figure 3-1.			Location Map for the IPNM HB, East, West, and North Mines near Carlsbad, New Mexico			10
Figure 3-2.			Location Map Depicting the Secretary’s Order for the Potash Area			11
Figure 4-1.			Mine Locations showing Property Access			17
Figure 6-1.			Carlsbad Potash District Regional Cross Section (Lewis 2007)			25
Figure 6-2.			Typical Stratigraphic Column of the Ochoan (Warren 2018)			26
Figure 11-1.			10th Ore Zone Mineral Resources, Sylvinite Ore			39
Figure 11-2.			8th Ore Zone Mineral Resources, Sylvinite Ore			40
Figure 11-3.			7th Ore Zone Mineral Resources, Sylvinite Ore			41
Figure 11-4.			5th Ore Zone Mineral Resources, Sylvinite Ore			42
Figure 11-5.			4th Ore Zone Mineral Resources, Sylvinite Ore			43
Figure 11-6.			3rd Ore Zone Mineral Resources, Sylvinite Ore			44
Figure 11-7.			1st Ore Zone Mineral Resources, Sylvinite Ore			45
Figure 11-8.			5th Ore Zone Mineral Resources, Langbeinite Ore			48
Figure 11-9.			4th Ore Zone Mineral Resources, Langbeinite Ore			47
Figure 11-10.			3rd Ore Zone Mineral Resources, Langbeinite Ore			48
Figure 12-1.			1st Ore Zone Mineral Reserves, Sylvinite Ore			54
Figure 13-1.			Underground and Solution Mining Extents			57
Figure 14-1.			HB Evaporation Ponds			61
Figure 14-2.			HB Process Flow Diagram			62
Figure 14-3.			East Plant Process Simplified Flow Diagram			65
Figure 14-4.			North Plant Simplified Process Flow Diagram			66
Figure 14-5.			East Tailings Storage Facility			67
Figure 14-6.			West Tailings Storage Facility (HB Brine Recirculation)			68
Figure 14-7.			North Tailings Storage Facility (inactive)			69
Figure 15-1.			Layout of the Infrastructure			71
Figure 19-1.			Estimated Pre-Tax Cash Flow			82
Figure 19-2.			Estimated After-Tax Cash Flow			83
Figure 19-3.			Pre-Tax NPV Sensitivity to Price and Costs			84
Figure 19-4.			After-Tax NPV Sensitivity to Price and Costs			85

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			viii

List of Abbreviations

°			degree
%			percent
AMAX			AMAX/Horizon Mine
APR			Annual Percentage Rate
BLM			United States Bureau of Land Management
BNSF			Burlington Northern Santa Fe
CFR			Code of Federal Regulations
CL			Competitive Lease
COGS			cost of goods sold
CPD			Carlsbad Potash District
DMS			dense media separation
DOI			United States Department of Interior
EA			Environmental Audit
EIS			Environmental Impact Statement
EOY			end of year
F			Fahrenheit
FR			Federal Register
ft			feet or foot
ft3			cubic foot
ft%			feet-percent
g			grams
g/cm3			grams per cubic centimeter
gpm			gallons per minute
GT			grade thickness
hp			horsepower
ID2			inverse distance squared
Intrepid			Intrepid Potash, Inc.
IPNM			Intrepid Potash–New Mexico, LLC
K2O			potassium oxide
K2SO4 ·2MgSO4			langbeinite
KCl			sylvite or potassium chloride
KPLA			Known Potash Leasing Area
LOM			Life-of-Mine
NMED			New Mexico Environmental Department
M			million

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			ix

MOP			Muriate of Potash
MSHA			Mine Safety and Health Administration
msl			mean sea level
mm			millimeter
Mt			million tons
Mtpy			million tons per year
NaCl			halite
NCL			Non-Competitive Lease
NPV			Net Present Value
NAD			North American Datum
OSHA			Occupational Safety and Health Administration
PFD			process flow diagrams
PRL			Preference Rights Lease
QP			Qualified Person
RC			reflux classifier
REC			Recognized Environmental Concerns
RESPEC			RESPEC Company LLC
SEC			United States Securities Exchange Commission
SME			Society for Mining, Metallurgy & Exploration
SOE			statement of earnings
SOP			standard operating procedure
t			ton
TOC			Total Organic Carbon
tph			tons per hour
tpy			tons per year
TSF			Tailings Storage Facility
US			United States
USGS			United States Geological Survey
WIPP			Waste Isolation Pilot Plant
XRD			X-ray Diffraction

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			1

1.0Executive Summary

RESPEC Company, LLC. was commissioned by Intrepid Potash, Inc. (Intrepid) to prepare the 2024 Technical Report Summary (TRS) filed as Exhibit 96.1 with the Intrepid Potash 10-K for End of Year (EOY) 2024 for the Intrepid Potash-New Mexico (IPNM) property. See Table 2-1 for previous TRS filings for the property. This report updates resource and reserve tables and updates the cash flow and economic analysis to reflect the change in mine plan for the sylvinite deposit and lease boundary adjustments. The resources and reserves are estimated according to United States (US) Securities and Exchange Commission (SEC) S-K 1300 regulations.

1.1Property Description and Ownership

The property includes two operating mines, the East Underground mine and the HB Solar Solution Mines (HB Mine), the idled West Mine, and the North Mine which was shut down in the early 1980’s. The property is located in Eddy and Lea Counties, near Carlsbad, New Mexico.

The East Plant processes the underground room-and-pillar-mined langbeinite ore into Trio®. The long-term underground mining plan is undecided and therefore previously reported reserves have been reestablished as resources. The HB Plant produces Muriate of Potash (MOP) from the solution mine brine. Solution mining of the 1st and 3rd ore zones in previously mined-out areas of the property is planned to continue long term.

1.2Geology and Mineralization

The geology of the potash-bearing beds of the Carlsbad area has been well documented. Overall, the potash-bearing beds may be described as bedded sedimentary rocks, deposited across the Delaware Basin and Northwest Shelf backreef from the Capitan Reef.

1.3Status of Exploration, Development and Operations

The property has been in continuous operation by IPNM since 2004. Confirmation drilling, channel sampling, and mine development are an integral part of the mine operations.

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1.4Mineral Resource Estimates

The resource model created from the database of exploration and sampling data served as the basis for the mineral resource estimate. The sampling data includes channel samples from the active mining horizon. The resources reported as mineralized rock in place, exclusive of mineral reserves effective December 31, 2024, are shown in Table 1-1 and Table 1-2.

Table 1-1.    Mineral Resource Estimate Summary effective December 31, 2024

IPNM - Summary of Mineral Resources in millions of tons of Sylvinite in Place effective December 31, 2024, based on $450/Product Ton Mine Site
			Resources
			Sylvinite1			Grade			Contained K2O			Mining Cutoff2			Processing Recovery
			(Mt)			(%K2O)			(Mt)			(ft-%K2O)			(%)
Measured Mineral Resources			288			16			45			54-64			75-85
Indicated Mineral Resources			164			14			24			54-64			75-85
Measured + Indicated Mineral Resources			452			15			69
Inferred Mineral Resources

1Sylvinite is a mixed evaporite containing NaCl and KCl.

2Solution mining resource cutoff for flooded old working is the mining extents boundary.

Mineral Resources were prepared by RESPEC, a qualified firm for the estimate and independent of Intrepid Potash, for EOY 2024.

Mineral Resources are reported exclusive of Mineral Reserves, on a 100% basis.

Mt = million tons, % = percentage, K2O = potassium oxide, ft = feet

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			3

Table 1-2.    Mineral Resource Estimate Summary effective December 31, 2024

IPNM - Summary of Mineral Resources in millions of tons of Langbeinite Mineralized Rock in Place effective December 31, 2024 based on $470/Product Ton Mine Site
			Resources
			Langbeinite Mineralized Rock			Grade			Contained K2O			Mining Cutoff			Processing Recovery
			(Mt)			(%K2O)			(Mt)			(ft-%K2O)			(%)
Measured Mineral Resources			67			10			6			25			68
Indicated Mineral Resources			59			10			6			25			68
Measured + Indicated Mineral Resources			126			10			12
Inferred Mineral Resources
Mineral Resources were prepared by RESPEC, a qualified firm for the estimate and independent of Intrepid Potash, for EOY 2024.
Mineral Resources are reported exclusive of Mineral Reserves, on a 100% basis.
Mt = million tons, % = percentage, K2O = potassium oxide, ft = feet

1.5Mineral Reserve Estimates

Using the mineral resource grids, applying a reserve cut-off and modifying factors to a 25-year detailed mine plan reserves for the HB mine were estimated. Table 1-3 shows the estimated reserve summaries in product tons effective December 31, 2024.

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			4

Table 1-3.    IPNM Mineral Reserve Estimate Summary effective December 31, 2024

IPNM - Summary of Potash Mineral Reserves effective December 31, 2024 based on $360/Product Ton Mine Site

Reserves

In-Place KCl

In-Situ Grade1

Product2

Brine Cutoff Grade3

Processing Recovery

(Mt)

(%K2O)

(Mt)

(%K2O)

(%)

Proven Mineral Reserves

5.3

22.9

3.4

2.9

83

Probable Mineral Reserves

Total Mineral Reserves

5.3

22.9

3.4

1In-situ grade is the amount of K2O in the contact area of the caverns and is used to calculate the In-Place KCl.

2Product is calculated by multiplying In-Place KCl by: dissolution factor of 96%, areal recovery of 100%, geologic factor of 94.2%, plant recovery of 83%, cavern loss factor of 98%, a product purity factor of 103%, a bitterns loss factor of 88% and handling loss factor of 97%.

3Brine cutoff grade is the amount of K2O in the extracted brine necessary to cover the cash costs of production.

Mineral Reserves were prepared by RESPEC, a qualified firm for the estimate and independent of Intrepid Potash, for EOY 2024.

Mineral Reserves are reported exclusive of Mineral Resources, on a 100% basis.

Mt = million tons, % = percent, K2O = potassium oxide, ft = feet

1.6Summary of Capital and Operating Cost Estimates

Operating cash cost per ton of product is estimated from actual operating data to average $260 with a credit for by-product sales of $57/ton resulting in a net operating cost per ton of product of $203.

Capital investment necessary to complete the HB 25-year mine plan includes pipeline upgrades, and well infrastructure to bring the AMAX/Horizon Mine (AMAX) into solution mining production. Capital is introduced in Year 25 for reclamation requirements if mining were to end in the 25th year. This investment is in addition to the sustaining capital requirements.

1.7Economic Analysis

The Net Present Value (NPV) at 8% Annual Percentage Rate (APR) for the before- and after-tax estimated cash flow is positive. The sensitivity to product price and operating cost for an 8% APR was evaluated. Varying costs and sales price plus and minus 10% results in a positive NPV for all options.

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			5

1.8Permitting Requirements

The mines are in operation and necessary state and federal operating permits are in place for current operations. IPNM has timely applied for new permits and permit renewals necessary to continue operations, which are being reviewed by regulatory agencies.

1.9Conclusions and Recommendations

The QP recommends that IPNM continue planning for the challenges in solution mining with the presence of low levels of carnallite. No additional exploration work is recommended beyond the ongoing confirmation drilling.

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2.0Introduction

This document was prepared to report the IPNM mineral resources in terms of in-situ tons and reserves in terms of saleable product at IPNM under the SEC S-K 1300 rules (2018). The Society for Mining, Metallurgy & Exploration (SME) Guide for Reporting Exploration Information, Mineral Resources and Mineral Reserves (SME 2017) (The SME Guide) supplements the modifying factors used to convert mineral resources to mineral reserves. Previous TRS’s filed for the property are listed in Table 2-1.

2.1Terms of Reference

According to 17 Code of Federal Regulations (CFR) § 229.1300 (2025), the following definitions are included for reference:

An inferred mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an inferred mineral resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an inferred mineral resource has the lowest level of geological confidence of all mineral resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an inferred mineral resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a mineral reserve.

An indicated mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an indicated mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an indicated mineral resource has a lower level of confidence than the level of confidence of a measured mineral resource, an indicated mineral resource may only be converted to a probable mineral reserve.

A measured mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a measured mineral resource is sufficient to allow a qualified person to apply modifying factors, as defined in this section, in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a measured mineral resource has a higher

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			7

level of confidence than the level of confidence of either an indicated mineral resource or an inferred mineral resource, a measured mineral resource may be converted to a proven mineral reserve or to a probable mineral reserve.

Modifying factors are the factors that a qualified person must apply to indicated and measured mineral resources and then evaluate in order to establish the economic viability of mineral reserves. A qualified person must apply and evaluate modifying factors to convert measured and indicated mineral resources to proven and probable mineral reserves. These factors include but are not restricted to mining; processing; metallurgical; infrastructure; economic; marketing; legal; environmental compliance; plans, negotiations, or agreements with local individuals or groups; and governmental factors. A probable mineral reserve is the economically mineable part of an indicated and, in some cases, a measured mineral resource.

A proven mineral reserve is the economically mineable part of a measured mineral resource.

