#11 Q1 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 5% OFF Coupon (USA): Q1202350FF 5% OFF Coupon (CA): Sold Out Net weight 44lb [20kg] OMRI LISTED For Organic Use A 44 lbs bag of this product will cover 1.000 square feet of lawn. ] The discount codes are valid through June 23, 2023. The codes are limited to a single unit per order and to a single order. со verde AGRITECH TSX: NPK | OTCMKTS: VNPKF 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 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 2022 Market Overview.... Commodities prices in Brazil. Brazilian Economic Scenario ....... Q1 2023 Highlights ..... 06 5659 07 05 Annual Sales ...... 14 14 Sales, General and Administrative Expenses. 15 Sales Channels ....... 10 Contingency Plan ...... Q1 2023 Financial Statements Loans ... 11 Q1 2023 Operational Summary .... 12 Appendix.... 16 17 18 19 Logistics...... 13 TSX: NPK OTCMKTS: VNPKF со 4#5Market Overview In 2022, the market experienced an oversupply of potash due to increased availability. Coupled with a 15% decrease in potash consumption in Brazil, this resulted in a 23% increase in year-end potash stock, highlighting the lower overall demand. 2,3 K2O consumption in Brazil per year (million tonnes) 8.00 7.72 7.00 6.00 5.00 4.00 3.00 2.00 K20 Consumption (million tonnes) 2.71 3.99 Year-end stock in Brazil ('000 tonnes) 6.57 2,148 KCl 1,740 1.20 1.00 0.00 1990 2000 2010 2021 2022 Year Fertilizers 8,441 7,274 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2022 2021 Source: 1 - Brazilian Fertilizer Mixers Association (from "Associação Misturadores de Adubo do Brasil") 2- Brazilian potash consumption, Statistical Yearbook of the National Association for the Dissemination of Fertilizers ("ANDA", from Associação Nacional para Difusão de Adubos) 3 - Brazilian Fertilizer Mixers Association (from "Associação Misturadores de Adubo do Brasil"). TSX: NPK OTCMKTS: VNPKF со S#6200 190 180 170 160 150 140 130 01/04/2022 Commodities prices in Brazil Soybeans (Paranaguá) price has declined by 33% over the past 12 months, with a significant drop of 21% in the last three months. Potash prices have significantly declined, with a 67% decrease over the past year, and a sharp 22% decline in the first three months of 2023. Soybeans price - Paranaguá (R$) 1 2 KCI CFR Brasil average spot price (US$)² TSX: NPK | OTCMKTS: VNPKF 17/05/2022 29/06/2022 10/08/2022 22/09/2022 07/11/2022 20/12/2022 Source: 1 - CEPEA - ESALQ / USP. Available at: https://www.cepea.esalq.usp.br/br/indicador/soja.aspx 2- Acerto Limited Report. 01/02/2023 17/03/2023 03/05/2023 со 0 600 400 200 abr/22 1200 1000 800 mai/22 jun/22 jul/22 ago/22 set/22 out/22 nov/22 dez/22 jan/23 fev/23 mar/23 abr/23 mai/23 6#7Brazilian Economic Scenario Brazilian Real versus US Dollar From January to March 2023, the Brazilian Real decreased by 1% in relation to US Dollar, compared to the same period of 2022. As of May 23, 2023, US$1.00 = R$4.95 jan/22 5.37 6.00 5.53 5.19 4.97 4.96 5.04 4.76 5.00 4.00 3.00 2.00 1.00 0.00 feb/22 mar/22 apr/22 may/22 jun/22 aug/22 jul/22 aug/22 sep/22 CAD/BRL Exchange Rate oct/22 4.08 3.93 3.77 3.86 3.94 4.15 3.98 3.93 3.83 3.92 3.85 3.87 3.85 3.81 sep/22 oct/22 nov/22 dec/22 jan/23 feb/23 mar/23 nov/22 dec/22 USD/BRL Exchange Rate 5.14 5.24 5.25 5.27 5.24 jan/23 feb/23 mar/23 5.20 5.17 5.21 Brazilian Real versus Canadian Dollar 5.00 4.38 From January to March 2023, the Brazilian Real 4.00 valued by 7% in relation to Canadian Dollar, compared to the same period of 2022. 