Verde AgriTech Revises 2020 Guidance Upwards and Announces $1.09M Net Profit in Third Quarter

(All figures are in Canadian dollars, unless otherwise expressed. Exchange rate in Q3 2020: 1.00 CAD = 3.74 BRL)

Belo Horizonte, Brazil. Verde AgriTech Plc (TSX: “NPK”) (OTCQB: “AMHPF”) (“Verde” or the “Company”) is pleased to announce its financial results for the third quarter, ended September 30, 2020 (“Q3 2020”).

Q3 2020 Financial Highlights

• Sales increased by 68% with a total of 105,769 tonnes sold, compared to 62,855 tonnes in the third quarter of 2019 (“Q3 2019”).
• The Company achieved a net profit of $1,090,046, compared to a net profit of $1,000 in Q3 2019.
• Gross margin increased by 16% to a gross margin of 67% in Q3 2020, compared to 51% in Q3 2019.
• The Company recognised revenue of $3,956,341, an increase of 30% compared to $3,054,874 in Q3 2019 despite a 27% decline in the price of potash delivered to Brazil. The actual increase in revenue in Brazilian Real (“R$”) was 66%, R$14,815,411 revenue in Q3 2020, compared to R$8,918,122 in Q3 2019.
• Cash held by the Company increased by 220% with a total of $2,377,000, compared to $742,000 in Q3 2019.

Subsequent Events

• In November 2020, the Company secured a bank loan of R$2,000,000 ($473,000) from Santander Bank for CAPEX investment and working capital. The interest rate for the loan is 11.11% per annum.
• In November 2020, a 50,000 tonnes per year (“tpy”) Mining Permit for Mine Pit 2 was granted by the National Mining Agency.

With this latest Mining Permit, the Company is fully permitted to mine 482,800 tpy. (i.e. Verde is authorized to produce such an amount because it holds both mining Concessions/Permits and Environmental Licenses). The Company has submitted joint mining and environmental applications for an additional 5,000,000 tpy.

The amount that is fully permitted supports the target for 2021 below:

Revised Target for  2020 and Announcement of 2021 Target

“As announced in September 2019, our revenue target for 2020 was set at R$32 million, representing 76% growth YoY. We are pleased to announce that Verde has achieved 81% of that target by Q3 and that makes it possible for the Company to increase its guidance by approximately 10%. Our new target for 2020 revenue is set at R$35.2 million, which will represent a 97% growth YoY, regardless of the 27% drop in potash price delivered to Brazil and the operating complexities triggered by one of the worst pandemics in living memory. The Company’s target for 2021 is to achieve R$50 million revenue”, said Cristiano Veloso, Verde’s founder, President and CEO.

Q3 2020 Financial Results

In Q3 2020 the Company sold 105,769 tonnes of its multinutrient potassium fertilizer, marketed and sold in Brazil under the K Forte® brand and internationally as Super Greensand® (the “Product”), an increase of 68% in comparison to 62,855 tonnes for Q3 2019. The Company has sold 187,122 tonnes of the Product up to Q3 2020, which represents 84% of the 222,000 tonnes sales target set for 2020.

The revenue for Q3 2020 increased by 30% with a total of $3,956,341, compared to $3,054,874 in Q3 2019. Verde’s average gross margin since 2018, when production started, is 52%[1]. The gross margin for Q3 2020 was 67% and the operating profit before non-cash events was $1,635,179. The Company generated a net profit of $1,090,045 for Q3 2020.

Technology Launch

As stated in the press release published by the Company on August 17, 2020, Verde has been working on the development of a new generation of technologies. The first technology will be introduced on a conference call hosted by the Company on Tuesday, December 15, 2020 at 11:30 am Eastern Time (4:30 pm Greenwich Mean Time).

“Verde is agritech more than in name only. This upcoming event will introduce a technology that will again combine enhanced agricultural productivity with strong environmental credentials. The Company will use its growing market presence and reputation to synergistically advance towards another billion-dollar segment of the market”, affirmed Mr. Veloso.

Subscribe at the following link and receive the conference details by email.

Selected Annual Financial Information

The table below summarizes Q3 2020 financial results compared to Q3 2019 and provides information about 2020 and 2019 year-to-date (“YTD”).

* – Included in S&GA expenses in Financial Statements.

Revenue

Revenue from sales for Q3 2020 was $3,956,341 from the sale of 105,769 tonnes of the Product ($37.41 per tonne sold). Average revenue per tonne was lower than Q3 2019 ($48.60 per tonne sold). The Product price is based on the current US Dollar Potassium Chloride price. Therefore, the reduction of the average revenue per tonne was mainly due to the decline of the Potassium Chloride CFR (Brazil) price, from $324 per tonne in Q3 2019 to $236 per tonne in Q3 2020 (Acerto Limited Report). In addition, the Company has been selling further afield from its plant in Brazil, which correspondingly reduces the realized FOB price (please refer to the Pre-Feasibility Study, chapter 19.5).