Throughout this report, reserves are presented in tons of K2O and potassium chloride (KCl). Historically, assay data have been reported in terms of %K2O and reserves in equivalent tons of K2O. Sylvite is KCl and, in many historical reports, reserve tons or product tons are recorded in terms of tons of KCl. Pure KCl equates to 63.17% K2O by mass. To convert tonnages from K2O to KCl, multiply by 1.583.

2.2Sources of Information

Previously completed reserve estimations under SEC Guide 7 (2008) rules for this property and TRS’s reporting mineral resources and mineral reserves under the SEC S-K 1300 rules are listed in Table 2-1.

2.3Personal Inspection

Personal inspection of the properties has occurred over the years by the QP. The most recent inspection of the property took place on November 6 and 7, 2019. The inspection included an underground and surface visit to the East, West, and HB Mines.

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Table 2-1.    Summary of Reserve Reports

Effective EOY			Title			Notes			Reference
2006			Determination of Reserves for IPNM of the Carlsbad East and West Mines			Included North Mine reserves hoisted through the West Mine Facilities.			Agapito 2007
2007			Determination of Estimated Proven and Probable Reserves for the Planned HB Solution Mine for Intrepid Mining, LLC						Agapito 2008
2008			Reserve Update for the Carlsbad HB, East and West Mines for Intrepid Potash, Inc.						Agapito 2009
2009			Determination of Estimated Proven and Probable Reserves at Intrepid Potash–New Mexico, LLC						Agapito 2010
2010			Determination of Estimated Proven and Probable Reserves at Intrepid Potash–New Mexico, LLC			AAI updated the reserve estimate by adjusting for the mined-out areas of the LOMP.			Agapito 2011
2011			Determination of Estimated Proven and Probable Reserves at Intrepid Potash–New Mexico, LLC			Reserve estimate as of EOY 2011 based on depletion by extraction of the IPNM’s LOMP.			Agapito 2012
2012			Determination of Estimated Proven and Probable Reserves at Intrepid Potash–New Mexico, LLC			New deposit information, lease boundaries, and an updated LOMP were incorporated into the reserve estimate.			Agapito 2013
2013			Determination of Estimated Proven and Probable Reserves at Intrepid Potash–New Mexico, LLC			EOY 2012 estimate was updated to account for depletion by extraction for 2013.			Agapito 2014
2014			Determination of Estimated Proven and Probable Reserves at Intrepid Potash–New Mexico, LLC			EOY 2012 estimate was updated to account for depletion by extraction for the 2013 and 2014 reserve estimate.			Agapito 2015
2015			End-of-Year 2015 Intrepid Potash, Inc. Reserve for the Carlsbad HB Solar Solution, East and West Mines Intrepid Potash–New Mexico, LLC			Updated lease maps, geologic database as of June 24, 2015, monthly lease reports, production maps, planning maps, and financial documents including sales and costs associated with the HB Solar Solution, West, and East Mines.			Agapito 2016
2016			End-of-Year 2016 Intrepid Potash, Inc. Reserve for the Carlsbad HB Solar Solution, East and West Mines Intrepid Potash–New Mexico, LLC			Depletion by extraction in the 1st, 3rd, 5th, and 7th ore zones from the 2015 EOY.			Agapito 2017
2017			End-of-Year 2017 Intrepid Potash, Inc. Reserve for the Carlsbad HB Solar Solution, East and West Mines			Conventional extraction of langbeinite at the IPNM East Mine 5th ore zone and solution extraction in the 1st and 3rd ore zones at the IPNM HB Solar Solution Mine with updated economic cutoff grades and drill island impacts.			Agapito 2018
2018			2018 Determination of Estimated Proven and Probable Reserves for the Carlsbad HB Solar Solution, East and West Mines			Updated lease maps, geologic database as of July 7, 2018, monthly lease reports, production maps, planning maps, and financial documents including sales and costs associated with the IPNM HB Solar Solution, West, and East Mines.			Agapito 2019
2019			2019 Determination of Estimated Proven and Probable Reserves for the Carlsbad HB Solar Solution, East and West Mines			Extraction, cutoff changes due to economic parameters, new exploration and channel sample data, drill islands, and financial data.			Agapito 2020
2020			2020 Determination of Estimated Proven and Probable Reserves for the Carlsbad HB Solar Solution, East and West Mines			Depletion by extraction in the 1st, 3rd, 5th, and 7th ore zones 2020 EOY.			Agapito 2021
2021			Technical Report Summary, 2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico			Resources and reserves for all applicable zones EOY 2021			Agapito 2022
2021			Technical Report Summary, REVISED 2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico			Added clarification to resource and reserve estimation methodology, added detail to the operating cost and cash flow methodology			RESPEC 2023
2023			Technical Report Summary of the 2023 Estimated Resources and Reserves at Intrepid Potash-New Mexico			Updated resources and reserves, and economics for new HB mine plan and depletion by extraction and lease modifications.			RESPEC 2024

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3.0Property Description

3.1Location and Area of the Property

The IPNM Carlsbad HB Solar Solution, East, West, and North Mines are located in southeastern New Mexico in Eddy and Lea Counties in the Carlsbad Potash District (CPD), as shown in Figure 3-1. The location is further defined by the boundary of the Known Potash Leasing Area (KPLA) as shown in Figure 3-2. This United States Bureau of Land Management (BLM) managed area consists of that part of the district where the co-development guidelines for oil and gas and potash are in effect for federal lands under the Secretary’s Order 3324 dated December 4, 2012 (Federal Register [FR] 2012-29393). This order revises and supersedes the Order of the Secretary of the Interior, dated October 28, 1986 (51 FR 39425), and corrected on August 26, 1987 (52 FR 32171). The 2012 Secretary’s Order does not alter the boundaries of the area. The area also contains state lands that are managed by the state under the New Mexico Oil Conservation Division Order R-111-Q (State of New Mexico Energy, Mineral, and Natural Resources). In general, the stated objective of the Secretary’s Order and R-111-Q is to prevent waste of petroleum and mineral resources and maximize the economic recovery of oil, gas, and potash minerals in the area.

3.2Mineral Rights

IPNM controls the right to mine approximately 127,000 acres in New Mexico. Of that acreage, 21,000 acres are leased from the State of New Mexico, 106,000 acres are leased from the United States government through the BLM, and 300 acres of mineral rights are leased from private owners. IPNM owns 4,700 surface acres near the mine site, adjacent to the federal and state mining leases. Most mining operations are on properties leased from the state or the federal government. These leases generally contain stipulations that require IPNM to commence mining operations within a specified term and continue mining to retain the lease. The stipulations on IPNM leases are subject to periodic readjustment by the applicable state government and the federal government. Federal leases are for indefinite terms subject to readjustment of the lease stipulations, including the royalty payable to the federal government, every 20 years. Leases with the State of New Mexico are issued for terms of 10 years and for as long thereafter as potash is produced in commercial quantities and are subject to readjustment of the lease stipulations, including the royalty payable to the state. Table 3-1 lists the leases and the terms.

3.3Significant Encumbrances

The IPNM properties are pledged as collateral for Intrepid’s revolving credit facility Various reclamation bonds totaling $4.057 million are in place as of December 31, 2024.

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			10

Figure 3-1.    Location Map for the IPNM HB, East, West, and North Mines near Carlsbad, New Mexico

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			11

Figure 3-2.    Location Map Depicting the Secretary’s Order for the Potash Area

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Table 3-1.    Property Lease Details

Federal Land Lease Number

Lease Type

Mine

Date

Royalty Rate

Acres (BLM)

Readjustment Due

Amount Paid

Date Paid

NMNM 029268401

Potassium PRL

East

1966

2,546

12/1/2026

$10,184.00

12/18/2024

NMNM 012181001

Potassium PRL

HB

1965

5% Leased Deposits

640

1/1/2045

$2,560.00

12/18/2024

NMNM 005728701

Potassium PRL

East

1963

2,461

1/1/2044

$9,848.00

12/18/2024

NMNM 002362301

Potassium PRL

HB

1962

5% Leased Deposits

400

2/1/2042

$1,600.00

12/18/2024

NMNM 001654001

Potassium PRL

West

1960

120

4/1/2040

$480.00

12/18/2024

NMNM 001474201

Potassium PRL

East

1963

640

8/1/2043

$2,560.00

12/18/2024

NMNM 000685901

Potassium PRL

East

1953

2,554

10/26/2033

$10,220.00

12/18/2024

NMNM 000610101

Potassium PRL

West

1958

1,200

2/1/2038

$4,800.00

12/18/2024

NMNM 0554864

Potassium PRL

East

1953

1,250

2/24/2033

$5,004.00

12/18/2024

NMNM 0554863

Potassium PRL

East

1953

200

2/24/2033

$800.00

12/18/2024

NMNM 0554862

Pot Fringe Acre NCL

East

1953

480

2/24/2033

$1,920.00

12/18/2024

NMNM 0220116

Potassium CL

HB

1961

5% Leased Deposits

2,552

12/1/2041

$10,208.00

12/18/2024

NMNM 0184150

Potassium PRL

West

1949

240

11/30/2029

$960.00

12/18/2024

NMNM 0184149

Potassium PRL

West

1955

80

1/1/2035

$320.00

12/18/2024

NMNM 0135065

Pot Fringe Acre NCL

HB

1961

5%+1cent mrt

200

6/1/2041

$800.00

12/18/2024

NMNM 131012

Pot Fringe Acre NCL

East

2016

1,320

3/1/2036

$5,280.00

12/18/2024

NMNM 131011

Pot Fringe Acre NCL

East

2016

2,000

3/1/2036

$8,000.00

12/18/2024

NMNM 131010

Pot Fringe Acre NCL

East

2016

1,280

3/1/2036

$5,120.00

12/18/2024

NMNM 120103

Pot Fringe Acre NCL

East

2012

1,920

10/1/2032

$7,680.00

12/18/2024

NMNM 120102

Pot Fringe Acre NCL

West

2012

1,560

10/1/2032

$6,240.00

12/18/2024

NMNM 120101

Pot Fringe Acre NCL

East

2012

2,240

10/1/2032

$8,960.00

12/18/2024

NMNM 118970

Potassium CL

East

2008

320

1/1/2028

$1,280.00

12/18/2024

NMNM 118969

Potassium CL

East

2008

320

1/1/2028

$1,280.00

12/18/2024

NMNM 113457

Pot Fringe Acre NCL

HB

2012

5% Leased Deposits

560

10/1/2032

$2,240.00

12/18/2024

NMNM 113456

Pot Fringe Acre NCL

HB

2012

5% Leased Deposits

2,480

10/1/2032

$9,920.00

12/18/2024

NMNM 113455

Pot Fringe Acre NCL

HB

2012

5% Leased Deposits

2,401

10/1/2032

$9,604.00

12/18/2024

NMNM 112199

Pot Fringe Acre NCL

HB

2007

Sliding Scale (POT); 5% Lang

434

2/1/2027

$1,740.00

12/18/2024

NMNM 110949

Pot Fringe Acre NCL

East

2004

1,918

12/1/2044

$7,672.00

12/18/2024

NMNM 0088285

Pot Fringe Acre NCL

HB

1960

5%+1cent mrt

120

8/1/2040

$480.00

12/18/2024

NMNM 080707

Pot Fringe Acre NCL

East

1963

2,520

8/1/2043

$10,080.00

12/18/2024

NMNM 0070607

Pot Fringe Acre NCL

West

1960

552

2/1/2040

$2,208.00

12/18/2024

NMNM 0063880

Pot Fringe Acre NCL

West

1959

120

7/1/2039

$480.00

12/18/2024

NMNM 054619

Pot Fringe Acre NCL

East

1983

2,092

3/1/2043

$8,368.00

12/18/2024

NMNM 0050249A

Potassium PRL

HB

1963

5% Leased Deposits

920

9/1/2043

$3,680.00

12/18/2024

NMNM 047021

Pot Fringe Acre NCL

East

1982

1,105

7/1/2042

$4,424.00

12/18/2024

NMNM 0045410

Potassium PRL

East

1958

2,438

6/1/2038

$9,756.00

12/18/2024

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			13

Federal Land Lease Number

Lease Type

Mine

Date

Royalty Rate

Acres (BLM)

