Brazil Potash Estimates Up to ~$94 Million in Potential Brazil Government Tax Savings Following SUFRAMA Registration

Rhea-AI Summary

Brazil Potash (NYSE-American:GRO) announced that its Brazilian subsidiary, Potássio do Brasil, received official SUFRAMA registration on December 16, 2025, making the Autazes Project eligible for Manaus Free Trade Zone federal tax incentive regimes.

The company estimates access to SUFRAMA-administered incentives could yield up to ~US$94 million in tax savings over the construction phase. Eligible regimes include potential exemptions or reductions for Import Duty (II) and Tax on Industrialized Products (IPI) for qualifying capital expenditures, subject to applicable rules, approvals and project-specific authorizations.

Positive

• Estimated tax savings up to ~US$94 million over construction
• SUFRAMA registration validates key financial model assumptions
• Eligibility for Import Duty (II) and IPI exemptions during construction

Negative

• Tax incentives are conditional on SUFRAMA and federal approvals
• Estimated US$94M is not guaranteed and depends on compliance

News Market Reaction – GRO

+1.01%

1 alert

+1.01% Session close to close

$112.07M Market Cap

0.8x Rel. Volume

In the Dec 17 session, GRO gained 1.01%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights SUFRAMA registration, making Brazil Potash’s Autazes Project eligible f...

Analysis

This announcement highlights SUFRAMA registration, making Brazil Potash’s Autazes Project eligible for federal tax incentive regimes and supporting estimates of up to US$94 million in potential tax savings during construction. It builds on prior progress such as long-term offtake agreements and recent capital-raising activities. Investors may track how these incentives translate into the project’s economic model, alongside future updates on construction financing, regulatory steps, and execution against the 2026 construction timeline.

Key Figures

Potential tax savings: up to ~US$94 million

1 metrics

Potential tax savings up to ~US$94 million Estimated savings over Autazes construction phase via SUFRAMA incentives

Historical Context

5 past events · Latest: Dec 08 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Dec 08	Project milestones	Positive	-4.7%	Outlined 2025 milestones and financing steps positioning Autazes for 2026 construction.
Dec 03	Technology trial	Positive	+4.8%	Announced AI-powered XRT ore sorting trial targeting lower capital and operating costs.
Dec 02	Leadership change	Positive	-0.4%	Appointed experienced executive Sergio Leite to lead Brazilian subsidiary for Autazes.
Nov 03	Financing mandate	Neutral	-9.3%	Mandated BTIG to source project-level equity financing aimed at reducing dilution.
Oct 28	Offtake agreements	Positive	+7.4%	Presold 91% of future production via long-term offtakes, supporting construction financing.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent news has often been positive while price reactions skew mixed, with several notable selloffs on constructive project and financing updates.

Recent Company History

This announcement of up to US$94 million in potential federal tax savings builds on a series of Autazes Project milestones. Since October 2025, Brazil Potash has presold ≈91% of planned production via long-term offtakes, raised capital through private placements, and secured an MOU for roughly $200M in power-line funding. Management has also strengthened leadership and engaged BTIG to pursue project-level equity financing. Together, these steps frame today’s SUFRAMA registration as another de-risking element in the project’s economic model.

Key Terms

suframa, manaus free trade zone, import duty (imposto de importação - ii), tax on industrialized products (imposto sobre produtos industrializados - ipi)

4 terms

suframa regulatory

"received official registration from SUFRAMA (Superintendência da Zona Franca de Manaus)"

Suframa is the Brazilian federal agency that manages the Manaus Free Trade Zone and administers tax, customs and industrial incentives for businesses operating in that region. For investors, Suframa matters because its approvals and incentive rules change a company’s costs, tax bills and eligibility for subsidies—similar to how a city granting a tax break can make a factory or business project much more or less profitable.

manaus free trade zone regulatory

"under the Manaus Free Trade Zone (ZFM) framework in the Western Amazonas Region"

A designated economic and industrial area in and around the city of Manaus, Brazil, where manufacturing, trade and services receive special tax and customs incentives to attract investment and spur regional development—think of it like a duty‑free zone at an airport but for factories and businesses. Those incentives can lower operating costs, reduce import duties and speed shipments, so investors consider them when assessing company margins, supply‑chain risk and market access.

