DEEP BLUE

LOW EXPLORATION RISK

Red Citadel Resources has been actively developing its flagship Deep Blue project based in Peru, which is focused on developing high quality phosphate rich deposits located in loose sediments and relatively shallow waters. In February 2015, RCR was granted seven off shore mining concessions which provide RCR with exclusive rights to explore and mine phosphate in the concessions (subject to all required consents being obtained).

The RCR offshore operating model is based on a single harvesting and processing vessel which is possible because of the thickness of the Grand Blue phosphate deposits.

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The mineral resource is easily mineable with a conventional swell compensated point suction dredge operated from a floating platform. The footprint of a 1.2 Mta production unit would be significantly less than 40 hectares per year with minimal environmental impact. In addition, the bulk mining operation is not impacted by any infrastructure bottlenecks (rail, port) and could easily relocate to a new mining area to maintain optimum productivity during the lifecycle of the operation.

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The Trailer Suction Hopper Dredger (TSHD) is the preferred method for the recovery and transportation of phosphate bearing sediments. The TSHD operational specs and capacity make it the most economical and robust solution for the proposed dredging cycle concept: dredging the sediment, transporting sediment to the processing barge, offloading the sediment, loading tailings and disposing of the tailings in an environmentally sustainable manner.