Readjustment Due

Amount Paid

Date Paid

NMNM 041639

Pot Fringe Acre NCL

East

1981

120

7/1/2041

$480

12/18/2024

NMNM 040362

Pot Fringe Acre NCL

East

1980

280

12/1/2040

$1,120

12/18/2024

NMNM 040071

Potassium CL

North

1980

2,080

5/1/2040

$8,320

12/18/2024

NMNM 0036791

Potassium CL

HB

1957

5% Leased Deposits

1,840

10/1/1037

$7,360

12/18/2024

NMNM 0035383

Potassium CL

East

1957

2,400

1/1/2038

$9,600

12/18/2024

NMNM 0033696A

Potassium PRL

East

1957

1,241

3/1/2038

$4,964

12/18/2024

NMNM 0033696

Potassium PRL

West

1958

960

3/1/2038

$3,840

12/18/2024

NMNM 028916

Pot Fringe Acre NCL

West

1963

880

8/1/2043

$3,520

12/18/2024

NMNM 028915

Potassium PRL

East

1958

118

6/1/2038

$472

12/18/2024

NMNM 025234

Potassium PRL

West

1949

80

11/30/2029

$320

12/18/2024

NMNM 025233

Potassium PRL

West

1952

1,600

1/2/2032

$6,400

12/18/2024

NMNM 025232

Potassium PRL

West

1951

1,600

7/6/2031

$6,400

12/18/2024

NMNM 024522

Pot Fringe Acre NCL

West

1982

800

3/1/2042

$3,200

12/18/2024

NMNM 018417

Pot Fringe Acre NCL

East

1952

160

1/9/2032

$640

12/18/2024

NMNM 0015064C

Potassium PRL

East

1953

1,049

10/25/2033

$4,200

12/18/2024

NMNM 0015064B

Potassium PRL

East

1953

1,280

10/26/2033

$5,120

12/18/2024

NMNM 0015064A

Potassium PRL

East

1953

1,600

10/26/2033

$6,400

12/18/2024

NMNM 013933

Pot Fringe Acre NCL

HB

1971

5% Leased Deposits

80

10/1/2031

$320

12/18/2024

NMNM 013932

Pot Fringe Acre NCL

West

1974

640

11/1/2034

$2,560

12/18/2024

NMNM 012763

Pot Fringe Acre NCL

HB

1971

5% Leased Deposits

160

6/1/2031

$640

12/18/2024

NMNM 0011777

Pot Fringe Acre NCL

North

1952

1% ORRI

1,118

1/9/2032

$4,472

12/18/2024

NMNM 0011776

Pot Fringe Acre NCL

North

1952

1% ORRI

2,559

1/9/2032

$10,240

12/18/2024

NMNM 0007005

Potassium PRL

West

1952

2,073

1/2/2032

$8,296

12/18/2024

NMNM 0003468

Pot Fringe Acre NCL

West

1958

960

7/1/2038

$3,840

12/18/2024

NMLC 007186801

Potassium PRL

East

1955

1,938

9/1/2035

$7,756

12/18/2024

NMLC 007014101

Potassium PRL

HB

1959

5%+1cent mrt

439

1/1/2039

$1,756

12/18/2024

NMLC 006839701

Potassium PRL

North

1952

1% ORRI

1,920

1/9/2032

$7,680

12/18/2024

NMLC 006602601

Potassium PRL

HB

1955

5% + 1cent mrt

200

9/1/2035

$800

12/18/2024

NMLC 006569301

Potassium PRL

West

1958

560

2/1/2038

$2,240

12/18/2024

NMLC 006556601

Potassium PRL

HB

1951

5% Leased Deposits; 1.0987% ORRI

720

9/28/2031

$2,880

12/18/2024

NMLC 006528601

Potassium PRL

North

1952

1% ORRI

2,554

1/9/2032

$10,216

12/18/2024

NMLC 006527501

Potassium PRL

North

1952

1% ORRI

2,551

1/9/2032

$10,204

12/18/2024

NMLC 006508101

Potassium PRL

HB

1950

Sliding Scale (POT); 1.0987% ORRI

560

12/6/2030

$2,240

12/18/2024

NMLC 006184701

Potassium PRL

West

1951

1.0987% ORRI

1,275

7/6/2031

$5,104

12/18/2024

NMLC 0050063F

Potassium PRL

HB

1939

5% Leased Deposits; 1.0987% ORRI

2,358

4/15/2039

$9,436

12/18/2024

NMLC 0050063B

Potassium PRL

HB

1939

5% Leased Deposits; 1.0987% ORRI

2,560

4/15/2039

$10,240

12/18/2024

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			14

Federal Land Lease Number

Lease Type

Mine

Date

Royalty Rate

Acres (BLM)

Readjustment Due

Amount Paid

Date Paid

NMLC 0046729D

Pot Fringe Acre NCL

HB

1933

5% Leased Deposits; 1.0987% ORRI

2,560

1/18/2033

$10,240

12/18/2024

NMLC 0046729C

Pot Fringe Acre NCL

HB

1933

5% Leased Deposits; 1.0987% ORRI

2,280

1/18/2033

$9,120

12/18/2024

NMLC 0046729A

Pot Fringe Acre NCL

HB

1933

5% Leased Deposits; 1.0987% ORRI

2,559

1/18/2033

$10,236

12/18/2024

NMLC 0044752

Pot Fringe Acre NCL

HB

1956

5% Lang

240

9/1/2036

$960

12/18/2024

NMLC 0043636C

Pot Fringe Acre NCL

West

1932

920

6/20/2032

$3,680

12/18/2024

NMLC 0043636B

Pot Fringe Acre NCL

West

1932

2,312

6/20/2032

$9,248

12/18/2024

NMLC 0043636A

Pot Fringe Acre NCL

West

1932

1,044

6/20/2032

$4,180

12/18/2024

NMLC 0036092C

Pot Fringe Acre NCL

West

1929

2,559

11/21/2029

$10,240

12/18/2024

NMLC 0036092B

Pot Fringe Acre NCL

West

1929

2,026

11/21/2029

$8,104

12/18/2024

NMLC 0036092A

Pot Fringe Acre NCL

West

1929

2,437

11/21/2029

$9,748

12/18/2024

State of New Mexico Land Lease Number

Lease Type

Issue Date

Acres (State)

Amount Paid

Date Paid

HP00050001

Potash

2005

3,200

HBP

$3,200

5/23/2024

M006510011

Potash

1936

17,486

HBP

$1,749

1/21/2024

NOTE—Coordinate System: Shifted from North American Datum (NAD) 27 New Mexico State Plane North to Local Mine Grid

PRL = Preference Rights Lease; CL = Competitive Lease; NCL = Non-Competitive Lease

3.4Significant Factors

There are no significant factors or risks that may affect access, title, or the right or ability to perform work on the property.

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			15

4.0Accessibility

4.1Topography, Elevation, and Vegetation

The topography is explained in the HB Mine Environmental Impact Statement (EIS) (United States Department of Interior [DOI] 2012) as a karst topography with sinkholes, caves, and enclosed depressions. The topography is the result of the dissolution of evaporite deposits in the subsurface. The vegetation cover in the permit area is typical of the Pecos Valley on the eastern edge of the Guadalupe Mountains. The area is dominated by desert scrub, mesquite upland scrub, and grasslands (DOI 2012). The mines are located at an approximate surface elevation of 3,500-ft mean sea level (msl).

4.2Property Access

The mining facilities are accessible by both road and rail as shown in Figure 4-1. Adequate infrastructure is in place to meet production requirements. Shipment of product is by truck and rail via paved United States Highway 180-W and the Burlington Northern Santa Fe (BNSF) rail link. The area is served by small air carriers at the Cavern City Terminal located in Carlsbad, New Mexico. Airports are located in Midland, Texas and El Paso, Texas, approximately 125 and 200 miles from the property, respectively.

4.3Climate

The climate is generally mild with an average temperature of 62.4 degrees Fahrenheit (°F). The precipitation, as rainfall during the monsoon season from May to September, averages 13.4 inches. Average annual snowfall is 3 inches (US Climate Data 2020). The weather is favorable to conducting solar evaporation. Operations continue throughout the year without significant weather disruption.

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			16

4.4Infrastructure Availability

IPNM has sufficient water rights, reliable electric power, and a robust supply chain. IPNM competes with other industries in the Carlsbad area for qualified labor. Layoffs in market downturns may make it more difficult to re-hire personnel as needed.

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			17

Figure 4-1.    Mine Locations showing Property Access

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			18

5.0History

Potash was first discovered in southeast New Mexico in 1925 in Eddy County, New Mexico, in Snowden McSweeney Well No. I on a V. H. McNutt permit near the center of the portion of what is now the KPLA. Commercial shipments began in 1931. The ownership history is listed in Table 5-1.

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			19

Table 5-1.    Mine Ownership History

Property			Owner			Date
East Mine			Kerr-McGee Chemical Corporation			1961–1985
			New Mexico Potash Corporation (Trans Resources, Inc.)			1985–1996
			Mississippi Potash Inc.			1996–2004
			Intrepid Potash, Inc. (Intrepid Mining- NM, LLC)			2004–Present
West Mine			U. S. Potash Company			1929–1956
			U.S. Borax and Chemical Corporation			1956–1968
			U.S. Potash and Chemical			1968–1970
			Continental American Royalty Corporation			1970–1972
			Teledyne			1972–1974
			Mississippi Chemical Company (MCC)			1974–1996
			Mississippi Potash, Inc. (MPI) (a subsidiary of MCC)			1996–2004
			Intrepid Potash, Inc. (Intrepid Mining - NM, LLC)			2004–Present
North Mine			National Potash Company (Freeport Sulphur Company)			1957–1982
			New Mexico Potash Corporation (Trans Resources Inc.)			1982
			Mississippi Chemical Corporation			1985–1988
			Mississippi Chemical Corporation			1992–1996
			Mississippi Potash Inc.			1996–2004
			Intrepid Potash, Inc. (Intrepid Mining- NM, LLC)			2004–Present
AMAX Mine			Southwest Potash Corporation			1948
			AMAX Potash			1986–1992
			Horizon Gold (Horizon Potash)			1992–1995
			Intrepid Potash, Inc. (Intrepid Mining - NM, LLC)			2012–Present
HB Mine			Potash Corp of America			1934–1967
			Ideal Basic			1967–1985
			Lundberg Industries			1985–1987
			Trans-Resource (Eddy Potash)			1987–1996
			Mississippi Potash, Inc.			1996–2004
			Intrepid Potash, Inc. (Intrepid Mining NM, LLC)			2004–Present

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			20

6.0Geologic Setting

The term “potash” is a generic term describing potassium in combination with chloride, sulfates, or nitrates. Potassium is one of the key nutrients for plants in fertilizer with nitrogen and phosphorus. Potash-bearing evaporites are typically formed as the result of evaporation of brine in basins with restricted outlets. Potash zones are found near the top of halite beds because potash is precipitated from the concentrated brines found at the end of the evaporation sequence. Important natural and commercial soluble potassium salts are sylvite (KCl) and langbeinite, a potassium magnesium double salt (K2SO4 ·2MgSO4) (Barker and Austin 1999).

6.1Deposit Type

The geology of the potash-bearing beds of the Carlsbad area has been well documented. Overall, the potash-bearing beds may be described as bedded sedimentary rocks, deposited across the Delaware Basin and Northwest Shelf backreef from the Capitan Reef. The depositional sequences that developed in the Salado Formation consist of repetitive cycles that can be recognized by changes in mineralogy, sedimentary textures, and structures. Two types of cycles are differentiated as Type I and Type II. A complete Type I cycle ranges in thickness from 3 ft to 33- ft and consists of (in ascending order):

•A basal, mixed siliciclastic and carbonate mudstone

•Laminated to massive anhydrite-polyhalite

•Halite

•Halite with mud (argillaceous halite)

Type II is a thinner, less complete sequence and consists of halite that grades upward into argillaceous halite (Lowenstein 1988). The anhydrite-polyhalite beds are laterally continuous over large distances and are used as marker beds for correlation. Potash beds are not included in these sequences because potash is secondary and formed later than the basic depositional sequence.

6.2Regional Geology

The Carlsbad area falls within the Delaware Basin of Permian Age. The Delaware Basin has a maximum width of approximately 100 miles and a length of approximately 150 miles, extending from north of Carlsbad, New Mexico, to Pecos County, Texas.

The Permian Age sequence comprises the Ochoan, Guadalupe, Leonard, and Wolfcamp series in order of increasing age (Linn and Adams 1966). Laterally extensive, evaporite beds

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			21

containing deposits of halite, sylvite, langbeinite, kainite, carnallite, and other evaporite minerals are found within the Ochoan Series, whose top ranges from a depth of 2,000 ft near the Texas State line to approximately 200 ft below surface north of Carlsbad.

The Ochoan Series is divided into four formations as follows, in order of increasing depth (Vine 1963):

•Dewey Lake Red Beds, which consist of 200 to 250 ft of fine-grained sandstone, siltstone, and shale of low permeability that is absent west of the Pecos River.

•Rustler Formation, which consists of approximately 350 ft of dolomite and anhydrite beds that outcrop along the Pecos River west of the potash area.

•Salado Formation, which was originally called the Upper Castile Formation and was separated from the underlying Castile based on a potash content of more than 1% K2O (Kroenlein 1939). The Salado Formation contains 12 potash zones, of which 6 have been or are currently being mined.

•Castile Formation, which is laterally bounded by the Guadalupian Age Capitan Reef limestones that define the Delaware Basin and consists of calcite-banded anhydrite and halite formed in a deep-water environment (Cheeseman 1978).

The Salado Formation thickness ranges from 1,200 ft to 2,300 ft and consists of an unnamed Upper Member, the McNutt Potash Member, and an unnamed Lower Member. Much of the variation in thickness is due to removal of halite by dissolution. It is an evaporite sequence dominated by 650 to 1,300 ft of halite and argillaceous halite and contains over 42 informally named or numbered marker beds in addition to 11 numbered potash zones within the McNutt Potash Member (Table 6-1). Figure 6-1 shows the zones in a cross section through the Property.