import duty (imposto de importação - ii) financial

"Import Duty (Imposto de Importação - II): Potential exemption or reduction on qualifying imports"

An import duty (Portuguese: imposto de importação, II) is a tax charged by a government on goods brought into a country, similar to a toll on items crossing a border. It matters to investors because it raises the cost of imported raw materials and finished goods, can squeeze company profit margins, alter consumer prices and demand, and reshape supply chains and competitive positions between domestic and foreign producers.

tax on industrialized products (imposto sobre produtos industrializados - ipi) financial

"Tax on Industrialized Products (Imposto sobre Produtos Industrializados - IPI): Exemption on qualifying goods"

A federal excise tax applied to manufactured and imported goods (known in Portuguese as imposto sobre produtos industrializados, IPI) that is charged when products enter the commercial chain. Think of it as a toll on goods — it raises the cost of production or importation and can change retail prices, company profit margins and competitiveness, so investors watch it for its impact on sales, costs and industry dynamics.

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

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• Company receives official SUFRAMA registration, enabling access to federal tax incentives
• Milestone demonstrates strong Brazil federal government support and de-risks key project assumptions

MANAUS, Brazil, Dec. 16, 2025 (GLOBE NEWSWIRE) -- Brazil Potash Corp. ("Brazil Potash" or the "Company") (NYSE-American: GRO), a mineral exploration and development company with a critical mineral potash agriculture project, the Autazes Project, announced today that its wholly-owned Brazilian subsidiary, Potássio do Brasil Ltda., received official registration from SUFRAMA (Superintendência da Zona Franca de Manaus), the federal agency responsible for managing tax incentives regimes under the Manaus Free Trade Zone (ZFM) framework in the Western Amazonas Region. SUFRAMA registration means the Company is eligible to operate under SUFRAMA-administered tax incentive procedures, subject to applicable rules, approvals and project-specific authorizations

The Company estimates that access to SUFRAMA-administered federal tax incentive regimes could result in up to ~US$94 million in estimated tax savings over the construction phase, subject to compliance with applicable requirements and individual authorizations. This milestone validates key financial assumptions underlying the project's economic model and demonstrates continued strong support from Brazilian federal authorities.

^{Raphael Bloise, Project Director of Potássio do Brasil, receives the SUFRAMA registration certificate from Bosco Saraiva,
Superintendent of SUFRAMA, at a formal ceremony in Manaus on December 16, 2025.}

In recognition of this milestone, the Superintendent of SUFRAMA invited representatives from Brazil Potash to receive the registration certificate in person at a formal ceremony in Manaus. The meeting, which took place on December 16, 2025, was attended by Company representatives including Project Director, Raphael Bloise, and highlighted the collaborative relationship between the federal government and the Autazes Project.

"Securing SUFRAMA registration is an important milestone that supports the tax assumptions we have long anticipated for the Autazes Project," said Raphael Bloise, Project Director of Potássio do Brasil. "This registration enhances visibility and predictability in our financial model, while actual tax incentives remain subject to applicable rules, procedures and project-specific authorizations, and underscores the federal government's commitment to supporting strategic mineral development in the Amazon region."

As a registered entity within the Western Amazonas Region, Potássio do Brasil is now eligible to apply for and operate under the following federal tax incentive regimes, subject to applicable procedures and approvals:

• Import Duty (Imposto de Importação - II): Potential exemption or reduction on qualifying imports conducted under the Manaus Free Trade Zone framework, subject to SUFRAMA and Federal Revenue procedures and approvals
• Tax on Industrialized Products (Imposto sobre Produtos Industrializados - IPI): Exemption on qualifying goods imported or produced under the ZFM framework, subject to applicable rules and approvals.
  
  

These exemptions apply to capital expenditures during the construction phase of the Autazes Project and are administered by SUFRAMA, a federal agency linked to Brazil's Ministry of Development, Industry, and Trade.

