Saskatchewan Ministry of Environment Determines Disley Initial Production Module is Not a “Development”; No Environmental Impact Assessment Required
Buffalo Potash Corporation (TSXV: BUFF) (OTCQB: BLPTF) (FRA: VU5) (the “Company” or “Buffalo“), is pleased to announce that it has received a ministerial determination (the “Determination”) from the Saskatchewan Ministry of Environment (“MOE”) confirming that its Initial Production Module at its Disley Project (the “Project”) does not meet the criteria of section 2(d) of the Environmental Assessment Act and is therefore not a “development” that is required to undergo an Environmental Impact Assessment (“EIA”).
Mr. Steve Halabura, P.Geo., Chief Executive Officer and Director of the Company, commented: “This is a landmark regulatory achievement for Buffalo and reflects the environmental soundness of the sustainable development approach Buffalo is undertaking at Disley, highlighted by minimal surface disturbance, no salt tailings or brine ponds, and most importantly – minimal freshwater consumption. We appreciate the Ministry’s timely and thorough review of our application and are excited about how this will support our goal of first production at Disley in early 2027.”
Mr. Quinton Hardage, P.Eng., PMP, President and Chief Operating Officer of the Company, commented: “Potash solution mining in Saskatchewan has always been based on oil and gas technology. The original solution mines that were built in the 1960s used the best of what the oil and gas sector had to offer in that era and that’s exactly what we’re doing at Disley – sixty years of innovation later. A practical result of being able to solution mine more efficiently is that we are no longer required to locate a mine where high-grade potash and abundant freshwater happen to coincide – putting new high-quality targets in play.”
Basis for Determination
The Company’s technical proposal, prepared by independent Saskatchewan environmental consultancy Axiom Group, was submitted to the MOE on August 20, 2026. Under section 2(d) of the Act, a project is a “development” that must undergo an EIA if it is likely to: have an effect on any unique, rare or endangered feature of the environment; substantially utilize any provincial resource and in so doing pre-empt the use, or potential use, of that resource for any other purpose; cause the emission of any pollutants or create by-products, residual or waste products which require handling and disposal in a manner that is not regulated by any other Act or regulation; cause widespread public concern because of potential environmental changes; involve a new technology that is concerned with resource utilization and that may induce significant environmental change; or have a significant impact on the environment or necessitate a further development which is likely to have a significant impact on the environment.
Following its screening, the MOE concluded that the Project met none of the six criteria in section 2(d) of the Act and is therefore not required to complete an EIA. The Determination is subject to terms and conditions, including the Project being carried out as described in the technical proposal and that the MOE be advised of any significant change or if work is not commenced within two years, and the Project remains subject to all other regulatory requirements.
Buffalo also hosted two public information sessions in Lumsden, Saskatchewan, on April 30 and July 9, 2026. Feedback from both sessions was supportive and no outstanding environmental concerns were raised. The Company has advised the Rural Municipalities of Dufferin No. 190 and Lumsden No. 189 of the Project and maintains ongoing engagement with landowners and other stakeholders in the region.
Disley Project Development Plan
The IPM is designed to produce 125,000 tonnes per annum (“TPA“) of soluble-grade potash and is the first of three planned solution mining facilities at the Disley Project. The IPM has a lower initial CAPEX requirement compared to the full Disley Project build-out and is targeted to reach first production in Q1 2027. At full build-out comprising the IPM and two 500,000 TPA mines (“Disley East” and “Disley West“), the Disley Project would be expected to produce up to 1,125,000 TPA of potash, as contemplated in Buffalo’s preliminary economic assessment titled “NI 43-101 Preliminary Economic Assessment Technical Report on the Disley Potash Project, Saskatchewan, Canada” dated May 21, 2026, and effective April 15, 2026 (the “PEA“), a copy of which is available on the Company’s SEDAR+ profile at www.sedarplus.ca. On a standalone basis, the PEA estimates a payback period for the IPM of approximately 12 months from the start of production.(2) However, there is no guarantee that the Company will be able to achieve production.
The Company’s production decision for the IPM is not based on a feasibility study with mineral reserves demonstrating economic and technical viability, and such production decisions are historically associated with a higher risk of economic and technical failure (see “Note 3 – Production Decision Cautionary Statement”).
The IPM is intended to establish initial cash-flow from production at a lower upfront capital cost, while building the operational and technical foundation for full-scale development. Development of the IPM is anticipated to be broken down into five phases:
- Source and disposal wells (complete);
- Horizontal Line-Drive (“HLD“) drilling (ongoing);
- Brine circulation;
- Site development; and
- Surface processing.
Disley Project – General Overview
The Disley Project is located approximately 50 kilometers northwest of Regina and covers 10,610 hectares (Crown and Freehold mineral rights). The property is situated immediately to the east of the K+S Bethune potash solution mine and north of the Mosaic Belle Plaine potash solution mine – both of which are among the largest producing potash solution mines in the world. In the opinion of management, the Disley Project is in one of the most favorable areas of Saskatchewan for potash solution mining (see Figure 1) as evidenced by the success of these neighboring operations.(1)
On May 22, 2026, Buffalo released the results of its maiden NI 43-101 Mineral Resource Estimate and PEA for the Disley Project, prepared by Micon International Co Limited. The PEA outlined a phased, modular development plan contemplating full-scale production of up to 1,125,000 TPA of potash across three solution mining facilities, with an estimated after-tax net present value (NPV) of US$1.1B at a discount rate of 8% and estimated internal rate of return (IRR) of 30%.(2) Readers are encouraged to refer to Buffalo’s April 27, 2026 and May 22, 2026 news releases and the NI 43-101 technical report filed on SEDAR+ for complete details of the PEA and Mineral Resource Estimate.
