SUSTAINABLE

PHOSPHATE

ASX

PHO

QUARTERLY ACTIVITIES & CASHFLOW

ASX Announcement 28 July 2022

only

REPORT FOR QUARTER ENDING

30 June 2022

PhosCo is targeting:

  • 100% ownership of Chaketma.
  • Optimal development route for a potential large scale, world class phosphate fertilizer project leveraging work completed from 2015-2021.

HIGHLIGHTS

use

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Tenement applications submitted leveraging

Chaketma Phosphate Project

PhosCo's strong in-country team:

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Preparations are well advanced and positive

- Sekarna Phosphate Project (128km2): A large

ongoing engagement with the Tunisian Government

scale, outcropping phosphate target located

for grant of a Development Concession at PhosCo's

10km northeast of Chaketma. Reported high

flagship Chaketma Phosphate Project.

grade rock chip samples grading between

●●

GK Resource Update expected shortly following a

19.7% and 27.8% P₂O₅.

delay to incorporate additional drilling to support a

- Northern Tunisia Base and Precious Metals

new, simplified interpretation comprising a single

Project (668km2): Multiple base and precious

thick, higher-grade zone.

metal targets neighbouring existing granted

●●

Jan Jansen appointed in July 2022 to lead the

tenements including the Kef el Ageb target

personal

Chaketma Phosphate Project team as Project Director

comprising a 9km long copper and gold anomaly

responsible for overseeing the Updated Scoping Study

defined by rock chip and soil samples with grades

(due in August 2022) and preparing for a Bankable

up to 1.7g/t Au and 1.1% Cu.

Feasibility Study. Mr Jansen, a mining engineer with

●●

Option holders are reminded that their 10 cent

more than 30 years-experience including phosphate

options expire on 31 August 2022.

operations, will be based in Tunisia.

●●

PhosCo held cash of approximately A$1.8M at the

Fertilizer prices continued to perform strongly, with

●●

end of the June 2022 quarter, with an additional

rock phosphate prices increasing 130% to US$288/t

$2.0M received in July 2022.

compared with one year ago.

Corporate

September 2022 Quarter

In July 2022 a number of key shareholders, including

●●

Planned Activity

Lion Selection Group, Retzos Group, Lion Manager,

ForPhosCo Directors, and other shareholders exercised

●●

Mineral Resource Update for the GK deposit

their 10 cent options early, raising over $2M.

within the Chaketma Phosphate Project to

●●

Debt advisors engaged to assist with a finance

include an additional 21 holes (previously

plan to develop Chaketma leveraging positive

10 holes were used).

early engagement with several development and

●●

Updated Scoping Study following completion

commercial banks.

of the GAP Analysis to determine work

●●

Seizure case against TMS ongoing for its 48.99%

required to complete a Chaketma BFS due for

release in August 2022.

interest in Chaketma with a decision now expected

in the December 2022 quarter.

●● Chaketma field work including Light

Detection and Ranging (LIDAR) survey of

project area.

ASX

PHO

Overview

PhosCo Ltd ('PhosCo or the 'Company')

(ASX:PHO) is an ASX-listed company focused on the potential large scale, world class development of the Chaketma Phosphate Project in Tunisia.

Chaketma Phosphate Project

●●

148.5Mt @ 20.6% P₂O₅ Resource.

●●

onlyExploration potential across six prospects.

●●

Serviced by road, rail and energy networks

(see Figure 1).

●●

Access to Europe and global trade routes through

existing ports.

●●

Experienced technical team with phosphate

industry knowledge.

●●

useReview of historic work 2015 - 2021 underway to

select optimum development route.

●●

Further drilling completed since 2014 extends and

infills the Inferred Resource at the GK deposit and is

being compiled with a view to a resource update in

the September 2022 quarter.

Figure 1 Location of the Chaketma Phosphate Project

Chaketma Development Concession

The Chaketma Exploration Permit remains valid

and Scoping Study Update

and in good standing whilst the application is being

On 11 July 2022, PhosCo announced that it has been

considered.

PhosCo is currently preparing an Updated Scoping

liaising with the Tunisian Government in relation to

Study for Chaketma following completion of the GAP

advancing the application for a Mining Concession

Analysis and is targeting a release in August 2022. The

at the Chaketma Phosphate Project ('Chaketma'

Scoping Study will also determine the work required to

or the 'Project'). In late 2017 Chaketma Phosphates

complete a BFS for Chaketma which is expected to be

SA (CPSA), owned 50.99% by PhosCo1, applied to

convert the Chaketma Exploration Permit to a Mining

completed over the following 12-month period.

personalConcession ahead of the February 2018 deadline.