Production costs

Production costs include all costs directly from mining, processing, transportation from the mine to the factory and supply chain salaries, which are paid in Brazilian Real. Costs per tonne for the quarter were $12.44 compared to $23.80 for the same period in 2019. This reduction of 48% was due to cost efficiency of 20% and also due to the devaluation of the Brazilian Real by 28% versus the Canadian Dollar.

S&GA – Selling & General Administrative Expenses

* – Please refer to Q3 2020 Management’s Discussion and Analysis for detailed information about S&GA Expenses.

Project Update [2]

• In August 2020, a 233,000 tpy Operating Environmental License for Mine Pit 1 was granted to the Company.
• In August 2020, a 2,500,000 tpy Preliminary, Installation and Operating Environmental License Application for Mine Pit 3 was filed by the Company.
• The Company is advancing engineering and project studies required for the construction of Plant 2. The plant capacity is 1,200,000 tpy. Construction is expected to take place in the second half of 2021.

“We are excited to see our environmental and mining permits being issued in a timely manner. This certainly helps pave the way toward achieving our target of 25 Mt production, which represents a NPV per share of $53.81, based on the previously SEDAR filed Pre-Feasibility Study [3]”, commented Mr. Veloso.

__________________________________________________________________________________________

[2] See the Glossary on page 3 of Q3 2020 Management’s Discussion and Analysis for Technical Terms.

[3] Based on $2.607 billion NPV after tax divided by 48,444,803 shares outstanding as of September 30, 2020. Estimated Net Present Value after tax of US$1.99 billion, with 8% discount rate and Internal Rate of Return of 287% (see NI 43-101 Pre-Feasibility Technical Report Cerrado Verde Project, MG, Brazil, page 207). Currency exchange: 1 USD = 1.31 CAD.

Investors Newsletter

“Verde has already had a positive impact for hundreds of Brazilian farmers who understood, tested and proved that production yields can be boosted with K Forte while still reversing the damage caused by years of compounded use of KCl. In order to give our investors a better picture of our business scenario and its constant improvements, as of January, our monthly update newsletter will also contain information about our growing number of clients and their cumulative planted area”, said Mr. Veloso.

The last edition of the newsletter can be accessed at

Subscription link: http://cloud.marketing.verde.ag/InvestorsSubscription

Q3 Results Conference Call

The Company will host a conference call on Tuesday, November 24, 2020 at 11:30 am Eastern Time (4:30 pm Greenwich Mean Time), to discuss Q3 2020 results and provide an update. Subscribe at the following link and receive the conference details by email.

The Company’s third quarter financial statements and related notes for the period ended September 30, 2020 are available to the public on SEDAR at www.sedar.com and the Company’s website at www.investor.verde.ag/.

About Verde AgriTech

Verde AgriTech promotes sustainable and profitable agriculture through the development of its Cerrado Verde Project. Cerrado Verde, located in the heart of Brazil’s largest agricultural market, is the source of a potassium-rich deposit from which the Company intends to produce solutions for crop nutrition, crop protection, soil improvement and increased sustainability.

For additional information please contact:

Cristiano Veloso, President & Chief Executive Officer

Tel: +55 (31) 3245 0205; Email: cv@verde.ag

www.investor.verde.ag | www.supergreensand.com | www.verde.ag

Cautionary Language and Forward Looking Statements

All Mineral Reserve and Mineral Resources estimates reported by the Company were estimated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards (May 10, 2014). These standards differ significantly from the requirements of the U.S. Securities and Exchange Commission. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.

This document contains “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and these statements, referred to herein as “forward-looking statements” are made as of the date of this document. Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future events and include, but are not limited to, statements with respect to:

• the estimated amount and grade of Mineral Resources and Mineral Reserves;
• the PFS representing a viable development option for the Project;
• estimates of the capital costs of constructing mine facilities and bringing a mine into production, of sustaining capital and the duration of financing payback periods;
• the estimated amount of future production, both produced and sold; and,
• estimates of operating costs and total costs, net cash flow, net present value and economic returns from an operating mine.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “envisages”, “assumes”, “intends”, “strategy”, “goals”, “objectives” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.

