Buffalo Potash Signs Royalty Agreement with Altius Minerals

The financing provides capital without issuing shares, while granting Altius a royalty on Disley West production.

Rhea-AI Summary

Buffalo Potash (BLPTF) signed a binding letter of intent with Altius Royalty for C$8.5 million in royalty financing. The October 21, 2026 agreement provides for a 1.0% gross overriding royalty on Disley West, granted in two 0.5% tranches. Altius Royalty is wholly owned by Altius Minerals (ATUSF). Buffalo will receive C$3.4 million at closing and C$5.1 million upon satisfaction of technical conditions related to brine circulation. Altius will also receive a right of first offer on royalty, stream or similar financing for Disley East.

Buffalo targets first production in Q1 2027 from its Initial Production Module, designed for 125,000 tonnes of soluble-grade potash annually. The production decision is not supported by a feasibility study establishing economic and technical viability, and no mineral reserves have been established at Disley. Its Horizontal Line-Drive mining method has not operated at commercial scale.

Positive

• Minor point. Forward-looking: it has not happened yet and may not happen.C$8.5 million in non-dilutive financing would support Buffalo’s Initial Production Module, with C$3.4 million payable at closing.
• Minor point. Forward-looking: it has not happened yet and may not happen.Q1 2027 first production is Buffalo’s target for the module, designed for 125,000 tonnes annually.
• Minor pointRoyalty coverage limited to Disley West leaves Edenwold and Odessa outside this agreement’s royalty and first-offer rights.

Negative

• Minor point. Forward-looking: it has not happened yet and may not happen.1.0% gross overriding royalty on Disley West potash and associated products would be granted in two 0.5% tranches.
• Minor point. Forward-looking: it has not happened yet and may not happen.C$5.1 million payment depends on satisfaction of technical conditions related to brine circulation.
• Minor point. Forward-looking: it has not happened yet and may not happen.Disley East financing rights would give Altius first offer on proposed royalty, stream or similar financing.
• Minor pointProduction decision lacks a supporting feasibility study establishing economic and technical viability; Disley has no established mineral reserves.
• Minor pointHorizontal Line-Drive mining has not operated at commercial scale, creating a disclosed performance risk.
• Minor pointProduction sustainability and profitability remain risks, alongside potential differences in mineralization, recoveries, production rates and costs.

Key Figures

Gross overriding royalty: 1.0% Aggregate cash consideration: C$8.5 million Payment on closing: C$3.4 million +4 more

Gross overriding royalty

1.0%

Applies to Disley West

Aggregate cash consideration

C$8.5 million

Royalty transaction

Payment on closing

C$3.4 million

First payment tranche

Conditional payment

C$5.1 million

Payable upon satisfaction of technical conditions related to brine circulation

Altius investment in Buffalo

C$11.5 million

Upon closing of both transaction tranches; excludes Odessa royalty acquisition

Designed annual production capacity

125,000 tonnes

Disley Initial Production Module; soluble-grade potash

Target first production

Q1 2027

Disley Initial Production Module

Key Terms

gross overriding royalty, right of first offer, private placement, preliminary economic assessment, +2 more

6 terms

gross overriding royalty financial

"a 1.0% gross overriding royalty on all potash and associated products"

A gross overriding royalty is a contractual right that pays its holder a fixed percentage of revenue from the sale of produced minerals, oil, or gas, taken before the producing company deducts operating or capital costs. Think of it like a landlord who collects a slice of every sale from a shop on the property rather than sharing in the shop’s profits; it reduces the producer’s cash receipts on each unit sold without requiring the royalty holder to share costs or ownership. Investors care because it lowers future cash flow and project valuation per unit produced, can be transferable, and affects how attractive a resource or company appears compared with similar assets without such claims.

right of first offer financial

"a right of first offer on SMP 222"

A right of first offer is a contractual agreement that requires an owner to offer an asset or stake to a designated party before marketing it to others; the holder gets the first chance to negotiate terms directly with the seller. For investors, it matters because it can limit who can buy or set the sale price path—like getting the first invitation to buy a sought-after item before it goes on general sale, protecting potential access or controlling competition.