3.00 2.00 As of May 23, 2023, C$1.00 = R$3.68 Source: https://www.bcb.gov.br/estabilidadefinanceira/historicocotacoes TSX: NPK OTCMKTS: VNPKF 1.00 0.00 jan/22 feb/22 mar/22 apr/22 may/22 jun/22 jul/22 со 7#8Brazilian Economic Scenario Brazilian SELIC interest rate at year end 13.00% 10.00% 7.00% 4.50% 4.00% 2.00% 1.00% 9.25% 2019 2020 2021 13.75% 13.75% 12.50% 10.00% 9.00% 8.75% 2022 Current rate 2023 Prediction 2024 Prediction 2025 Prediction 2026 Prediction Verde's debts are tied directly to the Central Bank of Brazil's monetary policy interest rate, known as SELIC. With the current SELIC rate at 13,75% per year, the interest expenses projected for 2023 are $4.5 million. Considering Verde's existing debts, a 1% change in the SELIC rate would result in an approximate impact of $0.3 million on the Company's annual interest expenses. The Central Bank of Brazil has projected a decrease of approximately 36% in the SELIC rate by the end of 2026. The current SE LIC rate is 13.75%. Source: Focus Report, Central Bank of Brazil (May 2023). Available at: https://www.bcb.gov.br/en TSX: NPK OTCMKTS: VNPKF со 8 00#90 LO 5 10 15 Brazilian Economic Scenario Annual inflation rate and Market expectations May/13 May/14 inflation target May/15 May/16 - May/17 May/18 May/19 May/20 May/21 May/22 May/23 May/24 IPCA inflation - Focus inflation expectation - IPCA · Tolerance interval - Upper limit Tolerance interval - Lower limit Source: Focus Report, Central Bank of Brazil (May 2023). Central Bank of Brazil. Available at: https://www.bcb.gov.br/en TSX: NPK OTCMKTS: VNPKF со May/25 Inflation in Brazil has shown a decreasing trend since May 2022. The Central Bank of Brazil has set its expectation for inflation at 5.80% for the year 2023. Furthermore, the bank forecasts inflation rates of 4.00% per year from 2024 to 2026. These projections indicate a positive outlook for inflation control and stability in the coming years. 6#10Cash Cash utilised from investing activities decreased by 44% in Q1 2023, to $1.9 million compared to $3.4 million in Q1 2022. Q1 2023 Highlights Cash and other receivables held by the Company in Q1 2023 were $34.3 million, compared to $22.3 million in Q1 2022 and $4.8 million in Q1 2021. Total loans for CAPEX and working capital in March 31: $45.4 million. Profitability Sales by volume were 108,000 tonnes in Q1 2023, compared to 112,000 tonnes in Q1 2022 and 16,558 tonnes in Q1 2021. Revenue in Q1 2023 was $11.1 million, compared to $11.3 million in Q1 2022 and $0.8 million in Q1 2021. Gross margin in Q1 2023 was 76%, compared to 77% in Q1 2022. Operations EBITDA before non-cash events in Q1 2023 was $2.0 million, compared to $3.7 million in Q1 2022 and a $0.8 million loss in Q1 2021. Net loss in Q1 2023 was $0.1 million, compared to a $3.0 million profit in Q1 2022 and a $1.0 million loss in Q1 2021. Total non-current assets in Q1 2023 were $68.3 million, compared to $30.1 million in Q1 2022 and $21.4 million in Q1 2021. Verde's Plant 2 production capacity is 2.4Mtpy and Plant 1 operates at a capacity of 0.6Mtpy; therefore, Verde's current overall production capacity is 3Mtpy. TSX: NPK OTCMKTS: VNPKF со 10 10#11Q1 2023 Financial Statements All amounts in CAD $'000 Q1 2023 Q1 2022 Revenue Production costs (1) Gross Profit Gross Margin Sales and marketing expenses 11,125 11,304 % A (2%) (2,710) (2,654) 2% 8,415 8,650 (3%) 76% 77% N/A (1,207) (958) 26% Product delivery freight expenses (3,867) (2,973) 30% General and administrative expenses (1,372) (1,041) 32% EBITDA (2) 1,969 3,678 N/A Share Based, Equity and Bonus Payments (Non-Cash Event) (3) (28) (64) 857% Depreciation and Amortisation (3) (911) (26) 3404% Operating Profit after non-cash events 1,030 3,588 N/A Interest Income/Expense (1,042) (185) 463% Net (Loss) / Profit before tax (12) 3,403 N/A Income tax (96) (370) (74%) Net Profit (108) 3,033 N/A (1) - $864,000 of depreciation 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 (2) Non GAAP measure. (3) Included in General and Administrative expenses in financial statements. TSX: NPK OTCMKTS: VNPKF со 11#12Operational Summary All amounts in CAD, except percentages Q1 2023 Q1 2022 % A Tonnes sold '000 108 112 (4%) Average revenue per tonne sold $ 103 101 2% Average production cost per tonne sold $ (25) (24) 6% Average Gross Profit per tonne sold $ 78 77 1% 76% 77% N/A Average Gross Margin 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 со Q1 2023 Q1 2022 % A 67 75 (10%) (25) (24) 6% 42 51 (6%) 63% 68% N/A 12#13Logistics 120,000 100,000 80,000 FOB vs CIF (tonnes) 60,000 40,000 20,000 0 Q1 2023 Q1 2022 FOB CIF Total FOB CIF Total Sales Q1 2023 Q1 2022 YOY 34,248 44,942 (24%) 73,348 66,725 10% 107,596 111,667 (4%) TSX: NPK OTCMKTS: VNPKF • The Company has increased the volume sold as CIF, from 60% of total sales in Q1 2022 to 68% in Q1 2023. Product delivery freight expenses increased by 30% in Q1 2023, to $3,9 million compared to $3,0 million in Q1 2022. Weighted average distance of Product delivered increased by 12% in Q1 2023 compared to Q1 2022, with a $0.6 million impact in the quarter. In Q1 2023, the average freight cost per tonne of Product sold on a CIF basis increased from $44 to $53, compared to the previous year. From January to May 2023, the diesel price at Petrobras Distributors has decreased by approximately 33%. со 13#14Annual Sales (tonnes) 1,400,000 1,200,000 1,000,000 800,000 600,000 57% 64% 400,133 400,000 243,707 200,000 119,809 29,648 2018 2019 2020 2021 1 - Targeted range sales volume and revenue based on FY 2023 guidance. 91% 628,000 2022 1,200,000¹ 1 800,000 27% 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 14#15Sales, General and Administrative Expenses All amounts in CAD $'000, except percentages Sales Expenses Sales and marketing expenses Fees paid to sales agents Product delivery freight expenses Total Sales expenses Q1 2023 General expenses General administrative expenses Legal, professional, consultancy and audit costs IT/Software expenses Taxes and licenses fees Total General expenses Q1 2022 YOY (1,070) (822) 30% (137) (136) 1% (3,867) (2,973) 30% (5,074) (3,931) 29% (920) (410) 124% (317) (411) (23%) (112) (204) (45%) (23) (16) 44% (1,372) (1,041) 32% General administrative expenses increased by 125% in Q1 2023, mainly driven by an adjustment implemented to ensure alignment with accounting standards, which involved shifting the cost center from production costs to general administrative expenses in the quarter. Furthermore, additional rental expenses were incurred in Plant 2, The increase in sales and marketing expenses can be primarily attributed to the implementation of a field sales team, which resulted in expenses related to car rentals and travel. TSX: NPK OTCMKTS: VNPKF со 15#16Sales Channels Sales Channels (% of total sales) 70% 66% 60% 50% 40% 44% 37% 30% 30% 20% 10% 4% 0% Q1 2023 Direct Sales Sales Agents Q1 2022 Distributors TSX: NPK OTCMKTS: VNPKF 19% Sales made directly by Verde's team increased by 45% in Q1 2023 compared to Q1 2022. This increase in direct sales has partially offset the decline of 80% and 23% in sales volume reported by Distributors and Sales Agents, respectively, in the same period. со 16#17Loans ● In Q1 2023, Verde recorded cash and other receivables totaling over $34.3 million, providing valuable support for the company's cash flow. This strengthened position enables Verde to fulfill its payment obligations in full for debts due in 2023. 