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			22

Table 6-1.    The Potash Zones in the McNutt Potash Member

Potash Zone

Marker Bed

Thickness (ft)

Approximate Depth from Top of Salado (ft)

Lithology

MB103

20

180

Anhydrite

MB109

20

320

Anhydrite, finely crystalline, interbedded with stringers of halite, polyhalite and mudstone

Vaca Triste

10

540

Siltstone and silty mudstone interbedded with halite

11

Mostly carnallite, minor sylvite, leonite

MB117

Polyhalite

MB119

Polyhalite

10

Sylvite, sylvinite

MB120

Anhydrite

9

Carnallite, kieserite, sylvite

MB121

Polyhalite

MB122

Polyhalite

8

Sylvite

Union Anhydrite

15-20

760

Anhydrite, finely crystalline with stringers of halite

7

Sylvite, sylvinite

6

Carnallite, kieserite, etc.

5

Sylvite, langbeinite

MB123

5-10

845

Halite and polyhalite

MB124

5-10

870

Anhydrite, finely crystalline laminated. May have stringers of mudstone

4

Langbeinite, sylvite

3

Sylvite, sylvinite

2

Carnallite, kieserite, etc.

MB125

Polyhalite

1

Sylvite and sylvinite

MB126

Polyhalite

MB134

10-15

1,260

Anhydrite

MB136

10-15

1,340

Anhydrite. May have interbeds of halite or polyhalite

MB142

15

1,550

Anhydrite with interbeds of halite and stringers of mudstone

Cowden Anhydrite

20

1,700

Anhydrite, finely crystalline, laminated. May have thin interbeds of magnesite and mudstone. Divided into two beds by intervening halite in SE Eddy County

Source: Backman (1984); Griswold (1982)

RESPEC

    

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			23

6.3Property Geology

Sylvinite is currently being mined using solution methods in the 1st and 3rd ore zone. Historically, sylvinite has been conventionally underground mined in the 1st, 3rd, 5th, 7th, and 10th ore zones.

Mechanical mining of langbeinite is currently occurring in the 3rd and 5th ore zones at the East Mine. Langbeinite is prevalent in the 3rd and 4th ore zones in the southern part of the Delaware Basin, part of the Permian Basin, and occurs mixed with sylvite in the 5th ore zone.

The property stratigraphic column is shown in Figure 6-2.

6.3.1East Mine

Historically, the East Mine primarily mined sylvinite in the 10th ore zone. Current mining is predominantly taking place on the 5th mixed and 3rd langbeinite ore zones. The 5th ore zone is a mixed ore consisting of variable amounts of K2O as langbeinite and sylvite. The 5th ore zone, predominant in langbeinite, is mined and blended with the 3rd langbeinite ore. The common minerals found at the mine are halite, sylvite, clay (montmorillonite), sulfate minerals, and carnallite. The eastern sections of the mine have large deposits of carnallite and kieserite. The 10th ore zone is also characterized by isolated pods of barren clays. These clay pods range in size from a few square feet to several hundred thousand square feet. The location of these pods is random, and there is no known practical method of predicting their location.

6.3.2West Mine

The potash deposits at the West Mine consist of mixed sylvite (KCl) and halite (NaCl) in two distinct zones within one of the flat-lying halite beds. This bed is located near the middle of the Salado Formation. Thin zones of enriched potash-bearing minerals are located within the 150-ft deposit.

Mining activities most recently took place in the 5th, 7th, and 10th ore zones. In most parts of the deposit, the vertical change from ore to barren salt is abrupt, while the lateral transition at the edges of the ore body is gradual. Barren masses of halite, known as “salt horses,” are scattered irregularly throughout the ore body. The ore is an intimate intergrowth of crystalline NaCl and KCl in various proportions, with sylvite typically less than 35% by weight. Sylvite is milky or faintly bluish gray but is often stained red by iron oxide around the crystals. Halite commonly is clear, grayish, or orange/yellow with occasional red staining. Blue halite is occasionally found associated with the sylvite.

RESPEC

    

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			24

6.3.3North Mine

In the vicinity of the North Mine, the 10th ore zone is encountered at depths of between approximately 1,400 and 1,900 ft below ground surface. The 10th ore zone consists of two sylvinite beds separated by a halite unit. The lower member, or zone 10C, is the target ore bed for the North Mine and may vary in thickness from 3 to 8 ft.

RESPEC

    

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			25

Figure 6-1.    Carlsbad Potash District Regional Cross Section (Lewis 2007)

RESPEC

    

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			26

Figure 6-2.    Typical Stratigraphic Column of the Ochoan (Warren 2018; Barker et al 1993)

6.3.4HB Solar Solution Mine

The HB Mine, which was formerly owned by the Eddy Potash, Co., and mined on the 1st and 3rd ore zones (Barker and Austin 1999), has been flooded and is currently being solution mined with brines to obtain potash from the remaining pillars.

6.4Mineralization

In the Carlsbad Area, the potassium minerals, in order of decreasing abundance, are polyhalite, sylvite, carnallite, langbeinite, kainite, and leonite. Other potassium minerals occur only in minor amounts in association with the principal potassium minerals listed previously. The mineralogy of the zones found in the Carlsbad Area are summarized in Table 6-2.

RESPEC

    

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			27

Table 6-2.    Carlsbad Area Minerals and Their Compositions

Ore Zone

Closest Marker Bed

Approximate Bed Depth (ft-bgs)

Bed Thickness (ft)

Clay Content (%)

Mineralogy

Mineability and Status

Above Ore Zone

Below Ore Zone

Eleventh

Vaca Triste

MB117

Mostly carnallite, minor silvite and leonite

Not commercial

Tenth

MB119

MB120

700

5–12

5–7

Sylvite

Second best in District; in production

Ninth

MB120

MB121

Carnallite, kieserite, minor sylvite

Not commercial

Eighth

MB122

Union

6–7

Sylvite

Moderate size; unmined

Seventh

Union

5–9

3–4

Sylvite

Formerly mined; standby

Sixth

Union

Carnallite, kieserite, etc.

Not commercial

Fifth

Union

MB123

800

4.7–5

1

Sylvite and langbeinite

In production

Fourth

MB 124

850

4

Langbeinite and sylvite

Principal source of langbeinite; in production

Third

MB 124

865

3-6

Langbeinite and sylvite

In solution mining production of sylvite in Amax, In conventional production for langbeinite in East mine

Second

MB 124

MB125

Carnallite, kieserite, etc.

Not commercial

First

MB125

MB126

900

8–14

2

Sylvite

Long-time producer; currently flooded with brine for solution mining

Source: Barker and Austin (1993); Swales (1966); Pierce (1936); Haworth (1949); Bruhn and Miller (1954); Jones et al. (1954); Kirby (1974); Herne and McGuire (2001)

The minerals listed above can be described as follows (Schaller and Henderson 1932):

•Polyhalite is the most abundant potassium mineral in the Carlsbad Area. Beds of nearly pure polyhalite have thicknesses up to 8 ft and beds a foot or more thick are numerous.

•Sylvite often has a dark red or reddish-brown color due to hematite inclusions. Sylvite without the inclusions is a milky white color. Sylvite is typically mixed with halite and where clay is present in the mixture, it is in bands distinct from the sylvite.

•Carnallite is massive and compact showing no crystal faces. Crystals where seen are typically less than 1 millimeter (mm) in diameter. It occurs in small blebs with halite and sylvite.

•Langbeinite is found in distinct tetrahedral crystals that reach sizes up to ¾ inch. It is typically associated with halite and sylvite and often some kieserite. It has a distinct pink color in most samples and has a higher compressive strength than sylvite.

RESPEC

    

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			28

•Kainite is massive with poorly developed fibrous fracture surfaces and has a characteristic honey-yellow color. It is found in narrow bands between sylvite and langbeinite and is apparently a result of a reaction between the two.

•Leonite is typically found in small quantities in mixtures of other minerals, notably kainite and sylvite. Its color ranges from colorless to pale yellow. It is also found with polyhalite and anhydrite, but the relationship is unclear. It has also been found as a secondary replacement for kieserite.

6.5Geologic Structure

The potash-bearing beds in the Carlsbad Area may be affected by several types of anomalies:

•“Salt horses” (Gunn and Hills 1978)

•“Mud horses” (Simmons 2013)

•Dissolution and collapse anomalies (“breccia chimneys”)

•Igneous dykes

The presence of high concentrations of non-economic evaporite minerals, insolubles, or geologic disturbances that influence the normal character of the potash-bearing beds is considered an “anomaly” and may be unsuitable for mining. These anomalies range from localized features significantly less than a square kilometer to disturbances that are regional (i.e., several square kilometers in extent).

RESPEC

    

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			29

7.0Exploration

7.1Exploration Other than Drilling

No exploration other than confirmation drilling has been performed.

7.2Drilling Exploration

Intrepid partakes in ongoing exploration as a part of operational long-term planning. Core holes are drilled from the surface and underground, and channel samples are collected as mining advances. Intrepid provided the QP their dataset beginning in 2007. Since that time, multiple data points have been added and several drillholes were reassessed. Potash is also identified from gamma ray geophysical logs in oil and gas wells. Bed thickness and potash grade are estimated and quantified with input from 2,928 sample points. Extensive work was completed with geophysical tools in collaboration with the United States Geologic Survey (USGS) (Nelson 2007) to determine and verify potash grades from gamma logs (Lewis 2006). The sample database for this exploration work is shown in Table 7-1. The dataset is from oil and gas wells, surface core holes, underground core holes, channel samples, shaft samples, and roof bolt holes. The key sample types include 7,209 drillholes and channel samples and are broken down by mining zone. Figure 7-1 shows the exploration drillhole and channel sample locations and regional topography. The dataset used for this reserve evaluation is shown in Table 7-2.

Table 7-1.    Data Sample Sets—All Available Holes

Ore Zone			Oil/Gas Wells			Surface Core Holes			Underground Core Holes			Channel Samples			Shaft			Roof Bolt			Total Samples
Zone 2			—			2			—			1			—			—			2
Zone 3			478			560			57			743			3			—			1,171
Zone 3A			—			1			—			6			—			—			1
Zone 4			480			544			62			5			3			—			1,094
Zone 4A			—			2			—			—			—			—			2
Zone 5			488			572			114			2,616			4			42			3,234
Zone 7			484			611			89			805			4			7			2,000
Zone 8			492			613			53			—			3			—			1,161
Zone 9			—			1			—			—			—			—			1
Zone 10C			506			843			7			181			3			—			1,540
Total			2,928			3,749			382			4,357			20			49			10,206

RESPEC

    

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			30

Figure 7-1.    Base Map, Lease Lines, and Drillholes

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			31

Table 7-2.    Data Sample Sets—Resource Evaluation Dataset

Ore Zone			Oil/Gas Wells			Core Holes			Channel Samples			Total Samples
Zone 3			463			542			73			1,078
Zone 4			469			619			12			1,100
Zone 5			482			651			1,979			3,112
Zone 7			480			609			831			1,920
Zone 8			476			576			2			1,054
Zone 10			486			729			183			1,398

7.3Characterization of Hydrogeology Data

The characterization of the hydrogeology was completed for the HB Solar Solution Mine by AECCOM in 2011 and is included as part of the publicly available EIS (DOI 2012). The study confirmed the availability of water for the initial flooding of the solution mines at a pumping rate ranging from 177 to 1,440 gallons per minute (gpm).

7.4Characterization of Geotechnical Data

Not applicable.

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			32

8.0Sample Preparation

IPNM has standard operating procedures (SOP) in place for logging and sampling core from underground and surface core drilling. According to the SOP’s, the geologist uses gamma ray to initially select the sample interval prior to prepping the sample for analysis. The samples are assayed at the on-site laboratory. The site laboratory has the capability to conduct X-ray Diffraction (XRD), Total Organic Carbon (TOC), and flame photometry laboratory techniques.

The mineral analysis for all core and channel samples is analyzed with the XRD. A sample of approximately 300–500 grams (g) is collected. The sample is split down to around 100 g and run through a grinding mill to reduce the size down to approximately –100 mesh. A sample is weighed out to 5 g and put into a micronizing mill that reduces the particle size to ~10 microns and pressed into a sample holder. The sample is inserted into the instrument and a diffraction pattern is retrieved. The diffraction pattern is then analyzed using the Rietveld refinement software, reporting weight percent of solid mineral in the sample.

The sample preparation, security, and laboratory analytical procedures are conventional industry practice and are adequate for the reporting of resources and reserves.

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			33

9.0Data Verification

Due to the proximity of the location to the DOI Waste Isolation Pilot Plant (WIPP) site, and the intensive oil and gas drilling in the Permian Basin, there is geologic data publicly available for comparison. Data was also verified for beds with an extraction history by reconciling actual mining with the planned mining based on geologic modeling from the exploration database.

9.1Data Verification Procedure

The property has been producing for many years. Mining and processing of the ore to successfully marketed products is verification of the exploration data.

9.2Limitations on Verification

There are no limitations on the verification.

9.3Adequacy of the Data

It is the opinion of the Qualified Person (QP) that the data is adequate for the determination of resources and reserves. The deposit has historically and continues to be mined with plans based on the data.

