#11 Q2 2023 Update со verde AGRITECH#2We are not good enough for you to invest if you: Are risk averse. Just want to make a quick buck. Expect delayed growth so you can earn dividends in the near term. Are looking for a traditional potash company. Don't deal well with changes. Don't understand the difficulties in developing technologies and markets for innovative products. Join our journey if you: Want to change the world into a better place. Are looking for a real-world technology developing company. Want to help Brazilian farmers protect the Amazon. Believe that Verde can make you and the planet healthier. Have watched or will watch the "Kiss the Ground" Netflix documentary. Care about soil biodiversity. If you are risk averse don't buy our stock. Don't rely on anything on this presentation. This presentation contains certain forward-looking information, which includes but is not limited to, statements with respect to Verde AgriTech Ltd's (the Company's) strategy, the commercial production of Super Greensand®, K Forte®, BAKS® and Silício Forte® ("Products"), design and building of a manufacturing facility, receipt of environmental permits, and the generation of cash flow. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to differ materially from the forward-looking information. Material risk factors that could cause actual results to differ materially from such forward- looking information include, but are not limited to, the failure to obtain necessary regulatory approvals, risks associated with the mining industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price, demand for the products in Brazil, exchange rate fluctuations and other risk factors set out in the Company's most recently filed Annual Information Form under the heading "Risk Factors". Currently, the Products are commercially produced and sold in Brazil, but the Company has no concrete guarantee that it will be able to reach the sale of 25 million tonnes of Product in the market. Should commercial demand for the Products fail to develop, the Company's business model may not be appropriate. Accordingly, readers should not place undue reliance on such forward-looking information. Material factors or assumptions used to develop such forward-looking information include, but are not limited to, the demand for the Products in Brazil, the ability to secure necessary permits, the ability to secure financing, and other assumptions set out in the Company's current technical report. The Company does not currently intend to update forward-looking information in this presentation except where required by law. Total resources include all categories unless otherwise stated. The grades detailed in this presentation are conceptual in nature. The Company has filed on SEDAR a NI 43-101 compliant updated pre-feasibility study, published date May 26, 2022. All technical information should be reviewed according to this pre-feasibility study. Readers are cautioned not to rely solely on the summary of such information contained in this presentation and are directed to complete information posted on Verde's website (www.investor.verde.ag) and filed on SEDAR (www.sedar.com) and any future amendments to such. Readers are also directed to the cautionary notices and disclaimers contained herein. Potential investors should conduct their own investigations as to the suitability of investing in securities of Verde AgriTech Ltd. TSX: NPK OTCMKTS: VNPKF со 2#3Buy Super GreensandⓇ at Amazon: C Super Greensand Micronized 100% natural source of Greensand na per eensand atural source of Green C Super Greensand nular % natural source of Greensand CISTERED cdfa G Super Greensand Micronized 100% natural source of Greensand weight 4lb 20kg] OMRI LISTED For Organic Use A 44 lbs bag of this product will cover 1.000 square feet of lawn. ] REGIST FRED ORCAN INPUT MATERIAL 5% OFF Coupon (USA): Q2202350FF 5% OFF Coupon (CA): Sold out The discount codes are valid through August 23, 2023. The codes are limited to a single unit per order and to a single order. Net weight 44lb [20kg] OMRI LISTED For Organic Use A 44 lbs bag of this product will cover 1.000 square feet of lawn. ] со verde AGRITECH TSX: NPK | OTCMKTS: VNPKF со Net weight OMRI 44lb LISTED [20kg] A44 lbs bag of this product will cover 1.000 square feet of lawn. erde AGRITECH verde 3#4Summary Market Overview.... Brazilian Economic Scenario ....... 