private placement financial

"Altius's C$3 million participation in Buffalo's June 2026 private placement"

A private placement is a sale of securities directly to a selected group of investors, typically institutions or accredited investors, instead of through a public offering. It lets a company raise money faster and with fewer regulatory steps; for existing shareholders it matters because the newly issued shares, often sold at a discount, increase the share count and can dilute their ownership.

preliminary economic assessment technical

"the Company's preliminary economic assessment is preliminary in nature"

A preliminary economic assessment is an initial analysis that estimates the potential profitability and feasibility of a project or resource, such as a new mineral deposit or development venture. It provides a rough idea of costs, benefits, and risks, helping investors decide whether to pursue more detailed studies. This early evaluation is important because it offers a snapshot of whether the project is worth further investment and development.

mineral reserves technical

"No mineral reserves have been established at the Disley Project"

Mineral reserves are the amounts of a metal or mineral that a company has identified and can legally and economically extract with current technology. Think of it like the usable fuel in a car’s tank rather than all the oil in the ground; reserves determine how long a mine can produce, help estimate future revenue and costs, and shape a company’s value and investment risk.

feasibility study technical

"not based on a feasibility study of mineral reserves"

A feasibility study is an assessment that evaluates whether a proposed project or idea is practical and likely to succeed before investing significant time and resources. It considers factors like costs, potential benefits, and challenges, helping stakeholders decide if moving forward makes sense. Think of it as a detailed plan that gauges if a new venture is worth pursuing.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Altius Royalty Financing Advances the Disley Initial Production Module Toward First Production

Saskatoon, Saskatchewan--(Newsfile Corp. - October 22, 2026) - Buffalo Potash Corporation (TSXV: BUFF) (OTCQB: BLPTF) (FSE: VU5) (the "Company" or "Buffalo") is pleased to announce that it has entered into a binding letter of intent regarding a royalty agreement (the "Royalty Agreement") with Altius Royalty Corporation, a wholly owned subsidiary of Altius Minerals Corporation (TSX: ALS) (OTCQX: ATUSF) ("Altius"), on October 21, 2026, pursuant to which Altius will acquire a 1.0% gross overriding royalty (the "Royalty") on the Company's Disley West property consisting of Subsurface Mineral Permit SMP 199 and certain freehold mineral lands held by Buffalo ("Disley West"), together with a right of first offer on SMP 222 ("Disley East") (the "ROFO"), for aggregate cash consideration of C$8.5 million (the "Transaction").

The Transaction brings increased alignment with one of the most established names in Saskatchewan potash and provides funding to advance Buffalo's Initial Production Module ("IPM"), which is targeting first production in Q1 2027, with a designed annual production capacity of 125,000 tonnes of soluble-grade potash.⁽¹⁾

Transaction Highlights

• Strategic validation from Saskatchewan's leading potash royalty holder: Altius holds royalty interests across six of the province's flagship producing potash mines, operated by Nutrien Ltd. and The Mosaic Company.⁽²⁾ The Royalty marks Altius's first royalty on a development-stage potash project.
• Non-dilutive funding for the IPM: Aggregate cash consideration of C$8.5 million, comprising C$3.4 million payable on closing and C$5.1 million payable upon the satisfaction of certain conditions precedent, provides capital to advance the IPM.
• Deepening partnership: The Transaction builds on Altius's C$3 million participation in Buffalo's June 2026 private placement and its acquisition of a 0.16% gross overriding royalty on Buffalo's greenfields stage Odessa Project from a private arm's-length seller. Upon closing of both tranches of the Transaction, Altius's investment into Buffalo will total C$11.5 million, excluding its acquisition of the royalty on Odessa.
• Royalty limited to Disley West: The Royalty applies only to Disley West. Disley East is subject only to the ROFO, and Buffalo's Edenwold and Odessa properties are not subject to the Royalty or the ROFO as part of the current Royalty Agreement.

