Sage Potash Confirms Multiple Water Bearing Zones At Sage Plain Project - Advancing Development Strategy

(MENAFN- Newsfile Corp) Sage Potash Confirms Multiple Water Bearing Zones at Sage Plain Project - Advancing Development Strategy

October 13, 2026 9:30 AM EDT | Source: Sage Potash Corp.

Vancouver, British Columbia and Salt Lake City, Utah--(Newsfile Corp. - October 13, 2026) - Sage Potash Corp. (TSXV: SAGE) (OTCQB: SGPTF) ("Sage Potash" or the "Company") is pleased to report positive results from hydrogeological testing completed at the Peterson 1 well at its flagship Sage Plain Potash Project in southeast Utah. Testing confirmed two saline, non-potable water bearing zones within the project area, with preliminary results supporting their potential use as future process water for solution mining operations.

The results represent an important step in advancing Sage's water strategy, with the identified zones occurring at depths consistent with the Company's existing water right and providing potential sources of process water that would not compete with potable municipal or agricultural supplies.

HYDROGEOLOGICAL PROGRAM HIGHLIGHTS

Two water-bearing zones confirmed at Peterson 1, providing potential sources of process water within the Sage Plain Project area.

Non-potable saline water has been confirmed, with water chemistry considered adequate for future processing and solution mining applications.

Results align with Sage's existing water right, which authorizes up to 185,000 cubic meters of brackish groundwater annually for processing and solution mining.

An additional high permeability zone was identified in the Honaker Trail Formation, providing another target for future groundwater evaluation.

Results will now be incorporated into the Company's ongoing engineering studies alongside the updated NI 43-101 resource estimate.

As previously announced on June 24, 2026, the Peterson 1 drill program included a hydrogeological assessment designed to conduct targeted Drill Stem Tests ("DSTs") in formations exhibiting water flow. The DSTs are field screening tools used to evaluate yield rates and water quality, primarily targeting saline, non-potable aquifers, for future solution mining operations.

"Peterson 1 continues to deliver important results for the Sage Plain Project. In addition to the strong potash grades and thicknesses we recently reported, we have now identified multiple potential sources of non-potable process water within the project area," said Patricio Varas, CEO of Sage Potash. "Water is a critical component of solution mining, and these results provide another important piece of the development picture. Importantly, the water identified is saline and non-petpotable, and the tested horizons align with our existing water right. We view this as another meaningful step in de-risking Sage Plain as we advance the project into its next phase of engineering."

DRILL STEM TEST PROGRAM

Northstar Drillstem Testers Inc. conducted three inflate-straddle DSTs, each over a 38-meter (125-foot) interval of the 83⁄4 inch hole, between July 17 and July 19, 2026. The tests were designed to measure formation pressure, estimate permeability and inflow rates, and collect downhole fluid samples for water quality analyses.

Table 1. Summary of Peterson 1 Drill Stem Tests

Test	Formation	Interval, m (feet)	Shut-in Pressures (psig)	Recovery	Yield (m 3 /hr)
DST 1	Cutler	1,033 - 1,071 (3,390 - 3,515)	1,068 / 1,061	663 m (2,175 ft)	17.0*
DST 2	Lower Cutler/Rico	1,250 - 1,288 (4,100 - 4,225)	1,345	Negligible	-
DST 3	Lower Cutler/Rico	1,295 - 1,334 (4,250 - 4,375)	1,434 / 1,419	610 m (2,000 ft)	4.5*
*1 m3 = 264 US gallons

DST 1 - Cutler Formation (1,033 - 1,071 m; 3,390 - 3,515 feet)

DST 1 was completed with three flow periods and two shut-in periods. The test recovered 663 m (2,175 feet) of formation water, approximately 2.8 cubic meters (17.5 barrels), and recorded consistent shut-in pressures of 1,068 pound per square inch gauge ("psig")and 1,061 psig, indicating a pressurized, water-bearing horizon. Downhole temperature was 41°C (105°F).