50 05 .... 07 Q2 2023 Financial Statements 15 Operational Summary ... 16 Agricultural inputs market and credit crunch... 08 Global Market Competition and Financing 10 Sales, General and Administrative Expenses. 17 Logistics ..... 18 Market Overview 11 Annual Sales ......... 19 Currency Exchange 12 Loans .... 20 Market outlook...... 13 Appendix.... 21 Q2 2023 Highlights 14 TSX: NPK OTCMKTS: VNPKF со 4#5200 190 180 170 160 150 140 130 Market Overview The agricultural commodities market has been experiencing significant fluctuations on a downward trend for the last months, impacting the fertilizers' market worldwide. Soybean price - Paranaguá (R$) Corn price (R$) 01/04/2022 17/05/2022 29/06/2022 10/08/2022 22/09/2022 07/11/2022 20/12/2022 01/02/2023 TSX: NPK OTCMKTS: VNPKF Source: CEPEA - ESALQ/ USP. Available at: https://www.cepea.esalq.usp.br/br 17/03/2023 03/05/2023 15/06/2023 95 90 85 80 75 70 65 60 01/04/2022 25/04/2022 13/05/2022 02/06/2022 23/06/2022 13/07/2022 02/08/2022 22/08/2022 12/09/2022 30/09/2022 21/10/2022 11/11/2022 02/12/2022 22/12/2022 12/01/2023 01/02/2023 23/02/2023 15/03/2023 04/04/2023 26/04/2023 17/05/2023 06/06/2023 27/06/2023 50 555 Soybean prices decreased 27% in Q2 2023, compared to Q2 2022. The crop also decreased 19% from January 2023 to June 2023. Corn prices decreased 28% in Q2 2023, compared to Q2 2022. The crop also decreased 20% from January 2023 to June 2023. со S#6Market Overview Coffee Price (R$) 1500 1400 1300 или 1200 1100 1000 900 800 01/04/2022 26/04/2022 17/05/2022 07/06/2022 29/06/2022 20/07/2022 10/08/2022 31/08/2022 22/09/2022 14/10/2022 07/11/2022 29/11/2022 20/12/2022 11/01/2023 01/02/2023 24/02/2023 17/03/2023 10/04/2023 03/05/2023 24/05/2023 15/06/2023 Source: CEPEA - ESALQ / USP. Available at: https://www.cepea.esalq.usp.br/br TSX: NPK | OTCMKTS: VNPKF 500 400 300 Cotton Price (R$) 01/04/2022 26/04/2022 17/05/2022 07/06/2022 29/06/2022 20/07/2022 10/08/2022 31/08/2022 22/09/2022 14/10/2022 07/11/2022 29/11/2022 20/12/2022 11/01/2023 01/02/2023 24/02/2023 17/03/2023 10/04/2023 03/05/2023 24/05/2023 15/06/2023 Coffee prices decreased 20% in Q2 2023, compared to Q2 2022. The crop also decreased 22% from January 2023 to June 2023. Cotton prices decreased 46% in Q2 2023, compared to Q2 2022. The crop also decreased 36% from January 2023 to June 2023. 9#7Brazilian Economic Scenario Brazilian SELIC interest rate at year end 14.00% 12.00% 10.00% 8.00% 7.00% 6.50% 6.00% 4.50% 4.00% 2.00% 9.25% 2017 2018 2019 2.00% 2020 2021 13.75% 13.25% 11.75% 9.00% 8.50% 2022 Current rate 2023 Forecast 2024 Forecast 2025 Forecast • • ● On August 5, 2023, the Central Bank of Brazil lowered the SELIC rate from 13.75% to 13.25% after a sequence of 12 consecutive rate hikes, commencing in March 2021. This series unfolded against the backdrop of escalating prices in essential commodities like food, energy, and fuel. Since August 2022, the rate has remained fixed at 13.75% per annum for seven consecutive periods. . The SELIC rate is to reach 11.75% per annum by the end of 2023, 9% in 2024, and 8.5% in 2025 and 2026. The latest economic activity indicators consistently align with a scenario of deceleration, with annual inflation eased to 3.99% in the last 12 months. Source: Brazilian Central Bank. Available at: https://www.bcb.gov.br/en TSX: NPK OTCMKTS: VNPKF со 7#8Agricultural inputs market and credit crunch The convergence of these factors characterizes the current scenario as an atypical and extreme circumstance. Prices of commodities initiate a downward trajectory. Many farmers in Brazil chose to delay their crop sales. Prices continue to decline. Crops are due to be marketed. o ($) o لا لا لال Farmers need to acquire inputs for the upcoming planting season. But they have a diminished working capital. As a result, farmers opt to procure inputs from suppliers that provide extended payment terms, combined with the most competitive interest rates achievable. This strategy enables them to cover the expenses associated with these inputs after generating revenue from the imminent harvest, usually spanning a period of 9 to 12 months. TSX: NPK OTCMKTS: VNPKF со 8 00#9Agricultural inputs market and credit crunch In addition to the forecast of a record harvest in Brazil, the decline in grain prices has prompted Brazilian farmers to suspend