Broker report - Aust Potash Ltd, page-23

SOP and MOP are different markets. If the Sodium Chloride in MOP isn't a problem, farmers would be nuts to use more expensive SOP. However, if soils are approaching salt limits, as most WA wheat lands are, they cannot increase K with MOP.

I believe the 70,000t pa market for SOP in Australia will grow considerably on KLL's supply. This is also the view of the WA Dept of Agriculture and federal cabinet. I joked earlier that SOP will be applied by canny farmers intending to sell land a year hence to add both Sulphur and K. Even that would add strongly to demand.

If not, it can go to export. We will find out in about two years.

CONVICTION BUY

Ash