Buffalo Potash completes second vertical well, starts horizontal drilling at Disley

Highlights

Successfully completed drilling the 2-14 vertical well and cored 108m through the potash beds with 100% recovery;

Cased the 2-14 vertical well and is ready to serve as a disposal well for surplus brine;

Phase 1 (source and disposal wells) of five-phase IPM development plan is now complete ahead of schedule and under budget;

The 15-10 core has been sampled and submitted to the Saskatchewan Research Council to complete ICP assay for potash grade; and

First horizontal well was spudded August 13, 2026, commencing Phase 2 (Horizontal Line-Drive drilling).

Saskatoon, Saskatchewan--(Newsfile Corp. - August 18, 2026) - Buffalo Potash Corporation (TSXV: BUFF) (OTCQB: BLPTF) (FSE: VU5) (the " Company " or " Buffalo ") is pleased to announce the completion of the second vertical well (the " 2-14 Well " or the " Disposal Well ") and the spudding of the first horizontal well (the " 5D15-10 Well ") at the Initial Production Module (" IPM ") located at the Company's flagship Disley property in Saskatchewan (the " Disley Project ").

Mr. Quinton Hardage, P.Eng., PMP, President and Chief Operating Officer of the Company, commented: " Spudding our first horizontal well is a milestone this company has been working towards for years. Horizontal Line-Drive selective solution mining was developed to produce potash more efficiently and we are now drilling our first horizontal well at Disley. Completing both vertical wells ahead of schedule and under budget speaks to the quality of our team and our contractors, while giving us the data foundation we need as we move into the creation of the first rectangular mining plane. We are very excited about this next phase and are focused on executing it with the same rigour we have to date."

Completion of the Disposal Well (2-14) and Vertical Drilling Phase - Further to the Company's July 29, 2026 news release ( see link ), drilling of the 2-14 Well was completed ahead of schedule and under budget. The well was cored with 100% core recovery over approximately 108m and logged through the potash-bearing members of the Prairie Evaporite Formation. Consistent with the plan disclosed on July 29, 2026, the 2-14 Well was subsequently extended to the base of the Cambrian Deadwood Formation, cased, equipped with a slotted liner, and is now ready to serve as a disposal well for excess brine following surface processing under the IPM design. The 2-14 Well follows the successfully executed 15-10 Well (the " Source Well "), which was cored, logged and cased in July, and will later be converted into a Source Well to produce brackish water from the Mannville Formation. After being pumped to surface, this brackish water is anticipated to be saturated with NaCl to form the solvent used in Buffalo's patented solution mining method, a key input for the IPM. Together, the two wells operationally complete the vertical drilling phase of the IPM - both delivered ahead of schedule and under budget.

Core and log data from both vertical wells is expected to enhance the Company's geological understanding of the IPM site and support a feasibility study for Disley West and Disley East (see Disley Project Development Plan below) . Selected samples from the 15-10 Well have been submitted to the Saskatchewan Research Council for ICP assay for potash and the Company expects to soon do the same with core data from the 2-14 Well.

Commencement of Horizontal Drilling (5D15-10) - Following completion of the 2-14 Well, the drilling rig was safely and efficiently moved approximately 1,600m west, back to the 15-10 Well and IPM site. On Thursday, August 13, 2026, the Company spudded the 5D15-10 Well, which is the first of three planned horizontal wells at the IPM. The 5D15-10 Well will be drilled from the greater 15-10 well pad and IPM site and is planned to be landed within the potash-bearing members of the Prairie Evaporite Formation, from which a horizontal leg of approximately 550m is planned to be drilled. The 5D15-10 Well represents the first well drilled in support of the Company's Horizontal Line-Drive (" HLD ") mining plane and marks the commencement of Phase 2 of the IPM development plan. The Company expects to provide a further update upon completion of the 5D15-10 Well.

Disley Project Development Plan

The IPM is designed to produce 125,000 tonnes per annum (" TPA ") of soluble-grade potash and is the first of three planned solution mining facilities at the Disley Project. The IPM has a lower initial CAPEX requirement compared to the full Disley Project build-out and is targeted to reach first production in Q1 2027. At full build-out comprising the IPM and two 500,000 TPA mines (" Disley East " and " Disley West "), the Disley Project would be expected to produce up to 1,125,000 TPA of potash, as contemplated in Buffalo's preliminary economic assessment titled "NI 43-101 Preliminary Economic Assessment Technical Report on the Disley Potash Project, Saskatchewan, Canada" dated May 21, 2026, and effective April 15, 2026 (the " PEA "), a copy of which is available on the Company's SEDAR+ profile at www.sedarplus.ca . On a standalone basis, the PEA attributes a payback period of approximately 12 months from the start of IPM production. (2) However, there is no guarantee that the Company will be able to achieve production.

The Company's production decision for the IPM is not based on a feasibility study of mineral reserves demonstrating economic and technical viability, and such production decisions are historically associated with a higher risk of economic and technical failure (see "Note 3 - Production Decision Cautionary Statement").