sales, causing a backlog in product distribution. In the state of Mato Grosso, the country's largest soybean producer, over 20% of the soybeans harvested in January are still occupying storage facilities. Source: https://g1.globo.com/jornal-nacional/noticia/2023/07/20/falta-de-silos-de-armazenamento-ameaca-a-superproducao-de-graos-no-centro-oeste-do-brasil.ghtml TSX: NPK OTCMKTS: VNPKF со 6#10Global Market Competition and Financing Unlike its competitors, Verde does not have the option to incur most of its cost of debt in US dollar-denominated liabilities. Overall, the Company is not able to provide financing for more than 20% of its revenue due to constraints related to lines of credit. Comparative Proxy of Finance Costs Between International Major Players and Verde 1,2 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.2% 5.7% 6.0% 5.0% 5.2% 5.2% 4.0% 2.0% 0.0% Cargill® Nutrien BUNGE Mosaic YARA 18.6% Average lending cost 16.6% 3 3 Average cost of debt 1- Source: Bloomberg, as of July 24th, 2023. 2 - Considers each Company most traded bond, which differs considerably from Verde's tenors. This is likely to imply that large international players have an even lower cost of finance. 3- Considers average cost of debt related to working capital loans with maturity from September 2023 onwards as of Q2 2023. TSX: NPK OTCMKTS: VNPKF со со verde AGRITECH 10 10#11Market Overview The price of potassium chloride (KCI) has exhibited a consistent downward trend since H2 2022. The Average KCI CFR declined by 67% in Q2 2023, compared to Q2 2022, with a sharp 40% decrease from January to July 2023. 1400 1200 1000 800 600 400 200 1 KCI CFR Brasil average spot price (US$)¹ 0 abr/22 mai/22 jun/22 jul/22 ago/22 set/22 out/22 nov/22 dez/22 jan/23 fev/23 mar/23 apr/23 may/23 jun/23 1- Acerto Limited Report. TSX: NPK OTCMKTS: VNPKF со 11#12Currency exchange As the US dollar weakened by 10% against the Brazilian Real during the year, Verde's sales revenue, priced based on potassium. chloride, suffered a decline when converted to Brazilian Real. 5.60 5.40 Canadian dollar devaluated by 6% versus Brazilian Real in Q2 2023, with and average exchange rate of R$3.76 in the quarter, compared to R$3.99 in Q2 2022. As of August 10, 2023, US$1.00 and C$1.00 R$3.62 = 5.20 5.04 4.96 5.00 4.76 4.80 4.60 4.40 apr/22 may/22 jun/22 4.20 4.10 = R$4.85, 4.00 3.94 3.90 3.86 3.77 3.80 3.70 3.60 3.50 3.40 Source: https://www.bcb.gov.br/estabilidadefinanceira/historicocotacoes TSX: NPK OTCMKTS: VNPKF apr/22 may/22 jun/22 со USD/BRL Exchange Rate jul/22 aug/22 sep/22 oct/22 nov/22 dec/22 jan/23 CAD/BRL Exchange Rate 5.02 4.98 4.85 feb/23 mar/23 apr/23 may/23 june/23 3.72 jul/22 aug/22 sep/22 oct/22 nov/22 dec/22 jan/23 feb/23 mar/23 apr/23 may/23 3.68 june/23 12 3.65#13Market outlook The agricultural market is showing early signs of recovery: . Agricultural commodity prices are no longer experiencing a rapid decline. Interest rates in Brazil have started to decrease from their elevated levels. Projections indicate a positive outlook for inflation control and stability in the coming years. We anticipate that these shifts will soon mitigate the extraordinary distortions that temporarily favoured competitors with lower capital costs. TSX: NPK OTCMKTS: VNPKF со 13#14Q2 2023 Highlights Cash Cash and other receivables held by the Company in Q2 2023 were $23.8M, compared to $22.1M in Q2 2022. Profitability Cash utilised from investing activities decreased by 97% in Q2 2023, to $329k compared to $12,480,000 in Q2 2022 as costs relating to the commissioning and construction of Plant 2 were high in Q2 2022 as the Group worked towards opening plant 2. The company has successfully secured a bank loan of $5.5 million from the Bank of Brazil, with a grace period of 12 months and a repayment schedule spanning 48 months. Total loans for CAPEX and working capital in Q2 2023 $38.4 million. Sales by volume were 107K tonnes, compared to 202K tonnes in Q2 2022 and 56K tonnes in Q2 2021. Revenue in Q2 2023 was $10.3M, compared to $24.9M in Q2 2022. EBITDA before non-cash events in Q2 2023 was $2.1M, compared to $10.8Min Q2 2022. Net profit in Q2 2023 was $0.2M, compared to a $9.6M profit in Q2 2022. Total equity and liabilities in Q2 2023 were $97.3M, compared to $65.5M in Q2 2022. Operations Verde announced the carbon capture properties of its Products as detailed