Highlights

• Commencing Phase 3 (brine circulation) and Phase 4 (site development) of the five-phase IPM development plan, which are being advanced concurrently;
• Phase 3 (brine circulation) is broken into two stages: (a) brine injection and (b) brine circulation;
• Brine injection has commenced and brine circulation will begin once brine communication has been established between wells via the clay seam;
• Engineering of surface processing equipment being finalized, with procurement commenced; and
• First production from the IPM remains targeted for Q1 2027.

Saskatoon, Saskatchewan--(Newsfile Corp. - October 28, 2026) - Buffalo Potash Corporation (TSXV: BUFF) (OTCQB: BLPTF) (FSE: VU5) (the "Company" or "Buffalo") is pleased to announce that it has begun the next phases of development at the Initial Production Module ("IPM") at its Disley Project (the "Disley Project"). The Company is commencing Phase 3 (brine circulation) and Phase 4 (site development) of the IPM development plan, which are being advanced concurrently, following receipt of its approval to construct and operate the IPM (the "Approval") from the Saskatchewan Ministry of Environment, announced on October 16, 2026. Phase 3 marks the transition of the IPM from drilling and construction to solution mining operations.

Mr. Steve Halabura, P.Geo., Chief Executive Officer and Director of the Company, commented: "This phase is very meaningful to Buffalo and one that our team has been working tirelessly to achieve. Kicking off brine injection is the moment our Horizontal Line-Drive technology goes to work in the potash beds at Disley. With brine injection now beginning, Buffalo moves from building the IPM to operating it, and every step from here is a step toward first production."

Mr. Quinton Hardage, P.Eng., PMP, President and Chief Operating Officer of the Company, commented: "With our IPM wells drilled and completed, we have begun injection of brine to create our mining plane. The first objective of brine injection is to establish communication along the clay seam between our injector and producer wells. Once communication is established, continued circulation is designed to dissolve potash progressively, developing the mining plane that will ultimately feed the IPM processing facility. The brine injection and circulation will run in parallel with surface processing construction at the IPM site and we continue to target first production in Q1 2027."

Commencement of Brine Injection at the IPM

The brine circulation phase is the third of the five-phase IPM development plan and the first operational phase of the Company's patented Horizontal Line-Drive mining method. Under this phase, brine is first injected into the horizontal injection well drilled along a clay seam within the potash-bearing horizon before flowing toward paired horizontal producer wells. The initial objective of brine injection is to establish communication between the injector and producer wells. Once communication is established, continued circulation of brine is designed to dissolve potassium chloride ("KCl") through sustained contact with the potash-bearing member, which is anticipated to feed the IPM processing facility.

The brine circulation phase, beginning with brine injection to achieve communication between wells, has commenced and is proceeding in parallel with site development at the IPM. Management continues to target Q1 2027 for first production at the IPM.

Site Development at the IPM

Site development at the IPM is being advanced concurrently with the start of brine injection and takes place in two stages: brine circulation site preparation followed by surface processing site development. Buffalo is currently building out the surface infrastructure required to support brine circulation, including generators, pumps, piping, tanks, and instrumentation. Upon completion of brine circulation site preparation and subsequent brine circulation, the Company will advance surface processing site development, readying the IPM site for installation of the surface processing facility.

Surface Processing Equipment Status Update

Buffalo has also commenced procurement of the IPM surface processing equipment. The surface processing facility is designed to convert brine produced from the IPM's Horizontal Line-Drive wells into soluble-grade potash. Engineering of the surface processing equipment is being finalized in parallel with brine circulation site preparation and site development, keeping the surface processing workstream aligned with the broader IPM schedule.

Procurement is progressing in line with management's expectations, and the Company continues to target first production from the IPM in Q1 2027. Upon completion of surface processing site development, the equipment is expected to be installed and commissioned, marking the final phase of the IPM development plan. Buffalo looks forward to providing further updates as procurement advances.

Disley Project Development Plan

The IPM is designed to produce 125,000 tonnes per annum ("TPA") of soluble-grade potash and is the first of three planned solution mining facilities at the Disley Project. The IPM has a lower initial CAPEX requirement compared to the full Disley Project build-out and is targeted to reach first production in Q1 2027. At full build-out comprising the IPM and two 500,000 TPA mines ("Disley East" and "Disley West"), the Disley Project would be expected to produce up to 1,125,000 TPA of potash, as contemplated in Buffalo's preliminary economic assessment titled "NI 43-101 Preliminary Economic Assessment Technical Report on the Disley Potash Project, Saskatchewan, Canada" dated May 21, 2026, and effective April 15, 2026 (the "PEA"), a copy of which is available on the Company's SEDAR+ profile at www.sedarplus.ca. On a standalone basis, the PEA estimates a payback period for the IPM of approximately 12 months from the start of production.⁽²⁾ However, there is no guarantee that the Company will be able to achieve production.

The Company's production decision for the IPM is not based on a feasibility study with mineral reserves demonstrating economic and technical viability, and such production decisions are historically associated with a higher risk of economic and technical failure (see "Note 3 – Production Decision Cautionary Statement").

The IPM is intended to establish initial cash flow from production at a lower upfront capital cost, while building the operational and technical foundation for full-scale development. Development of the IPM is organized into five phases:

1. Source and disposal wells (complete);
2. Horizontal Line-Drive ("HLD") drilling (complete);
3. Brine circulation (commencing);
4. Site development (in progress); and
5. Surface processing.