All forward-looking statements are based on Verde’s or its consultants’ current beliefs as well as various assumptions made by them and information currently available to them. The most significant assumptions are set forth above, but generally these assumptions include:

• the presence of and continuity of resources and reserves at the Project at estimated grades;
• the geotechnical and metallurgical characteristics of rock conforming to sampled results; including the quantities of water and the quality of the water that must be diverted or treated during mining operations;
• the capacities and durability of various machinery and equipment;
• the availability of personnel, machinery and equipment at estimated prices and within the estimated delivery times;
• currency exchange rates;
• Super Greensand® and K Forte® sales prices, market size and exchange rate assumed;
• appropriate discount rates applied to the cash flows in the economic analysis;
• tax rates and royalty rates applicable to the proposed mining operation;
• the availability of acceptable financing under assumed structure and costs;
• anticipated mining losses and dilution;
• reasonable contingency requirements;
• success in realizing proposed operations;
• receipt of permits and other regulatory approvals on acceptable terms; and
• the fulfilment of environmental assessment commitments and arrangements with local communities.

Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Many forward-looking statements are made assuming the correctness of other forward looking statements, such as statements of net present value and internal rates of return, which are based on most of the other forward-looking statements and assumptions herein. The cost information is also prepared using current values, but the time for incurring the costs will be in the future and it is assumed costs will remain stable over the relevant period.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur as forecast, but specifically include, without limitation: risks relating to variations in the mineral content within the material identified as Mineral Resources and Mineral Reserves from that predicted; variations in rates of recovery and extraction; the geotechnical characteristics of the rock mined or through which infrastructure is built differing from that predicted, the quantity of water that will need to be diverted or treated during mining operations being different from what is expected to be encountered during mining operations or post closure, or the rate of flow of the water being different; developments in world metals markets; risks relating to fluctuations in the Brazilian Real relative to the Canadian dollar; increases in the estimated capital and operating costs or unanticipated costs; difficulties attracting the necessary work force; increases in financing costs or adverse changes to the terms of available financing, if any; tax rates or royalties being greater than assumed; changes in development or mining plans due to changes in logistical, technical or other factors; changes in project parameters as plans continue to be refined; risks relating to receipt of regulatory approvals; delays in stakeholder negotiations; changes in regulations applying to the development, operation, and closure of mining operations from what currently exists; the effects of competition in the markets in which Verde operates; operational and infrastructure risks and the additional risks described in Verde’s Annual Information Form filed with SEDAR in Canada (available at www.sedar.com ) for the year ended December 31, 2019. Verde cautions that the foregoing list of factors that may affect future results is not exhaustive.

When relying on our forward-looking statements to make decisions with respect to Verde, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Verde does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by Verde or on our behalf, except as required by law.

Verde Sales Grow 202% With Gross Margin Over 60% in the Second Quarter of 2020

(All figures are in Canadian dollars, unless otherwise expressed. Exchange rate in Q2 2020: 1.00 CAD = 3.598 BRL)

BELO HORIZONTE, Brazil, Aug. 17, 2020 (GLOBE NEWSWIRE) — Verde AgriTech Plc (TSX: “NPK”) (OTCQB: “AMHPF”) (“Verde” or the “Company”) is pleased to announce its financial results for the second quarter, ended June 30, 2020 (“Q2 2020”).

Q2 2020 Financial Highlights

• The Company recognised revenue of $2,492,586, an increase of 87% compared to $1,329,127 in the second quarter of 2019 (“Q2 2019”).

• Production increased by 139% with a total of 80,490 tonnes mined, compared to 33,671 tonnes in Q2 2019.

• Sales increased by 202% with a total of 71,183 tonnes sold, compared to 23,600 tonnes in Q2 2019.

• The Company generated a net profit of $443,525, compared to a net loss of $222,657 in Q2 2019.

• Gross margin increased by 12%, with a total of 62% in Q2 2020 compared to 50% in Q2 2019.

Subsequent Events

• In July 2020, the Company secured a bank loan of R$ 5.3 million ($1.473 million), for CAPEX investment and working capital.

• In July 2020, the new mill purchased by the Company was delivered. It will replace the first mill bought in 2018, thereby increasing Plant 1 name plate production capacity by 14% to 2,880 tonnes per day, with expected operational capacity of 2,000 tonnes per day.

“Far more important than our net profit is the consistent growth that Verde AgriTech is delivering as it introduces new sustainable technologies to support global food production. We expect this growth to accelerate in the coming years as we launch a new generation of technologies currently under advanced development. Verde AgriTech is looking to revolutionize sustainable production of food”, commented Cristiano Veloso, Verde’s founder, President and CEO.

“The Company continues to show improved year-on-year sales and operational improvement and continued progress toward the stated target of R$32 million revenue for the year, representing 76% growth”, concluded Mr. Veloso.

In Q2 2020 the Company sold 71,183 tonnes of its multinutrient potassium fertilizer, marketed and sold in Brazil under the K Forte® brand and internationally as Super Greensand® (the “Product”), an increase of 202% in comparison to 23,600 tonnes for Q2 2019.

