PROJECT FINANCE

Note that some options have started to be exercised and others are already in the money!

Page 8 from March Quarterly Report:-

The balance of unlisted options as at 31 March 2016 was as follows:
Option Expiry Date Number of Options Exercise Price
29 November 2016 6,000,000 $0.340
17 November 2017 5,000,000 $0.278
30 March 2018 11,635,232 $0.35
29 May 2018 750,000 $0.527
31 May 2018 600,000 $0.550
04 November 2018 1,000,000 $0.408

Also:

Performance rights on issue at 31 March 2016 are subject to the following vesting conditions:
Class 1:
 308,000 upon completion of securing finance for the development of Colluli.
Class 2:
 75,000 upon granting of a Mining License for Colluli; and
 75,000 upon completion of securing finance for the development of Colluli.
Class 4:
 700,000 upon awarding of the Colluli mining licence; and
 800,000 upon commencement of construction of the production facility for Colluli.

This means more finance for DNK.

PROJECT FINANCE
As announced on 19 April 2016, Danakali has signed non-binding MOUs with 8 multinational parties
throughout Northern Africa, Europe, Middle East and North America for the offtake of SOP from Colluli.
High quality representative samples produced from the Colluli resource were provided for quality control
assessment by prospective customers.
The combined offtake volumes in the MOUs exceed 800ktpa in both standard and granular form, which
compares to Colluli’s design production capacity of 425ktpa (Module I only). Engagement with potential
Asian customers has yet to commence, and represents strong potential for additional product volume
interest.

The impact of just one signing I believe will be a domino effect!

Regards,
WC