The IPM is intended to establish initial cash-flowing production at a lower upfront capital cost, while building the operational and technical foundation for full-scale development. Development of the IPM is anticipated to be broken down into five phases:

Source and disposal wells (complete) ;

Horizontal Line-Drive (" HLD ") drilling (ongoing) ;

Brine circulation;

Site development; and

Surface processing.

Disley Project - General Overview

The Disley Project is located approximately 50 kilometers northwest of Regina and covers 10,610 hectares (Crown and Freehold mineral rights). The property is situated immediately to the east of the K+S Bethune potash solution mine and north of the Mosaic Belle Plaine potash solution mine - both of which are among the largest producing potash solution mines in the world. In the opinion of management, the Disley Project is in one of the most favorable areas of Saskatchewan for potash solution mining (see Figure 1) as evidenced by the success of these neighboring operations. (1)

On May 22, 2026, Buffalo released the results of its maiden NI 43-101 Mineral Resource Estimate and PEA for the Disley Project, prepared by Micon International Co Limited. The PEA outlined a phased, modular development plan contemplating full-scale production of up to 1,125,000 TPA of potash across three solution mining facilities, with an estimated after-tax net present value (NPV) of US$1.1B at a discount rate of 8% and estimated internal rate of return (IRR) of 30%. (2) Readers are encouraged to refer to Buffalo's April 27, 2026 and May 22, 2026 news releases and the NI 43-101 technical report filed on SEDAR+ for complete details of the PEA and Mineral Resource Estimate.

Figure 1: The Disley Property Situated Amongst Major Potash Solution Mines (1)

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/12107/310205_fd29885e546e6819_001full.jpg

Stock Option Grant

Buffalo additionally announces the grant of an aggregate of 2,750,000 incentive stock options (" Options ") to certain eligible participants, including certain directors and officers of the Company, under the Company's "fixed 20%" omnibus equity incentive plan (the " Plan "). The grants are intended to align the interests of incoming management, board, and consultants with the long-term success and strategic objectives of the Company.

The grant includes 2,500,000 Options which vest in four 25% equal instalments over a period of twenty-four (24) months from the date of grant, with the first instalment vesting on the date that is six months from the date of issuance thereof, and three additional instalments vesting twelve, eighteen, and twenty-four month anniversaries thereafter. Also included are 250,000 Options which vest in four 25% instalments over a period of twelve (12) months from the date of grant, with the first instalment vesting on the date that is three months from the date of issuance thereof, and three additional instalments vesting six, nine, and twelve month anniversaries thereafter.

Upon vesting, each Option shall be exercisable to acquire one common share in the capital of the Company (each, a " Common Share ") for a period of five years from the date of issuance thereof at an exercise price of $0.80. The TSX Venture Exchange imposes a four month resale restriction on Options issued by the Company to employees, executive officers, directors and consultants of the Company. Any common shares of the Company underlying Options exercised within four months of the grant date of such Options will be subject to such restrictions accordingly.

The Company relied on section 5.5(b) of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (" MI 61-101 ") as the exemption from the formal valuation requirements of MI 61-101 in respect of the grant of Options to certain "related parties" (as such term is defined under MI 61-101) of the Company, as the Common Shares are not listed on a specified market under MI 61-101. The Company relied on section 5.7(a) of MI 61-101 as the exemption from the minority approval requirements of MI 61-101 in respect of the grant of Options to certain "related parties" of the Company as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, such issuances exceeded 25% of the Company's market capitalization.

Pursuant to the Plan, the aggregate number of Common Shares issuable under the Plan in respect of all awards granted by the Company may not exceed 16,211,956 Common Shares. After the aforementioned grants, the aggregate number of Common Shares that remains issuable under the Plan is 1,238,760.

A copy of the Plan is available in the management information circular dated February 23, 2026, under the Company's SEDAR+ profile at www.sedarplus.ca .

About Buffalo Potash

Buffalo Potash is an emerging Saskatchewan-based potash developer pursuing a modular approach to selective solution mining through its patented Horizontal Line-Drive (HLD) technology. Buffalo is advancing the Disley Project - located adjacent to two of the most prominent currently producing potash solution mines in the world - with the objective of establishing capital-efficient, lower-impact potash production in one of the world's leading potash jurisdictions.

Qualified Person

The technical information in this news release has been reviewed and approved by Douglas F. Hambley, PhD, PE, P.Eng., PG, an independent consultant to the Company, who is a Qualified Person within the meaning of National Instrument 43-101 - Standards of Disclosure for Mineral Projects . This news release does not contain new technical disclosure beyond information previously disclosed in the NI 43-101 technical report for the Disley Project filed under the Company's profile on SEDAR+ at www.sedarplus.ca . Readers are referred to that technical report, prepared by Micon International Co Limited, for complete details of the Mineral Resource Estimate and Preliminary Economic Assessment, including all data verification, methodology, assumptions, and qualifications.