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			34

10.0Mineral Processing and Metallurgical Testing

IPNM has a long history of processing ores on-site. Recovery estimates are based on past plant performance, current performance, and anticipated future performance based on laboratory or metallurgical testing of the anticipated plant feed. Over time, the appropriate capital modifications to the plants have been made to accommodate changes in ore feed and market requirements.

10.1Adequacy of the Data

It is the opinion of the QP that the data is adequate for the determination of resources and reserves. The deposit has historically and continues to be processed successfully.

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			35

11.0Mineral Resource Estimates

According to 17 CFR § 229.1300 (2025), the following definitions of mineral resource categories are included for reference:

An inferred mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an inferred mineral resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an inferred mineral resource has the lowest level of geological confidence of all mineral resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an inferred mineral resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a mineral reserve.

An indicated mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an indicated mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an indicated mineral resource has a lower level of confidence than the level of confidence of a measured mineral resource, an indicated mineral resource may only be converted to a probable mineral reserve.

A measured mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a measured mineral resource is sufficient to allow a qualified person to apply modifying factors, as defined in this section, in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a measured mineral resource has a higher level of confidence than the level of confidence of either an indicated mineral resource or an inferred mineral resource, a measured mineral resource may be converted to a proven mineral reserve or to a probable mineral reserve.

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			36

11.1Key Assumptions, Parameters and Methods

The exploration drillhole and channel sample data were compiled to form the database that serves as the basis for estimating the resources. The geologic setting was evaluated, and bed assignments reviewed. Of the data within the lease boundary, all data points contribute bed thickness, and several have assay information.

The geology was modeled using Carlson Software (2020). A basic inverse distance-squared (ID2) algorithm was used with a search radius of ¾ mile to prepare the 100-ft x 100-ft grids for bed thickness and grade. The search radius was applied for Measured and Indicated Resources of ¼ mile and ¾ mile, respectively. Where data is dense, the nearest 25 data points were used to assign values for the grid block. The grids were multiplied by each other to compile a grade-thickness (GT) grid within the lease boundaries held by IPNM. The base grid was adjusted for each ore type cutoff. Key assumptions and parameters for resource estimation are listed in Table 11-1.

The classification of cutoff in terms of GT in units of ft% was defined in the Secretaries Order dated October 21, 1986 (51 FR 39425) for mechanically mined potash deposits. The criteria

Table 11-1.    Parameter Assumptions

			Resources
			Measured			Indicated
Proximity to sample point			1,320 ft (1/4 mile)			3,960 ft (3/4 mile)
GT for sylvinite mechanical mining			54 ft% K2O
GT for high-insoluble sylvinite mechanical mining*			64 ft% K2O
GT for langbeinite mechanical mining			25 ft% K2O
Flood elevation HB South			2,525 ft
Flood Elevation HB North			2,325 ft
Flood Elevation HB Eddy			2,675 ft
Flood Elevation HB AMAX			2,500 ft
Carnallite content mechanical mining			Less than 6%
Mineability			Reasonably expected to be feasible to mine
*High-insoluble sylvinite zones 8 and 10

are not dependent on thickness or grade, but on the product of the thickness and grade. To evaluate the viability of mining the IPNM mechanically mined resources, a cutoff GT was established. Inputs to the estimation of the cutoff analysis are cost of goods sold, product sale

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			37

price, mill recovery, and nominal grade. The cutoff for solution mining in flooded abandoned underground potash mines is a function of the grade of the brine being extracted which results in enough product tons to just cover the cost of production.

The estimated cost of goods sold (COGS) and sales price used in the cutoff evaluation are outlined in Table 11-2.

Intrepid has a long history of sales and marketing of their products. Sales are managed for all properties through the corporate office. Intrepid provided the historical demand and sales pricing through the statements of earnings (SOE) from 2012 to 2024. Forward-looking pricing was provided by Intrepid marketing. The product sale prices selected for analysis of cutoff grade are shown in Table 11-2. These values are 25% greater than the product sales price for the reserve estimate.

Table 11-2.    Cost of Goods Sold and Sales Price Assumptions

Product

Sale Price

Freight

Net Sales Price

Cost of Goods Sold (not including by-product credit)

Langbeinite

$470/t

$90/t

$380/t

$272/t

Sylvite Solution Mining

$450/t

$30/t

$420/t

$260/t

Sylvite Mechanical Mining

$450/t

$30/t

$420/t

$272/t

Economic modeling indicates cutoff grades at the IPNM East Mine of 25 ft %K2O for langbeinite resource. Modeling also indicates a cutoff of 64 ft% K2O for the high-insoluble sylvinite resources in the 8th and 10th zones, which requires the capital investment of a new plant and refurbishment of shafts. A cutoff of 54 ft% K2O is indicated for the West sylvinite resources which requires the processing plant, mine equipment, and associated infrastructure to be rehabilitated. Cutoff grades are listed in Table 11-3.

RESPEC

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Table 11-3.    Cutoff Grade Analysis for Mechanical Mining

Ore Mineral			Pure Mineral (%)			Nominal Grade Cutoffs (% K2O)			Nominal Grade Cutoffs (% KCl or Lang)			Mill Recovery (%)			Grade- Thickness Cutoff1 (ft%)			Applicable Ore Zones
Carlsbad East Mine																		East–3, 4 and 5, West–4
Langbeinite2			22.70%			5.2%			23.0%			68%			25
Carlsbad West/North Mine
High-Insolubles Sylvite with CAPEX Burden			63.17%			14.4%			22.8%			75%			64			8 and 10
Carlsbad West Mine																		West–3, 4, 5, 7 North–3 and 4
Sylvinite with CAPEX Burden			63.17%			11.8%			18.7%			80%			54

1Equivalent to 5.0-ft-thick ore at nominal grades in the East Mine and 4.5-ft-thick ore at nominal grades in the West and North Mines.

2All langbeinite is processed at the East Plant.

CAPEX = capital expenditure

By definition, the cutoff grade is the grade that determines the destination of the material during mining. The cutoff grade for resources of abandoned underground sylvinite is not a parameter for use in the estimation of solution mining resources but does establish an operational minimum limit for the brine grade reserves. The solution mining resources are the pillars remaining after mining and the fringe boundary of the mine. Resources could also be unmined sylvinite left behind to provide geotechnical support. An operational limit of the flood elevation establishes the cutoff between resource and reserve for this deposit. When mining using solution methods in proximity to other mines, or other underground mines not within the control of IPNM, the critical factor in establishing a flood elevation is to keep adjoining properties dry or to protect structures such as shafts.

Resource maps for sylvinite by zones 10, 8, 7, 5, 4, 3, and 1 are included in Figures 11-1 through 11-7, respectively. The langbeinite mineral resource maps for zones 5, 4, and 3 are included in Figures 11-8 through 11-10.

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			39

Figure 11-1.    10th Ore Zone Mineral Resources, Sylvinite Ore

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			40

Figure 11-2.    8th Ore Zone Mineral Resources, Sylvinite Ore

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			41

Figure 11-3.    7th Ore Zone Mineral Resources, Sylvinite Ore

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			42

Figure 11-4.    5th Ore Zone Mineral Resources, Sylvinite Ore

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			43

Figure 11-5.    4th Ore Zone Mineral Resources, Sylvinite Ore

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			44

Figure 11-6.    3rd Ore Zone Mineral Resources, Sylvinite Ore

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			45

Figure 11-7.    1st Ore Zone Mineral Resources, Sylvinite Ore

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			46

Figure 11-8.    5th Ore Zone Mineral Resources, Langbeinite Ore

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			47

Figure 11-9.    4th Ore Zone Mineral Resources, Langbeinite Ore

RESPEC

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Figure 11-10.    3rd Ore Zone Mineral Resources, Langbeinite Ore

RESPEC

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11.2Mineral Resource Estimate

The estimate of measured and indicated mineral resources effective December 31, 2024, extracted from the application of the resource cutoffs to the geologic model is listed in Table 11-4 and Table 11-5.

Table 11-4.    Mineral Resource Estimate Summary effective December 31, 2024

IPNM - Summary of Mineral Resources in millions of tons of Sylvinite in Place effective December 31, 2024, based on $450/product ton mine site
			Resources
			Sylvinite1			Grade			Contained K2O			Mining Cutoff2			Processing Recovery
			(Mt)			(%K2O)			(Mt)			(ft-%K2O)			(%)
Measured Mineral Resources			288			16			45			54-64			75-85
Indicated Mineral Resources			164			14			24			54-64			75-85
Measured + Indicated Mineral Resources			452			15			69
Inferred Mineral Resources

1Sylvinite is a mixed evaporite containing NaCl and KCl.

2Solution mining resource cutoff for flooded old working is the mining extents boundary.

Mineral Resources were prepared by RESPEC, a qualified firm for the estimate and independent of Intrepid Potash, for EOY 2024.

Mineral Resources are reported exclusive of Mineral Reserves, on a 100% basis.

Mt = million tons, % = percentage, K2O = potassium oxide, ft = feet

RESPEC

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Table 11-5.    Mineral Resource Estimate Summary effective December 31, 2024

IPNM - Summary of Mineral Resources in millions of tons of Langbeinite Mineralized Rock in Place effective December 31, 2024, based on $470/Product Ton Mine Site
			Resources
			Langbeinite Mineralized Rock			Grade			Contained K2O			Mining Cutoff			Processing Recovery
			(Mt)			(%K2O)			(Mt)			(ft-%K2O)			(%)
Measured Mineral Resources			67			10			6			25			68
Indicated Mineral Resources			59			10			6			25			68
Measured + Indicated Mineral Resources			126			10			12
Inferred Mineral Resources
Mineral Resources were prepared by RESPEC, a qualified firm for the estimate and independent of Intrepid Potash, for EOY 2024.
Mineral Resources are reported exclusive of Mineral Reserves, on a 100% basis.
Mt = million tons, % = percentage, K2O = potassium oxide, ft = feet

11.3Discussion of Future Work

IPNM has historically and is currently producing from this property. There are no relevant technical or economic factors that need to be resolved.

RESPEC

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12.0Mineral Reserve Estimates

Mineral reserves that are to be mined using mechanical methods are estimated by the application of a detailed mine plan for the measured and indicated resources within the boundaries of the cutoff GT for reserves. The plan sets the basis for the estimation of annual production of product. The income from product sales and the operating and capital costs to mine the resource is fundamental to the cash flow used to establish economic viability.

Mineral reserves that are mined using solution mining methods are not subject to the traditional application of a cutoff grade but instead of operational limitations. An operational limit of the flood elevation establishes the cutoff between resource and reserve for this deposit.

According to 17 CFR § 229.1300 (2025), the following definitions are included for reference:

A probable mineral reserve is the economically mineable part of an indicated and, in some cases, a measured mineral resource.

A proven mineral reserve is the economically mineable part of a measured mineral resource.

12.1Key Assumptions, Parameters, and Methods

By definition, modifying factors are the factors applied to indicated and measured mineral resources and then evaluated in order to establish the economic viability of mineral reserves. These factors for IPNM include mechanical and solution mining parameters; mineral processing; oil and gas drill islands and well locations; economic cutoff GT; deleterious minerology; legal, environmental permitting and lease boundaries.

Intrepid has a long history of sales and marketing of their products. Sales are managed for all properties through the corporate office. Intrepid provided the historical demand and sales pricing through their SOEs from 2012 to 2024. Potash market is discussed in Section 16. The product sales price selected for Reserve evaluation is shown in Table 12-1.

Table 12-1.    Product Sales Price (Reserves)

Product

Sale Price

Freight

Net Sales Price

Cost of Goods Sold with by-product credit

Sylvite

$360/t

$30/t

$330/t

$203/t

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			52

Cutoff grade for brine production is listed in Table 12-2.

12.2Mineral Reserves Estimate

The mine plan boundary determines the technical feasibility of mining the reserves for zones. The mine plan layout for the solution mining is a flood elevation indicating the limit of the fluid injection boundary. The proven and probable reserves are included in Table 12-3 and are shown in Figure 12-1 for ore zone 1, respectively.

Table 12-2.    Cutoff for Solution Mined Reserves

5-Yr Basis (2025-2029)
Total production costs ($/ton of product)			$260
Net revenue from byproducts ($/ton of product)			($57)
Total Cost ($/ton of product)			$203
Potash
Price per ton less shipping ($/ton)			$330
Tons sold			726,500
Net potash sales ($)			$239,731,000
Cutoff Analysis
Breakeven tons (tonnage to cover the costs)			446,034
Net concentration of production brine (% KCl)			8.4
Cutoff net concentration (% KCl)			4.8
Cutoff net concentration (% K2O)			2.9

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			53

Table 12-3.    Mineral Reserve Estimate effective December 31, 2024

IPNM -Summary of Potash Mineral Reserves effective December 31, 2024 based on $360/Product Ton Mine Site

Reserves

In-Place KCl

In-Situ Grade1

Product2

Brine Cutoff Grade3

Processing Recovery

(Mt)

(%K2O)

(Mt)

(%K2O)

(%)

Proven Mineral Reserves

5.3

22.9

3.4

2.9

83

Probable Mineral Reserves

Total Mineral Reserves

5.3

22.9

3.4

1In-situ grade is the amount of K2O in the contact area of the caverns and is used to calculate the In-Place KCl.