by an independent study conducted at Newcastle University under the leadership of Prof. David Manning, PhD, a renowned soil scientist. The CO2 capture is inherent to the Products and is estimated at 120kg per tonne. As a result, in the production scenario of 50Mtpy, Verde would be one of the world's largest carbon capture projects with a total of 6 million tonnes of CO2 permanently subtracted from the atmosphere every year. TSX: NPK OTCMKTS: VNPKF со 14#15Q2 2023 Financial Statements All amounts in CAD $'000 Revenue Production costs (1) Gross Profit Gross Margin Sales and marketing expenses Q2 2023 Q2 2022 % A 2023 YTD 2022 YTD % A 10,305 24,861 (59%) 21,430 36,165 (41%) (1,914) (5,332) (64%) (4,623) (7,987) (42%) 8,391 19,529 (57%) 16,807 28,178 (40%) 81% 79% N/A 78% 78% N/A (1,124) (1,070) 5% (2,331) (2,028) 15% Product delivery freight expenses (3,723) (7,040) (47%) (7,590) (10,013) (24%) General and administrative expenses (1,442) (655) 120% (2,814) (1,696) 66% EBITDA (2) 2,102 10,764 (80%) 4,072 14,441 (72%) Share Based and Bonus Payments (Non-Cash Event) (3) 144 (40) (458%) 116 (104) (211%) Depreciation, Amortisation and P/L on disposal of (968) (38) 2436% plant and equipment (1,880) (64) 2826% Operating Profit after non-cash events Interest Income/Expense Net Profit before tax Income tax (5) 1,278 10,686 N/A 2,308 14,273 N/A (4) e tax (3) (951) (245) 288% (1,993) (430) 363% 327 10,441 N/A 315 13,843 N/A (86) Net Profit 241 (816) 9,625 (89%) (182) (1,186) (85%) N/A 133 12,657 N/A (1) - C$1,770,000 of depreciation in 2023 related to the investments made in Plant 1, Plant 2 and access routes improvement in the last 12 months that are included in production costs in the financial statements have been reclassified to a non-cash event in the MD&A. (2)- Non GAAP measure. (3) Included in General and Administrative expenses in financial statements. (4) Please see Summary of Interest-Bearing Loans and Borrowings notes. (5) Please see Income Tax notes. TSX: NPK OTCMKTS: VNPKF со 15#16Operational Summary All amounts in CAD, except percentages Q2 2023 Q2 2022 % A 2023 YTD 2022 YTD % A Tonnes sold '000 107 202 (47%) 215 314 (31%) Average Revenue per tonne sold $ er tonne sold $ 96 123 (22%) 99 115 (14%) Average Production cost per tonne sold $ (18) (26) (32%) (21) (25) (16%) Average Gross Profit per tonne sold $ s fit per tonne s $ 78 97 (19%) 78 90 (13%) Average Gross Margin 81% 79% N/A 78% 78% N/A Operational Summary - Excluding freight revenue All amounts in CAD, except percentages Average revenue per tonne sold $ Average production cost per tonne sold $ Average Gross Profit per tonne sold $ Average Gross Margin TSX: NPK OTCMKTS: VNPKF Q2 2023 Q2 2022 % A 2023 YTD 2022 YTD % A 61 88 (31%) 64 83 (23%) (18) (26) (31%) (21) (25) 4% 44 62 (30%) 43 58 (34%) 71% 70% N/A 67% 69% N/A со 16#17Sales, General and Administrative Expenses All amounts in CAD $'000, except percentages Q2 2023 Q2 2022 % A 2023 YTD 2022 YTD % A Sales Expenses Sales and marketing expenses Fees paid to sales agents Product delivery freight expenses Total Sales expenses (1,030) (711) 45% (2,100) (1,533) 37% (94) (359) (74%) (231) (495) (53%) (3,723) (7,040) (47%) (7,590) (10,013) (24%) (1,124) (1,070) 5% (2,331) (2,028) 15% General expenses General administrative expenses (888) (389) 128% (1,809) (799) 126% Legal, professional, consultancy and audit costs (290) (77) 277% (607) (488) 24% IT/Software expenses (231) (185) 25% (343) (390) (12%) Taxes and licenses fees (33) (4) 811% (56) (19) 190% Total General expenses (1,442) (655) 120% (2,814) (1,696) 66% Sales and marketing expenses increased by 45% in Q2 2023, mainly due to the implementation of a field sales team, resulting in expenses related to salaries car rentals and travel. G&A expenses increased by 128% primarily be attributed to severance costs, with an expected cumulative annual cost reduction of $588,000. In Q2 2023, the Company set aside a bad debt provision of $25,000, within the total revenue of $75,000,000 generated over the preceding 12 months. Legal, professional, consultancy and audit costs increased by 278%, mainly due to higher expenditures linked to the Company's re-domiciliation to Singapore. TSX: NPK OTCMKTS: VNPKF со 17#18Logistics FOB vs CIF (tonnes) Sales Channels (% of total sales) 250,000 70% 59% 202,255 60% 53% 200,000 50% 150,000 107,816 100,000 73,348 