Disley Project - General Overview

The Disley Project is located approximately 50 kilometers northwest of Regina and covers 10,610 hectares (Crown and Freehold mineral rights). The property is situated immediately to the east of the K+S Bethune potash solution mine and north of the Mosaic Belle Plaine potash solution mine - both of which are among the largest producing potash solution mines in the world. In the opinion of management, the Disley Project is in one of the most favorable areas of Saskatchewan for potash solution mining (see Figure 1) as evidenced by the success of these neighboring operations.⁽¹⁾

On May 22, 2026, Buffalo released the results of its maiden NI 43-101 Mineral Resource Estimate and PEA for the Disley Project, prepared by Micon International Co Limited. The PEA outlined a phased, modular development plan contemplating full-scale production of up to 1,125,000 TPA of potash across three solution mining facilities, with an estimated after-tax net present value (NPV) of US$1.1B at a discount rate of 8% and estimated internal rate of return (IRR) of 30%.⁽²⁾ Readers are encouraged to refer to Buffalo's April 27, 2026 and May 22, 2026 news releases and the NI 43-101 technical report filed on SEDAR+ for complete details of the PEA and Mineral Resource Estimate.

Figure 1: The Disley Project Situated Amongst Major Potash Solution Mines⁽¹⁾

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/12107/321387_36967b77446a6a53_001full.jpg

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.

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 and a Qualified Person within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Mr. Galenzoski is an expert in several potash-related fields including the drilling of potash horizontal wells and solution mining operations.

Neither the TSX Venture Exchange nor its Regulation Services 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) The K+S Bethune potash solution mine and the Mosaic Belle Plaine potash solution mine (together, the "Adjacent Properties") may each be considered an "adjacent property" (within the meaning of NI 43-101) to the Company's Disley Project. The Company has no interest in either of the Adjacent Properties. The Company believes this context is useful in illustrating the established production history of the district, while noting that mineralization on adjacent or nearby properties is not indicative of mineralization on the Company's Disley Project. There is no guarantee that the Disley Project will yield comparable results to either of these mines.

(2) The PEA was prepared by Micon International Co Limited in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects and is preliminary in nature. The PEA includes inferred mineral resources, which are considered too speculative geologically to have the modifying factors and economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no certainty that the results of the PEA will be realized. Readers are encouraged to read the technical report filed under the Company's profile on SEDAR+ at www.sedarplus.ca in its entirety, including all qualifications, assumptions, and exclusions that relate to the PEA.

(3) 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 PEA is preliminary in nature (see Note 2). 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 PEA; and 4) production from 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.

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," "would," "should," "anticipates," "intends," "could," "estimates," "expects," "forecasts," "projects," "potential," "targeted," "designed," "continue," "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 timing, sequencing and completion of the IPM development plan, including the timing of the commencement of brine injection and brine circulation, the establishment of communication between the injector and producer wells, the development of the mining plane, the completion of the surface infrastructure required to support brine circulation, site development (including brine circulation site preparation and surface processing site development), the finalization of engineering and the progress of procurement of surface processing equipment and the installation and commissioning of processing equipment; the intended operation and performance of the Horizontal Line-Drive mining method, including brine flow to the producer wells; the IPM's designed production capacity of 125,000 TPA of soluble-grade potash, its lower initial capital cost relative to the full build-out of the Disley Project, its intended role in establishing initial cash flow and building the operational and technical foundation for full-scale development and the anticipated payback period for the IPM; the anticipated timing of first production from the IPM; the results, assumptions and projections contained in or derived from the Mineral Resource Estimate and PEA for the Disley Project, including the estimated after-tax net present value and internal rate of return and potential full build-out production of up to 1,125,000 TPA; management's opinion that the Disley Project is in one of the most favorable areas of Saskatchewan for potash solution mining, and expectations regarding the Disley Project's potential for solution mining; statements of the Company's executives regarding the transition of the IPM from construction to operations and progress toward first production; the Company's broader development plans and strategy for the Disley Project; and the Company's ability to satisfy the terms and conditions of the Approval.

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 regarding geological continuity, potash grade and thickness, the applicability of historical data, the performance of solution mining methods, costs of production, the availability of services and equipment, the receipt of required permits and approvals and the availability of financing on acceptable terms; that brine injection will establish communication between the injector and producer wells within the time frame anticipated by management; that surface processing equipment will be procured and delivered within anticipated lead times; that site conditions will not materially delay site development, construction or commissioning; that the Company will have sufficient funding to complete the IPM; that the economic assumptions underlying the PEA, including potash prices, exchange rates and capital and operating costs, remain materially accurate; the stability of the regulatory and political environment in which the Company operates; favorable environmental conditions; the ability to obtain and maintain required mineral rights and surface access; the accuracy of the Company's current mineral resource estimates; no material adverse changes in potash commodity markets; the continued availability of key management personnel and technical experts; 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 inherent uncertainty of PEA-level studies and the possibility that actual capital costs, operating costs and production rates differ materially from estimates; risks related to exploration and development activities; risks related to the timing and completion of surface construction, engineering and procurement of surface processing equipment and commissioning activities, including the availability and performance of contractors, equipment and services; supply chain delays and inflation; the risk that the Company is unable to satisfy the terms and conditions of the Approval or that additional permits or approvals are required; the risk that brine injection and circulation do not establish communication between the injector and producer wells or develop the mining plane as anticipated, or take longer than expected to do so; the risk that the Horizontal Line-Drive mining method, which has not been operated at commercial scale, does not perform as anticipated; uncertainty in geological interpretation; risks related to the development, commissioning and operation of novel mining technology; risks inherent to solution mining operations and new or emerging technologies; 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/321387

Source: Buffalo Potash Corp.