2Product is calculated by multiplying In-Place KCl by: dissolution factor of 96%, areal recovery of 100%, geologic factor of 94.2%, plant recovery of 83%, cavern loss factor of 98%, a product purity factor of 103%, a bitterns loss factor of 88% and handling loss factor of 97%.

3Brine cutoff grade is the amount of K2O in the extracted brine necessary to cover the cash costs of production.

Mineral Reserves were prepared by RESPEC, a qualified firm for the estimate and independent of Intrepid Potash, for EOY 2024.

Mineral Reserves are reported exclusive of Mineral Resources, on a 100% basis.

Mt = million tons, % = percent, K2O = potassium oxide, ft = feet

12.3Risk Factors

Mineral reserves are an estimate from sparse data sampling points in a geologic setting that can be highly variable. The risk of material changes to the geologic interpretation is tempered by the application of the anomaly factor and the long history of mining in this deposit. Costs are subject to impact by the broader economy and can be impacted by the weather and other natural forces. A change in rules or regulations can result in unanticipated cost increases.

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			54

Figure 12-1.    1st Ore Zone Mineral Reserves, Sylvinite Ore

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			55

13.0Mining Methods

The two mining methods currently in practice at IPNM are high-extraction mechanical underground room-and-pillar mining and solution mining. Mechanical mining is well suited to bedded deposits. All MOP production at IPNM comes from the HB Solar Solution Mine in the 1st and 3rd ore zones. Trio® production is from langbeinite mined using room-and-pillar mechanical mining methods at the East Mine in the 3rd, 4th, and 5th ore zones. Historically, MOP was sourced from the West Mine 5th, 7th, and 10th ore zones. Approximately 300 people are employed at the property.

The East Mine is a high-extraction, mechanical room-and-pillar mine. Potash was the primary product until mining progressed to the mixed langbeinite and potash ore in the 5th ore zone. The mixed ore was processed into two products: MOP sourced from the sylvinite portion of the mixed ore, and Trio® sourced from the langbeinite portion of the mixed ore. The East Mine plant was converted to a langbeinite-only operation in April 2016 and potash is no longer produced from the East Mine. The maximum productive capacity of the plant is 400,000 t of Trio® concentrate annually.

There are five active sections with a miner and a shuttle car loading onto a belt conveyor. Each mining section produces approximately 240,000 t of run-of-mine ore each year. The long-range production balanced with sales projections results in a long-term annual production of 1.2 Mt of ore for 250,000 t of Trio®.

Historical room-and pillar-mining operations at the HB Mine recovered about 70% of the ore, leaving approximately 30% of the ore available for secondary recovery in pillars plus what can be recovered beyond the limits of the conventional mine works. Mining at the HB Solar Solution Mine recovers potash by injecting saturated saline NaCl brine into the old mine works to create underground leach lakes. Over time, the solution becomes enriched with potash and is pumped to the surface to solar evaporation ponds. Selective solar evaporation leaves behind a potash-enriched salt that is collected using scrapers, pumped, and processed at the HB Plant. The solution mine comprises six injection wells, five extraction wells, and two monitoring wells.

The North Mine operated from 1957 to 1982 when it was idled, mainly due to low potash prices and a change in the mineralogy of the readily accessible remaining reserves which negatively impacted mineral processing. Although the mining and processing equipment has been removed, the mine shafts remain open. The compaction facility at the North Mine is where the HB potash product is granulated, stored, and shipped. The North Facility receives compactor feed from the HB Solar Solution Mine via truck and converts the compactor feed to finished granular-sized product and standard-sized product.

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			56

The extents of the mine plan for this reserve estimate is shown in Figure 13-1 and included in tabular format in Table 13-1. The life of the resources and reserves at IPNM exceeds 25 years.

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			57

Figure 13-1.    Underground and Solution Mining Extents

RESPEC

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Table 13-1.    IPNM 25-Year Mine Plan

Calendar Year			Plan Year			MOP
						R			S			T			U			V			W
						Brine Extracted (Gallons)			Brine Grade (%K2O)			K2O (Tons)			Product KCl (Tons)			Handling Losses (Tons)			MOP (Tons)
2025			Year 1			534,816,000			4.83			132,400			142,000			4,300			137,700
2026			Year 2			533,808,000			4.97			136,100			146,000			4,400			141,600
2027			Year 3			532,584,000			5.09			139,000			149,100			4,500			144,600
2028			Year 4			533,376,000			5.30			145,000			155,600			4,700			150,900
2029			Year 5			535,392,000			5.30			145,500			156,100			4,700			151,400
2030			Year 6			536,688,000			5.32			146,300			157,000			4,700			152,300
2031			Year 7			534,600,000			5.21			143,000			153,400			4,600			148,800
2032			Year 8			535,032,000			5.31			145,600			156,300			4,700			151,600
2033			Year 9			534,456,000			5.18			142,000			152,300			4,600			147,700
2034			Year 10			536,714,000			5.09			140,000			150,200			4,500			145,700
2035			Year 11			537,434,000			5.00			137,900			147,900			4,400			143,500
2036			Year 12			538,154,000			4.92			135,700			145,600			4,400			141,200
2037			Year 13			537,434,000			4.83			133,200			142,900			4,300			138,600
2038			Year 14			536,714,000			4.75			130,700			140,200			4,200			136,000
2039			Year 15			535,994,000			4.66			128,200			137,500			4,100			133,400
2040			Year 16			537,434,000			4.58			126,300			135,400			4,100			131,300
2041			Year 17			537,434,000			4.50			123,900			133,000			4,000			129,000
2042			Year 18			537,434,000			4.41			121,600			130,500			3,900			126,600
2043			Year 19			536,996,000			4.35			119,800			128,500			3,900			124,600
2044			Year 20			535,002,000			4.48			122,800			131,800			4,000			127,800
2045			Year 21			536,608,000			4.42			121,600			130,400			3,900			126,500
2046			Year 22			533,834,400			4.34			118,800			127,400			3,800			123,600
2047			Year 23			534,242,400			4.26			116,600			125,100			3,800			121,300
2048			Year 24			534,526,800			4.16			114,000			122,300			3,700			118,600
2049			Year 25			536,442,000			4.07			112,100			120,200			3,600			116,600
Extraction brine density - 1.23
KCl plant recovery - 83%
Product purity - 97%
Pond recovery – 90%
Pure KCl equates to 63.17% K2O by mass
Handling losses – 3%; Bitterns Losses – 12%
T = (R*(S/100)*1.23*8.34/2000)
U = (T/0.6317)*(0.83*0.90*0.88)/0.97
V = U*0.03
W = U-V

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			59

14.0Processing and Recovery Methods

All IPNM ores are processed on-site. There are two active processing plants: the East Plant and HB Plant. The West Plant was idled in 2016. The North Compactor was completed in early 2013 and is used to granulate, store, and ship product from the HB Plant.

Declining ore grades coupled with market conditions have resulted in IPNM shuttering much of it sylvite capacity in the previous years. Historically, the East Plant produced white sylvite by evaporative crystallization and langbeinite (K2SO4·2MgSO4) by dense media separation of the coarse fraction (+20 mesh) of ore mined from the 3rd, 4th, and 5th ore zones. In 2016, sylvite production permanently ceased and the East Plant became a langbeinite-only producer. Langbeinite recoveries have since improved to as high as 72%.

14.1HB Processing Facility

In 2012, IPNM commenced filling the HB solar evaporation ponds (Figure 14-1). The extraction brine sourced from the mined-out areas of the 1st ore zones of the former underground workings of portions of HB Eddy, HB South, HB North, and the HB Crescent, collectively referred to as the HB Mine. The brine is collected and crystallized in 18 solar evaporation ponds. The HB flotation mill processes the harvested potash and salts from the solar evaporation ponds.

Conditioned injectate, made with NaCl-saturated brine, is injected to create underground leach lakes in the lower portions of abandoned subsurface mine workings. The solution mine comprises six injection wells, five extraction wells, and two monitoring/extraction wells.

The simplified process flow diagram (PFD) is shown in Figure 14-2. NaCl-saturated brine is injected into the mines producing about 535 million gallons of brine at an estimated grade of 7.6% KCl and 21% NaCl. The evaporation ponds concentrate and crystallize the brine to produce about 700,000 - 900,000 tpy of crystal at 12–14% K2O (19–22% KCl) with the remainder being largely halite. The crystals are mechanically harvested, re-pulped in double-saturated brine and pumped to the HB processing facility.

The crystals are statically screened with the oversize processed through a crusher and recycled. The screened crystal is combined with reagents and fed to flotation cells. The rougher flotation concentrate is forwarded to the agitated leach tank.

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			60

The leached solids are at a product grade of >95.5% KCl with a range of 60.5% to 62% K2O. The solids are dried, sampled, and conveyed to storage bins prior to transfer to the North Plant for compaction and shipment to sales.

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			61

Figure 14-1.    HB Evaporation Ponds

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			62

Figure 14-2.    HB Process Flow Diagram

RESPEC

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14.2Langbeinite Processing Facility

The East Plant was modified in 2003–2004 to allow dual processing to recover the K2O value from both the sylvite and langbeinite fractions of the ore. In 2016, the sylvite circuit was permanently closed. Langbeinite, marketed as the fertilizer Trio® brand of products, is recovered using dense media separation and a fine langbeinite recovery circuit. A simplified process flow diagram is included as Figure 14-3.

Currently about 1.2 million tpy (Mtpy) of ore is processed at a rate of 300 tph. The ore is crushed, screened, pulped, and rescreened. Coarse material is forwarded to the dense media separation (DMS) circuit. The DMS concentrate is water leached, debrined, and dried. The coarse product is separated into the three Trio® products. Fine material from the screening process is recovered using gravity separation, leaching, debrining, and drying. Fine material is upgraded to premium product using pelletization.

14.3North Compaction Plant

The North Plant provides classification, compaction, quality control, and load-out services for production from the HB Solar Solution Mine. A simplified flow diagram for the North Compaction Plant is presented in Figure 14-4.

Belly dump trucks unload HB product into a dump pocket. The material is then sent to surge bins. The product is screened, preheated, weighed, and sent to a compactor feed bin.

Material is screened to produce standard product or fed to the roll compactor, and resulting flakes are further reduced in size with the subsequent flake breaker and crusher to produce granular product. Product is then screened and sent to the curing dryer and screened once again before being sent to final product storage.

The product is shipped to market in trucks or rail cars.

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			64

14.4Tailings Facilities

There are three tailings storage facilities (TSF) at IPNM: East, West, and North.

The East TSF is shown in Figure 14-5. The New Mexico State Engineer in the Dam Safety Bureau required IPNM to evaluate as-built conditions and stability of the East TSF due to the lack of original construction calculations and drawings. IPNM completed the required geotechnical evaluation assessment in 2018. Based on that evaluation, a conceptual improvement plan was developed to address identified freeboard, spillway capacity, and embankment stability issues. IPNM is working with the New Mexico State Engineer to prioritize, approve and implement the plan. Full implementation will be phased over several years.

The West TSF, in Figure 14-6, is permitted for tailings disposal from the West Plant. Unsaturated brine is pumped onto the tailings where it is contacted with NaCl to produce a saturated brine for injection. The saturated brine flows to ponds below the tailings pile that manage brine inventory for injection into the HB Mine. The West TSF also stores tails from the West Plant, which is on care and maintenance. Total tailings volume is being reduced by the brine saturation process.

The North TSF in Figure 14-7 is only used to handle excess brine/water and has ample capacity.

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			65

Figure 14-3.    East Plant Process Simplified Flow Diagram

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			66

Figure 14-4.    North Plant Simplified Process Flow Diagram

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			67

Figure 14-5.    East Tailings Storage Facility

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			68

Figure 14-6.    West Tailings Storage Facility (HB Brine Recirculation)

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			69

Figure 14-7.    North Tailings Storage Facility (inactive)

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			70

15.0Infrastructure

The IPNM mines have a robust infrastructure in place. IPNM has adequate water rights at each of the mine properties. All of the mining operations are accessible by paved state or county highways and are accessible by rail. All of the operations obtain electric power from local utilities fed to recently upgraded substations. The infrastructure layout is shown in Figure 15-1.

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			71

Figure 15-1.    Layout of the Infrastructure

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			72

16.0Market Studies

Price projections are based on a combination of historic pricing trends and expectations of future potash consumption and production. Intrepid uses a variety of sources including, but not limited to, industry reports, company announcements, third-party market studies, and internal estimates when establishing a forecasted price. Intrepid compares its historic realized pricing to widely available benchmark prices, specifically the Midwest Warehouse potash price and the U.S. New Orleans Louisiana (“NOLA”) Barge Market potash price, to establish a historic price differential which it uses when analyzing future price expectations.

RESPEC

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2024 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 11, 2025			73

17.0Environmental Studies, Permitting, and Plans

IPNM holds numerous environmental, mining, safety, and other permits and governmental approvals authorizing the operations at each of the facilities. Operations are subject to permits for, among other things, extraction of salt and brine, discharges of process materials and waste to air and surface water, and injection of brine. IPNM is obligated to reclaim and remediate disturbed lands when they cease operations.