DST 2 - Lower Cutler/Rico Formation (1,250 - 1,288 m; 4,100 - 4,225 feet)

DST 2 recorded a shut-in pressure of 1,345 psig but produced negligible inflow during a single 16-minute flow period, indicating a low-permeability interval. The fluid recovered consisted predominantly of drilling fluid. The sample was submitted for laboratory analysis, which confirmed it was not representative of formation water, and it has been excluded from the water chemistry summary.

DST 3 - Lower Cutler/Rico Formation (1,295 - 1,334 m; 4,250 - 4,375 feet)

DST 3 was completed with three flow periods and two shut-in periods. The test recovered 610 m (2,000 feet), approximately 2.5 cubic meters (16 barrels), of formation water and recorded shut-in pressures of 1,434 psig and 1,419 psig, confirming a second, deeper water-bearing horizon.

DSTs are short-duration tests that primarily characterize the formation immediately surrounding the wellbore. Yields estimated from DST data are preliminary and may not be representative of sustained, long-term production rates. Additional testing will be completed to further characterize the anticipated available water volumes.

PRELIMINARY YIELD ESTIMATES

The Company engaged RESPEC LLC ("RESPEC"), which completed the Company's September 8, 2025 NI 43-101 resource estimate, to review the DST data. RESPEC's preliminary estimates assume a pumping well with the same length and diameter as each tested interval.

Erik Hemstad, PE, MBA, of RESPEC, commented: "From DST 1, preliminary estimates indicate a water volume yield of 7 m3/h (75 gpm), and from DST 3,- 4.5 m3/h (20 gpm). Moreover, DSTs are excellent for measuring formation pressures. While the results can also be used to estimate hydraulic conductivity, these tests are inherently short in duration and therefore primarily characterize the formation immediately surrounding the borehole."

WATER CHEMISTRY AND ALIGNMENT WITH WATER PERMIT

Fluid samples from all three DSTs were submitted to ACZ Laboratories, Inc. in Steamboat Springs, Colorado, a NELAC-accredited laboratory, for comprehensive inorganic analysis. Results for DST 1 and DST 3 are summarized in Table 2 (Appendix).

Both samples are sodium-chloride type waters. The DST 1 (Cutler) sample has a calculated dissolved solids content of 32,400 mg/L. The DST 3 (Lower Cutler/Rico) sample has a calculated dissolved solids content of 79,600 mg/L. Both waters are non-potable and unsuitable for agricultural or irrigation or domestic use.

Solution mining recovers potash by dissolving it with injected water or brine. Sodium-chloride concentrations in recovered water samples are well below salt saturation and therefore retain substantial dissolving capacity. The Company therefore considers the quality of these waters adequate for processing and solution mining. Specific process design requirements will be addressed in future engineering studies.

Importantly, these findings validate the Company's existing water permitting framework. In July 2023, the Utah Division of Water Rights approved the Company's 20-year Fixed-Time Application (Water Right 09-2684, Application F83735) authorizing the withdrawal of up to 150 acre-feet annually, of brackish water to support processing and solution mining cavern operations. The permit specifically contemplated sourcing brackish water from an underground aquifer at an approximate depth of 1,200 meters (3,950 feet)-a target depth directly validated by the productive horizons confirmed in DST 1 (1,033 - 1,071 m; 3,390 - 3,515 feet) and DST 3 (1,295 - 1,334 m; 4,250 - 4,375 feet).

HONAKER TRAIL FORMATION

While drilling the Peterson 1 hole, the well encountered an anticipated lost-circulation zone in the Honaker Trail Formation. Approximately 12.7 cubic meters (80 barrels) of drilling fluid were lost between 1,408 and 1,445 m (4,620 and 4,740 feet) (1,408 - 1,445 m) despite lost circulation material already present in the mud system. Continued fluid losses of approximately 1.6 cubic meters (10 barrels) per hour persisted to 1,509 m (4,950 feet). In order to protect wellbore integrity, the Company elected not to run a DST or sample this interval.