50,000 40,000 30,000 20,000 10,000 ● • To further enhance its cash flow, the Company obtained additional loans of $8.0 million in the Q1 2023 and $7.7 million³ in Q2 2023 from local banks. By leveraging its cash reserves and obtaining these additional loans, the Company aims to fortify its financial stability, ensuring sufficient liquidity to meet payment obligations and sustain ongoing operations. Q2'23 Q3'23 Q4'23 Company's Loan Profile (C$) Q1'24 Q2'24 Q3'24 -Loan Payments (included Interest) -Loans remaninig at the end of the each quarter Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 Q4'26 C$'000 2023 2024 2025 2026 . Verde's average current loan rates stand at 16.25% per annum. Amortization 20.51 16.8 7.2 3.5 Total loans at year-end² 32.6 15.7 8.5 5.0 1 - Armotization from Q2 2023 to Q4 2023. 2- Total loans and payments includes all interest projected for the operation. Values might change according to the Central Bank of Brazil's SELIC rate. 3 - 12 months grace period, total loan period 60 months. Includes interest rates. TSX: NPK OTCMKTS: VNPKF со 17#18Contingency Plan In light of the current market conditions, Verde has been actively implementing cost reduction measures and expense optimization strategies since March 2023. These initiatives have identified various opportunities for savings and cost avoidance, with an estimated total impact of over $1.2 million over a 12-month period. Outlined below are some of the actions undertaken by the company, along with the projected annual savings for each: Action Workforce optimization Description Reduction of 30 personnel across operations, maintenance, inbound logistics, and back-office functions, including directors and managers. Estimated savings in 12 months $772,000¹ Machinery optimization Third-Party contract renegotiation Renegotiating rental contracts for machinery such as wheel loaders, mining excavators, and trucks. $407,000 Reviewing and renegotiating contracts with third-party vendors. $62,000 These measures reflect Verde's commitment to optimizing its operations, improving cost efficiencies, and enhancing financial performance in the current market environment. 1 - Severance fee expenses estimated at $90,000. TSX: NPK OTCMKTS: VNPKF со 18#1919 Appendix#20Production costs The table below shows a breakdown of Verde's production costs for BAKSⓇ and K Forte®, and what percentage of those costs is not controllable by management: Projected cost per tonne of product for 2023 (C$) (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 20#21Summary of Interest-Bearing Loans and Borrowings Part 1: Lender Loan start date Purpose (months) Grace period Term (months) Loan value (R$'000) Balance at Mar 31, 2023 (C$'000) Repayable by Total interest payable* Bradesco Mar, 2023 Capex 6 18 4,729 1,262 Mar, 2025 CDI (1) +4.18% Bradesco Jan, 2023 Capex 6 18 10,000 2,594 Jan, 2025 CDI (1) +4.21% Bradesco Jan, 2023 Capex 6 18 5,000 1,297 Jan, 2025 CDI (1) +4.57% Inter Jan, 2023 Working capital 12 24 5,000 1,294 Jan, 2026 CDI (1) +5.51% Itaú (4) Jan, 2023 Working capital 6 6 5,867 1,565 July, 2024 15.84% Brazil Dec, 2022 Working capital 6 18 10,000 3,563 Dec, 2024 CDI (1)+4.10% Brazil (4) Dec, 2022 Working capital Itaú (4) Dec, 2022 Working capital Itaú (4) Dec, 2022 Working capital Brazil Oct, 2022 Working capital 2662 12 12 4,891 1,305 Dec, 2023 14.88% 6 7,800 2,081 May, 2023 15.96% 6 12,105 3,229 May, 2023 16.08% 12 48 20,000 8,319 Oct, 2027 CDI (1) +3.70% Votorantim Sep, 2022 Working capital 12 30 10,000 3,206 Mar, 2025 CDI (1) +5.10% Brazil Sep, 2022 Working capital 6 24 5,000 1,491 Sep, 2024 CDI (1) +3.00% Bradesco Aug, 2022 Equipment 6 24 5,597 1,676 Oct, 2024 IPCA (2) +5.19% ABC Brazil Aug, 2022 Working capital 5 24 3,500 966 Sep, 2024 CDI (1) +7,44% ABC Brazil Aug, 2022 Working capital 6 24 1,500 432 Sep, 2024 CDI (1) +7,44% Santander ABC Brazil Aug, 2022 Working capital 3 24 Aug, 2022 Working capital 