GK Resource

The Chaketma Mining Concession has not yet

been granted and the application remains under

On 11 July 2022, PhosCo announced that its geological

consideration by the mining administration in Tunisia.

team have completed a comprehensive first-principles

CPSA previously submitted a range of feasibility work

review into the geological model for the GK deposit

which is one of the key phosphate occurrences within

to the Tunisian Government in support of the Mining

Chaketma. The new, simplified interpretation for the

Concession application. The bulk of this work has been

Foraccepted by the Government, who have requested

GK deposit is based on 31 drill holes (vs 10 drill holes for

an updated finance plan for the Project proving the

the previous Resource Estimate) and trench sampling,

and supports a single thick, higher-grade domain

capability to finance the development. Following

comprising the core of the deposit. The additional

PhosCo assuming management control of CPSA in late

drilling and simplified new interpretation identifies a

2021, debt advisors HCF International Advisors have

higher grade zone that wasn't previously recognised.

been engaged to assist with a finance plan to develop

Chaketma leveraging positive early engagement with a

The GK Mineral Resource Estimate Resource update is

number of development and commercial banks.

expected shortly.

1. Although PhosCo has recovered the 50.99% interest, the Company notes that various actions related to the enforcement of the arbitration orders remain before the courts.

PhosCo Quarterly Report 30 June 2022

Page 2

onlyOn 26 July 2022, PhosCo announced it has appointed Jan Jansen to lead the Chaketma Phosphate project team as Project Director responsible for overseeing the Updated Scoping Study and to commence preparation on a Bankable Feasibility Study.

Mr Jansen will initially work for PhosCo on a consulting basis with plans in place for his imminent relocation

useto Tunisia. With more than 30 years of technical and operational experience, he has developed and led a number of successful mining operations in various jurisdictions globally including South Africa, Tanzania, Mauritania, Oman and Eastern Europe.

Mr Jansen has worked with a number of well established companies including De Beers, Tasiast,

personal

and Maaden Phosphate Co where he was General

Manager of the Al-Jalamid Phosphate Mine, a 5Mt per

nnum nameplate phosphate concentrate operation.

He holds a Bachelor of Engineering in Mining

Engineering from the University of Pretoria, South

Africa and is a member of the Australian Institute of

Company Directors. Mr Jansen is ideally suited to

assist with PhosCo's feasibility and development

activities at Chaketma.

For

Figure 2 Sekarna - Mesa - Phosphate layer at base of limestone cap

ASX

PHO

On 11 July 2022, PhosCo announced that an Exploration Permit application to be held 100% by PhosCo has been lodged with the Tunisian Department of Mines over the Sekarna Phosphate Project (Sekarna). The application covers over 128km2 in area and is located 10km northeast of Chaketma.

PhosCo's Tunisian exploration team observed phosphate in outcrop below the upper Eocene cap rock exposed by steep-sided mesa topography. Outcropping phosphate mineralisation has been mapped on margins of the mesa and documented in historical government reporting in this region. No exploration targeting phosphate has been carried out over Sekarna. The phosphate mineralisation was investigated by A Zaier (1999), a PhD student who studied and documented phosphate deposits of the central and western basin of Tunisia.

Historic diamond drilling by Reminex Exploration in 2007 that targeted lead zinc mineralisation intersected phosphate over an interval of 8 metres in drill hole SRLE3. The phosphate was not analysed. A 2011 geological paper on lead-zinc mineralisation at Sekarna reported phosphate grades of 19.7% and 27.8% P₂O₅ in five rock chip samples (Garnit et al 2011).

Field inspection by PhosCo's Tunisian team traced the phosphate unit, which was exposed in outcrop with mapped thicknesses of between 5m to more than 20m for 2.7km along the margin of the Rohia Graben. The application process is expected to take several months.

PhosCo Quarterly Report 30 June 2022

Page 3

ASX

PHO

onlyIn April 2022 PhosCo lodged two Exploration Permit applications in Northern Tunisia. The applications cover over 424km2 and 244km2 respectively targeting copper, gold, lead and zinc. The interpretation is that the Tunisian nappe zone is the extension and eastern termination of Iberian Pyrite Belt along the Mediterranean coast through Morocco and Algeria.

The application process has advanced and awaits official grant.

useFigure 3 Sekarna application in relation to Chaketma personal

Figure 4 Sekarna - Western side viewed from Rohia Graben. Approximate position of phosphate unit shown in pink.

For

PhosCo Quarterly Report 30 June 2022

Page 4

For personal use only

ASX

PHO

Figure 5 Base metal exploration tenements and applications (light green)

Copper and Gold anomaly

The applications target copper, gold, lead and zinc occurrences that have had some historical geochemical and geophysical work over old mine workings. Historic exploration work announced by Albidon Limited in April 2005 is the basis of the new applications and the PhosCo's in-country team is in the process of recovering and collating this data.

The Simitu application includes the Kef el Ageb target where Albidon identified a copper and gold anomaly in rock chip and soil samples over a distance of approximately 9km (Figure 6).

Figure 6 (left) Kef el Ageb Anomalous gold in soil and rock chips

PhosCo Quarterly Report 30 June 2022

Page 5

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PhosCo Ltd. published this content on 27 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2022 22:37:05 UTC.