All related and pertinent information has also been reviewed for this news release by Jared Galenzoski, P.Geo, FIMMM as an independent consultant to the Company who is a Qualified Person within the meaning of National Instrument 43-101 - Standards of Disclosure for Mineral Projects . Mr. Galenzoski is an expert in several potash-related fields including the drilling of potash horizontal wells and solution mining operations.

Contact

Steve Halabura | Chief Executive Officer & Director Email: steve@buffalopotash.ca | Phone: 1-306-220-7715

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Notes

(1) The K+S Bethune potash solution mine and the Mosaic Belle Plaine potash solution mine (together, the " Adjacent Properties ") may each be considered an "adjacent property" (within the meaning of NI 43-101) to the Company's Disley Project. The Company has no interest in either of the Adjacent Properties. The Company believes this context is useful in illustrating the proven endowment of the district, while noting that mineralization on adjacent or nearby properties is not indicative of mineralization on the Company's Disley Project. There is no guarantee that the Disley Project will yield comparable results to either of these mines.

(2) The PEA was prepared by Micon International Co Limited in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects and is preliminary in nature. The PEA includes inferred mineral resources, which are considered too speculative geologically to have the modifying factors and economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no certainty that the results of the PEA will be realized. Readers are encouraged to read the technical report filed under the Company's profile on SEDAR+ at www.sedarplus.ca in its entirety, including all qualifications, assumptions, and exclusions that relate to the PEA.

(3) Production Decision Cautionary Statement : The Company's decision to proceed with development of the IPM is not based on a feasibility study of mineral reserves demonstrating economic and technical viability. No mineral reserves have been established at the Disley Project, and the PEA is preliminary in nature (see Note 2). Historically, mineral projects advanced to production without first establishing mineral reserves supported by a feasibility study have a higher risk of economic and technical failure. Specific risks associated with the Company's production decision include, but are not limited to: 1) grade, continuity, or thickness of mineralization that differs from the Mineral Resource Estimate; 2) performance of the Company's Horizontal Line-Drive mining method, which has not been operated at commercial scale, that is not as anticipated; 3) recoveries, production rates, or capital and operating costs that differ materially from the PEA; and 4) production during the IPM that does not become sustainable or profitable, which would materially and adversely affect the Company's ability to generate revenue and cash flow.

Forward-Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable Canadian securities legislation. Forward-looking information is generally identifiable by the use of words such as "believes," "may," "plans," "will," "anticipates," "intends," "could," "estimates," "expects," "forecasts," "projects," or similar expressions, and the negative of such expressions.

Forward-looking information in this news release includes, but is not limited to, statements regarding: the timing, sequencing, and completion of the IPM development plan, including the drilling of the source, disposal, and horizontal wells, the development of the mining plane, site development, and the installation and commissioning of processing equipment; the anticipated role of the Source Well and Disposal Well in IPM construction and operations; the anticipated coring and open hole logging of the Source Well and Disposal Well and the expected use and benefits of the data obtained therefrom; the anticipated conversion of the Source Well to produce brackish water from the Mannville Formation and the expectation that such water will be saturated with sodium chloride and used as the solvent in the Company's solution mining methodology; the anticipated timing and completion of lease construction; the anticipated timing of first production from the IPM; the anticipated timing and phasing of construction and commercial production for the IPM, Disley East, and Disley West; the preparation, timing, and expected benefits of a concurrent feasibility study for the full build-out of the Disley Project; the results, assumptions, and projections contained in or derived from the Mineral Resource Estimate and PEA for the Disley Project, including projected production rates and timing of production; expectations regarding the Disley Project's potential for solution mining; the Company's broader development plans and strategy for the Disley Project; and the fact that the Company's production decision for the IPM is not based on a feasibility study of mineral reserves demonstrating economic and technical viability, and the associated increased risk of economic and technical failure.

Forward-looking information is based on management's reasonable assumptions, estimates, analysis, and opinions made in light of its experience, perception of historical trends, current conditions, and expected future developments, as well as other factors that management believes are relevant and reasonable in the circumstances as of the date such statements are made. These assumptions include, but are not limited to, assumptions regarding geological continuity, potash grade and thickness, the applicability of historical data, the performance of solution mining methods, costs of production, the availability of services and equipment, the receipt of required permits and approvals, and the availability of financing on acceptable terms.

Forward-looking information is subject to known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements of the Company to differ materially from those expressed or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to: the inherent uncertainty of PEA-level studies and the possibility that actual capital costs, operating costs, and production rates differ materially from estimates; risks related to exploration and development activities; risks related to the timing and completion of lease construction, rig mobilization, and drilling operations, including the availability and performance of drilling contractors, equipment, and services; uncertainty in geological interpretation; risks related to the development, commissioning, and operation of novel mining technology; risks inherent to solution mining operations and new or emerging technologies; regulatory approvals and permitting timelines; commodity price volatility; availability of capital; and general economic, market, and business conditions.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events may differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information contained herein is made as of the date of this news release, and the Company disclaims any obligation to update or revise such information, except as required by applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/310205

TMX Newsfile

August 18, 2026 - 4:00 AM PDT

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