The Goderich Salt Mine is located near the east edge of the Michigan salt basin. The stratigraphy consists of a sedimentary rock sequences which includes salt evaporates (or halites) contained within the Silurian-age Salina formation. The Silurian dolomites, shales, and evaporites are overlain by the dolomites and limestones of Devonian-age and underlain by Ordovician limestones and shales. The Salina group is classified into units in ascending order from A to G. The sediments of the Salina formation approach 3,000 ft (900 m) maximum thickness near the basin depositional center thinning out to several hundred meters or less on the basin margins where the salt is absent. The aggregate thickness of the salt in the Salina formation can exceed 2,000 ft (600 m) in the thickest sequences in the depositional center of the basin, thinning out to zero at the basin margins. The salt strata are highly continuous over the basin, and most of the major salt units can be traced for hundreds of kilometers. In the Goderich area, the aggregate thickness of the Salina formation is about 1,000 ft (300 m), of which approximately 40% consists of salt beds, with the B unit salt being the dominant salt bed. The geological interpretation assumes that the A-2 evaporite salt bed is continuous and potentially thickens to the west towards the center of the Michigan basin. The regional stratigraphic sequence is well understood from many wells drilled across the basin and locally in the Goderich area. The salt strata are highly continuous over the basin, and most of the major salt units can be traced for hundreds of kilometers. On a local scale, the continuity of the salt beds can be impacted by the presence of pinnacle reefs, displacement by faults, or the local leaching of salt. The Company can use various tools to characterize geological conditions in nearby areas to assess the possibility of encountering these local ground conditions at the mine. Mineral Deposit Type The Goderich Salt Mine is situated in the A-2 salt bed. The A-2 salt is immediately overlain by the A-2 carbonate sequence and underlain by the A-1 carbonate sequence. The base of the A-2 salt bed is located approximately 1,750 ft to 1,760 ft below surface at the mine shafts’ location. The A-2 salt bed in the shaft area is approximately 79 ft thick. Other salt beds above the mine consist of B, D, and F salt beds at progressively shallower depths. The upper most F salt bed is about 980 ft below surface at the shafts’ locations. The salt beds are nearly horizontal and dip at approximately 1.5° to the southwest. The A-2 salt contains parting features that may be encountered during mining or present stability challenges when shallow in the roof. The clay partings often exhibit rippled surfaces. The features tend to be weak and roof separation is common when located immediately above the roof at room center. The dolomite / anhydrite / clay bands’ (commonly referred to as rock bands) thickness ranges from thin lamina (less than one quarter inch) and four to six inches. The frequency and thickness of the rock bands increase near the top and the bottom of the A-2 salt. Slumping or folding structures within the salt are common. The rock of the A-2 carbonate bed, which overlies the A-2 salt, is a dolomite. The thickness of the A-2 carbonate bed is about 140 ft and the bedding has prominent partings that range in spacing from less than one inch and one to two feet. The estimated cohesive strength at bedding features is very low. There is little evidence of cross fracturing or jointing within the dolomite. The rock is prone to raveling as observed in areas where it has been exposed in the mine roof.