6 30 12,000 2,500 2,755 Aug, 2024 CDI (1) +4,85% 757 Mar, 2025 CDI (1) +7,44% (1) (2) CDi (Certificado de Depósito Interbancário) is the average of interbank overnight rates in Brazil. As at March 31, 2023, the 12 months cumulative rate was 13.28%. Inc Variable interest (IPCA) - Broad Consumer Price Index, a measure of the average price needed to buy consumer goods and services. As at March 31, 2023 the 12 months cumulative rate was 5.60%. (4) - $516,000 out of $1,812,000 interest expenses in Q4 2022 were due to a specific type of loan with Itaú and Banco do Brasil in Q4 2022, named "Reverse Factoring". According to accounting standards, the entire interest of Reverse Factoring operations must be recognized at the time of the loan, rather than over the loan period. In Q4 2022, these loans total $6,313,000, with a total of $560,000 in interest expenses. TSX: NPK OTCMKTS: VNPKF со 21#22Summary of Interest-Bearing Loans and Borrowings Part 2: Lender Brazil Loan start date Aug, 2022 Purpose Working capital Grace period (months) Term (months) Loan value (R$'000) Balance at Mar 31, 2023 (C$'000) Repayable by 6 18 5,000 1,151 Aug, 2023 BDMG Apr, 2022 Working capital 24 72 3,000 1,237 Mar, 2030 Total interest payable* CDI (1) +3,00% TJLP (3) +5,00% Santander Feb, 2022 Equipment 03 36 260 49 Feb, 2025 CDI (1)+4,60% Santander Feb, 2022 Equipment 03 36 888 208 Feb, 2025 CDI (1) + 4,60% Santander Feb, 2022 Equipment 03 36 1,340 286 Feb, 2025 CDI (1)+4,60% Santander Feb, 2022 Equipment 03 36 2,169 461 Jan, 2025 CDI (1)+4,60% Santander Feb, 2022 Equipment 03 36 888 189 Jan, 2025 CDI (1)+4,60% Brazil Various loans Jan, 2022 pre 2022 Working capital 06 36 5,000 1,065 Dec, 2024 CDI (1) +2,92% 9,842 2,968 Total 153,876 45,406 - (1) CDI (Certificado de Depósito Interbancário) is the average of interbank overnight rates in Brazil. As at March 31, 2023, the 12 months cumulative rate was 13.28%. (3) - TJLP (Taxa de Juros de Longo Prazo) is the long term interest rate in Brazil. As at March 31, 2023, the 12 months cumulative rate was 7.28%. 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 is composed of approximately 46% of chloride, which can have biocidal effects when excessively applied to soils.¹ 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. The average farmer applies 200 kg of potassium chloride to the soil per hectare per year, equivalent to the application of 1,600 litres of bleach as far as killing soil biodiversity.² Verde's Product is a salinity and chloride-free replacement for KCl fertilizers. Period In Q1 2023 Since production started Chloride amount that has been prevented from being applied into soils by farmers who used the Product in lieu of KCl fertilizers³ Bleach equivalent amount 136.1 million liters 8,559 tonnes 121,201 tonnes 1.93 billion liters Over the next 26 years, the Company intends, along with its customers, to have prevented approximately 1,503 billion liters of bleach from being applied into soils. 1 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, with regard to killing soil microorganisms. /2 - FAOSTAT, Agricultural use of nutrient potash, 2018. http://www.fao.org/faostat/en/#data/RFN 3 - 1 tonne of Product (10% K2O) has 0.1 tonnes of K2O, which is equivalent to 0.17 tonnes of potassium chloride (60% K2O), containing 0.08 tonnes of chloride. 4- 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 22,500,000 Operating Environmental License 1,000,000 tpy Mining Concession Application 1,500,000 tpy Mining Concession Application 7 October 25, 2022 Mining Applied 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% K2O). 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 K2O 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