The revenue for Q2 2020 increased by 87% with a total of $2,492,586, compared to $1,329,127 in Q2 2019. The gross margin for Q2 2020 was 62% and the operating profit before non-cash events was $584,500.

The Company generated a net profit of $443,525 for Q2 2020. The profit per share in Q2 2020 was $0.009, against a loss per share of $0.004 in Q2 2019.

Most of the Product sales in Brazil are expected to take place between June and September, due to the climatic seasonality in the agricultural cycle. Thus, the Company’s operations are set for improved production, sales and consequently improved financial results for the third quarter.

Selected Annual Financial Information

The table below summarizes Q2 2020 financial results compared to Q2 2019 and provides information about 2020 and 2019 year-to-date (“YTD”).

* – Included in S&GA expenses in Financial Statements.

Revenue

Revenue from sales for Q2 2020 was $2,491,585, from sale of 71,183 tonnes ($35.00 per tonne sold). Average revenue per tonne was lower than Q2 2019 ($56.32 per tonne). The Product price is based on the current Potassium Chloride price. Therefore, the reduction of the average revenue per tonne was mainly due to the decline of the Potassium Chloride CFR (Brazil) price, from $335 per tonne in Q2 2019 to $230 per tonne in Q2 2020 (Acerto Limited Report). In addition, the Company has been selling further afield from its plant in Brazil, which equally reduces the realized FOB price (please refer to the Pre-Feasibility Study, chapter 19.5).

S&GA – Selling & General Administrative Expenses

* – Please refer to Q2 2020 Management’s Discussion and Analysis for detailed information about S&GA Expenses.

Conference Call Details

The Company will host a conference call on Wednesday, August 26, 2020 at 11:30 am Eastern Time (4:30 pm Greenwich Time), to discuss Q2 2020 results and provide an update. Subscribe at the following link and receive the conference details by email.

The Company’s second quarter financial statements and related notes for the period ended 30 June, 2020 are available to the public on SEDAR at www.sedar.com and the Company’s website at www.investor.verde.ag/.

Investors Newsletter

Verde has a newsletter for investors, with monthly updates about the Company. The last edition can be accessed at .

Subscription link: http://cloud.marketing.verde.ag/InvestorsSubscription

About Verde AgriTech

Verde AgriTech promotes sustainable and profitable agriculture through the development of its Cerrado Verde Project. Cerrado Verde, located in the heart of Brazil’s largest agricultural market, is the source of a potassium-rich deposit from which the Company intends to produce solutions for crop nutrition, crop protection, soil improvement and increased sustainability.

For additional information please contact:

Cristiano Veloso, President & Chief Executive Officer
Tel: +55 (31) 3245 0205; Email: cv@verde.ag

www.investor.verde.ag | www.supergreensand.com | www.verde.ag

Cautionary Language and Forward Looking Statements
All Mineral Reserve and Mineral Resources estimates reported by the Company were estimated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards (May 10, 2014). These standards differ significantly from the requirements of the U.S. Securities and Exchange Commission. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.

This document contains “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and these statements, referred to herein as “forward-looking statements” are made as of the date of this document. Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future events and include, but are not limited to, statements with respect to:

(i) the estimated amount and grade of Mineral Resources and Mineral Reserves;
(ii) the PFS representing a viable development option for the Project;
(iii) estimates of the capital costs of constructing mine facilities and bringing a mine into production, of sustaining capital and the duration of financing payback periods;
(iv) the estimated amount of future production, both produced and sold; and,
(v) estimates of operating costs and total costs, net cash flow, net present value and economic returns from an operating mine.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “envisages”, “assumes”, “intends”, “strategy”, “goals”, “objectives” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.

All forward-looking statements are based on Verde’s or its consultants’ current beliefs as well as various assumptions made by them and information currently available to them. The most significant assumptions are set forth above, but generally these assumptions include:

(i) the presence of and continuity of resources and reserves at the Project at estimated grades;
(ii) the geotechnical and metallurgical characteristics of rock conforming to sampled results; including the quantities of water and the quality of the water that must be diverted or treated during mining operations;
(iii) the capacities and durability of various machinery and equipment;
(iv) the availability of personnel, machinery and equipment at estimated prices and within the estimated delivery times;
(v) currency exchange rates;
(vi) Super Greensand® and K Forte® sales prices, market size and exchange rate assumed;
(vii) appropriate discount rates applied to the cash flows in the economic analysis;
(viii) tax rates and royalty rates applicable to the proposed mining operation;
(ix) the availability of acceptable financing under assumed structure and costs;
(x) anticipated mining losses and dilution;
(xi) reasonable contingency requirements;
(xii) success in realizing proposed operations;
(xiii) receipt of permits and other regulatory approvals on acceptable terms; and
(xiv) the fulfilment of environmental assessment commitments and arrangements with local communities.

Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Many forward-looking statements are made assuming the correctness of other forward looking statements, such as statements of net present value and internal rates of return, which are based on most of the other forward-looking statements and assumptions herein. The cost information is also prepared using current values, but the time for incurring the costs will be in the future and it is assumed costs will remain stable over the relevant period.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates, assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur as forecast, but specifically include, without limitation: risks relating to variations in the mineral content within the material identified as Mineral Resources and Mineral Reserves from that predicted; variations in rates of recovery and extraction; the geotechnical characteristics of the rock mined or through which infrastructure is built differing from that predicted, the quantity of water that will need to be diverted or treated during mining operations being different from what is expected to be encountered during mining operations or post closure, or the rate of flow of the water being different; developments in world metals markets; risks relating to fluctuations in the Brazilian Real relative to the Canadian dollar; increases in the estimated capital and operating costs or unanticipated costs; difficulties attracting the necessary work force; increases in financing costs or adverse changes to the terms of available financing, if any; tax rates or royalties being greater than assumed; changes in development or mining plans due to changes in logistical, technical or other factors; changes in project parameters as plans continue to be refined; risks relating to receipt of regulatory approvals; delays in stakeholder negotiations; changes in regulations applying to the development, operation, and closure of mining operations from what currently exists; the effects of competition in the markets in which Verde operates; operational and infrastructure risks and the additional risks described in Verde’s Annual Information Form filed with SEDAR in Canada (available at www.sedar.com ) for the year ended December 31, 2019. Verde cautions that the foregoing list of factors that may affect future results is not exhaustive.

When relying on our forward-looking statements to make decisions with respect to Verde, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Verde does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by Verde or on our behalf, except as required by law.

Verde Grows 830% in the First Quarter of 2020 and is Positioned to Meet Its 2020 Target

(All figures are in Canadian dollars, unless otherwise expressed. Exchange rate in Q1 2020: 1.00 CAD = 3.31 BRL)

BELO HORIZONTE, Brazil, May 19, 2020 (GLOBE NEWSWIRE) — Verde AgriTech Plc (TSX: “NPK”) (OTCQB: “AMHPF”) (“Verde” or the “Company”) is pleased to announce its financial results for the first quarter ended March 31, 2020 (“Q1 2020”).

Q1 2020 Financial Highlights

• Revenue increased by 230% to $509,532, compared to $154,279 in Q1 2019.

• Production increased by 32% with a total of 6,375 tonnes, compared to 4,825 tonnes in Q1 2019.

• Sales increased by 830% with a total of 10,170 tonnes compared to 1,093 in Q1 2019.

• Net loss reduced by 9% to $792,195, compared to 872,506 in Q1 2019.

“We are encouraged by our continued exponential growth. The first quarter of a calendar year is naturally its weakest for fertilizer demand because of the climate seasonality in the agricultural cycle. Most of our sales are expected to take place between June and September, period which therefore has a greater impact on Q2 and Q3 financial results. Despite the COVID-19 pandemic, we are on track to reach our 2020 growth target of 76%”, said Cristiano Veloso, Verde’s founder, President and CEO.

In Q1 2020 the Company sold 10,170 tonnes of its multinutrient potassium fertilizer, marketed and sold in Brazil under the K Forte® brand and internationally as Super Greensand® (the “Product”), an increase of 830% in comparison to 1,093 tonnes for the first quarter of 2019 (“Q1 2019”). The revenue for Q1 2020 increased by 230% with a total of $509,532, compared to $154,279 in Q1 2019. The gross margin for Q1 2020 was 35% and the operating loss before non-cash events was $663,958.

The sales target for 2020 is set at R$32 million (C$9.6 million) as stated on the press release published by the Company on 14 November, 2019.

Selected Annual Financial Information 

The table below summarizes Q1 2020 financial results compared to Q1 2019:

* – Included under administrative expenses in the financial statements.

Revenue Per Tonne

Revenue from sales for Q1 2020 was $509,532, from sale of 10,170 tonnes ($50,10 per tonne sold). Average revenue per tonne was lower than Q1 2019 ($141,15 per tonne) because most of Q1 2019 sales were exported to international markets, where the product achieves higher sales price compared to the domestic market. In Q1 2020 most sales were to the domestic market. Overall export volume grew from 148 tonnes in Q1 2019 to 331 tonnes in Q1 2020, but proportionally the share of exports on total sales has reduced from 14% to 3% because of substantial increase in domestic sales from 945 tonnes in Q1 2019 to 9,839 in Q1 2020.