64,722 50,000 34,468 137,533 40% 37% 32% 30% 20% 9% 10% 0 0% Q2 2023 Q2 2022 FOB CIF ■Total Q2 2023 ■Direct Sales Sales Agents Q2 2022 Distributors . Volume Sales FOB CIF Total YOY (47%) (47%) (47%) 9% The sales channels mix between had a reduction of 6% in Q2 2023, which was offset by a 5% increase in sales made through sales agents. The volume sold as CIF by the Company as a percentage of the total sales in Q2 2022 remained stable at 68% during Q2 2023. • Product delivery freight expenses decreased by 47% in Q2 2023, to $3,723,000 compared to $7,040,000 in Q2 2022. . Average freight cost per tonne remained stable in Q2 2023 compared to Q2 2022, at approximately C$34.50. TSX: NPK OTCMKTS: VNPKF со 18#19Annual Sales (tonnes) 1,400,000 1,200,000 1,000,000 800,000 600,000 91% 1,200,000¹ 1 800,000 27% 628,000 57% 64% 400,133 400,000 243,707 200,000 119,809 29,648 2018 2019 2020 2021 2022 1 - Targeted range sales volume and revenue based on FY 2023 guidance. Q2 2023 Q1 2023 10,000,000² 23,000,000 2 50,000,000 2 2023 PFS 10Mtpy PFS 23Mtpy PFS 50Mtpy - 2 Distinct production scenarios contemplated in the updated NI 43-101 Pre-Feasibility Technical Report Cerrado Verde Project (PFS). Currency exchange rate: US$1.00 = R$5.30. For further information, please see PFS at: https://investor.verde.ag/wp-content/uploads/2022/05/NI-43-101-Pre-Feasibility-Technical-Report-for-the-Cerrado-Verde-Project.pdf. TSX: NPK OTCMKTS: VNPKF со 19#20Loans ● In Q2 2023, Verde recorded cash and trade receivables totaling over $23.8 million, providing valuable support for the company's cash flow. 40,000 35,000 30,000 This strengthened position enables Verde to fulfill its payment obligations in full for debts due in 2023. 25,000 20,000 • The total net loans in the end of Q2 2023 was $38,4 million 15,000 10,000 5,000 • To further enhance its cash flow, the Company obtained additional loans of $5.76 million in the Q2 from local banks. By leveraging its cash reserves and obtaining these additional loans, the Company aims to fortify its financial stability, ensuring sufficient liquidity to meet payment obligations and sustain ongoing operations. • Verde's average current loan rates stand at 16.54% per annum. 1 Amortization from Q3 2023 to Q4 2023. 2- Total loans at year end consider the face value of the loans. No interest rates are included. Values might change according to the Central Bank of Brazil's SELIC rate. TSX: NPK OTCMKTS: VNPKF Company Loans Profile →Loans remaninig at the end of each quarter-Loan Payments Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 Q4'26 C$'000 2023 2024 2025 2026 Amortization and Interest 9.41 18.6 7.7 5.9 Total loans at year-end² 29.0 13.8 7.2 4.6 со 20 20#2121 Appendix#22Production costs The table below shows a breakdown of Verde's production costs for BAKSⓇ and K Forte®, and what percentage of those costs is not controllable by management: Projected cost per tonne of product for 2023 (C$) (¹) K ForteⓇ Bulk (Plant 1) K ForteⓇ Bulk (Plant 2) Total cost expected Non-controllable costs Cash cost Assets depreciation for 2023 (2) (% of total costs) 20.2 3.8 24.0 61% 10.2 2.8 13.0 58% K Forte® Big Bag (Plant 1) 30.4 2.8 33.2 71% BAKS® (2%S 0.2%B) (3) Bulk (Plant 1) 42.1 3.8 45.9 81% BAKS® (2%S 0.2%B) Big Bag (Plant 1) 51.3 3.8 55.0 85% 1- The costs were estimated based on the following assumptions: Costs in line with Verde's 2023 budget. Sales volume of 1.0Mt per year. Crude Oil WTI (NYM U$/bbl) = US$80.00. Diesel price = U$$1.26. Currency exchange rate: US$1.00 = R$5.25; C$1.00 = R$ 4.20. Total cost per tonne includes all costs directly related to production and feedstock extraction in addition to assets depreciation 2 - Total cost per tonne includes labor mining, mining, crushing, processing, maintenance of support facilities, product transportation from mine pits to production plants, laboratory expenses, G&A, and environmental compensation expenses. 