About Brazil Potash

Brazil Potash (NYSE-American: GRO) (www.brazilpotash.com) is developing the Autazes Project to supply sustainable fertilizers to one of the world’s largest agricultural exporters. Brazil is critical for global food security as the country has amongst the highest amounts of fresh water, arable land, and an ideal climate for year-round crop growth, but it is vulnerable as it imported over 95% of its potash fertilizer in 2024, despite having what is anticipated to be one of the world’s largest undeveloped potash basins in its own backyard. The potash produced will be transported primarily using low-cost river barges on an inland river system in partnership with Amaggi (www.amaggi.com.br), one of Brazil’s largest farmers and logistical operators of agricultural products. With an initial planned annual potash production of up to 2.4 million tons per year, Brazil Potash’s management believes it could potentially supply approximately 20% of the current potash demand in Brazil. Management anticipates 100% of Brazil Potash’s production will be sold domestically to reduce Brazil’s reliance on potash imports while concurrently mitigating approximately 1.4 million tons per year of GHG emissions.

Cautionary Note Regarding Forward-Looking Statements

This document contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, or the United States Private Securities Litigation Reform Act of 1995, which are statements that are not historical facts. All statements, other than statements of historical facts, included herein and public statements by our officers or representatives, that address activities, events or developments that our management expects or anticipates will or may occur in the future, are forward-looking statements, including but not limited to such things as the SUFRAMA registration, the benefits of such registration including tax and other savings, future business strategy, plans and goals, competitive strengths and expansion and growth of our business. These forward-looking statements, along with terms such as “anticipate,” “expect,” “intend,” “may,” “will,” “should,” and other comparable terms, involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future, and include risks related to changes in government policies and procedures; failure to receive approvals for requested tax savings or exemptions; changes in our operations; uncertainties concerning estimates; industry-related risks; the commercial success of, and risks related to, our development activities; uncertainties and risks related to our reliance on contractors and consultants. Those statements include statements regarding the intent, belief, or current expectations of the Company and members of its management, as well as the assumptions on which such statements are based, and such forward-looking statements include, without limitation, statements regarding the SUFRAMA registration and associated tax benefits, the possibility of advancing project financing discussions, project development timelines, construction advancement, production capacity, market demand projections, cost advantages, environmental benefits, and the status of the Company's project, government regulation, and environmental regulation. Although we have attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Although these forward-looking statements were based on assumptions that the Company believes are reasonable when made, you are cautioned that forward-looking statements are not guarantees of future performance and that actual results, performance or achievements may differ materially from those made in or suggested by the forward-looking statements contained in this news release. In addition, even if our results, performance, or achievements are consistent with the forward-looking statements contained in this news release, those results, performance or achievements may not be indicative of results, performance or achievements in subsequent periods.

Forward-looking statements are subject to risks and uncertainties, many of which are beyond the control of the Company, including those described in the "Risk Factors" section of the Company's annual report on Form 20-F filed with the Securities and Exchange Commission and other filings. These risks include, but are not limited to, fluctuations in potash supply and demand, changes in competitive pressures, timing and amount of capital expenditures, changes in capital markets, currency and exchange rate fluctuations, unexpected geological or environmental conditions, changes in government legislation and regulations, political or economic developments in relevant jurisdictions, success in obtaining required licenses and permits, ability to secure project financing, and other operational risks.

Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions, or circumstances on which any statement is based, unless required by law.

Contact:
Brazil Potash Investor Relations
info@brazilpotash.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/15127952-9e79-452a-b5d0-1acb8d9a8bd8

FAQ

What did Brazil Potash announce on December 16, 2025 regarding SUFRAMA and Autazes (GRO)?

Potássio do Brasil received official SUFRAMA registration, making the Autazes Project eligible for Manaus Free Trade Zone tax incentive regimes.

How much tax savings did Brazil Potash (GRO) estimate from SUFRAMA incentives?

The company estimated up to ~US$94 million in potential tax savings over the construction phase, subject to approvals.

Which tax regimes can GRO apply for after SUFRAMA registration?

Eligibility to apply for exemptions/reductions on Import Duty (II) and Tax on Industrialized Products (IPI) for qualifying construction capital expenditures.

When was the SUFRAMA registration certificate for Brazil Potash (GRO) presented?

The registration certificate was presented at a formal ceremony in Manaus on December 16, 2025.

Does SUFRAMA registration guarantee the estimated tax savings for GRO shareholders?

No; the estimated savings depend on compliance with rules and specific approvals from SUFRAMA and federal authorities.

What impact does SUFRAMA registration have on Brazil Potash's Autazes Project financial model?

The registration supports and validates tax assumptions used in the project's financial model, increasing visibility and predictability.