Production Cost Per Tonne

Production costs include all costs directly from mining, processing, transportation from the mine to the factory and supply chain salaries. Costs per tonne for the quarter was $32,57 compared to $44,63 for the same period in 2019. This reduction was due to the devaluation of the Brazilian Real by 15% in face of the Canadian Dollar and dilution of the plant’s fixed cost.

Sales & General Administrative Expenses

Sales and marketing expenses

Sales and marketing expenses include sales and marketing salaries, the promotion of the Product such as fees paid sales agents, marketing events, car rentals, travels within Brazil, hotel expenses and Customer Relationship Management (CRM) Software licenses. Expenses increased compared to the same period last year because of an additional 23 full time staff being hired in Brazil to achieve the Company’s 2020 goals.

General administrative expenses

These costs include general office expenses, rent, banks fees, insurance, foreign exchange variances and remuneration of the executives and administrative staff in Brazil. Expenses in the quarter were lower than the same period last year as $78,300 of production costs were expensed in 2019 to general expenses as there were no sales in January and February 2019.

Distribution expenses

Distribution expenses were higher in Q1 2020 compared to the same quarter last year as the Company started to sell CIF (Cost Insurance and Freight) and exports sales volume increased by 124% (from 148 tonnes in Q1 2019 to 331 tonnes in Q1 2020), mainly to China.

Project Update [1]

• 25,000,000 tonnes per year (“tpy”) Feasibility Study for Mine Pit 2 was approved by the National Mining Agency in March 2020.
• 2,500,000 tpy Preliminary and Installation Environmental License Application for Mine Pit 2 was filed in March 2020.
• 2,500,000 tpy Mining Concession Application for Mine Pit 3 was filed in March 2020.
• The Company is fully permitted to produce a total 199,800 tpy and has applications pending for an additional 2,733,000 tpy.

COVID-19 Impacts

The Brazilian Ministry of Agriculture, Livestock and Supply declared Fertilizer Production as an essential activity in the food and beverage production chain, essential to guarantee the supply and food security of the Brazilian population.

Commodities prices such as coffee, corn and soybeans have risen in recent months, especially soybeans. In the accumulated result for the year, the national shipments of the oilseed already reach 35,76 million tonnes from January to April, registering another record number, as has been all the data for the commodity for 2020, according to Secex (Brazilian Secretariat of Foreign Trade).

The Company has been operating under its own COVID-19 Action Plan, which is currently allowing it to move forward with its 2020 plans intact. The Company has and will continue to adapt to the day-to-day changes that the overall pandemic is demanding of the communities and operations.

Since beginning of March all administrative employees are working under home office regime. At the Plant, the Company continues to observe and increase all protocols wherever necessary, and it is ensuring that all government health and safety protections and the Company’s COVID-19 Action Plans are implemented across all its operations.

Verde is committed to sustainability while implementing increased health and safety initiatives with all stakeholders, including the protection of employees and their employment.

Conference Call Details

The Company will hold a conference call on Wednesday, May 27, 2020 at 11:30 am Eastern Time (4:30 pm Greenwich Time) to discuss these results and provide an update. Subscribe at the following link and receive the conference details by email.

The Company’s first quarter financial statements and related notes for the period ended 31 March, 2020 are available to the public on SEDAR at www.sedar.com and the Company’s website at www.investor.verde.ag/.

Investors Newsletter

Verde has a newsletter for investors, with monthly updates about the Company. The first edition can be accessed at .

Click at the following link to become a subscriber: http://cloud.marketing.verde.ag/InvestorsSubscription

About Verde AgriTech

Verde AgriTech promotes sustainable and profitable agriculture through the development of its Cerrado Verde Project. Cerrado Verde, located in the heart of Brazil’s largest agricultural market, is the source of a potassium-rich deposit from which the Company intends to produce solutions for crop nutrition, crop protection, soil improvement and increased sustainability.

For additional information please contact:

Cristiano Veloso, President & Chief Executive Officer
Tel: +55 (31) 3245 0205; Email: cv@verde.aq

www.investor.verde.ag|www.supergreensand.com | www.verde.ag

Cautionary Language and Forward Looking Statements
All Mineral Reserve and Mineral Resources estimates reported by the Company were estimated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards (May 10, 2014). These standards differ significantly from the requirements of the U.S. Securities and Exchange Commission. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.