17.1Environmental Studies

IPNM has all necessary operating permits for the current operations and is in production, both underground and solution mining, and through the permit reporting maintains environmental compliance. Environmental studies are conducted for major project expansions. The most recent Environmental Assessment (EA) was completed in 2024 for the construction of new injection piping for the HB In-situ Solution mine. The work referenced the initial EIS for the HB In-Situ Solar Solution Mining Project EIS (DOI 2012).

17.2Waste and Tailings Disposal, Site Monitoring, and Water Management During and After Mine Closure

The property has three tailings’ impoundments, one of which is in current operation, that were described in Section 14. Tailings brine water is recycled for use in processing plants and solution wells. At closure, the tailings piles will dry and form a very hard, stable crust. No recontouring or revegetation of tailings piles are anticipated because the hard crust will provide adequate slope stability. The perimeter dikes will be stabilized for long-term integrity. Precipitation on the pile will dissolve some of the salt as it moves down into the brine pond, but is not anticipated to be saturated when it exits the pile. The tailings areas will be fenced off to minimize public access. Intrepid is in the process of reviewing the closure plan with the Bureau of Land Management and the New Mexico Environment Department Ground Water Quality Bureau.

17.3Permitting Status and Reclamation Bonds

The permitting status of each of the major permits is listed in Table 17-1. Bonds for mine closure and groundwater discharge are currently at a value of $4.057 million.

IPNM has timely applied for new permits and permit renewals necessary for continued operations, which are under review by regulatory agencies. Upon issuance, some of these permits may require us to increase our reclamation bonds.

17.4Agreements with Local Individuals

There are no specific agreements with local individuals or groups.

RESPEC

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Table 17-1.    Permitting Status

Common Name

Issuing Agency

Permit ID

Effective Date

Expiration Date

Bond Value

Note

Air Permit

New Mexico Environment Department (NMED) Air Quality Bureau

Title V Air Operating Permit P009-R3M1 (East Plant)

24-Apr-20

4-Apr-25

None

Title V operating permits have a 5-year permit term; a renewal application was timely filed. The application was ruled complete and is undergoing technical review by NMED.

Air Permit

NMED Air Quality Bureau

Title V Air Operating Permit P261-R1 (North Compaction Plant [NSR 0321-M8], West Floatation Plant [NSR 0421-M5, 0421-M5R1], HB Plant [NSR 4332-M21R3])

20-Dec-24

20-Dec-29

None

Groundwater Discharge Permit

New Mexico Environment: Department Ground Water Bureau (Water Quality Control Commission Regulations)

Discharge Permit No.: DP-1681

10-Jul-15

10-Jul-20

$3,349,000

Application for renewal submitted January 2020. Additional modification applications have been filed since the 2020 renewal application. MMED is reviewing the modification and has indicated they will issue modifications with the permit renewal upon completions of the review. Existing permit remains in effect until agency issues the renewed permit. Current bond amount is shown. Intrepid provided an updated Mine Reclamation and Closure Plan Cost Estimate to NMED GWB in June 2021 for the amount of $4.475 million. Awaiting NMED acceptance before updating bond. Bond currently held by NMED and covered in joint bonding arrangement with the Bureau of Land Management.

West/HB Plant Liquid Waste Permit

NMED Health Bureau

Permit No. 008609

25-Sep-18

Good for the life of the system.

None

HB reclaim

West/HB Plant Liquid Waste Permits

NMED Health Bureau

Permit No. 004446, 004447, 004448, 004449, 004450, 004451, 004452, 004453

9-Jan-18

Good for the life of the system.

None

Various West/HB liquid waste permits

East Plant Liquid Waste Permits

NMED Health Bureau

Permit No. 004437, 004438, 004439, 004440, 004441, 004442, 004444, 004445

9-Jan-18

Good for the life of the system.

None

Various East Plant liquid waste permits.

East Plant Liquid Waste Permit

NMED Health Bureau

Permit No. 004439

14-Jun-19

Good for the life of the system.

None

East Loadout tank 3A

East Plant Liquid Waste Permit

NMED Health Bureau

Permit No. 009340

4-Sep-19

Good for the life of the system.

None

East Leachfield LF1A

North Plant Liquid Waste Permits

NMED Health Bureau

Permit No. 004454, 004455, 004457, 004458

9-Jan-18

Good for the life of the system.

None

Various North Plant liquid waste permits

Radioactive Devices

NMED Radiation Control Bureau

License Number GA417-17

22-Oct-24

30-Nov-24

None

An extension of 120 days has been granted until the license renewal is completed by NMED RCB

Waterfowl Hazing Plan and Reporting

Bureau of Land Management – Carlsbad Field Office

HB Project Solar Evaporation Ponds, Stepped Avian Monitoring and Mitigation Plan

1-Jan-12

None

None

Intrepid New Mexico submits quarterly reports on its activities

Brine Effects on State Trust Lands

New Mexico State Land Office

Remediation of Brine Effects on State Trust Lands, Lease Numbers bl-0559 and hp-0005

11-April-18

N/A

$250,000

Remediation of brine release on State Trust Lands

Fresh Water Easements

new Mexico State Land Office, Oil, Gas and Minerals Division

Damage bond for freshwater easements WR-813

29-August-23

N/A

$43,000

CAM Plan

NMED Air Quality Bureau

West North and HB Compliance Assurance Monitoring Plan required by Title V Air Operating Permit P261-R1

Same as Title V permit

Same as Title V permit

None

CAM Plan

NMED Air Quality Bureau

East Compliance Assurance Monitoring Plan required by Title V Air Operating Permit P009-R3M1

Same as Title V permit

Same as Title V permit

None

Federal Explosives License

Bureau of Alcohol, Tobacco, and Firearms

Permit #5-NM-015-33-9J-00293

1-Sep-25

None

License covers shell crackers for shotguns. Used to control or scare away waterfowl from the ponds at all sites. This license is for all of Intrepid New Mexico.

Mine Operations and Closure Plans

Bureau of Land Management – Carlsbad Field Office

HB Solar Mine Operations and Closure Plan

31-May-21

31-May-31

$415,000

Intrepid NM provided an updated Mine Reclamation and Closure Plan and Closure Cost Estimate for HB to NMED GWB and concurrently with the BLM in June 2021 for the amount of $4.475 million. Awaiting NMED and BLM acceptance before updating the bond.

Mine Operations and Closure Plans

Bureau of Land Management – Carlsbad Field Office

East Mine Operations and Closure Plan North Mine Operations and Closure Plan West Mine Operations and Closure Plan

1977 1977 1977

Intrepid submitted draft Operations and Closure Plans to BLM. Those applications have not been approved and earlier plans remain in effect. Intrepid is working to provide revised Operations and Closure Plans to the BLM for these mines.

Well Permits

NM Office of State Engineer

Injection, Extraction, and Rustler Wells

Various

None

None

Permit status is undetermined at this time.

RESPEC

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17.5Closure Plans

Closure plans include the repurposing, demolition, and removal of surface infrastructure and safely securing shafts for public safety. Mine operations and closure plans are periodically filed with the BLM. The proposed methods of abandonment are designed to protect unmined recoverable reserves and other resources. While each mine area has specific detailed closure requirements, the major closure steps include closure of shafts and relief wells, tailings stabilization, asbestos removal, building demolition, reclamation of building footprints; reclamation of other areas, disposal of any contaminated soils, reclamation of landfills, reclamation of roads, and remediation of Recognized Environmental Concerns (REC).

Upon completion of solution mining operations at the HB Mine, all structures, wells, pipelines, and ancillary equipment located on Federal, State, and Intrepid fee land will be abandoned, demolished, razed, and hauled to an appropriately permitted local landfill for proper disposal.

17.6Adequacy of Current Plans and Compliance

It is the QP’s opinion that the current plans are adequate to address any issues related to environmental compliance, permitting, and local individuals or groups.

RESPEC

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18.0Capital and Operating Costs

18.1Capital Cost Estimate

Capital items necessary to complete the mine plan include the pipeline and injection/extraction wells for the AMAX extension of the HB Solar Solution Mine. The budgeted mine reclamation capital costs are included for 2025 through 2028. Intrepid has provided the mining costs history and sales data since 2007 and budgeted capital costs. With the West Mine taken offline, many of the capital items were recovered from the West Mine for use in the East Mine, reducing the amount of new capital required to sustain East Mine operations. The remaining reclamation cost is included in year 2049 as $45.6 million. Any necessary reclamation work beyond Year 25 is allocated to Year 25 to establish contracting. The sustaining capital is outlined in the budget and includes major equipment replacement. Capital costs are shown in Table 18-1.

18.2Operating Cost Estimate

Intrepid provided the mining costs history and sales data since 2007. The cash operating cost including warehouse, handling, and royalty is provided in Table 18-1. These costs are subject to vary with changes in production. Cash production costs do not include interest, depreciation, depletion, or income taxes. A by-product credit of $57 per ton is applicable.

18.3Accuracy Discussion

Because the operating costs are based on historical actual expenses, the cost estimates are at an accuracy of at least +/- 15%.

Capital costs are based on actual bids or recent purchases of capital items plus an inflation factor. The capital costs estimates are at an accuracy of at least +/- 25% and contingency levels are less than 25%.

Reclamation costs are based on the most recent reclamation bond update and asset retirement obligations and are estimated to be accurate to at least +/- 15%.

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Table 18-1.    Major Remediation and Capital Cost Estimate

Year Number			Year			Remediation			Sustaining Capital			Capital
1			2025			$200,000			$6,800,000			$7,300,000
2			2026			$900,000			$5,500,000			$2,600,000
3			2027			$1,325,000			$5,700,000			$7,000,000
4			2028			$2,921,500			$5,700,000
5			2029						$5,700,000
6			2030						$5,700,000
7			2031						$5,700,000
8			2032						$5,700,000
9			2033						$5,700,000
10			2034						$5,700,000
11			2035						$5,700,000
12			2036						$5,700,000
13			2037						$5,700,000
14			2038						$5,700,000
15			2039						$5,700,000
16			2040						$5,700,000
17			2041						$5,700,000
18			2042						$5,700,000
19			2043						$5,700,000
20			2044						$5,700,000
21			2045						$5,700,000
22			2046						$5,700,000
23			2047						$5,700,000
24			2048						$5,700,000
25			2049			$45,595,200			$5,700,000

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Table 18-2.    Unit Mining Cost 2025-2029

Cost Category			Cost ($/Product Ton)			Cost Distribution
Labor			122			47		%
Maintenance Supplies			24			9		%
Operating Supplies Including Reagents			23			9		%
Natural Gas, Electricity and Fuel			15			6		%
Leases, Property Tax, Insurance, etc.			26			10		%
Subtotal			211			81		%
Warehouse			17			7		%
Royalties			17			6		%
Environmental Remediation and Other			15			6		%
Cost of Goods Sold			260			100		%
By-product Credit			57
Cost of Goods Sold with By-product credit			203

19.0Economic Analysis

To evaluate the viability of mining the IPNM mines’ reserves, an economic analysis was conducted. Annual revenue and production cost schedules were used to build a projected cash flow to accompany the mine plan. The costs and sales price parameters were assumed to be constant US dollars.

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19.1Key Assumptions, Parameters, and Methods

The property has a long history of operation at this location. The assumption list for the economic analysis is shown in Table 19-1.

Table 19-1.    Economic Analysis Assumptions

Parameter			Assumption
Potash Sale Price (mine site)			$360/t
Shipping Potash			$30/t
Average Potash Production Target (25-yr avg.)			136,500 tpy
Interest Rate			0–12% APR
Income Taxes (State and Federal)			26%

19.2Economic Analysis

For a property in operation, the economic viability may be implied. The cash flow was developed using the mine plan and is listed in Table 19-2. The after-tax cash flow is listed in Table 19-3. The cashflows are shown graphically in Figures 19-1 and 19-2 for pre- and after-tax, respectively. Annual ore production, ore grade and tons of product produced used in both the pre-tax and after-tax cash flow analyses are taken from the annual life of mine production schedule as shown in Section 13: Mining Methods included in this Technical Report Summary. The annual life of mine production schedule provides the calculation of product tons resulting from tons of ore mined and the associated grade of ore mined. The East Mine has a remediation cost of $17.6 M not included in the HB Mine reserves cash flow.

19.3Sensitivity Analysis

NPV sensitivity analyses were run using variants in commodity price and operating costs for the pre-tax cash flow. The results of the sensitivity analysis are shown in Table 19-4 and graphically in Figure 19-3.

19.4Discussion

Economic analysis using the price and cost assumptions shows the operation is expected to continue to be profitable over the reserve life.