3- BAKSⓇ can be customized according to the crop's needs, so it can have several compositions. The 2%S 0.2% B composition is responsible for most of Verde's sales. TSX: NPK OTCMKTS: VNPKF со 22 22#23Company Investments ($2000) The Company invested over $111 million since its foundation. The investments were mainly in research and development, landing, construction of Plant 1 and Plant 2, equipment, and access improvement. Company Investments ($2000) 35,000 30,000 25,000 20,000 15,000 10,000 5,000 41,623 111,238 Pre IPO 2007 2011 2012 2017 2018 2019 2020 2021 2022 Total TSX: NPK OTCMKTS: VNPKF со 23 23#24Earned Growth Rate Earned Growth Rate ("EGR") is an accounting-based methodology that provides companies with an objective, data-driven connection between customer success, repeat and expanded purchases, word-of-mouth recommendations, a positive company culture, and business results. It gauges customer loyalty through the lens of revenue growth, identifying which revenue streams come from existing customers doing more business with a company and which ones come from referrals. The EGR measures the sales growth by volume generated by returning customers and new client purchases made by existing clients' referrals.¹ Verde's EGR was 38.71% in 2022, which shows a positive rate of sales driven by returning customers and clients' referrals. Year Earned Growth Rate 2019 2020 2021 2022 Not Registered 61% 165% 38.71% 1 - For a summarized definition of EGR, see article: F. Reichheld, D. Darnell and M. Burns, Net Promoter 3.0, Harvard Business Review, November 2021, available at: https://hbr.org/2021/11/net-promoter-3-02 TSX: NPK OTCMKTS: VNPKF со 24#25Number of clients per year The table below indicates the number of clients who purchased Verde's products annually in Brazil since 2017, along with their total cultivated area. The percentage of the clients' total purchase potential (in tonnes of Product) that was served by Verde increased from 9.57% in 2021 to 16.76% in 2022, demonstrating an increase in market adoption due to customers applying Verde's product in a larger area of their farms. Number of total clients Year 2018 2019 2020 2021 2022 127 351 847 1277 1223 Sales volume ('000 tonnes) 29 120 244 400 628 Total area cultivated by clients (million hectares) 1.09 1.99 2.01 3.03 2.93 Total purchase potential ('000 tonnes of K Forte) 1,629 2,882 2,825 4,179 3,747 Percentage of the clients' total purchase potential (in tonnes of Product) served by Verde 1.78% 4.16% 8.64% 9.57% 16.76% TSX: NPK OTCMKTS: VNPKF со 25#26Potassium Chloride Replacement • • Potassium chloride (KCI) is the conventional source of potassium, produced mostly in Canada, Russia, and Belarus. Brazil is highly dependent on imported KCl, accounting for over 96% of the total potassium used in the country's crops. Despite its effectiveness as a potassium fertilizer, the production and use of KCI have resulted in significant environmental and social costs. The manufacturing process of KCl, has been linked to devastating effects, including human fatalities, large-scale water pollution due to chloride contamination, and the formation of sinkholes leading to the destruction of an entire city. By using Verde's product in leu of potassium chloride fertilizers, farmers are preventing chloride from being applied into soils. 1,2 Period In Q2 2023 Since production started Chloride amount that has not been applied to agricultural soils 8,480M tonnes 129,682 tonnes Once it achieves the production capacity of 50 million tonnes per year, the Company aims to mitigate the application of approximately 94.5 billion tonnes of chloride into soils over time³ in collaboration with its customers. 1 Verde's Product is a salinity and chloride-free replacement for KCl fertilizers. 1 tonne of Product (10% K2O) has 0.1 tonnes of K20, which is equivalent to 0.17 tonnes of potassium chloride (60% K2O), containing 0.08 tonnes of chloride. Potassium chloride is composed of approximately 46% of chloride, which can have biocidal effects when excessively applied to soils. According to Heide Hermary (Effects of some synthetic fertilizers on the soil ecosystem, 2007), applying 1 pound of potassium chloride to the soil is equivalent to applying 1 gallon of Clorox bleach, regarding killing soil microorganisms. Soil microorganisms play a crucial role in agriculture by capturing and storing carbon in the soil, making a significant contribution to the global fight against climate change. 21 tonne of Product (10% K2O) has 0.1 tonnes of K20, which is equivalent to 0.17 tonnes of potassium chloride (60% K2O), containing 0.08 tonnes of chloride. 