This document contains “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and these statements, referred to herein as “forward-looking statements” are made as of the date of this document. Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future events and include, but are not limited to, statements with respect to:

</table class=”responsive”> Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “envisages”, “assumes”, “intends”, “strategy”, “goals”, “objectives” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.All forward-looking statements are based on Verde’s or its consultants’ current beliefs as well as various assumptions made by them and information currently available to them. The most significant assumptions are set forth above, but generally these assumptions include:Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Many forward-looking statements are made assuming the correctness of other forward looking statements, such as statements of net present value and internal rates of return, which are based on most of the other forward-looking statements and assumptions herein. The cost information is also prepared using current values, but the time for incurring the costs will be in the future and it is assumed costs will remain stable over the relevant period.By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur as forecast, but specifically include, without limitation: risks relating to variations in the mineral content within the material identified as Mineral Resources and Mineral Reserves from that predicted; variations in rates of recovery and extraction; the geotechnical characteristics of the rock mined or through which infrastructure is built differing from that predicted, the quantity of water that will need to be diverted or treated during mining operations being different from what is expected to be encountered during mining operations or post closure, or the rate of flow of the water being different; developments in world metals markets; risks relating to fluctuations in the Brazilian Real relative to the Canadian dollar; increases in the estimated capital and operating costs or unanticipated costs; difficulties attracting the necessary work force; increases in financing costs or adverse changes to the terms of available financing, if any; tax rates or royalties being greater than assumed; changes in development or mining plans due to changes in logistical, technical or other factors; changes in project parameters as plans continue to be refined; risks relating to receipt of regulatory approvals; delays in stakeholder negotiations; changes in regulations applying to the development, operation, and closure of mining operations from what currently exists; the effects of competition in the markets in which Verde operates; operational and infrastructure risks and the additional risks described in Verde’s Annual Information Form filed with SEDAR in Canada (available at www.sedar.com ) for the year ended December 31, 2019. Verde cautions that the foregoing list of factors that may affect future results is not exhaustive.When relying on our forward-looking statements to make decisions with respect to Verde, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Verde does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by Verde or on our behalf, except as required by law.1 See Glossary of Technical Terms on page 3 of Q1 2020 Management’s Discussion and Analysis.

Verde Secures 48% Gross Margin and Grows 344% in 2019

BELO HORIZONTE, Brazil, March 31, 2020 (GLOBE NEWSWIRE) — Verde AgriTech Plc (TSX: “NPK”) (OTCQB: “AMHPF”) (“Verde” or the “Company”) announces financial results for the fourth quarter (“Q4 2019”) and year (“FY 2019”) ended December 31, 2019. All figures are in Canadian dollars, unless otherwise expressed.

The Company is pleased to announce that its revenues in 2019 were 13.8% greater than its most recently announced target for that year.

The Company’s revenues in 2019 were $6.029 million, against a previously stated target of $5.3 million. The gross margin was 48% and the operating profit before non-cash events was $0.025 million. In 2018 the Company’s revenues were $1.358 million, the gross margin was 21% and the operating loss before non-cash events was $1.444 million.

“As we announced in September 2019, our sales target for 2020 is set at R$32 million (C$10.6 million). If successful, we will deliver a 76% growth year-on-year and expect to generate our maiden net profit. We are working hard to deliver this result and are confident that every lesson learned in 2019 is being deployed to achieve another year of significant growth”, said Cristiano Veloso, Verde Agritech’s Founder, President and CEO.

During FY 2019 the Company sold 119,809 tonnes of its multinutrient potassium fertilizer, marketed and sold in Brazil under the K Forte® brand and internationally as Super Greensand® (“the Product”). In 2018, the Company sold 29,648 tonnes of the Product.

Q4 2019 Financial Highlights

• Revenue increased 115% with a total of $1,491,000, compared to $692,000 in Q4 2018.
• Gross profit was $531,000 and the gross margin was 36%, compared to $26,000 gross profit and 4% gross margin in Q4 2018.
• Production increased 65% at 33,811 tonnes, compared to 20,549 tonnes in Q4 2018.
• The Company sold 32,221 tonnes of Product, compared to 20,641 in 2018.
• Revenue per tonne was $47 and production costs were $30, compared to revenue per tonne of $33 and production costs of $32 in Q4 2018.
• The Company recorded an operating profit before share-based payments, depreciation and amortisation of $38,000 and net profit of $79,000 after taxes.

FY 2019 Financial Highlights

• Revenue increased 344% with a total of $6,029,000, compared to $1,358,000 in 2018.
• Gross profit was $2,864,000 and the gross margin was 48%, compared to $291,000 gross profit and 21% gross margin in 2018.
• Production increased 310% at 122,035 tonnes, compared to 29,764 tonnes in 2018.
• The Company sold 119,809 tonnes of Product, compared to 29,648 in 2018.
• Revenue per tonne was $50 and production costs were $26, compared to revenue per tonne of $45 and production costs of $36 in 2018.
• The Company recorded an operating profit before share-based payments, depreciation and amortisation of $25,000 and net loss of $1,107,000 after taxes.

In total, the Company is currently fully permitted to produce 199,800 tonnes per annum and has applications pending for an additional 283,000 tonnes per annum.