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Table 19-2.    Estimated Pre-Tax Cash Flow

			Five-Year Periods
Item			2025 - 2029			2030 - 2034			2035 - 2039			2040 - 2044			2045 - 2049
Tons of product production			726,500			746,100			692,800			639,400			606,700
Potash Sales price per ton mine site			$	360		$	360		$	360		$	360		$	360
Transportation cost per ton			$	30		$	30		$	30		$	30		$	30
Net sales price per ton			$	330		$	330		$	330		$	330		$	330
Period net revenue			$	239,731,000		$	246,202,000		$	228,608,000		$	210,989,000		$	200,222,000
Cost per product ton, excluding depreciation			$	211		$	206		$	219		$	234		$	245
Warehouse & Handling per product ton			$	17		$	17		$	17		$	17		$	17
Royalties per product ton			$	17		$	17		$	17		$	17		$	17
Environmental remediation and other non-inventory costs			$	15		$	15		$	16		$	17		$	18
Less byproduct revenues			$	(57)		$	(56)		$	(60)		$	(65)		$	(68)
Operating costs per production ton, excluding depreciation			$	203		$	199		$	209		$	220		$	228
Less period operating costs, excluding depreciation			$	(147,191,000)		$	(148,601,000)		$	(144,770,000)		$	(140,930,000)		$	(138,584,000)
Less period capital			$	(46,300,000)		$	(28,500,000)		$	(28,500,000)		$	(28,500,000)		$	(28,500,000)
Less period remediation			$	(5,347,000)		-			-			-			$	(45,595,000)
Estimated period pre-tax cashflow			$	40,893,000		$	69,101,000		$	55,338,000		$	41,559,000		$	(12,457,000)

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Table 19-3.    Estimated After-Tax Cash Flow

			Five-Year Periods
Item			2025 - 2029			2030 - 2034			2035 - 2039			2040 - 2044			2045 - 2049
Tons of product production			726,500			746,100			692,800			639,400			606,700
Potash Sales price per ton mine site			$	360		$	360		$	360		$	360		$	360
Transportation cost per ton			$	30		$	30		$	30		$	30		$	30
Net sales price per ton			$	330		$	330		$	330		$	330		$	330
Period net revenue			$	239,731,000		$	246,202,000		$	228,608,000		$	210,989,000		$	200,222,000
Cost per product ton, excluding depreciation			$	211		$	206		$	219		$	234		$	245
Warehouse & Handling per product ton			$	17		$	17		$	17		$	17		$	17
Royalties per product ton			$	17		$	17		$	17		$	17		$	17
Environmental remediation and other non-inventory costs			$	15		$	15		$	16		$	17		$	18
Depreciation and Depletion			$	106		$	103		$	111		$	120		$	127
Less byproduct revenues			$	(57)		$	(56)		$	(60)		$	(65)		$	(68)
Total Operating Costs			$	309		$	302		$	320		$	341		$	355
Total operating costs			$	(224,121,000)		$	(225,531,000)		$	(221,700,000)		$	(217,860,000)		$	(215,514,000)
Estimated Pre-tax Income			$	15,610,000		$	20,671,000		$	6,908,000		$	(6,871,000)		$	(15,292,000)
Estimated Taxes at 26%			$	(4,059,000)		$	(5,374,000)		$	(1,796,000)		$	1,786,000		$	3,976,000
Estimated After Tax Income			$	11,551,000		$	15,297,000		$	5,112,000		$	(5,085,000)		$	(11,316,000)
Add back Depreciation and Depletion			$	76,930,000		$	76,930,000		$	76,930,000		$	76,930,000		$	76,930,000
Less Capital			$	(46,300,000)		$	(28,500,000)		$	(28,500,000)		$	(28,500,000)		$	(28,500,000)
Less Remediation			$	(5,347,000)		$	—		$	—		$	—		$	(45,595,000)
After-Tax Cash Flow			$	36,834,000		$	63,727,000		$	53,542,000		$	43,345,000		$	(8,481,000)

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Figure 19-1.    Estimated Pre-Tax Cash Flow

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Figure 19-2.    Estimated After-Tax Cash Flow

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Table 19-4.    NPV Pre-Tax Estimate

Interest Rate			NPV
(% APR)			($Million)
0			$194
5			$126
8			$99
10			$85
12			$74

Table 19-5.    NPV After-Tax Estimate

Interest Rate			NPV
(% APR)			($Million)
0			$189
5			$120
8			$93
10			$80
12			$69

Figure 19-3.    Pre-Tax NPV Sensitivities (APR 8%)

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Figure 19-4.    After-Tax NPV Sensitivities (APR 8%)

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20.0Adjacent Properties

In preparing the report, the QP indicated that the IPNM operations and The Mosaic Company operations, although mining in the same geologic deposit, each has its own plants and infrastructure and are entirely independent of each other. It is the qualified person’s opinion that The Mosaic Company operations are not material in relation to IPNM.

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21.0Other Relevant Data and Information

The Mine Safety and Health Administration (MSHA) is the governing agency for IPNM’s underground mines and related surface facilities in New Mexico. As required, these operations are regularly inspected by MSHA personnel. The HB Plant is governed by the Occupational Safety and Health Administration (OSHA).

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22.0Interpretation and Conclusions

RESPEC’s QP review and resource and reserve estimations were performed to obtain a reasonable assurance of the estimates from the data provided by Intrepid and IPNM. The QP believes the findings are reasonable and realistic and have been developed using accepted engineering practices.

As with all geologic estimations, there is a level of risk and uncertainty because of sparse data. These estimates are considered reliable based on the historical success of mining operations recovering langbeinite and potash from this deposit. There is more uncertainty in future mining of the ore zones that have not been historically mined.

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23.0Recommendations

The QP recommends that IPNM continue planning for the challenges in solution mining with the presence of low levels of carnallite and plan for the expansion pipeline and wells for the AMAX mine. The property is in operation, and no additional work beyond current confirmation drilling is recommended.

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24.0References

Agapito (2007), “Determination of Estimated Proven and Probable Reserves at Intrepid Potash—New Mexico, LLC,” report prepared for Intrepid Potash, December 12, 19 pp.

Agapito (2008), “Determination of Estimated Proven and Probable Reserves for the Planned HB Solution Mine for Intrepid Mining, LLC,” report prepared for Intrepid Potash, March 14, 25 pp.

Agapito (2009), “Reserve Update for the Carlsbad HB, East and West Mines for Intrepid Potash, Inc.,” report prepared for Intrepid Potash, Inc., February 27, 29 pp.

Agapito (2010), “Determination of Estimated Proven and Probable Reserves at Intrepid Potash—New Mexico, LLC,” report prepared for Intrepid Potash, Inc., February 4, 34 pp.

Agapito (2011), “Determination of Estimated Proven and Probable Reserves at Intrepid Potash—New Mexico, LLC,” report prepared for Intrepid Potash, Inc., February 1, 34 pp.

Agapito (2012), “Determination of Estimated Proven and Probable Reserves at Intrepid Potash—New Mexico, LLC,” report prepared for Intrepid Potash, Inc., January 27, 32 pp.

Agapito (2013), “Determination of Estimated Proven and Probable Reserves at Intrepid Potash—New Mexico, LLC,” report prepared for Intrepid Potash, Inc., February 11, 38 pp.

Agapito (2014), “Determination of Estimated Proven and Probable Reserves at Intrepid Potash—New Mexico, LLC,” report prepared for Intrepid Potash, Inc., January 28, 42 pp.

Agapito (2015), “Determination of Estimated Proven and Probable Reserves at Intrepid Potash—New Mexico, LLC,” report prepared for Intrepid Potash, Inc., January 22, 43 pp.

Agapito (2016), “End-of-Year 2015 Intrepid Potash, Inc. Reserve for the Carlsbad HB Solar Solution, East and West Mines Intrepid Potash—New Mexico, LLC,” report prepared for Intrepid Potash, Inc., January 25, 35 pp.

Agapito (2017), “End-of-Year 2016 Intrepid Potash, Inc. Reserve for the Carlsbad HB Solar Solution, East and West Mines Intrepid Potash—New Mexico, LLC,” report prepared for Intrepid Potash, Inc., February 1, 44 pp.

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Agapito (2018), “End-of-Year 2017 Intrepid Potash, Inc. Reserve for the Carlsbad HB Solar Solution, East and West Mines,” report prepared for Intrepid Potash, Inc., January 21, 43 pp.

Agapito (2019), “2018 Determination of Estimated Proven and Probable Reserves for the Carlsbad HB Solar Solution, East and West Mines,” report prepared for Intrepid Potash Inc., February 14, 36 pp,

Agapito (2020), “2019 Determination of Estimated Proven and Probable Reserves for the Carlsbad HB Solar Solution, East and West Mines,” report prepared for Intrepid Potash Inc., January 24, 2020, 67 pp.

Agapito (2021), “Determination of Estimated Proven and Probable Reserves for the Carlsbad HB Solar Solution, East and West Mines,” report prepared for Intrepid Potash Inc., January 24, 2021, 67 pp.

Agapito (2022), “2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico” prepared for Intrepid Potash, February 18, https://www.sec.gov/Archives/edgar/data/1421461/000142146122000011/ipi12312021exhibit961a.htm

Backman, G. O. (1984), “Regional Geology of Ochoan Evaporites, Northern Part of Delaware Basin,” Circular 184, Socorro, NM: New Mexico Bureau of Mines and Mineral Resources, 25 pp.

Barker, J. M. and G. S. Austin (1993), “Economic Geology of the Carlsbad Potash District, New Mexico,” Guidebook 44th Field Conference, Carlsbad Region, New Mexico and West Texas, New Mexico Geological Society, pp. 283–291.

Barker, J and G. Austin (1999), “Overview of the Carlsbad potash district, New Mexico,” New Mexico Bureau of Mines & Mineral Resources, Circular 207, pp. 7–16.

Bruhn, H. H. and E. H. Miller (1954), “Potash Mining Methods,” Mining Engineering, June, pp. 608–612.

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Cheeseman, R. J. (1978), "Geology and Oil/Potash Resources of Delaware Basin, Eddy and Lea Counties, New Mexico," Circular 159, Socorro, NM: New Mexico Bureau of Mines and Mineral Resources (NMBMMR), pp. 7–14.

CFR (2025), “Disclosure by Registrants Engaged in Mining Operations,” § 229.1300, last amended January 24, available at < ecfr.gov/current/title-17/chapter-II/part-229/subpart-229.1300/section-229.1300>.

Federal Register (2012), “Oil, Gas, and Potash Leasing and Development Within the Designated Potash Area of Eddy and Lea Counties, NM,” available at <https://www.federalregister. gov/documents/2012/12/04/2012-29393/oil-gas-and-potash-leasing-and-development- within-the-designated-potash-area-of-eddy-and-lea>, 77 FR 71814, December 4, 5 pp.

Federal Register (1986), “Appendix A, Guidance for Managing the Secretary’s Potash Area,” available at <https://www.nm.blm.gov/cfo/HBIS/docs/o_Appendix_A.pdf>, 51 FR 39425, October 28, 48 pp.

Griswold, G. G. (1982), “Geologic Overview of the Carlsbad Potash-Mining District,” Circular 182, Socorro, NM: New Mexico Bureau of Mines and Mineral Resources, pp. 17–22.

Gunn, R. C. M. and J. M. Hills (1978), “Geology of the Tenth Potash Ore Zone: Permian Salado Formation, Carlsbad District, New Mexico,” Open File Report 146, Socorro, NM: New Mexico Bureau of Mines and Mineral Resources (NMBMMR), 43 pp.

Haworth, R. G. (1949), “Mining Potash Ores in Carlsbad Area,” American Institute of Mining and Metallurgical Engineers, Mining Transactions, 184:381–382.

Herne, V. and T. McGuire (2001), “Mississippi Potash, Inc.’s Underground Operations,” Underground Mining Methods, (Hustrulid, W. A. and R. L. Bullock, eds.), Littleton, CO: SME, pp. 137–141.

Jones, C. L., C. G. Bowles and A. E. Disbrow (2001), “Generalized Columnar Section and Radioactivity Log, Carlsbad District,” Open File Map, USGS, 1 sheet.

Kirby, R. E. (1974), “Mine Modernization at AMAX’s Carlsbad Property,” Preprint 74-AU-302, Salt Lake City: Society of Mining Engineers of AIME, 22 pp.

Kroenlein, G. A., (1939), "Salt, Potash and Anhydrite in Castile Formation of Southeast New Mexico," Bull. American Association of Petroleum Geologists, 25(11):1682–1693.

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Lewis, J. P. (2006), “Evaluation of Potash Content in the Conoco Phillips Peakview II Well,” Eddy County, New Mexico: Intrepid Mining LLC, Denver, Colorado, 10 pp.

Lewis, J. P. (2007), “Carlsbad Xsec.jpg,” retrieved from FTP Site, accessed November 15.

Linn and Adams (1966),"Barren Halite Zones in Potash Deposits Carlsbad, New Mexico," Second Symposium on Salt, Cleveland, OH: Northern Ohio Geological Society, Inc., pp. 59–69.

Lowenstein, T. K. (1988), "Origin of Depositional Cycles in a Permian 'Saline Giant': The Salado (McNutt Zone) Evaporites of New Mexico and Texas," 100:592–608.

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State of New Mexico Energy, Mineral, and Natural Resources Department (2024), New Mexico Oil and Gas Division Case No. 23655, Order No. R-111-Q.

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25.0Reliance on Information

The QP relied on lease holdings and permitting status provided by Intrepid and IPNM for this reserve evaluation.

RESPEC