Salt is mined using the room and pillar method via development mining using continuous miners (each a “CM”) with tungsten carbide teeth shear the salt from the rock face. Production mining is completed using CMs in production panels. Once a panel has been mined, the back is scaled and bolted on a 6’ x 4’ pattern with 7’-6” point anchored mechanical bolts. Continuous miners (CM) are manufactured by Joy Global, a Komatsu company. Once mined, rock salt is loaded immediately onto a flexible conveyor train (“FCT”) that is located at the rear of the CM or by bulldozer (if needed). From the FCT, the rock salt is offloaded to the main underground belt conveyance system where it is then transported to underground crushers and the mill. The general method of mining employed at the Goderich Mine is known as room and pillar mining. In utilizing room and pillar mining, salt is recovered in a horizontal plane, creating a horizontal network of rooms and pillars at multiple stacked levels, analogous to the bays in a parking garage. To do this, "rooms" of salt are extracted via the mining process while "pillars" of untouched material are left to support the overlying roof, also of salt. In salt recovery at Goderich, rooms are mined in multiple lifts or “benches” due to the extensive height of the room. Certain mining units at the Goderich mine are equipped with both a CM and a flexible conveyor train (“FCT”), a dynamic move-up unit and a belt storage unit. On these mining units, the CM cuts the salt directly from the face and discharges it into a hopper on the end of the FCT. From the FCT, the rock salt is offloaded to the main underground belt conveyance system where it is then transported to the underground crushers and the mill. Other mining units are also equipped with a CM, but are supported with rubber-tired haulage equipment to transfer salt. Salt mined from these CMs is transferred from the face by rubber-tired haulage to a centralized dump point with a crusher and then follows the same process as the other units once the salt is put onto the underground conveyance system. In room and pillar mining, the pillars are standing structures which remain after rooms of salt have been extracted as described. These pillars function as the primary ground control and support and are required to maintain the continued safe operation of the mine. Once mined, salt is transported by conveyer to underground facilities where it is processed and sized before being hoisted to the surface. It then may be treated with YPS, depending on the end use of the salt, before being transported to final market. Details of the processing are reviewed in later sections, but a flowsheet of the overall process is included here for clarification. The mining activities at Goderich are supported by three shafts, clustered on the eastern portion of the lease in older workings. Underground Development As reviewed in the mine method section, Goderich Mine progresses development of main entries in the multiple lift of two, achieving 26 feet of mining height overlying and in advance of bench mining. The subsequent benches achieve the remainder of the 60-foot room height for room production. Development and bench mining progress at an approximate 40:60 ratio in terms of area of advance in the mine plan and are part of the production process. In addition, as needed, underground rooms for facilities for support functions have been and will be developed in existing mined excavations and specific locations. This includes development of shaft areas on each level for hoist equipment, design, planning and development of ramp structures from one level to the subsequent, lower level as required, installation of underground work facilities such as maintenance shops and storage rooms. As mining progresses, development also encompasses the design, placement, repair and maintenance of support infrastructure such as crushers, screens and other plant in support of mining. Backfilling Waste salt that is produced during the mining process and resulting from the transport of hoisted tons constitutes the extent of backfilling. Waste salt is estimated at approximate 2.5% of total recovered salt tons. Waste material is collected via loaders and other supporting underground equipment and taken from the face, load out points, conveyor and crusher locations and any other impacted areas of collection as part of housekeeping and maintenance and is disposed of in previously mined workings as identified by operations management and engineering. Access to the underground for mine workers, materials, ventilation as well as hoisting of salt is completed through three shafts. The #1 Shaft was constructed in late 1959 and it is a 16’ diameter concrete and steel lined shaft measuring 1,800’ to 1,900’ deep. This shaft originally provided intake air but has been converted to exhaust air as part of the relining project which was completed in 2019. With the completion of the relining project of the #1 Shaft is also used as a secondary production shaft and a secondary means of personnel travel on an as needed basis. The #2 Shaft, which was built in 1962, is a 16’ diameter concrete and steel lined shaft measuring 1,800’ to 1,900’ deep. It is equipped with a Blair winch and used for heavy material movement. Currently, this shaft provides intake air. The #2 Shaft was relined in conjunction with the #1 Shaft and is used for fresh air intake to the mine. The #3 Shaft, also concrete lined, is as deep as the # 1 and #2 Shafts but was constructed in 1982 and it is 22’ diameter. This shaft is equipped with a double drum hoist system capable of hoisting salt from underground in two 30 t skips using the #6 Hoist. The #3 Hoist also operates in #3 Shaft, and is used for workers and material movement. This shaft also provides exhaust air. Two, 1.5 MW natural gas fired emergency generators are provided to run the #3 Hoist and underground de-watering pumps in the event of a long-term power outage.

Mill Process
All salt, once extracted onto the FCT; goes through a series of conveyors, chutes and bins before arriving at the mill. The milling process is primarily designed to crush and screen the salt to make highway product (<9/16”) and chemical product through a series of primary, secondary and tertiary crushers, optical sorters, and fines compaction.

The mill is designed to run at a capacity of 2,000 tph to produce up to 7.0M tons per year. All salt, as previously mentioned, passes through a series of conveyors belts, chutes and bins to the primary crusher, which is a roll crusher. The roll crusher is set to size all material >3.5” and its capacity 600 tph with peaks of 1,000tph, powered by two 100-hp motors.

The crushed salt is then transported via 48” conveyor belt to A-Screens, max capacity of 2000 tph, which sizes the product towards the “Aside” if <9/16” or “B-side” if >9/16”.

The “A-Side” of the mill, where approximately 70% of the mate ........