Appian Capital Advisory LLP, the investment advisor to long-term value-focused private equity funds that invest solely in mining and mining-related companies, today announces that it has entered into a C$85,000,000 term loan facility financing transaction (the "Credit Transaction") with Western Potash Corp. ("Western Potash"), the wholly owned subsidiary of Western Resources Corp. ("Western Resources"). Proceeds of the Credit Transaction will enable Western Potash to complete the remaining construction and development of the Milestone Phase I Project (the "Project"), Western Potash's MOP potash project located in Saskatchewan, Canada.

The Credit Transaction is comprised of the following, with funding subject to customary terms and conditions:

1.  A six-year term loan facility of up to USD equivalent of C$85,000,000, at an interest rate of 12.5% per annum;

2.  The grant of a 1.5% royalty based on the gross revenue of the Project to Appian; and

3.  Issuance to Appian by Western Resources of 20,774,030 warrants, allowing Appian, after exercise, to acquire up to 9.9% of Western Resources' issued and outstanding common shares. The exercise price is at a 25% discount to the 5-day VWAP on April 28, 2022, the execution date of the Facility Agreement.

The Credit Transaction is a strong fit within Appian's investment mandate, providing attractive risk-adjusted returns and alignment with Western Resources through royalty and warrant upside, while maintaining downside protection through a senior secured position. It provides Appian with upside exposure to the potash commodity market through the royalty and any future production expansions through the warrants package.

The Project has strong fundamentals including:

• Located in a tier-1 jurisdiction, the Project has near-term production potential expected to begin in Q2 2023 and achieve run-rate production approximately 1 year later, allowing it to take advantage of favorable Potash market dynamics 
   
• Phase I run-rate production of 146,000 tonnes per annum MOP and a 40 year mine life. Potential to expand to a larger Phase II of 1.4 million tonnes per annum after successful completion of Phase I
   
• Environmentally friendly solution mining method leaves no salt tailings on the surface
   
• Efficient operating costs in the middle of the cost curve (on a US Midwest delivered basis)
   
• Long-term off-take agreement with Archer Daniels Midland (NYSE: ADM) for 100% of the potash production from the Project

Michael W. Scherb, Founder and CEO of Appian, commented: "Appian is delighted to be supporting Western Resources to develop the Milestone Phase I Project. This transaction demonstrates the continued success of our dedicated credit and royalties offering, highlighting our ability to invest through the capital structure and provide non-dilutive financing for mining companies. The value that our market-leading technical team brings is also a key differentiator, with our expertise helping project owners to maximise potential and returns.

This is a strong fit with Appian's investment mandate, providing attractive risk-adjusted returns and potential upside, supported by a robust potash asset with exposure to growing global demand for agricultural commodities."