Verde’s operating results for the Q4 2019 and FY 2019 are summarized as follows:

Selected Annual Financial Information

* – Included in administrative expenses in Financial statements.

Conference Call Details

The Company will hold a conference call on Wednesday April 8, 2020 at 11:30 am Eastern time (8:30 am Pacific time) to discuss these results and provide an update. Subscribe at the following link and receive the conference details by email.

The Company’s audited annual consolidated annual financial statements and related notes for the year ended December 31, 2019 will be available to the public on SEDAR at www.sedar.com and will also be posted on the Company’s website at https://investor.verde.ag/ on March 31, 2020.

About Verde AgriTech

Verde AgriTech promotes sustainable and profitable agriculture through the development of its Cerrado Verde Project. Cerrado Verde, located in the heart of Brazil’s largest agricultural market, is the source of a potassium-rich deposit from which the Company intends to produce solutions for crop nutrition, crop protection, soil improvement and increased sustainability.

For additional information please contact:

Cristiano Veloso, President & Chief Executive Officer
Tel: +55 (31) 3245 0205; Email: cv@verdeagritech.com

www.investor.verde.ag|www.supergreensand.com | www.verde.ag

Cautionary Language and Forward Looking Statements

All Mineral Reserve and Mineral Resources estimates reported by the Company were estimated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards (May 10, 2014). These standards differ significantly from the requirements of the U.S. Securities and Exchange Commission. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.

This document contains “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and these statements, referred to herein as “forward-looking statements” are made as of the date of this document. Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future events and include, but are not limited to, statements with respect to:

1. the estimated amount and grade of Mineral Resources and Mineral Reserves;
2. the PFS representing a viable development option for the Project;
3. estimates of the capital costs of constructing mine facilities and bringing a mine into production, of sustaining capital and the duration of financing payback periods;
4. the estimated amount of future production, both produced and sold; and,
5. estimates of operating costs and total costs, net cash flow, net present value and economic returns from an operating mine.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “envisages”, “assumes”, “intends”, “strategy”, “goals”, “objectives” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.

All forward-looking statements are based on Verde’s or its consultants’ current beliefs as well as various assumptions made by them and information currently available to them. The most significant assumptions are set forth above, but generally these assumptions include:

1. the presence of and continuity of resources and reserves at the Project at estimated grades;
2. the geotechnical and metallurgical characteristics of rock conforming to sampled results; including the quantities of water and the quality of the water that must be diverted or treated during mining operations;
3. the capacities and durability of various machinery and equipment;
4. the availability of personnel, machinery and equipment at estimated prices and within the estimated delivery times;
5. currency exchange rates;
6. uper Greensand® sales prices, market size and exchange rate assumed;
7. appropriate discount rates applied to the cash flows in the economic analysis;
8. tax rates and royalty rates applicable to the proposed mining operation;
9. the availability of acceptable financing under assumed structure and costs;
10. anticipated mining losses and dilution;
11. reasonable contingency requirements;
12. success in realizing proposed operations;
13. receipt of permits and other regulatory approvals on acceptable terms; and
14. the fulfilment of environmental assessment commitments and arrangements with local communities.

Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Many forward-looking statements are made assuming the correctness of other forward looking statements, such as statements of net present value and internal rates of return, which are based on most of the other forward-looking statements and assumptions herein. The cost information is also prepared using current values, but the time for incurring the costs will be in the future and it is assumed costs will remain stable over the relevant period.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur as forecast, but specifically include, without limitation: risks relating to variations in the mineral content within the material identified as Mineral Resources and Mineral Reserves from that predicted; variations in rates of recovery and extraction; the geotechnical characteristics of the rock mined or through which infrastructure is built differing from that predicted, the quantity of water that will need to be diverted or treated during mining operations being different from what is expected to be encountered during mining operations or post closure, or the rate of flow of the water being different; developments in world metals markets; risks relating to fluctuations in the Brazilian Real relative to the Canadian dollar; increases in the estimated capital and operating costs or unanticipated costs; difficulties attracting the necessary work force; increases in financing costs or adverse changes to the terms of available financing, if any; tax rates or royalties being greater than assumed; changes in development or mining plans due to changes in logistical, technical or other factors; changes in project parameters as plans continue to be refined; risks relating to receipt of regulatory approvals; delays in stakeholder negotiations; changes in regulations applying to the development, operation, and closure of mining operations from what currently exists; the effects of competition in the markets in which Verde operates; operational and infrastructure risks and the additional risks described in Verde’s Annual Information Form filed with SEDAR in Canada (available at www.sedar.com ) for the year ended December 31, 2016. Verde cautions that the foregoing list of factors that may affect future results is not exhaustive.

When relying on our forward-looking statements to make decisions with respect to Verde, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Verde does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by Verde or on our behalf, except as required by law.