3 Based on the 50Mtpy production scenario of the NI 43-101 Pre-Feasibility Technical Report. See the PFS for further information: https://investor.verde.ag/wp-content/uploads/2022/05/NI-43-101-Pre- Feasibility-Technical-Report-for-the-Cerrado-Verde-Project.pdf TSX: NPK OTCMKTS: VNPKF со 26#27Verde's production process is sustainable. The processing does not require tailings dams, nor does it generate any waste by products. In sum, the ore recovery rate is 100%. Environmental The mined area is mainly composed of degraded pasturelands that, once mined, Verde transforms into tropical forest. To that end, the Company planted 4,300 trees in 2019, 5,000 in 2020, 9,888 in 2021 and 10,341 in 2022, totaling over 29,500 trees. In 2023, Verde intends to plant 5,000 trees. All planted species are originally native to the region, many of which are today deemed endangered species. TSX: NPK OTCMKTS: VNPKF со 27 27#28Permit Status - Last 12 months Pit Date Category Status Event 10 March 20, 2023 Mining 2 November 12, 2022 Environment Applied Applied 400,000 tpy Mining Concession Application 9 October 25, 2022 Mining Applied 8 October 25, 2022 Mining Applied 7 October 25, 2022 Mining Applied 22,500,000 Operating Environmental License 1,000,000 tpy Mining Concession Application 1,500,000 tpy Mining Concession Application 2,500,000 tpy Mining Concession Application 6 September 12, 2022 Mining Approved 4,660,000 tpy Feasibility Study TSX: NPK OTCMKTS: VNPKF со 28#29Summary of licenses and permits Under Brazilian law, a pit is fully permitted to mine when the Company holds both a Mining Concession/Permit and Environmental License for that area. Verde is fully permitted to mine 2,833,000 million tonnes per year ("Mtpy”) and has submitted concurrent mining and environmental applications for an additional 25,000,000 tpy, still pending approval. The Company has different mine pits, each at different permitting stages and targeting different volumes, as summarized in the table below: Fully Permitted to Mining (tpy) Environmental (tpy) Mine Pit Produce (tpy) Granted Pending Granted Pending 1 233,000 233,000 0 233,000 0 2 2,600,000 2,600,000 22,500,000 2,600,000 22,500,000 3 0 0 2,500,000 0 2,500,000 Other pits 0 0 11,560,000 0 0 Total 2,833,000 2,833,000 36,560,000 2,833,000 25,000,000 The Company is fully permitted to achieve its 2023 targets. TSX: NPK OTCMKTS: VNPKF со 29 29#30Verde's market size according to average KCI CFR Ports price K Forte® has 10% K₂O whereas KCl has 60% K₂O. Therefore, a farmer in Brazil pays 6 times less per tonne of K Forte® than it pays per tonne of KCl. Verde delivers K ForteⓇ to the farmers for the same price per tonne of K2O than KCl. Verde's freight costs increase as it sells its products further away from its production plants. The map and chart below show Verde's market size, highlighting the regions of Brazil where the Company can deliver K ForteⓇ for the same cost or at a lower cost per tonne of K₂O than KCl, according to the average KCI CFR Ports price. 1 Potential market for Verde (million tonnes of K ForteⓇ / KCl price) KCI CFR Ports price (US$/t) $100 9.11 |] 9.11Mtpy $200 $300 L $400 U L 9.11 25.01 ]34.12Mtpy 9.11 25.01 9.11 25.01 $500 9.11 25.01 21.45 |]55.57Mtpy 21.45 11.42 || 67.00Mtpy 21.45 11.42 ] 69.67Mtpy 2.68 RR AP PA AM MA AC RO MT ■US$ 100 US$ 200 US$ 300 US$ 400 US$ 500 1 - The analysis is based on the following assumptions: Brazil's market size projected for 2023 = 7.02Mt of K2O, equivalent to 70.20Mt of K Forte® (10% K20). 0.8% rate charged for brokerage and 0.17% rate charged for insurance rate, 25% rate charged for sea freight, US$25 (blender/dealer costs) + 12% (from KCl delivered to the blender) rate charged by blender/dealer, which includes taxes and profit margin (source Tec-Fértil). Diesel price = US$1.08. Currency exchange rate: US$1.00 = R$5.25. ForteⓇ weighted average freight cost based on the market size in tonnes of K20 for each region. K ForteⓇ production cost per tonne (100kg of K2O) = US$10.17 (for 69.67Mtpy, 67.00Mtpy, and 55.57Mtpy markets), US$11.29 (for 34.12Mtpy market) and US$12.95 (for9.11Mtpy market), according to Verde's NI 43-101 Pre-Feasibility Technical Report Cerrado Verde Project at each production scenario (10Mtpy, 23 Mtpy and 50Mtpy). For further information, please refer to the PFS at: https://investor.verde.ag/wp-content/uploads/2022/05/NI-43-101-Pre-Feasibility-Technical-Report-for-the-Cerrado-Verde-Project.pdf Map Label ☐ Non-economic KCI CFR Brazil Ports Price US$ 100 US$ 200 US$ 300 US$ 400 US$ 500 Amazon Rainforest (predominantly) / non-economic TSX: NPK OTCMKTS: VNPKF со MS RS PR TO GO DE SC SP CE RN PB PI PE AL SE BA MG ES 30#31Brazil's market size projected for 2023 The table below compares K ForteⓇ, potassium chloride and K₂O, based on their K2O amount and potential market size. Potassium unit* K₂O grade K₂O 100% K Forte® 10% KCI 60% 1 Source: Tec-Fértil. TSX: NPK OTCMKTS: VNPKF Amount of K₂O per tonne of fertilizer Brazil's potential market size (million tonnes)¹ 1,000 kg 7.02 100kg 70.2 600kg 42.12 со 31#32Verde's margin according to average KCI CFR Ports price The table below compares Verde's and KC's prices delivered to the farmer and shows Verde's potential revenue at each case. KCI CFR Ports (US$ per tonne) KCl price per tonne delivered to the farmer (600kg of K20)(US$)1,2 263 K ForteⓇ production cost per tonne (100kg of K20)(US$)³ (+) K Forte® production cost per tonne x 6 (600kg of K20)(US$) (+) Freight cost to deliver 6 tonnes of K ForteⓇ to the farmer (600kg of K20)(US$)4 (=) K ForteⓇ delivered to the farmer (600kg of K20)(US$) Brazil's potential market size to be supplied by Verde (million tonnes of K ForteⓇ, 100kg of K2O) Potential revenue for Verde (million US$)5 Verde's margin (% of potential revenue)5 100 12.95 77.71 167 244 9 399 7% 200 378 11.29 67.72 238 306 34 2,150 19% 300 493 10.17 61.00 281 342 56 4,566 31% 400 608 10.17 61.00 313 374 67 6,789 38% 500 723 10.17 61.00 325 386 70 8,396 47% The table above is based on the following assumptions: Brazil's market size projected for 2023 = 7.02Mt of K2O, equivalent to 70.20Mt of K Forte® (10% K2O). Diesel price = US$1.08. Currency exchange rate: US$1.00 = R$5.25. 1 - Source: Acerto Limited Report, as of December 12, 2022. 2 - 0.8% rate charged for brokerage and 0.17% rate charged for insurance rate, 25% rate charged for sea freight, US$25 (blender / dealer costs) + 12% (from KCl delivered to the blender) rate charged by blender/dealer, which includes taxes and profit margin (source Tec-Fértil). 3 - Based on Verde's NI 43-101 Pre-Feasibility Technical Report Cerrado Verde Project, considering K Forte®'s potential market for each production scenario (10Mtpy, 23Mtpy and 50Mtpy). 4 - Weighted average freight cost based on the market size in tonnes of K20 for each region. The freight value variation is due to the different regions of Brazil where the Company can deliver K Forte® for the same cost or at a lower cost per tonne of K₂O than KCl, according to the average KCI CFR Ports price (please refer to the map on previous slide). 5 - Verde's potential revenue was calculated based on KCI's price to be delivered to the farmer multiplied by KCI's potential market in K2O demand. Verde's margin was calculated as the deduction of the total costs to deliver 6 tonnes K ForteⓇ to the farmer (production + freight costs) for each potential market of K ForteⓇ from Verde's potential revenue. TSX: NPK OTCMKTS: VNPKF со 32#33KCl CFR Ports delivered to the farmer The table below shows a breakdown of KCI CFR Ports price delivered to the farmer in Brazil. (+) (+) (+) (+) (+) KCI CFR Brazilian Ports Marine brokerage and (US$/t) insurance (US$) Demurrage and Storage (port costs) (US$/t) ¹ 1,2 Freight from the port to Blender/dealer's costs the blender (US$/t) 2,3 (US$/t) Blender/dealer's margin (US$/t) (+) (=) Freight from the blender to the farm (US$/t) KCl's price delievered to the farmer (US$/t) 100 1 51 35 25 22 29 263 200 300 23 2 52 35 25 35 29 378 53 53 36 25 47 29 493 400 4 54 37 25 59 29 608 500 5 55 38 25 72 29 723 The analysis is based on the following assumptions: 0.8% rate charged for brokerage and 0.17% rate charged for insurance rate, according to KCI CFR Ports price, 25% rate charged for sea freight, US$25 (blender / dealer costs) + 12% (from KCl delivered to the blender) rate charged by blender/dealer, which includes taxes and profit margin (source Tec-Fértil). Diesel price = US$1.08. Currency exchange rate: US$1.00 = R$5.25. 1 - Port costs weighted average include storage plus stevedorage and other related charges. 2 - Source: Acerto Limited Report, as of December 12, 2022. 3- The variation in freight from the port to the blender is due to a 1% charge (from KCI CFR Ports price) regarding transportation losses and damages (source Tec-Fértil). TSX: NPK OTCMKTS: VNPKF со 33#3434 34 со verde AGRITECH TSX: NPK | OTCMKTS: VNPKF investor.verde.ag