EDITOR: | November 13th, 2013

FYI Resources Aims For Development of High Grade Potash Deposits in Thailand

| November 13, 2013 | No Comments
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November 13, 2013 (Source: FYI Resources Ltd.) — FYI Resources Ltd (the “Company” or “FYI”) is pleased to announce that following an extensive review of numerous projects worldwide, the Board have identified an opportunity to secure potentially high grade, large tonnage potash deposits in northern Thailand.

Forming part of the Thailand potash strategy, FYI has negotiated an agreement with an in-country group, Asia Pacific Potash Resources Ltd (“APPR”), to undertake and manage the application and associated administration processes for the Special Prospecting Licences (exploration licence areas) on behalf of FYI as the first step to implementing an extensive exploration program.

The agreement allows both groups to work expeditiously towards implementing the project in a structured and objective manner under FYI’s direction and funding whilst the Special Prospecting Licenses are in application.

APPR is an experienced team of local and expatriate professionals who have many years experience in potash exploration and development in Thailand. Key terms of the agreement are outlined below.

The FYI Board believes this agreement offers the Company a superb opportunity to be involved in the exploration and development of high grade, large tonnage potash deposits in a region already known for its significant potash reserves.

Potash is the common term used for a group of potassium minerals used principally as agricultural fertilizers. The Company has taken the view that increasing human populations will lead to increasing demand for potash minerals to help boost food production and quality of produce.

Potential potash deposits in northern Thailand offer a number of advantages compared to potash deposits in other parts of the world as they generally occur at shallower depths and are of significant widths and higher grades.

Thailand is also in close proximity to large southeast Asian, Chinese and Indian markets which would contribute positively to a project’s economics. Asia’s current potash consumption accounts for approximately 43% of global demand and with very little domestic supply, the region offers potentially compelling markets.

Key Terms:

  • Parties: FYI Resources Limited and Asia Pacific Potash  Resources Limited;
  • Agreement period of 8 months;
  • APPR to act  exclusively on behalf of FYIduring the  agreement period to  secure and progress the Thai potash assets  for FYI;
  • Implementation fee, paid  by  FYIto  APPR in monthly instalments up to a total of $136,200 to  be  used   by  APPR to  pay  all  costs   and  expenses involved with securing the Thai potash assets  for FYI;
  • The parties will  use their best endeavours to  agree  terms and  conditions for  an ongoing management agreement upon  the  grant of the  first project area;
  • The  agreement may  be  terminated at any  time  by  FYIwith 14  days’  notice to APPR;
  • In the  event the  agreement is terminated by  FYI, APPR shall  have  the  first right to purchase the  Thai  potash assets  for  the  consideration equal  to  FYI’s  total expenditure under the  agreement prior to termination.

Further information on the potash strategy will be announced shortly.

About FYI Resources Limited

FYI  Resources  Limited  is  targeting significant  uranium mineralization at  its   100% owned Yarlarweelor uranium project located 125  km  north of Meekatharra in Western Australia.  The  project consists of  three granted exploration licences covering a total area  of  318km2 .FYI has  outlined  over   58  uranium anomalies on  the  Yarlarweelor project to  date  as a result of detailed aerial radiometric surveys and field  prospecting. FYI  is  progressing  with   the systematic assessment of  these   anomalies  as  well  as planning to identify new  prospects on recently granted exploration licences.

The   potential  for   potash  deposits  in Thailand has been recognised following  an extensive global  review  of  suitable new  projects and  commodities that  would add significant value  to  the  Company in conjunction with  further exploration for  uranium at Yarlarweelor.


Raj Shah

Editor:

Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>


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