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Global population increase, which shows no sign of waning, is continually diminishing the amount of arable available for horticultural endeavours, as communities continually encroach upon traditional farmlands. All the while, demand for crop output is continually rising.

This increasing demand is being driven by several factors. Firstly, a larger global population simply means more mouths to feed. Another contributor is the rapid expansion of the middle class in densely populated developing nations such as China and India. With their rise in wealth, and thus disposable income, has come a dietary shift toward increased consumption of meat. More and more of crop yield is being diverted toward feeding livestock, and it can require up to 20 kg of grain to raise 1 kg of beef. Additionally, spiking demand for biofuels, primarily ethanol from corn, is putting pressure on available crop raising land. In some jurisdictions, mandatory percentages of ethanol content in automobile fuel have even been legislated. All of these circumstances have resulted in an increasing demand for crops, as supply of fertile land necessary to grow them dwindles.

Farmers are reacting to this situation by attempting to increase yields from their valuable land resource in three ways: increasing the number of crops they grow annually, growing higher yield varieties, and by foregoing proven beneficial practices such as crop rotation in favour of repeatedly growing higher priced grains. These responses cause EXPONENTIAL depletion of soil nutrients relative to traditional agricultural methods.

Potassium is one of the primary elements essential for plant growth, and it is principally derived from potash. As a result, potash has become a valuable, and increasingly sought after resource for the production of fertilizers, in addition to its traditional industrial applications.

The recent global economic downturn has resulted in many farmers opting to forego or cut back their use of fertilizers, in order to maintain their profit margins. This practice is clearly UNSUSTAINABLE. The world will witness declining crop yields within one or two growing seasons, precipitating a necessary return to soil nutrification.

The demand for Potash will be largely determined by the demand for fertilizer, and by extension, the inevitable escalation of the aforementioned trends.

The tonnages, grades, and other technical data are taken from historical estimates prior to the implementation of NI 43-101. A qualified person as defined under NI 43-101 has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. First Lithium Resources is not treating the historical estimates as current mineral resources or mineral reserves as defined in NI 43-101 and the historical estimate should not be relied upon.