Mr. Steve Halabura, P.Geo., Chief Executive Officer and Director of the Company, commented: "Altius knows Saskatchewan potash as well as anyone in the capital markets. They hold royalties on the mines that built this province's reputation as the world's potash leader, and their decision to take a royalty on Disley West is a strong endorsement of both the asset and our Horizontal Line-Drive approach. This agreement delivers significant capital at a pivotal moment, as we drive the IPM toward first production."

Altius Ownership of Saskatchewan Potash Royalties

Altius is one of the largest holders of potash royalties in Saskatchewan, the world's premier potash jurisdiction. Through its controlling interest in the Potash Royalty Limited Partnership, Altius earns royalty revenue from six long-life producing potash mines operated by two of the world's largest potash producers:⁽²⁾

Table 1: Current Altius Potash Royalties

Mine	Operator	Mining Method
Esterhazy	The Mosaic Company	Conventional underground
Rocanville	Nutrien Ltd.	Conventional underground
Allan	Nutrien Ltd.	Conventional underground
Cory	Nutrien Ltd.	Conventional underground
Vanscoy	Nutrien Ltd.	Conventional underground
Patience Lake	Nutrien Ltd.	Solution

 

Terms of the Royalty Agreement

Under the Royalty Agreement, Buffalo will grant Altius a 1.0% gross overriding royalty on all potash and associated products produced from SMP 199 plus other freehold and mineral titles, which together comprises Disley West, where the IPM site is located. The Royalty will be granted in two tranches of 0.5% each. In consideration, Altius will pay Buffalo aggregate cash consideration of C$8.5 million, of which C$3.4 million is payable on closing and the remaining C$5.1 million is payable upon the satisfaction of certain technical conditions related to brine circulation.

Buffalo will also grant Altius a ROFO on any royalty, stream or similar financing that Buffalo proposes to grant on the Disley East property, which includes SMP 222.

About Buffalo Potash

Buffalo Potash is an emerging Saskatchewan-based potash developer pursuing a modular approach to selective solution mining through its patented Horizontal Line-Drive (HLD) technology. Buffalo is advancing the Disley Project - located adjacent to two of the most prominent currently producing potash solution mines in the world - with the objective of establishing capital-efficient, lower-impact potash production in one of the world's leading potash jurisdictions.

About Altius Minerals

Altius Minerals Corporation (TSX: ALS) (OTCQX: ATUSF) builds per-share growth through a diversified portfolio of royalties on long-life, high-margin operations, spanning potash, iron ore, base metals, battery metals and electricity. Altius also operates a Project Generation business that originates mineral projects and sells them to developers in exchange for royalties.

Qualified Person

All scientific and technical information in this news release has been reviewed and approved by Jared Galenzoski, P.Geo., FIMMM, an independent consultant to the Company who is a Qualified Person within the meaning of National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

Contact

Steve Halabura | Chief Executive Officer & Director
Email: steve@buffalopotash.ca | Phone: 1-306-220-7715

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Notes

(1) Production Decision Cautionary Statement: The Company's decision to proceed with development of the IPM is not based on a feasibility study of mineral reserves demonstrating economic and technical viability. No mineral reserves have been established at the Disley Project, and the Company's preliminary economic assessment is preliminary in nature. Historically, mineral projects advanced to production without first establishing mineral reserves supported by a feasibility study have a higher risk of economic and technical failure. Specific risks associated with the Company's production decision include, but are not limited to: 1) grade, continuity, or thickness of mineralization that differs significantly from the Mineral Resource Estimate; 2) improper or inadequate performance of the Company's Horizontal Line-Drive mining method, which has not been operated at commercial scale; 3) recoveries, production rates, or capital and operating costs that differ materially from the preliminary economic assessment; and 4) production during the IPM that does not become sustainable or profitable, which would materially and adversely affect the Company's ability to generate revenue and cash flow.

