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Gold/Mining/Energy : Verde Agritech
NPK.TO 0.9200.0%Nov 28 9:30 AM EST

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From: Rocket Red5/2/2016 10:20:39 AM
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Verde Potash holds public hearing for mining licence

2016-05-02 10:18 ET - News Release
Shares issued 37,617,430
NPK Close 2016-04-29 C$ 0.32

Mr. Cristiano Veloso reports

ENVIRONMENTAL LICENSE FOR VERDE'S PROJECT DISCUSSED AT PUBLIC AUDIENCE HELD IN SAO GOTARDO

On Thursday, April 28, a public audience was held in the city of Sao Gotardo, Minas Gerais, to discuss Verde Potash PLC's application for an environmental licence to mine Verde's potassium silicate rock. The public audience is an important step of the process to obtain an environmental licence in Brazil. The public audience was requested by the Syndicate of Mineral Industry of the State of Minas Gerais ("SINDIEXTRA") and by the National Forum of Civil Society in the Basin Committees ("FONASC"). The event was chaired by Franco Cristiano Alvos, who is the head of the Regional Superintendencies of Environmental Regulation ("SUPRAM") of Triangulo Mineiro and Alto Paranaiba, and attended by several authorities and different stakeholders.

The public hearing on the environmental licensing gives stakeholders an opportunity to ask questions and express opinions about the project. It also serves as an opportunity for the Company and its environmental consultants to present the project and its social and environmental impact. SUPRAM, when deciding on the preliminary license, considers all concerns and comments expressed by stakeholders at the public audience.

The public audience was held between 7:00pm and 9:19pm BRT, and attended by approximately 100 people, including the mayor of Sao Gotardo, Mr Seiji Sekita, city councilors, representatives from SUPRAM, members of civil associations, religious communities, social organizations, the business community, public servants, union representatives and residents of Sao Gotardo and neighboring towns.

Former Minister of Agriculture and Verde's director, Mr Alysson Paolinelli, was responsible for Verde's opening remarks. Mr Paolinelli stressed the importance for Brazilian farmers to use agriculture products better suited for tropical agriculture. He regarded Verde's project to be innovative as it combines technology and sustainability, offering the agricultural market natural and chemical-free products. The former Minister expressed his enthusiasm for the agronomic test results the Company and its partners have been obtaining over the past few years. Mr Paolinelli's participation in the event was instrumental because, when Minister of Agriculture, he was responsible for the early development of agriculture for the Cerrado region (wherein Sao Gotardo is located) and, when state Secretary of Agriculture, he chose Sao Gotardo as the first area to receive a project converting barren Cerrado into highly productive agriculture farms.

"It is widely agreed that Mr Paolinelli is Brazil's most important agriculture leader because he was responsible for some of the greatest achievements in tropical agriculture that have allowed Brazil to become the world's farming powerhouse," commented President & CEO, Cristiano Veloso.

Mr Luiz Marcos, a former state Secretary of Mines and Energy and director of SINDIEXTRA, voiced support for the project by stressing that it combines two of Brazil's strengths, agriculture and mining. Mr Marcos regards the project to be very significant for the country, as it will enable Brazil to produce food more sustainably in order to feed the growing global population.

Mr Antonio Geraldo, a representative of an environmental NGO, commented on the need for mining companies to be responsible in their management of water resources and try to add value to its mined products locally. He praised the project's importance for agriculture, the high quality of the environmental assessment work undertaken by the Company, and the transparency and openness when dealing with Verde's team throughout the process.

Cristiano Veloso commented, "We were all very pleased with the high level of support received for the project and the constructive criticism received. The Company was asked to remain committed to mitigating environmental impacts and continue supporting local communities. We have successfully reached an important mark in a highly complex and time consuming process to obtaining an environmental license in Minas Gerais State; a State in Brazil where myself, all our board members and our employees are proud to come from."

In Brazil, environmental licensing is regulated by a federal law, but the law is interpreted and implemented autonomously by each state. The State of Minas Gerais, where the Company's project is located, the task is performed by SUPRAM, which has a team of highly qualified and motivated professionals but suffers from underfunding and excessive demand. The State has the largest number of applications for environmental licenses in the mining sector because the State has Brazil's longest mining history and hosts most of the
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