The Company believes the rapid rate and volume of fluid loss indicates a highly permeable, high-transmissivity horizon capable of supplying significant water volumes, representing a compelling target for future hydrogeological evaluation. Regional studies of the Paradox Basin report that formation-water salinity generally increases with depth toward the Paradox evaporites (Hanshaw and Hill, 1969). Consistent with this regional trend and the increasing salinity observed from DST 1 to DST 3 at Peterson 1, the Company expects Honaker Trail formation fluids to be similarly saline and non-potable.

NEXT STEPS

The hydrogeological results will be incorporated into the Company's ongoing and future engineering studies.

Qualified Person

The scientific and technical information contained in this news release has been reviewed and approved by Greg Vogelsang, P.Geo., P.Eng., the Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr. Vogelsang is Vice President, Project Development for the Company.

About Sage Potash Corp.

Sage Potash Corp. (TSXV: SAGE) (OTCQB: SGPTF) is dedicated to developing its flagship Sage Plain Potash Project, located in the Paradox Basin in Utah. With a large, high-grade resource base, the Company is advancing toward its goal of establishing a secure and sustainable domestic potash production platform in the United States. Sage Potash is committed to food security, environmental stewardship, and creating value for shareholders and stakeholders.

On behalf of the Board of Directors,

J. Patricio Varas, CEO and Director

1 (236) 521-1521

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Marcus van der Made, Investor Relations

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Cautionary Note Regarding Forward-Looking Statements

This news release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation. The forward-looking statements herein are made as of the date of this news release only, and the Company does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budgets", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information in this news release includes, but is not limited to, statements with respect to: estimated potential water yields from the Cutler and Lower Cutler/Rico formations; the adequacy of the formation waters for processing and solution mining; the potential of the Honaker Trail Formation to supply significant volumes of water and the expected salinity of its formation waters; future evaluation of the Honaker Trail Formation; and the incorporation of the hydrogeological results into future engineering studies and the updated resource estimate. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of the Company to control or predict, that may cause the Company's actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including, but not limited to, the risk factors set out under the heading "Risk Factors and Uncertainties" in the Company's Management's Discussion & Analysis available for review under the Company's profile at . Such forward-looking information represents management's best judgement based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

APPENDIX

Table 2. Peterson 1 Formation Water Chemistry (ACZ Laboratories, Inc.; dissolved; mg/L unless noted)

Parameter	DST 1 - Cutler 1,033 - 1,071 m (3,390 - 3,515 ft)1	DST 3 - Lower Cutler/Rico 1,295 - 1,334 m (4,250 - 4,375 ft)
Sodium (Na)	9,520	22,200
Calcium (Ca)	2,090	6,570
Magnesium (Mg)	492	1,020
Potassium (K)	84.5	266
Strontium (Sr)	60.9	523
Barium (Ba)	0.209	17.3
Iron (Fe)	12.3	25.0
Manganese (Mn)	0.467	7.49
Lithium (Li)	2.96	5.53
Boron (B)	2.44	1.64
Silica (SiO2)	16	20
Chloride (Cl)	18,500	48,500
Sulfate (SO4)	1,440	198
Total Alkalinity (as CaCO3)	154	171
Sulfide (as S)	<0.75	<1.5
Hardness (as CaCO3)	7,240	20,600
Calculated Dissolved Solids2	~32,400	~79,600
Specific Gravity	1.03	1.07
pH (lab, units)	7.1	6.2
Conductivity @ 25°C (μmhos/cm)	43,700	88,400
Cation-Anion Balance (%)	1.5	1.4

1 Laboratory sample identified as 1,033 m - 1,070 m (3,390' - 3,510'); DST 1 test interval was 3,390 - 3,515 feet.

2 Sum of measured major and minor constituents; total dissolved solids was not directly measured by the laboratory.

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Source: Sage Potash Corp.

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