(2) Information regarding Altius and the mines underlying its potash royalty portfolio has been derived from publicly available information disclosed by Altius and has not been independently verified by the Company. The Company has no interest in any of the mines referenced in this news release. Mineralization and production at those mines are not necessarily indicative of mineralization on, or potential production from, the Company's Disley Project, and there is no guarantee that the Disley Project will yield comparable results.

Forward-Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable Canadian securities legislation. Forward-looking information is generally identifiable by the use of words such as "believes," "may," "plans," "will," "anticipates," "intends," "could," "estimates," "expects," "forecasts," "projects," "potential," "targeted," "scheduled," "budget," "proposed," "objective," and "seek," or similar expressions, the negative of such expressions, and similar expressions that are not statements of historical fact.

Forward-looking information in this news release includes, but is not limited to, statements regarding: the completion and timing of the Transaction; the receipt of TSX Venture Exchange acceptance and the satisfaction of other closing conditions; the amount, timing and use of the consideration payable by Altius, including the satisfaction of the conditions precedent to, and receipt of, the deferred consideration; the anticipated benefits of the Royalty Agreement and the Company's relationship with Altius; the anticipated timing of first production from the IPM and the IPM's designed production capacity; the development of Disley West and the Company's broader development plans and strategy for the Disley Project; the intended operation and performance of the Horizontal Line-Drive mining method; and the fact that the Company's production decision for the IPM is not based on a feasibility study of mineral reserves demonstrating economic and technical viability, and the associated increased risk of economic and technical failure.

Forward-looking information is based on management's reasonable assumptions, estimates, analysis, and opinions made in light of its experience, perception of historical trends, current conditions, and expected future developments, as well as other factors that management believes are relevant and reasonable in the circumstances as of the date such statements are made. These assumptions include, but are not limited to, assumptions that all conditions to closing of the Transaction will be satisfied; that the conditions precedent to the deferred consideration will be satisfied; the performance of solution mining methods; costs of production; the availability of services and equipment; the receipt of required permits and approvals; the availability of financing on acceptable terms; the stability of the regulatory and political environment in which the Company operates; no material adverse changes in potash commodity markets; and the Company's ability to maintain its patents and intellectual property rights, including with respect to the Horizontal Line-Drive mining method.

Forward-looking information is subject to known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements of the Company to differ materially from those expressed or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to: the risk that the Transaction is not completed on the terms described or at all; the risk that TSX Venture Exchange acceptance is not obtained; the risk that the conditions precedent to the deferred consideration are not satisfied and the deferred consideration is not received; the impact of the Royalty on the economics of Disley West; risks related to the procurement, delivery and installation of surface processing equipment and the timing and completion of construction and commissioning activities at the IPM; risks related to the development, commissioning, and operation of novel mining technology; risks inherent to solution mining operations; regulatory approvals and permitting timelines; commodity price volatility; availability of capital; and general economic, market, and business conditions.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events may differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information contained herein is made as of the date of this news release, and the Company disclaims any obligation to update or revise any forward-looking information, except as required by applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/320376

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What are the terms of Buffalo Potash’s royalty financing with Altius?

The binding letter of intent provides for C$8.5 million in exchange for a 1.0% gross overriding royalty on Disley West. The royalty would be granted in two 0.5% tranches. C$3.4 million is payable at closing, with C$5.1 million payable upon satisfaction of technical conditions related to brine circulation.

When does Buffalo Potash target first production at Disley?

Buffalo targets Q1 2027 for first production from its Initial Production Module. The module has a designed annual capacity of 125,000 tonnes of soluble-grade potash. The production decision is not based on a feasibility study of mineral reserves demonstrating economic and technical viability.

Which Buffalo Potash properties are covered by the Altius royalty agreement?

The royalty covers Disley West, comprising SMP 199 and certain freehold mineral lands held by Buffalo. Disley East, including SMP 222, is subject only to a right of first offer on proposed royalty, stream or similar financing. Edenwold and Odessa are outside both rights under this agreement.